E&Y snaps up Andersen business

ANDERSEN UK's corporate recovery practice is to join with rival Ernst & Young. The British arm of the global accountant has already agreed to merge with rival firm Deloitte & Touche. But Andersen said today the corporate recovery practice would now not be included and would instead join E&Y.

UK managing partner John Ormerod said: 'This is a good deal for our corporate recovery practice. The two businesses are highly complementary and this brings together two strong teams.' He said the deal would not affect the Deloitte transaction. Deloitte was not interested in the business as there were too many overlaps with its own. Andersen's corporate recovery practice has 10 partners and 200 staff.

All of Andersen's non-US operations are seeking to break away from the US business after it was rocked by the Enron scandal.