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Y&R lands Danone account
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May 12, 1998: 8:08 p.m. ET
Ad agency wins $250M account from French firm on the day it goes public
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NEW YORK (CNNfn) - Young & Rubicam Inc., the world's fifth-largest advertising agency, is expected to announce Wednesday it landed a $250 million account from the French food company that produces Dannon Yogurt.
It would be the second major account the agency has snatched away from its competitors in less than a year.
Advertising Age magazine, a Chicago-based trade publication, reported Tuesday that French food company Groupe Danone will consolidate its worldwide dairy account to the New York agency.
Danone previously had spread portions its dairy account across four agencies, including Y&R. The other agencies were Grey Advertising, Saatchi & Saatchi and the BDDP Group
The company's most widely recognized product is its Dannon Yogurt line.
Although a Y&R spokeswoman would not confirm the report, other sources inside the company say they've already received a memo on the news.
The news came as Young & Rubicam Inc. went public Tuesday, raising roughly $458.16 million, in the 16.6 million share offering. The company's shares (YNR) were up more than 13 percent for the day, closing at 28-1/16 and topping the Big Board actives list.
With the net proceeds, Y & R will pay down debt which was incurred to give its executives a 39 percent stake in the firm, and to buy pack a portion of the firm from venture capitalists.
Last August, Citicorp pulled its $500 million advertising account from three agencies and gave the unsolicited business to Y&R.
The bank, parent to Citibank, dumped WPP Group's J. Walter Thompson; True North Communications' Foote, Cone & Belding,; and Interpublic Group's Lowe Group, according to press reports.
The decision reportedly shocked the industry since no one expected Citicorp to pick just one agency.
-- by staff writer Shelly Schwartz
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Young & Rubicam
Dannon
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