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FCB SET TO RETAIN HP BUSINESS

Had Been Expected to Lose Accounts After Compaq Merger

Published on .

NEW YORK (AdAge.com) -- Hewlett-Packard Co. is starting to assign agency duties following its recently completed acquisition of Compaq Computer Corp.

Interpublic Group of Cos.' Foote, Cone & Belding Worldwide, New York, which has been the agency for Compaq, to continue its relationship with the tech marketer, an executive familiar with the matter said.

FCB's FCBi interactive unit handles an estimated $75 million in alliance partnerships for Compaq with Yahoo!, Walt Disney Co., AOL Time Warner and others.

Interpublic's DraftWorldwide, a Compaq agency, is also "in contention" to handle HP's direct-marketing business, executives said.

FCB had been expected to lose most of its Compaq business following the HP-Compaq merger.

HP, headquartered in Palo Alto, Calif., declined to comment.

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