Rivals eye KPMG’s Europe consultancy

As KPMG Consulting Inc in the US considered a change of name to differentiate itself from its former parent, KPMG LLP, insiders have said there are a number of companies interested in acquiring its European consulting operations.

‘Our data room is very busy at the moment,’ one European source in the firm said, suggesting a number of IT consultancies were now interested in bidding for the practice.

An announcement on the future of the practice is expected in the near future.

KPMG Consulting Inc floated in the US last year, and has since acquired a number of other KPMG practices around the world, including Australia, but has so far failed to bring the Europeans on board.

Ernst & Young set the trend when it sold its consultancy division to Cap Gemini. Since then PricewaterhouseCoopers attempted to pull off a deal with Hewlett Packard but the IT giant pulled out following a collapse in its share price. Last month Deloitte & Touche was forced to announce its intention to spin off Deloitte Consulting in a reaction to market pressure following the Enron scandal.

Related reading