London: A huge row has broken out between Cordiant Communications
and the management of its international PR division, Business
Communications International (BCI), leading to the ejection of its two
Both CEO Nick Miles and group managing director Hugh Morrison were asked
to leave BCI last week. A senior Cordiant source said, "(Miles and
Morrison) got frustrated with the relationship, and Cordiant didn't want
to deal with them anymore."
Miles and Morrison wanted to extricate investor relations agency
Financial Dynamics from BCI by suggesting a management buyout, but the
proposition was rejected by Cordiant CEO Michael Bungey. Miles is now
taking legal advice.
BCI was initially formed in November 2000 to accommodate Abernathy
MacGregor, which it was posed to buy.
At the eleventh hour, however, the agency was snatched up by Havas.
The source pointed out that Cordiant has had to renegotiate its banking
covenants, and that given its debts, it is hardly in acquisition
Financial Dynamics has offices in London and New York. Other agency
brands include Morgen-Walke in the US, and IBI in Japan.
Financial Dynamics was often touted as one of Cordiant's best
performers, though last week Cordiant's London-based PR agency College
Hill was distinctly downplaying its contribution, saying that Financial
Dynamics represented less than 3% of the company's total revenues.