Legal Business

CMS’ Aberdeen capability sees it awarded £572m BG Group disposal

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Corporate CMS UK
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CMS Cameron McKenna’s capability in Aberdeen has seen it selected ahead of fellow BG Group panel law firms Freshfields Bruckhaus Deringer and Clifford Chance to lead the energy producer’s £562m sale of a North Sea gas pipeline to Anglo-French fund manager Antin Infrastructure Partners.

The sale, which is the largest since BG Group’s $1.9bn sale of a stake in its Queensland Curtis project in Australia to China National Offshore Oil Corporation last year, is being led by CMS’ Aberdeen-based oil and gas specialist Norman Wisely alongside London-based head of UK private equity, James Grimwood.

Herbert Smith Freehills is advising Antin led by corporate partner James MacArthur, working alongside finance partner Will Nevin, global head of tax Isaac Zailer and corporate partner Henry Davey, who recently represented EDF on the sale of its electricity distribution businesses to a consortium headed by Hong Kong billionaire Li Ka-Shing for £5.8bn.

Continuing the trend towards bringing more legal work in-house, chief counsel of corporate finance at BG Group, Howard Landes, handled a large portion of the work surrounding the sale of BG’s 63% interest in the Central Area Transmission System. The 404km gas pipeline links three North Sea oil and gas platforms with an onshore gas processing terminal in Teesside, north England.

It is anticipated the transaction will close in the second half of 2014.

BG Group, which streamlined its legal panel in November 2013 when Allen & Overy and Herbert Smith Freehills were dropped and Clifford Chance instated alongside Freshfields and CMS Cameron McKenna, said CMS Cameron McKenna’s Aberdeen office secured their appointment. Landes told Legal Business: ‘We used CMS because the asset was run out of Aberdeen so we wanted people with particular knowledge there.’

CMS expanded into Aberdeen in 1996, combining forces this year with merger partner Dundas & Wilson, which opened an office in the Scottish City in 2012.

tom.moore@legalease.co.uk

Legal Business

Comment: Cameronics redux – a hard-to-grasp institution that looks set to surprise

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Comment CMS UK
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Given that I get paid to poke around law firms’ inner workings, it’s not that often that I find it hard to get my head around a law firm but CMS Cameron McKenna in its 2014 form is one such creature.

The clichéd view of the firm is of a slow-moving practice struggling with a hard-to-sell international alliance and a classic case of chasing pack malaise – too close to the Magic Circle for comfort, but too big to have the lean focus of a quality mid-tier. Like most clichés there is more than a grain of truth in this view but, as Camerons absorbs Scotland’s most storied law firm Dundas & Wilson, at closer glance the truth looks far more complex and interesting.

For one Camerons has been through a barrage of under-the-bonnet restructuring post-Lehman that has comprehensively re-fashioned its business, cost-base and partnership. The firm will only have to see a marginal increase in its business and its top-line to see profits rocket. The coming bounty of a great commercial deal on its new Cannon Place office also promises to be the gift that keeps on giving.

And though the Dundas deal has suffered some criticism, in many ways it looks a promisingly pragmatic bit of work – certainly low risk but with a moderate-to-high potential upside.

But then Camerons is a practice with some contradictions. Typically law firms are badged as either actively managed or collegiate partnerships. Camerons is both and has, in contrast to its peer group, achieved this balance without much apparent damage to fee-earner morale or even some of its own partners noticing the shift in tone.

It will be interesting to see if the expansionist pairing of new senior partner Penelope Warne and second-term managing partner Duncan Weston will move the firm to capitalise on its leaner and more focused form to push through a more outwardly ambitious agenda.

Part of the reason for confusion around the firm is, of course, CMS, the European alliance that Camerons founded 15 years ago. In moving to understandably push the one-entity CMS message, Camerons has at times hurt its own domestic brand due to the problems of pitching such a distinctive institution. And neutral observers would still see CMS as somewhat short of the pitch.

But on closer inspection, the consensus view is that the CMS grouping has continually out-performed expectations both in economic terms and in building co-ordination. More has been achieved than is supposed outside Camerons. If this message can be communicated to bluechip clients, CMS may yet live up to its own brochure.

Not that it is all positive. Questions remain about the extent to which the firm is motivating its expanded junior ranks and it’s not ideal that its revenues remain more than 10% below its boom-time high.

Still, the conclusion has to be that CMS Cameron McKenna looks to be one of the most interestingly positioned top 50 firms for the years ahead.

alex.novarese@legalease.co.uk

For in-depth analysis of CMS Cameron McKenna see The Programme – how Dundas & Wilson fits into the CMS masterplan

Legal Business

Camerons launches cost-saving venture through Dundas offices as the firm prepares for move to Cannon Place

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Innovation CMS UK
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CMS Cameron McKenna plans to utilise the Scottish offices and personnel of new merger partner Dundas & Wilson as a form of northshoring as the top-ten firm unveiled its real estate ‘deal of the century’ with its move into its new Cannon Place offices next year.

The Dundas cost-saving initiative, spearheaded by Camerons energy partner Stephen Millar, who alongside managing partner Duncan Weston and senior partner Penelope Warne led the merger negotiations between the two firms, will see Camerons split the pricing of City-generated deals into work done in London and that which is hived off to Scottish lawyers under the supervision of a partner.

Legal Business

Always a bridesmaid: can Nabarro revive itself post-Lehman without a partner?

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Focus CMS UK
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Sarah Downey reports on the property leader’s attempts to position itself.

With its five-year financial performance standing out as one of the worst of the top 50 in last year’s LB100 and at least one abandoned merger talk under its belt, Nabarro is perceived by a number of clients and rivals as a firm in need of change.

Heavily dependent on a mixture of high-end but also commoditised property work, the firm has dropped down the UK legal rankings from its 2008 high, when it stood in 23rd place on the back of a revenue increase of 16% to £142.4m.

Legal Business

The Programme – how Dundas & Wilson fits into the CMS masterplan

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Legal mergers CMS UK
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With a takeover of Dundas & Wilson under its belt and a barrage of post-Lehman re-engineering in place, CMS Cameron McKenna hopes it can secure its breakthrough globally and at home. LB investigates a complex beast that some of its own partners don’t understand.

On 10 December the London partners of Dundas & Wilson were called home. Given the dramatic nose-dive that had afflicted Scotland’s proudest legal institution in the previous five years, expectations were that this would herald drastic action to revive its fortunes.

Legal Business

Cameronics redux: a hard-to-grasp institution that looks set to surprise

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Comment CMS UK
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Given that I get paid to poke around law firms’ inner workings, it’s not that often that I find it hard to get my head around a law firm but CMS Cameron McKenna in its 2014 form is one such creature.

The clichéd view of the firm is of a slow-moving practice struggling with a hard-to-sell international alliance and a classic case of chasing pack malaise – too close to the Magic Circle for comfort, but too big to have the lean focus of a quality mid-tier. Like most clichés there is more than a grain of truth in this view but, as Camerons absorbs Scotland’s most storied law firm Dundas & Wilson, at closer glance the truth looks far more complex and interesting.

Legal Business

A bit of hustle, a bit of love – GCs expect attention and pitching from advisers

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In-house CMS UK
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In our focus on Nabarro this month the firm comes in for some criticism at the hands of an important client for its failure to engage, to make the client aware of its strategy, or simply to make the general counsel (GC) feel sufficient love.

While this is just one client and Nabarro could undoubtedly rustle up on the spot a dozen others that have a different take on their client service levels, this prestigious client legal head says: ‘I’ve spoken to other GCs about it and they have similar issues, it’s bewildering.’

Legal Business

Nabarro launches in Manchester with hire of Addleshaws trio; CMS brings in BLP partner to head aircraft finance

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Strategic recruitment Addleshaw GoddardCMS UK
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Nabarro is set to launch an office in Manchester with the hire of a trio of real estate partners from Addleshaw Goddard as CMS Cameron McKenna also announced today (14 May) that it has hired Berwin Leighton Paisner (BLP) asset finance partner Keith Wilson, who joins to head up the top 10 UK firm’s aircraft finance practice.

Joining Nabarro are Addleshaws real estate head Mark Haywood and partners Nathan Jansen and Monica Brij, who the top 30 firm said it has taken on in a bid to ‘enhance its practice and reputation for acting on the largest and most complex deals in the sector.’

It is understood that Addleshaws announced the departures to its partnership yesterday. Haywood has served as head of real estate at Addleshaws since last summer, after taking over from partner Adrian Collins. A spokesperson for the firm confirmed that real estate partner Michael Reevey is taking over as interim head of real estate before the firm officially appoints a successor. Brij, meanwhile, joined Addleshaws in 2007 after a four-year stint at Linklaters.

The launch of a lower-cost Manchester office follows the announcement by BLP in March that it is launching in the North West City, from where it has already been appointed as Tesco’s go-to real estate provider after a panel pitch.

The firm’s head of real estate, Ciaran Carvalho said: ‘Mark, Nathan and Monica are fantastic additions to our real estate team. Today’s announcement is a sign of intent. Nabarro is rightly proud of its market leading real estate practice and we are confident in investing to continue to support national and international clients in the sector.

‘An office handling the most complex real estate structures, funds and deals in Manchester will strengthen the reputation established by our London team and complement the high quality investment, leasing and asset management work we deliver to clients from our Sheffield office.’

Nabarro has made several lateral hires in recent months including Osborne Clarke employment partner Richard Brown last September; IT and disputes partner Lee Gluyas from DLA Piper in March; and real estate and healthcare partner Candice Blackwood from BLP in early May.

Elsewhere, Wilson’s departure to CMS comes three years after he joined from Paul Hastings’ City office, where he was head of finance.

Wilson has 25 years’ experience in aircraft finance and has acted for clients within debt and capital market transactions, leasing transactions and portfolio acquisitions and sales. He also has experience advising in oil and gas financing and leasing particularly reserve based lending, vendor financing, ship finance and real estate finance.

CMS banking and international finance head Rita Lowe said: ‘His [Wilson’s] appointment is consistent with our global strategy and in particular our focus on sectors which support our clients. Keith will work alongside an international team to support and strengthen our existing expertise and international client base.’

Wilson’s move to CMS is the most recent in a spate of BLP exits, and follows the departure of former head of finance Matthew Kellett to accountancy giant EY in April and head of banking and finance litigation David Hughes to King & Spalding.

Sarah.downey@legalease.co.uk

Jaishree.kalia@legalease.co.uk

Legal Business

Election fever: Clifford Chance corporate head Tinkler steps down as Nabarro prepares for first MP elections in 15 years

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Leadership Clifford ChanceCMS UK
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Clifford Chance (CC) private equity partner Simon Tinkler has stepped down from his role as London head of corporate after a four-year term, as top 30 LB 100 firm Nabarro gears up for its first managing partner elections in 15 years this summer, with current head Andrew Inkester expected to stand again.

CC is expecting to start the soundings process for Tinkler’s replacement in the next two months, with the successful candidate due to take over in August. However, it is understood that no one has yet put themselves forward for the job.

Tinkler took the reins following an uncontested election in 2010 after David Pearson had completed two terms.

The news follows this morning’s announcement (13 May) that the firm’s Munich finance partner Barbara Mayer-Trautmann will join its partnership council, replacing Robin Abraham who relinquished his role following his election as regional managing partner for the firm’s Middle East offices.

Meanwhile, Nabarro will hold its first voting process for managing partner in either July or August, having changed the process 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 four-year period.

Once the election process gets underway, the 424-lawyer firm will set a date for nominations to be made followed by hustings and a final vote.

While Inkester has not formally made an announcement, many of the partnership expect him to run again. The election comes three years after he was nominated by former senior partner Simon Johnston, when longstanding head Nicky Paradise stood down in 2011 after 12 years in management.

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

Fee income rose more modestly by 4% to £117m from £112.4m in 2011/12. The firm also unveiled a 31% pay increase for its top fee earners against a 13% drop in partner numbers.

The firm’s LLP accounts filed at Companies House further showed that the highest pay taken home by a member for the year was £635,000; up from £486,000 in the 2011/12 financial year.

The elections come as the firm prepares to move to new City offices at 125 London Wall in November, when its current lease at Lacon House in Holborn expires.

Sarah.downey@legalease.co.uk

See here for an interview with Simon Tinkler on CC’s private equity practice

Legal Business

Channel 5’s £450m sale to Viacom sees Rosenblatt, Shearman, Olswang and Lewis Silkin acting

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Corporate CMS UKShearman & Sterling
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Channel 5’s £450m sale to Viacom has thrown up roles for Rosenblatt Solicitors; a London-based Shearman & Sterling team; Olswang and Lewis Silkin as the US broadcasting giant snaps up the UK’s only privately owned commercial television channel.

Having begun work only on 27 April, Rosenblatt acted for Channel 5 and its owners, Richard Desmond’s Northern & Shell, with a team led by corporate partner Jon Lovitt and media partner Chris Pulham. The team was supported by regulatory partner Peter Price, and real estate partner Martin Buckerlee.

Shearman is advising longstanding client Viacom, which owns MTV, Nickelodeon and Comedy Central among many other channels which are seen in over 600m households worldwide. Shearman’s team was entirely London-based, led by head of European M&A Laurence Levy and including antitrust partner James Webber and recent Weil Gotshal & Manges lateral Sarah Priestley, who advised on tax matters.

Shearman advised Viacom on its landmark acquisition of US film production company Dreamworks for $1.6bn in 2005, in a deal led by current senior partner of the firm, Creighton Condon. Last year the firm advised Viacom on the purchase of the remaining stake in MTV Italia for €13.4m.

Completing the roster of advisers on this deal is Olswang, with a team led by media regulatory partner John Enser advising Viacom on commercial regulatory matters and Lewis Silkin’s litigation partner Richard Miskella, who advised Viacom on employment issues.

While the purchase price fell short of the £700m target originally set by Desmond, it is over four times the £104m he paid for it four years ago.

‘This transaction is typical of our approach to complex transactions that need to be completed within tight time constraints and is a testament to my team’s skills and tenacity,’ said Ian Rosenblatt, founder and senior partner of Rosenblatt.

‘The transaction came out of an auction process started in January 2014. Work started on Sunday 27th April and went on around the clock in order for signing to take place on Wednesday night.’

David.stevenson@legalease.co.uk