Andersen Signs Deal to Send Tax Partners to Deloitte & Touche
Troubled accounting firm Arthur Andersen LLP has signed an agreement with Deloitte & Touche LLP in which a "significant" number of Andersen's U.S. tax partners and professionals will join Deloitte, Andersen announced Thursday.
The memorandum of understanding has an anticipated closing date of as early as April 30. Terms were not disclosed.
Andersen's survival has been at stake since its federal indictment last month on an obstruction of justice charge in connection with its audit of collapsed energy trader
Enron
.
About 25% to 30% of Andersen's 28,000 employees in the U.S. work for the tax group,
WSJ.com
reported.
"This transaction is fully consistent with our commitment to move quickly on the Andersen reforms initiated by
former
Federal Reserve
Chairman Paul Mr. Volcker," said Larry Gorrell, managing partner of Arthur Andersen.
"While our firm will retain appropriate tax expertise in a manner consistent with these reforms, Deloitte will provide a significant number of our people with continuing career opportunities and our clients with continued quality service from recognized and respected professionals," he said.
"Our clients, partners and employees have been and will remain our priorities through this process of reforming and rebuilding Arthur Andersen, LLP as a firm focused on quality auditing," Gorrell said.
