Legal Business

Leadership: Freshfields veterans Braham and Pugh set to go head-to-head in senior partner elections

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A contest between the firm’s disputes and corporate partners is set as Freshfields Bruckhaus Deringer’s former disputes and corporate heads are expected to be the frontrunners among those campaigning for the senior partner role as the firm kicks off its election process.

The nominations for the firm’s new generation of leadership, which is overseen by its partnership council, were already underway as Legal Business went to press and were expected to close in early April.

The running to lead one of the world’s largest and most powerful law firms is set to see former disputes head Chris Pugh (pictured) stand for senior partner against previous head of corporate Edward Braham, as current leader Will Lawes gets ready to stand down from the role at the end of the year.

While at least two other senior equity partners are also expected to be nominated – one each from the US and Germany offices – the real battle is likely to be between veterans Braham and Pugh, creating a contest between the firm’s corporate and disputes practices.

Both Braham and Pugh have already had a taste of leadership and would enjoy strong backing in London having recently stepped down from their practice head roles at the end of 2014.

‘Edward is smart, has charisma and is charming, whereas Chris has a strict discipline and is a vigorous lawyer,’ says one Freshfields partner. ‘Both are strong candidates and would make a great team together.’

Pugh was previously cited as standing for the firm’s managing partner role, which is also up for grabs, with this year being current head David Aitman’s final as global managing partner. Incumbent Lawes secured the senior partner role in 2010 in a contest against chief executive Ted Burke. Burke was subsequently named managing partner, though he stood down from his role in 2013, with competition veteran Aitman stepping in.

In typical Freshfields fashion, the senior partner has traditionally appointed the central leadership team, which comprises the managing partner and executive partner, directly. It was unclear at the time of press who will be in the running to take on the managing partner role, and German-based current executive partner Stephan Eilers’, position. One partner tells Legal Business: ‘Nominees are not mentioning who their teams are. At this stage, people seem to be open-minded and are looking at the options.’

Candidates will make their hustings at the firm’s partner conference in Paris at the end of May, where the nominees will pitch their teams to the partnership. All runners require a minimum of a 5% partnership vote before becoming an official nominee. Both leadership roles will be finalised by the end of September. In October, the management handover period will begin, which will last three months.

jaishree.kalia@legalease.co.uk

Legal Business

Freshfields veterans Braham and Pugh set to go head-to-head in senior partner elections

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Jaishree Kalia follows the contest between the firm’s disputes and corporate partners Freshfields Bruckhaus Deringer’s former disputes and corporate heads are expected to be the frontrunners among those campaigning for the senior partner role as the firm kicks off the election process.

The nominations for the firm’s new generation of leadership, which is overseen by its partnership council, were already underway as Legal Business went to press and were expected to close in early April.

Legal Business

A £47bn deal: Slaughters and Freshfields win key roles on Shell’s acquisition of BG Group

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Slaughter and May and Freshfields Bruckhaus Deringer have both won key roles advising on Royal Dutch Shell’s £47bn acquisition of BG Group – likely to be one of the biggest M&A deals this year.

Slaughters provided legal counsel to Shell, supported by Cravath, Swaine & Moore on US law and best friend firm De Brauw Blackstone Westbroek on Dutch aspects of the deal. Freshfields won the mandate for BG, with Goldman Sachs and banking boutique Robey Warshaw advising on the financial aspects of the deal.

Shell is fielding a large team of in-house lawyers for the deal, which values BG at £47bn, led by legal director Donny Ching and including company secretary Michiel Brandjes.

The Slaughters’ team advising on the oil major’s merger is being led by corporate partners Roland Turnhill, Hywel Davies and Rebecca Cousin, and includes tax partner Steve Edge, financing partner Matthew Tobin and competition partners Bertrand Louveaux and Jordan Ellison. Pensions and employment partners Jonathan Fenn and Roland Doughty are also acting.

The De Brauw team is led by partner Paul Sleurink and the Cravath, Swaine & Moore team is led by partners William Rogers and Richard Hall.

In a big win for the firm, corporate partner Graham Watson and M&A partner Mark Rawlinson are leading for Freshfields on the BG side, supported by senior corporate associate Richard Jones. BG conducted a panel review at the end of 2013 which saw Freshfields retain its spot alongside CMS Cameron McKenna, while Clifford Chance beat Herbert Smith Freehills and Allen & Overy to the last position.

The deal will require approvals from regulators in the EU, China, Brazil and Australia as well as both companies’ shareholders before it can be completed, currently targeted for early 2016. If finalised it would see BG shareholders recieve 383 pence in cash and 0.4454 Shell shares for each share of BG they hold.

Commenting on the deal, which could produce a company worth more than £200bn, Ben van Beurden, chief executive of Shell said: ‘At the start of 2014, Shell embarked on an improvement programme, including divestments and the restructuring of underperforming businesses, whilst at the same time delivering profitable new projects for shareholders. This programme is delivering, at the bottom line.’

He added: ‘BG will accelerate Shell’s financial growth strategy, particularly in deep water and liquefied natural gas: two of Shell’s growth priorities and areas where the company is already one of the industry leaders. Furthermore, the addition of BG’s competitive natural gas positions makes strategic sense, ahead of the long-term growth in demand we see for this cleaner-burning fuel.’

kathryn.mcann@legalease.co.uk

For more coverage of Shell’s and BG’s legal teams see the energy section of the GC Powerlist. 

Legal Business

International hires: A&O makes first lateral in South Africa as Freshfields bulks up in Hong Kong with Links partner

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Allen & Overy (A&O) has bolstered its project finance offering in its sub-Saharan practice with its first lateral partner hire in South Africa, turning to Linklater-ally firm Webber Wentzel. Freshfields Bruckhaus Deringer also turned to Linklaters in building its Hong Kong office with finance and energy partner Thomas Ng.

Project finance partner Jason van der Poel started yesterday (1 April) in A&O’s international projects, energy and infrastructure group in Johannesburg. Previously at Webber Wentzel, Poel has advised sponsors and lenders on projects with a particular focus on South Africa’s renewable energy programme.

His hire comes as the firm looks to complement its banking and finance platform in Johannesburg with an energy and infrastructure capability. A&O established its base in the region following its Johannesburg-office launch in October last year with a team of partners and lawyers from South African firm Bowman Gilfillan.

Meanwhile, rival firm Freshfields is investing in Hong Kong with the hire of Linklaters’ finance and energy partner Thomas Ng. Ng mostly advises Chinese companies and financial institutions on their finance, projects and energy transactions worldwide. Robert Ashworth, managing partner of Freshfields’ Asia practice, said the move demonstrated the firm’s intentions on bulking up finance and energy in Asia.

Previously, Ng was a partner in Linklaters’ Beijing office, and his hire follows the loss of Linklaters’ head of Asia-based US securities practice David Ludwick, also for Freshfields after a decade, last month.

jaishree.kalia@legalease.co.uk

Legal Business

Significant mandates: Freshfields acts for the Bank of England as SFO investigates money-market auctions

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Freshfields Bruckhaus Deringer is representing the Bank of England (BoE) as the Serious Fraud Office (SFO) launches an investigation regarding money-market auctions which the bank carried out during the financial crisis.

The SFO confirmed in a statement that the investigation relates to material concerning the bank’s ‘liquidity auctions during the financial crisis in 2007 and 2008’ and comes after the BoE referred material to it in November 2014 following an independent inquiry conducted by Lord Grabiner QC of One Essex Court. SFO director David Green QC then accepted the case for investigation in December 2014.

Freshfields’ disputes partner Ian Taylor will represent the BoE – one of the firm’s oldest clients since the Magic Circle firm first set up shop in London. Freshfields has acted for the bank in numerous key mandates in recent years including the London Interbank Offered Rate (Libor) fixing scandal in 2012.

The firm’s relationship was further strengthened when Freshfields veteran M&A partner Graham Nicholson left the firm back in January 2009 to become the bank’s chief legal adviser, although Nicholson is now set to retire from that role at the end of April 2015.

Freshfields declined to comment while the BoE said in a statement: ‘Given the SFO investigation is ongoing, it is not appropriate for the bank to provide any additional comment on the matter at this time.’

jaishree.kalia@legalease.co.uk

Legal Business

Three in London: Freshfields Bruckhaus Deringer makes up 17 in 2015 promotions round

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In its latest partner promotions, Freshfields Bruckhaus Deringer has made up its fewest number of partners in the City since 2009, with just three lawyers making the cut out of a 17-strong round.

The first round to be revealed by a Magic Circle firm for 2015, it does not reach the levels of 2011 and 2012, when Freshfields made up 20 partners, but does represent an increase on the 15 partners made up in 2014, and the 14 in the year before. In London, the number is the lowest since 2009 when the firm made up corporate partners Piers Prichard Jones and Jennifer Bethlehem.

Out of the 17 promotions, nine have been promoted across Europe with the three in London joined by one each in Vienna, Düsseldorf, Moscow, Madrid, Brussels and Frankfurt. The firm’s Hong Kong office benefited from the most promotions with four associates being made up, as well as two in Tokyo/Singapore, one in Dubai and, despite its recent push into growing its presence in the US, just one in New York.

In terms of practice breakdown, like last year, the largest beneficiary was the Magic Circle firm’s disputes practice where there were five promotions once again, followed by finance and corporate with four each; one covering disputes and employment, pensions and benefits; one dedicated to employment; and one each in antitrust, competition and trade; and real estate.

The new appointments take effect on 1 May 2015. Senior partner Will Lawes commented: ‘This year’s new partners are a fantastically talented and very international group with outstanding track records of working with our key clients. I am confident that their contribution will further enhance our client offering and help enormously to grow our global business.’

The full list of partners by practice area and location is as follows:

Antitrust, competition and trade

Sascha Schubert, Brussels

Corporate

Richard Bird, Hong Kong

Philip Li, Hong Kong

Victoria Sigeti, London

Alison Smith, London

Dispute resolution

Stephan Denk, Vienna

Nicholas Lingard, Singapore/Tokyo

Erin Miller Rankin, Dubai

Olivia Radin, New York

Wolrad Prinz zu Waldeck und Pyrmont, Düsseldorf

Dispute resolution/Employment, pensions and benefits

Akiko Yamakawa, Tokyo

Employment, pensions and benefits

Andrew Murphy, London

Finance

Daniel French, Hong Kong

Michael Josenhans, Frankfurt

Anna Nersesian, Moscow

Richard Perks, Hong Kong

Real estate

Fernando Soto, Madrid

jaishree.kalia@legalease.co.uk

Legal Business

Freshfields plans Manchester hub on radical scale as City leader repositions for changing law market

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Freshfields Bruckhaus Deringer’s decision to jump on the near-shoring wagon with its first low-cost services hub in Manchester is on a scale larger than its peers, with up to 800 support service jobs being transferred – a move which is unsettling some at its Fleet Street headquarters.

The Manchester hub will affect six non partner-facing departments in total, including billing, IT, marketing, design, as well as some paralegals, as the Anglo-German giant attempts to streamline its support functions to cut costs. Current head of Freshfields’ general industries group and former disputes head Paul Lomas is heading the venture, while Deloitte has been appointed auditor.

The long-term goal is to eventually create a consultancy option as well as a low-cost legal services outpost, in a bid to compete with the Big Four accountancy firms that have recently moved into the legal services market by establishing alternative business structures. Being regarded as the most traditional of its peer group, the move will also see Freshfields align with rivals that already run similar ventures, such as Allen & Overy’s low-cost legal services hub in Belfast and Clifford Chance’s outsourcing knowledge centre in India.

But the decision has sparked concerns internally as some partners believe the move could upset the firm’s culture in what will be the biggest equivalent support services restructuring among the Magic Circle. ‘While the move challenges the firm’s core values on one hand, the firm has to move forward to remain competitive,’ says one internal source.

Legal Business understands the move initially intended to target more than 1,000 roles, but was scaled back to 800 following an internal debate. The move will be staggered in phases with the first transfers to a Manchester location expected in the second half of this year. Although the venture is looking to relocate staff, it is also expected to result in a number of redundancies.

Support centres have been a popular choice for many firms and Manchester already hosts Berwin Leighton Paisner, while Latham & Watkins is due to open an office in the city within the next few months. Meanwhile, Hogan Lovells last year announced plans to open a new support office in Birmingham.

jaishree.kalia@legalease.co.uk

Legal Business

Freshfields’ northshoring planned on radical scale as City leader repositions for changing law market

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Internal worries as firm’s new low-cost hub could affect up to 800 roles

Freshfields Bruckhaus Deringer’s decision to jump on the near-shoring wagon with its first low-cost services hub in Manchester is on a scale larger than its peers, with up to 800 support service jobs being transferred – a move which is unsettling some at its Fleet Street headquarters.

Legal Business

A £4.3bn deal: Skadden and Freshfields take lead roles on Rexam takeover

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Skadden, Arps, Slate, Meagher & Flom and Freshfields Bruckhaus Deringer have advised two of the world’s largest beverage can makers on an acquisition worth £4.3bn as Rexam agreed an offer from Ball Corporation.

The acquisition continued the trend of US companies seeking investment opportunities in the UK, with leading British manufacturer Rexam, which boasts clients including Coca-Cola, Red Bull and Heineken, agreeing to be acquired by Colorado-based Ball Corporation for £4.3bn.

Ball, which generated £5.6bn in revenue in 2014, turned to a Skadden team on the deal including London partners Clive Wells in banking, Michael Hatchard for M&A, Scott Hopkins in corporate, and Tim Sanders in tax, alongside Chicago-based M&A partners Charles Mulaney and Shilpi Gupta, and banking partners Seth Jacobson and Lynn McGovern. The team was also supported by Hal Hicks in Washington for tax issues and Joseph Yaffe out of Palo Alto for executive compensation and benefit concerns.

Meanwhile, Slaughter and May picked up the mandate to provide EU competition advice to Ball with a team including partners John Boyce, Claire Jeffs and Jordan Ellison.

Freshfields acted for London-headquartered Rexham led by corporate partners David Sonter and Julian Long, and competition and antitrust partners John Davies and Martin McElwee, all based in the City. The company has 55 can making plants across 20 countries and in the year ending 31 December 2014 generated sales of £3.8bn.

Under the terms of the offer, Rexam ordinary shareholders will be receive 407 pence in cash for each share held and 0.04568 of a new Ball share.

Earlier this week, Shearman & Sterling; Slaughter and May; Paul, Weiss, Rifkind, Wharton & Garrison; and Sullivan & Cromwell all landed roles advising on Canadian insurance group Fairfax’s £1.2bn takeover of specialty insurer Brit as the group looked to boost its presence in the City.

jaishree.kalia@legalease.co.uk

Legal Business

Nearshoring: Freshfields plans Manchester low-cost hub

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Freshfields Bruckhaus Deringer has become the latest law firm to plan the launch of a low-cost services hub in Manchester as it seeks to move the majority of its support services team out of its London office.

The move to Manchester is expected to create a number of redundancies within the support services team, although some are expected to re-locate in phases starting next year, with back office staff being the first to relocate. Alongside business services, repetitive legal work could also be shifted to the new centre.

The firm is currently considering various sites based in Manchester’s city centre and is understood to have hired Knight Frank to find a 100,000 sq ft site in the city. The move will considerably lower the firm’s expenditure for its UK rental office space, with the price of square footage in Manchester’s rental market averaging 50% less than London.

The firm said in a statement: ‘Following a strategic review of our operational models and business processes, Freshfields is considering a range of enhancements to our global infrastructure. We are devising this programme of change so that we can build on our tradition of providing outstanding and highly efficient service to our clients.’

The devised launch comes as US firm Latham & Watkins announced in January that it will open a business services office in Manchester during the first half of 2015. Latham’s aims to have around 25 staff in place by the end of the year.

Other firms that previously launched similar services include Berwin Leighton Paisner’s business services office in Manchester that opened last year; mid-tier firm Nabarro’s office to handle real estate work which opened in May; Baker & McKenzie, which opened its first business services outpost in Europe with a Belfast office late last year; and rival Magic Circle firm Allen & Overy and Herbert Smith Freehills, which also launched low-cost legal services outposts in Belfast.

jaishree.kalia@legalease.co.uk