BA & MGN Move Out Of Saatchi

9.30am – Shares 97p down 10.5p. Saatchi and Saatchi advertising were dealt a further, if somewhat expected, blow late yesterday when both Mirror Group Newspapers and British Airways pulled out of the agency – the accounts were estimated to be worth around £120m. Dixons (worth £40m) looks set to follow in their footsteps.

Maurice Saatchi has ended speculation about his future plans by announcing the establishment of a new agency – temporarily entitled The New Saatchi Agency. He will be joined in the venture by Sinclair, Muirhead and Kershaw – all of whom resigned on Tuesday of this week in support of Mr Saatchi. Charles Saatchi is not expected to join the agency at present. The agency start-up costs will be met by Maurice Saatchi. The two main problems facing the new agency are firstly the contractual constraints placed on the ex-Saatchi employees with regard to involvement with new agencies and poaching clients, and secondly the fact that the new agency will not have any global connections.

Replacements for outgoing staff at Saatchi and Saatchi come in the form of Adam Crozier – promoted from media director to joint chief executive along with Tamara Ingram.

Saatchi shares at 9.30am stood at 97p down 10.5p.