Business & Finance
Add a third name to the list of buyers interested in troubled accounting giant Arthur Andersen LLP. Netherlands-based KPMG, the world's third-largest auditor, has joined the bidding along with Deloitte Touche Tohmatsu and Ernst & Young, the Financial Times reported. A deal is likely within days, the newspaper said. Today is the deadline for Andersen to reach a settlement with government prosecutors and regulators, or face indictment over its actions on behalf of bankrupt client Enron.
For a second time, TRW Inc. rejected a $5.9 billion take-over bid from giant defense contractor Northrop Grumman. TRW's board promised to reconsider the all-stock offer after Northrop Grumman said it would take its proposal directly to TRW shareholders. Cleveland, Ohio-based TRW, which makes a range of products from car parts to satellite and missile technology, also said it was in negotiations to sell some or all of its automotive divisions. Northrop Grumman has indicated it would sell those off if a deal goes through and advised federal regulators Monday of its intent to pursue the acquisition.
New delays in the takeover by General Motors of bankrupt Daewoo were blamed on an inability to finalize a list of the South Korean automaker's units it wants. And the delay could be prolonged because the government of South Korea now is insisting that neither the company nor any of its assets be resold at cut-rate prices, reports said. Last year, GM signed an agreement to acquire Daewoo for $2 billion, but it is nonbinding. Since then, GM has sought a $350 million discount.