Kay quells talk of MDK break-up

The speculation comes in the wake of reports last year that MDK was tipped for integration into its sister PR agencies at WPP. However, Robert Kay, CEO of Batey -- MDK's direct parent within WPP -- acted to quell speculation surrounding a breakaway, following a meeting in Bangkok with MDK group CEO Michael de Kretser, Thailand CEO Danai Chanchaochai and Singapore CEO Michael Rose. "If there were a breakaway agency, then clearly we would take a fairly dim view and would resort to appropriate means, per the agreements we have in place, to secure key staff and clients," said Kay. The possible integration of MDK into Burson-Marsteller was first mooted in 2005 (Media, October 14), although Kay refused to disclose whether this remained an option, or whether de Kretser would remain in his current position. "Given the industry speculation, certain facts were recently presented to the management of MDK in order that they can accurately communicate with clients and staff," added Kay. "The void that was being filled with poison, misrepresentation and drivel has now been filled with fact." Rose declined to comment, while de Kretser did not reply to requests for comment. Burson-Marsteller regional president and CEO Bill Rylance, meanwhile, noted: "From our perspective, we've stepped back from the fray and we're unaware of the progress of discussions -- if any -- at the WPP level." Founded by de Kretser in Singapore in 1982, MDK had grown to become one of Asia's leading PR agencies and, as a homegrown player of some scale, was a rarity among its MNC peers. Its portfolio over the past three decades includes notable work for Singapore Airlines and Raffles Hotels & Resorts.