Meiosis, Mitosis: Cap Gemini's Mating with Ernst & Young
R. Krause - April 5, 2000

Event Summary

Cap Gemini wants Ernst & Young's management consultancy, and in all likelihood (about 90%), the partners of Ernst & Young are willing. The whole affair has been long in the making. Ernst & Young, like its cohorts Andersen, KPMG, and Pricewaterhouse, suffers from the malady known as SEC rules on conflict of interest. Its auditing wing can never quite be distinguishable from its interests in management consulting wing. The SEC has threatened legal action against at least one of the major consulting firms if the practice doesn't stop.. The SEC is also upset that some partners have (un)wittingly invested in companies that other partners are contractually engaged with...