FCB May Lose $140 Mil. Compaq Biz After H-P Deal

NEW YORK—Hewlett-Packard’s $18.4 billion acquisition of Compaq is expected to result in a consolidation of ad duties. Sources indicated that H-P agencies Goodby, Silverstein & Partners and Publicis & Hal Riney, both in San Francisco, will likely gain business at the expense of Foote, Cone & Belding in New York, which works for Compaq. In fact, FCB already has “adjusted” its projected numbers for 2002, “realizing there’s a chance of [the agency] not going forward” with the brand, Interpublic Group CEO John Dooner told industry analysts last week. H-P and Compaq each spent nearly $140 million in measured media last year, according to CMR.

Bates and Optimedia Team Up

LOS ANGELES—Optimedia and Bates Media, the media arm of Bates, have entered into an “affiliation to increase leverage with dollars in the marketplace,” said Bates regional president of the Americas Bill Whitehead. Bates is owned by Cordiant Communications and Optimedia’s parent, Zenith Optimedia Group, is jointly owned by Cordiant and Publicis Groupe. The two partners will team up to negotiate national TV buys for the upfront. To steer the operation, Bates has named John Lazarus, svp/director of national broadcast operations at TN Media, to the new post of director of network relations for Bates North America.

Group to Sue Agencies, Federal Government

WASHINGTON—The Rev. Al Sharpton said his Madison Avenue Initiative will file a lawsuit May 13 in Federal District Court in Washington against prominent ad agencies and the federal government. Sharpton contends that unnamed agencies and the government have not paid minority contractors fair rates on federal accounts. His group cites noncompliance with an executive order signed by President Clinton that requires federal agencies to pay market rates [Adweek, April 8].

Cooperative Resigns From $50 Mil. Chrysler Review

DETROIT—Cooperative, one of five semifinalists for Chrysler Group’s $50 million multicultural account, has withdrawn from the review. “We just didn’t feel it was in our best interest to go forward,” said a representative from A Partnership, New York, an Asian-American agency in the Cooperative alliance. Cooperative also consisted of New York shops LaFinca Creativa and PFI Marketing. Other contenders for the account include alliances Array, PASS Urban Powertrain and SIP. A Chrysler representative said the four remaining agency groups will present credentials this week. A decision is expected by June.

News Roundup

D’Arcy Masius Benton & Bowles worldwide chief creative officer Lee Garfinkel has tapped John Russo, who worked with him on Subaru at Levine Huntley Schmidt & Beaver in 1979, as evp/ecd of D’Arcy New York. Russo joins Graham Woodall, also evp/ecd, as a second layer of creative management. …

Omnicom Group’s DDB New York has been awarded the Svedka Vodka business, which sources said was worth just under $5 million. Svedka, owned by New York-based Spirits Marque One, hired DDB to create the vodka’s first national ad campaign, expected to break this fall, said a DDB representative.