Interpublic Group and Sir Frank Lowe’s new start-up Red Brick Road are thought to be close to a resolution to the fierce tussle over the &£50m Tesco advertising business.
Industry insiders say the lawsuits against Sir Frank and Paul Weinberger are likely to dropped, with all the parties drawing a line under the issue.
IPG has warned Weinberger, the former Lowe London chairman that he would be held to his full notice period, restricting him from running the creative team at the new start-up, Red Brick Road. IPG has threatened to file charges against Sir Frank with the American Arbitration Association in New York to stop what it claims is his use of confidential information gained while at Lowe Worldwide.
One observer says: “IPG seems to insist that Sir Frank had a ‘duty of care’ towards his former employer, and is therefore quite upset that he is trying to decimate the company.”
But both IPG and Red Brick Road are understood to be ironing out their differences in the US this week.
Sources close to the dispute say the disagreement comes down to a sum of money that Tesco promised to pay Lowe London. The original deal is thought to have fallen through, after both IPG and Tesco failed to reach agreement over the exact amount.
Tesco was unavailable for comment as Marketing Week went to press.