Posted on 03/28/2002 1:01:01 PM PST by Tumbleweed_Connection
Senior partners of Arthur Andersen LLP held a nationwide closed-circuit video conference Thursday to chart a survival strategy for the embattled accounting firm under federal criminal indictment for obstruction of justice in the Enron Corp. scandal.
The firm's 1,700 U.S. partners are choosing a new chief executive officer to replace Joseph Berardino, who resigned Tuesday, and a restructuring plan that could merge Andersen's foreign offices with its rivals.
Asahi & Co., Andersen's Japanese partner, Wednesday said it would join KPMG International. Deloitte Touche Tohmatsu reportedly is interested in acquiring Andersen's tax consulting business.
The Financial Times reported Thursday that Andersen may cut up to 6,000 jobs, or 20 percent, of its 28,000 U.S. employees, by next week because of the loss of more than 80 clients since Enron's bankruptcy in December.
Food-service marketer Sysco Corp. and the New Jersey Casino Control Commission became the latest large clients to drop Andersen on Wednesday.
Andersen has about 85,000 employees worldwide.
The teleconference was led by Larry J. Gorrell, managing partner at the Chicago headquarters, who replaced Houston-based Terry Hatchett two weeks ago as head of Andersen's North American operations.
Industry experts said many of Andersen's highly trained staff likely would be offered positions at other auditing and professional services firms.
Top partners were considering a long-shot rescue plan for a seven-member independent board headed by former Federal Reserve Board Chairman Paul Volcker to replace senior management and give the 89-year-old firm a chance to reorganize. Volcker has proposed separating Andersen's auditing services from its tax advice and consulting arms and Friday called on top executives to step down.
Andersen Worldwide's global governing board is scheduled to meet on Tuesday and may announce an interim successor to Berardino.
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