Law Firm Merger Mania: Allen & Overy and a Mystery Suitor?
Could transatlantic law firm mergers become the hot new trend? Last week brought news of merger talks between Hogan & Hartson and Lovells. And now we’re hearing rumors of a possible merger involving Allen & Overy, a top U.K. firm and a member of the prestigious Magic Circle.
This is not, of course, the first time we’ve heard such buzz. A year ago, the word on the street was that A&O was thinking about getting with Shearman & Sterling.
For the record, Allen & Overy denies the latest rumors. Here’s the firm’s official statement, responding to an inquiry from Above the Law:
As a global player who has been quite open about the importance of the US market, we are often subject to such rumours. We have openly stated for a number of years now that we have the desire to expand in the US market and as such we would consider any opportunities that may arise with a suitable US partner. That remains the case, but at the current time we are not in any merger talks whatsoever with a US partner. Your [reports seem] to refer to a global call our management held with all partners recently on our current view on strategy, though your questions below do not reflect the content of what was said whatsoever.
Find out what they were reacting to, after the jump.
We asked A&O to comment on these reports:
1. In a conference call last week, U.S. partners were informed that A&O is close to merging with a “well-known U.S.-based firm.”
2. Most U.S. partners of Allen & Overy were unaware of the possible merger, and some were upset by the news.
3. A number of partners have been de-equitized and/or have lost points in the past few months, possibly in an effort to increase the firm’s attractiveness to a merger partner.
Of course, please take the scuttlebutt with a grain of salt — especially since the firm has explicitly stated that it is “not in any merger talks whatsoever with a US partner” at the current time.
One A&O associate opines that it would only make sense for the firm to merge “with a domestic-focused US firm, one with a strong NY practice and no real foreign presence.” This makes sense to us, since the firm doesn’t need more redundancy in the ranks (having engaged in significant layoffs earlier this year).
If Allen & Overy does merge in the future with an American law firm, who might it be? Feel free to offer guesses in the comments.
Earlier: Law Firm Merger Mania: Allen & Overy + Shearman & Sterling = A&S&S??
(63) Comments
Comments
Diane Von Firstenberg
Winston?
Happy Columbus Day. Get back to work.
Is it true that after throwing half the firm's first years out into the great depression only four months after they started, LATHAM NY is now desperately throwing world series tickets at 2Ls in hopes that people with options will take Latham offers?
Latham offerees, accept at the firm you really want, AND Latham to get the tickets. Then call Latham right before the summer program starts and tell them that due to economic changes, you've had to reconfigure your employment situation and you will no longer be able to join them.
Ovaries?
5 - that might explain why their reaction was so bitchy
Allen & Overseas?
4 - Is that true? How do you know that? You should email Lat / Elie / Kash: tips at abovethelaw dot com.
A&O already has a U.S. office. This is a ridiculous rumour. Each fall around this time, there's always a rumour that A&O will merge with someone. Slow news day, Above the Law?
I heard Thacher Proffitt & Wood has a strong NY practice and no real foreign presence
9 - Why is it ridiculous? The firm admits it is on the prowl:
"We have openly stated for a number of years now that we have the desire to expand in the US market and as such we would consider any opportunities that may arise with a suitable US partner. "
Anal & Ovary?
9, yes, it's an American holiday called "Columbus Day."
Binder & Binder is a domestic-focused US firm, one with a strong NY practice and no real foreign presence.
Based on my experience at A&O, the firm is definitely in trouble. It's part of the reason I was forced to choose to leave the firm.
In this economy, it only makes sense to merge. Unfortunately, since I am no longer with the firm there is no way for me to even opine based on a hunch.
It is foolish of A&O to merge with anything less than a reputable and well established NY white shoe firm. Also, I don't see why A&O is denying talks of merger (if they are engaged in any such talks).
The only explanation is that the merger is entirely being coordinated and led by UK attorneys. I wouldn't be surprised if US partners are being kept in the dark about these merger talks. A&O has always been a UK centric firm - so it's no suprise.
How are the other Magic Circle firms weathering the storm?
Milbank is a serious possibility.
Am I the only one that sees mergers as a horrible thing? Large unwieldy shops are a bad idea guys. It leads to too many people doing the same thing, therefore there will be some fat to cut. Then as soon as some new city ordinance banning pit bulls cuts into this firms practice area in dog bite law, no one has work at all and you all get the axe. Reasonably large firms are one thing, but just like the banks, when law firms get too big, everyone gets screwed (except the execs/partners).
My administration welcomes this rumor. For too long American law firms have been arrogant and disdainful of European law firms and International law. It is only though engagement with the rest of the world that our law firms and ultimately our system of law will move from protecting profit seeking and exploitation to defending the right of all to equally share in society's wealth.
In summation, my administration supports continued mergers between more mature, socially conscious European firms and American firms.
Barack x.
I miss Future Elie. I was relying on his wisdom to help me navigate through these uncertain times. Where can I turn for guidance?
Hi everyone: As luck would have it, I just found out that I'm headed to London later this week for doc review/witness prep, and we're using A&O's offices. I'm pretty bummed because I won't really have time to do much else but work, but I'm thinking that maybe I can at least get a good meal or two while I'm there (probably lunches). Anyone have any suggestions? I'm thinking maybe something ethnic, or Indian. Thanks!
--Lunching in London
20
England is not known for its food. There is no such thing as a good lunch in london. Your best bet is to hop on the TGV and take in an evening in Paris.
20 -- hell yes, I've got a suggestion. Go to Tayyab out in Whitechapel.
www.tayyabs.co.uk
Holy God, it's delicious.
It's going to corner the LevFin market by merging with/buying Cahill.
British firm merger rumors = Magic Circle jerk
Thanks, 22. That looks good, but what is a "halal" restaurant? Is that the same as vegetarian?
--Lunching in London
"something ethnic, or Indian."
LOL
Why am I not surprised? The insipid FTT aristocracy of America decides to merge with BigLaws from the same continent that perfected incestuous anti-meritocracies. Maybe H&H will develop a long chin and a pointy nose in a couple decades.
To be fair, it was the blithering FTT blue-blood orgy houses that ran the U.S. economy into the ground, not the English firms. Maybe the merger will teach FTTs a thing or two about practicing law instead of crime.
20 is a troll. Don't feed.
Did someone say biglaw anti-meritocracy?
-bar failing Latham partner's son who miraculously still has job
20/25, learn to use Google.
20, may I suggest that you eat cod, or a can of tuna fish.
Nigel
The target firm is Cahill.
29
Perhaps if your father wasn't such a schmuck, you would currently be employed.
Magic Circular Firing Squad
Thanks, 30, but I'd feel much more comfortable having a recommendation from an ATL commentator. Can yo uhelp me out :)
--Lunching in London
21 - the TGV does not run between London and Paris... you're thinking the Eurostar. And no they're not all the same you stupid American.
33
I am employed. I'm the son of a practice group leader. No one can touche me.
-bar failing Latham partner's son, bitches!
21 - Don't mind 36. We Brits get quite sensitive when you criticize our cuisine. We get so sensitive because, deep down inside, we fear you might be right.
It's the same reason you Americans get quite sensitive when we suggest you are stupid and that your country might be a bit shite.
I think that's right, 36; I once took the TGV south in France from Paris, but I wouldn't know where to get it in London. Still, 21 might have a point. I've hear there's a lot of good food in Paris. Were you thinking of anywhere in particular, 21?
--Pondering Paris
First Lovells aims to partner up with Hogan, and now this? The UK shops must be in worse trouble than we have over here.
A&O is thinking of merging with Latham because its management has shown excellent stewardship during the financial crisis.
36 - The Eurostar is a TGV - train a grande vitesse or high speed train for you stupid non French speaking Americans.
I thought I was her daddy, but she had five more
Mergers = Job Cuts
29/37 = poster child for anti-nepotism policies
Speaking of nepotism, I am tired of seeing these bratty children of famous mayors, coaches or whomever shamelessly waltzing into positions of authority and producing nothing but hot air and shit-eating grins.
If Nancy Pelosi's father was a nobody, she would be a kindergarten teacher. She is just awful, but she has used her family and her entitled, "my-daddy's-important-so-you-better-get-out-of-my-way attitude to get into a position which she doesn't deserve, and squander any opportunities she comes across.
There are people like her from all walks of life on all sides of the political spectrum, in bascially all positions of authority. I wish we could put all those people on an island, and let the real self-made, self-starters and hard workers get a crack at running this country.
46, I'm no fan of Obama but we'd be hard pressed to say he relied on his powerful family to get where he is.
-20 A&O's London Building is most impressive - and i have seen most of the white shoe firms and magic circle offices - so enjoy the modern art and the sleeping pods.
A&O's london office is right next to Spitalfields market so you should look around there. Great Eastern is also a favorite of London summers around the area. It has a great miso cod (not as good as Nobu but it will do).
-Not at A&O
46, see also Ronald Reagan and Bill Clinton.
But I'll give you that a lot of the nonexecutive federal elected offices, as well as many state elected offices, have become hereditary.
can we please TRY in just one comments block not to look like complete tools?
1-49 = EPIC FAILURE IN LIFE.
10, nice try, I almost took the bait.
50 = A&O reject!
Bingham
Dude: Overy?? Nice joke. You are one sick puppy--pretending that there's a firm out there named after the female reproductive system. While you're at it, how about Jones & Uterus or Smith & Scrotum.
16,
i was thinking the same thing though a great many of their practices would overlap (though most of their overlap iis in the toilet) and not sure Milbank has a big enough platform in the US with only NYC (where AO has an office), DC and LA offices.
I don't think their PPP really line up, either. My guess is it that it is some out of Chicago - Winston is a good quess but I wouldn't be shocked by Sidley or Mayer.
Here are some firms in need of a merger:
A
* Altheimer & Gray
* Arnstein & Lehr
B
* Baker & McKenzie
* Banner & Witcoff
F
* Fitch, Even, Tabin & Flannery
G
* Gardner Carton & Douglas
H
* Hopkins & Sutter
J
* Jenner & Block
K
* Katten Muchin Rosenman
* Keck, Mahin & Cate
* Kirkland & Ellis
L
* Levin & Perconti
* Locke Lord Bissell & Liddell
M
* Mayer Brown
M cont.
* McAndrews, Held & Malloy
* McDermott Will & Emery
S
* Schiff Hardin
* Seyfarth Shaw
* Sidley Austin
* Sonnenschein Nath & Rosenthal
W
* Winston & Strawn
Not happening. Three reasons:
1. A&O's home office in London has a very high opinion of itself - they've made it clear that they won't merge unless it's with the whitest of white shoe firms. They're not going to slum it, so the list of potential merger partners is very small from the outset.
2. They saw what happened when Clifford Chance merged with Rogers & Wells. If they do it, it has to be done right - so there's always talk, but little action.
3. They're much more concerned about culture than outsiders realize. It's a very "nice" firm - not a sweatshop, and not a dungeon.
#2 makes them cautious, and when you combine #3 with #1, you pretty much rule out every possible merger partner. So it ain't happening.
But 1st-year associates at A&O DID start on time this fall, and they keep releasing good financial results, so you can understand why some NY firms would be interested in merging............
54, how about a eunich, or as spelled in British English, Enoch?
Enoch Evans Solicitors & Notary Public are located in Walsall, West Midlands. The partnership offers private and commercial services, including legal advice, dispute resolution and property.
http://www.enochevans.co.uk/
57, Agree, More likely Bird & Bird or even Taylor Wessing would merge with a US firm.
57 & 59 - please stop A&O trolling. There's a difference between perception and reality.
A&O is doing pretty poorly financially.
57 & 59 - please stop A&O trolling. There's a difference between perception and reality.
A&O is doing pretty poorly financially.
61, can't A&O just fix the financial side by overflowing work to any of the 1000's of SRA qualified Indian solicitors?
The target is Trolman, Glaser, and Lichtman, PC. International securities offering? Just call 1-800-MARGARITA.