Tokyo-based Dentsu and Chicago-based Leo Burnett are talking about starting a global strategic alliance similar to the one that Dentsu already has with Young & Rubicam.

The deal calls for Dentsu to buy a 10% stake in Leo Burnett with the option to increase its share to 20%.

Both agency networks have made it clear that they want to remain separate and distinct and are not interested in merging. The deal gives Dentsu a way to provide its clients access to a third global agency network, while Burnett gets funds to fuel its acquisition drive.

Leo Burnett has nearly 200 operating units in 75 countries, including 85 full-service ad agencies. The company estimates its 1998 billings at us$6.61 billion.

Dentsu has 81 offices across 34 countries in Asia-Pacific, the Americas and Europe. Its 1997 billings were us$14.47 billion.