Legal Business

‘One man one vote’: HSF set to vote for new senior partner as Jonathan Scott decides to step down early

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Jonathan Scott, who began a five-year term as senior partner at Herbert Smith Freehills in May 2010, will step down early, sparking a four-man race for one of the most powerful roles at the firm.

The Herbert Smith Freehills’ 453 strong partnership is set to vote on whether London-based corporate heavyweight James Palmer, London head of litigation Tim Parkes, Sydney-based deputy senior partner Mark Crean or Moscow-based managing partner of EMEA Allen Hanen replaces Scott. The cutoff date to run for senior partner has long since passed and the vote will be concluded by the end of this week.

Hanen ran against Scott (pictured), who was one of the main drivers for Herbert Smith’s merger with Freehills in October 2012, for senior partner in 2009 and has garnered a reputation within the firm for bringing forward innovative ideas.

Scott announced his plan to retire from the firm, after 35 years of service, to the HSF partnership at the end of summer. He will step down on 31 January 2015, three months earlier than scheduled, with his replacement set to head up the influential Partnership Council.

Palmer, who headed the corporate practice between 2010 and 2012, recently lost a partnership vote to Crean for a spot on the Partnership Council. He and Parkes are two of the longest-serving partners of legacy Herbert Smith, having made partner in 1994 and 1987 respectively. Parkes had a successful spell as head of Herbert Smith’s Asia wing and sits on the Partnership Council alongside Crean. Hanen is on the firm’s Executive Committee, with Palmer the only partner in the race for senior partner not to currently hold a management position.   

One partner at the firm commented: ‘It’s dead straight forward. One man one vote. It’s so straight forward that we wouldn’t be able to get it wrong.’

HSF said in a statement: ‘We can confirm that Jonathan Scott will be retiring as senior partner early next year. A procedure to appoint his successor is already in place and we hope to announce the outcome of that process shortly.’

For more Legal Business analysis of Herbert Smith Freehills’ internal dynamics see: Consumed – Can burning ambition from Down Under recast Herbert Smith for the global stage?

tom.moore@legalease.co.uk

Legal Business

Ashurst Australia head steps down while HSF picks up Ashurst corporate duo in Asia

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Ashurst’s John Carrington, who helped handle the integration of Blake Dawson, has retired as Australian managing partner with no successor, as Herbert Smith Freehills bulks up in Asia with two corporate hires from the firm.

After almost 30 years with the legacy Australian firm Blake Dawson, and then Ashurst, including the past six as managing partner in Australia, Carrington is retiring from the firm as well as his position. He has been a partner since 1990 and was appointed managing partner in October 2008, helping to oversee the integration of Blake Dawson with Ashurst alongside now Ashurst vice chairman Mary Padbury and the legacy firm’s board.

The firm confirmed there is no successor to the role with his responsibilities being shared across the firm’s Australia-based office heads, as well as Australian-focused executive committee members Phil Breden, Geoff Gishubl, Paul Jenkins and Lisa Ritson, and board members Mary Padbury, Peter Armitage, Roger Davies and Jennie Mansfield.

‘John was instrumental in initially exploring merger opportunities and ultimately steering the Australian firm through the process which, in November last year, saw it complete full financial integration with Ashurst,’ said Ashurst managing partner James Collis. ‘I came to the decision that the responsibilities of the position could effectively be shared amongst senior Australia-based partners.’

Padbury added: ‘The vision he outlaid at the start of his term – for the firm to become part of a leading international firm, to focus on our strengths in the energy and resources and financial services sectors, to build capability in the Asia-Pacific region and to strengthen our financial performance – have all been realised.’

Meanwhile, Herbert Smith Freehills has added Ashurst corporate partners Ian Williams and Damien Roberts to its corporate M&A practice, joining the firm’s Brisbane and Tokyo office respectively. Williams, who was also on Ashurst’s board, specialises in M&A and joint ventures in the energy, resources, infrastructure and industrial sectors while Roberts’ M&A experience also focuses on energy and infrastructure.

Herbert Smith Freehills global head of corporate, Mike Ferraro said: ‘In particular, Ian’s strong relationships with Japanese and Korean organisations and Damien’s long-standing relationships with key Japanese corporates and semi-government bodies will boost Herbert Smith Freehills’ strength in Japan and Korea.’

jaishree.kalia@legalease.co.uk

Legal Business

Herbert Smith Freehills’ heavyweight misses out on management post after elections

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Herbert Smith Freehills‘ (HSF) partnership vote for its global partnership council has revealed the firm’s post-merger dynamics, with prominent corporate partner James Palmer missing out on a seat, which instead was secured by Sydney-based M&A partner Mark Crean.

Three spots were available on the council, which is led by London-based senior partner Jonathan Scott. One place was designated for an EMEA (excluding UK) partner, which Madrid-based Nicolás Martín – head of private equity in Spain and co-head of corporate – took, while another was reserved for Asia, with Hong Kong litigator Gareth Thomas elected. That saw Palmer entering into the contest for the final position with a pool of candidates from the UK and Australia.

The set-up meant that two legacy Freehills partners in Australia were pitted against six legacy Herbert Smith partners from London, the firm’s two largest regions.

Palmer, widely viewed as HSF’s top M&A lawyer, was the most prominent Herbert Smith candidate with 28 years at the firm and having led its global equity capital markets practice between 2005 and 2010, before a two-year stint as global head of corporate. He came up against London-based finance partner Gary Hommel and competition partner Stephen Wisking, both of whom also lost out.

Deputy senior partner Crean obtained the majority in a preferential voting system to secure reappointment to the council. He took up his position alongside Martín and Thomas in August.

Sydney-based M&A lawyer Al Donald was the only other Australia-based partner in the running but failed to be reappointed to the council, which was reduced from 12 to ten members this summer following a post-merger transitional period.

One senior HSF partner told Legal Business: ‘With so many people from the UK in the running, the north vote was split. The south vote was only split between two Australian partners, giving them an advantage. James had a rough time as head of corporate and that may have been an issue.’

tom.moore@legalease.co.uk

Legal Business

Herbert Smith Freehills’ heavyweight misses out on management post after elections

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Herbert Smith Freehills’ (HSF) partnership vote for its global partnership council has revealed the firm’s post-merger dynamics, with prominent corporate partner James Palmer missing out on a seat, which instead was secured by Sydney-based M&A partner Mark Crean.

Three spots were available on the council, which is led by London-based senior partner Jonathan Scott. One place was designated for an EMEA (excluding UK) partner, which Madrid-based Nicolás Martín – head of private equity in Spain and co-head of corporate – took, while another was reserved for Asia, with Hong Kong litigator Gareth Thomas elected. That saw Palmer entering into the contest for the final position with a pool of candidates from the UK and Australia.

Legal Business

Revolving doors: HSF appoints Singapore head, while Kirkland and Hogan swap partners in Hong Kong

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Strategic recruitment Herbert Smith FreehillsHogan LovellsKirkland & Ellis
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Herbert Smith Freehills (HSF) announced its management successor in Singapore, while Kirkland and Ellis, and Hogan Lovells made partner exchanges in Hong Kong. 

In Asia, HSF announced that from October Singapore-based partner Alastair Henderson would take on the role of South East Asia managing partner after incumbent Michael Walter announced his decision to retire at the end of July 2015. Until then, Walter will continue with client work and contribute to South East Asian projects including practice management.

Walter joined legacy Herbert Smith in 2005 and was its global corporate head for five years. He relocated to Singapore in 2012 when he was appointed as the firm’s south east Asia managing partner, where he strengthened the firm’s presence, particularly in corporate and M&A, in the region.

Asia managing partner Mark Johnson said: ‘Alastair is a true expert in the region having spent more than two decades in Asia. He also leads the firm’s highly successful international arbitration practice in the region and will work closely with myself and other Asia Pacific regional and practice leaders to keep Herbert Smith Freehills as the leading practice in the region.’

Also in Asia, top ten global firm Kirkland & Ellis added Hogan Lovells’ restructuring partner Damien Coles to its global restructuring practice in Hong Kong. Coles joined fellow head of Hogan Lovells business restructuring and insolvency practice, Neil McDonald, who joined Kirkland within the same week.

Coles experience includes advising on cross-border transactions involving Indonesia, India, Malaysia, the Philippines and Thailand. He has previously advised creditor groups in relation to the restructurings of Arpeni Pratama Ocean Line, Blue Ocean Resources, Berlian Laju Tanker and Bumi Resources. His clients include credit and private equity funds, banks, insolvency practitioners and turnaround professionals.

‘Damien has established a reputation as one of the region’s rising stars in restructuring,’ said Jeffrey Hammes, chairman of Kirkland’s global management executive committee. ‘We are delighted to add Neil’s and Damien’s outstanding experience, capabilities and energy to our premier restructuring platform and top-tier Hong Kong team.’

Within the same week however, Hogan Lovells added Kirkland’s corporate partner Steven Tran to its Hong Kong corporate practice. Tran specialises in private equity and M&A in both local transactions as well as complex multi-jurisdictional cross-border deals across the Asia-Pacific region. His client base consists of private equity houses, funds and corporates.

Tran said: ‘Hogan Lovells provides an exceptional, high-quality global platform ideal for executing sophisticated cross-border transactions. This combined with the firm’s commitment to the Asia region makes it an exciting time to join the team and help to expand the private equity and M&A practice in the region.’

In London meanwhile, Addleshaw Goddard strengthened its financial litigation team with Richard Clayton who has joined as a partner from TLT. Clayton has been at TLT for the last four years, where he specialised in finance litigation and contentious regulatory work. He was also seconded to Barclay’s Bank’s Group litigation team earlier this year, and completed a seven month secondment with the litigation team at Barclays Investment Banking Division in 2010 and 2011.

He has experience of advising banks, funds, investment managers and financial institutions on investment products and structures, including derivatives and structured finance, securitisations, bonds, mandate and prospectus issues, and regulatory investigations and enforcement action.

Addleshaw Goddard litigation divisional managing partner, Michael Barnett, said: ‘This is a key appointment for us as we seek to consolidate and continue to strengthen our offering in the finance litigation and contentious regulatory work arena in the City. He has great connections with our bank panel relationships but he will also seek to create new opportunities for us, adding new work streams as well as referral relationships.’

jaishree.kalia@legalease.co.uk

Legal Business

Clifford Chance takes HSF partner in bid to boost its capital markets practice in Paris

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Magic Circle firm Clifford Chance has hired longstanding Herbert Smith Freehills’ partner Alex Bafi, one of London’s high-profile US securities lawyers, as it expands its capital markets practice.

Bafi will relocate to Paris as part of the move, joining the firm’s finance and capital markets practice in January 2015. Bafi, who has been at HSF since 2001 after joining from white shoe firm Davis Polk & Wardwell, recently advised Bank of America Merrill Lynch on a high yield debt offering by Kuwait Energy, Credit Suisse on a £350m rights offering by Premier Foods and the £920m London IPO of Zoopla.

Bafi, who is fluent in French, Italian and Arabic, told Legal Business: ‘The move will allow me to use my languages and run further interesting mandates, and will reinforce Clifford Chance’s offering in France, Italy, Turkey, North Africa and the Middle East. Clifford has a great platform with offices in all the major centres in Europe, the Middle East and North Africa.’

Bafi, who is the global relationship partner for Credit Suisse, for whom his new firm is on the legal panel for, was elected to HSF’s partnership council in May 2011 for a three-year term.

Yves Wehrli, managing partner of Clifford Chance’s Paris office, commented: ‘Alex will further strengthen our equity and debt capital markets teams, as well as our acquisition finance team for high yield offerings, and our projects team, which is increasingly turning to the US bond markets for financing.’

Adrian Cartwright, global head of Clifford Chance’s capital markets practice, added: ‘The appointment of Alex in a major financial centre such as Paris was an obvious choice given the increasing importance of the US market for capital markets transactions. His expertise in high yield offerings will also be particularly useful on the French market.’

The move follows CC’s hire, earlier this week, of ex-Freshfields corporate partner Fabrice Cohen into its Paris office from Willkie Farr & Gallagher, alongside two other lawyers.

tom.moore@legalease.co.uk

Legal Business

Slaughters and HSF lead as BHP Billiton undergoes major demerger

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Slaughter and May corporate partners Richard de Carle and Susannah Macknay are spearheading a demerger at mining giant BHP Billiton, which is spinning off its less profitable aluminium, silver, South African coal, manganese and nickel businesses into a new company estimated to be worth around $14bn.

The new independent company will be created by way of a demerger through an in-specie distribution and listed on the Australian Securities Exchange and Johannesburg Stock Exchange. Slaughter and May is working alongside Herbert Smith Freehills, who are advising on Australian law matters, and 600-lawyer ENSafrica on South African law matters. The new company will be based in Perth.

Slaughters’ team includes tax partner Jeanette Zaman, financing partner Philip Snell and competition partner Michael Rowe. Associates Louise Campbell, Elizabeth Szanto and Emma Game are assisting. HSF’s Australian legal team was made up of corporate partners Al Donald, Quentin Digby, Adam Strauss and Baden Furphy.

BHP Billiton, which is listed on the London Stock Exchange, is a longtime client of the Magic Circle firm. Corporate partner Nigel Boardman, who has been a partner at Slaughter and May since 1982, is the relationship manager and was lead partner on the company’s 18-month pursuit of Rio Tinto for $68 billion in 2008.

The company hopes to create better returns for BHP Billiton shareholders by streamlining the company and focusing on a simpler portfolio comprising iron ore, copper, coal and petroleum. BHP chief executive, Andrew Mackenzie, said in a statement: ‘The assets that would form the new company are not of the same size as those in our major basins but many are among the largest and highest quality in their sectors. We believe they will be more valuable in a purpose-built, independent company than they would be in BHP Billiton.’

Tom.moore@legalease.co.uk

Legal Business

Trainee Retention: Clifford Chance and Herbert Smith Freehills reveal retention rates

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Following a spate of healthy trainee retention rates in recent weeks, magic circle firm Clifford Chance (CC) and international firm Herbert Smith Freehills (HSF) are the latest to unveil results, recording 75% and 87% respectively.

CC made 42 offers and will keep on 40 out of a total of 53 for its autumn 2014 intake, constituting a decrease of 5% on the firm’s 80% this time last year.

HSF, meanwhile, will retain 41 qualifiers out of a cohort of 47 trainees for the autumn intake, giving it a retention rate of 87%. The result follows strong results posted by the top-ten firm in January, when it announced it would keep 38 out of 42 trainees, giving it a spring retention rate of 90%.

In recent weeks, other firms to show figures includes fellow magic circle firms including Linklaters which kept on 93% of qualifying trainees, Freshfields which retained 82%, and Slaughter and May with 97%. City firm RPC also announced in late July it will keep all 15 trainee solicitors who applied to qualify this year. CMS Cameron McKenna posted more modest results with a retention rate of 67.2%, constituting a marked shift downwards on last year’s results which saw the firm retain 82%. The firm attributed the lower results to the firm’s recent combination with beleaguered Scots firm Dundas & Wilson that went live in May.

Sarah.downey@legalease.co.uk

Legal Business

HSF snatches Freshfields former energy co-head

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Herbert Smith Freehills has landed a blow on Magic Circle firm Freshfields with the hire of the firm’s former co-head of energy and natural resources Dirk Hamann as the Anglo-Australian firm looks to build out its German offices.

Hamann leaves Freshfields after two decades at the firm, where he became a partner in 1997. He joins HSF in Berlin, one of two German offices the firm opened at the start of 2013. Hamann, a senior corporate lawyer with a focus on regulated industries, is HSF’s seventh partner hire in Germany since that launch, joining corporate and M&A lawyers Ralf Thaeter and Nico Abel, real estate specialist Hans Thomas Kessler, disputes expert Mathias Wittinghofer, finance partner Kai Liebrich and competition lawyer Michael Dietrich.

Hamann, who exits Freshfields’ Hamburg office, has built a strong renewable energy practice and introduced a low carbon sub-group at Freshfields when he was global co-head of energy and natural resources between 2009 and 2013. 

HSF has experienced a strong start in Germany, and has earmarked the jurisdiction as a core area for investment. The firm is looking to leverage increased trade between Europe’s strongest economy and its Asian offices that were strengthened following its merger with Australian firm Freehills last year.

Ralf Thaeter, who is leading the firm’s development in Germany, said: ‘Dirk is a highly regarded partner whose arrival will help us to achieve one of our key objectives of building a quality German corporate practice that is fully integrated into the firm’s global network. His experience and client base is also closely aligned with our global energy practice, and his presence in Berlin positions us well for the expected upturn in energy-related M&A activity following the German Government’s decision to phase out nuclear power.’

Alvaro Sainz, HSF’s European head of corporate, added: ‘Our team in Germany is already winning interesting and complex cross-border client mandates and, as Europe’s largest transactional market, we anticipate that Dirk will swiftly grow his practice by close collaboration with our network of offices in Europe, the Middle East and particularly Asia.’

Tom.moore@legalease.co.uk

Legal Business

Slaughters and Links lead on £3bn Carillion/Balfour talks; HSF and A&O advise on BSkyB’s £7.4bn European acquisitions

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Construction group Carillion has instructed Slaughter and May’s corporate heavy hitter William Underhill and fellow corporate partner Kathy Hughes to advise on a proposed £3bn merger with UK rival Balfour Beatty, which has turned to Linklaters’ M&A veteran and longstanding adviser Iain Fenn.

The deal comes as today (25 July) also saw BSkyB conclude a £7.4bn deal to buy European sister companies Sky Deutschland and Sky Italia from 21st Century Fox, with Herbert Smith Freehills (HSF) leading for BSkyB and Allen & Overy (A&O) for Rupert Murdoch’s multinational media corporation.

If the Carillion Balfour talks are successful the merger, which is likely to be scrutinised by the UK’s Competition Commission, will create the largest construction and engineering company in the UK.

Carillion is also a longstanding client of Underhill (pictured), adviser to Royal Mail on its high profile IPO, who has handled a large slice of Carillion’s corporate work over the past decade, including its £291m acquisition of civil engineering firm Mowlem in 2005.

Slaughter and May have formed a close client relationship with Carillion, which in 2013 turned over £4.1 billion, including offering the services of Carillion’s low-cost legal arm to key client Vodafone.

Fenn, meanwhile, last year advised Balfour Beatty on its £190m sale of its UK facilities management arm to French energy group GDF Suez Energy in an attempt to reduce debt and focus on major infrastructure projects. He is well known for his work for Vodafone and advised the company on its £6.6bn acquisition of German cable group Kabel Deutschland last year.

Confirming the talks today (25 July) Balfour Beatty and Carillion said in a joint statement that they are working on a strategy and business plan for a combined entity, which will be ‘underpinned by the evaluation of achievable synergies, future financing arrangements and a number of other essential supporting workstreams’.

The construction duo now have until 21 August to complete the deal under the UK Takeover Code.

Elsewhere, BSkyB has turned to relationship partner Stephen Wilkinson to advise on the acquisition of Rupert Murdoch’s pay TV companies in Germany and Italy, creating one of Europe’s largest pay TV providers. Wilkinson, who also advised BSkyB in the £481m sale of its stake in ITV to Liberty Global earlier this week, was flanked by M&A partner Malcolm Lombers, equity capital markets partner Chris Haynes, Brussels-based competition partner Kyriakos Fountoukakos and IP partner Joel Smith.

HSF teamed up with Hengeler Muller’s Klaus-Dieter Stephan to complete the £2.9bn purchase of Sky Deutschland, acquiring a 57.4% stake from US media group Fox, with an offer put in for the outstanding shares to the remaining minority shareholders. On the £2.45bn acquisition of Fox’s 100% stake in Sky Italia, HSF worked alongside Bruno Bartocci of Italian firm Legance on local law.

BSkyB’s in-house team was spearheaded by deputy general counsel Andrew Middleton and principle legal adviser Sianne Walsh.

Wilkinson told Legal Business: ‘The deal was a complex, marrying the German public offer system with a private acquisition and stitching the transactions together as an integrated deal.’

For 21st Century Fox the A&O team was led by London corporate partners Andrew Ballheimer and Simon Toms, with a team made up of London corporate partners and German corporate partners Oliver Seiler and Hans Diekmann and the firm’s co-head of competition Antonio Bavasso. Milan-based corporate partner Paolo Ghiglione worked alongside Italian firm Duccio Regoli of Mazzoni e Associati to complete the Italian end of the deal.

Tom.moore@legalease.co.uk