Prospectus
THE INTERPUBLIC GROUP OF COMPANIES, INC.
Common Stock
1,335,125 Shares
-------------
This is a public offering of shares of common stock, par value $.10 per
share, of the Interpublic Group of Companies, Inc. ("Interpublic") by the
selling stockholders named in this Prospectus. The selling stockholders are
offering 1,335,125 shares of common stock of Interpublic. Interpublic will not
receive any of the proceeds from the offering.
The common stock is listed on the New York Stock Exchange under the
symbol "IPG." On April 14, 2000, the last reported sale price of the common
stock on the NYSE was $40 15/16 per share.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved these securities or determined if this
Prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.
Prospectus dated April 17, 2000
<PAGE>
TABLE OF CONTENTS
Available Information.......................................................1
Incorporation Of Certain Documents By Reference.............................2
The Company.................................................................2
Use Of Proceeds.............................................................2
Common Stock Price Range And Dividends......................................2
Selling Stockholders........................................................4
Plan Of Distribution........................................................6
Legal Matters...............................................................7
Experts.....................................................................7
---------------
Unless the context otherwise requires, "the company," "we," "us,"
"ours" or "Interpublic" means the Interpublic Group of Companies, Inc., a
Delaware corporation.
AVAILABLE INFORMATION
We have filed with the Securities and Exchange Commission (the "SEC" or
"Commission") a registration statement on Form S-3 (File No. 333-95359), under
the Securities Act of 1933, as amended (the "Securities Act") for the
registration of the common stock offered hereby. This prospectus constitutes a
part of that registration statement and does not contain all the information set
forth in that registration statement, certain parts of which have been omitted
as permitted by the rules and regulations of the SEC. For further information
regarding Interpublic and the common stock offered hereby, you should refer to
that registration statement.
In accordance with the Exchange Act, we file reports, proxy statements
and other information with the SEC. You may read and copy materials we have
filed with the SEC at the public reference facilities maintained by the SEC at
Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549, and at the
following regional offices of the SEC: Seven World Trade Center, Suite 1300, New
York, New York 10048 and Citicorp Center, 500 West Madison Street, Suite 1400,
Chicago, Illinois 60661-2511. Please call the SEC at 1-800-SEC-0330 for further
information on the public reference rooms. Copies of such materials can be
obtained by mail from the Public Reference Section of the SEC, at Judiciary
Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549, at prescribed rates. The
SEC maintains a World Wide Web site on the Internet at http://www.sec.gov that
contains reports, proxy statements and other information regarding registrants
that file electronically with the SEC. In addition, you can inspect reports,
proxy statements and other information concerning the Company at the offices of
the New York Stock Exchange, Inc., 20 Broad Street, New York, New York 10005.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
We incorporate by reference into this prospectus the documents listed
below and any future filings we make with the SEC under Sections 13(a), 13(c),
14 or 15(d) of the Securities Exchange Act of 1934, as amended (File No.
1-06686), including any filings after the date of this prospectus, until we have
sold all of the securities to which this prospectus relates or the offering is
otherwise terminated. We incorporate by reference into this prospectus all
filings filed pursuant to the Securities Exchange Act of 1934, as amended, after
the date of the initial Registration Statement and prior to effectiveness of the
Registration Statement:
- Our Annual Report on Form 10-K for the year ended December 31, 1999;
- Our Current Reports on Form 8-K dated January 24, 2000, February 25,
2000 and April 13, 2000; and
- The description of the common stock contained in our registration
statements on Form 8-A, dated June 29, 1971 and October 8, 1975,
respectively, as amended on Forms 8, dated February 24, 1983, June
12, 1984, September 13, 1984, June 25, 1985, July 15, 1987 and May
19, 1988 and as further amended by any subsequent amendment or
report filed for the purpose of updating that description.
The information incorporated by reference is an important part of this
prospectus. Any statement in a document incorporated by reference into this
prospectus will be deemed to be modified or superseded for purposes of this
prospectus to the extent a statement contained in (1) this prospectus or (2) any
other subsequently filed document that is incorporated by reference into this
prospectus modifies or supersedes such statement.
You may request a copy at no cost of any or all of the documents
referred to above other than those exhibits to such documents which are not
specifically incorporated by reference therein. Written or telephone requests
should be directed to Thomas J. Volpe, Senior Vice President-Financial
Operations, The Interpublic Group of Companies, Inc., 1271 Avenue of the
Americas, New York, New York 10020; telephone number (212) 399-8000.
THE COMPANY
Our principal executive offices are located at 1271 Avenue of the
Americas, New York, New York 10020 (telephone: (212) 399-8000).
USE OF PROCEEDS
We will not receive any of the proceeds from the sale of the common
stock offered hereby. See "Selling Stockholders."
COMMON STOCK PRICE RANGE AND DIVIDENDS
Interpublic's common stock is listed on the New York Stock Exchange
under the symbol "IPG." The table below shows the range of reported last sale
prices on the New York Stock Exchange Composite Tape for Interpublic's common
stock for the periods indicated and the dividends declared per share on the
common stock for such periods. On May 17, 1999, Interpublic announced:
- a two-for-one stock split payable in the form of a stock dividend on
July 15, 1999 to stockholders of record on June 29, 1999; and
- a $.085 per share (post-split) cash dividend for the second quarter
of 1999 payable on June 15, 1999 to stockholders of record on May
27, 1999.
Sales prices and per share amounts have been adjusted to reflect this
two-for-one stock split.
Cash
Common Dividends
Stock Price Declared
High Low Per Share
--------- --------- -----------
Year ended December 31, 1997
First Quarter..................... $18 5/16 $16 1/8 $.065
Second Quarter.................... 20 11/16 17 1/2 .065
Third Quarter..................... 25 11/16 203/4 .065
Fourth Quarter.................... 26 1/4 22 5/8 .065
Year ended December 31, 1998
First Quarter..................... $31 5/16 $23 27/32 $.065
Second Quarter.................... 32 1/4 27 21/32 .075
Third Quarter..................... 32 7/16 26 3/32 .075
Fourth Quarter.................... 39 7/8 23 1/2 .075
Year ended December 31, 1999
First Quarter..................... $40 1/4 $36 1/4 $.075
Second Quarter.................... 43 5/16 37 1/4 .085
Third Quarter..................... 44 5/16 39 .085
Fourth Quarter.................... 58 39 1/4 .085
Year ended December 31, 2000
First Quarter..................... $55 9/16 $37 $.085
Second Quarter (through
April 13, 2000)................. $48 1/4 $43 9/16 --
On April 14, 2000, the last sale price of our common stock, as reported
on the New York Stock Exchange Composite Tape, was $40 15/16 per share.
We are not aware of any restrictions on our present or future ability
to pay dividends. However, in connection with certain borrowing facilities
entered into by Interpublic and its subsidiaries, we are subject to certain
restrictions on the ratio of cash flow to consolidated borrowings, the ratio of
consolidated borrowings to net worth and the minimum amount of net worth. Any
future dividend payments will be made at the discretion of Interpublic's board
of directors.
SELLING STOCKHOLDERS
The following table sets forth certain information with respect to the
selling stockholders, including:
- the name of each selling stockholder;
- the number of shares of common stock beneficially owned by such
selling stockholder prior to the offering;
- the maximum number of shares of such common stock to be offered by
such selling stockholder hereby; and
- the number of shares of common stock to be beneficially owned by
such selling stockholder assuming all of the shares of such selling
stockholder covered by this prospectus are distributed in the
offering.
No selling stockholder beneficially owns one percent (1%) or more of
Interpublic's issued and outstanding common stock.
Because the selling stockholders or their transferees may offer all, a
portion or none of the common stock offered pursuant to this prospectus, no
estimate can be given as to the amount of common stock that will be held by the
selling stockholders upon termination of the offering. See "Plan of
Distribution."
<TABLE>
Number of Shares
to be
Beneficially
Owned after Number of
Offering, Shares Maximum
Assuming All Beneficially Number of
Offered are Owned Prior to Shares to be
Name of Selling Stockholder (1) Distributed the Offering Offered
- ------------------------------------------------------------ ---------------- -------------- ------------
<S> <C> <C> <C>
Robert G. Beckel.............................................. 2,402 1,632 770
Lynda Bernard................................................. 1,210 769 441
Michael J.P. Boland........................................... 50,336 34,196 16,140
Diana Bork, as trustee under Declaration of Trust dated
February 22, 1996.......................................... 6,380 4,335 2,045
Robert H. Bork, Jr., as trustee under Declaration of Trust
dated February 22, 1996.................................... 6,380 4,335 2,045
John A. Brennan, Jr........................................... 15,301 9,607 5,694
James P. Fabiani.............................................. 64,729 40,663 24,066
Lester G. Fant................................................ 27,048 17,752 9,296
Barbara G. Fant............................................... 19,816 13,006 6,810
Keith Frederick............................................... 4,954 3,366 1,588
Gregory M. Gill............................................... 2,674 1,671 1,003
Henry Giugni.................................................. 3,755 2,347 1,408
Carl Franklin Godfrey, Jr..................................... 6,391 4,015 2,376
Lawrence C. Grossman.......................................... 1,132 704 428
Terry Haines.................................................. 3,690 2,319 1,371
Michelle R. Hartz............................................. 3,200 2,011 1,189
John T. Hendrick.............................................. 10,355 6,505 3,850
Paul H. Jensen................................................ 2,110 1,313 797
Jeffrey L. Lawrence........................................... 2,373 1,476 897
Dale W. Leibach............................................... 3,745 2,329 1,416
Judy Leon..................................................... 1,279 809 470
Peter T. Madigan.............................................. 50,336 34,196 16,140
Arthur D. Mason............................................... 808 512 296
Daniel P. O'Brien............................................. 1,187 754 433
Jerome W. Pickholz............................................ 15,322 10,410 4,912
Barry D. Rhoads............................................... 1,048 659 389
Martin A. Russo............................................... 18,806 11,814 6,992
Greg Schneiders............................................... 4,954 3,366 1,588
Barbara Sutton................................................ 1,359 855 504
Dan C. Tate................................................... 2,582 1,606 976
Dan Tate, Jr.................................................. 3,658 2,286 1,372
Sheila B. Tate................................................ 6,366 3,999 2,367
Joseph L. Powell, as escrow agent on behalf of L. Gaye
Torrance under the escrow agreement dated October 29, 1999. 2,601 1,653 948
Julie Tufts................................................... 1,242 791 451
Cathy Tweedy.................................................. 15,322 10,410 4,912
Vincent M. Versage............................................ 4,490 2,821 1,669
Gerald F. Warburg............................................. 6,100 3,833 2,267
John Young.................................................... 1,681 1,040 641
The Cassidy Companies ESOP, HSBC Bank, Trustee; Cassidy and
Associates, Inc. Employee Stock Ownership Trust, HSBC Trust
Bank USA, Trustee.......................................... 323,330 219,649 103,681
T. Mac Barnhardt.............................................. 7,906 3,953 3,953
William C. Breed, IV.......................................... 7,906 3,953 3,953
Marvin M. Giles, III.......................................... 31,620 15,810 15,810
C. Vernon Spratley, III....................................... 31,620 15,810 15,810
James X. Mullen............................................... 99,720 49,860 49,860
Mullen Advertising, Inc. Employee Retirement and Savings Plan
Trust Fund, James X. Mullen, Trustee 162,804 81,402 81,402
Paul Silverman................................................ 30,664 15,332 15,332
Jeanne Masucci................................................ 1,604 802 802
Steve Haesche................................................. 936 468 468
Joseph Grimaldi............................................... 13,432 6,716 6,716
Edward Boches................................................. 9,292 4,646 4,646
Michael E. Kassan and Ronnie K. Kassan, Trustees of The Kassan
Family Trust dated April 27, 1990.......................... 44,093 44,093 0
Ryan R. Magnussen............................................. 69,084 17,271 51,813
Patrick G. Bradley............................................ 69,084 17,271 51,813
Steven J. Voci................................................ 9,019 2,255 6,764
Matthew C. Azar............................................... 666 167 499
Marco Chiriguayo.............................................. 1,332 333 999
Jill M. Giardino.............................................. 56 14 42
Robert J. Huey................................................ 69 17 52
Edward A. Lewis............................................... 41 10 31
Andrew N. Lientz.............................................. 1,388 347 1,041
Terri A. Mabry................................................ 888 222 666
Brian J. Malone............................................... 41 10 31
Matthew C. Minkin............................................. 2,220 555 1,665
Brian M. Platz................................................ 14 4 10
Milind R. Raval............................................... 278 70 208
Steven L. Sklar............................................... 556 139 417
Andrew L. Tress............................................... 666 167 499
Fan Tso....................................................... 3,469 867 2,602
Frank Butterworth............................................. 79,093 79,093 0
David Cyril Laidler........................................... 79,093 79,093 0
Brian David Rees.............................................. 79,093 79,093 0
Mark Bruce Dalgleish.......................................... 165,412 165,412 0
James Wilson.................................................. 7,351 7,351 0
Laurie Greenall............................................... 6,000 6,000 0
William and Suzane Gordon..................................... 94,287 47,143 47,144
Tom George (2)................................................ 18,088 18,088 0
Langtry Trust Company, as trustee for The Capital Trust, The
CSI International Share Scheme Trust and The Michael Watt
Voluntary Settlement Trust................................. 374,630 105,474 269,156
Total......................................................... 2,203,967 1,335,125 868,842
(1) Each selling stockholder is a former shareholder or option holder of a
company acquired by Interpublic, or the assignee of such former
shareholder or option holder. A number of the selling stockholders are
or have been employees or officers of affiliates of Interpublic.
(2) These shares will be issued upon the exercise of a like number of options.
</TABLE>
PLAN OF DISTRIBUTION
Interpublic has not been advised by the selling stockholders as to any
plan of distribution. Distribution of the common stock by the selling
stockholders, or by pledgees, donees (including charitable organizations),
transferees or other successors in interest, may be effected from time to time
in one or more transactions (which may involve block transactions):
- on the NYSE in transactions that may include special offerings and
exchange distributions pursuant to and in accordance with the rules
of such exchange,
- in the over-the-counter market, or
- in transactions otherwise than on such exchange or in the
over-the-counter market, or in a combination of any such
transactions.
Such transactions may be effected by the selling stockholders at market
prices prevailing at the time of sale, at prices related to such prevailing
market prices, at negotiated prices or at fixed prices. The selling stockholders
may effect such transactions by selling the common stock to or through
broker-dealers, and such broker-dealers may receive compensation in the form of
discounts or commissions from the selling stockholders and may receive
commissions from the purchasers of the common stock for whom they may act as
agent. The selling stockholders may agree to indemnify any broker-dealer or
agent that participates in transactions involving sales of the shares against
certain liabilities, including liabilities arising under the Securities Act.
We have agreed to bear certain expenses (excluding any underwriting
fees, expenses, discounts or other costs payable to any underwriter, broker or
dealer) in connection with the registration and sale of the common stock being
offered by the selling stockholders, estimated to be approximately $44,000. We
have agreed to indemnify the selling stockholders against certain liabilities,
including certain liabilities under the Securities Act.
The selling stockholders and any broker-dealers or agents that
participate with the selling stockholders in the distribution of the common
stock may be deemed to be "underwriters" within the meaning of the Securities
Act, and any commissions received by them and any profit on the resale of any
common stock purchased by them may be deemed to be underwriting commissions or
discounts under the Securities Act.
LEGAL MATTERS
The validity of the common stock being offered hereby will be passed
upon for Interpublic by Nicholas J. Camera, Esq., Senior Vice President, General
Counsel and Secretary of Interpublic.
EXPERTS
The consolidated financial statements of Interpublic and its
subsidiaries incorporated in this prospectus by reference to Interpublic's
Annual Report on Form 10-K for the year ended December 31, 1999, except as they
relate to Hill, Holliday, Connors, Cosmopulos, Inc. as of and for the year ended
December 31, 1997 and to International Public Relations plc, as of and for the
year ended December 31, 1997, have been so incorporated in reliance on the
report of PricewaterhouseCoopers LLP, independent accountants, given on the
authority of said firm as experts in auditing and accounting.
The audited financial statements of Hill, Holliday, Connors,
Cosmopulos, Inc. as of and for the year ended December 31, 1997 and of
International Public Relations plc as of and for the year ended December 31,
1997, each a wholly-owned subsidiary of Interpublic, not presented separately in
Interpublic's Annual Report on Form 10-K for the year ended December 31, 1999,
have been audited by Ernst & Young LLP and Ernst & Young, respectively,
independent accountants. Such financial statements, to the extent they have been
included in the financial statements of Interpublic, have been so incorporated
in reliance on the report of such independent accountants given on the authority
of said firms as experts in auditing and accounting.
