Andersen Consulting: A Frankenstein Monster?
Andersen now claims that since the beginning, AC has been planning to break away from its roots completely, while AC claims Andersen has been stealing its business. Who's right? Perhaps they both are.
It was always agreed that Andersen could continue to perform consulting services, for client firms with annual revenues under $175 million. Andersen claims AC stopped performing services for some of the higher revenue companies, thus resulting in Andersen needing to step up to the plate and provide services for some of its larger clients.
Meanwhile, AC is balking at the annual fee they have to pay Andersen when Andersen is undercutting them in bidding wars for performing consulting services.
It’s a mean and dirty battle, with a lot of money and the right to the name Andersen Consulting at stake. An international arbitrator, Guillermo Gamba, representing the International Chamber of Commerce in Paris, will soon decide the fate of the two firms. As for the possibility of father and son patching up their differences and working together again in harmony -- don't count on it.