Legal Business

Blue sky thinking – A&O initiative to adopt and roll out new business ideas from clients

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Following on from its roll out of high-end contract lawyer service Peerpoint last November, Allen & Overy is continuing to challenge and develop its model with the introduction of an initiative to adopt new business practices from its clients.

The Magic Circle giant, led by senior partner David Morley, has pulled together five panels of between five and eight partners covering Asia Pacific; Middle East and Africa; Continental Europe; the US and the UK, to target its clients for ideas not usually seen in the legal sector across the entire business function including finance, human resources, strategy and IT.

The new initiative, dubbed ‘learning from clients’, will see each panel present five ideas at the global partners’ conference in Dubai at the beginning of March, led by Morley. The idea is to whittle down the submissions to five strong business proposals, which will then be put forward to the board to consider for implementation.

Morley said: ‘We are searching for ideas that have not been used in the legal industry. I approached partners around the whole firm as we want to cross-fertilise what partners in the Middle East can come up with, in comparison to partners in the US for example.’

The initiative comes after the firm in November became the first top-tier outfit to launch a high-end contract lawyer service for major clients, overseen by managing partner Wim Dejonghe. Peerpoint will see A&O-vetted freelance lawyers deployed to handle a range of fixed-term needs, including covering maternity leave or fulfilling secondment requests. The service will provide lawyers ranging in experience from the equivalent of a senior associate to partner level, drawing initially on former A&O lawyers who want to work flexibly.

The team currently has around 10 lawyers, and aims to grow to some 20 to 30 members in the coming weeks. Lawyers will be employed on a contract basis and paid the pro-rata equivalent of a full-time employee.

The firm has been known to encourage its partners to think outside of the box in the run up to conferences, including launching a project called ‘the long view’ in the run-up to its May 2012 partnership conference, in which five groups of partners from around the world were asked to sketch out what legal life will look like in 2020.

However, this time the iniative may have a significant impact on A&O’s own way of doing business and Morley added: ‘We want to generate a different set of ideas and take them out of context. Some will work and some won’t, but we need to get them on the table.’

jaishree.kalia@legalease.co.uk

Legal Business

Strategic recruitment: A&O hires employment team in Paris

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Allen & Overy (A&O) has underlined the importance of its global employment practice with a significant hire in France, recruiting highly regarded partner Claire Toumieux to head its employment and benefits department in Paris.

Toumieux joins from 18-partner, top-tier local employment firm Flichy Grangé Avocats where she was a partner, along with a team of three associates – Susan Ekrami, Alexandre Couvreur and Alexandre Orts. A recommended partner in The Legal 500 EMEA, Toumieux has experience of representing both listed and unlisted corporate groups and investment funds through mergers and acquisitions, collective bargaining agreements and reorganisations.

She was re-elected for a second two-year term as vice chair of the European Employment Lawyers Association (EELA) in September. She joined Flichy Grangé in 2000, before which she was at Gide Loyrette Nouel for four years.

A&O Paris managing partner Jean-Claude Rivalland said: ‘We are truly delighted to welcome Claire. Now, more than ever, employment law is one of the central concerns of our clients and is a key part of our firm’s growth strategy. Claire is well-known and highly respected as a lawyer in Paris. We are confident that she will bring a fresh impetus and perspective, and that, with the support of our well-established and experienced team, she will succeed in strengthening our position in this area.’

The hire of the new team brings A&O’s lawyer headcount in Paris to over 150, including 38 partners.

jaishree.kalia@legalease.co.uk

Legal Business

Commercially minded: Allen & Overy chooses BPP for business-focused LPC

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In what constitutes a major overhaul of its training programme, Allen & Overy (A&O) has announced today (16 December) that it will work with BPP law school to provide its young lawyers with an enhanced Legal Practice Course (LPC) with a Masters business component from 2015. The firm has also chosen BPP to run its Graduate Diploma in Law course from September next year.

The change in legal training institution came after a competitive tender process in which BPP was selected over the firm’s incumbent provider, the University of Law.

The firm’s new LPC aims to ensure that its lawyers develop commercial awareness as well as legal expertise. The business modules will be fully incorporated into the LPC and be taught via a combination of online and face-to-face classes, designed exclusively for A&O.

‘Launching this Masters programme ensures we continue to lead the market on training: this will further improve our junior lawyers’ business knowledge and their ability to provide our clients with commercially relevant advice. This will better equip them for a career in commercial law and provides the added benefit of a Masters-level qualification,’ said David Campbell, a partner and training principle at the firm.

On completion of the course, not only will trainees receive their LPC but during their training contract at the firm, trainees will also carry out a business intelligence project on a relevant topic, which may be an industry sector, a client or other related subject. After completing this element of the training contract, they will receive an MA(LPC with Business).

A&O recently announced its spring newly qualified lawyer retention rate stood at 84% but in the summer announced that it would reduce its trainee intake by 15% from 2015. The firm currently takes on 105 trainees a year.

david.stevenson@legalease.co.uk

Legal Business

Clifford Chance wins double pharma mandate as Merck buys AZ Electronic Materials and Amdipharm buys Acbur

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With the pharmaceutical industry driving a number of recent high value M&A deals, Clifford Chance has won mandates on two significant instructions in the sector, including advising AZ Electronic Materials on a £1.57bn cash offer by German pharma giant Merck.

The transaction was led by corporate partner Tim Lewis and includes antitrust partner Alex Nourry, Luxembourg corporate partner Pierre Gromnicki, employee benefits partner Sonia Gilbert and tax partner David Harkness.

Allen & Overy (A&O) advised Merck, with a team led by corporate partners Richard Browne and Michael Ulmer along with Luxembourg corporate head Mark Feider.

The deal will see AZ shareholders receive 403.5 pence in cash for each AZ share, which values the share capital of AZ, which is a global producer of high quality, high-purity specialty chemical materials for the electronics market, at approximately £1.57bn and suggests an enterprise value of around £1.75bn.

As AZ is incorporated in Luxembourg and listed on the London Stock Exchange (LSE), the offer is subject to the shared jurisdiction of the Takeover Panel in London and the Luxembourg regulator.

CC previously advised AZ on its £441m initial public offering in 2010, led by capital markets partners Adrian Cartwright and Iain Hunter.

Last week also saw CC announce its role advising Amdipharm Mercury on its $56m acquisition of Sweden-based specialty pharmaceutical company Abcur. Amdipharm is an international specialty pharmaceuticals group formed from the merger of Amdipharm and Mercury Pharma. Clifford Chance acted for private equity firm Cinven when it acquired Amdipharm and Mercury Pharma in 2012.

The CC team advising Amco in the Abcur acquisition was led by corporate partner Andre Duminy and Nordic firm Roschier advised on Swedish law aspects.

Abcur was advised by Swedish firm Lindahl with a team led by corporate partner Johan Karlefors, who specialises in employment life sciences and transport.

Other big pharma deals over the past two months include Novartis’ $1.68bn sale of its blood transfusion diagnostics unit to Barcelona-based Grifols, with A&O acting for Novartis and Proskauer Rose and Osborne Clarke’s Spanish arm for the buyer.

Statistics last month from Dealogic showed that pharma deals have dramatically outperformed the wider global M&A market.

david.stevenson@legalease.co.uk

Legal Business

Revolving Doors: Strategic growth for A&O, Eversheds, Wiggin, Dentons, Field Fisher and Olswang

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In the last major round of hires before 2013 draws to a close, Allen & Overy (A&O) has boosted its international competition capability while Eversheds has expanded its City tax team and firms including Wiggin, Dentons, Field Fisher Waterhouse and Olswang have this month made strategic lateral hires across the media, energy, real estate and insolvency space.

At the start of December, A&O hired Herbert Smith Freehills (HSF) competition partner Peter McDonald to head its Australian antitrust and competition practice. Previously a senior officer at the Australian Competition and Consumer Commission (ACCC), at HSF McDonald advised clients in the energy, mining, industrial, retail and financial services sectors.

McDonald, who is a member of the Competition and Consumer Committee of the Law Council of Australia, has experience of covering transactional advice, merger clearances, consumer and regulatory issues and defending clients in investigations and legal actions by the ACCC.

A&O co-head of the global antitrust practice Elaine Johnston said: ‘Peter’s appointment furthers our strategy to put in place a top-quality team of antitrust lawyers in the three key global regions: Asia Pacific, Europe and the United States. This ensures that we can offer our clients the critical advice they need on global antitrust, regulatory and litigation issues.’

The move comes after A&O this summer boosted its global antitrust practice with the hire of Visa Europe’s general counsel (GC) and executive vice president and company secretary Vanessa Turner as a partner in Brussels.

On the Continent, the burgeoning Paris market saw Dentons hire energy duo Ramin Hariri and Vincent Lacombe a week ago (3 December) from France’s largest law firm, Fidal, to boost its energy offering with a particular focus on Francophone Africa.

The duo focus on energy and project finance across the oil, gas, mining and infrastructure space in France, Africa and the Middle East and have experience of working under ‘OHADA’ – the organisation for the harmonisation of business laws adopted by 17 West and Central African nations.

Dentons Europe chief executive, Dariusz Oleszczuk said: ‘They work for a number of large energy and utilities companies and governments, which fits well with Dentons’ overall Africa strategy. In particular, they bring strong expertise under OHADA, which is greatly appreciated by clients. I am confident that the addition of Ramin and Vincent will not only enhance Dentons’ existing client relationships in Francophone Africa, but will also provide many new opportunities throughout our global firm.’

The move followed Olswang’s tie up in Germany with insolvency lawyer Christian Köhler-Ma, to launch ‘Olswang Restructuring Solutions’ – a business aimed at providing counsel to companies, managers, shareholders and creditors during crises and near-critical situations in Germany. The new consultancy service will launch on 1 January 2014.

Previously, Köhler-Ma was senior partner at Leonhardt Rechtsanwälte in Berlin and his clients have included Systracom Bank AG, Gameplay Deutschland GmbH, nuclear power plant engineering company Kraftwerks-und Anlagenbau AG and internet advertising agency I-D Media AG.

In the City, meanwhile, a key in-house mover over the past fortnight was Deloitte’s heavyweight tax litigation director Giles Salmond, who resigned to head up Eversheds’ City VAT disputes and indirect taxes practice.

As an indirect tax litigation specialist, Salmond has represented multinationals and UK PLCs both before the UK courts, tribunals and the European Court of Justice. Previously, he acted for Condé Nast in a leading VAT case and he was also involved in the first UK tax mediation.

Eversheds tax head David Jervis said: ‘Giles has developed a strong reputation in the market having acted for a wide range of clients across all sectors including consumer business, leisure and the financial services sector, having been involved in a number of high profile disputes with the tax authorities.’

Within the media law sector, boutique firm Wiggin this month recruited TV lawyer Medwyn Jones to join its TV group as a partner. Medwyn joins from Harbottle & Lewis, where he has been a partner for 20 years, and has advised some of UK’s leading drama production companies (including the producers of Sherlock, Call The Midwife, and the recent BBC drama series The Escape Artist), as well as on-screen and writing talent, rights owners, events owners and agencies.

He starts his new role at Wiggin in January. The hire follows that of Ted Shapiro, who was previously head of legal at the Motion Picture Association, who joined as a partner at the beginning of 2013.

Wiggin co-head of the TV group Charles Moore said: ‘In the advent of the UK TV tax credit, which Wiggin helped initiate, our TV practice has never been busier. We are already working with US networks and cable companies, UK broadcasters, banks and other financiers, as well as UK independent production companies, on a raft of UK and international productions and other ventures. With Medwyn joining our team, we will have a combined UK TV expertise and client base that is second to none.’

Also in the City, Field Fisher Waterhouse strengthened its real estate investment offering with the hire of partner Rhodri Pazzi-Axworthy from Nabarro, who will join on January 6 and will be based in the firm’s London office.

Freshfields Bruckhaus Deringer-trained Pazzi-Axworthy became a partner at Nabarro in 2006. He also chaired Nabarro’s European Alliance’s Real Estate Group. Prior to that, he worked as a partner at Maxwell Batley between 2002 and 2006. He has experience of representing investors and developers, and advising on the real estate aspects of complex corporate and finance driven transactions.

jaishree.kalia@legalease.co.uk

Legal Business

A&O the first top-tier player to forge contract lawyer service

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Freelance lawyers to cover fixed-term needs.

For all the talk of innovation in the profession, experimentation with new models has so far been more evident at mid-pack players like Berwin Leighton Paisner (BLP) and Eversheds than elite London or New York advisers.

However, as Legal Business revealed on 25 November, Allen & Overy (A&O) has become the first top-tier outfit to challenge that orthodoxy with the Magic Circle firm launching a high-end contract lawyer service for major clients.

Legal Business

Ashurst’s Lloyd set to join Allen & Overy subject to partner vote

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Ashurst’s high profile global head of corporate Stephen Lloyd appears set to join Allen & Overy (A&O) after resigning from the newly-merged firm in November.

While Lloyd’s move is still subject to a vote by the Magic Circle firm’s partnership, one corporate partner at A&O told Legal Business: ‘It’s not final, but it’s very likely. We are pretty excited about him joining. He is a really good operational lawyer and a good cultural fit.’

If the vote goes through, Lloyd will join the 2,700-lawyer firm’s corporate practice subject to any covenants he is held to by his former firm.

The corporate rainmaker’s hire will be a major boost to A&O’s corporate team, with which his private equity client base has a strong synergy and overlap including leading investment group Apax Partners. ‘There is a lot of potential to develop,’ added the partner.

Lloyd became a partner at Ashurst a decade ago and was named London corporate managing partner in 2009. He was appointed as global head of the corporate practice in July 2010 and has experience of advising companies, equity finance providers and investment banks on cross-border M&A and corporate finance transactions, with a strong focus on the private equity, healthcare and real estate sectors.

He resigned from Ashurst early in November, within weeks of its chairman election vote that saw incumbent Charlie Geffen lose to litigator Ben Tidswell and of its financial integration with Ashurst Australia in September.

A&O declined to comment.

jaishree.kalia@legalease.co.uk

Legal Business

Innovation alert – A&O becomes first top tier player to forge a contract lawyer service with launch of Peerpoint

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For all the talk of innovation in the profession, experimentation with new models has so far been more evident at mid-pack players like Berwin Leighton Paisner (BLP) and Eversheds than elite London or New York advisers.

However, as Legal Business reveals today (25 November), Allen & Overy (A&O) has become the first top tier outfit to challenge that orthodoxy with the Magic Circle firm launching a high-end contract lawyer service for major clients.

The launch of ‘Peerpoint’ will see A&O-vetted freelance lawyers deployed to handle a range of fixed-term needs, including covering maternity leave or fulfilling secondment requests. The service will provide lawyers ranging in experience from the equivalent of a senior associate to partner level, drawing initially on former A&O lawyers who want to work flexibly.

The team currently has around 10 lawyers, and aims to grow to some 20 to 30 members in the coming weeks. Lawyers will be employed on a contract basis and paid the pro-rata equivalent of a full-time employee.

A&O has been trialling the model for months in a venture overseen by managing partner Wim Dejonghe (pictured). Peerpoint is viewed as potentially a major initiative for the firm, offering bluechip clients a wider range of service options while giving A&O more scope to draft in skilled resource at periods of high demand.

The division, which will be managed by head of business improvement Ben Williams, is currently in a soft launch period when its lawyers will only be drawn on by A&O itself but a successful rollout is set to see the service offered directly to clients.

Dejonghe told Legal Business: ‘The traditional law firm model is under pressure and lacks flexibility. In a low growth environment, peaks in client demand are far more variable, so we need greater flexibility in our model. We also want to provide an option for those high-calibre lawyers who enjoy the challenge of working with top tier clients without the added demands of working in a large law firm. Peerpoint enables us to do both.’

The venture echoes other alternative models of providing legal services such as BLP’s successful Lawyers on Demand division, which launched in 2007, and the US business Axiom, which provides services through experienced contract lawyers.

But Dejonghe said that A&O’s venture is different. ‘Our position is at the top-end of the market. We have access to high-quality clients and high-quality associates that are probably better than anyone else’s. This adds an additional model to the top end of the market and that is different to what already exists.’

The launch of a separately branded arm with a different model by one of the world’s leading law firms will be seen as underlining a more imaginative approach from City advisers at a time when clients are pressing for value and new ways of working. The venture also reflects an increasing interest at major law firms in so-called ‘accordion’ staffing in which a leaner core team of permanent staff are supported by a larger, flexible group that can be deployed to meet temporary demand.

Dejonghe added: ‘We want to accommodate the new generation of lawyers. There are some excellent lawyers who would love to remain in the legal industry but don’t want to put up with what that entails in the classical model.’

jaishree.kalia@legalease.co.uk

See How to improve a law firm in 17 easy steps for an extended look at innovation in law

Legal Business

H1 2013/14: A&O discloses revenue rise of 7.5%

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The first of the Magic Circle firms to disclose its 2013/14 half year (H1) results, Allen & Overy (A&O) has done so in reasonable style, starting the year with a 7.5% rise in revenues thanks in large part to strong performances in its litigation and finance practices.

H1 turnover at the 2,700-lawyer firm increased to £608m, marking a significant improvement on this time last year, when its 2012/13 H1 revenues dipped by 2.7% on the previous year from £582m to £566m.

While A&O, in keeping with the majority of City firms does not disclose its mid-term profits, managing partner Wim Dejonghe (pictured) told Legal Business that the results were ‘encouraging’.

The firm has attributed its recent financial success to an improvement in trading conditions in most markets, with particularly strong performances in London and across Asia Pacific. In terms of sectors, the litigation practice is said to be heavily engaged across New York, London and Hong Kong in dealing with fast moving foreign exchange probes over the past six months.

However the increase in finance work, particularly capital markets, has been a bigger surprise. A&O’s finance practice recently advised on the proposed recapitalisation of the Co-operative Bank and represented the export credit agencies and commercial lenders on the $5bn financing for the $9bn Nghi Son Refinery and Petrochemical Project in Vietnam.

Elsewhere the transactional market remains slow but the firm pointed to its high profile roles advising GlaxoSmithKline on the £1.35bn disposal of its nutritional drinks brands Lucozade and Ribena to Suntory Beverage & Food, and Novartis on the $1.7bn sale of its transfusion diagnostics unit to Spanish company Grifols.

Dejonghe said: ‘We expected a strong performance in litigation, but the one that really outperformed my expectations was capital markets.

‘South East Asia has always been a strong market for the firm, but I was pleasantly surprised by our results in China and Hong Kong, considering the growth in those markets has slowed down and many players have now entered the market; there are now 254 law firms in China.’

Dejonghe added that work has slowed down in Continental Europe while recovery in the US has been healthier.

‘These results put us in a very strong position at the half-year given that many markets around the world are only showing early signs of recovery,’ he added. ‘They also underline that our strategy continues to deliver and that our global footprint provides an ideal hedge to the varying conditions in the global economy. We will continue to remain focused on our competitiveness to ensure that we can build on what has been a very encouraging first half.’

The results come as the H1 results revealed so far have told a positive story, with Clyde & Co, Gateley, Trower & Hamlins and Weightmans all turning out an increase in revenue as Olswang’s H1 revenue  jumped by 15% and Field Fisher Waterhouse saw a spike of 7% in its turnover.

jaishree.kalia@legalease.co.uk

Legal Business

Pharmaceutical boon: A&O, Proskauer and Osborne Clarke advise on $1.68bn Novartis hive off

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The buoyant pharmaceuticals market threw up yet another high-profile healthcare deal this week, as Swiss giant Novartis announced the sale of its blood transfusion diagnostics unit to Barcelona-based Grifols for an estimated $1.68bn, with Allen & Overy (A&O), Proskauer Rose, and Osborne Clarke (OC) all securing advisory roles on the transaction.

Basel-headquartered Novartis was advised by A&O’s M&A head Eric Shube in New York, who previously advised the company on its near $52bn acquisition of a majority stake in NYSE-listed eye-care company Alcon, the largest acquisition ever undertaken by the pharma group.

On the other side, Proskauer advised Grifols, with New York-based corporate partners Peter Samuels and Daniel Ganitsky heading the deal. Samuels’ client portfolio in healthcare also includes Andrx Corporation, where he advised on its $1.9bn merger with Watson Pharmaceuticals (now Actavis).

Grifols also turned to Osborne Clarke’s Spanish arm, with head of life sciences & healthcare Tomás Dagá and M&A partner Raimon Grifols heading the team, alongside partners David Miranda (finance), Silvia Steiner (antitrust), and Núria Martín (capital markets).

Grifols previously worked with the healthcare company, of which he has also been a secretary since 2001 according to Reuters, on its €37m acquisition of a 60% stake in biotechnology firm Progenika in May this year.

This latest transaction, which requires customary regulatory approvals, is expected to be completed in the first half of 2014.

The deals comes in a week that also saw Irish biopharmaceutical giant Shire instruct US firm Davis, Polk & Wardwell in relation to its $4.2bn purchase of rare disease pharmaceutical company ViroPharma, which is being advised by Skadden, Arps, Slate, Meagher & Flom.

Data recently compiled by Bloomberg shows there have been 44 acquisitions of speciality drug companies for more than $500m in the last three years, with Industry specialist firms reaping the rewards, including Global 100 firms Covington & Burling and Latham & Watkins, which recently won key roles on Salix Pharmaceutical’s $2.6bn acquisition of speciality pharma company Santarus, announced last Thursday (7 November).

sarah.downey@legalease.co.uk