Havas rehaul leaves Grayling fate hanging

The news comes in the wake of a 19 per cent drop in revenues for the first half of 2003, prompting a retaliatory strategic overhaul by the marketing services giant.

According to Grayling group chief executive, Nigel Kennedy, a decision about the consultancy's future had yet to be reached at time of press.

"The companies that are currently part of Specialised Services (of which Grayling is one) will either be integrated into Euro RSCG or MPG, or will leave the Havas group. Grayling is currently in constructive discussion with Havas about these options."

In relation to Grayling's global performance, he flagged Asia as "tending to perform better, but the market there is also difficult". "The PR market is very tough in Europe at the moment and fairly tough in the US. Sars, the Iraq war and terrorism are all taking their toll," he said.

Despite the appointment of AllisonWright as new Grayling China MD, Kennedy remained circumspect.

"We will proceed cautiously and maintain a constant watch on the (China) market."