Recommended Offer
Brands Hatch Leisure PLC
9 November 1999
RECOMMENDED OFFER
by
THE INTERPUBLIC GROUP OF COMPANIES, INC.
for
BRANDS HATCH LEISURE PLC
SUMMARY
The boards of Interpublic and Brands Hatch announce the
terms of a recommended share for share offer to be made by
Interpublic to acquire all of the issued and to be issued
share capital of Brands Hatch. Brands Hatch will become part
of Octagon, Interpublic's sports marketing and entertainment
division.
Based on the closing price of $39 1/8 per share of
Interpublic Common Stock on the New York Stock Exchange on 8
November 1999 (being the latest practicable date prior to
the release of this announcement) and using the Illustrative
Exchange Rate, the Offer:
- values each Brands Hatch Share at approximately 546p;
- represents a premium of approximately 36 per cent over
the average middle-market closing price of 402p per
Brands Hatch Share for the 30 dealing days prior to 22
October 1999, the date on which Brands Hatch announced
that it had received an approach that might lead to an
offer being made for the company;
- represents a premium of approximately 14 per cent over
the middle-market closing price of 478p per Brands Hatch
Share on 21 October 1999, the day immediately before the
start of the Offer Period;
- values the existing issued share capital of Brands Hatch
at approximately £120 million; and
- represents a multiple of 37.4 times Brands Hatch's basic
earnings per share for the year ended 31 December 1998.
Interpublic has received an irrevocable undertaking to
accept the Offer from Awak Limited, a company owned by the
J. G. Foulston Children's Settlement Trust, in respect of
6,519,015 Brands Hatch Shares, representing approximately
29.8 per cent of Brands Hatch's issued share capital.
Further details of this undertaking are set out in paragraph
4 of the attached announcement.
The board of Brands Hatch unanimously recommends acceptance
of the Offer.
Brands Hatch is a leading promoter of motorsport events, as
well as an operator of leisure venues, in the United
Kingdom. Interpublic is one of the largest advertising and
marketing communications groups in the world. Interpublic is
listed on the New York Stock Exchange and has a market
capitalisation of approximately $11.0 billion (£6.8
billion). Octagon is the sports marketing and entertainment
division of Interpublic, and is one of the leading sports
and event marketing and television distribution agencies in
the world.
Through its specialist motorsports division, Octagon
Motorsports, Octagon is a leading owner and manager of
international motorsports series, including the Superbike
World Championship. Interpublic believes that the
combination of Brands Hatch's proven promotional and track
management skills and Octagon's series ownership,
international network and financial resources will create a
powerful new force in motorsports.
It is intended that Brands Hatch will be merged with Octagon
Motorsports. Nicola Foulston, Chief Executive of Brands
Hatch, will join the management board of Octagon.
Interpublic believes that the combination of Octagon and
Brands Hatch will strengthen both companies and help expand
the sale of Brands Hatch's marketing services outside
the United Kingdom.
Frank Lowe, Chairman and Chief Executive Officer of Octagon,
and a director of Interpublic, said:
'Nicola Foulston and her team have grown and
developed the legendary Brands Hatch with great
success. In the two years since its inception,
Octagon has become a leading operator in the fast-
growing sports marketing and entertainment sector.
The success of Superbike has reinforced our belief
that motorsport is one of the most exciting and
fastest growing areas of sport. This move will bring
together a unique and powerful combination of series
ownership, event promotion and venue management. It
will also unite two sets of highly skilled and
talented management that will create a dynamic new
force in international motorsport.'
Commenting on the Offer, Nicola Foulston, Chief Executive of
Brands Hatch, said:
'We are delighted to have agreed terms with the board
of Interpublic and look forward to becoming part of
Octagon. Our vision has long been to be the leading
international event promoter and venue manager in world
motorsports. To achieve this we need to expand our
operations from our UK base around the world.
Interpublic and Octagon offer us a unique opportunity
to achieve this goal through their international
strength and network, the funding they can provide for
us to acquire international business and the
international motorsports rights they already control.
Brands Hatch has worked for some time with the
management of Octagon Motorsports on the UK development
of the Superbike World Championships. We enjoy working
with them, we respect their expertise and we share a
common corporate culture. We are very excited by the
future prospects of Interpublic and believe the merger
with Interpublic and Octagon will bring both immediate
and long-term benefits to our shareholders, our clients
and our employees.'
9 November 1999
ENQUIRIES
The Interpublic Group of Companies, Inc.
Philip Geier, Jr. (Chairman of the Board, President and
Chief Executive Officer)
Eugene Beard (Vice-Chairman, Finance and Operations)
Telephone Number: +1 212 399 8000
Website Address: www.interpublic.com
Octagon
Frank Lowe (Chairman of the Board and Chief Executive
Officer of Octagon and a director of Interpublic)
Telephone Number: 0171 881 8888 or +1 212 888 8847
Website Address: www.octagon.com
PricewaterhouseCoopers
Philip Kendall
Gerry Young
Telephone Number: 0171 583 5000
Brands Hatch Leisure PLC
Nicola Foulston (Chief Executive)
Robert Bain (Group Finance Director)
Telephone Number: 0171 466 5010
Website Address: www.brands-hatch.co.uk
Pannell Kerr Forster
Nick Whitaker
Hugh Mathew-Jones
Telephone Number: 0171 831 7393
This summary should be read in conjunction with the full
text of the following announcement and the definitions in
the following announcement shall have the same meanings in
the summary.
This announcement contains forward-looking statements
including with respect to the consummation of the Offer, the
integration of services and opportunities related to the
Offer. As such statements apply to future events, they are
subject to risks and uncertainties which may cause the
actual results to differ materially, including, without
limitation, the risk that the Offer will not be consummated,
integration risks related to the Offer and the risk that the
anticipated benefits of the Offer will not be realised.
This announcement has been approved by
PricewaterhouseCoopers as an investment advertisement solely
for the purposes of Section 57 of the UK Financial Services
Act 1986.
PricewaterhouseCoopers, which is authorised to carry on
investment business by The Institute of Chartered
Accountants in England and Wales, is acting for Interpublic
and no one else in connection with the Offer and will not be
responsible to anyone other than Interpublic for providing
the protections afforded to clients of
PricewaterhouseCoopers or for giving advice in relation to
the Offer.
Pannell Kerr Forster, which is authorised to carry on
investment business by The Institute of Chartered
Accountants in England and Wales, is acting for Brands Hatch
and no one else in connection with the Offer and will not be
responsible to anyone other than Brands Hatch for providing
the protections afforded to clients of Pannell Kerr Forster
or for giving advice in relation to the Offer.
This announcement does not constitute an offer or an
invitation to purchase any securities.
Copies of this announcement are not being, and must not be,
mailed or otherwise distributed or sent in or into the
United States, Canada, Australia or Japan and persons
receiving this announcement (including custodians, nominees
and trustees) must not distribute or send it into or from
the United States, Canada, Australia or Japan.
Not for release, publication or distribution in or into the
United States, Canada, Australia or Japan.
NOTES TO EDITORS
Interpublic is one of the largest advertising and marketing
communications groups in the world. The Interpublic Group
employs more than 34,000 people and conducts business in 120
countries worldwide.
Interpublic's primary holdings include two wholly-owned
global advertising agency networks, McCann-Erickson
WorldGroup and The Lowe Group, which includes Lowe Lintas &
Partners Worldwide, as well as four specialised
communication services units, Western Initiative Media
Worldwide, Draft Worldwide, International Public Relations,
Octagon and other related companies.
Octagon was formed in 1997 following the acquisition by
Interpublic of two leading global sports marketing
companies, Advantage International and API. It was launched
with the intention of creating an international group
involved in all aspects of global sports and entertainment
marketing. As part of Interpublic, Octagon has brought a
distinctive marketing perspective to the industry. Octagon
operates in the following areas: athlete representation,
consultancy, event management, property representation,
television rights sales and distribution, television
production and archive, rights ownership and licensing and
merchandising. Octagon ranks among the top three sports
marketing agencies in the world with over 800 employees in
17 countries around the world.
Brands Hatch is the largest single organiser and promoter of
motorsport events in the United Kingdom, owning and
operating four motorsport circuits at Brands Hatch, Oulton
Park, Snetterton and Cadwell Park. Over the past ten years
it has organised and promoted an average of over 150
motorsports events each year. Brands Hatch also operates a
successful motorsport leisure business, which offers a wide
range of activities including motor racing and rally
schools, corporate entertainment days, testing and track-
hire, supported by its own catering and merchandising
operation. Earlier this year Brands Hatch expanded its
leisure operations with the acquisition of the Rebel Group,
a karting group whose venues are branded Daytona.
RECOMMENDED OFFER
by
THE INTERPUBLIC GROUP OF COMPANIES, INC.
for
BRANDS HATCH LEISURE PLC
1. Introduction
The boards of Brands Hatch and Interpublic jointly announce
today a recommended offer to be made by Interpublic to
acquire the whole of the issued and to be issued share
capital of Brands Hatch. Brands Hatch will become part of
Octagon, Interpublic's sports marketing and entertainment
division.
2. The Offer
Interpublic offers to acquire all the issued and to be
issued Brands Hatch Shares on the following basis:
for every 100 Brands 22.67 shares of New
Hatch Shares Interpublic Common Stock
Based on the closing price of $39 1/8 per share of
Interpublic Common Stock on the New York Stock Exchange on 8
November 1999 (being the latest practicable date prior to
the release of this announcement) and using the Illustrative
Exchange Rate, the Offer:
- values each Brands Hatch Share at approximately 546p;
- represents a premium of approximately 36 per cent over
the average middle-market closing price of 402p per
Brands Hatch Share for the 30 dealing days prior to 22
October 1999, the date on which Brands Hatch announced
that it had received an approach that might lead to an
offer being made for the company;
- represents a premium of approximately 14 per cent over
the middle-market closing price of 478p per Brands Hatch
Share on 21 October 1999, the day immediately before the
start of the Offer Period;
- values the existing issued share capital of Brands Hatch
at approximately £120 million; and
- represents a multiple of 37.4 times Brands Hatch's basic
earnings per share for the year ended 31 December 1999.
Brands Hatch Shares will be acquired by Interpublic under
the Offer fully paid and free from all liens, equities,
charges, encumbrances and other interests of any nature and
together with all rights attaching to them from 9 November
1999, including the right to receive and retain all
dividends and other distributions declared, made or paid on
or after 9 November 1999.
The Offer extends to Brands Hatch Shares which are
unconditionally allotted or issued while the Offer remains
open for acceptance (or, subject to the City Code, until
such earlier date as Interpublic may decide) including any
Brands Hatch Shares unconditionally allotted or issued
pursuant to the exercise of Options under the Brands Hatch
Share Option Schemes or otherwise.
The financial effects of acceptance are set out in Appendix
I.
3. Dealing facility
The New Interpublic Common Stock will be traded on the New
York Stock Exchange but will not be listed or traded on the
London Stock Exchange. Since Brands Hatch Shareholders may
not be able to deal easily or economically in the US market,
a dealing facility has been established utilising the
services of Charles Schwab Europe Limited and Durlacher
Limited. This arrangement will enable Brands Hatch
Shareholders who wish to sell their New Interpublic Common
Stock to deal at a competitive rate of commission.
4. Irrevocable undertakings
An irrevocable undertaking to accept the Offer has been
received by Interpublic from Awak Limited, a company owned
by the J.G. Foulston Children's Settlement Trust, in respect
of 6,519,015 Brands Hatch Shares (representing approximately
29.8 per cent of Brands Hatch's entire issued share
capital). The J.G. Foulston Children's Settlement Trust is a
trust settled by the late John Foulston for the benefit of
his children.
Irrevocable undertakings to accept the Offer have been
received by Interpublic from Nicola Foulston and from Sir
Rodney Walker and Roger North, non-executive directors of
Brands Hatch, in respect of an aggregate of 54,789 Brands
Hatch Shares (representing approximately 0.25 per cent of
Brands Hatch's entire issued share capital).
Interpublic has also received an irrevocable undertaking
from Robert Bain, a director of Brands Hatch, that, if he
exercises any of his Options, he will accept the Offer in
respect of all Brands Hatch Shares issued to him on
exercise. Robert Bain has Options over 200,000 Brands Hatch
Shares.
All of these irrevocable undertakings will cease to be
binding if a third party makes a competing offer in cash in
excess of the value of the Offer.
5. Background to, and reasons for, the Offer
The boards of Interpublic and Brands Hatch believe that the
merger of Interpublic and Brands Hatch represents an
important opportunity for their respective businesses.
The board of Brands Hatch believes that:
- Brands Hatch Shareholders will achieve an uplift in
capital value and a significant improvement in liquidity
by exchanging their Brands Hatch Shares for New
Interpublic Common Stock;
- the merger with Interpublic and Octagon, Interpublic's
sports marketing and entertainment division, will
provide Brands Hatch with the financial and operational
resources to exploit strategic opportunities and expand
its venues and venue promotion activities without the
funding constraints to which it is currently subject;
- the merger with Interpublic and Octagon will allow
Brands Hatch to expand its motorsport event promotion
and leisure venue operation services using the
international network and series management expertise of
Octagon; and
- the Brands Hatch business, which is marketing-led, will
benefit from becoming part of one of the largest
advertising and marketing communications groups in the
world and Brands Hatch's position as a leading promoter
of motorsport events, as well as an operator of leisure
venues, in the United Kingdom will be enhanced,
improving its ability to serve global clients and
providing better career opportunities for staff.
The board of Interpublic believes that the merger with
Brands Hatch will:
- mark the continuation of Interpublic's successful growth
strategy to build incremental revenue streams through
diversification, as the combination of Brands Hatch and
Octagon will result in a multinational sports and event
group with more than 40 offices in 17 countries, making
it one of the largest multinational sports marketing and
entertainment organisations in the world;
- establish Octagon as a leading operator in the fast
growing motorsport event promotion and venue management
industry;
- provide Octagon with racing circuit and motorsports
venue management skills to add to its series ownership,
a powerful combination leading to strategic and revenue-
enhancing benefits; and
- complement Octagon's multinational business base and
provide additional proven management strength in sports
marketing and entertainment.
6. Information relating to Interpublic
Interpublic is one of the largest advertising and marketing
communications groups in the world. The Interpublic Group
employs more than 34,000 people and conducts business in 120
countries worldwide. Interpublic's primary holdings include
two wholly-owned global advertising agency networks, McCann
Erickson WorldGroup and The Lowe Group, which includes Lowe
Lintas & Partners Worldwide, as well as four specialised
communication services units, Western Initiative Media
Worldwide, Draft Worldwide, International Public Relations,
Octagon and other related companies.
The advertising agency business is the primary business of
Interpublic. This business is conducted throughout the world
through McCann-Erickson WorldGroup and The Lowe Group.
Interpublic also carries on a media-buying business through
its ownership of Western Initiative Media Worldwide and its
affiliates, a direct and promotional marketing business
through its ownership of Draft Worldwide, a global public
relations business through its ownership of International
Public Relations and a multinational sports and
entertainment marketing business through its ownership of
Octagon. Other activities conducted by Interpublic within
the area of 'marketing communications' include brand equity
and corporate identity services, graphic design and
interactive services, management consulting and market
research, sales meetings and events, sales promotion and
other related specialised marketing and communications
services.
Octagon was formed in 1997 following the acquisition by
Interpublic of two leading global sports marketing
companies, Advantage International and API. It was launched
with the intention of creating an international group
involved in all aspects of global sports and entertainment
marketing. Octagon operates in the following areas: athlete
representation, consultancy, event management, property
representation, television rights sales and distribution,
television production and archive, rights ownership and
licensing and merchandising. Octagon ranks among the top
three sports marketing agencies in the world with over 800
employees in 17 countries around the world.
Interpublic Common Stock is traded on the New York Stock
Exchange. Based on the closing price of $391/8 per share of
Interpublic Common Stock on 8 November 1999 (being the
latest practicable date prior to the release of this
announcement), Interpublic had a market value of
approximately $11.0 billion.
For the year ended 31 December 1998, Interpublic reported
net income of $309.9 million (1997: $200.4 million) on gross
income of $4.0 billion (1997: $3.5 billion), reported net
income per share of $1.14 (1997: $0.77) and paid dividends
of $0.29 per share (1997: $0.25). As at 31 December 1998,
Interpublic reported gross assets of $6.9 billion (1997:
$6.0 billion).
For the six months ended 30 June 1999, Interpublic reported
net income of $184.2 million (1998: $156.3 million) on gross
income of $2.1 billion (1998: $1.9 billion) and reported net
income per share of $0.67 (1998: $0.58). As at 30 June 1999,
Interpublic reported gross assets of $7.7 billion (1998:
$6.3 billion).
For the nine months ended 30 September 1999, Interpublic
reported net income of $243 million (1998: $203 million) on
gross income of $3.1 billion (1998: $2.8 billion) and
reported net income per share of $0.89 (1998: $0.75).
7. Information relating to Brands Hatch
Brands Hatch is the largest single organiser and promoter of
motorsport events in the United Kingdom, owning and
operating four motorsport circuits at Brands Hatch, Oulton
Park, Snetterton and Cadwell Park. Over the past ten years
it has organised and promoted an average of over 150
motorsports events each year. Brands Hatch also operates a
successful motorsport leisure business, which offers a wide
range of activities including motor racing and rally
schools, corporate entertainment days, testing and track-
hire, supported by its own catering and merchandising
operation. Earlier this year Brands Hatch expanded its
leisure operations with the acquisition of the Rebel Group,
a karting group whose venues are branded Daytona.
For the year ended 31 December 1998, Brands Hatch reported
operating profit of £5.06 million (1997: £4.01 million) on
turnover of £19.33 million (1997: £16.01 million), reported
earnings per share of 14.6p (1997: 11.1p) and paid dividends
of 4.0p per share (1997: 3.7p). As at 31 December 1998,
Brands Hatch reported net assets of £33.96 million (1997:
£18.18 million).
For the six months ended 30 June 1999, Brands Hatch reported
operating profit of £2.36 million (1998: £2.00 million) on
turnover of £10.41 million (1998: £8.32 million) and
reported earnings per share of 6.6p (1998: 5.5p). As at 30
June 1999, Brands Hatch reported net assets of £35.40
million (1998: £19.39 million).
8. Accounting treatment
Pooling of interests
It is a condition of the Offer that Interpublic receives a
letter from PricewaterhouseCoopers LLP, Interpublic's
auditors, dated as of the date on which the Offer becomes or
is declared unconditional in all respects (equivalent to the
consummation of the transaction under US law), confirming
that they concur with Interpublic management's conclusion
that the acquisition of Brands Hatch may be accounted for as
a pooling of interests under US GAAP. PricewaterhouseCoopers
LLP has confirmed to Interpublic that they are not currently
aware of any information which would contradict Interpublic
management's current conclusion that the acquisition of
Brands Hatch may be accounted for as a pooling of interests
under US GAAP.
Affiliate agreements
In connection with the intended treatment of the acquisition
of Brands Hatch by Interpublic as a pooling of interests for
accounting purposes, certain directors and shareholders of
Brands Hatch have agreed not to sell, transfer or otherwise
dispose of, or reduce their risk relative to, any New
Interpublic Common Stock or Brands Hatch Shares during the
period commencing 30 days before the consummation of the
transaction until the date that Interpublic notifies the
director or shareholder that it has published financial
results covering at least 30 days of combined operations of
Brands Hatch and Interpublic following the consummation of
the transaction. Assuming that the Offer becomes or is
declared wholly conditional on or before 1 December 1999, it
is expected that such notification will be given in February
2000 when Interpublic expects to publish its results for the
year ending 31 December 1999.
9. Compulsory acquisition and delisting
If all the Conditions are satisfied or (to the extent
permitted) waived and Interpublic has acquired, or agreed to
acquire, pursuant to the Offer or otherwise, at least 90 per
cent in nominal value of the Brands Hatch Shares to which
the Offer relates (as defined in the Acceptance Condition),
Interpublic intends to apply the Compulsory Acquisition
Procedures to acquire any outstanding Brands Hatch Shares on
the same terms as the Offer.
If the Brands Hatch Shares become subject to the Compulsory
Acquisition Procedures in this manner, Interpublic intends
(subject to applicable requirements of the London Stock
Exchange) that Brands Hatch should apply to the London Stock
Exchange for the cancellation of the listing of the Brands
Hatch Shares (if it has not already done so).
10. New Interpublic Common Stock
The New Interpublic Common Stock will rank pari passu in all
respects with the existing Interpublic Common Stock,
including the right to any dividends and other distributions
declared, paid or made after the date on which the Offer
becomes or is declared unconditional in all respects. For
the avoidance of doubt, Brands Hatch Shareholders will not
be entitled to Interpublic's quarterly dividend of 81/2
cents per share payable to Interpublic Stockholders of
record on 29 November 1999. The New Interpublic Common Stock
will be delivered in accordance with the terms of the Offer
without regard to any lien, right of set-off, counterclaim
or other analogous rights to which Interpublic may otherwise
be, or claim to be, entitled against Brands Hatch
Shareholders.
11. Board, management and employees
Interpublic has assured the board of Brands Hatch that the
existing employment rights of employees of Brands Hatch and
its subsidiaries, including pension rights, will be fully
safeguarded.
It is intended that Nicola Foulston, Chief Executive of
Brands Hatch, will join the management board of Octagon.
12. Brands Hatch Share Option Schemes
The Offer will extend to any Brands Hatch Shares which are
unconditionally allotted or issued while the Offer remains
open for acceptance (or, subject to the City Code, until
such earlier date as Interpublic may decide), including
Brands Hatch Shares unconditionally allotted or issued
pursuant to the exercise of Options under the Brands Hatch
Share Option Schemes. If the Offer becomes or is declared
unconditional in all respects, all outstanding Options will
become exercisable at that time. Optionholders may then
exercise their Options and either sell their Brands Hatch
Shares in the market (to the extent that a market in Brands
Hatch Shares exists at that time) or accept the Offer. A
letter explaining these alternatives will be sent to
Optionholders at that time.
13. Recommendation
The directors of Brands Hatch, who have been so advised by
Pannell Kerr Forster, consider the terms of the Offer to be
fair and reasonable. In providing advice to the directors of
Brands Hatch, Pannell Kerr Forster has taken into account
the commercial assessments of the directors of Brands Hatch.
Accordingly, the directors of Brands Hatch unanimously
recommend that Brands Hatch Shareholders accept the Offer,
as they have each irrevocably undertaken to do in respect of
their own beneficial shareholdings and those of certain
persons connected with them amounting to 6,573,804 Brands
Hatch Shares, which represent approximately 30.0 per cent in
aggregate of the Brands Hatch Shares.
14. Formal documentation
The formal documentation relating to the Offer is being sent
to Brands Hatch Shareholders today. The Offer Document
specifies the actions that should be taken by Brands Hatch
Shareholders.
15. General
The Offer will be subject to the Conditions set out in
Appendix II to this announcement and to such other terms to
be set out in the Offer Document as may be required to
comply with the Companies Act and the provisions of the City
Code. Persons not resident in the United Kingdom may be
affected by the laws of the relevant jurisdiction. Persons
who are not resident in the United Kingdom should inform
themselves about and observe any applicable requirements.
If the Offer becomes or is declared unconditional in all
respects, fractions of shares of Interpublic Common Stock
will not be issued to accepting Brands Hatch Shareholders
who will instead receive from Interpublic an amount in cash
in lieu of any entitlements to a fraction of a share of
Interpublic Common Stock. However, individual entitlements
of less than £3.00 will not be paid to Brands Hatch
Shareholders but will be retained for the benefit of the
Enlarged Interpublic Group.
Definitions of certain expressions used in this announcement
are set out in Appendix III.
This announcement contains forward-looking statements
including with respect to the consummation of the Offer, the
integration of services and opportunities related to the
Offer. As such statements apply to future events, they are
subject to risks and uncertainties which may cause the
actual results to differ materially, including, without
limitation, the risk that the Offer will not be consummated,
integration risks related to the Offer and the risk that the
anticipated benefits of the Offer will not be realised.
This announcement has been approved by
PricewaterhouseCoopers as an investment advertisement solely
for the purposes of Section 57 of the UK Financial Services
Act 1986.
PricewaterhouseCoopers, which is authorised to carry on
investment business by The Institute of Chartered
Accountants in England and Wales, is acting exclusively for
Interpublic and no one else in connection with the Offer and
will not be responsible to anyone other than Interpublic for
providing the protections afforded to clients of
PricewaterhouseCoopers nor for giving advice in relation to
the Offer.
Pannell Kerr Forster, which is authorised to carry on
investment business by The Institute of Chartered
Accountants in England and Wales, is acting exclusively for
Brands Hatch and no one else in connection with the Offer
and will not be responsible to anyone other than Brands
Hatch for providing the protections afforded to clients of
Pannell Kerr Forster nor for providing advice in relation to
the Offer.
This announcement does not constitute an offer or an
invitation to purchase any securities.
Copies of this announcement are not being, and must not be,
mailed or otherwise distributed or sent in or into the
United States, Canada, Australia or Japan and persons
receiving this announcement (including custodians, nominees
and trustees) must not distribute or send it into or from
the United States, Canada, Australia or Japan.
9 November 1999
Appendix I
Financial effects of acceptance
The following tables set out, for illustrative purposes only
and on the bases and assumptions set out below, the
financial effects of acceptance on capital value and income
for a holder of 100 Brands Hatch Shares accepting the Offer
if the Offer becomes or is declared unconditional in all
respects:
(a) Capital value(1)
A B
Sterling equivalent value of 22.67
shares of New Interpublic Common Stock(2) £546.19 £546.19
Market value of 100 Brands Hatch Shares(3) £401.98 £478.00
Increase in value £144.21 £68.19
Percentage increase 35.9% 14.3%
Notes:
(1) No account has been taken of any liability to taxation
or for the treatment of fractional entitlements to
Interpublic Common Stock. The New Interpublic Common
Stock will not include Interpublic's quarterly dividend
of 81/2 cents per share payable to Interpublic
Stockholders of record on 29 November 1999.
(2) The sterling equivalent value of New Interpublic Common
Stock is based on the closing price of $39 1/8 per
share of Interpublic Common Stock on the New York Stock
Exchange on 8 November 1999 (being the latest
practicable date prior to the release of this
announcement) and using the Illustrative Exchange Rate.
(3) The market value of Brands Hatch Shares is based, in
column A, on the average middle-market closing price of
401.98p per Brands Hatch Share for the 30 dealing days
prior to 22 October 1999, the date on which Brands
Hatch announced that it had received an approach that
might lead to an offer being made for the company, and,
in column B, on the middle-market closing price of 478p
per Brands Hatch Share on 21 October 1999, the day
immediately before the start of the Offer Period.
(b) Income(1)
Dividend income from 100 Brands Hatch Shares(2) £4.00
Dividend income from 22.67 shares of New
Interpublic Common Stock (3) £4.30
Increase in dividend income £0.30
Percentage increase 7.5%
Notes:
(1) No account has been taken of any liability to taxation
of income.
(2) Being the 4.0 pence (net) final dividend for the
financial year ended 31 December 1998 (no interim
dividend was declared for the financial year ending 31
December 1999).
(3) Based on aggregate dividends of 31.0 cents, being the
four quarterly dividends of $0.075, $0.075, $0.075 and
$0.085 in respect of the three month periods ended 30
September 1998, 31 December 1998, 31 March 1999 and 30
June 1999, respectively, converted at exchange rates of
£1.00 for $1.6989, $1.6580, $1.6143 and $1.5753,
respectively, being the US dollar to pound sterling
spot exchange rate in respect of the relevant period
end date.
Appendix II
Conditions of the offer
The Offer is governed by English law and is subject to the
following Conditions:
(a) valid acceptances being received (and not, where
permitted, withdrawn) by not later than the Initial Closing
Date in respect of not less than 90 per cent (or such lower
percentage as Interpublic may decide) of the Brands Hatch
Shares to which the Offer relates and Interpublic (together
with any of its wholly owned subsidiaries) having acquired
or agreed to acquire (pursuant to the Offer or otherwise)
Brands Hatch Shares carrying in aggregate more than 50 per
cent of the votes then normally exercisable at a general
meeting of Brands Hatch. For the purposes of this Condition:
(i) the expression 'Brands Hatch Shares to which the Offer
relates' is to be construed in accordance with Sections
428 to 430F of the Companies Act; and
(ii) Brands Hatch Shares which have been unconditionally
allotted but not issued are deemed to carry the voting
rights which they will carry on being entered in the
register of members of Brands Hatch;
(b) the Registration Statement, and any post-effective
amendments thereto, having become effective under the
Securities Act and no stop order suspending the
effectiveness of such registration statement or any part
thereof having been issued and no proceeding for that
purpose having been initiated or threatened by the SEC;
(c) Interpublic having received a letter from
PricewaterhouseCoopers LLP, dated as of the date on which
the Offer becomes or is declared unconditional in all
respects, confirming their concurrence with Interpublic
management's conclusion that the acquisition of Brands Hatch
may be accounted for as a pooling of interests under US
GAAP;
(d) no Authority having, before the date when the Offer
otherwise becomes unconditional in all respects, intervened
in a manner which would or might reasonably be expected to:
(i) make the Offer, its implementation or the acquisition
or proposed acquisition of any or all Brands Hatch
Shares or of control of Brands Hatch by Interpublic or
any member of the Wider Interpublic Group, void,
illegal or unenforceable under the laws of any
jurisdiction, in each case to a material extent;
(ii) directly or indirectly restrict, restrain, prohibit,
delay or otherwise interfere in the implementation of
the Offer or the acquisition or proposed acquisition
of any or all Brands Hatch Shares or of control of
Brands Hatch by Interpublic or any member of the Wider
Interpublic Group or impose additional conditions or
obligations with respect to the Offer or otherwise
challenge the Offer or such acquisition or proposed
acquisition, in each case to a material extent;
(iii) result, directly or indirectly, in a material delay in
the ability of any member of the Wider Interpublic
Group, or render any member of the Wider Interpublic
Group unable, to acquire some or all of the Brands
Hatch Shares;
(iv) require, prevent or delay the divestiture by any
member of the Wider Interpublic Group of any shares or
other securities (or the equivalent) in Brands Hatch;
(v) require, prevent or delay the divestiture by any
member of the Wider Interpublic Group or by any member
of the Wider Brands Hatch Group of all or any material
part of their respective businesses, assets or
properties or impose any limitation on the ability of
any of them to conduct any of their respective
businesses or own their respective assets or
properties or any material part of them;
(vi) impose any material limitation on, or result in a
material delay in, the ability of any member of the
Wider Interpublic Group or any member of the Wider
Brands Hatch Group to acquire or to hold or exercise
effectively, directly or indirectly, all or any rights
of ownership in respect of shares or other securities
(or the equivalent) in, or to exercise management
control over, any member of the Wider Interpublic
Group or any member of the Wider Brands Hatch Group
respectively;
(vii) save pursuant to the Offer or Part XIII A of the
Companies Act, require any member of the Wider
Interpublic Group or the Wider Brands Hatch Group to
acquire, or to offer to acquire, any shares or other
securities (or the equivalent) or interest in any
member of the Wider Interpublic Group or any member of
the Wider Brands Hatch Group owned by any third party,
in each case to an extent which is material;
(viii)impose any material limitation on the ability of any
member of the Wider Interpublic Group or any member of
the Wider Brands Hatch Group to integrate or co-
ordinate its business, or any part of it, with all or
any part of the businesses of any other member of the
Wider Interpublic Group or any member of the Wider
Brands Hatch Group;
(ix) result in any member of the Wider Interpublic Group or
any member of the Wider Brands Hatch Group ceasing to
be able to carry on business under any name under
which it presently does so, in each case to an extent
which is material; or
(x) otherwise adversely affect any or all of the
businesses, assets, profits or prospects of any member
of the Wider Interpublic Group or any member of the
Wider Brands Hatch Group, in each case to an extent
which is material in the context of the relevant group
taken as a whole;
and all applicable waiting and other time periods (including
any extensions of these) during which any Authority could
intervene under the laws of any jurisdiction having expired,
lapsed or been terminated;
(e) save as disclosed in the Annual Report and Accounts of
Brands Hatch or as disclosed in the interim statement of
Brands Hatch for the six months ended 30 June 1999 or as
otherwise publicly announced in accordance with the Listing
Rules by Brands Hatch before 9 November 1999 or as disclosed
to Interpublic or its advisers before 9 November 1999, no
member of the Wider Brands Hatch Group having (since 31
December 1998):
(i) recommended, declared, paid or made or proposed to
recommend, declare, pay or make, any dividend, bonus
or other distribution (payable in cash or otherwise)
other than to Brands Hatch (or wholly-owned
subsidiaries of Brands Hatch);
(ii) issued or agreed to, authorised, proposed or announced
an intention to authorise or propose, the issue or
grant of, additional shares of any class or securities
convertible into shares of any class or rights,
warrants or options to subscribe for or acquire,
shares of any class or securities into shares of any
class (save as between Brands Hatch and wholly-owned
subsidiaries of Brands Hatch and save for Options
granted, and the issue of shares pursuant to the
exercise of Options granted, before 9 November 1999);
(iii) issued or agreed to, authorised, proposed or announced
an intention to authorise or propose, the issue of,
any debentures or incurred or increased any
indebtedness or contingent liability (save as between
Brands Hatch and wholly owned subsidiaries of Brands
Hatch);
(iv) merged with or demerged or acquired or disposed of any
body corporate or authorised, proposed or announced an
intention to authorise or propose the merger,
acquisition, demerger or transfer of any asset of
material value or any right, title or interest in any
material asset (including, without limitation, shares
and trade investments), save as between Brands Hatch
and its wholly-owned subsidiaries and to an extent
which is material in the context of the Wider Brands
Hatch Group taken as a whole;
(v) made, proposed, authorised or announced an intention
to make, propose or authorise, any change in its share
or (save as between Brands Hatch and its wholly-owned
subsidiaries) loan capital, save for any shares
allotted pursuant to the exercise of Options granted
before 9 November 1999;
(vi) without limitation to paragraph (e)(v) of this Part A
of Appendix I, purchased, redeemed or repaid or
proposed the purchase, redemption or repayment of any
of, its own shares or other securities (or equivalent)
or reduced or made any other change to any part of its
share capital which is in any such case material (save
as between Brands Hatch and its wholly owned
subsidiaries);
(vii) entered into, varied, authorised, proposed or
announced its intention to enter into or vary any
contract, transaction, arrangement or commitment (in
respect of capital expenditure or otherwise) which:
(aa) is of a loss making, long-term, onerous or
unusual nature or magnitude;
(bb) would be restrictive on the business of any
member of the Wider Brands Hatch Group or any
member of the Wider Interpublic Group; or
(cc) involves or could involve an obligation which is
of a loss making, long term, onerous or unusual
nature or magnitude or could be restrictive on
the business of any member of the Wider Brands
Hatch Group or any member of the Wider
Interpublic Group;
(viii)mortgaged, charged, encumbered or created any other
security interest over any material right, title or
interest in the whole or any part of the business,
property or assets of any member of the Wider Brands
Hatch Group;
(ix) entered into or varied or made any offer (which
remains open for acceptance) to enter into or vary the
terms of any agreement, arrangement or commitment with
any of the directors, officers or employees of any
member of the Wider Brands Hatch Group or increased in
any manner the compensation or benefits of any
director, officer or employee of any member of the
Wider Brands Hatch Group, in each case to an extent
which is material;
(x) taken or proposed any corporate action or had any
legal proceedings instituted or threatened or petition
presented for its winding-up (voluntarily or
otherwise), dissolution or reorganisation or for the
appointment of a receiver, administrator,
administrative receiver, trustee or similar officer of
all or any of its assets and revenues or for any
analogous proceedings or steps in any jurisdiction or
for the appointment of any analogous person in any
jurisdiction;
(xi) been unable or admitted in writing that it is unable
to pay its debts or having stopped or suspended (or
threatened to stop or suspend) payment of its debts
generally or ceased or threatened to cease carrying on
all or a substantial part of its business;
(xii) made any alteration to its memorandum and articles of
association or any other incorporation documents;
(xiii)waived, compromised or settled any material claim; or
(xiv) entered into any agreement, arrangement or commitment
or passed any resolution or made any offer (which
remains open for acceptance) or announced any proposal
or intention with respect to any of the transactions,
matters or events referred to in this paragraph (e).
(f) save as disclosed in the Annual Report and Accounts of
Brands Hatch or as disclosed in the interim statement of
Brands Hatch for the six months ended on 30 June 1999 or as
otherwise publicly announced by Brands Hatch in accordance
with the Listing Rules before 9 November 1999 or as
disclosed to Interpublic or its advisers before 9 November
1999 and since 31 December 1998:
(i) there having been no adverse material change or
deterioration of the business, assets, financial or
trading position or profits or prospects of the Wider
Brands Hatch Group taken as a whole;
(ii) no litigation or arbitration proceedings, prosecution
or other legal proceedings having been instituted,
threatened, announced, intimated or remaining
outstanding to which any member of the Wider Brands
Hatch Group is or may become a party (as claimant or
defendant or otherwise);
(iii) no enquiry or investigation by or complaint or
reference to any Authority (save as a result of the
Offer) having been instituted, threatened, announced
by or against or remaining outstanding in respect of
any member of the Wider Brands Hatch Group which in
any of those cases might have a materially adverse
effect on the Wider Brands Hatch Group taken as a
whole; or
(iv) no contingent or other liability having arisen or
become apparent or increased which might be likely to
have a materially adverse effect on the Wider Brands
Hatch Group taken as a whole;
(g) save as disclosed to Interpublic or any of its
advisers before 9 November 1999, there being no provision of
any Instrument to which any member of the Wider Brands Hatch
Group is a party or by or to which any member of the Wider
Brands Hatch Group or any of its assets may be bound,
entitled or subject or any circumstance, which could, as a
consequence of the making of the Offer or the acquisition or
proposed acquisition by Interpublic of the share capital of
Brands Hatch or any part of it or a change in the control or
management of any member of the Wider Brands Hatch Group or
otherwise, result in:
(i) any monies borrowed by, or any other indebtedness or
liabilities (actual or contingent) of, or grant
available to, any member of the Wider Brands Hatch
Group being or becoming repayable or capable of being
declared repayable, immediately or before the stated
repayment date in the relevant Instrument, or the
ability of any member of the Wider Brands Hatch Group
to borrow monies or incur any indebtedness being
withdrawn or inhibited or becoming capable of being
withdrawn or inhibited;
(ii) the creation or enforcement of any mortgage, charge or
other security interest on or in relation to the whole
or any part of the business, property, assets or
interests of any member of the Wider Brands Hatch
Group or any mortgage, charge or other security
interest (whenever arising or having arisen) becoming
enforceable;
(iii) any Instrument or the rights, liabilities, obligations
or interests of any member of the Wider Brands Hatch
Group arising under any Instrument being, or becoming
capable of being, terminated or adversely modified or
affected or any adverse action being taken or any
obligation or liability arising under any Instrument;
(iv) any interest, assets or property of any member of the
Wider Brands Hatch Group being or becoming capable of
being required to be disposed of or charged otherwise
than in the ordinary course of business;
(v) the rights, liabilities, obligations interests or
business of any member of the Wider Brands Hatch Group
in or with any other venture, person, firm, company or
body, or any arrangements relating to those interests
or that business, being terminated, adversely modified
or affected;
(vi) any member of the Wider Brands Hatch Group ceasing to
be able to carry on business under any name under
which it presently does so;
(vii) the respective value, or the financial or trading
position, profit or prospects of any member of the
Wider Brands Hatch Group being adversely affected; or
(viii)the creation of any liabilities (actual or contingent)
by any member of the Wider Brands Hatch Group,
otherwise than in the ordinary course of business;
(in any case to an extent which is material in the context
of the Wider Brands Hatch Group taken as a whole) and no
event having occurred which, under any provision of any
Instrument to which any member of the Wider Brands Hatch
Group is a party, or to which any member of the Wider Brands
Hatch Group or any of its assets may be bound, entitled or
subject, could result in any of the events or circumstances
referred to in this paragraph (g); and
(h) Interpublic not having discovered, after 8 November
1999, that:
(i) any financial, business or other information
concerning the Wider Brands Hatch Group disclosed at
any time by or on behalf of any member of the Wider
Brands Hatch Group (publicly, to any member of the
Wider Interpublic Group or otherwise) is misleading or
contains a misrepresentation of fact or omits to state
a fact necessary to make any information contained in
it not misleading in any case which has not been
corrected by any subsequent public announcement before
9 November 1999 and which is material in the context
of the Wider Brands Hatch Group taken as a whole;
(ii) any member of the Wider Brands Hatch Group will, or is
likely to, be adversely affected by any failure of any
computer hardware, software or embedded chip
technology relied on by any member of the Wider Brands
Hatch Group to be Year 2000 Compliant or by the cost
or disruption to normal activities caused by work
carried out or to be carried out to ensure that the
relevant computer hardware, software or embedded chip
technology is Year 2000 Compliant;
(iii) any member of the Wider Brands Hatch Group or
partnership, company or other entity in which any
member of the Wider Brands Hatch Group has an interest
and which is not a subsidiary undertaking of Brands
Hatch, is subject to any liability, contingent or
otherwise, which is not disclosed in the Annual Report
and Accounts of Brands Hatch or in the interim
statement of Brands Hatch for the six months ended 30
June 1999 or has not otherwise been disclosed to
Interpublic or publicly announced by Brands Hatch in
accordance with the Listing Rules before 9 November
1999 which is material in the context of the Wider
Brands Hatch Group taken as a whole;
(iv) any past or present member of the Wider Brands Hatch
Group has not complied with all applicable legislation
or regulations in any jurisdiction or any contractual
term or arrangement with regard to the storage,
disposal, discharge, spillage, leak or emission of any
waste or hazardous substances or any substance likely
to impair the environment or harm human health, or
otherwise relating to environmental matters, or that
there has otherwise been such disposal, discharge,
spillage, leak or emission (whether or not the same
constituted a noncompliance by any person with any
such legislation or regulations or contractual term or
arrangement and wherever the same may have taken
place) which would or might give rise to any liability
for cost (actual, prospective or contingent) on the
part of any member of the Wider Brands Hatch Group
which is material in the context of the Wider Brands
Hatch Group taken as a whole;
(v)
(aa) there has been, or is likely to be, a disposal,
discharge, spillage or leak of waste or
hazardous substances or any substance likely to
impair the environment or harm human health, on;
or
(bb) there has been, or is likely to be, an emission
of waste or hazardous substances or any
substance likely to impair the environment or
harm human health, from;
any property now or previously owned, occupied or made
use of by any past or present member of the Wider
Brands Hatch Group or in which any past or present
member of the Wider Brands Hatch Group may have or
previously have had or be deemed to have or to have
had an interest under any environmental legislation,
regulation, notice, circular or order of any Authority
or otherwise which would be likely to give rise to any
liability (actual, prospective or contingent) on the
part of any member of the Wider Brands Hatch Group;
(vi) there is, or is likely to be, any liability (actual,
prospective or contingent) or requirement to make
good, repair, reinstate or clean up any property now
or previously owned, occupied or made use of by any
past or present member of the Wider Brands Hatch Group
or in which any member of the Wider Brands Hatch Group
may have or previously have had or be deemed to have
or to have had an interest under any statute,
regulation, notice, circular, order or decision of any
Authority or otherwise; or
(vii) circumstances exist (as a result of the making of the
Offer or otherwise):
(aa) which would be likely to lead to any Authority
instituting; or
(bb) in which any member of the Wider Interpublic
Group or any present or past member of the Wider
Brands Hatch Group would be likely to be
required to institute;
any environmental audit or take any other steps which
would in any case be likely to result in any actual,
prospective or contingent liability to make good,
repair, reinstate or clean up any property now or
previously owned, occupied or made use of by any past
or present member of the Wider Brands Hatch Group or
in which any member of the Wider Brands Hatch Group
may have or previously have had or be deemed to have
or to have had an interest under any statute,
regulation, notice, circular, order or decision of any
Authority or otherwise.
For the purposes of these Conditions:
(1) 'Authority' means any government, government
department or governmental, quasi-governmental, state or
local government, supranational, statutory, regulatory,
administrative or investigative body, authority (including
any national antitrust or merger control authorities),
court, trade agency, association, institution or
professional or environmental body or any other person or
body in any jurisdiction;
(2) an Authority shall be regarded as having 'intervened'
if it has decided to take, institute, implement or threaten
any action, proceedings, suit, investigation, inquiry or
reference or made, proposed or enacted any statute,
regulation, decision or order or taken any measures or other
steps or required any action to be taken or information to
be provided or otherwise having done anything and
'intervene' is to be construed accordingly; and
(3) 'Instrument' means any arrangement, agreement, lease,
licence, permit, franchise or other instrument.
Interpublic may waive in whole or in part all or any of the
Conditions, except the Acceptance Condition and Condition
(b).
Interpublic will not invoke any of the Conditions (e) to (h)
(inclusive) in relation to circumstances which would
otherwise give rise to the right to invoke any of these
Conditions where there has been fair disclosure of the
relevant circumstances to Interpublic or its advisers by or
on behalf of Brands Hatch before 9 November 1999.
Conditions (b) to (d) must be satisfied or (to the extent
permitted) waived by midnight (London time) on 21 December
1999 or, if later, by midnight on the 21st day after the
date on which the Acceptance Condition is fulfilled or is
declared fulfilled (or in each case, any later date as the
Panel may agree), failing which the Offer will lapse.
Interpublic will not be obliged to waive (to the extent
permitted) or treat as satisfied any of Conditions (b) to
(d) before the latest date specified in this paragraph for
the satisfaction of these Conditions even if the other
Conditions of the Offer may have already been waived or
satisfied and there are no circumstances indicating that any
of Conditions (b) to (d) may not be capable of satisfaction.
If Interpublic is required by the Panel to make an offer or
offers for Brands Hatch Shares under Rule 9 of the City
Code, Interpublic may make those alterations to the terms
and Conditions of the Offer, including to the Acceptance
Condition, as may be necessary to comply with that Rule.
Unless the Panel agrees otherwise the Offer will lapse if:
(a) it is referred to the UK Competition Commission by the
UK Secretary of State for Trade and Industry; or
(b) the European Commission either initiates proceedings
under Article 6(1)(c) of the Council Regulation or makes a
referral to a competent authority of the United Kingdom
under Article 9(1) of the Council Regulation and there is a
subsequent reference to the UK Competition Commission;
in each case, before 3.00 pm on 30 November 1999 or the date
when the Offer becomes or is declared unconditional as to
acceptances, whichever is the later.
If the Offer lapses, the Offer will cease to be capable of
further acceptance and Brands Hatch Shareholders accepting
the Offer and Interpublic will immediately cease to be bound
by acceptances delivered on or before the date on which the
Offer lapses.
Appendix III
Definitions
The following definitions apply throughout this
announcement, unless the context requires otherwise:
'Acceptance Condition' means the Condition set out in
paragraph (a) of Appendix II;
'Annual Report and means the annual report and audited
Accounts of Brands accounts of the Brands Hatch Group
Hatch' for the year ended 31 December
1998;
'Brands Hatch' means Brands Hatch Leisure PLC;
'Brands Hatch Group' means Brands Hatch and its
subsidiary undertakings;
'Brands Hatch Share means the Brands Hatch Approved
Option Schemes' Executive Share Option Scheme and
the Brands Hatch Unapproved
Executive Share Option Scheme;
'Brands Hatch means holders of Brands Hatch
Shareholders' Shares;
'Brands Hatch Shares' means ordinary shares of 25p each
in the capital of Brands Hatch;
'City Code' means the City Code on Takeovers
and Mergers;
'Companies Act' means the Companies Act 1985 of
Great Britain;
'Compulsory Acquisition means the compulsory acquisition
Procedures' procedures set out in Sections 428
to 430F of the Companies Act;
'Conditions' means the conditions of the Offer
set out in Appendix II and
'Condition' means any one of them;
'Council Regulation' means Council Regulation (EEC)
4064/89;
'Enlarged Interpublic means the Interpublic Group
Group' following the acquisition of Brands
Hatch pursuant to the Offer;
'Illustrative Exchange means $1.6239: £1.00, being the mid-
Rate' point of the closing spread of the
dollar to sterling spot rate, as
shown in the Financial Times (UK
edition) on 8 November 1999 (being
the latest practicable date prior
to the release of this
announcement);
'Initial Closing Date' means 3.00 pm (London time) on 30
November 1999, unless and until
Interpublic in its discretion
extends the Offer, in which case
the term 'Initial Closing Date'
means the latest time and date at
which the Offer, as so extended by
Interpublic, will expire;
'Initial Offer Period' means the period from the date of
the Offer Document to and including
the Initial Closing Date;
'Interpublic' means The Interpublic Group of
Companies, Inc.;
'Interpublic Common means common stock of $0.10 each in
Stock' the share capital of Interpublic;
'Interpublic Group' means Interpublic and its
subsidiary undertakings;
'Interpublic means holders of Interpublic Common
Stockholders' Stock;
'Listing Rules' means rules made by the London
Stock Exchange under the authority
of the UK Financial Services Act
1986 relating to the admission of
securities to the Official List and
the continuing obligations of
listed companies;
'London Stock Exchange' means London Stock Exchange
Limited;
'New Interpublic Common means Interpublic Common Stock to
Stock' be delivered pursuant to the Offer;
'Octagon' means the sports marketing and
entertainment division of
Interpublic;
'Offer' means the recommended offer to be
made by Interpublic to acquire all
the issued and to be issued Brands
Hatch Shares on the terms and
subject to the Conditions set out
in the Offer Document including,
where the context so requires, any
subsequent revision, variation,
extension or renewal of that offer;
'Offer Document' means the document being posted
today to Brands Hatch Shareholders
and any other document containing
the Offer;
'Offer Period' means, in relation to the Offer,
the period commencing on 22 October
1999 until the end of the Initial
Offer Period;
'Official List' means the Daily Official List of
the London Stock Exchange;
'Optionholders' means holders of Options;
'Options' means options granted pursuant to
the terms of the Brands Hatch Share
Option Schemes;
'Panel' means the Panel on Takeovers and
Mergers;
'Pannell Kerr Forster' means Pannell Kerr Forster, a firm
which has provided independent
financial advice to the board of
Brands Hatch for the purposes of
Rule 3.1 of the City Code;
'PricewaterhouseCoopers' means PricewaterhouseCoopers, the
financial adviser to Interpublic
for the purposes of the City Code
and for the purposes of approving
this announcement as an investment
advertisement in accordance with
Section 57 of the UK Financial
Services Act 1986;
'PricewaterhouseCoopers means PricewaterhouseCoopers LLP,
LLP' independent public accountants to
Interpublic;
'Registration means the Registration Statement on
Statement' Form S-4 relating to the Offer and
filed by Interpublic with the SEC
under the Securities Act;
'SEC' means the United States Securities
and Exchange Commission;
'Securities Act' means the United States Securities
Act of 1933 and the rules
thereunder;
'UK' or 'United Kingdom' means the United Kingdom of Great
Britain and Northern Ireland;
'US', 'USA' or 'United means the United States of America,
States' its territories and possessions,
any State of the United States of
America and the District of
Columbia;
'Wider Brands Hatch means the Brands Hatch Group and
Group' associated undertakings and any
other body corporate, partnership,
joint venture or person in which
Brands Hatch and those undertakings
(aggregating their interests) have
an interest of more than 20 per
cent of the voting or equity
capital or the equivalent;
'Wider Interpublic means the Interpublic Group and
Group' associated undertakings and any
other body corporate, partnership,
joint venture or person in which
Interpublic and those undertakings
(aggregating their interests) have
an interest of more than 20 per
cent of the voting or equity
capital or the equivalent; and
'Year 2000 Compliant' means complying with the year 2000
conformity requirements promulgated
by the British Standards Institute
whose definition is as follows:
'Year 2000 conformity shall mean
that neither performance nor
functionality is affected by dates
before, during and after the year
2000. In particular:
Rule 1 no value for current date
will cause any interruption
in operation;
Rule 2 date-based functionality
must behave consistently
for dates before, during
and after the year 2000;
Rule 3 in all interfaces and data
storage, the century in any
date is specified either
explicitly or by
unambiguous algorithms or
inferencing rules; and
Rule 4 the year 2000 must be
recognised as a leap
year.'.
For the purposes of this announcement, unless the context
otherwise requires:
(1) 'subsidiary', 'subsidiary undertaking', 'associated
undertaking' and 'undertaking' have the respective
meanings given by the Companies Act (but for this
purpose ignoring paragraph 20(1)(b) of Schedule 4A of
the Companies Act);
(2) references to the singular include the plural and vice
versa;
(3) references to any appendix, paragraph and subdivisions
of them are references to the appendices and
paragraphs of this announcement and any subdivisions
of them respectively;
(4) references to any statute, regulation or provision
thereof include a statute, regulation or provision
thereof which amends, consolidates or replaces it
whether before or after the date of this announcement;
and
(5) references to '$' are to US dollars and references to
'£' and 'p' are to pounds sterling and pence,
respectively.