KPMG Consulting plans IPO

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KPMG Consulting Inc.'s consultants, used to watching their dot-com clients get rich on stock options, are seeking to join the party. KPMG Consulting filed for an IPO worth as much as $1 billion with the Securities and Exchange Commission. Parent firm KPMG L.L.P. and Cisco Systems Inc., San Jose, Calif., announced plans last fall to form KPMG Consulting, which does mostly Internet-related consulting. McLean, Va.-based KPMG Consulting, presently 80.1% owned by New York-based KPMG L.L.P. and 19.9% by Cisco, was incorporated in January. One reason KPMG Consulting's execs want to do an IPO is so they can offer their consultants stock options to keep them from leaving to join dot-coms. The IPO plan is getting scrutiny from the Feds because of possible conflicts of interest if KPMG L.L.P.'s audit clients are shareholders in KPMG Consulting. KPMG Consulting has some 17,000 employees in 160 countries.
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