[Rio de Janeiro, Brazil] In Brazil, WPP Group is merging Bates with Young & Rubicam
. The new Y&R
Brazil will be 50% owned by WPP and 50% by the local admen who controlled 50% of the former Newcomm Bates Group; the other half was owned by Cordiant Communications Group. Newcomm Bates CEO Roberto Justus becomes CEO of Y&R Brazil. In client reshuffling, Wal-Mart is leaving due to a conflict with retail giant Casas Bahia, a Bates client. Y&R's Citibank business moves to WPP's Wunderman
unit due to conflict with Bates' local bank client Bradescon. Bates' Nextel client moves to Dez Brasil, in which WPP has a minority stake, because Y&R handles Spanish telecommunications giant Telefonica. Molson's Kaiser beer left Bates before the merger.