Bates PanGulf Public Relations and Burson-Marsteller to end exclusive partnership in Middle East

The two companies - both affiliated with WPP - reached the decision after reviewing the implications of BPG PR's significant growth over the past 18 months and its increasing importance in the integrated service offering of its parent, the Bates PanGulf Group, as well as B-M's needs to focus on its own strategy in the Middle East.

B-M is part of the Young & Rubicam Group which is wholly-owned by WPP. Bates PanGulf Group is a joint venture with WPP.

Mr. Bill Rylance, President & CEO of Burson-Marsteller Asia-Pacific and Middle East said: "Burson-Marsteller's strategy in the Middle East obviously requires that we prioritise our opportunities. We require a flexibility which is not available to us if we remain part of an integrated service group in the Middle East. We have had a tremendous working relationship with BPG PR - and will continue to service some key clients together - but, unfortunately, conflicts would become increasingly difficult to accommodate within BPG's integrated offering. BPG is a fine firm with a great future."

Mr. Abdulla Majed Al Gurair, Chairman of Bates PanGulf Group, said:

"It is somewhat ironic that the growth of our business, including BPG PR, has led us to this conclusion - but the reality is that both BPG and B-M have key clients which they have to continue to serve and grow. Our PR business saw revenue growth of over 47 per cent in 2005 and we need to be structured to continue to build on that success."

Mr. Avi Bhojani, Group Chief Executive of Bates PanGulf Group, said: "Our stated mission is to build significant competitive advantages for our clients through disruptive and integrated marketing programs. This necessitates entrepreneurial independence coupled with our ability to choose and pick our partners out of the WPP portfolio that would work best for our clients locally and regionally. That said, both BPG and B-M are united by WPP and we will continue to collaborate as and when appropriate."

Mr. Rylance said that B-M would now consider other options for ensuring it has the appropriate presence in the Middle East. He added that the decision will not affect existing shared client relationships which will continue to be serviced by BPG PR and B-M.