1. KPMG (1 x 32)

1. KPMG (1 x 32)

KPMG eying Andersen consulting units

JP/
KPMG Consulting seeking Andersen consulting units

Bill Rigby
Reuters
New York

KPMG Consulting Inc. said on Wednesday it offered to buy up to
23 of Andersen's business consulting units in the United States
and overseas for US$284 million, as the beleaguered accounting
firm sells operations to raise cash.

The deals -- which will all have to be negotiated separately
with each practice -- should close by mid-Summer, KPMG Consulting
said, and should add to earnings by this time next year.

"It's a once-in-a-lifetime opportunity to get some real
value," KPMG Consulting Chief Executive Rand Blazer said on a
conference call with analysts and media. "If you look at the
price and you do some math, you can see we have some good room to
play."

The Andersen consulting units included in the deal raked in
net revenues of about $1.4 billion in fiscal 2001. That will be a
huge boost to KPMG Consulting, with about $2.9 billion in annual
revenues.

The operations in the deal represented about 15 percent of
Andersen's $9.3 billion in worldwide revenues in the last fiscal
year, making it the third-largest business area for the firm.
Auditing was Andersen's main business last year, with $4.3
billion in worldwide revenues, followed by its tax business with
$3 billion.