Interpublic pulls out of Grand Prix

AMERICAN advertising group Interpublic is cutting its ties with the British Grand Prix as it attempts to refocus on its core business and halt losses.

The owner of the McCann-Erickson agency said it had struck a deal with Formula One Administration to halt its promotion of the annual motor race at Silverstone after this year's contest in July.

Early release from the agreement, which would have run until 2015, will cost Interpublic $93m (£51.5m).

'This is another important step in our turnaround,' said Interpublic chairman and chief executive David Bell.

'I have made it clear that it is inappropriate for us to be involved in owning or operating venuebased motor sports businesses.'

The company said it still has lease obligations for the Silverstone circuit which would cost $62m and would be paid between now and 2007.

In January, Interpublic sold circuits at Brands Hatch, Oulton Park, Cadwell Park and Snetterton for an undisclosed sum.