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Ernst & Young to acquire Andersen's India operations

Ernst & Young is acquiring Arthur Andersen's operation in India, a spokeswoman for the Big Five accounting firm told Reuters on Friday.

Ernst & Young has called a press conference at 1500 IST in Mumbai to announce details of the acquisition, the spokeswoman said. She declined to provide further information.

Andersen, a Chicago-based Big Five accounting and consulting firm, faces trial beginning on May 6, charged with obstructing justice by allegedly destroying thousands of records relating to bankrupt energy trading giant Enron Corp.

A flurry of civil lawsuits have also been filed against Andersen by investors and ex-employees who lost billions of dollars from Enron's bankruptcy, threatening the financial collapse of Andersen, prompting many clients to take their business elsewhere.

Andersen has lost more than 200 blue-chip clients, including pharmaceutical giant Merck&Co and Rupert Murdoch's News Corp, causing many Andersen's overseas affiliates to jump ship.

Ernst & Young has struck deals to absorb Andersen's operations in a number of countries around the world in recent weeks, including France and Switzerland, as well as Andersen's UK corporate restructuring practice.

It is also taking over the Andersen operations in various East European, Latin American and Asian countries.

Ernst & Young currently has more than 1,000 employees and offices in seven major Indian cities -- New Delhi, Mumbai, Kolkata, Bangalore, Chennai, Hyderabad and Pune.

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