KPMG Plans Acquisition of UK Cousin
Partners from the UK firm of KPMG Consulting stand to earn a fortune if the US firm goes ahead with a plan to buy its UK associate, according to England's Sunday Times.
The deal, which could happen within the next six months, would put KPMG Consulting in a strong position as the higher end of the market consolidates. There are also natural synergies between the two groups, which have developed in parallel, according to a report on our sister site, AccountingWEB-UK.
KPMG Consulting Incorporated (KCI) floated on Nasdaq earlier this year, but its shares have dipped from their starting price of $18 to a lackluster $14.
Although the unification of KCI with its UK cousin would be a logical fit, there are still doubts over how the firms' individual partners would divide the spoils. The sale could be worth in the region of $1.4 million.
Ernst & Young partners received up to $725,000 each from the firm's sale of its consultancy wing to Cap Gemini last year.
Over 1,000 KPMG partners are reportedly to be offered shares in the new global consultancy, as the economic gloom over the sector means the business cannot afford a cash-plus-shares deal.
The US firm cut 5% of its staff in April because of the downturn.