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After US-based Foote, Cone & Belding (FCB) and Publicis of France established an international advertising alliance in May 1988, alliance leaders set out to merge offices in Europe. They were confronted with a particularly tricky situation in Germany, which, if handled poorly, could have harmed BMZ, a highly regarded agency in Dusseldorf that FCB had acquired six months earlier. The case looks at how alliance managers resolved the dilemma by forming a second agency network in Europe; how that network, which was composed of advertising agencies from six European countries, was working; and how agencies from different cultural backgrounds were dealing with diversity. May be used with 'FCB and Publicis (A): Forming the Alliance and (B): Managing Client and Country Diversity'.