Deus ex machina: Linklaters signs up Lloyds and RBS to ring-fencing software as firm develops brace of AI products

Linklaters has launched a pair of artificial intelligence (AI) products in the latest innovation push for the Magic Circle firm, including a tool to navigate ring-fencing reforms for core banking clients.

Both Lloyds Banking Group and The Royal Bank of Scotland (RBS) have used the firm’s LinkRFI software, which is used to classify thousands of customer names in a fraction of the time it would take a human to complete. The classifications are needed to help ensure separation between banks’ retail and investment arms, to comply with ring-fencing reforms introduced by the Bank of England.

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New DLA finance head to push collaboration pay incentives

DLA Piper’s finance partners are being encouraged to participate in cross-office and cross-practice collaboration within a new framework called Project Connect, led by Martin Bartlam, who takes over as the firm’s international finance head on 1 May.

Collaboration, which will be measured through statistics as well as the behaviours of individual partners, will be part of the firm’s existing remuneration structure, not isolated in the sense of a bonus pot. Partners outside the finance and projects practice are not part of the programme.

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Burness Paull faces full trial after legacy firm conflict breach

Lawyers involved to face professional complaint

A $210m claim against Burness Paull will go to a full Scottish civil trial after Edinburgh’s Court of Session found last month that legacy firm Paull & Williamsons had acted in breach of conflict of interest rules. While the court found that the firm did not act fraudulently, the case is now likely to move to a full hearing in early 2018.

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US financials: Milbank leads with 11% rise in turnover as Reed Smith and Cadwalader stall

Madeleine Farman looks at the front runners and non-starters as reporting season kicks off

As the US financial reporting season begins in earnest, Milbank, Tweed, Hadley & McCloy leads the pack for turnover growth, while Reed Smith and Cadwalader, Wickersham & Taft both suffered a drop in revenues.

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Breaking the mould: Slaughters bolsters pensions practice with first-ever London lateral

HSF’s Schaffer to join Magic Circle firm later this year

After first breaking its duck three years ago in Hong Kong with the hire of Morrison & Foerster’s co-head of China capital markets John Moore, last month Slaughter and May caught the eye by making its first-ever lateral hire in London.

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‘Hands on’: Professionalising support services key for Travers as Hale begins final term as senior partner

An ambition to improve business services at Travers Smith has seen senior partner Chris Hale re-elected, after completing his first term of four years.

Hale, who in 2013 amended the firm’s partnership deed to restrict his own term in the job, will retire from the senior partner post in 2019 after a further two-year stint. In the past, senior partners had a three-year term, but there was no limit to the number of terms one could complete.

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‘Unclear how it works’: BLP launches challenge as business rates look set to top £1bn a year

Changes could mean a one-third increase for City offices

With bank debt and real estate costs two of the most common causes of law firm distress, increases in business rates were met with concern by real estate professionals and lawyers in the Square Mile last month.

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Q&A: RPC’s new managing partner talks strategy, international expansion and tech

James Miller

With long-term managing partner Jonathan Watmough stepping down in December last year, insurance head James Miller has taken over the reins at RPC. Legal Business caught up with him to discuss the priorities for the new leader.

What is your immediate strategy for RPC?

So far it has been business as usual. I’m very lucky to come in on the back of 11.5% turnover growth over five years. Insurance has been one of our core strengths and we will continue to invest there, but my focus now is on the whole firm. Really we try to invest in people: if we felt we were under strength we would hire, but I am quite happy with our strategic balance.

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Ashurst Paris corporate team chooses Freshfields as Magic Circle firm reinvigorates offering

Madeleine Farman on a rare team move between London-based international players

In one of the most significant team hires between major City players for some time, a group of five Paris corporate partners – collectively responsible for a book of business worth £8m – is moving from Ashurst to Freshfields Bruckhaus Deringer. Continue reading “Ashurst Paris corporate team chooses Freshfields as Magic Circle firm reinvigorates offering”

‘Sign of things to come’: Shell leads on sale of own North Sea assets

Shell’s in-house legal team recently took the lead on the sale of $3.8bn worth of its own North Sea oil and gas assets, with help from panel firm Clifford Chance (CC), as part of a debt reduction push following its takeover of BG Group.

The deal sees British investment firm Chrysaor Holdings pay an initial sum of $3bn plus an additional payment of up to $600m, subject to commodity prices, and $180m for future discoveries. A Shell spokesperson said: ‘This approach to legal delivery, with a Shell team in the lead and backed up by limited external legal support, is typical for us. It allows our in-house business lawyers to work on the most complex, high-value projects, drawing on the expertise of a wide network of internal legal experts, and delivering value to the business at competitive cost and appropriate risk profile.’

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Linklaters alumni line up opposite former firm in Reckitt’s $16bn takeover of Mead Johnson

In the first transatlantic merger to make headlines so far in 2017, Kirkland & Ellis partners David Holdsworth and Paula Riedel have lined up opposite their old firm Linklaters on Reckitt Benckiser (RB)’s $16.7bn takeover of Mead Johnson & Company.

Kirkland fielded a transatlantic team to advise US-based Mead Johnson, the baby formula manufacturer, which had sales of $3.7bn in 2016. Mead and RB confirmed the deal on 10 February, which should complete in the third quarter of 2017.

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East side story: NRF adds Manhattan credibility with projects-driven Chadbourne tie-up

Norton Rose Fulbright (NRF) has pulled off its second US merger, this time with New York-based Chadbourne & Parke, giving the Global 100 firm much-needed bench strength in Manhattan and project finance for what will be a $2bn-revenue firm.

The move will add considerable east coast capability to NRF, which the firm has lacked since its combination with Texas firm Fulbright & Jaworski in 2013, and is due to go live in the second quarter of 2017. The majority of Chadbourne lawyers will join NRF’s US business, while London partners are expected to join the Norton Rose Fulbright LLP within the Swiss Verein, which comprises the legacy Norton Rose business.

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Clyde & Co continues rapid US expansion after opening Washington and Chicago offices

Office launches follow team hire from Troutman earlier this year

Clyde & Co continues to look for opportunities to expand in the US following the opening of new Chicago and Washington DC offices, after taking on a team of ten lawyers from Global 100 firm Troutman Sanders at the end of January.

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Deal watch: Corporate activity in March 2017

SLAUGHTERS TAKES LEAD ON PHARMA MEGA DEAL

Slaughter and May has acted opposite Cravath, Swaine & Moore as Johnson & Johnson made a $30bn offer to buy Swiss-based biopharma company Actelion Pharmaceuticals earlier this year. Slaughters advised along with Zürich-based Niederer Kraft & Frey and Wachtell, Lipton, Rosen & Katz for the takeover target, as Cravath advised Johnson.

 

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Growth spurts: Can Goodwin Procter’s impressive string of European hires hold it together?

Madeleine Farman and Victoria Young sit down with Europe chair David Evans (pictured) to discuss laterals, integration and the next steps in the region

After its recent haul of new hires, it is hard to believe Goodwin Procter’s 119-lawyer offering in Europe began in 2011 with one partner, a telephone and a desk in London. Europe chair David Evans joined Goodwin after a 26-year stint at Ashurst, where he had served as a board member. One month later he was followed by colleague Samantha Lake Coghlan, a real estate funds partner. It was nearly a year before they gained their next lateral partner, Linklaters’ global co-head of real estate Joe Conder.

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Shattered – The final days of ‘SJ Berwin’

King & Wood Mallesons Shattered

‘When I initiated discussions on our culture at partners’ meetings, I could see the faces of many of my former partners light up, not for the reasons I hoped, but from the reflected glow of their BlackBerrys. They saw an excellent opportunity to catch up on more pressing issues, while I, to their minds, embarked on some abstruse philosophical and largely meaningless examination of our corporate soul.’

David Harrel, senior partner of SJ Berwin between 1992 and 2006, writing in Legal Business, 2013

 

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Hunting El Dorado – Iberian firms keep their eyes on prizes at home and abroad

old treasure map

A year ago, Spanish leader Garrigues unveiled its fifth office in Latin America, adding Chilean firm Avendaño Merino to its existing outposts in Brazil, Colombia, Mexico and Peru. And, as the most expansive Iberian practice in the region, there is undoubtedly pressure to prove the strategy effective. Fortunately, Garrigues has seen startling 81% revenue growth to €18.6m in the region in the last 12 months and expects to generate €30m from Latin America in 2017.

Managing partner Fernando Vives Ruiz says the turning point was a tactical switch to offer a fully-integrated practice in Latin America rather than relying on best-friend alliances. It decided to go it alone in 2013 when it pulled the plug on its Latin American alliance, Affinitas, which it set up in 2004. Continue reading “Hunting El Dorado – Iberian firms keep their eyes on prizes at home and abroad”

All fall down? – The 2017 Risk Survey

The collapse of KWM, cyber threats and Brexit have all come together to cause unease among City law firms. Our annual risk survey asks if risk managers can help avoid a domino effect.

There is little debate about what is dominating discussion among law firm managers right now. Not article 50 and not Donald Trump’s latest whim. The subject gripping law firm risk for our tenth annual risk management survey with broker Marsh is the events leading up to 4.40pm on 17 January 2017 – the moment the European and Middle East operation of King & Wood Mallesons (KWM) went into administration. Continue reading “All fall down? – The 2017 Risk Survey”