The Philippines' leading accounting firm said today it has dropped its affiliation with US firm Arthur Andersen.
Sycip Gorres Velayo and Co. (SGV) said it signed a memorandum of understanding towards "combining (our) practices" with another major accounnting firm, Punongbayan and Araullo, the current local affiliate of Ernst and Young.
This is being done "with a view to... affiliate with Ernst and Young's worldwide network," an SGV statement said without mentioning the embattled accountancy firm of Arthur Andersen.
Yesterday ireland.comreported that merger talks between KPMG and Andersen in Ireland were making "good progress".
Andersen is currently struggling for its survival in the United States, where it is under indictment for obstruction of justice in connection with the failure of US energy trader Enron last December.
Since then Andersen has lost several of its largest clients and has seen its foreign units rushing to merge with rivals such as Ernst and Young, KPMG, PricewatherhouseCoopers and Deloitte and Touche.
The combined Philippines firm, under the name of Sycip Gorres Velayo and Co., is expected to be in place by July, subject to due diligence and final approval by the partners, the statement said.
AFP