KPMG Consulting Moves Forward with IPO Plans
KPMG Consulting LLP is continuing its move in the direction of an initial public offering planned for early in 2001. The firm recently amended its SEC filing to include a price estimate on its shares.
The offering will net KPMG Consulting something in excess of $2 billion. Some of the proceeds will be used to repurchase stock from Cisco Systems which has decided to divest itself about half of its 19.9% holdings in KPMG Consuting.
Upon completion of the IPO, parent company KPMG LLP will be left with ownership of approximately 20% of the consultancy. It is expected that within five years the KPMG partners will have completely divested themselves of ownership in KPMG Consulting.
Analysts question the timing of the IPO due to the recent downturn in the stock market.
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