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Vodafone and 3 merger puts pitches in question

vodafoneVodafone and 3 are to merge their Australian operations, in a move which potentially throws the outcome of live advertising and media pitches for the brands into question.  

This morning’s announcement – subject to shareholder approval – would see Hutchison’s 3 disappear as an Australian brand while Vodafone would become a much bigger challenger to Telstra and Optus.

Owner Hutchison Telecom was in the early stages of a pitch for 3’s advertising account, which had been held by Campaign Palace. However, a source close to the process said that as far as he knew it would still continue.

And Vodafone had appeared to be on the verge of making a decision on its media business. A shortlist of incumbent Ikon, PHD and Universal McCann, presented early this year and had been expecting a verdict within days.

Although unlikely, the move may slightly open the door to the Mitchell Communication Group, which currently buys and plans media for 3.  When asked if Mitchells would try to get onto the list now, CEO Stuart Mitchell told Mumbrella: “We’ve certainly got to consider it. It’s interesting. We’ve got someone in there now.”

Meanwhile, Clemenger BBDO holds the Vodafone business, having won it last September.

A spokesman for Vodafone told Mumbrella that it was “business as usual” and that this would include its media review.

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