Saatchi & Saatchi may lose the Conservative Party's prestigious advertising account, and in New York the Securities and Exchange Commission may launch an inquiry into dealings in Saatchi shares.
An emergency board meeting will be held today to discuss how to underpin the embattled company.
Michael Dobbs, deputy Conservative chairman, yesterday refused to rule out switching the account to The New Saatchi Agency which is being formed by Maurice Saatchi, who was deposed last month from the company he founded.
John Major, the Prime Minister, and Jeremy Hanley, the Conservative chairman, are said to want to stay with Mr Saatchi, who was a key adviser during elections.
Mr Dobbs added: "It's a problem which is one for the agency at the moment, not the Conservative Party. We are simply sitting back and looking at what happens." The Tories, however, still have a pounds 600,000 bill to settle with the agency before they can movethe account. This would be a much bigger blow than last week's loss of the British Airways and Mirror Group accounts.
Tom Russel, the New York-based non-executive director of Saatchi & Saatchi, yesterday raised the possibility of a US inquiry into US dealings to follow the present one by the Stock Exchange in London. He said: "I wouldn't be surprised if the SEC got involved in any way."
Millions of shares were traded, and the price fell 16p to 124p last Monday during the four hours it took before investors were formally informed of the resignations of three senior executives, who included Jeremy Sinclair, the acting chairman and chief creative director.
Today's agenda will also include a mountain of legal matters, the choice of another chairman, and the delicate subject of what to do about Charles Saatchi.
Besides preparing to go to court for restrictive injunctions against Maurice Saatchi and other defectors, the company is taking legal advice on a complicated dispute with Robert Louis Dreyfus, its former chief executive, and is said to be facing a $150m (pounds 95m) lawsuit from …