"While friendships and respect will always link our two firms, we find that our strategies and missions will be better accomplished as individual firms," leaders of the two firms said in a joint statement announcing the end of merger discussions which started in May. "Both Olive and Plante & Moran share a client-centered culture and dedication to our talented and committed staff. As highly successful and respected firms we will continue to deliver the highest and best service to our clients."

"We've known Olive for many years," said William Matthews, Plante & Moran's managing partner. "We thought there would be synergy between the two firms. After talking about our philosophies, we found that we agreed on many things -- client service, staff and culture," Matthews said, "but there were operating differences."

Operating issues proved to be the sticking point that led to the end of marriage plans for the two firms, both ranked among the 25 largest in the nation.

"We decided that we're better off going it alone and continuing with our own ways," Matthews added. "We still have an excellent relationship with them."

Both firms are members of accounting firm association Moores Rowland International.

Matthews said P&M, which boasted revenue of $140 million for fiscal 2000, would continue to seek out merger partners, particularly in the Ohio area, where the firm is looking to strengthen its presence. Plante has 16 offices, four of which are in Ohio.

Separately, Plante & Moran this month named its new managing partner. William M. Hermann will replace Matthews in June 2001, when Matthews completes his second four-year term as managing partner. The appointment is in keeping with Plante & Moran's regularly scheduled succession plans, and is unrelated to the merger.

He will be the fifth person to serve as managing partner in the firm's 76-year history. Hermann, who joined the firm in 1971, has served as a group managing partner in charge of various offices, industries and service group practices since 1995. He became a partner in 1981 and office managing partner of the firm's Ann Arbor office in 1982.

Matthews will serve the firm in an advisory role during a transition period after he completes his current term as managing partner, P&M said.

-- By Melissa Klein

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