Preliminary discussions for a merger of two of the nation`s largest public accounting firms, Peat Marwick and KMG Main Hurdman, were terminated Tuesday.
The discussions, which were being conducted by the firms` international arms, Klynveld Main Goerdeler and Peat Marwick International, began Sunday in Amsterdam.
A merger of the two accounting giants would have created the world`s largest public accounting firm. Peat Marwick`s revenues for the fiscal year ended June 30 were about $1.5 billion, and KMG`s for the latest year were more than $1 billion, company spokesmen said.
”Klynveld Main Goerdeler and Peat Marwick International confirmed that representatives of the two organizations have held exploratory discussions to determine the feasibility of combining the two organizations nationally and internationally,” a KMG statement read. ”The complexities involved in bringing about such a combination have led the representatives of both organizations to conclude that these discussions should not be pursued further.”
”Both firms were reviewing all the circumstances that would make a worldwide connection acceptable to all parties, during their informal discussions,” said Campbell Corfe, KMG Main Hurdman`s director of
international services. ”They wished to review all circumstances prior to entering into formal considerations.”
Corfe said the decision to terminate the discussions was reached for ”a whole variety of reasons,” all relating to the international pictures of the firms. ”There was no one particular instance” that led to the termination, he said.
Peat Marwick International officials were unavailable for comment.
