Andersen Worldwide has hit its Andersen Consulting unit with a $14.6bn legal counterclaim, the price it puts on the consulting arm achieving its independence from auditing and accountancy division Arthur Andersen. Andersen Consulting made its break for freedom earlier this year (CI No 3,713), demanding $650m in transfer payments and $150m in compensation from Arthur Andersen, which it said contravened the US Securities and Exchange Commission agreement filed by both companies in 1990, staking out consultancy as Andersen ConsultingÆs territory.
Andersen Consulting is desperately trying to repudiate the counterclaim, saying that the 1989 memorandum which covers the buy-out fee is not relevant. The consulting firm claims that its business is being undercut by Arthur AndersenÆs diversification into consulting.
Arthur Andersen seemed to offer a tentative rapprochement late last week, when Jim Wadia, AAÆs global managing partner, spoke about trying to keep the consulting arm under the Andersen umbrella. But Andersen Consulting, responded only by saying that it had voted for legal action and would let the lawsuit run its course.
The developments come in the light of the overall companyÆs strong financial results with 17% growth in revenue. Arthur AndersenÆs 19% revenue increase outstripped the 16% expansion of its consulting sibling, and the accountancy firmÆs consultancy figures, showed 36% growth, numbers which would seem to back Andersen ConsultingÆs arguments.
