Billiton axes auditor Andersen

EMBATTLED accountant Andersen today lost its second FTSE 100 client when BHP Billiton, the world's second biggest mining house, said it had axed the firm as auditor.

The BHP audit, which had been retained by Andersen for more than 60 years, was worth £2m last year. The job has gone to KPMG and PricewaterhouseCoopers, which were joint auditors of Billiton before last year's merger with BHP.

Andersen has lost FTSE 100 fund manager Amvescap, and advertising giant WPP is believed to have put its audit up for tender. Others joining the exodus include Rupert Murdoch's News Corporation, busmaker Mayflower, the Wireless Group and Stagecoach.

BHP's decision is another signal of the miner's renewed focus on corporate governance. It revealed yesterday that its board would be cut by a third to 12 members following the planned departure in July of chief executive Paul Anderson.