Legal Business

Dealwatch: US firms line up on the $55bn takeover of Time Warner Cable

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Corporate Kirkland & EllisLatham & WatkinsWachtell, Lipton, Rosen & Katz
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In one of the largest M&A deals so far this year, US law firms continued to show their dominance of their home market with six securing roles on the $55bn takeover of Time Warner Cable by Charter Communications.

Charter Communications confirmed yesterday it would acquire Time Warner Cable in a deal valuing the company, whose channel stable includes HBO, CNN, Cartoon Network and DC Comics, at $79bn.

New York-based Steven Cohen, a corporate partner at Wachtell, Lipton, Rosen & Katz since 2000, spearheaded the deal for Charter Communications, the fourth-largest cable operator in the US and which is paying $55bn in stock and cash for the company. Kirkland & Ellis is representing Charter as financing counsel.

Time Warner Cable enlisted Paul, Weiss, Rifkind, Wharton & Garrison, Latham & Watkins and Skadden, Arps, Slate, Meagher & Flom to handle its sale.

New York corporate partners Robert Schumer, Ariel Deckelbaum and Ross Fieldston led the legal team at Paul Weiss while Washington DC-based Latham partners Matthew Brill and James Barker advised Time Warner Cable on strategic and regulatory advice, with Michael Egge handling antitrust matters.

The acquisition was backed by cable mogul John Malone’s Liberty Broadband, Charter’s largest shareholder, which agreed to purchase $4.3bn of Charter shares. Liberty is expected to control 25% of the aggregate voting power of New Charter and is expected to be its largest stockholder. Liberty instructed New York-based Baker Botts corporate partner Buzz McGrath to lead the deal, with support from corporate partner Renee Wilm and tax partner Tamar Stanley.

As part of the new company, Charter also purchased video service provider Bright House Networks for $10.4bn. Sullivan & Cromwell represented Bright House Networks and its owner, Advance/Newhouse Partnership, in connection with the sale. The team at Sullivan was led by New York-based corporate partner Brian Hamilton, with support from tax partner Ronald Creamer and antitrust partner Yvonne Quinn.

tom.moore@legalease.co.uk

Legal Business

Dealwatch: Skadden, Sullivan & Cromwell and Latham act on Nokia’s €15.6bn Alcatel-Lucent takeover

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Corporate Latham & WatkinsSkadden, Arps, Slate, Meagher & FlomSullivan & Cromwell
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US firms Skadden, Arps, Slate, Meagher & Flom and Sullivan & Cromwell have advised on Nokia’s plans to take over Alcatel-Lucent in a transaction that values the French rival at €15.6bn.

Announced today (15 April), Skadden is advising Nokia on the tie-up with a team led by London-based global transactions co-head Scott Simpson; Paris-based Armand Grumberg, who heads the firm’s European M&A practice; and London corporate partner Michal Berkner. The cross-border team further includes partners Ryan Junck, Jose Esteves, Fred Depoortere, Steve Sunshine, Matthew Hendrickson, Ivan Schlager and Peter Huang.

Meanwhile, Sullivan & Cromwell partners Rich Morrissey and Gauthier Blanluet are jointly leading for Alcatel. Based in London and Paris respectively, the pair advised alongside London partners Juan Rodriquez and Joram Lietaerte Peerbolt, Palo Alto partner Nader Mousavi and Steve Holley in New York. Alcatel’s board was advised by Latham & Watkins’ Paris partners Patrick Laporte and Pierre-Louis Clero.

The deal, which has already received the French government’s approval, sees Nokia make an offer of 0.55 new Nokia shares for every Alcatel-Lucent share issued in France and the US.

Alcatel-Lucent chief executive Michel Combes said in a statement: ‘A combination of Nokia and Alcatel-Lucent will offer a unique opportunity to create a European champion and global leader in ultra-broadband, IP networking and cloud applications. This transaction comes at the right time to strengthen the European technology industry. The global scale and footprint of the new company will reinforce its presence in the United States and China.’

The proposed transaction, which is expected to close in the first half of 2016, is subject to approval by Nokia’s shareholders, plus other regulatory approvals and conditions.

sarah.downey@legalease.co.uk

Legal Business

Global London: Latham & Watkins sees London revenues jump 20%

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Financial results 2014/15 Latham & Watkins
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Latham & Watkins has joined a pool of strong US firm performances in the City in 2014 and recorded a 20% jump in London office revenues to £163m ($267m) from £135m ($211m) in 2013.

Having proved itself a pace setter with a heavy focus on private equity and funds, Latham’s growth in the City has also seen headcount increase 95% to 296 fee earners and 67 partners over the last five years. Last year saw seven partners join Latham in London, with six arriving from rival firms, including Clifford Chance M&A duo Kem Ihenacho and Tom Evans, and investment funds specialist Nick Benson from Weil, Gotshal & Manges.

The leap makes Latham the highest revenue generator in London for a foreign firm, while following in second is White & Case which enjoyed a robust increase in London revenue to £155m from £140m.

The firm’s UK agenda this year includes the opening of a business services office in Manchester during the first half to meet growing demand in London and Europe.

Latham’s global results announced in March also surged 14% to $2.61bn from $2.29bn in 2013, making it the largest law firm by revenue in the world. Managing partner Bill Voge attributed the growth to global M&A recovery and its clients increasingly using multiple offices.

The firm further posted its highest ever profits per equity partner (PEP), which rose 17% to $2.9m, placing the firm closer to peer Gibson, Dunn & Crutcher, while also bridging the gap with some of New York’s traditional elite, such as Davis Polk & Wardwell and Simpson Thacher & Bartlett.

Other firms in line with robust City growth includes Ropes & Gray which, after increasing its headcount by 17%, saw London revenues rise by 30% in 2014, bringing the figure to around $64m. Weil and Covington & Burling revealed healthy growth rates for their London offices with a 10% rise to $125m from Weil while Covington was up 7% to $64m.

sarah.downey@legalease.co.uk

tom.moore@legalease.co.uk

For more on US firms in London, see Game Over – Global London firms make winning moves as US players secure their breakthrough

Legal Business

Latham halves its offices in the Middle East

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Middle East and Africa DWFLatham & Watkins
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DWF picks Dubai for first international office and puts three-year growth plan in place

With just 35 lawyers spread across four offices, Latham & Watkins admitted last month it had made a mistake in how it launched in the Middle East in 2008, and told staff in Abu Dhabi and Doha that their offices will close by the end of the year with the firm using Dubai and Riyadh to service the region.

Legal Business

Dealwatch: Clifford Chance, Linklaters and Latham advise on $7.7bn Pirelli sale to ChemChina

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Corporate Clifford ChanceLatham & WatkinsLinklaters
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Clifford Chance (CC), Linklaters and Latham & Watkins are advising on the $7.7bn bid by China National Chemical Corp (ChemChina) to buy Italian tire-maker Pirelli, a deal that will give Chinese investors a significant foothold in Italy’s manufacturing industry while signalling continued Chinese investment into Europe.

ChemChina’s tyre-making division China National Tire & Rubber (CNRC) will first buy the 26.2% that Italian holding firm Camfin owns in Pirelli, and will then launch a mandatory takeover bid for the rest.

ChemChina and CNRC have instructed CC to advise on financing issues, as well as local firm Studio Legale Pedersoli e Associati for Italian law advice and Chinese firm Jun He on Chinese law. The deal saw a cross-border team from CC, led by finance partners Charles Adams and Giuseppe de Palma Milan and involving leveraged finance and high-yield partner Michael Dakin in the City and Beijing-based banking and finance partner Maggie Lo.

Linklaters advised private Russian investment company Long Term Investments which will enter into the shareholders agreement after the initial purchase with Milan-based corporate partners Giovanni Pedersoli, Pietro Belloni leading alongside Moscow-based partner Grigory Gadzhiev.

Latham & Watkins led for JP Morgan, which acted as underwriters on the deal, with a team including co-chair of global banking Christopher Kandel, capital markets partner Jeff Lawlis, and Milan-based partners Andrea Novarese and Maria Christina Storchi. Gianni, Origoni, Grippo, Cappelli & Partners provided Italian tax advice.

Local firm Chiomenti advised Pirelli’s holding company Camfin while Lombardi Molinari Segni handled financing aspects.

The deal agreed with Pirelli shareholders on Sunday with China National Tire & Rubber (CNRC), a subsidiary of ChemChina, envisages the ‘integration of the industrial tyre business of Pirelli and certain assets of CNRC, an expansion of Pirelli’s business in Asia, and a potential de-listing of [Milan-listed] Pirelli.’

Chinese investment into Europe hit record levels last year, with FDI transactions doubling to $18bn in 2014 compared to the previous year over 153 separate investments. According to research by Baker & McKenzie, Europe emerged as one of the top destinations for Chinese foreign investment globally, with Italy in second place as one of the top-five countries in 2014 for such investment.

sarah.downey@legalease.co.uk

Legal Business

Consolidation: Latham set to shut Abu Dhabi and Doha offices as it refocuses efforts in Dubai

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Middle East and Africa Latham & Watkins
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Latham & Watkins has internally announced today (18 March) that it will close two offices in the Middle East by the end of the year, shutting down its outposts in Abu Dhabi and Doha, and relocating staff to its Dubai operation.

The closures come seven years after the firm launched in the Middle East with offices in Dubai, Abu Dhabi and Doha, Qatar. Latham plans to wind down its Doha office by 30 June 2015 and its Abu Dhabi office by the end of the year.

The news was announced in those offices this afternoon, with the 11 lawyers based in Abu Dhabi and Doha asked to relocate to Dubai, which the firm hopes to turn into a hub for its work in the Middle East. 

Currently 35 lawyers are operating in the region for the firm but a management team set up to review the firm’s strategy in the Middle East concluded that the firm’s offering could be run out of offices in Dubai and Riyadh, Saudi Arabia. The firm has also held talks with over 12 major clients in the last fortnight to ensure the closures would not impact on its business in the region

Villiers Terblanche, the managing partner of the firm’s Dubai, Abu Dhabi and Doha offices, was part of the team running the review and will remain managing partner of the enlarged Dubai office. The firm’s office in Riyadh, which opened in 2010 though an association with the Law Office of Mohammed Al-Sheikh, will not be impacted.

London-based Bill Voge, chair and managing partner at Latham, told Legal Business: ‘I personally had several calls with top clients in the region to explore the effect on our client service and that gave us the comfort that what we’re doing is not disruptive to our clients. They didn’t view having an office in Doha, when our office in Dubai is an hour’s flight away, as critical. Dubai is only 80 miles down the road from Abu Dhabi too. Consolidation makes sense’

Voge added: ‘We won’t have the Abu Dhabi and Doha offices but the same lawyers will be servicing the same clients.’

In a written statement provided to Legal Business, Terblanche, said: ‘We have a broad practice and diverse client base in the Middle East. By consolidating our practice in the region, we will further strengthen our high value corporate, finance and regulatory practices. In the last five years we have seen the legal market develop quite dramatically – our clients across the region use us increasingly regardless of the location of our lawyers and instead on experience, track record and market knowledge.’

tom.moore@legalease.co.uk

For more analysis of Latham’s global strategy see: The firm most likely – can anything halt Latham’s global rise?

Legal Business

Global London: King & Spalding hires Latham’s Daniel Friel as it builds City office

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Strategic recruitment King & SpaldingLatham & Watkins
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King & Spalding has hired Latham & Watkins’ former European vice chair of tax Daniel Friel, the latest in a number of strategic hires over the last 12 months as it looks to grow its London offering.

Friel has been a partner at Latham since 2006, after joining from Lovells where he had been head of the firm’s international tax practice. It took him just two years to gain a management position at Latham and was appointed European vice chair of tax and benefits in 2008.

With over 20 years of experience advising on tax planning matters on M&A and financing work, Friel becomes King & Spalding’s third tax partner in London. He is most well-known for his work advising private equity clients and sovereign wealth funds, and counts Bain Capital, Carlyle, Qatar Investment Authority and Deutsche Bank as clients, as well as having worked for brewer SAB Miller, ITV and brothers Sir David and Frederick Barclay. He also has experience in handling tax disputes and tax investigations by HMRC.

Commenting on Friel’s arrival, Abraham Shashy, leader of King & Spalding’s tax practice group said: ‘His tax expertise and extensive experience in building European tax practices at his previous firms make him a natural fit to help expand our European tax practices in London, Frankfurt and Paris.’

Friel becomes the 21st partner in King & Spalding’s London office, which pulled in £26.4m in revenue during 2014. His arrival follows that of fellow Latham partner Markus Bauman, a capital markets specialist who is New York-qualified, in November last year.

King & Spalding have secured a number of high profile hires in the past 12 months, including the founder of Berwin Leighton Paisner’s advocacy unit Stuart Isaacs QC in January this year and Linklaters partner Thomas O’Neill in November last year. The firm also launched a restructuring practice at the end of last year with the hire of Elisabeth Baltay from Bingham McCutchen’s collapsed London office.

Friel started his career as a chartered accountant with Coopers & Lybrand, which later went on to become PwC.

tom.moore@legalease.co.uk

Legal Business

Latham leads the way with $300m revenue hike as US elite posts robust 2014 results

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Financial results 2014 Latham & Watkins
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Jaishree Kalia assesses the winners and losers as the US reporting season kicks off

The broad-based economic recovery in the US proved a boon to many leading advisers in 2014, with firms enjoying a resurgence in corporate work, and robust levels of disputes and regulatory activity.

Legal Business

Under new leadership: Sadanandan replaces Nick Cline as Latham’s London chief

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Leadership Latham & Watkins
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After five years in the post, and having nearly doubled the size of the office, Latham & Watkins‘ London head Nick Cline has been replaced by finance partner Jay Sadanandan (pictured).

Cline finished a five-year term as London head at the end of February and Sadanandan, who was made deputy office managing partner in March 2013, has been selected to replace him.

Sadanandan arrived at Latham just before Cline took charge of the office, having been part of a four-partner team to arrive from White & Case in January 2010. That move was the biggest lateral hire in the City that year, spearheaded by Latham’s co-chair of global banking Christopher Kandel, and catapulted Latham’s growth in capital markets. Sam Hamilton, now chair of Latham’s finance department in London, and Brian Conway, who has since moved to Jones Day, were the other partners to make the switch.

Since her arrival, Cline has helped to guide Latham’s London office from 156 lawyers to 295 lawyers, having successfully targeted growth in finance and private equity.

Sadanandan has held a number of management roles at Latham and served on the firm’s 15-strong succession committee that oversaw the retirement of longstanding global chair and managing partner Bob Dell last year. Project finance partner Bill Voge was selected to succeed Dell and took charge on 1 January.

Sadanandan is part of an acquisition finance team that The Legal 500 ranks as a first-tier operation and counts investment bank Goldman Sachs and European private equity house Permira among her clients. Sadanandan’s work for another private equity house, Onex, saw her advise on the largest European buyout in 2014 after arranging four finance facilities to purchase Swiss packaging company SIG Combibloc Group.

Employment partner Catherine Drinnan has succeeded Sadanandan as deputy office managing partner. The pair were unveiled as London’s new management during the firm’s annual partners meeting in the City last week, which concluded shortly after Latham became the largest law firm in the world

‘Nick has done a tremendous job leading the office over the past five years,’ said London-based Voge. ‘The practice has thrived under his superb leadership, and we thank him for his dedicated service. London is a bright spot for the firm and we have ambitious plans for further growth. Jay and Catherine are dynamic and energetic leaders with the right talents to lead the office at this exciting time.’

Cline added: ‘We’ve made big strides in the London market and are well-positioned for further growth and success. It will be great to have Jay and Catherine leading the continued expansion of our London office.’

tom.moore@legalease.co.uk

For more on Latham & Watkins’ ambitions see: The firm most likely – can anything halt Latham’s global rise?

Legal Business

Mishcon, Latham and OC up against City elite as shortlists announced for 2015 Legal Business Awards

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Latham & WatkinsMishcon de ReyaOsborne Clarke
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Clifford Chance (CC), Mishcon de Reya, Osborne Clarke and DLA Piper are among those vying to win prizes at what promises to be the largest-ever Legal Business Awards.

The firms are among those nominated as we unveil the shortlists today (9 March) for the awards ahead of the ceremony, which will be held on 24 March at the Grosvenor House Hotel in central London.

Mishcon and OC are joined by Latham & Watkins, Travers Smith, Macfarlanes and Watson Farley & Williams in contention for the biggest award of the night: Law Firm of the Year. Mishcon managing partner Kevin Gold is also up against OC’s Simon Beswick and Stephenson Harwood’s Sharon White as Management Partner of the Year.

CC, meanwhile, features heavily in the major practice awards, including Finance Team of the Year, where the firm is shortlisted alongside Allen & Overy, Herbert Smith Freehills (HSF), Norton Rose Fulbright, Reed Smith, Sidley Austin and Simmons & Simmons.

The shortlist for Corporate Team of the Year is Freshfields Bruckhaus Deringer, Covington & Burling, HSF, Linklaters, Macfarlanes, OC and Slaughter and May.

This year we introduce two new categories: Boutique of the Year and Legal Innovator. The former sees Candey, Curtis Davis Garrard, Signature Litigation, Volterra Fietta, Wiggin and Zyda Law compete, while the innovation shortlist is Berwin Leighton Paisner, CMS Cameron McKenna, DWF, Mishcon, Pinsent Masons and Wiggin.

Bluechip legal teams up for the main in-house award are AIG, Bank of America Merrill Lynch, Coca-Cola Enterprises, Royal Mail, SSE and Telefónica UK.

The night, which is being hosted by distinguished broadcaster Jeremy Paxman, is set to attract well over 1,000 guests and will be preceded by a reception to mark this year’s GC Power List report.

In a special award to mark the 25th anniversary of Legal Business, the magazine will also name a single individual who has made an outstanding contribution to the profession over that period.

In a further change this year, Legal Business has introduced an external judging panel to increase scrutiny. The distinguished panel of judges comprise a range of senior general counsel: Michael Shaw (Barclays); Andrew Whittaker (Lloyds Banking Group); Robert Ivens (Marks & Spencer); Adrian de Souza (Land Securities); Siobhan Moriarty (Diageo); Michael Herlihy (Smiths Group); Kirsty Cooper (Aviva); Claire Chapman (Daily Mail and General Trust) and Alison Kay (National Grid). Also on the panel, alongside editor-in-chief Alex Novarese and managing editor Mark McAteer, are Jomati founder Tony Williams and Paul Gilbert of LBC Wise Counsel.

alex.novarese@legalease.co.uk

The Legal Business Awards 2015 shortlists:


TMT Team of the Year

Bristows

Covington & Burling

Harbottle & Lewis

Royal Mail

RPC

Simmons & Simmons

Taylor Wessing

 

Restructuring Team of the Year

Allen & Overy

Cleary Gottlieb Steen & Hamilton

Clifford Chance

DLA Piper

Herbert Smith Freehills

Slaughter and May

 

Competition Team of the Year

Ashurst

Berwin Leighton Paisner

Cleary Gottlieb Steen & Hamilton

Freshfields Bruckhaus Deringer

King & Wood Mallesons

Shearman & Sterling

 

Energy and Infrastructure Team of the Year

Dentons

DLA Piper

Freshfields Bruckhaus Deringer

Herbert Smith Freehills

Hogan Lovells

Slaughter and May

 

Dispute Resolution Team of the Year

Eversheds

Freshfields Bruckhaus Deringer

Hausfeld

Mishcon de Reya

Weil, Gotshal & Manges

White & Case

Wilmer Cutler Pickering Hale and Dorr

 

Finance Team of the Year

Allen & Overy

Clifford Chance

Herbert Smith Freehills

Norton Rose Fulbright

Reed Smith

Sidley Austin

Simmons & Simmons

 

Private Client Team of the year

Addleshaw Goddard

Boodle Hatfield

Burges Salmon

Mills & Reeve

Taylor Wessing

Withers

 

Insurance Team of the Year

Ashurst

Clifford Chance

DAC Beachcroft

Hogan Lovells

Pinsent Masons

Simmons & Simmons

 

Corporate Team of the Year

Covington & Burling

Freshfields Bruckhaus Deringer

Herbert Smith Freehills

Linklaters

Macfarlanes

Osborne Clarke

Slaughter and May

 

Private Equity Team of the Year

Latham & Watkins

Linklaters

Shearman & Sterling

Travers Smith

Weil, Gotshal & Manges

 

Real Estate Team of the Year

Addleshaw Goddard

Ashurst

Baker & McKenzie

Clyde & Co

Hogan Lovells

K&L Gates

Wragge Lawrence Graham & Co

 

Boutique of the Year

Candey

Curtis Davis Garrard

Signature Litigation

Volterra Fietta

Wiggin

Zyda Law

 

Lawyer of the Year

Bob Dell, Latham & Watkins

Sir Nigel Knowles, DLA Piper

Rosemary Martin, Vodafone

Angus McBride, Kingsley Napley

 

CSR Programme of the Year

Allen & Overy

Baker & McKenzie

Clyde & Co

Dentons

Paul Hastings

Reed Smith

White & Case

 

International Firm of the Year

Garrigues

Goltsblat BLP

Integrites

Matheson

NCTM

Noerr

 

Rising Star In-House Counsel of the Year

Kent Dreadon, Telefónica UK

Martin Graham, Oaktree

Howard Landes, BG Group

Jenny Lowe, Aggregate Industries

Alice Marsden, Thomas Cook

Kumar Tewari, Lloyds Banking Group

 

In-House Team of the Year

AIG Europe

Bank of America Merrill Lynch

Coca-Cola Enterprises

Royal Mail

SSE

Telefónica UK

 

Management Partner of the Year

Simon Beswick, Osborne Clarke

Bill Drummond, Brodies

Kevin Gold, Mishcon de Reya

Bryan Hughes, Eversheds

Sharon White, Stephenson Harwood

 

US Law Firm of the Year

Gibson, Dunn & Crutcher

Jones Day

Morgan, Lewis & Bockius

Paul Hastings

Quinn Emanuel Urquhart & Sullivan

Ropes & Gray

Simpson Thacher & Bartlett

 

Legal Innovator of the Year

Berwin Leighton Paisner

CMS Cameron McKenna

DWF

Mishcon de Reya

Pinsent Masons

Wiggin

 

Legal Technology Team of the Year

Ashurst

Axiom

Keoghs

King & Wood Mallesons

Wragge Lawrence Graham & Co

 

National/Regional Firm of the Year

Bond Dickinson

Brodies

DWF

Foot Anstey

Mills & Reeve

Stevens & Bolton

TLT

 

Outstanding Individual Achievement – 25 Years

To be announced by Legal Business at the ceremony

 

Law Firm of the Year

Latham & Watkins

Macfarlanes

Mishcon de Reya

Osborne Clarke

Travers Smith

Watson Farley & Williams