Legal Business

Stewarts Law moves to rebuild fledgling employment practice with senior Dentons hire after early setback

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Litigation boutique Stewarts Law has moved to rebuild its employment capability with the hire of longstanding Dentons employment partner Richard Nicolle, who joined the firm last week.

The legacy SNR Denton lawyer has over 20 years’ experience in both contentious and non-contentious employment law, acting for both employers and senior individuals.

Speaking to Legal Business, Nicholle, who was approached by Stewarts Law last October, said: ‘I had been at Dentons for 12 years – it’s an excellent firm. I felt that at my stage of career, I was ready for a change and Stewarts Law provides an exciting platform.

‘It’s a firm I had noticed from a distance was on an upward trajectory in terms of the work it does and the quality of its financial performance and management.’

Stewarts Law launched an employment practice in 2010 with the hire of Lewis Silkin partner Gareth Brahams, followed by the arrival of Simmons & Simmons associate Tim Spillane, who joined as a partner. In 2012, Russell Jones & Walker partner Arpita Dutt joined, however, Dutt and Brahams left last year to start their own practice, Brahams Dutt Badrick French, with Spillane appointed as practice head. 

The top 65 UK law firm has a reputation for taking on high profile employment battles, having previously represented 104 London investment bankers fighting for €52 million (£43.9 million) in unpaid bonuses from German banking giant Commerzbank.

Spillane, said: ‘We are committed to recruiting the very best lawyers to meet the needs of our clients. Richard’s appointment strengthens our current market position as a leading employment practice in the UK.’

The firm unveiled a significantly above average financial performance in the 2012/13 year, with a 30% increase in revenue to £45.2m alongside a 25% increase in profit per equity partner to £1.14m, making it one of the strongest performers in the LB100 and pushing it up the table by seven places to 65th place.

At the time the results were unveiled in July last year, managing partner John Cahill (pictured) said: ‘Next year we hope to beak the £50m revenue barrier, and achieve 40% net profit and to form further strategic alliances overseas outside of the US. We are currently in discussions with a number of firms.’

sarah.downey@legalease.co.uk

Legal Business

Jones Day hires CC Frankfurt head of automotives and McKenna Long Brussels regulatory partner

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Fresh from its run of lateral hires from Berwin Leighton Paisner (BLP) in London, Jones Day has made two prominent European partner hires, as Clifford Chance’s (CC) Frankfurt-based automotive head Johannes Perlitt joins the firm’s corporate practice while the head of EU product regulatory practice at McKenna Long & Aldridge in Brussels, Ursula Schliessner has also joined the firm as a partner.

Corporate/M&A specialist Perlitt joins Jones Day after 14 years as a partner with Magic Circle CC, where he headed the automotive industry group. Having represented global companies in a number high profile corporate and capital markets transactions, he previously advised Volkswagen on its combination with Porsche to create the Integrated Automotive Group – a €4.7bn deal for an accelerated integration model introduced in July 2012.

Partner-in-charge of Jones Day’s German office, Ansgar Rempp, said: ‘The addition of Perlitt demonstrates that Jones Day has become one of the most sought after firms for first class laterals. We are glad to have recruited one of the most experienced German lawyers for public takeovers and corporate law.

‘This is another important step in the ongoing expansion of our presence in the German market. We will continue to pursue our strategic goal of becoming one of the leading corporate law firms in Germany. Due to its economic strength and leading role within the EU, Germany is among the most important locations for Jones Day for the long term.’

Jones Day has been on a recruitment drive in Germany, strengthening its Düsseldorf office with hires including Simmons & Simmons partner Ulrich Brauer, who joined last April as German head of corporate and M&A. Former Bird & Bird partner Kerstin Mast and Ralf Recknagel of German firm GSK Stockmann + Kollegen also joined the firm’s German corporate practice the year before.

Separately, it has emerged that Schliessner joined the firm’s Brussels office in mid-February as a partner in its government regulation practice.

With more than two decades of experience in EU regulatory matters, and a specific focus on chemical, environmental, food, biotech, product safety, and workers’ health & safety regulatory issues, Schliessner advises companies and trade associations on regulatory compliance issues, product authorisations, labelling, and circulation across the EU in a broad range of industry sectors.

Acknowledged by the Legal 500 as McKenna Long’s ‘lead advisor’ on consortium management, registration and authorisation, her clients have included Chromium Trioxide REACH Authorization Consortium and Iron Oxides REACH Consortium.

On her arrival, Schliessner said: ‘This move is a win-win situation that will provide our existing clients with access to all the resources of a global law firm with offices in strategic locations around the world, and will also allow us to leverage our knowledge and experience to serve the needs of an even greater number of clients.’

Noel Francisco, head of the firm’s government regulation practice, added: ‘With her broad-ranging experience, and her leading reputation on REACH, she will strongly enhance our EU regulatory law practice in Belgium and across Europe, complementing our teams in France, Germany, Italy, the Netherlands, Spain, and the UK.’

Last week (28 February) Legal Business revealed that Jones Day had secured the hire of its fourth BLP partner since last August, with the arrival of banking and capital markets partner Paul Simcock.

Sarah.downey@legalease.co.uk

Legal Business

Revolving doors – Weil, Latham, Freshfields and Dentons among the firms opening 2014 with senior recruits

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Increasing confidence in the transactional market has contributed to a rash of senior partner moves at the start of 2014, with the UK’s leading firms bolstering both their London and international practices.

In the City, upwardly mobile US practices continued to boost their capability with Weil, Gotshal & Manges hiring Hogan Lovells banking and finance partner Chris McLaughlin, who has extensive experience of cross-border private equity buyouts and European real estate acquisitions and restructuring. His hire came a week after Latham & Watkins hired Weil Gotshal funds partner Nick Benson, its fifth City hire within the past 12 months.

Legal Business

LLP filings 2012/13 – DAC Beachcroft, Dentons, Olswang and Ince & Co reveal numbers

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DAC Beachcroft, Dentons, Olswang and Ince & Co have joined the ranks of leading UK law firms to have filed their limited liability partnership (LLP) accounts on Companies House, with the former three all seeing an increase in their bank debt.

Dentons UKMEA LLP saw its bank loans increase by around £3m in the 2012/13 year, while profit was down 10% to £28.3m, which the firm attributed to increased marketing and administration costs stemming from its tripartite merger with Salans and Fraser Milner Casgrain.

Revenue at the top-10 firm dropped 1.5% from £144.8m to £142.8m.

Meanwhile, in line with firms including Shoosmiths and Morgan Cole that saw their highest paid equity partner sum fall, Dentons paid their best earner £564,000, constituting an 18% drop when compared to 2011/12.

The firm enjoyed savings in staff costs, which decreased from £75,705 to £72,822 this year, due to a decline in numbers, including fee earners and support staff, from 994 to 928 members.

Elsewhere, as DAC Beachcroft yesterday (21 January) announced the opening of its representative office in New York, its LLP accounts reveal increases in its borrowings over the course of the last financial year to finance continued investment.

During a year in which the 1000-lawyer top 25 UK firm acquired the assets of Andersons Solicitors in Scotland in September 2012 and formed DAC Beachcroft Chile Limitada in Santiago two months later, its accounts show that the firm has refinanced its banking facilities, which now include a £40m four-year revolving credit facility, while the LLP accounts also confirm a £10.2m cash call from partners.

Net debt grew 14% from £34m in 2011/12 to £38.7m the following year, with the Andersons acquisition adding close to £500,000 to net debt, but adding net assets of £600,000.

The accounts confirm a 14% increase in turnover for 2012/13 to £186.8m from £163.5m the year before. Operating profit too increased 13% from £30.8m at the end of 2012 to £34.6m in 2012/13.

Staff costs increased 16% from £86m to £99m as total staff grew 11% from 1842 at the end of 2012 to 2051 the following year, as did the average number of equity partners from 89 to 113.

However, the highest paid equity member took home £450,000 at the end of last financial year, 22% less than £579,000 the year before.

Meanwhile, Olswang’s filings reveal that its overdraft grew by £3m to £18m in 2013, with net debt up to £13.7m from £8.4m.

The UK top 40 firm, which saw its turnover increase from £108.5m to £110m but operating profit drop from £39.3m to £38m, paid its highest earning equity member a significantly heavier pay packet this year at £716,000, up from £576,000.

Its overall employee headcount dropped from 565 to 554 in 2013.

Standing out for reducing its bank loans, however, is top 40 firm Ince & Co, which LLP accounts show £500,000 in bank loans in 2013, compared to the previous year’s figure of £1.4m.

Revenue was more or less static in 2013 at £61.9m compared to £61.1m in the previous year, while the overall profit was £1m lower in 2013 at £19m.

The firm’s highest paid member also took home less in 2013 at £545,670 compared to £584,065 in the previous year.

Legal Business

Legal Business

Deal watch: Dentons advises Total on UK shale gas interest

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As the unconventional method of extracting shale gas increasingly becomes a phenomenon in the UK, Dentons has taken the lead on advising French oil and gas corporation Total on its 40% interest in two shale gas exploration licences in the UK- the first major oil company to invest in UK shale.

The energy giant confirmed it would invest $48.1m (£29.3m) in the search for shale gas in the Gainsborough Trough area in the East Midlands region covering an area of 240 sq km.

The Dentons team was led by energy partner Danielle Beggs and environment partner Sam Boileau, alongside its energy and planning team including senior associates John Stockdale and Roy Pinnock.

Total confirmed it is taking a 40% stake in two petroleum exploration and development licences held jointly by GP Energy, which has a 17.5% share; Egdon Resources UK and Island Gas (IGas) who both have a 14.5% stake each; and eCorp Oil & Gas UK with a 13.5% share. IGas will be the operator of the initial exploration programme, with Total subsequently taking over operation as the project moves towards development.

With investments of approximately $2bn each year in the UK, the deal will make Total Exploration & Production (Total E&P) the largest oil and gas producer in the country by 2015.

Beggs said: ‘Total is a longstanding client of Dentons, and we were therefore delighted to apply our expertise in shale gas to assist them in this landmark acquisition.’

Total senior vice president for Northern Europe, Patrice de Viviès, said: ‘This opportunity is an important milestone for Total E&P UK and opens a new chapter for the subsidiary in a promising onshore play. The group is already involved in shale gas projects in the US, Argentina, China, Australia and in Europe in Poland and in Denmark, and will leverage its expertise in this new venture in the UK.’

The deal comes within days of the firm expanding its energy, infrastructure and project finance City practice following the recruitment of high-profile energy partner and former head of Freshfields Bruckhaus Deringer’s energy and infrastructure group Charles July on 13 January.

Jaishree.kalia@legalease.co.uk

For more on the explosion of shale gas work, see The $6.4trn question – as legal advisers jostle for position, can shale gas live up to the hype?

Legal Business

Dentons hires high profile energy partner Charles July and Eversheds’ banking partner Michael Wainwright

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Increased optimism within the business sector at the start of 2014 is being reflected in a flurry of lateral hires as high profile energy partner Charles July joins Dentons as a partner in the energy, infrastructure and project finance City practice.

July joins from Watson, Farley & Williams, where he was head of the firm’s projects, commodities and export finance group in London. He joined the firm as a partner in May 2010, before which he was at Magic Circle firm Freshfields Bruckhaus Deringer for 28 years, latterly heading the energy and infrastructure group for the Middle East and North Africa region. He also led the firm’s Abu Dhabi launch in 2008, and was former head of the firm’s Asia project finance practice as well as Singapore office head between 1992 and 1998.

July has experience of advising on project development and finance work, private M&A and acquisition finance in the energy sector. He has also represented blue chip energy companies and banks on oil and gas, renewable energy, conventional power and energy infrastructure.

Dentons UKMEA head of energy, transport and infrastructure, Christopher McGee-Osborne said: ‘Charles and the broad-based energy and infrastructure expertise that he brings joins Dentons at an ideal time as we continue to see substantial opportunities for Dentons across all the energy and infrastructure markets in which we operate.’

The firm has also recruited Eversheds’ partner Michael Wainwright, who joins its City banking and finance practice. Wainwright comes with 30 years’ experience in the financial services industry, bringing with him expertise in commercial, regulatory and transactional work and experience in representing insurance companies, fund managers, banks, platforms and distributors. He is particularly well known for his work in the insurance market and retail financial services.

The move will strengthen the firm’s non-contentious regulatory practice, led by London-based financial services and funds practice head Rosali Pretorius, and also support the firm’s London transactional work and global banking and finance group.

Dentons UK head of banking and finance, Paul Holland said: ‘Financial regulation forms a key part of our banking and finance offering, and Michael’s depth of experience of a range of financial products will be a huge asset to us.’

The moves follow a string of hires by the top 10 firm in 2013, including Byron Nurse, who joined from Eversheds as a restructuring, insolvency and bankruptcy partner in September, as well as Sylvain Dhennin from Gide Loyrette Nouel and Hogan Lovells’ Samantha Hutchinson who joined the firm’s banking and finance practice in March and February respectively.

Jaishree.kalia@legalease.co.uk

Legal Business

Revolving Doors: Strategic growth for A&O, Eversheds, Wiggin, Dentons, Field Fisher and Olswang

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In the last major round of hires before 2013 draws to a close, Allen & Overy (A&O) has boosted its international competition capability while Eversheds has expanded its City tax team and firms including Wiggin, Dentons, Field Fisher Waterhouse and Olswang have this month made strategic lateral hires across the media, energy, real estate and insolvency space.

At the start of December, A&O hired Herbert Smith Freehills (HSF) competition partner Peter McDonald to head its Australian antitrust and competition practice. Previously a senior officer at the Australian Competition and Consumer Commission (ACCC), at HSF McDonald advised clients in the energy, mining, industrial, retail and financial services sectors.

McDonald, who is a member of the Competition and Consumer Committee of the Law Council of Australia, has experience of covering transactional advice, merger clearances, consumer and regulatory issues and defending clients in investigations and legal actions by the ACCC.

A&O co-head of the global antitrust practice Elaine Johnston said: ‘Peter’s appointment furthers our strategy to put in place a top-quality team of antitrust lawyers in the three key global regions: Asia Pacific, Europe and the United States. This ensures that we can offer our clients the critical advice they need on global antitrust, regulatory and litigation issues.’

The move comes after A&O this summer boosted its global antitrust practice with the hire of Visa Europe’s general counsel (GC) and executive vice president and company secretary Vanessa Turner as a partner in Brussels.

On the Continent, the burgeoning Paris market saw Dentons hire energy duo Ramin Hariri and Vincent Lacombe a week ago (3 December) from France’s largest law firm, Fidal, to boost its energy offering with a particular focus on Francophone Africa.

The duo focus on energy and project finance across the oil, gas, mining and infrastructure space in France, Africa and the Middle East and have experience of working under ‘OHADA’ – the organisation for the harmonisation of business laws adopted by 17 West and Central African nations.

Dentons Europe chief executive, Dariusz Oleszczuk said: ‘They work for a number of large energy and utilities companies and governments, which fits well with Dentons’ overall Africa strategy. In particular, they bring strong expertise under OHADA, which is greatly appreciated by clients. I am confident that the addition of Ramin and Vincent will not only enhance Dentons’ existing client relationships in Francophone Africa, but will also provide many new opportunities throughout our global firm.’

The move followed Olswang’s tie up in Germany with insolvency lawyer Christian Köhler-Ma, to launch ‘Olswang Restructuring Solutions’ – a business aimed at providing counsel to companies, managers, shareholders and creditors during crises and near-critical situations in Germany. The new consultancy service will launch on 1 January 2014.

Previously, Köhler-Ma was senior partner at Leonhardt Rechtsanwälte in Berlin and his clients have included Systracom Bank AG, Gameplay Deutschland GmbH, nuclear power plant engineering company Kraftwerks-und Anlagenbau AG and internet advertising agency I-D Media AG.

In the City, meanwhile, a key in-house mover over the past fortnight was Deloitte’s heavyweight tax litigation director Giles Salmond, who resigned to head up Eversheds’ City VAT disputes and indirect taxes practice.

As an indirect tax litigation specialist, Salmond has represented multinationals and UK PLCs both before the UK courts, tribunals and the European Court of Justice. Previously, he acted for Condé Nast in a leading VAT case and he was also involved in the first UK tax mediation.

Eversheds tax head David Jervis said: ‘Giles has developed a strong reputation in the market having acted for a wide range of clients across all sectors including consumer business, leisure and the financial services sector, having been involved in a number of high profile disputes with the tax authorities.’

Within the media law sector, boutique firm Wiggin this month recruited TV lawyer Medwyn Jones to join its TV group as a partner. Medwyn joins from Harbottle & Lewis, where he has been a partner for 20 years, and has advised some of UK’s leading drama production companies (including the producers of Sherlock, Call The Midwife, and the recent BBC drama series The Escape Artist), as well as on-screen and writing talent, rights owners, events owners and agencies.

He starts his new role at Wiggin in January. The hire follows that of Ted Shapiro, who was previously head of legal at the Motion Picture Association, who joined as a partner at the beginning of 2013.

Wiggin co-head of the TV group Charles Moore said: ‘In the advent of the UK TV tax credit, which Wiggin helped initiate, our TV practice has never been busier. We are already working with US networks and cable companies, UK broadcasters, banks and other financiers, as well as UK independent production companies, on a raft of UK and international productions and other ventures. With Medwyn joining our team, we will have a combined UK TV expertise and client base that is second to none.’

Also in the City, Field Fisher Waterhouse strengthened its real estate investment offering with the hire of partner Rhodri Pazzi-Axworthy from Nabarro, who will join on January 6 and will be based in the firm’s London office.

Freshfields Bruckhaus Deringer-trained Pazzi-Axworthy became a partner at Nabarro in 2006. He also chaired Nabarro’s European Alliance’s Real Estate Group. Prior to that, he worked as a partner at Maxwell Batley between 2002 and 2006. He has experience of representing investors and developers, and advising on the real estate aspects of complex corporate and finance driven transactions.

jaishree.kalia@legalease.co.uk

Legal Business

Merger talks: Dentons and McKenna Long partners say no to a tie-up

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Just two days after Orrick, Herrington & Sutcliffe and New York-headquartered Pillsbury Winthrop Shaw Pittman called off their potentially game changing merger, Dentons and McKenna Long & Aldridge have announced that their partners have said no to a tie-up, after the decision was put to a partnership vote yesterday (26 November).

Both firms confirmed that they were in merger talks in late September and a vote was originally scheduled for 14 November, which if it had gone through would have created a firm with around 3,100 lawyer globally.

However, a spokesperson for McKenna Long, which was formed from the 2002 merger of Atlanta’s Long Aldridge & Norman and Washington-based McKenna & Cuneo, last night sent Legal Business a statement saying: ‘We are not in a position to successfully bring our firms together at this time. We look forward to maintaining the many friendships and working relationships, including with shared clients that partners in both firms have forged. Both firms will continue to advance their respective strategic priorities.’

Dentons, which has 2360 lawyers and has undergone successive mergers, including latterly the three-way tie-up last November of SNR Denton, Salans and Canada’s Fraser Milner Casgrain, saw a flat 2012/13 revenue figure of £830m and profits per equity partner of £451,000.

News of the decision comes in the same week as the potentially game changing merger between California-based Orrick, Herrington & Sutcliffe and New York-headquartered Pillsbury Winthrop Shaw Pittman was called off after the firms said client conflicts of interest had proved insurmountable.

Those firms disclosed around a month ago that they were in talks, with a view to creating a 1,800-lawyer practice with revenues of around $1.4bn, putting the combined entity in the top 15 law firms in the world by fee income.

sarah.downey@legalease.co.uk

Legal Business

Dentons’ Howard Morris to join Morrison & Foerster as head of business restructuring

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One of Dentons best-known long term senior managers and a solid restructuring partner, Howard Morris has joined Morrison & Foerster to head its business restructuring & insolvency group in London, nearly three months after the banking lawyer resigned from the firm after 22 years as a partner.

Morris (pictured) joined legacy Denton Hall in 1991 and served in a number of senior positions as the firm grew and changed names under successive mergers, including the shared role of chief executive alongside current CEO Elliot Portnoy at SNR Denton, created out of the 2010 merger with US-based Sonnenschein Nath & Rosenthal.

He went on to act as chief integration officer for Dentons’ tripartite union with French firm Salans and Canadian firm Fraser Milner Casgrain that went live this year, before tendering his resignation in September.

At Morrison, Morris will now focus on cross-border and pan-European transactions and insolvency proceedings, and the firm said today (18 November) that his arrival ‘comes at a time of accelerated growth for [the firm] in Europe.’

Chair of the top 30 Global 100 firm’s business restructuring & insolvency group Gary Lee, said the growth of its business restructuring & insolvency group is a ‘key component of MoFo’s strategic development.

‘The addition of Howard comes at a crucial time with significant levels of corporate debt still to be restructured across the UK and more widely in Europe. His experience and track record make him the ideal individual to head this group in London. Distressed investors are increasingly looking for opportunities in Europe and this appointment demonstrates our continued commitment to our clients in this area,’ Lee added.

Morris said: ‘Morrison & Foerster’s terrific global reputation, coupled with the global scale of its market leading restructuring and insolvency practice, make the firm the obvious choice for me. The firm has a collegial culture, first-class lawyers and a fabulous global client base.’

Meanwhile, Dentons latest merger talks with US firm McKenna Long & Aldridge have gone quiet. A decision on the proposed tie-up, that would give the firm a 3,100-lawyer headcount and push revenues through the £1bn mark, was due to take place no later than last Thursday (14 November) by way of a partner vote, however there has so far been no word from either firm.

sarah.downey@legalease.co.uk

Legal Business

Old and new faces: Squire Sanders re-elects UK and US heads while Dentons appoints new chief executive

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Squire Sanders has re-appointed Peter Crossley and Stephen Mahon to their respective European and firm-wide managing partner roles in a week that has also seen Dentons elect its Warsaw managing partner, Tomasz Dabrowski, as the new European chief executive seven months after its tripartite merger went live.

For Squire Sanders, the re-election of Crossley and Mahon, which were appointed by the firm’s UK and US LLP management committees, will see the duo undertake a further three-year term beginning 1 January 2014.

Having served two terms as legacy Hammonds’ managing partner, Crossley took up the role of European managing partner when the firm merged with US firm Squire Sanders & Dempsey in January 2011.

Prior to becoming managing partner in New York, M&A specialist Mahon has held a number of leadership positions at the top 100 US firm, including acting as a member of its management committee from 2004 to 2008, serving as global business practice leader, and acting as chair of the firm’s private equity practice group.

Meanwhile, Dentons’ new European chief Dabrowski is currently the firm’s co-chair of European corporate, head of Central and Eastern Europe (CEE) and Warsaw managing partner. He succeeds outgoing head and former global managing partner of legacy firm Salans, Dariusz Olezczuk, whose term ends on 31 December.

Having joined legacy Salans in 1992, Oleszczuk was previously global managing partner of the now merged firm – a role he was elected to for three consecutive terms by the firm’s partnership since 2005 – prior to becoming the European chief executive of Dentons in March 2013, a firm statement said today (31 October).

Since the tripartite merger of SNR Denton, Salans and Fraser Milner Casgrain went live in March, the new entity has faced the occasional reverse, particularly within the European region where a 10-lawyer team led by high profile partner Joel Benjamin quit for CEE practice Kinstellar in September.

However, the firm’s expansion plans continue regardless, as more recently evidenced in the US, as it confirmed this week (30 October) that its proposed tie up with McKenna Long & Aldridge is set to go to a vote in November.

Sarah.downey@legalease.co.uk