Ernst & Young has shed its investment banking arm by selling the practice to the consulting firm run by former New York City Mayor Rudolph W. Giuliani.

Giuliani Partners LLC bought Ernst & Young Corporate Finance LLC, an affiliate of the Big Four accounting firm, and simultaneously launched Giuliani Capital Advisors LLC, which will advise companies on acquisitions, restructurings and other deals. Terms of the deal were not disclosed.

The two-term former mayor and the accounting firm forged the alliance that created Giuliani Partners LLC, of which Giuliani is chairman and CEO, in January of 2002, shortly after he left office. At that time, the company made mention of plans to establish Giuliani Capital Partners, which it said would initially focus on investing in security and protection companies. Giuliani Partners' principal offices are housed in the same building as the New York headquarters of Ernst & Young.

E&Y chairman and CEO James S. Turley said that the sale "is part of our on-going commitment to refocus on our core businesses -- auditing, tax and transaction advisory services."

Former E&Y vice chairman Steven D. Oesterle, who has been a managing director at Giuliani Partners since January of 2003, will serve as chairman and CEO of Giuliani Capital Advisors.

The EYCF executives will maintain their existing client relationships and will stay in their current locations. EYCF has offices in New York, Chicago, Atlanta, Los Angeles, San Francisco and Troy, Mich.

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