TAKEOVER BID LA SEDA DE BARCELONACommunication Strategy

Situation

PCsXXI is a Limited Company owned by Gustavo Perez Carballo (20%) and Charles X Preslar (80%). PCsXXI launched last 27th of September 2002 a hostile takeover bid for 25% of La Seda de Barcelona shares. La Seda de Barcelona is an emblematic company in Catalonia. The news regarding the takeover bid provoqued an enormous scandal in the media. The offer was limited to acquire a minimum of 5% of the capital. The price offered by PCsXXI was 2€ per share. The operation of Preslar and Pérez Carballo had a guarantee of € 15 million of Citibank Spain. The takeover bid process finished 28/01/03 and now PCsXXI is the reference shareholder of La Seda de Barcelona with 13,68% of the shares.Strategy

EDELMAN media trained G. Perez Carballo and CX Preslar, both unknown in the Spanish entrepreneurial sphere. Both of them did not appreciate the different social, political and historical connotations of the company, closely linked to the Catalonian establishment. Edelman also wrote a confidential report about what means La Seda in Catalonia, history of the company, who is who in La Seda, weaknesses of the board members that had critizized our client… We developed this report with “added value” information provided by Alberto Torres, external adviser of Edelman Spain and a very relevant person in the executive board of Spanish Socialist Party.Edelman elaborated the Q&A Perez Carballo (PC) used. Edelman arranged the focus of the interview between Perez Carballo and Cinco Dias (second most important financial newspaper in Spain). We negociated with Cinco Dias the questions and they let us see the answers before published, therefore, we exposed Perez Carballo to the readers as a person perfectly capable to lead such an operation. Afterour message published in Cinco Dias, we arranged meetings with the rest of influential financial media in Spain. Results

The possitive approach coverage in Cinco Dias has had positive results and finally PCsXXI takeover bid has been successful and our client now controls 13,68% of the shares of La Seda.

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BANCO URQUIJOMedia RelationsMedia Training

Situation

Banco Urquijo, part of KBL is a private banking institution. With a history of 133 years it would be the “Spanish Cazenove”. It is probably the most traditional bank in Spain and now it is going through a difficult time because of the aggressive policy of competitors: SCH, BBVA and strong iternational players arriving: UBS Private Banking, Morgan Stanley… They have never had a proactive PR strategy. Prior to Edelman they worked with H&K only for press releases distribution.

Strategy

Edelman has slowly started to suggest the client more proactivity. By inviting journalists to visit the bank and to learn more about innovative products of Urquijo (Presentation of Urquijo Cooperación SIMCAV); with collaboration of Michael Henman, we have also suggested them how to present 2002 results (they where very bad. Net profit went down 40%). We explained the results to the number one Spanish news Agency, EFE, that put in their system our press release.Edelman suggested to promote in the media the opening of new private banking offices in the Canary Islands, we have also suggested them a “Mistery Shopper Program” in order to know more about the effectiveness of their task force.Edelman Madrid is also going to media train 12 significant people in the different areas of the bank.

Results

The media coverage has significantly improved by being more proactive. The profit fall of 40% has had very limited coverage because the media took the press release from Spanish News Agency, EFE with whom we have had a meeting to explain results.

DUPONTCommunication StrategyPanEuropean Strategy

Situation

DuPont is a 200 years old science company with a focus in chemicals, materials and energy. It is an enterprise that delivers science based solutions that makes a difference in peoples lives. With revenues in 2002 of $24 billion and 79.000 employees around the world. In Spain and Europe it is too associated with the chemical industry and our aim is to associate it with the science industry, much more rich and diverse. Edelman communicates DuPont´s efforts in sustainable development and R&D.

Strategy

EDELMAN has developed a strong PR Campaign to communicate DuPont´s achievements in launching innovative products such as Sorona. We have also communicated trhough a PR campaign the compromise with social corporate responsibility and sustainable development. Edelman Madrid has also established the “DuPont Science Award”, we are now in the 13th edition and it is rewarded as one of the most important scientific awards in Spain and Portugal. We also develop a national magazine on DuPont´s corporate issues “MásQueCiencia” that we send to a clients and prospects mailing list. We develop the same project on a pan-european basis: “MoreThanScience” the Edelman offices from London and Madrid work together with DuPont staff from Belgium, UK, Switzerland and Italy. We develop a monthly on-line newsletter that reaches the European political, business and scientific community.

Results

An internal study ordered by DuPont Europe, shows that Spain is one of the European countries in which DuPont has higher reputation. Due to an international policy the client was forced to work with Weber-Shandwick and after one year it returned to Edelman. The media coverage positions DuPont Spain as a science company concerned about the environment and sustainable development. The Merco Index, which is the Spanish monitor for corporate reputation always positions DuPont Spain as one of the most desirable companies in which to work. With this client the idea of mutual trust=mutual benefit is a reality.

AEGE (Spanish Association of Energy Great Consumption Enterprises)Public Affairs

Situation Debate around the liberalization of the electrical sector. In 2007, the energy will be bought freely in Europe Negotiation on the price of the electrical tariffs in Spain for great Spain consumers Spain would be isolated if energy prices surpass the rest of Europe

Objectives To develope a stable relationship with the regulators and the Government in order to include AEGE demands in decision making process To contain the increase of the price of the electrical tariffs for the great consumers.

Strategy Creating pressure upon the Public Administration interlocutors who can influence in the surroundings of the Ministry Cabinet. Increasing awareness in opinion leaders of all the affected sectors and in the public opinion in general about the consequences of the loss of

competitiveness of the AEGE members (almost the totality of spanish industrial sector).

Tactics Identification of actors with influence capacity on the Administration (Ministries, Councils, unions, etc.). Plan of visits to possible interlocutors with direct or indirect influence in the Cabinet. (local and regional public Administrations, political groups of the

Senate and the Congress, etc.) Establishment of a continuous information channel with mass media. Proactive media office: To generate coverage in mass media on the social and economic consequences of a possible crisis that affects the great consumers of energy, members

of the AEGE:- Loss of competitiveness - lack of Investments - Downsizing..

Results Meetings with regulators and Public Admistración at the maximum level (Secretary of State of Energy, National Commission of the Energy, etc) Great coverage in national and regional press

INTERGEN (Shell-Bec htel Venture):Generate Political Momentum for Positive EID

Situation

Obtain positive EID in 2003 for the building of a 1200 MW CCGT in Valencia Gain support of Valencia´s government and of central government for the authorization of the project in Catadau

Strategies

Identify the right interlocutors in the central government, in Valencia, political parties and trade unions and define who and how can influence them Define the lines of argument Define timeframe to place the issue on the actors’ political agenda Approach actors to persuade them round to our position

Results

The Secretary of State of Energy, J. Folgado, publicly announced his support for CCGTs and for InterGen´s project CNE (Spanish Energy Comission) publicly announced support for the project EID procedures were speeded up to achieve "green light" in March 2003 At present moment all the permissions obtained (Published in the BOE, Oficial Governmnet´s Bulletin)

REPSOL YPFCrisis/Repsol/Tools Training and Community Relations

Situation

EDELMAN was hired to provide actions to improve the response to crisis situations.We should start by providing Repsol with materials and tools to stop the first impact of a crisis and train their Speakers on media and crisis communications.

Strategies To provide Repsol with a set of tools to be able to manage any crisis situation. To train Repsol management to handle crisis situation in order to minimize the negative impact. To motivate the increase of community relations. To consolidate as the crisis consultants to help Repsol managers to manage real time crisis situations

Tactics Crisis Audit to better know Cases and structure of the company (Who decide?). Crisis Manual. Media and Crisis training. Implementation of the project in Latin-America. Community relations in Spain and Worldwide

Results Few crisis situations had been managed with success since we start working for the client. Community relations have created a positive image that increase the mobility in crisis scenarios. We consolidated as Crisis Consultants for Repsol. They always contact us for these purposes.