Legal Business

Never waste a crisis as Ashurst and Hogan Lovells step in amid Bell Pottinger’s administration woes

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Adviser reviews AshurstHogan Lovells

As scandal-ridden PR agency Bell Pottinger collapses into administration, Ashurst, Hogan Lovells and Mishcon de Reya have swept in to take advisory roles during the aftermath.

Ashurst is acting for Bell Pottinger’s administrators, BDO, with a team consisting of corporate partner Bruce Hanton and restructuring partner Olga Galazoula. Ashurst had previously represented Bell Pottinger in 2012 when founder Lord Bell acquired the PR company back from its parent company Chime. Hogan Lovells is advising the agency’s biggest lender, Lloyds Banking Group.

The administration of the high-profile agency is directly linked to a widely criticised campaign in South Africa. The agency rapidly collapsed after the publication on 4 September of a report by Herbert Smith Freehills (HSF), the day after Bell Pottinger chief executive James Henderson resigned. The report criticised the agency for creating potentially racially divisive material targeted towards ‘wealthy white South African individuals or corporates’.

Since the report was published, both Pinsent Masons and Berwin Leighton Paisner have announced that they were discontinuing their relationship with Bell Pottinger, which had a number of law firm clients. The company, which rapidly became one of the City’s dominant communication firms after its launch in the buccaneering 1980s, has around 100 staff in the UK.

Meanwhile, Mishcon has been primed to advise two former Bell Pottinger partners who are weighing up their options to sue their former employer, according to press reports, though the firm refused to confirm its role.

The notice of intention for Bell Pottinger to appoint administrators was filed on 8 September, but came into effect on 12 September. None of the company’s subsidiaries outside the UK are in administration, and they will continue to trade under the control of separate management teams.

A spokesperson for BDO said: ‘Following an immediate assessment of the financial position, the administrators have made a number of redundancies. The administrators are now working with the remaining partners and employees to seek an orderly transfer of Bell Pottinger’s clients to other firms in order to protect and realise value for creditors.’

tom.baker@legalease.co.uk

Legal Business

‘Unprecedented in scale’: Travers, Slaughters and Hogan Lovells advise as Tata Steel separates UK pension scheme

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Corporate Hogan LovellsSlaughter and MayTravers Smith

Travers Smith, Slaughter and May and Hogan Lovells have all advised as Tata Steel today signed a long-awaited agreement to separate its business from the £15bn British Steel Pension Scheme (BSPS), in what is the largest pensions scheme restructuring ever in the UK.

As a result of the separation, achieved through a regulated apportionment arrangement (RAA), Tata Steel will pay £550m to BSPS, which will also be given a 33% equity stake in the steel company. With the support of the Pensions Regulator and the Pension Protection Fund (PPF), a new BSPS will be created after an assessment period.

Slaughter and May advised long-standing client Tata Steel on the restructuring, with pensions and employment partners Charles Cameron and Phil Linnard, restructuring partner Ian Johnson, finance partner Andrew McClean and M&A partner Padraig Cronin comprising the team. PwC also represented Tata Steel.

The BSPS trustee has been a Travers Smith client for ten years, and the firm represented it on the restructuring with a team that included pensions partners Paul Stannard, Dan Naylor and Susie Daykin, finance partners Jeremy Walsh and Ed Smith, corporate partner Adrian West, tax partner Richard Stratton and derivatives partner Jonathan Gilmour.

The separation of the BSPS had been seen as a barrier to a potential merger of Tata Steel with Germany’s ThyssenKrupp, but the separation may now accelerate merger discussions.

In a statement, Tata Steel’s group executive director Koushik Chatterjee said: ‘Considering the continued challenges in the global steel industry as well as the uncertain global politico-economic environment, the RAA presents the best possible structural outcome for the members of the British Steel Pension Scheme and for the Tata Steel UK business.’

The PPF, which was represented by Hogan Lovells, said in a statement: ‘Members of the British Steel Pension Scheme will have seen a lot of speculation about the future of their pensions, so we want to reassure them the PPF is there to protect them throughout this process.’

Slaughter’s Cameron added: ‘This restructuring is unusual in a number of ways, and unprecedented in its scale. It is by far the largest pension scheme restructuring carried out in the UK.’

In April 2016, Forsters lined up opposite Slaughter and May on Tata Steel’s deal to sell its European long-products business to UK investment house Greybull Capital.

tom.baker@legalease.co.uk

Legal Business

‘Takes us to a new level’: Hogan Lovells picks up Freshfields investment funds veteran Baird in latest partner exit

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Strategic recruitment Hogan Lovells

Freshfields Bruckhaus Deringer has seen the departure of a member of its corporate team with the exit of investment funds partner Jonathan Baird to Hogan Lovells.

He is the latest hire into Hogan Lovells’ investment funds practice, with the transatlantic firm bringing in New York-based Adam Tope from Greenberg Traurig in March.

Baird joined Freshfields as an associate in 1994 before moving on to Chicago-based Altheimer & Gray in 1999 where he was made partner. He returned to Freshfields in 2003, the same year Altheimer collapsed. Baird has advised clients including 3i, BH Global, Riverstone Energy and Grainger.

Hogan Lovells’ investment funds co-head Nick Holman said the group has already had ‘a tremendously strong year’. He added that bringing in ‘someone of Jonathan’s calibre and reputation to our team takes us to a new level’.

Baird said he had worked opposite Hogan Lovells on ‘some significant transactions in the past’ and noted his new firm’s ‘excellence in the funds space’.

In the last 12 months, Freshfields has seen the exit of finance partners Jonathan Birks and Sean Lacey to Kirkland & Ellis, with corporate partner Ben Spiers departing the firm for Simpson Thacher & Bartlett. In April, finance partner Dougall Molson joined Fieldfisher and, earlier this week, it emerged banking partner Geoff O’Dea had made the move to Baker McKenzie.

Last week, Freshfields announced the firm’s joint managing partner Chris Pugh is to step down less than half way into his term. He is the second member of its c-suite to step down since the four member team took up the role in January last year. Executive partner Michael Lacovara left the firm for Latham & Watkins in June 2016.

madeleine.farman@leaglease.co.uk

Legal Business

Revolving doors: Hogan Lovells and Gibson Dunn expand on continent, McGuireWoods appoint to London, Winston to Dubai

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Strategic recruitment Gibson, Dunn & CrutcherHogan LovellsMcGuireWoodsWinston & Strawn

Firms have strengthened their global practices, as Hogan Lovells appointed a key Paris partner, Gibson Dunn & Crutcher recruited in Munich, McGuireWoods hired in London and Winston & Strawn brought in a new Dubai managing partner.

Hogan Lovells have recruited heavyweight antitrust Francois Brunet in Paris, after a 26-year career building Cleary’s antitrust practice. His practice focuses on complex merger cases and cartel investigations.

Hogan Lovell’s global head of antitrust, competition and economic regulation Suyong Kim said Brunet ‘has won the loyalty of clients through his strategic acumen and his capacity to bring innovative solutions to the handling of their antitrust issues’.

Brunet chaired the Competition Commission of the French Committee of the International Chamber of Commerce since 2010, and has been a member of the board of the French Competition Lawyers Association since its creation.

McGuireWoods continued the expansion of its corporate practice in London with the addition of M&A partner Jeremy Davis from K&L Gates.

Davis’ M&A experience has involved US investments in Europe, amid the metals, packaging, manufacturing and information technology sectors. Last year, he advised Cyprus’ leading pharmaceutical company Remedica’s shareholders on their sale to South Africa-based Ascendis Health for €335m.

Chair of McGuireWoods M&A, corporate and technology department Scott Westwood said Davis’ ‘full-service M&A capabilities and extensive cross-border experience strengthen our corporate practice in London to the benefit of our U.S. and European clients’.

Gibson Dunn hired Sebastian Schoon from Ashurst as a financer partner in the firm’s Munich office. Schoon has been a partner at Ashurst since 2011, and his practice focuses on banking and finance law.

‘Following the recent opening of our Frankfurt office, Schoon’s addition will be a vital step in building our transactional practices in Germany,’ said Gibson Dunn’s chairman and managing partner Ken Doran.

Meanwhile over in Dubai, Winston & Strawn took on Eversheds’ UAE managing partner and head of dispute resolution Ben Bruton in the firm’s litigation department in the area.

During his tenure as UAE Managing Partner, Bruton led the development of Eversheds’ Dubai office over a three-year period. His practice involves high value arbitration and court proceedings in the UAE and internationally across sectors like financial services, engineering, energy and infrastructure, real estate, and construction.

Winston’s Middle East managing partner Campbell Steedman said his arrival ‘will add significant value as we continue to expand upon the strong business connections between Dubai and other global business hubs to better serve our clients.’

Georgiana.tudor@legalease.co.uk

Legal Business

Hogan Lovells opens new Boston office in Collora buyout

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US Hogan Lovells

Hogan Lovells is acquiring Boston-based litigation and investigations firm Collora on 1 September, taking on 15 partners in a move to bolster the firm’s life sciences offering in the US.

The Collora buyout gives Hogan Lovells access to a new market within the US. It will gain Collora’s expertise in life sciences and healthcare, as well as its financial services and technology clients. After the deal completes, Hogan Lovells and Collora will share over 500 life sciences lawyers.

Legal Business

Hogan Lovells launches financial regulatory consultancy with PwC director appointment

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Finance Hogan LovellsPwC

Hogan Lovells is set to offer advice to  through a new financial services regulatory consulting practice, hiring former PwC regulatory consulting practice director Steve Murphy to lead the business.

Aimed at dealing with regulatory finance issues arising in relation to Brexit, the practice, launched today (4 July), will provide financial services companies with comprehensive legal, regulatory strategy and compliance consultancy.

The firm said the practice is a new business model aligned with Hogan Lovells’ consultative approach, combining legal and non-legal capabilities in the cybersecurity, transfer pricing and strategic communications sectors. It will gear its advice towards asset managers, banks, building societies, wealth management firms, payment services providers and insurance companies.

Murphy has led PwC’s regulatory consulting practice since 2008 and has 25 years of experience in financial regulation and compliance.

On the timing of the launch, in relation to financial market uncertainty resulting from the 2016 EU referendum, Hogan Lovells partner Emily Reid said that Britain’s proposed exit from the European Union in March 2019, was likely to bring significant change for the sector.

The ability to provide a more complete range of services than those already provided by the firm would be crucial for clients to ‘successfully navigate the challenges ahead’.

Emily Reid, a Hogan Lovells financial services partner in London, will work closely with Murphy on the consultancy arm.  

marco.cillario@legalbusiness.co.uk

Legal Business

CC, Hogan Lovells and Bird & Bird all strengthen European antitrust practices

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Strategic recruitment Bird & BirdClifford ChanceHogan Lovells

Clifford Chance (CC), Hogan Lovells and Bird & Bird have all bolstered their European antitrust practices with key appointments. 

CC has added to its Paris antitrust team with the hire of David Tayar as a partner, who joins from Wilkie Farr & Gallagher’s Paris team, where he has worked for 11 years. 

Tayar, who spent six years as an associate at Freshfields, is a specialist in handling merger control investigations on behalf of European and French antitrust agencies.

CC’s global antitrust head Thomas Vinje described Tayar as having an ‘outstanding reputation’ and the hire would satisfy the firm’s clients’ ‘needs and expectations.’

In Brussels, Bird & Bird has hired Freshfields Bruckhaus Deringer competition and EU law specialist Hein Hobbelen as a partner. He will divide his time between the firm’s offices in Brussels and The Hague. Hobbelen is experienced in EU competition law and TMT regulation. Hein Hobbelen spent nearly 14 years at Freshfields.

Anne Federle, head of Bird & Bird in Brussels, told Legal Business that Hobbelen will devote 50% of his time to both offices but that this could change over time.

Federle stated that Hobbelen’s hire came after a drive to find a ‘Brussels-based competition lawyer with a strong media background’, to complement Bird & Bird’s particular focus on technology and media. Federle confirmed that Hobbelen will bring a number of clients with him to the firm.

Hogan Lovells also strengthened its Brussels office with the appointment of partner Salomé Cisnal de Ugarte, from Crowell & Moring.

Ugarte’s expertise spans a range of sectors, although she has a particular focus on consumer goods and financial services. Ugarte has experience advising clients during merger transactions and antitrust investigations.

Matthew Levitt, managing partner of Hogan Lovells’ Brussels office, described Ugarte as ‘exactly the kind of international antitrust lawyer that we look for.’

Suyong Kim, Hogan Lovells’ global antitrust head, added that ‘Brussels has always been a home for the firm, and it is also the home of EU and antitrust law. Her addition will enable us to continue growing our competition law practice in Brussels and globally.’

tom.baker@legalease.co.uk

 

 

Legal Business

Revolving doors: Brown Rudnick hires in UK, Hogan Lovells bolsters Madrid, Ashurst adds to Paris, HSF boosts Moscow

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Strategic recruitment AshurstBrown RudnickHogan Lovells

In a series of banking, finance and tax appointments across the globe, international firms are hiring to boost their financial capacities.

In London, Brown Rudnick has appointed partner Benjamin Klinger from Sidley Austin to expand its bankruptcy and corporate restructuring team. 

Klinger’s practice focuses on cross-border and domestic reorganisation, recovery and turnaround matters representing debtors, creditors and practitioners.

Brown Rudnick’s European bankruptcy and corporate restructuring head Louise Verrill said that Klinger’s hire ‘will add significant depth and breadth to our team, and enhance our ability to provide clients with creative ideas and analysis, and advice that is truly multi-jurisdictional’.

Hogan Lovells has hired DLA Piper’s Alfredo Barona as a banking partner to its Madrid finance practice. He has been a partner at DLA since 2012.

Barona’s practice focuses on advising lenders and borrowers on a wide variety of deals. He is already connected with a number of Hogan Lovells’ existing banking clients. Barona knows the firm well, ‘having been on the opposite side of the table’ to the firm in previous deals.

Hogan Lovells recently secured a 15 partner tie-up in Boston with life sciences and litigation firm Collora.

In Paris, Ashurst has appointed Emmanuelle Pontnau-Faure as a partner in its French tax group. She joined from PwC where she was a director since 2016, having practised as a lawyer at White & Case for 14 years.

Pontnau-Faure advises on a broad range of issues relating to corporate, finance, real estate, litigation and restructuring tax. In February, a five partner Ashurst tax team exited in Paris to Freshfields.

Ashurst’s Paris managing partner, Philippe None, said that Pontnau-Faure will work very closely with the Paris, EMEA and US tax teams.

In Moscow, HSF hired finance and banking partner Dmitry Gubarev from Orrick, Herrington & Sutcliffe, where he was head of the Russian banking and finance practice.

Gubarev specialises in syndicated loans, real estate and infrastructure financings, pre-export financings and structured products. He is also experienced in securitisation transactions and debt restructuring in the Russian market.

His key credentials include acting for Sberbank of Russia and Bank VTB, including recently acting for Sberbank of Russia on RUB31.5 billion sale of distressed debt of a major Russian metals and mining conglomerate to Gazprombank.

HSF’s Moscow managing partner Alexei Roudiak, said the hire ‘builds on our success in the Russian market and the notable expertise Dmitry brings will significantly strengthen and expand the banking and finance capability and brand in Moscow and internationally’.

Legal Business

Hogan Lovells to open new Boston office in Collora buyout

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US Hogan Lovells

Hogan Lovells is to merge with Boston-based litigation and investigations firm Collora on 1 September, taking on all of its 15 partners in a move to bolster the firm’s life sciences offering in the US.

The tie-up with Collora gives Hogan Lovells access to a new market within the US. It will gain Collora’s expertise in life sciences, healthcare, financial services and technology. After the merger, Hogan Lovells and Corolla will share over 500 life sciences lawyers.

All Collora’s 10 other lawyers and business services members will join Hogan Lovells. The firm then plans to add to the firm’s regulatory, corporate transactions and intellectual property.

Hogan Lovells global life sciences head Asher Rubin (pictured) told Legal Business that talks regarding opening a Boston office have dated back to late 2014 and specific merger negotiations with Collora commenced late last year.

Rubin described the Boston opening as a ‘unique opportunity in the world’ due to the unusually high concentration of large pharma corporations and world-class medical facilities in the area. ‘We are one of the premier life sciences firms in the world, but we weren’t in one of the premier life sciences locations in the world,’ he said.

The firms pointed to growth in Boston’s financial services and investment community.

Collora managing partner Bill Lovett, who will serve as the managing partner of the new office, said the combination came after searching ‘very hard’ to make sure any potential suitor would have the right ‘cultural fit.’

Lovett told Legal Business that Corolla and Hogan Lovells both shared a commitment to the local community, due to the high amounts of pro bono work both firms undertake. Hogan Lovells was specifically looking for a firm which was well rooted in that community. The firms already have an established relationship.

Collora is Hogan Lovell’s first new office since October 2016, when the firm became only the third to enter the Shanghai Free Trade Zone through an association with local firm Fidelity Law.

Fidelity is based in Xiamen in south eastern China Fujian province with around 170 lawyers and 32 partners specialising in white collar law, real estate, trade and cross-border corporate finance work. The firm previously had six offices in the south China province.

In the UK, Hogan Lovells has halted its search for a new London headquarters, instead preferring to stay in its long-term home of Atlantic House.

The decision came after the firm was able to negotiate a favourable deal with its existing landlord, Deka Immobillien Investment.

tom.baker@legalease.co.uk

 

Legal Business

Hogan Lovells hikes NQ pay by 5% in latest round of City increases

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Salaries Hogan LovellsShearman & SterlingWhite & Case

Hogan Lovells’ UK newly-qualified (NQ) lawyers pay has risen 5%, as the firm increases junior associates’ salaries.

NQ pay jumped £3,500 to £71,500, while first year trainees’ salaries rose by £1,000 to £44,000. Second year trainees have also received a £1,000 increase to £49,000.

The changes came into effect on 1 May.

Lawyers with one year’s post-qualification experience (PQE) at Hogan Lovells have their pay determined by a merit based pay model with broad salary bands.

A firm spokesperson told Legal Business the mechanism ‘ensure[s] that we are able to take into account an individual’s performance when determining salary within the relevant salary band.’

‘In addition, our lawyers have the ability to earn significant bonuses based on chargeable hours and/or a discretionary bonus.’

Earlier this month, White & Case announced its London associates would receive a significant pay increase, with the US firm awarding its NQs a £15,000 pay hike to £105,000 for 2017.

White & Case lawyers with one year-PQE received a 16% raise from £95,000 to £110,000, while two year-PQE salaries increased by the largest percentage, up 19% to £120,000.

Shearman & Sterling were the first to announce UK pay increases this year. Shearman’s NQ pay rose by 10.5% from £95,000 to £105,000, with mid-level associates receiving a 9.5% bump in their pay from £126,000 to £138,000. The start of its senior associate salary band has risen by 5.6% to £165,000, from last year’s £156,000. 

madeleine.farman@legalease.co.uk