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PwCC Names New CEO, MBO Rumors at Deloitte

Posted by accountingweb on Jun 3 2002 331 printer friendly
It's no newsflash that PricewaterhouseCoopers and Deloitte Touche Tohmatsu are both taking steps to separate their consulting arms. But two recent developments took some industry observers by surprise.

PwCC Names Greg Brenneman CEO

PricewaterhouseCoopers Consulting (PwCC) announced [1] the appointment of Greg Brenneman, the former president of Continental Airlines, as its new chief executive officer (CEO). Mr. Brenneman is PwCC's third CEO in six months. He will take the helm of the group immediately, guiding it through an initial public offering (IPO) and name change scheduled for the summer. He replaces Tom O'Neill, who will become PwCC's chairman. Mr. O'Neill [2] was appointed CEO in January 2002, replacing Scott Hartz.

Mr. Brenneman brings considerable expertise in turnarounds and restructurings. For six years, as president and chief operating officer of Continental Airlines, he helped lead the carrier from many years of losses to renewed profitability and prominence. Currently, Mr. Brenneman is chairman and CEO of TurnWorks, Inc., a private equity firm he founded in 1994. Prior to Continental and TurnWorks, he was a vice president at Bain and Company, Inc., where he specialized in corporate turnarounds.

Deloitte Partners May Discuss MBO

Deloitte Touche Tohmatsu announced in February that it would separate Deloitte Consulting. It has not yet disclosed how it will separate the businesses, but Deloitte's global partners are scheduled to discuss the firm's future at their annual meeting in San Francisco on June 3, 2002.

According to a report [3] in the Sunday Times, Deloitte, which is being advised by Goldman Sachs Group Inc. and Credit Suisse First Boston, has decided against selling the business to another company or to the public. The Times said the partners would hear a proposal for a management buyout (MBO) of the business valued at $3.1 billion. A Deloitte spokesperson was not immediately available for comment.

-Rosemary Schlank

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Links:
[1] http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/06-02-2002/0001738898&EDATE=
[2] http://www.accountingweb.com/cgi-bin/item.cgi?ap=1&id=70430&d=pnd&dateformat=%25o-%25B
[3] http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_bfgcgi_content99.ht&s2=ad_right1_topfin&bt=ad_position1_topfin&middle=ad_frame2_topfin&s=APPpaHBWQRGVsb2l0
[4] http://www.accountingweb.com/tags/firm-news
[5] http://www.accountingweb.com/tags/consulting