The Atlanta Constitution from Atlanta, Georgia • 42

BUSINESS 1997 The Atlanta Journal The Atlanta Constitution Dasrd for the way Ernst Young, KPMG merging HUH Wiinoccasr -oaa nazara. -V A ft. A Move creates world's largest accounting firm i until he retires in 2000. KPMG's Butler will serve as chief executive and will succeed Laskawy as chairman until 2002. At that time, Butler will retire, and Ernst Young's deputy chairman, William L.

Kimsey, will replace Butler as chief executive. The firms' partners must approve the deal, and it must receive regulatory approval from the U.S. Justice Department and European antitrust regulators. Officials at the European Union confirmed Monday that they will investigate the deal. The EU routinely probes mergers involving companies with global sales of more than 5 billion European Currency Units, or $5.58 billion.

It can demand changes to mergers involving non-EU companies if they have an impact on markets within the 15-nation European bloc. bloomberg News contributed to this article. The merged firm also would outdistance the combination of Price Waterhouse and Coopers Lybrand, whose merger was announced last month. If both mergers are completed, the so-called Big Six accounting firms would be whittled down to four. The moves are a reflection of the changing focus of the industry into a one-stop service that combines the traditional auditing and accounting of companies with consulting.

"The real emphasis now is to service the needs of global companies wherever they want to go in the world," said Stephen Butler, chairman and chief executive of KPMG. "Our clients require an organization that has greater financial strength and can deliver a wider array of services and products." Ernst Young Chairman Philip Laskawy will become chairman of the combined firm Features include: SmartTrak full-time all-wheel drive, 1 90hp Vortec engine, automatic transmission, 4-wheel anti-lock brakes, air. conditioning, power windows and more ASSOCIATED PRESS And now, the Big Six are becoming four. Accounting giants Ernst Young and KPMG Peat Marwick said Monday that they will merge, creating the nation's largest accounting firm, with $18.8 billion in annual revenues. Terms of the deal were not disclosed.

The merger will move the new company ahead of industry leader Andersen Worldwide in terms of both revenue and partners. KPMG and Ernst Young had combined revenue of $18.8 billion in fiscal year 1997 and will have 163,250 employees and 12,800 partners worldwide. Andersen's 1997 revenue is estimated at $11.3 billion. Also includes MmMmml, plus Taxes, license, title fees, insurance extra with approved credit. Example based on specially-equipped model.

$31,205 MSRP including destination charge. Monthly payments total $14,364. Option to buy at lease end at price determined at lease end for 18,410.95. Mileage charge of $.15 per mile over 36,000 miles. Lessee pays for excessive wear.

Must take retail delivery out of retailer stock by 103197. See retailer for qualification details. 2491 Pleasant Hill 621-4404 5350 Memorial Drive (404) 296-9100 Stone Mountain, GA Duluth, GA A Failure to connect, try Quit ITT accepts Starwood's buyout offer ASSOCIATED PRESS ITT on Monday accepted a $13.3 billion buyout offer from Starwood Lodging, spurning a lower hostile bid from Hilton Hotels. The combination of ITT and Starwood would create the world's largest hotelier, bringing some 650 Sheraton, Westin and Caesar's hotels and casinos in 70 countries under the control of one corporation, with $10 billion in annual revenues. Phoenix-based Starwood, the nation's largest real estate investment trust, agreed to buy the Westin hotel brand last month.

Its offer of $82 a share in cash and stock for ITT dwarfs Hilton's $11.1 billion, or $70-a-share, cash and stock offer. Hilton did not immediately respond to news of the Starwood deal, so it was not known if it will try to top Starwood's offer. The company, based in Beverly Hills, did not return calls seeking comment. Critics had urged ITT's chairman and chief executive, Rand Araskog, to work with Hilton for a higher bid. "The ITT-Hilton matter was not proceeding to Mr.

Araskog's satisfaction, and this was a way he was able to control the destiny of ITT," said Bjorn Hanson, who heads the lodging and gaming unit at the Coopers Lybrand accounting firm. "With all of the criticism of Araskog acting like entrenched management, the end result is he delivered for his shareholders." A Starwood spokesman said the companies haven't agreed on a name. Starwood had already announced plans to change its name to Westin Hotels Resorts Worldwide. Starwood and ITT said they expect to save about $100 million a year by sharing technology and reservation systems and by purchasing services and promoting each other's hotels, as well as through other efficiencies arising from the merger. A Nevada court has ruled that ITT must let shareholders vote on the planned changes, giving Hilton an opportunity to unseat ITT's entire board, all of whom face re-election Nov.

12. However, if shareholders are happy with the Starwood deal and Hilton does not make a more attractive offer, shareholders would be unlikely to vote against ITT management's nominees. ITT owns Sheraton, which owns, manages and franchises 424 hotels in 62 countries; Caesar's, a leader in the gaming industry; and ITT World Directories. Starwood Lodging Trust owns or manages 162 hotels, including its pending deal for Westin, with more than 60,000 rooms in 24 countries. ITT stock was up more than 7 percent Monday on the New York Stock Exchange, gaining a share to Starwood shares were up at and Hilton shares were Atp 31V4 cents at 32.75.

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