PwC Australia exploring sale of government advisory business – Source

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SYDNEY June 23, 2010 PricewaterhouseCoopers Australia is looking to sell its government, education and healthcare practice to private equity firm Allegro Funds, which is battling a scandal over the misuse of secret government tax, according to a person familiar with the matter. Plans.

The Australian Financial Review first reported the story on Friday.

The sale could include about 100 partners and 1,000 employees, or 10% of the “big four” professional services firm, AFR added.

A spokesperson said PwC does not comment on market speculation when asked about the story. Allegro Funds did not immediately respond to a request for comment. A person familiar with the sale plan could not be reached for comment because the information has not yet been made public.

Allegro Funds describes itself as a structuring specialist with more than $4 billion ($2.68 billion) under management.

Acting PwC Australia chief executive Christine Stubbins said last month the firm would “clean up” its government advisory business and appoint a separate board to consider “strategic options for the business”.

The firm is under fire after Australian tax authorities found a former PwC partner advising the federal government on rules to prevent corporate tax avoidance shared confidential information with colleagues for work with multinational companies.

Several major pension funds have suspended dealings with the firm and Australia’s most populous state last week banned it from new tax work for three months.

($1 = 1.4930 Australian dollars)

Reporting by Louis Jackson; Edited by Lincoln Fest

Our standards: The Thomson Reuters Trust Principles.

Lewis Jackson

Thomson Reuters

Breaking news reports covering big stories around politics, companies and commodities in Australia and New Zealand. He previously wrote about stocks on Morningstar.

Scott Murdoch

Thomson Reuters

Scott Murdoch has been a journalist for over two decades, working at Thomson Reuters and News Corporation in Australia. He has specialized in financial journalism for most of his career, covering equity and debt capital markets on M&A across Asia and Australia. It is based in Sydney.

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