KPMG's plans to merge with embattled accounting firm Andersen outside the United States are looking increasingly shaky as more individual partnerships mull deals with rival firms.
Ernst & Young, one of the big five global accounting firms, said it was currently in talks with Andersen partnerships in a number of countries.
"Some (Andersen partnerships) are talking to both (KPMG and Ernst & Young), we know in some cases they are talking to other firms too," Mr Bill Kimsey, Ernst & Young's global chief executive, said today.
"We find that Andersen partners generally feel they need to move very quickly and not all of them want to join KPMG. Some of them want choices," he added, but declined to give details.
Andersen Worldwide is seen as having no future as an independent firm after Andersen in the United States was indicted in connection with the collapse of US energy trader Enron. Andersen in the United States faces billion dollar lawsuits and has suffered a mass of client defections.
KPMG and Andersen revealed last week they were in talks to combine Andersen's non-US businesses, spanning some 80 countries.
But since then, Andersen's Hong Kong and China units have joined with rival PricewaterhouseCoopers, the largest of the big five global accounting firms, and Russia and New Zealand are to join Ernst & Young.
Today the Australian units of KPMG and Andersen ended talks on a merger because of a conflict of interest arising from their roles regarding failed insurer HIH Insurance.
Last week Andersen and KPMG Irish units confirmed they were in merger discussions.
KPMG and Andersen have started work on the merger, which they hope to have broadly complete by July and signed and sealed by October 1st. "Everything is still on track," an Andersen spokeswoman said.