American Bid For Ad. Agency

Press, Volume CIV, Issue 30899, 4 November 1965, Page 1

American Bid For Ad. Agency

(from Our Own Report rr

WELLINGTON. Nov. 3.

After refusing initially to approve a take-over bid from the biggest United States advertising agency for one of the larger agencies in New Zealand, the (xovernment is now understood mcrch to have “deferred" a final verdict.

The American firm is McCann-Erickson, a member of Interpublic. Inc, the largest advertising group in the world.

The local agency is Dobbs-Wiggins-Goldberg, Ltd., with offices in Auckland. Wellington and Christchurch and a reputed yearly turn-over of some £500,000 in advertising placed. The managing director, Mr F. G. Dobbs, today would not discuss the situation, but he confirmed that the bid was currently being reconsidered. His firm is believed to have had discussions with the Minister of Finance (Mr Lake) since the Government first indicated that, under the Overseas Take-overs Regulations,

1964. it would not approve the move.

Mr Lake, absent from Wellington today, told Parliament last week that of 49 take-over bids registered under the regulations. 47 had been approved. one had been approved subject to conditions and one had been rejected

The Registrar of Take-overs. Mt D. L. Wilks, would not comment today. In Australia, there are eight or nine international advertising agencies and the five or six biggest in the nation are substantially controlled from abroad. New Zealand, which has more than 30 advertising agencies, has only one with international connexions. Lin tas Pty. Ltd., a firm which services Unilever account around the world, but whir' also will take othc accounts.