EY has rejected a proposal from US private equity group TPG to break up the Big Four firm and take a stake in its consulting business, according to a statement sent to partners yesterday.
TPG wrote to EY in late July outlining its plan for a debt-and-equity deal to separate its consulting arm from the audit business. The pitch came just months after the collapse of EY’s own attempt to spin off the consulting business — codenamed Project Everest — and seek a $100bn enterprise value for it in a stock market listing.
TPG’s approach comes as EY attempts to select a replacement for global chair and chief executive Carmine Di Sibio, the driving force behind Everest who plans to retire in June next year. This story has more of the details of the statement.
Related: EY in the UK has told staff to expect less generous pay rises this year and prepare for a small round of redundancies.
Here’s what else I’m keeping tabs on today:
Results: Walmart is the latest US retailer to report results. It comes a day after Target warned investors to expect lower earnings this year.
US economy: Initial claims for state unemployment aid, a proxy for lay-offs, are expected to have fallen in the week ending August 12.
Niger: Ecowas defence chiefs meet in Ghana to formulate a response to the military leadership that deposed the elected president of Niger, Mohamed Bazoum, in a coup three weeks ago.
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