Legal Business

US bonuses: CC and A&O match Cravath reward of up to $100,000 for associates

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Associates Allen & OveryCravath, Swaine & Moore
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Magic Circle firms Allen & Overy (A&O) and Clifford Chance (CC) have stepped up to match bonus levels rewarded by leading Wall Street firms.

US associates at CC from 2008 and 2009 were told today (1 December) their year-end bonuses will total $100,000.

An internal memo circulated by CC Americas chief Evan Cohen confirmed that the bonus scale will see 2010 associates take home $90,000, while 2011, 2012 and 2013 associates will pocket $80,000, $65,000 and $50,000 respectively.

Those associates from 2014 will take home a $25,000 bonus and 2015 and 2016 associates will both receive $15,000 (with the latter year awarded on a pro-rated basis).

Bonuses are to be paid on January 13, 2017. As in prior years, individual bonuses are based on an assessment of each associate’s overall performance, including quality of work, contribution to the firm, teamwork and pro bono efforts.

A&O has also matched the same scale with US managing partner David Krischer stating yesterday the firm would match the Cravath, Swaine & Moore bonus scale for all US associates.

The Wall Street elite have made concerted efforts for some years to attract junior talent to the ranks, and this week Cravath associates were told their year-end bonuses on Monday afternoon (27 November). Newly-qualified associates in 2016 and 2015 will receive $15,000. The bonus scale means 2014 associates will receive $25,000, 2013 will receive $50,000, while associates from 2009 will earn up to $100,000 in bonuses. The scale remains on a par with last years’ US bonuses.

After Cravath announced its new bonus round, Simpson Thacher & Bartlett and Davis Polk & Wardwell both matched their New York rival.

sarah.downey@legalease.co.uk

Legal Business

Financials 2016/17: Double-digit growth for A&O at the halfway point

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Financial results 2016/17 Allen & Overy
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Allen & Overy (A&O) has increased its half year turnover for 2016/17, up by 14% on last year’s figures to £731m. The firm had posted half year revenues at £642m for the same six months last year.

The firm pointed to ‘standout performances’ in its London office and the Asia Pacific region.

Managing partner Andrew Ballheimer (pictured) said: ‘The backdrop of uncertainty affecting many of the markets in which we operate makes this set of results all the more impressive. They are a clear indication of the resilience of our business, proving once again the value of our well-hedged, diversified model.’

A&O posted another year of growth for the 2015/16 financial year with full year revenue rising by a modest 2.3% to £1.31bn. The year before turnover rose by 4% to £1.28bn. Amid the slowdown in top line growth, profits per equity partner remained stable at £1.2m.

A&O took a four partner IP team this year from Simmons & Simmons taking on its former IP head Marc Döring, Marjan Noor, Mark Heaney and David Stone.

In August it emerged the firm had broken its lockstep for members of its new Manhattan group as the firm made a major finance play to compete with the US. The Magic Circle firm announced the new team in July led by finance partner Scott Zemser, who joined with Alan Rockwell and Judah Frogel from White & Case.

Proskauer Rose partner Rajani Gupta also moved to A&O with Todd Koretzky, an associate from Milbank, Tweed, Hadley & McCloy who has been made up to partner by the firm.

The firm also took on Herbert Smith Freehills financial regulatory partner Nick Bradbury.

The only other LB100 firm to release half year results so far this season is Fieldfisher, which posted revenues for the period by 10% to £64.1m. The firm posted an 8% rise to £58.4m for the same period last year.

madeleine.farman@legalease.co.uk

 

 

Legal Business

‘One of the top teams’: Milbank takes A&O US senior partner in real estate group hire

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Strategic recruitment Allen & OveryMilbank
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Milbank, Tweed, Hadley & McCloy has taken on a three-partner team from Allen & Overy (A&O) in New York, including the firm’s US senior partner Kevin O’Shea.

O’Shea has more than 30 years’ experience in real estate law, heading up A&O’s real estate practice in the US. He joined the Magic Circle firm’s New York office in 2002, having previously been a partner at Paul Hastings.

He joins Milbank with real estate finance partners Erwin Dweck and Yaakov Sheinfeld. Dweck, who made partner at A&O in 2011, has a practice including advising on real estate debt and equity investment, while Sheinfeld made partner earlier this year.

Milbank chair Scott Edelman told Legal Business: ‘We’ve been looking for a high quality real estate team for many, many years and this is one of the top teams in the New York market. We’re very happy with the New York office at the moment, but real estate was one area where we didn’t previously have this kind of offering, so we’re thrilled to have them.’

The loss of its US senior partner comes after months of building out in New York by A&O. In July, the Magic Circle made a five partner hire to boost its office. The firm hired Scott Zemser as its new global co-head of leveraged finance along with Alan Rockwell and Judah Frogel from White & Case.

The firm also added Rajani Gupta from Proskauer Rose and Todd Koretzky, an associate from Milbank who made partner on joining the firm. A&O is understood to have broken its lockstep to secure the new Manhattan hires in a major finance play to compete with the US elite.

A&O senior partner Wim Dejonghe and managing partner Andrew Ballheimer this summer restated the firm’s commitment to expanding its US law offering, strengthening its practice in New York and other countries.

matthew.field@legalease.co.uk

 

Legal Business

Global London advances: US firms take key partners from A&O and CC

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Strategic recruitment Allen & OveryLatham & Watkins
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US firms continue their investment in the City, as two Magic Circle firms have today (28 October) lost partners to Dechert and Latham & Watkins.

Latham & Watkins has continued its significant push in the City taking M&A partner Edward Barnett from Allen & Overy (A&O), while Dechert has hired Clifford Chance litigator Stephen Surgeoner.

Barnett will bring his experience across a broad variety of cross-border M&A and corporate finance transactions, including public takeovers, takeover defence, joint ventures, divestments, refinancings and initial public offerings.

He recently led the team advising 888 Holdings on its offer for bwin.party digital entertainment, and acted for Coca-Cola Iberian Partners on its merger to create the world’s largest independent Coca-Cola bottler based on net revenues.

London-based partner and member of the firm’s executive committee Richard Trobman said the firm was ‘committed to establishing the world’s premier corporate practice with market-leading capability in the US, London and other major M&A centres.’

He added: ‘Ed’s arrival is further testament to these ambitions. He is a highly talented partner with a formidable reputation for big ticket M&A and his track record advising on high-profile cross-border transactions speaks volumes for his vast experience. His arrival in London represents an important milestone for our corporate practice.’

This is not the first time Latham has tapped A&O for hires this year. The US firm took one of London’s most high-profile banking lawyers, A&O’s Stephen Kensell. Latham also took A&O capital markets partner Oliver Seiler in Frankfurt.

Meanwhile, Clifford Chance (CC) has also seen an exit to a US firm with litigation partner Stephen Surgeoner heading to Dechert’s London office. Surgeoner, who specialises in insurance disputes and professional indemnity, had spent around 25 years at the Magic Circle firm, having made partner in 2002. He is ranked as a leading individual in insurance and reinsurance in The Legal 500.

Dechert has been bulking up its London practice in recent months. The firm hired DLA Piper financial services global co-hair Philip Butler and London debt finance head David Miles to its City office in August this year.

madeleine.farman@legalease.co.uk

 

Legal Business

Allen & Overy and DLA Piper chip in as US elite act on $47bn Qualcomm deal

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US firms Allen & OveryDLA Piper
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Allen & Overy (A&O) and DLA Piper have won roles among US heavyweights as Qualcomm acquires Dutch firm NXP Semiconductors for $39bn.

Smartphone chip designer Qualcomm has agreed to the world’s biggest automotive chip maker NXP in a deal worth $47bn including debt. The combined company expects annual revenues of more than $30bn.

According to Dealogic, the transaction is in line to be the largest European technology targeted M&A deal on record, and will be the biggest semiconductors targeted M&A deal on record globally, surpassing the $36.1bn acquisition of Broadcom by Avago Technologies announced in May 2015.

While Qualcomm turned to US elite Paul, Weiss, Rifkind, Wharton & Garrison and Cravath, Swaine & Moore, A&O’s Amsterdam outpost also advised on the deal. A&O’s team was led by Amsterdam corporate partner Christiaan de Brauw. Other team members include tax partner Godfried Kinnegim and corporate partner Joyce Leemrijse. The Paul Weiss team includes corporate partners Scott Barshay and Steve Williams and tax partner Jeff Samuels.

DLA Piper’s US arm acted on behalf of the Qualcomm Board with a team including global co-chief executive Jay Rains and M&A partners Doug Rein and Jeff Baglio. Shearman & Sterling also played a role on the deal, advising Qualcomm on European competition law aspects.

NXP was guided through the transaction by Skadden, Arps, Slate, Meagher & Flom and Amsterdam-headquartered De Brauw Blackstone Westbroek.

Meanwhile, Sullivan & Cromwell won a spot on the deal acting for Qualcomm’s financial adviser Goldman, Sachs & Co with New York based M&A partner Stephen Kotran leading the team. Jones Day advised NXP’s financial adviser Qatalyst Partners with a team led by London M&A partner Ferdinand Mason.

The acquisition follows Japanese telecoms group SoftBank’s £24.3bn deal to acquire UK tech flagbearer ARM Holdings with Slaughter and May, Freshfields Bruckhaus Deringer, Davis Polk & Wardwell and Morrison & Foerster all winning roles. Advisers took home £14.5m in fees for the transaction.

Earlier this month, Herbert Smith Freehills and Cravath advised British American Tobacco on its offer to acquire the remaining 57.8 % stake in Reynolds American for $47bn.

madeleine.farman@legalease.co.uk

Legal Business

Allen & Overy fills finreg gap with Herbert Smith Freehills Bradbury

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Finance Allen & OveryHerbert Smith Freehills
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Six months after financial regulatory head Bob Penn quit for Cleary Gottlieb Steen & Hamilton, Allen & Overy (A&O) has replenished the ranks with the hire of Herbert Smith Freehills (HSF) partner Nick Bradbury. Bradbury returns to the Magic Circle after moving to HSF from Freshfields Bruckhaus Deringer in 2015.

Bradbury was with Freshfields for more than a decade before making partner at HSF. Joining London financial regulatory partners Damian Carolan, Etay Katz and Kate Sumpter, he has extensive experience including acting for TSB on its separation from Lloyds Banking Group, ring-fencing and the senior managers regime, and the separation of Williams & Glyn from The Royal Bank of Scotland (known as Project Rainbow).

Carolan said: ‘Building on our regulatory practice is key to maintaining our ability to provide top-quality cross-border advice and expertise to our financial institution clients, particularly in light of the raft of regulation that has dominated the industry since the global financial crisis.’

Other recent high-profile finreg moves in the City include Ashurst finreg head Rob Moulton moving to Latham & Watkins. His departure was quickly followed by the exit of Nicola Higgs, who also moved to the US firm. A&O has suffered at the expense of Latham in recent months, as the US firm hired one of the City’s most high-profile banking lawyers, Stephen Kensell. Kensell had run for the senior partner post earlier in the year but missed out to former managing partner Wim Dejonghe.

Going the other way, A&O broke lockstep in July to bring in a major finance team to compete with the US elite. Joining the firm in Manhattan were Scott Zemser, Alan Rockwell and Judah Frogel from White & Case.

victoria.young@legalease.co.uk

Legal Business

Allen & Overy takes another two from Simmons in sustained IP push

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Strategic recruitment Allen & OverySimmons & Simmons
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Allen & Overy (A&O) has taken its third and fourth IP partner from Simmons & Simmons this year, as it strengthens its City IP practice.

IP partner Mark Heaney (pictured left) and David Stone are to join the Magic Circle firm. Heaney, who specialises in contentious matters across a broad range of IP, joined Simmons only last year from Baker Botts.

Stone has been a partner at Simmons & Simmons for eight years and specialises in trademarks and registered/unregistered designs.

Heaney and Stone join Simmons’ former IP head Marc Döring, with A&O announcing he would join the firm last month, and former Simmons partner Marjan Noor who moved to the firm in June.

London’s head of IP Nicola Dagg said: ‘We are excited to have Mark and David join our team, this is step-change for us. Now is a time of increasing recognition of the ever-growing value and role that IP has to play in the economies our clients operate in.’

‘Whether it comes down to patents and planning for pan-European patent litigation; TMT and clients who are facing an unprecedented period of change brought about by digital transformation; or the continued threat of counterfeiting and piracy taking on a new dimension in the digital age. A full-service, top-ranked IP practice will help us overcome these challenges for clients.’

A&O has taken on high-profile four partners this month, with Heaney and Stone joining Hong Kong capital markets partners Lina Lee and Jonathan Hsui joining from Ashurst as new recruits at the Magic Circle firm.

The hires follow the Magic Circle firm breaking lockstep in August when it took on a finance team in Manhattan, led by finance partner Scott Zemser, who joined with Alan Rockwell and Judah Frogel from White & Case. At the same time Proskauer Rose partner Rajani Gupta also moved to A&O with Todd Koretzky, an associate from Milbank, Tweed, Hadley & McCloy who was made up to partner by the firm.

madeleine.farman@legalease.co.uk

Legal Business

Ashurst suffers further exits as Abu Dhabi head departs and A&O takes two Asia finance partners

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Asia Allen & OveryAshurst
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The exits continue at Ashurst as the firm’s Abu Dhabi head has quit for a US firm while two Asia finance partners, including Ashurst’s Hong Kong managing partner have joined Allen & Overy (A&O).

New York-based Curtis, Mallet-Prevost, Colt & Mosle has lured Ashurst’s head of Abu Dhabi, the latest in an increasing tally of exits.

Training and qualifying in Ashurst’s London office, M&A partner Alastair Holland spent two years in the firm’s Frankfurt office before moving to the Middle East in 2008.

Holland described his new firm as ‘one to watch’ in Dubai and said he was looking forward to working with a team that has a ‘strong corporate core in the Middle East’.

Managing partner of Curtis’ Dubai offering Bruce Palmer added: ‘Alastair is well regarded in the Middle East and is widely admired for his strategic advice on corporate commercial matters. We have high hopes for him and are pleased to welcome yet more talent to our busy office.’

Meanwhile, A&O has secured two partners from Ashurst’s Hong Kong office, hiring Lina Lee and Jonathan Hsui who will join the firm’s capital markets team.

Lee has been a partner in the corporate group at Ashurst since 2009, while Hsui was made up to partner in 2013 after he joined the firm as counsel in 2011.

The hires followed continued growth for A&O in Hong Kong, with financial services and regulatory partner Charlotte Robins joining from Norton Rose Fulbright and debt capital markets partner Alex Tao joining from Davis Polk & Wardwell. The firm has also announced partner Stephen Miller will relocate from London to the office later this month to lead the firm’s Asia debt capital markets practice.

For Ashurst, the departures are the latest in a number of recent exits revealed this month with Paul Hastings picking up a trio of structured finance partners, Michael Smith, Diala Minott and Cameron Saylor, while Latham & Watkins appointed financial regulatory partner Nicola Higgs.

The latest spike brings the number of partners that have left the firm to around 40 since May of last year as the firm posted disappointing 19% drop in profit per equity partner down to £603,000 from £747,000 during the 2015/16 financial year as well as a 10% drop in turnover to £505m.

Following the disappointing results, Ashurst delayed its quarterly partner distributions for August, with one former partner telling Legal Business it was the second delayed payment this year after a postponement in February.

madeleine.farman@legalease.co.uk

Read more on Ashurst in the comment piece: ‘Looking forward to Ashurst’s decline – The outlook worsens for a proud City institution’ and the analysis piece: ‘Don’t look back in anger: Ashurst leadership tries to rally partners but the drift continues’

Legal Business

Cleary taps A&O for Frankfurt M&A hire as US law firms sustain Euro push

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Strategic recruitment Allen & OveryCleary Gottlieb Steen & Hamilton
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Top 25 Global law firm Cleary Gottlieb Steen & Hamilton  has bolstered its ranks in Frankfurt with the hire of corporate partner Michael Ulmer from Allen & Overy (A&O), the second German partner to quit the City firm this week.

Ulmer had joined A&O as a partner in 2006 from elite German independent Hengeler Mueller. His client portfolio includes leading German corporates, Mittelstand companies, and domestic and international financial and strategic investors.

The appointment is a rare senior recruit for the Wall Street-bred Cleary, which has long been sparing in partner recruitment despite having built a well-regarded European network over decades.

Cleary’s German practice now has around 60 lawyers and a growing reputation for corporate mandates, having advised American Express in the restructuring of its credit card joint venture with Credit Suisse in Switzerland; Citi as financial adviser to ZF Friedrichshafen in its $13.5bn acquisition of TRW Automotive; and Gazprom in a $2bn European oil and gas asset swap transaction with Wintershall.

The 1,300-lawyer firm also recruited from A&O’s London arm in April with the appointment of financial services regulatory veteran Bob Penn, one of A&O’s most prominent names.

Commenting on Cleary’s rigorous approach to lateral hiring, London-based partner Sunil Gadhia told Legal Business earlier this year: ‘We grow cautiously. We are not a firm that shoots out press releases on hires… we don’t hire and fire. It’s pure lockstep. Every partner is a long-term business decision. You need to be certain.’

The move comes as Latham & Watkins this week announced its hire of A&O’s Frankfurt-based partner Oliver Seiler, the City firm’s German international capital markets leader and co-head of its EMEA equity capital markets practice.

Other high profile laterals across Germany in recent weeks include Clifford Chance, which tapped King & Wood Mallesons for its high-billing German head of funds Sonya Pauls.

sarah.downey@legalease.co.uk

Legal Business

A&O defeats Quinn as $575m Progas energy claim against Pakistan thrown out

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Litigation Allen & OveryQuinn Emanuel Urquhart & SullivanWithers
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Allen & Overy (A&O), Quinn Emanuel Urquhart & Sullivan and Withers have advised as a tribunal convened under the UN Commission on International Trade Law (UNCITRAL) threw out two parallel investment treaty claims worth about $575m against Pakistan made by Progas Energy.

In a legal wrangle that lasted five years, the Progas group of companies and Ali Allawai, formerly the Iraqi Minister of Finance, alleged that regulatory measures around liquid petroleum gas (LPG) pricing in the country forced the auction of its LPG import terminal at Port Qasim in Karachi after it became insolvent.

The London-seated tribunal presided by chair Yves Fortier QC, Judge Charles Brower and J Christopher Thomas QC dismissed the case after spending 10 days presiding over hearings in 2015.

Pakistan turned to A&O which has been working on six separate cases for the country over the last several years. Judith Gill QC led teams on both claims with partners Jeff Sullivan, Marie Stoyanov, Andrew Battisson. The firm is also currently advising Pakistan several other disputes, including a claim brought by Turkish power-ship company Karkey Karadeniz worth over $2bn, made after Pakistan seized its ships.

The Magic Circle firm is also helping Pakistan defend a multi-billion dollar claim brought by Australian mining company Tethyan Copper Company in relation to a mining concession in the Balochistan Province of Pakistan.

Quinn partner David Orta advised Progas on its claim with a team led by Steven Madison, Tai-Heng Cheng, Daniel Salinas-Serrano alongside Withers partner Hussein Haeri who has overseen the case over the last five years.

Other recent disputes mandates for Quinn include representing a group of US investors bringing a $100m claim against Mexico after its government seized and closed six casinos across the country in 2014, and the firm is bringing the first major US-style class action in the English courts against MasterCard.

madeleine.farman@legalease.co.uk