Cordiant's PR division rudderless as top dogs exit amid squabble

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

bosses.



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

mode.



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.



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