Lace toughs out suspension by Lowe

Vodafone's global marketing director and a one-time agency
colleague.

"Everybody was going up to him and wishing him well," another diner
says. "It was very brave of him."

The show of chutzpah was typically Lace. The flamboyant cheeky chappie
with the eye for the main chance has never done humility very well. Two
years ago, he departed as Grey London's boss having vehemently denied
claims made in a widely circulated hoax e-mail that he was leaving to go
into business with one of his clients.

Blimey, sounds like Groundhog Day. So what's it all about?

Lowe's Interpublic parent has ordered an investigation into allegations
that Lace had dealings with Sir Frank Lowe.

These contacts are claimed to have taken place last year and before Sir
Frank committed himself to The Red Brick Road start-up which
subsequently poached Lowe London's £50 million Tesco account.

The investigation into whether or not Lace was in breach of his
contractual and fiduciary responsibilities to Lowe is a direct result of
the ongoing legal dispute between IPG and Sir Frank.

Really? How come?

IPG sources say testimony provided by Sir Frank in defence of IPG's
action against him raised concerns and caused the group to look more
closely at other matters, which arose during Lace's 13 months in charge
of Lowe London. Nobody is saying what these other issues are and Lace
was unavailable for comment as Campaign went to press.

One significant matter to be resolved is the extent of the contact
between Lace and Sir Frank last September and what they talked
about.

A pint of ale and a pie?

IPG and Sir Frank's camp agree that a meeting between the pair took
place in a London pub. Also present was Paul Weinberger, then Lowe
London's chairman and the key figure on the Tesco business. He resigned
at the end of last year to join the start-up.

Who asked for the meeting is disputed. Sir Frank insisted last week that
it was not him. Also in question is whether, as Sir Frank's camp claims,
one meeting took place or, as IPG believes, there were others.

IPG insists Lace never told his bosses about his contacts with Sir
Frank.

This has caused senior executives to ask whether the launch of a
start-up built around Tesco was discussed by them.

Events reached a climax last Thursday afternoon when Steve Gatfield,
Lowe Worldwide's new chief executive, told Lace he was being suspended
indefinitely while investigations were completed. The hope is that this
can be done by the end of the month.

Who's minding the shop, then?

With its managing director, Chris Hunton, in temporary charge, Lowe
London is battening down the hatches. The agency awaits the result of
its pitch for Thomas Cook holidays. But an insider said: "New business
isn't our focus at present. Our emphasis has to be on clients who remain
loyal but may worry that we're being distracted from working on their
business."

- Opinion, page 21

THE LACE FILE

1967: Born in York.

1990: Joins Saatchi & Saatchi as graduate trainee after leaving
Manchester University with English degree.

1995: After spells at Young & Rubicam and Abbott Mead Vickers BBDO,
joins Euro RSCG as account director on the £35 million Peugeot
business. Becomes agency's youngest board director.

1997: Joins the then Simons Palmer Denton Clemmow Johnson with
responsibility for Sony PlayStation. Remains in place as agency merges
to become part of TBWA GGT Simons Palmer.

2000: Becomes TBWA joint managing director alongside Johnny Hornby.

2001: Promoted to chief executive when Hornby and Simon Clemmow quit to
launch a start-up.

2002: Joins Grey London as chief executive to relaunch the agency and
build a new management team.

2003: Quits as chairman of Nabs, citing heavy commitments at Grey.

2004: Hoax e-mail claims Lace will quit Grey to set up Air Miles-type
loyalty scheme. He denies plan but leaves Grey a month later.

2005: Hired by Lowe London as chief executive.

2006: Suspended indefinitely pending outcome of Interpublic Group-led
investigation into his conduct.