Toronto

[Nic Name]

Andersen strikes deal with Deloitte in Canada, which saves 1,400 jobs here and makes Deloitte & Touche the largest accounting firm in this country.

As reported in the Toronto Star

Andersen's international branches are legally separate from Arthur Andersen, which audited Enron's books and has been charged with obstructing justice for allegedly shredding Enron-related documents while the Houston energy trader was under investigation.

The U.S. Andersen accounting firm has been bleeding major clients and announced 7,000 layoffs this week. Also this week, a former Andersen partner pleaded guilty to obstruction of justice — a move seen as seriously undermining the firm's legal position.

The Canadian firm is insulated from the American problems, and the due diligence in yesterday's transaction is expected to be routine, said Deloitte spokesperson Jacqui d'Eon. "Our hope is that most of the Andersen people will join us ... and the Deloitte & Touche people will remain in place as well."