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EY counts $600m cost of failed breakup bid

EY European region leader Julie Teigland: 'Our competition is going to have a field day with poaching our people'

EY on 11 April abandoned its plan to break up the 390,000-person firm into separate businesses, one that looked like a traditional auditor and another that focused on consulting
EY on 11 April abandoned its plan to break up the 390,000-person firm into separate businesses, one that looked like a traditional auditor and another that focused on consulting Photo: Bloomberg via Getty Images

For months, Ernst & Young's top leaders characterised their planned breakup of the firm as almost inevitable. All that was left were some adjustments around the edges and votes by partners in dozens of countries.

They missed a brewing revolt at the firm's biggest operation, where EY's top leader and the architect of the breakup had deep ties. A handful of US partners, prodded by a vocal group of EY retirees, scuttled the deal.

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