Accounting company Arthur Andersen is negotiating to sell itself to Deloitte Touche Tohmatsu, according to reports in the New York Timesthis morning.
The talks between the two big accounting firms are believed to have begun last week, about the same time Andersen learned it faced potential indictment on obstruction of justice charges in the Enron investigation.
Terms of the potential deal with Deloitte are still unknown and no decision has yet been reached on whether Andersen would be sold whole or in pieces, according to sources involved in the talks, the New York Timesreported.
The report follows the news on Saturday that the US Justice Department is considering bringing criminal charges against the firm for its role in the collapse of Enron.
In addition to confronting potential fines from criminal charges, Andersen is also facing possible regulatory action by the Securities and Exchange Commission as well as legal actions from companies and individuals hurt by Enron's collapse.
Enron, the Texas-based energy company, was one of Andersen's largest clients. Andersen approved financial statements that Enron ultimately said were unreliable.