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Leo Burnett joins with Arc in global restructure

LONDON - Leo Burnett restructured its operations worldwide and is to more closely realign the main agency with below-the-line agency Arc. The two will in future work more closely together globally under the Leo Burnett Worldwide umbrella.

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The two had already begun to operate successfully together and recently won the £20m Barclays iShares business across the EMEA region.

The restructure will give dual responsibility to local managers, who previously oversaw either the Arc or Leo brand alone. The senior management structure that has been successful in EMEA is now to be used in the US across specific departments.

The reorganisation will also create a new global network, divided into groups of markets that are experiencing similar industry growth.

At the heart of this evolved structure will be the new global management council, which will ensure significant businesses worldwide receive the attention and funding required.

The GMC will have representatives from 10 key markets globally, including the US, China and Iberia, working with Andrew Edwards, the current president of Arc EMEA who now takes on a leadership position for the combined Arc and Leo brands across a number of countries in the region.

Marc Landsberg, president of Arc Worldwide and North America, will leave the company in 2007. The newly combined Arc/Burnett operation in the US, Canada and Mexico will be managed by co-presidents Rich Stoddart and Juan Carlos Ortiz.

Tom Bernardin, Leo Burnett Worldwide chairman and chief executive, said: "Right now the joint Arc/Burnett task force is looking at what the exact right operating model will look like for us -- but in the meantime consider Burnett and Arc as one entity, albeit with two facets. Neither brand name will disappear, and either will continue to go to market individually if a competitive advantage is to be gained by doing so."

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