BREAKING NEWS: Andersen Australia exits KPMG deal
Another Andersen national partnership withdrew from the firm's merger talks with KPMG tonight when its Australian firm said it was pulling out of the proposed deal.
The decision is another blow for Andersen Worldwide. Having announced its non-US offices would be seeking to merge with KPMG it has seen PriceaterhouseCoopers acquire Andersen’s Hong Kong and China offices while Ernst & Young picked up its Russia partnership. There are now fears the whole deal could collapse.
Andersen Australia is yet to determine is future but said it was unable to particpate in a merger with KPMG because of litigation surrounding insurer HIH where Andersen was auditor and KPMG liquidator.
In a statement tonight Andersen Worldwide said it was ‘disappointed’ at the decision. ‘They cannot engage in talks at the moment because of the HIH issue,’ added an Andersen spokesperson in London. ‘It was a mutual decision taken by Andersen and KPMG.’