Media: Perspective - Is the clock ticking on a Universal and Initiative merger?(Universal McCann )

Last week's news that the Interpublic Group agencies Universal McCann and Initiative had lost the General Motors pan-European media account was a massive blow for IPG, hot on the heels of Universal's loss of the gigantic US GM business last year.

The estimated pounds 400 million account is moving into Aegis Media, apparently after disputes over contracts between Universal - which holds the account everywhere in Europe except the UK - and GM's headquarters in Germany.

This leaves little comfort for Initiative, which holds the pounds 60 million Vauxhall UK and the pounds 14 million Saab UK accounts. It has done sterling work for GM for 17 years, through Lowe Howard-Spink and Western International Media. Initiative's chief executive, Jerry Hill, was apparently informed by telephone that the business would be moving without a pitch. The vagaries of international client relations show scant regard for the hard work of a local agency and the unsung heroes, such as Initiative's managing director, Garry Birtles, who has nurtured the Vauxhall business for years.

The switch to Aegis has potential implications for the future of IPG Media. How long, some observers ask, can IPG continue to justify operating Initiative and Universal as separate networks when both have lost some large chunks of business in recent years? Even more significantly, it could be just a matter of time before such an account loss triggers a break-up or takeover bid for IPG. Perhaps this won't be the occasion but the vultures will be circling.

Turning back ...