Andersen is in last-ditch rescue talks with two of its largest rivals as the scandal-hit professional services firm fights to save itself from collapse.
The world's fifth-largest auditing group is trying to work out a possible merger with rival audit firms Ernst & Young and Deloitte Touche Tohmatsu.
Under the terms of the proposed deal, Andersen's US business would file for Chapter 11 bankruptcy protection. The merger partner would then buy Andersen's US assets, leaving the bankrupt US business with cash to settle claims against it.
Andersen's US partners are working to announce an agreement with one of the prospective partners in the next two days. However, there is a strong chance that the talks will collapse and, even if a deal is announced, many of the details would still need to be hammered out.
If the attempts to find a global partner fail, Andersen's operations in Europe and other parts of the world could break away from the parent company, sparking what is likely to be a bitter legal battle over their liability for the legal claims facing the company in the United States.
Andersen is also trying to stem an exodus of clients following its implication in the collapse of bankrupt energy group Enron.
On Monday FedEx, the transportation company, and Riggs National, the Washington-based bank, became the latest clients to axe Andersen as auditor. This month, Merck, the pharmaceuticals company; Delta Air Lines; and Freddie Mac, the housing finance institution, also switched auditors.
Andersen, Ernst & Young and Deloitte all refused to comment.