Legal Business

Dealwatch: Phones 4u, with £105m profit and ‘cash in the bank’, enters administration with CC, A&O and CMS acting

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Corporate Allen & OveryClifford ChanceCMS
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Allen & Overy (A&O), Clifford Chance and CMS Cameron McKenna have all landed key roles advising on the administration of high street retailer Phones4u.

With PwC acting as administrator, the company went into administration on Sunday [14 September] after the withdrawal of EE, O2 and Vodafone products from its stores, placing 5,596 jobs and more than 700 outlets at risk.

Owned by pan-European private equity house BC Partners, a statement from the company said on Sunday: ‘Following the decisions of Vodafone and EE, Phones 4u has no option but to seek the appointment of administrators from PwC’.

The statement continued:’Phones 4u is a profitable, well-managed business with 550 standalone stores, employing 5,596 people. The company has a turnover of over £1bn, EBITDA of £105m for 2013 and significant cash in the bank.’

A&O restructuring and corporate insolvency partner Ian Field is leading a team advising Phones4u alongside the firm’s managing partner of the global restructuring and insolvency group Mark Sterling.

Clifford Chance is understood to be advising the lenders of the company’s rolling credit facility on the administration with a team led by finance partner Charles Cochrane.

CMS Cameron McKenna is also advising on the mandate, and is acting for the security trustee, ING Bank, with corporate recovery and restructuring partner Martin Brown advising.

Shortly before the administration, Moody’s downgraded its outlook over the company’s ability to repay its debts following Vodafone’s decision to not renew its network agreement with Phones 4u, which represented more than 20% of the latter’s revenues and gross profit.

Sarah.downey@legalease.co.uk

Legal Business

Financial results 2013/14: CMS unveils flat revenues with profit up 3.3%

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Financial results 2013/14 CMS
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CMS has unveiled a marginal increase in revenue for the 2013/14 financial year, with turnover up by under 1% from €837.7m to €842.1m for the year ending 31 December 2013.

The 3,000 fee-earner firm said today (5 June) that its profits during that period rose moderately by 3.3% from the previous year, although the firm has yet to provide its underlying figures. 

The results, which come after the firm’s merger with Scottish firm Dundas & Wilson at the end of 2013, follow a 2011/12 revenue increase of 5.1%. However, CMS executive chairman Cornelius Brandi said: ‘2013 was a particularly good year for CMS. Despite the global economic situation, we managed to increase our revenue and our profitability.

‘We established an office in Istanbul which has in its first six months of existence proved successful and we signed a co-operation agreement with energy specialists Woodhouse Lorente Ludlow in Mexico.

‘All of these are constructive developments that show CMS as an attractive partnering option within the legal industry. We are proud that in 15 years we have built the largest legal footprint in Europe and are consistently ranked number one for M&A deal volume in the region.

‘CMS is in a very strong competitive position in our key sectors of energy, financial services, life sciences and TMT, where we executed some highly complex cross-border matters in 2013. We feel confident that there are opportunities ahead as we move towards a more positive economic outlook across the world.’

Standout deals include advising Telefónica Deutschland on its acquisition of E-Plus for €3.7bn and acting for Statoil on the divestment of UK and Norwegian Continental Shelf assets to OMV for $2.65bn.

Other UK firms to have disclosed their 2013/14 financial results include Berwin Leighton Paisner, where revenue has increased by 6%, and Charles Russell, which has seen a 7% rise in turnover for the period.

jaishree.kalia@legalease.co.uk

Legal Business

Redundancy watch: CMS and Dundas cut 60 support staff roles

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Job cuts CMSCMS UK
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CMS and Dundas & Wilson confirmed today (30 April) that they have made 60 staff redundant ahead of their £300m merger, set to go live tomorrow.

The redundancies follow the duo’s announcement in mid-March that 60 support staff roles were at risk, including 40 roles at Dundas & Wilson, while around 20 jobs were at risk within CMS and its third party suppliers Integreon, Initial and Xerox. CMS confirmed at the time there would be no impact on any fee-earning roles.

In a joint statement today a spokesperson said: ‘There has been considerable work going on as we prepare for the combination of CMS with Dundas & Wilson on the 1 May. With any combination it is regrettably to be expected that there are some duplication of roles resulting in redundancy.

‘While there is no reduction in the number of lawyers, we can confirm that as we anticipated about 60 support roles have been made redundant with two thirds of those roles within Dundas & Wilson and one third within CMS and its third party suppliers.’

The move comes after CMS completed a redundancy programme in 2013 that cut 37 jobs across fee-earner and support roles.

Other firms to have made redundancies this year include Ince & Co and DWF, which, following a series of mergers, last month made 19 business services staff in its finance department redundant following the conclusion of a consultation which put 21 at risk in March.

Sarah.downey@legalease.co.uk

For more coverage of CMS see ‘Buy-side story: how CMS and Dundas & Wilson finalised their surprise merger’

Legal Business

Partner promotions: CMS promotes 30; Clyde & Co nine; Lawrence Graham five

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Partnership promotions Clyde & CoCMSGowling WLG
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The latest round of partner promotions among the top 20 UK firms has this week seen CMS Cameron McKenna announce the appointment of 30 associates to partner across Europe, including five in the UK, while Clyde & Co has promoted nine and, outside the top 20, Lawrence Graham has made up five new partners.

While CMS has roughly maintained its promotion levels of last year, when 31 associates were made up, the figure nonetheless constitutes a significant drop when compared with 2012, when that figure was 50.

The promotions were made across areas including banking and international finance; corporate; disputes; energy; employment; and real estate. The firm also awarded a promotion to new merger partner Dundas & Wilson, from which real estate consultant Margaret McLean has been made up.

She is one of five UK partners promoted, a dip compared to the nine UK associates made up last year.

UK senior partner Penelope Warne said: ‘We are delighted to welcome our new partners. Including our colleagues from Dundas & Wilson, we will have over 830 partners globally.’

Meanwhile, Clydes promotion of nine to partner is an increase on the 1,081-lawyer firm’s promotion last year of six. This is said by the firm to reflect its continuous growth and financial performance, which last year saw a healthy 17% revenue increase to £336.6m while profit per equity partner was up 4% to £580,000. The promotions are effective from 1 May 2014.

The promotions fall heavily in the firm’s insurance practice, as well as in its employment; real estate; disputes; employment; corporate; and finance practices. As of 1 May, the firm will have a 307-strong partnership.

Clydes senior partner James Burns said: ‘These promotions demonstrate our continuing growth across our global network and the benefits of our focus on our core sectors. The seven promotions within insurance show our strength across all classes from excess liability, through professional and financial lines to personal injury and clinical negligence. Our breadth of coverage of the trade and marine market is also reflected but so too is our continuing growth across dispute resolution, real estate, project finance and employment, already one of, if not the, largest in the City.’

Three of the promotions were in the EMEA region and Burns added: ‘We continue to grow our leading practice in the Middle East and our presence in Africa and are pleased to see the development within the Clyde’s model of partners who have joined us relatively recently through our mergers.’

Elsewhere, Lawrence Graham has promoted five senior associates to partner across its real estate; disputes; private capital; and corporate practice groups. The promotions are announced as the firm’s £171m merger with Midlands giant Wragge & Co is set to go live this Thursday (1 May).

Managing partner Hugh Maule, said: ‘All five lawyers have demonstrated excellent client development and management skills. They have each made a significant contribution to the success of their practice groups, all of which are highly regarded within their sector. I am very proud that they have all been successful in their respective fields and am confident that they will continue to inspire others as part of Wragge Lawrence Graham & Co from 1 May.’

sarah.downey@legalease.co.uk

The full list of partner promotions:

CMS:

Banking & international finance

Marc-Etienne Sébire (France)

Simona Marin (Romania)

Beltrán Gómez de Zayas (Spain)

Corporate

Arnaud Hugot (France)

Lars Eckhoff (Germany)

Dr. Eckart Gottschalk (Germany)

Dr. Martina Schmid (Germany)

Ellen Gielen (Netherlands)

Matteo Ciminelli (Italy)

Commercial, regulatory and disputes

Assen Georgiev (Bulgaria)

Martin Wodraschke (Hungary)

Clemens von Zedtwitz (Switzerland)

Energy, projects and construction

Lukas Janicek (Czech Republic)

Richard Sinclair (UK)

Phillip Ashley (UK)

Loredana Mihailescu (Romania)

Employment

Gaël Chuffart (Belgium)

Dr. Nina Hartmann (Germany)

Dr. Tobias Polloczek (Germany)

Valeriy Fedoreev (Russia)

Insolvency

Dr. Charlotte Louise Schildt (Germany)

Life sciences

Dr Monika Ploier (Austria)

Dr. Thomas Hirse (Germany)

Litigation

Bas Baks (Netherlands)

Pensions

Maria Rodia (UK)

Real estate

Przemyslaw Kucharski (Poland)

Jules Needleman (UK)

Margaret McLean (UK)

Tax

Romain Marsella (France)

Technology, media & telecoms

Florian Dietrich (Germany)

Dr. Ole Jani (Germany)


Clyde & Co:

Keith Conway – Disputes, London

Keith Hutchison – Disputes, Dubai

Keith Guerts – Disputes, Toronto

Simon Jackson – Insurance (energy, marine), London

Annabelle Redman – Real estate, London

Charles Urquhart – Employment, London

Prarthna Chaddha – Corporate, Dubai

Peter Kasanda – Finance, Dar es Salaam

 

Lawrence Graham:

Clive Chalkley, real estate, London

Alex Jay, disputes, London

Daniel Ugur, private capital, London and Singapore

Sam Gray, corporate, London

Kristian Rogers, corporate, London

Legal Business

CMS extends Middle East footprint with Oman launch

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Middle East and Africa CMS
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CMS will join only a handful of international law firms with a presence in Oman, as the top 10 LB100 network today (10 March) announces a new office in Muscat, its second office in the Gulf region.

With an initial focus on energy, projects and financial institutions clients, the team leading the launch include Aberdeen-based energy, projects and construction practice group head Stephen Millar and Dubai managing partner Matthew Culver, as well as new hires Ben Ewing from Akin Gump Strauss Hauer & Feld and Amur Al Rashdi from local firm Khalifa Al Hinai, both who join as consultants and will be based in Muscat.

Oman’s legal market has stayed strong despite ongoing instability in the Middle East, attracting foreign investors through its focus on infrastructure, power and water projects. Early last year saw Addleshaw Goddard launch via a tie-up with local firm Nasser Al Habsi. Other players in the Sultanate include Dentons, DLA Piper and Trowers & Hamlins, which in January announced it was pulling out of Egypt, due to continued uncertainty in light of the political upheaval.

Oman is CMS’ second Middle East office after Dubai.

Millar said: ‘The energy, projects and financial services sectors are growing in Oman and throughout the Middle East. They are strategically important areas for our clients and priority sectors for CMS. Our strategy is to be where our clients need us to be, and a presence in Oman complements our global offering.’

This latest move by CMS to grow its international offering follows the launch of an office in Istanbul in November, where the firm relocated Döne Yalçin and John Fitzpatrick to lead a team offering services in project finance and infrastructure work, with further plans to expand in the fields of energy, capital markets, and M&A.

sarah.downey@legalease.co.uk

Legal Business

West meets East – CMS latest to announce Istanbul office launch

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Middle East and Africa CMS
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The latest move by CMS to enhance its international offering lies at the cross roads between Europe and Asia, with the Global 100 firm today (7 Nov) announcing that it is to launch an office in Istanbul – the latest western firm to open in one of the world’s fastest-growing economies.

As partners Döne Yalçin and John Fitzpatrick relocate to Istanbul to lead the new venture, the office will offer services in project finance and infrastructure work, with further plans to expand in the fields of energy, capital markets, and M&A.

CMS is the latest of a string international law firms to have recently established a presence in Turkey in the last year. In February, Pinsent Masons entered into a joint venture with local lawyer Noyan Göksu – formerly head of arbitration at Turkey’s largest law firm Hergüner Bilgen Özeke – while US firm Edwards Wildman received approval from the Istanbul Bar Association to operate as a foreign law firm, offering services in cross-border private equity and corporate M&A. In addition, it confirmed an association with local boutique Ismen in early September.

CMS also operates Turkish desks in the Netherlands, Germany and Austria. Yalçin, former head of the Turkish desk at CMS Vienna, said: ‘Being on the ground in Istanbul gives CMS an excellent opportunity to expand on the work we do for clients in Turkey. With strong links across CMS and with dedicated Turkish desks in four locations, Turkish clients have access to full-service expertise across the 31 jurisdictions in which CMS has a presence.’

Corporate partner John Fitzpatrick explained that the region is of increasing interest to international companies and investors.

‘Opening this office in Istanbul is proof of CMS’ commitment to providing first-rate advice to our clients in key jurisdictions,’ he added. ‘CMS lawyers have been working extensively on Turkey related matters for many years. Over time, we have developed a deep understanding of how to structure and complete transactions relating to Turkey, with a particular focus on cross border and international transactions.’

sarah.downey@legalease.co.uk

Legal Business

Trainee retention: Eversheds, Clyde & Co, CMS Cameron McKenna and Simmons reveal rates

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Trainee retention Clyde & CoCMSEversheds SutherlandSimmons & Simmons
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The number of training contracts being offered by City firms may have dropped by over 20% but the recently revealed retention rates of Eversheds, Clyde & Co, CMS Cameron McKenna and Maclay Murray & Spens remain high, although Simmons & Simmons has slid to 71%.

Eversheds, which yesterday (10 September) posted an 87% retention rate, offered 40 out of 45 newly-qualified (NQ) lawyers a permanent role at the firm, which 38 accepted. The figures mirror last autumn’s retention round, when the same number of NQs were kept on.

Angus McGregor, HR director at Eversheds, congratulated the successful NQs, commenting: ‘Our training contract is designed to extend the experience and skill sets of junior lawyers across multiple industries and sectors, preparing them for the modern legal world.’

Elsewhere, 1081-lawyer Clyde & Co has reported that it will retain 95% of its trainees, with 36 out of 37 trainees accepting a job at the firm. This follows an equally high retention rate of 94% this time last year.

Meanwhile, top ten LB100 firm CMS Cameron McKenna has announced it will hold onto 28 out of 34 NQs this September, equating to a retention rate of 82%. Of those retained, 23 will join the City office, while two will move to the insolvency and recovery group in Bristol. The others bolster the firm’s practice in Scotland, with one joining the real estate and finance practice in Edinburgh, a further lawyer heading to the Edinburgh office’s disputes department, and the last joining the employment team in Aberdeen. CMS unveiled a similar result last year of 84%.

However, Simmons & Simmons has revealed a retention rate of 71%, a drop on last year’s figure of 89%. The firm offered 17 out of a total of 24 trainees a position, with the vast majority taking on roles in the City.

Outside of the City firms, Weil Gotshal & Manges’ London arm has offered jobs to four out of six NQs, a retention result of 67%. This marks a slide on last year’s figure of 73%.

The beleaguered Scottish market has also seen Maclay Murray & Spens (MMS) offer 15 out of 19 NQ positions this year across its London, Glasgow, Edinburgh and Aberdeen offices.

MMS chief executive Chris Smylie said: ‘We are delighted to have been able to offer so many opportunities to newly qualified lawyers. It signals our confidence in the future, as we further build our strategy for growth, following last year’s root and branch review. This follows on from our recruitment of three lateral hires at partner level in August and the promotion of two partners from associate in June.’

However, at Dundas & Wilson, out of 21 trainees who applied for positions with the firm, 14 have accepted offers to stay after they qualify.

sarah.downey@legalbusiness.co.uk

Legal Business

Deal watch: CMS, Matheson and Akin Gump act on high-profile international deals

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Corporate Akin Gump Strauss Hauer & FeldCMSMatheson
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As international M&A catches the headlines, CMS Cameron McKenna has advised a consortium owned by Hong Kong tycoon Li Ka-shing on a HK$9.7 billion dollar acquisition of the Netherlands’ largest waste management group AVR Afvalverwerking.

CMS London corporate partner Charles Currier and Amsterdam partners Martika Jonk and Cecilia van der Weijden led the multi-disciplinary team advising Cheung Kong Infrastructure Consortium (CKI). Last year CKI acquired MGN Gas Networks for $1bn, also advised by CMS.

CKI is the largest publicly listed infrastructure company in Hong Kong for energy, transportation, water, waste management and infrastructure-related business.

The acquisition of AVR, which is subject to regulatory approval, is considered to be one of the biggest in continental Europe by a Li company.

Currier said: ‘We were delighted to act for the consortium on its first investment in continental Europe and for the opportunity to continue to build on the excellent relationship we have developed with them.’

Also advising a Ka-shing company is Dublin-headquartered Matheson, which confirmed yesterday (25 June) that it has advised Hutchison Whampoa-owned Three Ireland on its €780 million acquisition of Telefonica Ireland, which trades as O2 Ireland. A further additional deferred payment of €70m is payable on hitting agreed targets.

Telefonica is Europe’s second largest communications company by market value after Vodafone. The Spanish-headquartered company has sold its Irish unit as it attempts to cut its debt down to €47bn this year – which in 2011 peaked at €56.3bn.

In another high profile international deal, US Akin Gump Strauss Hauer & Feld has advised long-standing client ExxonMobil on an agreement with Russian state-owned oil company Rosneft, to establish a joint Arctic Research Center in Russia as well as a technology-sharing agreement supporting the two companies’ joint ventures worldwide.

International corporate transactions partners Richard Wilkie and Alexey Kondratchik in Akin Gump’s Moscow office led the team advising ExxonMobil, supported by Moscow corporate counsel Oleg Isaev.

Last year the US firm advised ExxonMobil on a joint project with Rosneft to access oil reserves at the Bazhenov and Achimov formations in Western Siberia, under which Exxon provided initial financing of $300m. The deals follow a strategic co-operation agreement between the two companies to jointly explore for and develop natural gas in Russia.

In 2011 BP famously entered into a similar arrangement with Rosneft, leading to arbitration with TNK-BP joint venture partner Renova, advised by Akin Gump.

david.stevenson@legalease.co.uk

sarah.downey@legalease.co.uk

Legal Business

Surge of law firm openings in revitalised Middle East

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Middle East and Africa Cleary Gottlieb Steen & HamiltonCMS
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The resurgence of commercial activity in the Middle East is prompting international law firms to strengthen their presence in the region, with Cleary Gottlieb Steen & Hamilton and CMS announcing their first regional offices within a week of each other.

Cleary announced at the beginning of September that it would be opening its first Middle East office after obtaining a licence from the Abu Dhabi Executive Council in the summer. CMS group opened its office in Dubai on 23 September, adding to its offerings in Iraq and Lebanon.

Legal Business

It’s all in a name: why branding matters

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Restructuring Clyde & CoCMSPinsent Masons
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Over the past few months CMS Cameron McKenna’s managing partner Duncan Weston has been on a charm offensive. Through lunches and presentations, he has been trying to convince the legal press that the European-wide CMS network is not just a disparate alliance, but is in fact one firm, no different to, say, Norton Rose or Squire Sanders.