Arthur Andersen and Andersen Consulting go to Court to Split Firms

Arbitration hearings began yesterday in New York for Arthur Andersen [1] (AA) and its sister firm, Andersen Consulting [2] (AC), to permanently make AC an independent firm.

The hearings are the result of a two-year disagreement, and the latest court appearances with the International Chamber of Commerce (ICC) are expected to take up to two weeks.

AC claims its sister firm violated a partnership agreement five years ago when it began a consulting services unit in direct competition against the Big 5 firm.

Among those expected to testify is former chairman George Shaheen.

A decision from ICC magistrate Gambia is expected in early 2000.