Blow for Havas as it pulls out of $300m Intel review

by Gordon MacMillan,, Brand Republic 12-Jan-05, 08:45

LONDON - Havas has admitted defeat and pulled out of the protracted $300m (£168m) Intel advertising and media account review, which has been ongoing since October, leaving three agencies in the running.

Havas said that Euro RSCG Worldwide and media agency Media Planning Group were leaving the review, despite being given the opportunity to make a presentation along with the other finalists. It said it made the decision because it saw a change in agency by Intel as inevitable.

In a statement, Havas said: "It has become increasingly clear that Intel's drive towards business transformation would inevitably lead to a change in agencies. After much consideration, Euro RSCG decided its talent and resources would be better focused on our current clients and the high-profile new-business competitions we are involved in."

The exit of Havas is understood to leave three shortlisted agencies from Interpublic Group, Omnicom and WPP Group. Early on in the battle for the Intel account, there had been talk that the account could go to one of two WPP agencies -- J Walter Thompson or Berlin Cameron/Red Cell New York.

Sir Martin Sorrell, chief executive of WPP, is said to get on well with Intel's new chief marketer Eric Kim, who worked with WPP agencies in his previous role at Korean electronics firm Samsung.

Last week, it was reported that Havas was on the verge of losing the Intel advertising and media account, which analysts believe will further weaken the French advertising firm in its tussle with corporate raider Vincent Bollore.

Havas had fought hard to stay in the running and chairman Alain de Pouzilhac has personally been involved in Euro RSCG's efforts to retain Intel and he flew to New York late last year to help retain the business.

Euro RSCG has handled the Intel account since 1991 although the famous TV campaign that features the recognisable Intel chime and the tagline "Intel inside" was created by Dahlin Smith & White in Salt Lake City, which Havas acquired.

Havas now faces the prospect of a very bad start to the year with speculation that it could also lose its Volkswagen media account. VW is in the throes of reviewing its $1.4bn global media business. MPG handles the $500m North American account. In Europe, the VW media account is run by WPP/Grey Global Group's MediaCom.

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