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ERNST & YOUNG CONSULTANCY ARM IN£7BN TIE-UP WITH CAP GEMINI

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Cap Gemini, the management consulting and information technology group, has reached agreement with Ernst and Young,...
Cap Gemini, the management consulting and information technology group, has reached agreement with Ernst and Young, one of the big five accountancy firms, on a£7.1bn merger, reports The Financial Times (p26).

The Paris-based firm will today announce it has agreed to merge with E&Y's consultancy arm - a move which will create one of the world's biggest consultancy groups.

The E&Y deal comes less than two weeks after PricewaterhouseCoopers, the world's biggest professional services firm, announced plans to separate its consulting arm from its audit business.
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