Advertisement

PWC quits VTech after failed Lucent acquisition

Reading Time:2 minutes
Why you can trust SCMP
0

PricewaterhouseCoopers (PWC) has resigned as auditor of VTech Holdings over the Hong Kong-listed company's concerns about work the accounting giant carried out on an ill-fated asset acquisition, VTech said last night.

VTech, which makes consumer electronic products, said in a press statement it was 'attempting to settle any claims it holds against PricewaterhouseCoopers without proceeding to litigation'. It said it was arranging for the appointment of KPMG as auditor.

'PricewaterhouseCoopers resigned over VTech's concerns about its performance in relation to project work carried out for VTech regarding the company's acquisition of the Lucent wired business in 2000.'

The work was carried out by PWC's United States office, a VTech spokeswoman said.

A spokesman for PWC's Hong Kong office would not comment.

VTech lost US$110.4 million in restructuring and impairment charges after buying the loss-making assets from Lucent. The charges were the main reason for VTech's record US$215 million loss in the year to March 31, 2001.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2-3x faster
1.1x
220 WPM
Slow
Normal
Fast
1.1x