UPDATE 2-Interpublic quarterly loss narrows; shares rise

(Adds share movement, details on SEC talks)

By Paul Thomasch

NEW YORK, April 30 (Reuters) - Advertising company Interpublic Group of Cos Inc (IPG.N: Quote, Profile, Research) reported a smaller quarterly loss on Wednesday, as clients kept spending on everything from marketing to public relations despite the economic slowdown.

The parent company of DraftFCB, McCann-Erickson and other agencies also indicated that a long investigation by U.S. securities regulators was about to wrap up, and its shares rose as much as 8 percent.

A settlement with the Securities and Exchange Commission would close the door on past accounting problems that threw Interpublic into turmoil for several years, leading to some key account losses and management turnover.

Lately, the company has been picking up new business, including wins for work on Dr. Pepper (CBRY.L: Quote, Profile, Research), Staples (SPLS.O: Quote, Profile, Research) and Hyundai Motors America/Kia Motors (005380.KS: Quote, Profile, Research). This week, however, it was beaten out of a key Intel (INTC.O: Quote, Profile, Research) account.

Interpublic set aside $12 million for what it estimates will be its liability from the SEC matter and described the settlement discussions as "advanced."

"It will be significant for us to finally put this issue behind us," Chief Executive Michael Roth said on a conference call.

Analysts welcomed signs that the company could be resolving its past accounting problems.