Legal Business

A £1bn offer: Linklaters, Ashurst and Gibson Dunn win roles on Domino Printing acquisition

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Corporate AshurstGibson, Dunn & CrutcherLinklaters
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Linklaters, Ashurst and Gibson, Dunn & Crutcher have all landed roles on Japanese electronics company Brother Industries’ acquisition of UK technology company Domino Printing Sciences for £1.03bn.

Under the terms of the offer, the FTSE 250 firm Domino will receive a total of 915 pence in cash for each Domino share held, giving it a total value of £1.03bn – a 26.9% premium to yesterday’s closing price. Citibank is providing a £1.07bn bridging facility to help the Japanese company finance the deal.

Brother Industries’ turned to long-standing advisor Linklaters with corporate partner David Holdsworth leading, while Domino – the developer of inkjet printing and laser printing products – turned to Ashurst’s corporate department, with partner Adrian Clark heading up a team which included competition partner Ross Mackenzie, tax partner Alex Cox and the firm’s head of employee benefits and incentives Paul Randall. Gibson Dunn corporate partner Jonathan Earle provided counsel to Citibank on the cash confirmation aspect of the deal.

The deal continued Linklaters run of success with large acquisitions by Japanese corporates, having also previously acted on the two other public bids made since 2010 which have been over the billion-pound mark in London.

Linklaters’ Holdsworth also led a team advising on Japanese ad giant Dentsu’s acquisition of marketing group Aegis for £3.2bn in 2012 while corporate partner Shane Griffin led on Japanese communications firm NTT’s takeover of Cisco powerhouse Dimension Data for £2.1bn in 2010.

jaishree.kalia@legalease.co.uk

Legal Business

In court: Gibson Dunn partner could face disbarment after submitting incorrect documents in Djibouti case

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Litigation Gibson, Dunn & Crutcher
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Gibson Dunn & Crutcher referred itself to the Solicitors Regulation Authority last week [6 March] after it was alleged that disputes partner Peter Gray submitted incorrectly dated documents to the UK courts in a case between the Djibouti government and one of its wealthiest citizens Abdourahman Boreh.

The Gibson Dunn partner admitted before Mr Justice Flaux that incorrect information was presented to the UK court that appeared to implicate businessman Boreh in a 2009 grenade attack. As a result, the Gibson Dunn partner could face potential disbarment and possible criminal charges if the UK courts find that he deliberately failed to inform the courts of the error. The court heard from Gibson Dunn that there had been an error made in good faith in not including correctly dated documents in its submissions.

Dubai-based Gray was instructed by the Djibouti government back in 2009 in its case against businessman Boreh, over alleged tax avoidance and his apparent role in a terrorist attack in the African nation. But recent evidence showed that transcripts and phone calls, which previously alleged that Boreh was involved in a grenade attack on a supermarket in Djibouti City, were incorrectly dated and therefore could not implicate Boreh in the incident. 

A judgment in the case concerning a freezing order on some of Boreh’s assets is set to be handed down at the end of the month but is also expected to address Gray’s activities.

The firm officially apologised to the High Court for misleading it, with Gibson Dunn partner Lord Falconer – who, alongside partner Philip Rocher, replaced Gray as lead counsel on the case – also apologising to Boreh and the court on behalf of the firm’s client, the Republic of Djibouti, for the error.

A spokesperson for Gibson Dunn said: ‘Gibson Dunn is a firm that holds itself to the highest standards of integrity and professional and ethical standards in the discharge of duties to our clients and the court. We are carefully evaluating the evidence presented at the hearing in relation to the conduct of our Dubai partner, Peter Gray, and our barrister presented the firm’s position on these matters before the High Court last Thursday. We are not able to comment further pending the court’s decision.’

Fountain Court Chambers’ Mark Simpson QC, Nico Leslie and James Hart, represented Gray, and Gibson Dunn instructed Fountain Court Chambers’ Timothy Dutton QC.

Representing the claimant – the Republic of Djibouti – was Gibson Dunn’s Lord Falconer, who instructed Fountain Court Chambers’ Deepak Nambisan and Daniel Edmonds, and Serle Court’s Jennifer Haywood.

Byrne and Partners’ Yvonne Jeffries instructed 7KBW’s Dominic Kendrick QC and Keir Howie, and Essex Court Chambers’ James Willan, in representing the defendant Boreh.

jaishree.kalia@legalease.co.uk

Legal Business

US results: Shearman sees solid City growth but US stalls after rebound year; Gibson surpasses $3m PEP

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US firms Gibson, Dunn & CrutcherShearman & Sterling
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Following a rollercoaster ride over the past few years, Shearman & Sterling has unveiled financial results showing moderate but steady growth in 2014 as profit per equity partner (PEP) rose 5.8% on 3% turnover growth. Meanwhile, Gibson, Dunn & Crutcher had its 19th year of consecutive revenue increases with a 6% lift to $1.47bn.

Shearman’s PEP came in at $1.9m, up from $1.8m in 2013 and consolidating that year’s substantial 19% growth. Similarly, the firm’s gross revenues currently stand at $845m, after growing 9% to $820m in 2013, while revenue per lawyer stood at $1.03m, up 1.5% from $1.01m the previous year. The firm’s overall lawyer headcount grew from 809 to 821, of which 172 sit in London.

The firm’s London office put in a particularly strong performance bringing in $145m, a 7% increase on the year before and the office’s fifth straight year of revenue growth. ‘We enjoyed another strong year, with continued strong growth over what was an exceptional year in 2013,’ says David Beveridge, global managing partner at Shearman & Sterling. ‘[We have] expanded client relationships and a healthy roster of new clients worldwide, many working with us across multiple practice areas. We continue also to focus on our business mix, with targeted growth in our disputes, M&A and private equity, finance and regulatory practices, consistent with where we see the best opportunities in the marketplace.’

Beveridge added that the evolving regulatory guidance and increased enforcement are likely to drive significant activity this year. ‘The US is a much improved but highly competitive legal market. We expect to see continued opportunities to serve clients on both domestic and complex, cross-border transactions and matters,’ he added.

Another firm to continue the trend of steady but modest financial growth was Gibson Dunn with revenues rising 6% to $1.47bn from $1.39bn – its 19th consecutive record year for revenue – while partner profits also broke the three-million-dollar barrier rising 3% to $3.05m from $2.9m the previous year. The firm’s litigation practice saw an active 2014, especially in white-collar, compliance and investigations which combined with the firm’s litigation and appellate offering contributed accounts for 60% of the overall revenue.

jaishree.kalia@legalease.co.uk

Legal Business

Revolving doors: Clydes, Quinn Emanuel and Gibson Dunn make key hires

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Strategic recruitment Clyde & CoGibson, Dunn & CrutcherQuinn Emanuel Urquhart & Sullivan
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Last week saw Clyde & Co expand its transportation finance practice in the City, while Quinn Emanuel Urquhart & Sullivan expands its litigation offering in Houston, and peer group firm Gibson, Dunn & Crutcher expanded its M&A offering in Singapore.

Clydes has expanded its City transportation finance group with Ince & Co partner Dean Norton joining. The hire comes as the firm pushes to grow its global marine practice. Norton joins with over 20 years’ experience in the shipping and energy sectors, advising owners, charterers and shipyards in relation to corporate structuring, joint ventures, shipbuilding and chartering arrangements.

He joined Ince & Co in 2007, where he headed the global offshore finance team. During his time there, he advised on the $600m LNG new-building project financing, and the $1.1bn drilling rig-financing deal. Before Ince & Co, Norton was an associate at Clifford Chance for six years.

London-based Marine partner Andrew Preston said: ‘Dean’s arrival adds new capability to the transport finance group, and reaffirms our commitment to fully servicing the global shipping industry. His standout banking and finance experience brings diversity and depth to what we can offer clients in an increasingly complex market and industry.’

Over on the other side of the pond, Quinn Emanuel Urquhart & Sullivan added litigator Charles Eskridge as a partner in its Houston office. Eskridge has experience of advising in commercial matters within antitrust, IP, including patents and trade secrets matters, aviation disasters, securities fraud, the First Amendment, ERISA, and asbestos bankruptcy litigation. He is also an experienced appellate advocate having briefed and argued numerous appeals in both federal and state courts.

Before joining Quinn Emanuel, Eskridge was a partner at Susman Godfrey, where he worked for the last decade. ‘Frankly, I never thought I would ever leave Susman Godfrey,’ said Eskridge. ‘I learned so much there and leave behind many good friends. However, Quinn Emanuel offered something unique – the opportunity to build something from the ground up with all the resources of the world’s largest litigation firm at my disposal. And to join partners of the calibre of David Gerger and Karl Stern in doing so is a real privilege.’

Quinn Emanuel managing partner John Quinn added: ‘It is rare you have the opportunity to add a partner of Charles’ calibre. He is a unique talent who will help us service our growing list of Houston based clients.’

And following Gibson, Dunn & Crutcher’s recent City raid, the US firm has added local corporate partner Robson Lee to strengthen its M&A and capital markets offering in the region. Lee specialises in corporate finance and capital markets transactions. He advises public listed companies on securities transactions, cross-border mergers and acquisitions and foreign joint ventures. He also used to practice advising local and foreign companies in funds raising and stock market floatation.

Lee joins from Shook Lin & Bok in Singapore, and is also an advocate and solicitor of the Supreme Court of Singapore and a solicitor in England and Wales.

jaishree.kalia@legalease.co.uk

Legal Business

Investing in the City: Gibson Dunn scores with Kirkland’s Gillespie

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Strategic recruitment Gibson, Dunn & CrutcherKirkland & Ellis
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The last year has seen Gibson, Dunn & Crutcher make a substantial push hiring heavyweight players in London with debt finance veteran Stephen Gillespie becoming the latest addition to the team, quitting Kirkland & Ellis after eight and a half years to join the firm.

Legal Business reported of Gibson Dunn’s attempt to pick up Gillespie in November, around the same time when talks were ongoing but fell threw at the advanced stages between the firm and Clifford Chance’s global co-head of private equity Jonny Myers.

At Kirkland, Gillespie was a senior partner in the European debt finance practice, with noteworthy deals under his belt including advising Smurfit Kappa Group in relation to its €1.5bn refinancing, and representing Vista Equity Partners in relation to the £1.2bn take-private of Misys – the largest take-private transaction completed in London in 2012 and the first hostile takeover since the changes to the City Code on Takeovers and Mergers in September 2011.

Prior to Kirkland, Gillespie was at Magic Circle firm Allen & Overy (A&O) for 15 years, where he was a partner from May 1995 to May 2006 and an associate before that. Before A&O, he was an associate at Freshfields Bruckhaus Deringer.

In his new role, Gillespie will continue his European leveraged and acquisition finance practice, and goes hand-in-hand with the firm’s other recent hires including Charlie Geffen, Nigel Stacey, Jonathan Earle and Mark Sperotto, all from Ashurst.

‘We have worked on the opposite side of the table to Stephen on private equity finance transactions and have first-hand experience of his superb technical skills,’ said Tom Budd, co-partner in charge of the firm’s London office. ‘Stephen’s hiring will position us well to attract top-tier leveraged finance mandates from both sponsors and lenders. His strengths in English law leveraged finance, when combined with our established expertise and experience in New York law financing products, will create a formidable bench for our clients.’

Ken Doran, chairman and managing partner of Gibson Dunn, added: ‘Building a top quality English law transactional practice is a strategic priority for the firm, and Stephen’s addition is an essential component to attaining that goal. Stephen is a recognised leader in European leveraged and acquisition finance.’

jaishree.kalia@legalease.co.uk

For more analysis on Gibson Dunn’s London strategy see: Charlie and the deal factory: can Geffen help Gibson Dunn reach new heights in the City?

Legal Business

Focus: Charlie and the deal factory: can Geffen help Gibson Dunn reach new heights in the City?

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Leadership Gibson, Dunn & Crutcher
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Jaishree Kalia reports on the Los Angeles firm’s recent London hiring spree

Although relatively late to the game, Gibson, Dunn & Crutcher is the latest US firm with aggressive expansion plans in London, with its recently announced hire of former Ashurst senior partner Charlie Geffen attracting much attention last month.

Legal Business

Updated: ‘I like building businesses’ – Ashurst blow as ex-head Geffen quits with corporate partner for Gibson Dunn

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Strategic recruitment AshurstGibson, Dunn & Crutcher
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It had been long rumoured but the loss that Ashurst clearly wanted to avoid has materialised as it was today (1 October) confirmed that the firm’s former head Charlie Geffen has quit alongside corporate partner Mark Sperotto for a US rival.

The pair join Gibson, Dunn & Crutcher, the top 20 Global law firm, becoming the fourth Ashurst partners to join the Los Angeles-bred giant’s expanding City arm.

Geffen, the high profile former head of Ashurst and a driving force behind its buyout practice, will head Gibson Dunn’s firmwide private equity practice and chair its City corporate practice. He will focus on global corporate and sponsor relationships, including all types of M&A and private equity transactions. Sperotto will continue to focus on cross-border M&A, private equity and equity capital markets transactions.

Geffen was famously defeated in a leadership election last year by litigator Ben Tidswell in the wake of the vote for Ashurst to push ahead with full financial integration with its Australian partner Blake Dawson. After losing the partnership vote in November 2013, Geffen assumed his role as a corporate partner up until March 2014 when he took leave. Geffen told Legal Business that since then he has sought opportunities inside and outside of the law, but in the end decided to join Gibson Dunn because of its US platform and its strong links within the regulatory, antitrust and transactional practice areas. He is also understood to have looked at in-house positions and consultative roles.

While Geffen said he has not handled direct private equity work for the past five years because of his management responsibilities, he says one of his aims is to grow Gibson Dunn’s corporate relationships.

Geffen said: ‘I have known Ken Doran [Gibson Dunn managing partner] for a number of years and love the culture of the firm. Gibson Dunn has a strong antitrust and regulatory capability and it is extremely hard to compete with US firms in this aspect. It is one of the most profitable global firms in the world. The firm is focused on building its capabilities in London.’

Both Geffen and Sperotto handed in their resignations this morning. With regard to his former firm, Geffen added: ‘Ashurst is a strong English brand and I am hugely proud of what the firm achieved during my time there. The business has been through a big transformation and it’s entirely natural for it to be in a new phase. I led the firm for five years and this is a natural career progression. I like building businesses.’

Gibson Dunn co-partner in charge Tom Budd told Legal Business: ‘Our hiring process will continue in the City. We have a strong litigation, corporate and M&A practice and may make further hires in private equity and finance.’

No start date has been confirmed for both Geffen and Sperotto as yet.

The moves follow the exit of former Ashurst corporate partner Nigel Stacey, for Gibson Dunn in June, after corporate partner Jonathan Earle left in April.

The departures come at a sensitive moment for the 420-partner firm, which has faced mixed views internally over its Australian tie-up and the defeat of Geffen, who enjoyed strong support in Ashurst’s City corporate practice. Notably, the firm also last year saw the departure of highly rated co-head of corporate Stephen Lloyd for Allen & Overy, in what was seen as a blow to its corporate practice.

There have been concerns that Geffen was effectively voted out by the Australia side of the firm, amid expectations that Geffen would have pushed to rationalise its partnership after the union. However, Ashurst had initially hoped to convince Geffen to stay on in a senior role.

A spokesperson at Ashurst said: ‘Charlie has made a tremendous contribution to the firm over 30 years including five years as senior partner of Ashurst. He leaves a considerable legacy and we wish him well.’

Despite its $1.39bn revenues, Gibson Dunn has so far largely focused its City arm on disputes, with Legal Business’s Global London research showing its UK arm shrinking from 57 lawyers to 48 between 2008 and 2013. However, the firm has been clear about renewed ambitions to build out a fully-fledged English law practice covering mainstream corporate work. It currently has a total of 22 partners in its City practice, 60% of which sit in transactions, with the remainder in litigation.

For more analysis on Ashurst’s post-merger fallout from Legal Business click here.

Jaishree.kalia@legalease.co.uk

Legal Business

Ashurst corporate partner Nigel Stacey quits for Gibson Dunn’s City office

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Strategic recruitment AshurstGibson, Dunn & Crutcher
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Ashurst’s corporate partner Nigel Stacey has quit the firm to join the London office of Los Angeles-founded firm Gibson, Dunn & Crutcher.

Stacey, who focuses on mergers and acquisitions, corporate finance and general corporate matters, follows in the footsteps of fellow corporate partner Jonathan Earle, who left Ashurst in April after being with the firm for 16 years.

Stacey regularly advises UK and international corporations and investment banks on corporate transactions, including cross-border and domestic M&A, public company takeovers, joint ventures and equity capital markets matters. Stacey joined Ashurst in 1999, having previously worked at Slaughter and May from 1994.

Gibson Dunn chairman Kenneth Doran said: ‘Building our London office is a key part of the firm’s strategy. Nigel is a talented and versatile lawyer with experience in a broad range of corporate transactions. His addition will further enhance the scale and depth of our transactional practice in this important market.’

Stacey added: ‘Gibson Dunn’s strong corporate and litigation platforms and strategically located offices drew me to the firm. I look forward to working closely with my colleagues in London and across the firm’s offices.’

Stacey and Earle’s departure from Ashurst’s corporate practice follow in the footsteps of former global head of corporate, commercial and competition Stephen Lloyd and private equity specialist Karan Dinamani, who both resigned to join Magic Circle firm Allen & Overy.

jaishree.kalia@legalease.co.uk

Legal Business

Ashurst loses further City corporate partner as Jonathan Earle joins Gibson Dunn

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Strategic recruitment AshurstGibson, Dunn & Crutcher
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Jonathan Earle has become the latest Ashurst corporate partner to quit the top 20 firm, leaving after 16 years to join US firm Gibson Dunn & Crutcher’s City corporate practice.

Earle joined Ashurst in 1998 and became a corporate partner in 2008. He has experience of advising corporates, banks and financial institutions and specialises in cross-border mergers and acquisitions, with a particular focus on public M&A. Recent big mandates for Ashurst include representing Interserve on its acquisition of Rentokil’s facilities management business for £250m, and advising William Hill on its public bid for Sportingbet.

Earle will continue his corporate practice, focusing on cross-border mergers and acquisitions in his new role. His start date at the US firm is yet to be confirmed but Earle told Legal Business that after 16 years at Ashurst it was time for a new challenge.

‘I’m delighted to be joining Gibson Dunn and am looking forward to working with my new colleagues,’ said Earle. ‘The firm has a pre-eminent corporate practice, and its international platform will help me to grow my cross-border M&A practice in the future.’

Gibson’s co-chair of the global finance practice Tom Budd said: ‘Jonathan is a terrific addition to the firm. His cross-border M&A focus will complement our London and US corporate practices, and his energy, enthusiasm and entrepreneurial spirit will be an easy cultural fit with the firm.’

A spokesperson at Ashurst added: ‘Jon has made a significant contribution to the corporate practice in the last 16 years. He is a talented and dedicated partner and great fun to work with. We will be sorry to see him go but we wish him the very best for the future.’

Earle is the latest in a series of departures from the Ashurst’s corporate practice, following on from the resignation of high profile private equity specialist Karan Dinamani who left the firm in March this year, to join Allen & Overy in the footsteps of former global head of corporate, commercial and competition Stephen Lloyd, who resigned within weeks of the firm fully integrating with Australian partner Blake Dawson and post-merger management elections. Lloyd joined A&O as co-head of its private equity practice in November.

jaishree.kalia@legalease.co.uk

Legal Business

Taking Manhattan – Gibson Dunn posts strong 2013 financials after another impressive year

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Financial results 2013 Gibson, Dunn & Crutcher
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Identified as one of a handful of firms based outside New York that have mounted a serious challenge to the Wall Street old guard, California’s Gibson, Dunn & Crutcher has followed posting double-digit revenue growth for 2012, with a slightly more modest but nonetheless impressive 7.4% increase in revenues for 2013.

Revenues for 2013 were $1.39bn, up from $1.29bn. This is particularly strong turnover growth, on the back of the 10.7% increase in 2012 on the $1.17bn revenues the firm posted in 2011. Successive increases in revenue has given the firm an impressive overall growth of 42% over a six-year period between 2007 and 2012.

Revenue per lawyer moved slightly up from $1.159m to $1.202m or an increase of 1%. The firm’s profit per equity partner (PEP) also rose 4.9% to $2.948m, but again this growth was slower than 2012, when PEP grew 13.7% from $2.472m to $2.812m.

The firm profited from a large chunk of litigation work last year from key client Chevron when it represented the energy giant to prevent enforcement of an $18bn Ecuadorian judgment, led by Randy Mastro, a partner in the New York office and co-chair of the firm’s litigation group.

Gibson Dunn chairman and managing partner Ken Doran said: ‘Gibson Dunn had another strong year. We appreciate our clients for entrusting us with their most significant matters – which included litigation, investigations, counselling and transactional matters. We are well-positioned around the world to continue to provide quality and cost effective counsel to our clients on their greatest legal challenges.’

The firm also made significant investment into its City base last year, hiring Penny Madden from Skadden, Arps, Slate, Meagher & Flom as an arbitration and disputes partner in the London office, as well as former senior director at the Office of Fair Trading Ali Nikpay, who joined the firm’s City antitrust and competition law practice as a partner in April.

jaishree.kalia@legalease.co.uk

See Taking Manhattan for more on the progressive US firms challenging the status of the Wall Street elite