Andersen, KPMG executives try to rescue Asian merger<\/p>\n
Peh Soo Hwee, Reuters, Singapore<\/p>\n
Senior executives of troubled accounting firm Andersen huddled
\nfor a second round of talks in Singapore on Tuesday to salvage a
\nproposed merger with KPMG in Asia after several Andersen units
\ndefected to other firms.<\/p>\n
Sources close to Andersen said issues raised at the meeting<\/p>\n
included concerns about the KPMG proposal, discussions on the
\noptions available and a debate of whether a vote should be taken.<\/p>\n
KPMG was pressing to discover how many Andersen units would
\naccept its proposal, they said.<\/p>\n
Colin Holland, KPMG International's Brussels-based chief
\noperating officer, flew into Singapore, his second visit in as
\nmany weeks, to resume talks with Andersen officials from nine
\nAsian countries after the defections.<\/p>\n
\"All Asian units of Andersen are present at the meeting today
\nexcept for China, Hong Kong, New Zealand and Australia,\"
\nAndersen's Asia Pacific Area Managing Partner John Prasetio told
\nreporters milling outside a conference room at the plush Ritz
\nCarlton Hotel.<\/p>\n
Andersen is seeking a merger to ensure its survival as it
\nfaces litigation and criminal charges over its audit of collapsed
\nenergy giant Enron.<\/p>\n
The firm has said it was in talks with KPMG on a possible
\nmerger of their most important non-U.S. businesses.<\/p>\n
The Asia-Pacific merger of Andersen and KPMG would have
\ncreated Asia's largest accounting firm with about US$2 billion in
\nrevenues and more than 28,000 staff, company officials said last
\nweek.<\/p>\n
But Andersen's Hong Kong and China units have decided to
\ncombine with rival PricewaterhouseCoopers, while Andersen in New
\nZealand has reached a similar agreement with Ernst & Young.<\/p>\n
On Monday, the Australian units of KPMG and Andersen ended
\nmerger talks because of a conflict of interest arising from their
\nroles regarding failed insurer HIH Insurance Ltd.<\/p>\n
Andersen executives leaving the closed door meeting said
\nrepresentatives from various ASEAN nations as well as officials
\nfrom Japan and Taiwan were present.<\/p>\n
\"Everyone is in talks with KPMG. But South Korea, Thailand and
\nTaiwan are progressing further ahead in talks with KPMG,\" said
\none Andersen executive, who declined to be identified.<\/p>\n
\"We are focusing on the KPMG proposal. It is not healthy to
\nfocus on so many at the same time,\" he said.<\/p>\n
The Asian official said he will be flying to London for a
\nglobal Andersen board meeting on Thursday, where the 18 board
\nmembers including three from Asia will meet.<\/p>\n
He did not say what the board meeting would be about.<\/p>\n
Senior executives from 13 Asian units of Andersen had backed a
\nproposed merger with KPMG in the region after a two-day
\nconference in Singapore last Tuesday. But soon after the
\nconference, the proposed merger unraveled at the seams.<\/p>\n
One Andersen official said she was hopeful the rest of the
\nAndersen Asian units would go for the proposed merger with KPMG,
\nthough they were aware of ongoing discussions with other firms.<\/p>\n
\"We try to support the global deal, the merger with KPMG...but
\nit may not be 100 percent,\" said the official, who like many
\npeople at the meeting did not want to be identified.<\/p>\n
One executive said the meeting should end with some progress
\non a deal with KPMG, but said it was unlikely all the various
\nunits would decide on the matter.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/andersen-kpmg-executives-try-to-rescue-asian-merger-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}