Anderson UK to join forces with Ernst & Young

Andersen UK's corporate recovery practice is to join forces with rival Ernst & Young.

Andersen UK, the British arm of the global accountant, has already agreed to merge with rival firm Deloitte & Touche.

But Andersen now says the corporate recovery practice will not be included in that deal, and will instead join Ernst & Young.

UK managing partner John Ormerod says: "This is a good deal for our corporate recovery practice.

"The two businesses are highly complementary and this brings together two strong teams."

But he stresses that the announcement will "in no way" affect the Deloitte & Touche deal struck earlier this month for the rest of the business.

An Andersen spokeswoman adds that Deloitte & Touche did not want the arm because there were too many overlaps with its own practice.

All of Andersen's non-US operations are seeking to break away from the American business after it was rocked by the Enron scandal.

Andersen's UK corporate recovery practice has 10 partners and 200 staff.