Published on .

"If the money that families were counting on for a new car got blown away on Oct. 19, 1987, we are going to be hurt," said one automotive marketer. A worldwide stock market plunge began on Black Monday. The Oct. 19 drop of 508-points, then a record, also derailed foreign business plans, such as British agency acquisition strategies.

For instance, Saatchi & Saatchi's share price by Oct. 22 dropped 30% and may be too weak to raise money in capital markets or make acquisitions without diluting earmings, analysts said. Hit even harder than agency stocks were media stocks with Turner Broadcasting System, Dow Jones & Co. and Gannett Co. sustaining big declines. United Artists Communications and United Cable Television called off a merger, partly because their stocks collapsed.

"If the economy gets really bad," said one analyst," I'm sure we'll see a return

Most Popular
In this article: