I spent 29 years at Intermarkets, but when the fortune of this great Middle Eastern agency began a downward spiral towards the middle of 1999, I failed to understand the real reason behind this sad misfortune. Was it the deteriorating health of Erwin Guerrovich, the strong leader, and the omnipresent captain of the ship? Was it Y&R, which had discovered that the Arab agency it had partnered with was not in fact present in many of the markets it had claimed it was? Did this realization lead to the desperate attempt of Talal Makdissi and Joseph Ghossoub to make a fierce attempt to buy Intermarkets to cover up their own bluff? Did the Burson-Marsteller brand, globally owned by Y&R, and partnered in the Middle East with Intermarkets, act as a catalyst behind this assault? Or was it all these reasons combined? Did the shocking outcome of its due diligence lead TBWA Worldwide to freeze the acquisition dialogue it had been engaged in with Intermarkets?
On our side of the fence, Guerrovich continued to assure his partners that TBWA needed Intermarkets and, before too long, would come back begging to resume the negotiations. Time passed, and when this did not happen, Erwin asked me, being the only person that TBWA trusted, to reach out and arrange a meeting for the two of us with TBWA.
TBWA agreed under the condition that we meet the network carrying the authority of all Intermarkets’ shareholders to sign a binding agreement during the visit. It even bluntly stressed that if we were unable to secure such a mandate, we better not come. Finally, we attended an extremely polite and straightforward meeting. TBWA told Guerrovich that in every business transaction there is a seller and a buyer. TBWA had already quoted a purchase price based on the audit and the due diligence it had conducted. This was not accepted by Guerrovich and his partners. So now TBWA wanted to know what sale price Intermarkets expected. It further stated that it was standing by to communicate this price to its parent company, Omnicom, and within 24 hours it would revert with a yea or a nay. I hoped that Guerrovich had come prepared and would quote a price on the spot. He asked for one more grace period, promising to revert the next day.
Back at the hotel, I ordered a bottle of champagne from room service and carried it to his room. Oddly, he asked for the champagne to be returned and hit me with a lecture that we would only celebrate when we had a contract to sign. I retired to my room loaded with severe frustration, only to hear the phone ringing as I opened the door. Reg Lascaris was on the line to announce that the deal had been cancelled from TBWA’ side. Reg explained that Y&R had contacted Omnicom to enquire if TBWA was still in dialogue with Intermarkets, because its affiliate in the Middle East claimed it had plans to purchase Intermarkets. As such, Y&R in New York wanted to avoid a bidding war with Omnicom.
On the flight back to Dubai, Guerrovich wanted to deliver another of his lectures, this time about the wisdom of negotiating with two buyers when one wants to get the best deal. But I ignored him by keeping the earphones on throughout the flight. Back at base, the bargaining began between Guerrovich and Makdissi to determine the final price for the sale of the largest and most reputable advertising group in the Middle East. Other than Guerrovich, Raymond Hanna and, to a lesser extent in terms of shares, Gabriel Brenas. Not forgetting the fact that there were three other people – Nadim Sfeir, Khalil Bitar and me – holding a promise from Guerrovich of minor shares. None of us held any legal papers to prove this, other than the scribbled notes from Guerrovich’s famous Duplicata notepad promising 2.5 and 10 shares. We all knew that without papers we would not get a single penny when such an intrigue-packed transaction gets underway. I launched a tough battle on behalf of all three, which finally yielded formal shareholding certificates (issued in a hurry), thus allowing me entry into the meeting with the buyers and their lawyer, and to secure a place for me and my other two colleagues in the purchase transaction.
When we concluded that detrimental agreement, I announced that I was stepping out, much to the shock of everybody. First, there was obvious disbelief, which was quickly followed by panicky bargaining as Makdissi and Ghossoub thought I was manoeuvring for a better share in the transaction, just like everybody else. When they finally realized that I would never fall prey to their type of thinking, they turned nasty and reverted with a vengeance-loaded deal, which restrained me from returning to Dubai for 15 months and deprived me of my share of Intermarkets’ retained earnings. My lawyer advised me that time was working in their favor, and accordingly he persuaded me to accept this unfair deal, which I did.
That same evening, I received a call from an old advertising friend, Avi Bhojani, who asked me to call a senior Dubai government official who was keen to have a chat with me. I did and was extremely proud to hear that all I had done for Dubai since my arrival in October 1975 had been noted and appreciated. The news about my previous days’ forced agreement have become known and I was needed in Dubai now more than ever. Dubai Government wanted me to know that an assignment was lined up for me. I was also assured that I would be returning under government request, hence the restraint agreement that I had just signed would not be enforceable. I travelled to Dubai and instantly took over the responsibility of advisor to the newly established Dubai Press Club.
Before the end of the year, I received a call from TBWA telling me that they were still very much interested in having a presence in the Middle East, and were keen to know if I would be ready to lead its operation? I instantly confirmed.