Roberts signs five-year contract

By DITA DE BONI

Saatchi worldwide chief executive Kevin Roberts revealed yesterday he had signed a five-year contract with Publicis as a condition of the merger between the two advertising agencies.

He was speaking on his way to a festival in Cannes, where Saatchi & Saatchi has won a gold award for its work for the Auckland City Council.

Mr Roberts, who lives part-time in Auckland, said Saatchi would maintain its independence in the merged company.

On Tuesday, Paris-based advertising agency network Publicis agreed to pay nearly $US2 billion for London-based Saatchi & Saatchi in a deal that will create the world's fifth largest advertising agency.

In recognition of Saatchi's strong financial performance of the past three years, Saatchi's finance head, Bob Isherwood, and top creative director, Bob Cochrane, have also signed five-year deals with Publicis, but other Saatchi figures reportedly have not.

A source close to Saatchi said the deal had been conducted in total secrecy, with Mr Roberts first discussing it with Publicis Group chief executive Maurice Levy four months ago.

The offer from Publicis was eventually set at a requested 5 ($15.70) a share, representing a 51 per cent premium over the closing price on the day before it was learned that Saatchi was in talks with an unnamed party.

Mr Roberts sent a memo to staff one hour after announcing the deal, saying he was "seriously pumped" about it and clients such as Proctor & Gamble, Toyota and General Mills were very positive.

"I have ... been worried about the future. The communication world has been consolidating rapidly into three tiers ... second division [being] Saatchi & Saatchi, Cordiant, Grey and True North ... Why would global clients choose a division 2 campaign?

"Tough questions ... [but] now [our clients] are very happy."

The communique was signed "Your fearless leader, KR."

It said Saatchi would bring Publicis access to critical mass in Saatchi's key markets of the United States and China. "It'll be great to be part of a family that wants us, loves us and believes in us."