Legal Business

Covington and CMS lead on AstraZeneca’s £1.2bn Spanish transaction

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Corporate CMS UKCovington & Burling
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A London team at Covington & Burling led by corporate partner Lucinda Osborne advised AstraZeneca on a potential $2.1bn deal to purchase Spanish healthcare group Almirall’s respiratory unit in a move that sees the company add to its pipeline of asthma products. 

Osborne, who last year advised AstraZeneca on its acquisition of Bristol-Myers Squibb’s diabetes assets in a $2.7bn deal that could rise by a further $1.4bn, worked alongside London corporate partner Gregor Frizzell, the firm’s chair of international employment Christopher Walter and Brussels-based competition partner Miranda Cole. London-based special counsel James Ryan played a support role.

CMS Cameron McKenna London-based life sciences partner Sarah Hanson acted for Almirall, along with Hamburg-based CMS Hasche Sigle corporate partner Jacob Siebert.

AstraZeneca, which earlier this year rejected a takeover attempt by US pharma giant Pfizer that valued the company at £69bn, will pay an initial $875m, which could rise by $1.22bn in development, launch and sales-related milestones.

The deal sees Almirall’s subsidiary for devices in development for diseases linked to smoking and air pollution transferred to the UK firm, which will also have the right to market its newly launched inhaler for chronic obstructive pulmonary disease sufferers, Eklira.

Almirall’s pipeline of novel respiratory assets and its device capabilities further strengthen AstraZeneca’s respiratory portfolio, which includes asthma attack preventers Symbicort and Pulmicort.

Pascal Soriot, chief executive of AstraZeneca, said: ‘Our agreement with Almirall brings strategic and long-term value to AstraZeneca’s strong respiratory franchise, one of our key growth platforms. We will benefit from immediate and growing product revenues which we anticipate will be rapidly accretive to earnings.’

Jorge Gallardo, president of Almirall, added: ‘This important agreement allows us to better develop our assets and expertise in respiratory with AstraZeneca, an experienced player in this therapeutic area. It also allows us to better balance the costs, risks and returns of the respiratory business while retaining an important economic interest in its future success.’

The transaction is subject to competition law clearances and is expected to complete by the end of 2014.

Tom.moore@legalease.co.uk

Legal Business

Summer retention 2013/14: RPC posts 100% trainee retention rate as CMS sees rate drop to 67% post Dundas tie-up

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Trainee retention CMS UKRPC
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City firm RPC is the latest to reveal its trainee retention rates this summer, and has announced it will keep all 15 trainee solicitors who applied to qualify this year, constituting the second time the firm has achieved a 100% rate since 2010. Meanwhile, CMS Cameron McKenna posted more modest results and confirmed a retention rate of 67.2%, with the firm’s London office keeping the lion’s share of trainees.

For RPC, the results signal a consistently positive retention rate for the firm, which kept 100% in 2011; 80% in 2012; and 81% last year.

RPC managing partner Jonathan Watmough said: ‘We invest a lot of time and money in our trainee recruitment programme, and set the bar for qualification very high. It’s always particularly pleasing, therefore, when we get such an outstanding group who make the grade, and doubly gratifying when we are able to offer them all positions at the firm.’

‘We have a very good record of retaining a high percentage of our trainees which is testament to the rigour of our recruitment process and the quality of our development programme throughout the training contract.’

‘We look to attract a very specific kind of person – someone who’s as interested in understanding business as learning the law, and who has the breadth of experience and range of interests to bring a different perspective to the advice they give their clients.

‘Given the quality I see coming through year on year the future success of RPC is in good hands.’

For Cameron McKenna, a breakdown of the results will see 21 join the City office; four join the Bristol office; 10 take a position in Edinburgh; three join in Glasgow; and three in Aberdeen.

The results are a marked shift downwards on last year’s results which saw the firm hold onto 28 out of 34 newly qualified lawyers that September, equating to a retention rate of 82%.

Graduate recruitment partner Simon Pilcher attributed the lower results to the firm’s recent combination with beleaguered Scots firm Dundas & Wilson that went live in May. He explained: ‘We have a significant increase in the number of trainees qualifying in August compared to last year (61 trainees this year compared to 34 last year). As a consequence, due to the volume of trainees the overall retention rate is regrettably lower than in previous years.’

‘However we are in a strong position as a firm post-merger and were therefore able to offer more NQ positions than last year with 41 trainees accepting roles with us. This represents an increase of 46% compared to the number of roles offered in the August qualification round last year and a 64% increase in comparison to Aug 2012.’

Other results to emerge in recent weeks include Magic Circle firm Linklaters which kept 93% of qualifying trainees in its latest cohort and Mayer Brown which said in late July it kept ten (or 67%) of trainees for September 2014. More evidence of the firm’s intention to scale back includes plans to cut its September 2016 trainee intake by half, and take in just ten applicants compared to its usual 20-strong group.

Sarah.downey@legalease.co.uk

Legal Business

Edwards Wildman sees final corporate partner exit for Olswang as Arnold & Porter emerges as ‘in talks’ with disputes team

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Strategic recruitment Arnold & Porter Kaye ScholerCMS UKLocke Lord
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US firm Edwards Wildman has seen the last of its quintet of disgruntled corporate partners resign as it has emerged that Niall McAlister has departed for Olswang.The firm could also potentially face further loss from its City disputes practice as it has come to light that fellow US firm Arnold & Porter has been in talks with its commercial litigation partners. Commercial litigation partner Rod Cowper has already resigned and is moving to City firm Teacher Stern.

Acknowledged by The Legal 500 as having ‘a practical approach and deep industry understanding’ of the market, transactional lawyer McAlister is the latest loss to Edwards Wildman’s corporate team.

Stephen Reese, co-chair of Olswang’s life sciences practice, said: ‘Our successful life sciences practice has been growing rapidly in the last few years. As a result, we having been looking carefully for additional well-known and experienced corporate partners in the sector who can further develop our corporate strength in one of the key sector focuses for our corporate group. Niall was an obvious choice given his experience, and we are excited that he has agreed to join us. Likewise, he was drawn to Olswang because of our reputation in the sector and our unique IP and regulatory law offering.’

Located at Old Broad Street, the original five corporate partners in talks with management over potentially resigning were understood to be unhappy over the lack of support from the US together with issues of ‘disconnection’.

First to resign was co-chair of Edwards Wildman’s venture capital group Shawn Atkinson who is headed for Orrick, Herrington & Sutcliffe. Transactions partner Stuart Blythe, who joined from Bird & Bird in 2011, was next and is set to join CMS Cameron McKenna. It emerged days ago that London private equity and venture capital head David Ramm is to move to Morgan Lewis & Bockius. It is also known that capital markets partner Eero Rautalahti has resigned but it is unclear as to where he will move.

The departure of litigator Cowper, the former London head of litigation for Squire Sanders, will also be a loss to Edwards Wildman’s City disputes team. Ranked as a ‘well regarded’ disputes lawyer, Cowper is experienced in international arbitration and has conducted litigation in all commercial divisions of the High Court, the Court of Appeal, the Supreme Court and the Privy Council.

The firm has also seen a string of insurance exits, including Damian Connolly who went in-house to American managed healthcare company Aetna International; heavyweight Francis Mackie who left for national firm Weightmans; and Mark Meyer who joined Cozen O’Connor’s London office as a partner in its insurance and reinsurance practice. A trio of litigation associates were also understood to have resigned in June, including Rhys Davies who will join Mackie at Weightmans.

Edwards Wildman declined to comment.

Sarah.downey@legalease.co.uk

Legal Business

Management: Nabarro reappoints Inkester as managing partner after first election in 15 years

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Leadership CMS UK
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Having geared up for its first managing partner elections in 15 years, the partnership at top 30 LB 100 firm Nabarro has voted to re-appoint Andrew Inkester in the leadership role after an uncontested election.

The process at the 424-lawyer firm was changed last year, when senior partner Graham Stedman proposed that his term be reduced and run parallel to the term of the managing partner. Both positions now run for a concurrent four-year period.

Earlier this summer Inkester signalled his intentions to run again and his election this month is an affirmation of the support of the Nabarro partners, coming three years after he was hand picked by former senior partner Simon Johnston to succeed longstanding head Nicky Paradise.

Under Inkester’s leadership the firm has enjoyed an uptick in profitability for the 2012/13 financial year, with operating profit rising 22% to £42.5m from £34.7m the previous year.

Profit per equity partner is up for the second successive year, with preliminary figures suggesting a rise of 10.5% to £475,000.

Inkester, whose previous management roles included serving as head of private equity in the firm’s corporate practice, will continue to face the challenge of boosting the firm’s revenues.

Having been hit by tough market conditions in the last five years, the firm’s recent results showed broadly flat revenue of £116.7m.

sarah.downey@legalease.co.uk

Legal Business

Nabarro settles professional negligence claim for £10m

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Litigation CMS UK
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Nabarro has agreed to pay £10m to settle a £130m professional negligence claim brought against the firm by a former client unhappy with its handling of a litigation matter.

While Nabarro declined to comment on the terms of the settlement, the firm told Legal Business in a statement: ‘We contested these accusations vigorously. The settlement by our insurers is not an admission of liability and represents a small percentage of the alleged value of the original claim.’

The dispute dates back to 2006, when Nabarro defended the now defunct software company MCashback and its directors against allegations of ‘wrongful diversion of a business opportunity’ by former colleague Paul Burtenshaw and Fanmailuk.com.

Burtenshaw, a director at a company called Dialtime, which created a system of free mobile airtime credits available at supermarket checkouts, brought a claim against three of his fellow directors who set up MCashback without him.

MCashback entered into liquidation in 2010. Peter Kubik of UHY Hacker Young was appointed as liquidator and instructed Carter Ruck partner Nigel Tait and in 2012 brought a claim against Nabarro in the Chancery Division of the High Court, in what was expected to be one of the highest-value negligence claims against a law firm in recent years. The trial was scheduled to begin on 3 November.

The claimant was represented by Maitland Chambers’ Christopher Parker QC leading James Balance, who were instructed by Tait and fellow Carter-Ruck partner Claire Gill. Nabarro was represented by Clyde & Co’s head of professional disputes Sarah Clover, who instructed Brick Court Chambers’ Tom Adam QC, leading Tony Singla.

Other recent high-profile claims against law firms include an order by the High Court against Withers for £1.6m in damages, after the court upheld a professional negligence claim alleging the misdrafting of a limited liability partnership agreement.

sarah.downey@legalease.co.uk

Legal Business

Financial results 2013/14: Olswang suffers further drop in PEP to £490k with turnover up 7% to £117.6m

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Financial results 2013/14 CMS UK
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Olswang has reported mixed 2013/14 financial results with profit per equity partner (PEP) down 4%, following a double-digit drop last year, while revenue is up 7% to £117.6m.

While the financial results are subject to audit, the global technology, media and telecoms firm said its PEP will decline to £490,000 from the £510,000 achieved in 2012/13. This figure comes after last year’s LB100 showed that PEP fell 10% on 2011/12 financial year.

Revenue grew during 2013/14 from £110m to £117.6m, with the 7% growth rate coming in higher than last year’s figure of 3%, although a significant drop on the above-average 17% growth posted in 2012.

In January 2014, Legal Business reported the top-40 firm’s limited liability partnership filings, which showed its overdraft grew by £3m to £18m in 2013, with net debt increasing to £13.7m from £8.4m, while operating profit dropped from £39.3m to £38m.

Olswang’s chief executive officer David Stewart said: ‘We’re satisfied with our results in what has been a mixed year, with strong half year performance balanced by a more challenging last quarter.

‘We have seen very strong results from Germany, Belgium and France, and a significant contribution from Asia. We have welcomed ten new partners, invested in new premises in Berlin and Singapore, as well as strengthened our operational base. We have an ambitious plan for both profit and revenue growth for 2014/15, and we are confident we will deliver this.’

The ten lateral hires at the firm included six new partners in the UK, as well as the high profile hire of IP/IT head Andreas Splittgerber who joined in Germany from Orrick, Herrington & Sutcliffe in January 2014, in a bid to expand the firm’s European data protection and sourcing practices. 

However, the firm recently lost its head of real estate finance Eleni Skordaki who quit after nearly ten years to join Dechert’s City finance and real estate group.

jaishree.kalia@legalease.co.uk

Legal Business

Further Edwards Wildman City fallout as CMS set to take on corporate partner

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Strategic recruitment CMS UKLocke Lord
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The fallout from the embattled City office of US firm Edwards Wildman continues as it emerges that corporate partners Eero Rautalahti and Stuart Blythe have resigned, with Blythe set to join CMS Cameron McKenna. It was not known at the time of going to press where Rautalahti is headed.

A trio of litigation associates are also understood to have resigned last week, including Rhys Davies, who is set to join recently-departed insurance heavyweight Francis Mackie to Weightmans.

The US top 100 firm has been in talks with disgruntled London partners following a string of exits, amid accusations that resentment has been building over three years due to the City site being ‘neglected’ by its Boston headquarters. Located at Old Broad Street, corporate partner Niall McAlister and insurance and reinsurance partner David Kendall are the final two partners understood to still be in talks with management.

The formerly five-strong splinter group first saw the departure of Shawn Atkinson, who served as co-chair of Edwards Wildman’s venture capital group and who resigned two weeks ago to go to Orrick, Herrington & Sutcliffe.

Last week, Legal Business revealed that partners at the firm were in potential breakaway talks with UK firm, RPC, California-headquartered Cooley and top 55 Global 100 US firm Foley & Lardner.

Sarah.downey@legalease.co.uk

Legal Business

Olswang’s head of real estate finance quits for Dechert

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Strategic recruitment CMS UKDechert
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Olswang’s head of real estate finance Eleni Skordaki has quit the firm after nearly ten years to join Dechert’s City finance and real estate group.

Skordaki specialises in advising banks in real estate financings and restructurings.Last year, she advised Santander and Hypothekenbank Frankfurt on a £177m acquisition facility provided to Legal & General UK Property Income Fund. Prior to joining Olswang in October 2004, Skordaki was a senior lawyer at Allen & Overy for four years.

Her hire follows the top 35 UK firm’s growth of its financial services practice in Luxembourg with the hire of partner Johan Terblanche, who joined from Dutch firm Loyens & Loeff.

Terblanche has experience of advising managers and investors of investment funds, focusing specifically on alternative funds.

Dechert in February this year was among the first of the US firms to reveal its financials for 2013, with revenue up by 6.6% to $777.2m from $729m.

The firm has been expanding more generally in Europe, including launching a life sciences practice in Frankfurt in June, with the hire of Ruediger Herrmann, former corporate head at Wilmer Cutler Pickering Hale and Dorr.

Dechert chief executive officer Daniel O’Donnell (pictured) said: ‘We are very pleased to have both Eleni and Johan join us. Their experience helps us expand in two key practice areas. They are a welcome addition to our firm.’

Jaishree.kalia@legalease.co.uk

Legal Business

Financial results 2013/14: Nabarro posts static revenues while PEP jumps 10.5%

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Financial results 2013/14 CMS UK
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Top-30 LB100 firm Nabarro is the latest to unveil its 2013/14 financials, with annual turnover broadly flat at £116.7m, a rise of 0.3%, while profit per equity partner (PEP) is expected to rise 10.5% to £475,000, constituting a double digit increase for the second successive year.

While the figures are preliminary, net profits are also expected to increase by 8% to £34.1m. The firm said in a statement today (1 July) that in addition to investing in its future, it continues to maintain a strong cash balance and no overdraft.

Nabarro senior partner Graham Stedman (pictured) said: ‘This has been a positive year for Nabarro. We have made important investment decisions to support long term growth of the firm in line with our strategy to increase our international work and invest in our key sectors. Profitability is an important measure and it is good to see us continuing to make progress on that front as well as recording a healthy increase in PEP for the second successive year.’

Annual turnover last year moved up 2.6% from £113.4m in 2011/12 to £116.3m in 2012/13. The firm also saw PEP rise by 30% from £332,000 to £430,000 during the course of the financial year, while preliminary figures showed net profits increased by 11% from 2012/13.

Major advisory leads for the firm this year saw its heavyweight real estate team, led by Ciaran Carvalho, advise on a £800m deal between Hermes Real Estate and The Co-Operative Group to become equal partners on the regeneration of buildings and land in central Manchester. It further played a central role in advising Land Securities on its £656m acquisition from Lend Lease of a 30% stake in Bluewater, the iconic Kent shopping centre.

The firm made several prominent lateral hires since September, including Addleshaw Goddard real estate head Mark Haywood and partners Nathan Jansen and Monica Brij to launch in Manchester; DLA Piper IT litigation head Lee Gluyas in March; and Osborne Clarke employment partner Richard Brown in September. It did, however, lose a trio of climate change and energy lawyers, including energy head Tom Bainbridge, partner Louisa Cilenti and senior associate Sandy Abrahams, to City technology boutique Temple Bright this week.

The UK firm also saw French firm August & Debouzy leave its European alliance, which also includes Germany’s GSK Stockmann + Kollegen, Italian firm Nunziante Magrone and Spanish firm Roca Junyent, blaming its departure in part on the desire to grow its own network.

Nabarro did, however, enhance its international reach via the opening of Middle East hub in Dubai earlier this year in what became its third international office.

sarah.downey@legalease.co.uk

For our latest analysis of Nabarro, see Always a bridesmaid: can Nabarro revive itself post-Lehman without a partner?

Legal Business

Norton Rose Fulbright hires CMS Cameron McKenna DCM partner

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Strategic recruitment CMS UKNorton Rose Fulbright
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Norton Rose Fulbright (NRF) has hired CMS Cameron McKenna banking and finance partner Nigel Dickinson to its debt capital markets team.

It is understood Dickinson recently resigned but is currently in negotiations with Camerons over clients. His start date at NRF has yet to be decided.

Prior to joining Camerons in 2012 as a partner in the financial services and products group, Dickinson worked in the London and New York offices of Magic Circle firm Allen & Overy, where he was a senior associate. He advises investment banks and retail banks, end users and service providers on matters including derivative-linked debt securities, structured products and complex liquidity, regulatory capital, accounting, tax, risk-transfer and funding transactions.

Acknowledged as a third-tier DCM team by the Legal 500, NRF is said to be at the ‘forefront of market developments’ in areas including equity-linked and shari’ah-compliant structures, with JP Morgan and BNP Paribas listed as key clients.

In March the firm enhanced the practice area in Dubai with the hire of DCM partner Gregory Man from Clifford Chance.

Jeremy Edwards, global head of banking and finance, said: ‘Derivatives are now used in many of the transactions we are advising on globally, particularly those involving our banking, energy, infrastructure; mining and commodities and transport clients. Nigel’s appointment will significantly enhance our transactional derivative capability.’

Cameron McKenna, meanwhile, has made efforts in recent years to improve its sector offering including the hire of Simmons & Simmons Daniel Winterfeldt in 2011 to head its international capital markets practice, as well as partners Peter Crichton and Ashley Smith from DLA Piper in 2012 and A&O counsel Tim Elliott as partner last year.

Sarah.downey@legalease.co.uk