Andy Law, managing director of Chiat Day in London, is understood to be looking for funding to buy out the agency.
Law’s options include seeking full backing from another agency, a course which appears unlikely given his desire to retain his independence from TBWA. He could also strike a deal giving a minority holding to another agency and raise money independently to buy-out the remainder of the business. There is a suggestion from agency sources that funding for a deal is being sought from a “top six” advertising agency.
For the moment, Chiat Day’s London arm is to remain a standalone agency and will not immediately be integrated into TBWA, says TBWA London chief executive Alasdair Ritchie.
“We are letting the dust settle and giving them time to think about what they want to do”, admits Ritchie, who adds that the London business was not central to the deal.
Chiat Day’s biggest UK business is Midland Bank. The bank is thought to be angry at the prospect of Chiat Day merging with TBWA because of a possible conflict with its Direct Line Insurance account.
Chiat Day also has valuable accounts with Boots No 7 and Coca-Cola’s new product Fruitopia.