Allegro unlikely to merge PwC unit with Slater and Gordon

PwC announced on Sunday that Allegro had agreed in principle to buy the business. Picture: NCA NewsWire / Damian Shaw

Allegro Funds is unlikely to merge the government consulting unit of PwC with its law firm Slater and Gordon should the private equity firm finalise an acquisition of the business, sources say.

PwC announced on Sunday that Allegro had agreed in principle to buy the business, after DataRoom revealed online on Friday that talks had taken place.

The private equity outfit will simply take the unit off PwC’s hands, assuming all liabilities, for a token payment of $1.

The unit will be rebranded, and PwC will no longer have to provide working capital to keep it operational.

PwC has about 8000 staff in Australia at the moment, of which around 2000 will be involved in the new unit.

Allegro purchased law firm Slater and Gordon this year.

Some believe that the PwC brand is stronger than the Slater and Gordon brand, which would mean that the two operations would be kept separate.

The next question is whether other parts of PwC’s corporate advisory unit are keen to break away following the scandal that has plagued the top four accounting firm over the leaked confidential government information about tax changes to its clients while working as the trusted adviser to the government.

Elsewhere, as revealed online by DataRoom last week, former Jarden Australia operatives are starting a new superannuation fund asset manager, spearheaded by the investment bank’s former director Dane Fitzgibbon.

Joining him are Mark Himpoo and Simon Hudson – two top stock pickers who worked at UniSuper before Jarden – and ex-Jarden executive Stephen Ross. It does not answer the question as to where Robbie Vanderzeil will end up.

Mr Vanderzeil is believed to be overseas at the moment, but some are betting that he will resurface at another investment bank to do what he does best – landing equity capital markets deals.

Jarden announced last week that Mr Vanderzeil was moving on from the Australian investment banking business of Jarden he helped to launch as its local boss, before advancing into the role of chairman.