Goldman Sachs is understood to be advising KPMG on its merger talks with Andersen, one of the largest and most complex mergers to be undertaken in recent history.

Goldman Sachs has a close relationship with KPMG. A source said that Goldman was assisting the accounting firm on its merger with the non-US operations of beleaguered accounting group Andersen, which has been heavily embroiled in the Enron scandal.