GGT Group PLC - Re Developments at Wells BDDP
19 February 1998 - 4:20AM
UK Regulatory
RNS No 2403b
GGT GROUP PLC
18th February 1998
The GGT Group plc ("GGT")
Developments at Wells BDDP
Following the resignation of Procter & Gamble as a
client of GGT's New York agency, Wells BDDP, which
was announced on 21 January 1998, and the
recommended cash offer made on 6 February 1998 on
behalf of Omnicom Group Inc. ("Omnicom") for all of
the issued and to be issued share capital of GGT,
the Directors of GGT note the recent press reports
concerning certain further developments at Wells
BDDP in respect of its clients and its operations,
which the Directors of GGT believe should be
notified to all GGT shareholders.
GGT confirms that Wells BDDP has been informed that
one of its major clients, Heineken, will be moving
its account to a new agency in early May 1998.
Heineken is concerned about possible conflicts of
interest created by Omnicom's offer for GGT between
its own account and that of Omnicom's client,
Anheuser Busch. Wells BDDP will be working closely
with Heineken to ensure continuity of service during
this transfer. Wells BDDP has also been informed
that another client, TAG Heuer, intends to withdraw
its account. In addition, the Chase Manhattan Bank
has announced its intention to review all of its
advertising relationships, and Wells BDDP has been
invited to participate in this review.
Approximately 60 staff who provided support for the
Procter & Gamble account will be leaving Wells BDDP
by the end of March 1998 to follow the client to its
new agencies. The cost of these staff reductions
was included within the exceptional costs referred
to in the announcement made by GGT on 21 January,
1998.
It should be noted that, in formulating its
recommended cash offer for GGT, Omnicom provided
that the effects of client losses at Wells BDDP
should be specifically excluded from certain of the
offer conditions. As a result the developments set
out in this announcement will not affect the offer,
and the Directors of GGT continue to recommend its
acceptance.
Enquiries:
The GGT Group plc 0171 437 0434
Mike Greenlees
DLJ Phoenix Securities Limited 0171 655 7500
Margaret Young
Brunswick 0171 404 5959
Victoria Sabin
Rebecca Blackwood
DLJ Phoenix Securities Limited, which is regulated
by the Securities and Futures Authority Limited, is
acting for GGT and for no one else in connection
with the Offer and will not be responsible to anyone
other than GGT for providing the protections
afforded to customers of DLJ Phoenix Securities
Limited nor for giving advice in relation to the
Offer.
END
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