I want to place a jpeg graphic in illustrator without a white box

Hi
I have received a logo from another company for a flyer in a jpeg format. I want to place it in illustrator without a white box around the actual graphic as I am placing it on a coloured background.
I am able to remove the white background using photoshop, however whenever I File>Place or cut and paste the photo as an eps. psd., tif or jpeg, the white background returns. What I am doing wrong?

You need to use a format that supports transparency. JPEG files do not ever support transparency. Open the JPEG in Photoshop and save as PSD. Use Photoshop to create the transparency by either double-clicking on the Background layer and removing the white opaque areas or adding a clipping mask. You can then place the PSD file into Illustrator with transparency intact. Look in Photoshop’s help files for more help with these tasks.

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