Gentile splits with syndicator
IBC Radio Network said Friday it had ended its business relationship with Lou Gentile and is no longer distributing "The Lou Gentile Show." Meanwhile, IBC said it would not be distributing any programming at all until Wednesday Morning, October 12th. IBC primarily broadcasts stock market programming where companies pay to have their top executives interviewed about their business. IBC is owned by International Broadcasting Corporation, a penny stock company whose stock trades on the OTC Bulletin Board as "IBCS."
Ex-Adelphia execs face tax charges
Having already been convicted of fraud for looting Adelphia Communications, John and Timothy Rigas now face new charges - - tax fraud. They and other Rigas family members are accused of failing to pay more than 300 million in income taxes due on nearly two billion diverted from Adelphia.
Shuman exits News Corp. board
Long-time News Corporation director Stanley S. Shuman has resigned from the board, at least as far as voting is concerned. Shuman, who is managing director of Allen & Co., will become Director-Emeritus, allowing him to sit in on board meetings and voice his opinion, but without having a vote. ""In order to permit News Corporation to come within applicable governance provisions by having its Board comprised of a majority of independent directors, I have decided to resign as a Director. I have been immensely privileged to serve on News Corp.'s Board for these many years and look forward to continuing my association with the Company in my new position as Director-Emeritus," Shuman said in a company statement. He had been on the News Corp. board since 1982. His resignation reduces the board to 13 members, with a majority of them independent directors.
News Corp. sued over poison pill
A group of investors, mostly from Australia, sued News Corporation in Delaware Chancery Court on Friday, seeking to negate the poison pill provision that the company's board of directors extended in August. The shareholder lawsuit claims that News Corp. management acted fraudulently by extending the poison pill measure, after publicly stating that it would not be extended without a vote by shareholders. The company insists that the lawsuit is "frivolous." Meanwhile, though, Institutional Shareholder Services (ISS), which advises big investors on proxy votes, urged its clients to vote against the reelection of all four News Corp. board members on the ballot this month, including President and COO Peter Chernin, because of the poison pill extension. ISS called the poison pill extension "a breach of trust between the board and its shareholders.
RBR observation:
Maybe the FTC should get involved with a "false advertising" investigation. After all, News Corp. and every other company that's ever adopted a poison pill has fraudulently labeled it a "shareholder rights" provision. In fact, it is the opposite - - a provision to entrench management to the detriment of shareholders. So what is News Corp. management afraid of? It has not been able to come to terms with John Malone over Liberty Media's 18% stake in News Corp., second only to the 30% voting stake held by Rupert Murdoch and his family. Under the poison pill, News Corp. would issue additional stock to every shareholder except Liberty if Malone were to increase his stake without approval from the News Corp. board.
Office Depot narrows it to three
Office Depot has reportedly selected three finalists in its ongoing creative review. The three: Martin Agency Richmond; Kaplan Thaler Group New York and Leo Burnett Chicago. The account is estimated at 85 million.
Korea Broadcasting Advertising opens NYC office
Korea Broadcasting Advertising Corp. (KOBACO) announced a new branch office in New York City on 42nd Street and Madison Avenue. KOBACO, established in 1981 as the only media representation firm for radio and television stations, is a major player in the Korean ad market.
Joo Ryong (John) Lee, NY Branch President said, "South Korea is the third largest advertising market in Asia and the 10th largest advertising market in the world. It has huge potential for marketers interested in expanding their consumer reach in international markets."
For more info, call 212-880-2300 or see www.kobaco.co.kr/eng/index.asp.
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