Legal Business

Sort of offshoring – Ashurst to create new Glasgow unit to lower costs as City leaders push for value

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Major law firms continue to appropriate ideas from legal process outsourcing with Ashurst today (12 June) announcing a venture to create a 150-strong unit in Glasgow to support its practice.

The venture, which will launch later this year, will cover back office support and volume legal work, initially covering areas like document review in litigation and corporate.

Ashurst will create a new title of legal analyst to handle legal work currently undertaken by paralegals, trainees and junior associates. However, the firm does not expect any lawyer redundancies. The unit is expected to comprise around 120 support staff and 30 legal analysts.

The firm will now start a consultation with its 350 London support staff, which is expected to last 45 days.

The unit, which will be headed by former Dundas & Wilson partner Mike Polson, will initially focus on supporting the City firm’s work in London before moving to cover the law firm’s global network.

Ashurst managing partner James Collis commented: ‘The shape of the legal services market is changing and clients want their law firms to take responsibility for efficient sourcing of services without compromising on quality. We believe that our new venture in Scotland will be of great benefit to the firm and its clients. We have been looking at this for some time and, unfortunately, this has also required us to make some difficult decisions in relation to our business support services. Ultimately, however, we need to have the right people, with the right skills, doing the right work in the right location.

‘Consistency and continuous improvement in service quality are key to our business. By creating a legal centre of excellence focusing on a structured approach to these areas of recurring work, we can build up expertise, reduce timescales and enable other parts of the Ashurst network to focus on more complex matters.’

Polson commented: ‘We believe the office will help to shape an alternative legal model and career structure in Scotland, benefiting from the high number of exceptional legal graduates. Ashurst has some bold aspirations for the office and I am thoroughly looking forward to playing a part in this project and delivering on our twin goals of excellence and innovation.’

The move – which comes after Ashurst undertook an analysis of several alternative global options – has been supported by a regional selective assistance grant from Scottish Enterprise. Ashurst has no plans to move into Scots law or compete with Scots law firms.

Scottish Enterprise chief executive Lena Wilson commented: ‘This project will deliver high quality, permanent jobs to the Scottish legal sector while supporting one of our key development areas. We’re very pleased to have been instrumental in attracting such a high-calibre employer to locate in Scotland, particularly against significant competition. We look forward to continuing to work in partnership with Ashurst as it establishes its Scottish base.’

Under the venture, the firm is to enter into a consultation with support staff in London. The office is expected to cover some back office support in IT, business development, finance, HR, risk, compliance and knowledge management and will ultimately be used to provide support across other practice lines.

The move echoes previous initiatives from Allen & Overy and Herbert Smith Freehills in setting up sizeable support operations in Belfast as a means of lowering costs. Law firms have come under increased pressure from clients to deliver better value since the banking crisis of 2008 and have often argued that such ventures are warmly received by general counsel at major bluechips.

alex.novarese@legalease.co.uk

Legal Business

Ashurst takes lead role in headline deals

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Top 15 UK firm advises clients Commerzbank and Morrisons

Ashurst is leading on two headline transactions announced in mid-May as Germany’s Commerzbank entered talks to sell £4bn of its UK property loans and supermarket Morrisons signed a long-term deal with online grocer Ocado.

The top 15 UK law firm is advising longstanding client Commerzbank on the proposed sale of its Eurohypo UK operation to US bank Wells Fargo and private equity group Lone Star.

The work was awarded to Ashurst following a competitive pitch in November 2012. For Ashurst, which had an existing relationship with Commerzbank through its German operations, this will be the first corporate M&A deal it has advised Germany’s second-largest bank on, having undertaken largely finance mandates in the past.

Legal Business

Deal Watch: Nabarro and Ashurst act on sale of LSE HQ as King & Spalding secures repeat European M&A for GSK

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Ashurst and Nabarro‘s real estate teams have secured a role on the sale of another landmark London building, while King & Spalding has furthered its transatlantic ambitions by closing a sizeable European M&A pharma deal.

In the £225m sale of 10 Paternoster Square, home of the London Stock Exchange (LSE), Nabarro advised the seller, Tokyo-headquartered Mitsubishi Estate Company (MEC), led by rated real estate partner Deborah Parry.

The 22,854 sqm building, designed by Eric Parry Architects and Sheppard Robson, was completed in 2003 as part of the Japanese developer’s landmark Paternoster Square development.

Ashurst advised the purchaser, Oxford Properties, which is the investment arm of one of Canada ‘s largest pension plans, Onatario Municipal Employees Retirement System, with over $60bn in net assets.

Ashurst was led by real estate partners David Jones and Sarah Sivyour, who in November last year advised Oxford Properties on the acquisition of London’s St. Martin’s Court.

MEC is a longstanding client for Nabarro, which previously acted on the site assembly, development, pre-letting and now the sale of the LSE building. Parry pointed to the transaction as an example of large scale real estate investments being sold to foreign investors, including South Koreans and Canadians.

Parry added that deals of this kind are promising for the UK real estate market, commenting: ‘Long term investors are attentive to development opportunities. Our firm has had a strong run in acquisitions, sales and joint ventures.’

In March, Nabarro advised AXA Real Estate on the £472m purchase of London’s Ropemaker Place on behalf of a consortium.

Elsewhere, King & Spalding represented GlaxoSmithKline (GSK) on its €250m acquisition of Okairos, a specialist developer of vaccine platform technologies.

Atlanta partner Jack Capers and London senior associate Marcus Young co-ordinated a cross-border corporate team assisted by London employment law partner Pulina Whitaker. Amstutz Greuter advised on Swiss law matters and Pirola Pennuto Zei & Associati on Italian law issues.

The transaction is the second high-profile M&A matter that King & Spalding has closed for GSK in the past year. In June 2012, the same team represented GSK unit Stiefel on the £196m acquisition of Toctino.

david.stevenson@legalease.co.uk

Legal Business

Forward thinking: Ashurst appoints independent non-execs to its board

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Ashurst has taken the unusual step of appointing two high level non-executive directors to its board as the firm beds down its merger with Australia’s Blake Dawson and seeks experienced counsel on its strategic direction and corporate governance.

Former director general of The Takeover Panel Robert Gillespie will join the board of Ashurst with immediate effect and David Turner, chairman of the Commonwealth Bank of Australia (CBA), will join the board of Ashurst Australia (formerly Blake Dawson) on 1 June 2013.

Gillespie held the director general position from 2010 until April this year. Earlier high level roles include his appointment as chief executive officer of UBS Investment Bank for Europe Middle East and Asia in 2004 followed by vice-chairman of UBS in London a year later.

Turner, meanwhile, has been chairman of the board of CBA since 2010, having been appointed a member of the board in 2006. He was chairman of aerospace technology company Cobham until 2010 and has held a number of directorships including Whitbread and the Iron Trades Insurance Group.

The appointment of entirely independent board members is still unusual among law firms. Other similar moves include SJ Berwin’s high profile appointment of former Linklaters managing partner Tony Angel as a non-executive director in 2011, to advise the firm on its strategy.

Ashurst’s senior partner Charlie Geffen said: ‘Both Robert and David are seasoned board directors and during their careers they have accumulated considerable experience both domestically and internationally. Ashurst will greatly benefit from having such experienced independent board members who can provide external advice and expertise.’

Gillespie added: ‘Ashurst has undergone a marked period of transformation in recent years, which makes it a fascinating time to join as an Independent Board Member. I hope that my experience in the City and internationally will bring some relevant experience to the table from which the firm can benefit.’

Ashurst board will now include Geffen, managing partner James Collis, chair of Ashurst Australia Mary Padbury and chief financial officer Brian Dunlop, together with Singapore banking partner Matthew Bubb, Madrid head of real estate Cristina Calvo, London corporate partner Anthony Clare, German corporate partner Reinhard Eyring, London energy and transport partner Logan Mair and London dispute resolution partner Ben Tidswell.

Ashurst Australia’s board, meanwhile, comprises Padbury, managing partner of Ashurst Australia John Carrington, alongside Geffen and local partners Elspeth Arnold, Tony Denholder, Sarah Dulhunty, Paul Jenkins and Ian Williams.

Turner said: ‘The legal sector is undergoing a period of significant change and Ashurst itself is going through an exciting period of transformation. Having worked internationally in sectors which have also seen changes over the years, I hope to be able to bring some insights and perspectives to the firm.’

jaishree.kalia@legalease.co.uk

Legal Business

Headline Deals: Ashurst takes lead for Commerzbank and Morrisons

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Ashurst is leading on two headline deals announced this week as Germany’s Commerzbank enters talks to sell a £4bn UK loan portfolio and Wm Morrisons signed a potentially market changing agreement with online grocer Ocado.

The top 15 UK firm is advising longstanding client Commerzbank on the proposed sale of its Eurohypo UK operation to US bank Wells Fargo and private equity group Lone Star. If the deal goes ahead it is reported to be one of the largest disposals of real estate debt by a European bank since the start of the financial crisis.

The work was awarded to Ashurst by Germany’s second largest bank after a competitive pitch in November 2012. For Ashurst, which has an existing relationship with Frankfurt-based Commerzbank through its German operations, this will be the first corporate M&A deal they have advised the bank on, having undertaken largely finance mandates in the past.

The deal is being led by finance partner Lee Doyle, working alongside corporate partners Nick Cheshire and Rob Aird.

Allen & Overy is coordinating the joint bid for the acquirers and Dechert has a small role advising Wells Fargo on the deal, which is expected to complete by the end of the summer.

Elsewhere, Ashurst is also advising British supermarket Morrisons on a long term agreement with Ocado, led by global head of corporate Stephen Lloyd alongside corporate partners Adrian Clark and Karan Dinamani.

The firm, which has advised Morrisons since its 2003 takeover of Safeway, is advising on a technology and services arrangement and a sale and leaseback of property and equipment at Ocado’s Dordon customer fulfilment centre, which will enable the supermarket’s online store to commence grocery deliveries to customers in January 2014.

Speaking of the deal, which is expected to complete in July this year, Lloyd said: ‘This deal is transformational for both Morrison and Ocado. As a 25 year deal with the potential for extension and with a complex sale and leaseback component, it needs to cater for a number of different potential outcomes whilst in all circumstances preserving the value in the respective businesses.

‘Senior teams on both sides have worked to a challenging deadline to finalise workstreams across a diverse range of disciplines and both clients are delighted with the outcome.’

 

francesca.fanshawe@legalease.co.uk

 

Send details of high value or market changing deals, or new client wins to caroline.hill@legalease.co.uk

Legal Business

HSF and Ashurst announce partner promotions

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Herbert Smith Freehills (HSF) and Ashurst have both announced their latest partner promotions today (23 April), with Herbert Smith promoting considerably more associates than last year while Ashurst made up fewer partners this time around.

Herbert Smith Freehills (HSF) has promoted 19 lawyers to its partnership, up from just 10 last year, with the majority of the partners come from the firm’s self professed twin engines of corporate and dispute resolution, with seven partners being made up in each practice areas.

Following the firm’s merger with Australian outfit Freehills last summer, seven partners have been made up in Australia. These include corporate lawyers Paul Branston in Brisbane and Mark Currell in Sydney; disputes specialists Leon Chung and Hugh Paynter in Sydney; Matthew Bull, a competition associate in Brisbane; and projects associate Daniel Zador and finance lawyer Rowen Cross, both based in Perth.

In other parts of the Asia-Pacific region, Monica Sun was promoted to a corporate and energy partner in Beijing and Siddhartha Sivaramakrishnan is now an equity capital markets and US securities partner in Singapore. In Hong Kong, Simon Chapman was promoted as an international arbitration partner.

Other partners made up internationally included project finance lawyer Olga Davydava in Moscow; Jonathan Mattout, an investigations and corporate crime expert in Paris; Ben Rubinstein, who focuses on disputes in New York, Edouard Thomas, a corporate partner in Paris and Eduardo Soler-Tappa, now a dispute resolution partner in Madrid.

Only four partners were made up in London: Samantha Brown, now a pensions partner, Mike Flockhart in corporate, Barnaby Hinnigan, a non-contentious insurance and financial institutions specialist and Hywel Jenkins, now a dispute resolution and financial services regulatory partner.

‘This first round of promotions since our merger brings to the partnership a hugely talented group of lawyers who have all shown the necessary international mind-set and business development aptitude to take full advantage of the global platform on which we are now operating,’ said Jonathan Scott, senior partner.

Meanwhile Ashurst appointed 12 partners with effect from 1 May, down from 16 last year. The firm made four appointments in corporate – Rob Aird and Karan Dinamani in London, Aian Abbas in Rome and Jonathan Hsui in Hong Kong; three in energy, transport and infrastructure – Manuel Lopéz in Madrid and Nikhil Markanday and Nick Rainsford in London; two in real estate (Matthew Bool and Ben Patton in London); and one in each of banking (Ross Ollerhead, London), dispute resolution (Pierre-Emmanuel Fender, Paris) and tax (Javier Hernández Galante, Madrid).

As of 1 May 2013, 52% of Ashurst’s partnership will be based outside London, not including Ashurst Australia, while 13% of the partners will be female.

david.stevenson@legalease.co.uk

Legal Business

BHP Billiton swaps Ashurst for Herbert Smith Freehills with new legal chief

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BHP Billiton senior executive David Williamson is set to rejoin Ashurst in Australia, where he was a lawyer at legacy firm Blake Dawson for 28 years. It is understood that he will return in June as a partner after spending three years at the mining giant.

Williamson joined the company as head of group legal in 2010 and for almost the last two years also served as chief compliance officer.

Ashurst Australia chairwoman Mary Padbury said: ‘We are delighted that someone of David’s calibre and experience in the Australian legal profession is re-joining the firm. David’s role has placed him in a unique position to understand the impact of the globalisation of legal services and best practice among top-tier firms seeking to address the needs of multinational clients.’

Williamson’s replacement at BHP is Geoff Healy, a litigation partner at Herbert Smith Freehills (HSF), who was the firm’s client relationship partner for BHP and had previously advised the company’s board on corporate governance and disputes.

Joint CEO of HSF, Gavin Bell, said: ‘Geoff is the second Herbert Smith Freehills alumni to hold the top legal counsel role at BHP, the first being Mike Ferraro who is now joint global head of the firm’s corporate practice group.’

The moves follow a significant management shake up at BHP Billiton, instigated by new chief executive Andrew Mackenzie.

david.stevenson@legalease.co.uk

Legal Business

Ashurst expansion continues full throttle

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Ashurst’s recent appetite for international expansion shows no sign of abating, with the firm announcing in November the launch of a new operation in Saudi Arabia.

The firm will soon be able to practise Saudi law after establishing a partnership with Faisal Adnan Baassiri, the former head of legal at Ashurst client Saudi Economic and Development Company (Sedco).

Baassiri has experience working in private practice: he worked at Osama S. Al-Yamani law firm in Jeddah, where the Ashurst office will open under the official name of Law Office of Faisal Baassiri in association with Ashurst.

Legal Business

Ashurst revamps partner capital system

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News that Ashurst is adopting a capital contribution system for partners this year finally brings the City International firm in line with the rest of its major rivals in the City.

As part of the reorganisation, each Ashurst equity partner will be asked to pay in a one-off capital contribution based on the number of equity points they hold. Currently, the firm does not ask partners to pay in capital, but retains a percentage of partner profits each year that is then distributed to partners when they leave or retire. The move is a bid to align capital contributions from lateral hires and homegrown talent, and bring the firm in line with its Australian merger partner Blake Dawson.

Legal Business

Ashurst pushes ahead with Beijing and Seoul launches

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Ashurst is preparing to move into Seoul and is applying for a licence to practise in Beijing, as the firm looks to leverage off its recent tie-up with Australian firm Blake Dawson to bulk up in Asia.

Geoffrey Green, managing partner of Ashurst Asia, said it was vital to grow the firm’s Asian presence. ‘Ashurst has been relatively lightly represented in Asia. Compared to our competitors we are pretty underweight in Asia and given the fact the world is moving further east, that’s where the growth opportunities are,’ he said.