Although exact details of discussions were unknown, with more than one firm involved in discussions, the prospect of different practices or national offices being split off has become a serious option for the firm.
Andersen was said to be considering filing for ‘Chapter 11’ insolvency protection in the US, a route as yet untested for limited liability partnerships.
A massive hurdle to a merger or takeover would centre on how a rescuer could protect itself from any potential legal claims against Andersen, suggesting the US operation could be separated from the remainder of the global operation.
Spokespeople for E&Y and Andersen said they would not comment on speculation, while Deloittes issued a statement saying it was currently going through a ‘scenario planning exercise’.
However, a source at Andersen said the merger speculation was ‘meaty’.
There have been several precedents where firms have merged with different partnerships in separate countries. When Deloitte Haskins & Sells merged with Coopers & Lybrand in the UK, the rest of its international network teamed up with Touche Ross, later to become known as Deloitte & Touche.
On Monday, Paul Volker, hired by Andersen to review its business, said the firm’s audit arm should be separated from its consultancy practice.
Revenue and profitability growth in on the rise for CPA firms, found a survey from the American Institute of CPA’s and its subsidiary CPA.com
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Carter Backer Winter has acquired Edwards Financial Services, expanding its financial planning department
New growth opportunities in Aberdeen, North East Scotland, are being invested in by Grant Thornton