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.