Ontario Court Grants Injunction to Delay Vote in
Proposed KPMG Canada Merger / Arthur Andersen Must Extend Deadline TORONTO (ots-PRNewswire) - A Canadian court granted an injunction to David Knight, vice chairman of KPMG Canada late yesterday, ruling that Arthur Andersen must extend the voting period for its proposed merger with KPMG Canada. The ruling sets a new deadline of April 26, 1999 for partners of KPMG Canada to consider the proposed deal before voting. "We're greatly encouraged by the court's decision. It will allow all of KPMG Canada's partners the time they need to give this very complex proposal sufficient consideration," said Paul Reilly, chief executive officer, KPMG International. "I'm confident that it is one more positive step toward the day when we can announce that KPMG Canada will remain a valued member of the KPMG International family. We are going to continue to have a major presence in the vital Canadian market," he added. "The court's extension of the voting deadline to April 26 relieves the unfair and unrealistic time pressure imposed by the original deadline of April 9 -- and enables us to reach all KPMG Canada partners with the information they need to develop a better understanding of the benefits that remaining with KPMG will provide," Reilly said. "In addition, an increasing number of KPMG Canada partners have expressed their commitment to stay with KPMG, regardless of the vote," Reilly said. Judge J. M. Farley of Ontario Court's General Division in Toronto said in his opinion late yesterday there "could be irreparable harm if the April 9th deadline is enforced by Arthur Andersen." Judge Farley said the granted injunction "would not only allow partners the 30 day period contemplated by the existing Partnership Agreement to reflect upon this fundamental change, but also to discuss it with their colleagues." David Knight, who filed the motion yesterday, told the Ontario court, "I am not in favor of the Arthur Andersen proposed merger and do not believe it is in the best interests of KPMG LLP [Canada] to approve it. I intend to encourage the partners to vote against the merger." Knight pointed out that the April 9 voting deadline was set "arbitrarily" and contrary to the firm's partnership agreements, noting that Andersen provided only 12 days' notice to KPMG Canada partners for a "complicated proposal with serious ramifications." KPMG International's member firms have more than 6,700 partners and 92,000 professionals in 157 countries. KPMG's Web site is http://www.kpmg.com. ots Original Text Service: KPMG International LLP Internet: http://www.newsaktuell.de Contact: George Ledwith of KPMG International, 201-505-3543
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