Andersen's RI unit fails to reach merger deal with E&Y
Andersen's RI unit fails to reach merger deal with E&Y
Moch. N. Kurniawan, The Jakarta Post, Jakarta
The Indonesian unit of global accounting firm Arthur Andersen has failed to come up with a merger deal with Ernst & Young, according to a senior official at Ernst & Young.
Ernst & Young official John B. Arnold said that the merger talks were terminated on Tuesday, saying only that a merger would not be mutually beneficial for both companies.
"Both have decided that they can pursue their business interests better without combining," he told The Jakarta Post and Investor Indonesia after the launching of Ernst & Young's Entrepreneur of The Year Award.
Officials from Prasetio, Utomo & Co., as the Indonesian unit of Arthur Andersen is called, could not be reached for comment.
It was reported earlier that Prasetio, Utomo & Co. was in talks with Ernst & Young to merge their operations.
Andersen affiliates around the world have been seeking a merger with other major accounting firms as the fate of Andersen's headquarter in Washington is now unclear after its involvement in the collapse of energy giant Enron Corp.
Andersen in Washington faces criminal charges over document shredding, billion-dollar lawsuits and an exodus of prestigious clients.
Andersen affiliates in Singapore, New Zealand and Australia have signed deals to merge their operations with Ernst & Young.
The Thai units of Andersen Worldwide and KPMG International have reached a preliminary agreement to merge their operations in the country.
Andersen affiliates in Hong Kong and China merged with PricewaterhouseCoopers.
Arnold, however, said that there was still a possibility that merger talks with Prasetio, Utomo & Co. would be reopened next year.
Although analysts said that it was important for Prasetio, Utomo & Co. to seek a merger deal with one of the four accounting giants to give certainty to clients following the Enron debacle, company managing partner Soemarsono S. Rahardjo said that Arthur Andersen's local unit was not losing clients, despite the scandal.