BP Amoco merger may hit Andersens
Talks are underway over the future of the pioneering accountancy outsourcing arrangement between BP and Andersen Consulting, amid fears that it could be under threat by the mega-merger between BP and Amoco.
Andersens has done up to 90% of BP Exploration’s accountancy work since 1991 following a deal seen as fuelling an outsourcing revolution.
But with BP Amoco – whose 1998 results were expected to show a pre-exceptional profit of around $800m (#493m) yesterday – looking for radical savings, questions have arisen over its future.
BP Amoco and Andersens both said yesterday no decisions had been made and talks were continuing. BP also said it was too early to say how many finance jobs would disappear as BP and Amoco operations are merged. Chief financial officer John Buchanan, former BP finance chief, secured his position last August at the expense of his Amoco counterpart John Carl.