For now, McCann wins Calif. Lottery
Interpublic Group of Cos.' Foote, Cone & Belding Worldwide, San Francisco, is expected to protest last week's award of the California Lottery Commission's five-year, $125 million contract to sibling McCann-Erickson Worldwide, Los Angeles. The arduous three-year-long review had FCB named the last winner of the contract, but a protest by a previous winner, Omnicom Group's DDB Worldwide, Los Angeles (named in early 2002), resulted in a rebid of media costs. FCB was disqualified because it faxed, and did not deliver hard copies, of required documents. DDB, meanwhile, said it, too, was going to protest. Grey Global Group's Grey Worldwide, Los Angeles, is the five-year incumbent on the business, and lodged the first protest in the process against DDB. AdAge.com QwikFIND aao51n
Cointreau aims to appeal to men
Remy Amerique's Cointreau ramps up its "Be Cointreauversial" campaign with an estimated $8 million print push breaking in April titles. The latest campaign replaces women in orange peel dresses with naked women in orange peels. The target remains 25- to 35-year-old women, but men are now a secondary target. Ads will run in Time Inc.'s In Style and Entertainment Weekly, Hearst Corp.'s Cosmopolitan and Conde Nast Publications' Lucky. Outdoor will appear in Boston, Chicago and Los Angeles. This is the first campaign from KraftWorks, New York.
IPG refinances debt via notes
Interpublic will raise $700 million to $800 million in convertible notes to refinance debt and appease investors who fear it faces a cash crunch. The proceeds from the convertibles are pegged to buy back a series of convertible notes, which could have been put to the company for redemption in December. Interpublic offered to buy back the notes until April 4 in a tender offer worth an estimated $582.5 million. The put and the expiration of a $500 million credit line in May were among key reasons Interpublic's debt was downgraded by several ratings agencies in recent months. Interpublic's stock swung wildly after the announcement. Shares went from a low of $7.81 to a high of $8.14 on March 11, as shares traded at record volume, 15 times higher than average.
TBS shuffles top executives
With the arrival of new Chairman-CEO Philip Kent, Turner Broadcasting System reorganized. AOL Time Warner's TBS will have three operating entities: the CNN News Group; Turner Entertainment Group, which includes networks TNT, TBS Superstation and Turner Classic Movies and sports properties; and the unit to hold the Cartoon Network. Mark Lazarus becomes president-Turner Entertainment Group, with responsibility for entertainment ad sales and programming as well as Turner Sports divisions, from president-Turner Entertainment sales and marketing and Turner Sports. Mr. Lazarus also assumes some duties of Brad Siegal, former president, Turner Entertainment Networks, who is leaving the company. Ad sales for the cartoon business will be combined. TBS is expected to name a CEO with oversight of network and sales operations in the coming weeks. AdAge.com QwikFIND aao51k
Gateway assigned it creative account to Publicis Groupe's Leo Burnett USA, Chicago, after a three-week stealth review. Burnett bested Omnicom Group's GSD&M, Austin, Texas. AdAge.com QwikFIND aao51d. ... Battery sales rose for the first time in more than a year in February, up 11% in sales volume, according to Banc of America Securities. The Department of Homeland Security advised consumers to add a supply of batteries to terrorism-preparedness kits. But batteries didn't get quite the bump that duct-tape marketers, such as Henkel's Duck brand, saw. German consumer-products marketer Henkel reported Duck retail sales were two to three times heavier than normal. AdAge.com QwikFIND aao51r. ... Henkel bought a 6.8% stake in German hair-care and fragrance products marketer Wella as rumors swirl that Procter & Gamble Co. also is preparing a bid. Henkel did not comment on whether it plans to make a rival bid to P&G's. Henkel, according to published reports, made a $5.7 billion bid for Wella last year that was rejected. Spokespeople for P&G and Wella declined to comment. AdAge.com QwikFIND aao51f. ...The Center for Science in the Public Interest urged CBS Sports President Sean McManus to pull alcohol ads from NCAA tournament games if the network is forced by an Iraq war to move the games to either Nickelodeon or TV Land. The group argued that those cable networks regularly show kids' programming and are not an appropriate place for liquor ads. CBS has not announced any plans for moving games in the event of a war and a spokesman declined to comment on the letter.