Demerger will see Rowland join Saatchi not Bates

Rowland Worldwide is to become part of Saatchi and Saatchi when parent company Cordiant demerges at the end of the year, rather than becoming part of the Bates group, as originally planned.

Rowland Worldwide is to become part of Saatchi and Saatchi when

parent company Cordiant demerges at the end of the year, rather than

becoming part of the Bates group, as originally planned.



The decision, confirmed this week, represents a U-turn by Cordiant after

pressure from major Saatchi and Saatchi clients including Procter and

Gamble and Du Pont.



Cordiant was set up as a holding company after the Saatchi brothers

split with Saatchi and Saatchi in 1995.



But in April Cordiant decided to demerge because of financial

pressure.



It announced that its advertising agency groups Saatchi and Saatchi and

Bates would split, with Rowland becoming part of Bates.



Because Bates has more below-the-line operations than Saatchi and

Saatchi it was originally felt that Rowland would fit better with

Bates.



The Rowland Company UK managing director Beverley Kaye hinted at tension

within management ranks over the original demerger decision.



’It is of some comfort to those of us who spearhead the businesses that

we had some influence over the powers that be,’ she said.



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