The World: Jakarta Initiative and Universal consolidated into IPG Media

Interpublic is set to consolidate the Indonesian media operations of Initiative and Universal McCann into one holding company, which will be called IPG Media. The move is thought to have been sparked by the loss of a key IPG local client, XL Telecom.

Sources revealed key management staff at Universal McCann had been offered jobs at Initiative and at another IPG operating company, DraftFCB.

Universal McCann's 18-strong workforce is understood to have received news of the decision on Friday. It is uncertain how many staff will be laid off.

The development comes after Universal lost its $30 million Bentoel cigarettes business to MEC last year. A Universal McCann spokesman said: "It is completely untrue that the office has dissolved."