Andersen says KPMG talks continuing

Andersen said today its merger talks with KPMG would not be derailed by the decision of partners in China, Hong Kong and Russia…

Andersen said today its merger talks with KPMG would not be derailed by the decision of partners in China, Hong Kong and Russia to make alternative tie-ups.

Andersen's non-US divisions have committed themselves to talks with KPMG as they seek to break away from the US business, tainted by the Enron scandal.

Andersen has been charged with obstruction of justice for shredding documents and destroying e-mails connected to failed energy giant Enron.

But plans to link with KPMG were complicated by yesterday's announcement by the Hong Kong and China offices that they were linking with PricewaterhouseCoopers.

READ MORE

Arthur Andersen in Russia has agreed to a tie-up with Ernst and Young.

In a statement, Andersen Worldwide said it "regrets the announcement by member firms in China, Hong Kong and Russia that they intend to pursue a combination with another firm".

It said all arms of the operation were "bound by certain obligations to Andersen Worldwide and its network of member firms. We expect member firms to continue to meet their obligations to Andersen Worldwide".

Earlier this week, Andersen's Asia-Pacific affiliates endorsed the plan to merge with KPMG.

AFP