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TALKS BREAK DOWN BETWEEN WPP AND Y&R, BEGIN WITH PUBLICIS

London-based WPP Group plc has announced that talks with New York-based Young & Rubicam surrounding a possible merger between the two have been terminated. However, according to a report in the National Post, Y&R is now talking with Paris-based Publicis regarding a merger. The report says the deal with Publicis would value Y&R between $5-billion and $5.5-billion and leave the company with 40% control of the combined group. Further details, such as management roles, have not yet been decided. Also, a number of possible client conflicts that would arise as a result of the merger have yet to be addressed.

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