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Deal watch: Student Loans Company invites law firm tenders for £40bn debt portfolio sale

The Government’s plan to take the Student Loans Company debt off its balance sheet has moved up a gear as firms have formally been invited to tender for the role as legal advisor in the sale of the company’s £40bn loan portfolio.

Announced last Friday (26 July), the Department for Business, Innovation & Skills (BIS) has invited tenders for legal advice on the monetisation of the SLC’s loans portfolio, which at the end of the 2012/13 financial year was valued at approximately £45bn. The precise structure of the monetisation is still being considered but it is likely to be either through a sale to the private sector or a securitisation. Invited firms have until 23 August to submit their bids. Continue reading “Deal watch: Student Loans Company invites law firm tenders for £40bn debt portfolio sale”

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Bar round-up: Essex Court and Outer Temple Chambers boost their ranks

It’s been a good summer so far for Essex Court Chambers and Outer Temple Chambers, with Daniel Oudkerk QC recently moving from 11 King’s Bench Walk to Essex Court, while David Russell QC and Robin Barclay have joined Outer Temple.

Oudkerk QC took silk in 2010 and focuses on employment disputes and commercial work, having acted for the successful claimants in the landmark conspiracy and team poaching litigation Tullett Prebon v BGC, as well as for the Swiss IDB ContiCap in an Unfair Competition Act claim. Continue reading “Bar round-up: Essex Court and Outer Temple Chambers boost their ranks”

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Retention round up: UK firms score top marks on trainee job offers

Despite the wave of redundancies and poor financials of late, firms are still posting high retention rates of junior lawyers who can almost all breathe a sigh of relief this coming September. However, not every firm has been as generous this year as they were last summer – a sign that supply is still outstripping demand in many areas.

The latest is Magic Circle firm Linklaters which yesterday (31 July) announced a retention figure of 87%, equating to 47 offers (of which all were accepted) out of 54 trainees. This figure is up considerably on last summer, where the rate fell to 79%. Continue reading “Retention round up: UK firms score top marks on trainee job offers”

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Good girl gets mad: Rihanna wins t-shirt tiff against Topshop

In a case where the profile of the parties far outshone the legal substance and had many media outlets overexcited, global popstar Rihanna yesterday ( 31 July) won a High Court battle against high street retailer Topshop over the unauthorised use of her ‘brand’. The £5m case has resulted in untold lovely column inches and hopefully hefty fees for the two firms involved, Reed Smith and Mishcon de Reya.

Suing parent company Arcadia Group, the Barbadian songstress, whose real name is Robin Fenty, filed the claim after Topshop sold t-shirts with her face printed on without permission. Continue reading “Good girl gets mad: Rihanna wins t-shirt tiff against Topshop”

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Latham, Sidley and Skadden lead the US pack in Legal 500 research

Often hailed as one of the greatest US success stories of the last 25 years, new research underlines the elevated position Latham & Watkins has attained in the world’s largest legal market.

The Legal 500 United States 2013 edition shows Latham as the highest ranked law firm judged by the total number of recommendations, putting the Los Angeles-bred giant ahead of a string of top Wall Street firms.

The 600-partner firm received recommendations in 55 practice areas. Recommendations are calculated by the research team of The Legal 500 based on client and peer feedback and the submissions of the firms themselves, and take into account multiple factors including track record in winning cases, the complexity of deals and innovation. Latham received 20 top-tier recommendations, including listings in areas such as capital markets (equity offerings and high-yield debt offerings), project finance (lenders and sponsors), energy (renewable and transactions) and telecoms and broadcast (regulatory and transactional).

Continue reading “Latham, Sidley and Skadden lead the US pack in Legal 500 research”

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What’s in a name? SJ Berwin and King & Wood Mallesons seal union

Forming a ground-breaking union between a leading City firm and an Asia powerhouse, King & Wood Mallesons (KWM) partners confirmed this morning (31 July) that the Hong Kong-headquartered firm would merge with the UK’s SJ Berwin.

KWM partners in Australia and China voted simultaneously in favour of the merger at 1pm Hong Kong time and 3pm Sydney time in person, while SJ Berwin partners have voted electronically over the last five days. The merger will go live on 1 November, creating a firm with combined revenues over $1bn and 2,223 lawyers, including 553 partners.

KWM operates three separate partnerships in China, Hong Kong and Australia and although the Chinese partnership was given a longer time to consider the deal, all votes were in by today’s deadline. Continue reading “What’s in a name? SJ Berwin and King & Wood Mallesons seal union”

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Deal watch: Latham and Wachtell lead on largest public deal of the year

In what remains a gloomy cross-border deal market, US leaders Latham & Watkins and Wachtell Lipton Rosen & Katz have secured lead roles on the largest public merger of the year so far – the tie-up of Omnicom and Publicis Groupe. The Franco-US union creates a company with a combined market capitalisation of €26.5bn, forging the largest advertising group in the world. The combined company, which will be listed in New York and Paris, will have more than 130,000 staff.

The deal is likely to attract the attention of antitrust regulators in the US and Europe, uniting the second and third largest advertising groups in the world to overtake the UK-based WPP. Continue reading “Deal watch: Latham and Wachtell lead on largest public deal of the year”

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Redundancy watch: DWF, Hill Dickinson and Taylor Wessing all confirm job cuts

The stream of UK law firm job cuts continues apace as DWF, Hill Dickinson and Taylor Wessing have today (30 July) confirmed that recent redundancy consultations have resulted multiple job losses.

DWF, having completed five mergers in less than 18 months and with a remarkable 84% increase in turnover to £188m, has become one of the most closely watched national practices in the legal market of late. The expansion has led to some significant streamlining of the business however and the firm has confirmed to Legal Business it has cut 38 staff from its ranks following redundancy consultations that began in May. Continue reading “Redundancy watch: DWF, Hill Dickinson and Taylor Wessing all confirm job cuts”

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Do you need to think about tougher tax rules for your partnership? Er, probably

Does abuse of tax rules for partnership require a major clampdown by the taxman? That’s the £300m question and the reason that the majority of large law firm partnerships in the UK are now facing an overhaul of the tax treatment of partners and retained earnings.

Tax specialists and legal finance directors are currently sizing up proposals from HM Revenue & Customs (HMRC) to change the treatment of members and retained earnings in limited liability partnerships (LLPs). Continue reading “Do you need to think about tougher tax rules for your partnership? Er, probably”

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Amid a punishing regional market, Challinors becomes latest to call in the administrators

It’s not as if anyone needs reminding that the legal market remains challenging, and doubly so for regional advisers. But driving home that point this month, Midlands-based Challinors has become the latest sizeable practice to call in the administrators after the failure earlier this year of Cobbetts and Scots practice Semple Fraser.

The Birmingham-headquartered adviser, which offers services in areas including disputes and private client, has filed a notice of intention to appoint Eric Walls and Wayne Harrison from KSA Group as administrators. Continue reading “Amid a punishing regional market, Challinors becomes latest to call in the administrators”

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Barristers free to conduct litigation as Bar watchdog ushers in new ‘risk-based’ conduct regime

While the post-Legal Services Act (LSA) shake-up moves far more slowly for barristers than their solicitor cousins, the Bar continues to modernise at its own pace with new conduct rules unveiled this month heralding significant reforms.

The Bar Standards Board last week unveiled its new code of conduct for barristers allowing self-employed advocates to conduct litigation for the first time and to form associations with non-barristers – two significant steps towards liberalising lawyer regulation. Continue reading “Barristers free to conduct litigation as Bar watchdog ushers in new ‘risk-based’ conduct regime”

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Financial results 2013: steady as she goes for Burges Salmon

It’s been another year of solid organic growth for stalwart Burges Salmon, with revenue, profit and profit per lawyer (PPL) all up 4% at the end of last financial year.

The UK top 50 firm posted its highest ever revenue figure of £73.7m, up from £71m at the end of financial year 2011/12, with net income up to £23.5m from £22.6m and PPL up to £76,000 from £73,000. Profits per equity partner are flat, at £420,000 this year. This follows a 7% increase in turnover during the previous financial year. Continue reading “Financial results 2013: steady as she goes for Burges Salmon”

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After mounting controversy Bar watchdogs face court challenge to procedures in high-stakes move

Regulators are never popular but the Bar’s watchdogs have seen sustained controversy finally escalate into a court challenge to their procedures.

The High Court earlier this month heard a claim for judicial review of the Bar’s regulatory procedures related to problems with the Bar Standards Board (BSB) and Bar disciplinary tribunals identified last year. Continue reading “After mounting controversy Bar watchdogs face court challenge to procedures in high-stakes move”

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Financial results 2013: LG’s revenue falls for a third year while Irwin Mitchell posts turnover and profit growth

Top 25-firm Irwin Mitchell has today (26 July) posted strong revenue and profit growth for the last financial year, while Lawrence Graham (LG) has posted declining turnover for the third year running.

In its latest results for 2012/13, Irwin Mitchell’s turnover was up by 9% to £200.2m from £183.7m for 2011/12. Profit for the group as a whole is £19.1m, up by 3.1% on the previous financial year. The firm’s profit per equity partner is £619,000 – a 9% increase from last year’s £569,000. Continue reading “Financial results 2013: LG’s revenue falls for a third year while Irwin Mitchell posts turnover and profit growth”

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Guest post: In the ABS landscape, it’s all about the brand – oh yes

‘Tesco Law’ is a phrase that, thankfully, is finally dying out as the reality of alternative business structures (ABSs) takes hold, but what it represents – big brands entering the legal market – has become truer than ever this month.

First there was Direct Line Group’s long-awaited announcement of its plans to set up a law firm  and then it emerged the Stobart Group has added an ABS to its barrister service. Continue reading “Guest post: In the ABS landscape, it’s all about the brand – oh yes”

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Financial results 2013: the good, the bad and the ugly as Howard Kennedy FSI, Clarke Willmott and Manches reveal results

The latest results for firms in the second half of LB100 are a mixed bag, as Howard Kennedy reports inflated revenues reflecting its recent merger with Finers Stephens Innocent, Clarke Willmott posts a fifth consecutive year of falling revenues and Manches unveils a sharp fall in turnover and profit.

Clarke Willmott’s revenues edged down 1% from £33.5m to £33.1m, while profits per equity partner (PEP) is down 14% to £141,000 from £163,000. Top of the equity is £152,000, compared to £110,000 at the bottom. Continue reading “Financial results 2013: the good, the bad and the ugly as Howard Kennedy FSI, Clarke Willmott and Manches reveal results”

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Ropes & Gray lands marquee role in GSK Chinese bribery investigation

Even in an age in which corporate investigations have become some of the most sought after work for legal advisers, Ropes & Gray has secured a notable role with the US law firm instructed by GlaxoSmithKline (GSK) to lead an investigation into claims that some staff in the pharma giant’s Chinese operations engaged in bribery.

Chinese authorities have arrested four GSK executives, including senior Chinese legal counsel Zhao Hongyan, amid allegations that GSK staff have attempted to bribe doctors to use the company’s medication. Continue reading “Ropes & Gray lands marquee role in GSK Chinese bribery investigation”

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Asia Round-up: Singapore in focus for Minter Ellison, Sidley Austin and Taylor Wessing

The decline in Singapore M&A has seemingly done little to dampen the enthusiasm of international firms to launch or build their practices in the region.

Sidley Austin – which despite having been in Singapore since 1982, has just 10 lawyers in the region and to date has not had the same impact as top-tier banking & finance and corporate Magic Circle rivals Allen & Overy, Clifford Chance and Linklaters Singapore – has benefited from Vinson & Elkins recent decision to close its office in Shanghai, by hiring energy partner Tju Liang Chua. Continue reading “Asia Round-up: Singapore in focus for Minter Ellison, Sidley Austin and Taylor Wessing”

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Moving slowly forwards – Eversheds seals another Tyco-style deal

While single service retainers appear unlikely to become a broad fixture of the legal market, Eversheds continues to push on with the model having sealed a multimillion-pound deal with valve manufacturer and Tyco spin-off Pentair Flow Control to take over all its routine legal work in the EMEA region.

In a two-year, fixed-fee contract, the UK top 10 law firm has secured the right to carry out all routine litigation, certain intellectual property (IP) and commercial work and some premium work including major litigation, M&A and antitrust work. Pentair merged with Tyco Flow Controls after the three-way split of Tyco in October last year. Continue reading “Moving slowly forwards – Eversheds seals another Tyco-style deal”

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Deal watch: M&A activity picks up as A&O, Linklaters and Hogan Lovells secure key roles

With Q1 2013 reported as one of the slowest starts to the year M&A-wise for a decade, the deal market appears to be gaining momentum with a handful of Global 100 firms in action in high-profile and high-value transactions recently.

Linklaters is advising the recently formed Glencore Xstrata on the disposal of its Las Bambas copper mine in Peru for around $5bn – a condition of the $64bn union between Glencore and Xstrata that was imposed by Chinese regulators. Continue reading “Deal watch: M&A activity picks up as A&O, Linklaters and Hogan Lovells secure key roles”