Euro RSCG Expected to Win LG European Account

Negotiating Contract for Electronic Marketer's $80 Million Assignment

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LONDON (AdAge.com) -- LG Electronics is about to award Havas-owned Euro RSCG London its newly consolidated $80 million pan-European account, with sibling MPG handling media, according to agency executives familiar with the pitch.

Euro RSCG beat WPP Group's Young & Rubicam and two Publicis Groupe networks -- Saatchi & Saatchi and Leo Burnett -- and is negotiating a contract with LG.

Executives at LG did not return calls.

The Korean manufacturer of cell phones, TV, video, home appliances and computers formed LG Electronics Europe six months ago in an effort to make a patchy brand image more consistent across the region. Previously, each country reported directly to Korea and chose agencies locally.

Until recently, WPP hoped to make LG Electronics a global client using different WPP networks. In 2002, WPP bought a 36% stake in LG Ad, LG's in-house agency and Korea's second-largest shop, and has picked up other LG work around the world, including U.S. business at Brand Buzz, a unit of Young & Rubicam. During Samsung's global pitch last year, WPP's stake in LG Ad raised a conflict issue, but WPP won the business anyway.

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