Legal Business

Willkie Farr takes top KWM biller to launch competition practice in the City

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King and Wood Mallesons (KWM) has lost another heavy-hitter as competition partner Philipp Girardet exits the firm to set up Willkie Farr & Gallagher‘s London competition practice.

Girardet, who will join with a team including associate Rahul Saha, advises on a broad range of EU and UK competition law, competition litigation and regulatory issues. Girardet will be a significant loss for the legacy SJ Berwin partnership as he is understood to have been one the top 20 billers of the 2015/16 financial year.

Previously Girardet was the deputy director of the cartels branch of the UK competition authority for two years from 2005 and during his career has worked closely with the European Commission, the US Department of Justice and OECD Competition Section.

Girardet is the latest in a concerted push by Willkie Farr in its London office across the past 12 months with those partners making the jump to the New York-based firm including corporate partners Mark Fine from Bain Capital Credit where he was European general counsel and Andy Tromans from Clyde & Co.

Head of Willkie Farr’s European competition and antitrust practice Jacques-Philippe Gunther said: ‘The addition of Philipp, a highly respected UK-qualified competition practitioner, together with his team in London and in Brussels, is another major step in our strategy to develop a first class platform for complex European merger, investigation and litigation matters; it follows our recent hiring of a top German antitrust partner Suzanne Zuehlke last year.’

Law firms in the City have been gearing up for a slew of competition disputes following the introduction of US-style class actions in the UK late last year in the Consumer Rights Act 2015. Quinn Emanuel Urquhart & Sullivan announced in July it is bringing a claim against MasterCard on behalf of UK consumers hit with ‘illegal’ credit and debit card charges in one of the first claims of its kind.

KWM also lost competition litigator Elaine Whiteford and litigator Greg Lascelles who both left for Covington & Burling in July. The firm has endured a string of exits during a turbulent 18 months after a restructuring in March, when 24 partners were asked to leave, brought about unintended consequences. The firm has since replaced its managing partner and senior partner for Europe.

madeleine.farman@legalease.co.uk

For more on competition in the City see: ‘Less bark, more bite – competition to the fore as tougher enforcement arrives’

 


Legal Business

Mishcon and Hogan Lovells line up as KWM takes case against Goodwin Procter over PE team

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Mishcon de Reya and Hogan Lovells are to face off as King & Wood Mallesons (KWM) issues a claim against Goodwin Procter over several private equity hires made by the US firm.

As reported by Legal Business in July, KWM wrote to Goodwin over potential legal proceedings against it concerning the exit of a six-partner private equity team. The team, which included Paris managing partner Christophe Digoy and Maxence Bloch, is understood to have walked out with at least £8m in annual billings.

KWM’s claim is understood to be against both Richard Lever and Goodwin Procter. Lever announced he would leave KWM in April 2015 to develop a City PE practice at Goodwin, while the Boston-based announced the Paris team would join it from KWM a year later.

Goodwin is being represented by Hogan Lovells’ employment partner Stefan Martin, while Mishcon’s head of employment Daniel Naftalin is acting for KWM. Goodwin and KWM both declined to comment on the case.

KWM has said it will re-build its practice in France, highlighting that its profitable Paris funds team was unaffected by the Goodwin departures. The firm’s European partnership has undergone a testing 18 months, having recently re-organised its structure, moving from 17 to three divisions, asked 24 partners to leave in March and increased its loan facility with Barclays earlier this year.

This month the firm replaced both leaders for its legacy SJ Berwin practice, opting for Frankfurt partner Michael Cziesla as EUME senior partner, defeating Dubai-based disputes partner Tim Taylor QC. Earlier this October the partnership elected Tim Bednall as EUME managing partner, defeating Gareth Amdor in a two-man race for the position.

victoria.young@legalease.co.uk

For more on King & Wood Mallesons, subscribers can see Branded for an in-depth look at the firm.

Legal Business

Frankfurt’s Cziesla elected by KWM European partnership as first non-London senior partner

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King & Wood Mallesons (KWM) has elected Frankfurt partner Michael Cziesla as EUME senior partner, defeating Dubai-based disputes partner Tim Taylor QC in the race between two legacy SJ Berwin veterans. The election was triggered after Stephen Kon’s early resignation last month.

Cziesla (pictured) is appointed with immediate effect for a term of three years. He joined legacy SJ Berwin in 2002 and specialises on multi-jurisdictional and cross border M&A, leveraged buyouts, joint ventures and restructurings.

Kon joined legacy firm SJ Berwin in 1982 and became senior partner in 2012 leading the firm through its 2013 merger with Hong-Kong based KWM. He will return to fee earning.

The results of KWM’s EUME managing partner elections were also announced earlier this month, when corporate partner Tim Bednall took on the position following William Boss’s premature resignation after less than one year in the post.

Both leadership changes are hoped to bring internal stability in the firm which has had a bruising 18 months. The leadership changes come as the legacy SJ Berwin practice recently re-organised its structure, moving from 17 to three divisions, asked 24 partners to leave in March and increased its loan facility with Barclays earlier this year.

Cziesla said: ‘I care deeply about KWM and am honoured to have been elected EUME senior partner. The opportunity to help drive our firm forward as a challenger, top-tier law firm is one that I relish, and I am grateful for the trust my partners have shown in me.’

Kon added: ‘On a personal note, passing the senior partner baton for the first time to a non-London based partner is further testament to our continental European and Middle East practice being at the core of so much of what we are about as a region.’

georgiana.tudor@legalease.co.uk

Click here to read ‘Branded’ our in-depth analysis of the state of King & Wood Mallesons (£)

Legal Business

Frankfurt and Dubai partners to compete for KWM senior partner position

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King & Wood Mallesons (KWM) confirmed today (11 October) that Frankfurt corporate partner Michael Cziesla and Dubai-based disputes partner Tim Taylor QC are the two contenders for firm’s EUME senior partner position. The election was triggered by Stephen Kon’s early resignation in September halfway through his mandate.

Cziesla (pictured) is a member of the management team of KWM in Germany. He joined legacy SJ Berwin in 2002 and specialises on multi-jurisdictional and cross border M&A, secondaries, leveraged buyouts, divestments, joint ventures and restructurings.

Taylor is the only QC residing in the United Arab Emirates (UAE) and joined the firm in 1988. His practice includes arbitration, mediation and litigation and has extensive experience in the region, having also advised on disputes in other Gulf countries such as Saudi Arabia.

Around 140 partners across the EUME region are expected to vote in the election, and the senior partner is due to be named next week. The appointment will be with immediate effect, with a term of three years in the role.

Kon joined legacy firm SJ Berwin in 1982 and became senior partner in 2012 leading the firm through its unsteady 2013 merger with Hong-Kong based KWM. He will return to fee earning once a replacement is confirmed.

The results of KWM’s EUME managing partner elections were released last week with corporate partner Tim Bednall defeating tax partner Gareth Amdor for the position. The managing partner elections were triggered by William Boss’s resignation in January with less than one year in the post.

The leadership changes come as the legacy SJ Berwin practice recently re-organised its structure, moving from 17 to three divisions, asked 24 partners to leave in March and increased its loan facility with Barclays earlier this year. All eyes are on this series of elections as the firm looks for internal stability following a turbulent 18 months.

georgiana.tudor@legalease.co.uk

Legal Business

Former Mallesons chair takes out KWM European managing partner election

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King & Wood Mallesons (KWM) announced today (4 October) that Tim Bednall was elected as EUME managing partner, defeating Gareth Amdor in a two-man race for the position.

Bednall is joint global co-ordinator of the KWM corporate, M&A and securities practice. He played a key role in KWM’s 2013 merger with SJ Berwin, and was chair of Australian legacy firm Mallesons Stephens until 2012. He relocated to London in 2015 as joint global co-ordinator of the KWM corporate, M&A and securities practice.

The managing partner election was triggered after former European managing partner William Boss stepped down prematurely in January with less than one year in the post. His replacement was intended to be in place in May but this was later pushed to September.

Simultaneously, the nominations for the senior partner position are still open, and the names are expected by 11 October latest, with results due before 26 October.

Commenting on his appointment, Bednall said: ‘KWM has come a long way in the past few years and I am delighted to have the opportunity to help shape its future in EUME. My immediate priority is to work with my partners across Europe and the Middle East to drive positive change and growth in the business.’

Outgoing EUME senior partner Stephen Kon also added:’Tim is an outstanding, collegiate individual who has the best interests of the firm at heart and who will bring exceptional experience, energy and integrity to the role. I have no doubt that Tim will make an excellent managing partner with a clear vision for the future of the firm and the commitment to drive it forward.’

Bednall joined legacy firm Mallesons in 2004 and the London office of KWM in 2015. He takes up the position with immediate effect and for a term of three years. Bednall’s competitor Amdor, is London head of tax and co-head of the EUME tax practice and joined SJ Berwin in 2005.

After what can fairly be described as a tumultuous year for the firm’s legacy SJ Berwin practice, it remains to be seen if this result is the new start the firm needs.

To read more on KWM see the feature: ‘Global 100: Branded – Inside the troubled takeover of SJ Berwin

Legal Business

Tax vs corporate: KWM European managing partner contenders emerge

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After extending the nomination period by a week, King & Wood Mallesons (KWM) confirmed today (28 September) that tax partner Gareth Amdor and corporate partner Tim Bednall are the two candidates for the firm’s European and Middle East (EUME) managing partner position.

The election was triggered after former European managing partner William Boss stepped down in January. His replacement was intended to be in place in May but this was later pushed to September.

Amdor (pictured left) has been a KWM partner since 2005 and is London head of tax and co-head of the European and Middle East tax practice. He also chairs the firm’s finance committee and sits on the KWM remuneration committee.

Bednall played a key role in KWM’s 2013 merger with SJ Berwin, he was chair of Australian legacy firm Mallesons Stephens Jaques and relocated to London this February as joint global co-ordinator of the KWM corporate, M&A and securities practice. The results are expected by October 11.

The firm is also undergoing a senior partner election after regional leader Stephen Kon told the partnership he would step down as senior partner halfway into his three-year term. Kon will return to fee earning next month.

It has been a turbulent 18 months for the legacy SJ Berwin practice, which suffered a series of high-profile partner exits amid a period of financial underperformance. The firm re-organised its practice from 17 to three divisions, asked 24 partners to leave in March and underwent a cash call asking partners to inject £14m into the practice. The firm has also extended its loan facility with Barclays this year, up from £20m to £25m, and experienced delays in paying partners.

Read more in the feature: ‘Global 100: Branded – Inside the troubled takeover of SJ Berwin’

georgiana.tudor@legalease.co.uk

Legal Business

Going private: KWM’s former City tax head resurfaces at Forsters

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Former King & Wood Mallesons head of tax Heather Corben has resurfaced at private client firm Forsters, following the restructuring of KWM’s legacy SJ Berwin practice.

Corben (pictured), whose clients included British Land, Axa REIM, Brockton Capital, LaSalle Investment Management, British Airways Pension Fund and Heron, joins the West End firm as a partner.

Having been head of tax at KWM for more than ten years, Corben is ranked as a leading individual in The Legal 500. For Forsters, the move coincides with the appointment of Ben Barrison from DLA Piper, who joins the firm’s property litigation team.

Forsters has been on a trend-defying run since the onset of the global financial crisis, increasing fee income by 13% in 2015/16 to £46.7m, constituting its sixth consecutive year of double-digit growth since 2011.

Managing partner Paul Roberts said: ‘Heather’s experience and abilities are clear to see. She has a strong track record of advising on the structuring of major corporate and real estate transactions. She will strengthen our already excellent tax team, which can only benefit from her experience.’

The legacy SJ Berwin arm of KWM, covering Europe and the Middle East, was the worst-performing region of the firm last year behind foundation practices in Australia, Hong Kong and China as global revenue dropped 1% to $1.02bn in 2015. London is by far the largest office in the Europe and Middle East region, generating around 65% of the region’s revenue of £191m. It has undergone a cull of 15% of its 160 strong partnership, and voted to inject another £14m into the firm to put it on a firmer footing in July.

The practice is currently without a European managing partner following the resignation of William Boss in January and regional senior partner Stephen Kon informed the partnership this month he will step down as senior partner halfway into his three-year term.

victoria.young@legalease.co.uk

Legal Business

Clifford Chance and Davis Polk deliver $8bn Hong Kong IPO for Postal Savings Bank

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Clifford Chance, Davis Polk & Wardwell, King & Wood Mallesons and Chinese law firm Haiwen & Partners have advised on the year’s largest initial public offering (IPO) of $8bn for Postal Savings Bank of China launched today (14 September).

US firm Davis Polk advised state-owned Postal Savings Bank on the float on the Hong Kong Stock Exchange with Haiwen acting as Chinese counsel on the deal.

Magic Circle firm Clifford Chance advised the underwriters China International Capital Corporation, Morgan Stanley, Bank of America Merrill Lynch, Goldman Sachs and JP Morgan as joint sponsors on the Hong Kong Stock Exchange, while King & Wood Mallesons acted as Chinese counsel to the banks.

Clifford Chance’s team was led by China co-managing partner Tim Wang with Hong Kong partners Amy Lo and Fang Liu, supported by Singapore-based Jean Thio.

Postal Savings Bank has more than 40,000 branches across China and more than 500 million retail customers.

The bank’s IPO is the largest share offering globally so far in 2016. The deal is the largest IPO since the record breaking offering on the New York Stock Exchange of Chinese e-commerce giant Alibaba, which raised more than $25bn as the largest such deal in history.

Clifford Chance’s China team has advised on several major Hong Kong IPOs this year, including the float of China Everbright Securities for $1.1bn and Bank of Tianjin for $990m.

Other major IPO mandates this year have seen Linklaters and Clifford Chance act on the float of Metro Bank in March, valuing the bank at around £1.6bn.

In January, Clifford Chance, Linklaters, Allen & Overy and King & Wood Mallesons all advised on the proposed IPO of Clydesdale and Yorkshire Bank.

matthew.field@legalease.co.uk

Legal Business

KWM’s European head Kon to step down early after turbulent period for global giant

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After a bruising 18 months for King & Wood Mallesons‘ European and Middle East business, regional senior partner Stephen Kon has informed the partnership he will step down as senior partner halfway into his three-year term.

Kon, a competition veteran who joined the legacy SJ Berwin in 1982, will relinquish his leadership by the end of October to return to fee earning. Kon’s decision kickstarts a senior partner race that will begin on 12 September, when partners can put themselves forward for the role. A replacement will be announced between 19 and 27 October to take over immediately.

The decision comes as KWM this month kicks off its much-delayed election for the managing partner post, which has been vacant since the spring. Nominations open for both roles on 12 September with the managing partner set to be finalised in early October.

Kon commented: ‘It has been a great privilege to serve as EUME senior partner since 2012 but, with the election of a new managing partner now imminent, the time has come to pass the baton of leadership to a new generation. I strongly believe it is in the best interests of the firm to put in place a new leadership team at this time, to drive the business forward and to draw the full benefits of the recent changes we have made to strengthen the firm in EUME. I remain fully committed to the firm.’

Kon was elected senior partner of SJ Berwin in May 2012, before leading the City law firm through its merger with Hong Kong-headquartered KWM in November 2013 in what became the first major West-East legal merger. He was re-elected as senior partner in October 2014 to serve a second three-year term beginning May 2015.

Kon, however, has largely managed the Europe and Middle East business since the start of this year after William Boss unexpectedly stood down as regional managing partner at the start of the year – just nine months into the job. The firm, which elected Boss for a three-year term at the same time as Kon’s re-election last spring, has since been without a managing partner in the region.

Kon has overseen a raft of shake-ups to the business in 2016 in a bid to revive its fortunes following a string of high profile partner exits and a period of financial underperformance. This year he has overseen a practice re-organisation moving from 17 to three divisions, with more powerful practice heads, to better support management.

In what has been a punishing 2016 for the business, Kon has also led the firm through a major partnership restructuring, which saw some 24 partners asked to leave in March, and a cash call that will see partners pump £14m into the troubled practice. The firm has also extended its loan facility with Barclays this year, up from £20m to £25m, and experienced delays in paying partners.

KWM global managing partner Stuart Fuller commented: ‘Stephen has been an exceptional senior partner, a leader who has guided the firm through a period of transformational change. He has brought insight, energy and good sense to the role and we are indebted to him for his contribution as senior partner. Stephen’s decision to step down as senior partner to allow for a new leadership team is entirely consistent with his selfless approach and commitment to what is best for the firm.’

tom.moore@legalease.co.uk

Leadership timetable

12 September: Managing partner and senior partner election process opens

20 September: Nominations for managing partner close

4 October: Earliest date for announcement of the result of the managing partner election

4 October: Nominations for senior partner close

11 October: Latest date for announcement of the result of the managing partner election

19 October: Earliest date for announcement of the result of the senior partner election

26 October: Latest date for announcement of the result of the senior partner vote

The appointment of both the managing partner and senior partner will be with immediate effect with a term of three years for each role.

Click here to read ‘Branded’ our in-depth analysis of the state of King & Wood Mallesons (£)

Legal Business

Top KWM funds partner exits for Clifford Chance in Germany

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Clifford Chance (CC) has tapped King & Wood Mallesons (KWM) for its highly-regarded Germany head of funds Sonya Pauls.

Pauls (pictured), who divided her time between London and Munich at KWM, will join CC’s Munich office. Pauls was one of KWM’s biggest billing partners across Europe with 20 years’ experience advising European and global fund managers.

She will work with the Magic Circle firm’s German funds team and its international private funds group, as well as taking responsibility for private equity funds in the firm’s corporate department.

CC Germany managing partner Peter Dieners said: ‘Pauls’ move to Clifford Chance is fantastic news for the firm. For us, she is the market leader in Germany for private equity fund structuring and her skills and know-how complement our strengths. Together with our existing funds team, this will create a truly unique and outstanding funds practice, which dovetails perfectly with our national and global strategy.’

Pauls is the latest notable exit from KWM’s Germany offices. K&L Gates recently launched in Munich last month with the hire of a three-lawyer team from the firm, bringing in investment management partner Hilger von Livonius and two of counsel.

The departure follows a string of high-profile partners in exiting KWM’s European practice, with London alone experiencing the loss of private equity heavyweights Steven Davis to Proskauer Rose and Richard Lever to Goodwin Procter in recent times, while valued partners such as competition litigator Elaine Whiteford, financial regulation specialist Gregg Beechey and Simon Fulbrook have also departed for Covington & Burling, Fried, Frank, Harris, Shriver & Jacobson and Goodwin Procter respectively. Pauls’ exit marks further deterioration of the firm’s once well-regarded continental European practice, with KWM having lost a six-partner private equity team billing over £8m a year in Paris to Goodwin Procter in April.

Pauls’ departure is also symbolic. The funds group, bar the exit of London-based Duncan Woollard to Paul Hastings, has largely proved imperious to partner exits despite the chaos caused at the firm this year by the shock resignation of managing partner William Boss, pay delays, a practice reorganisation, a restructuring that saw some 24 partners asked to leave the firm and a cash call that will see partners pump £14m into the troubled practice.

matthew.field@legalease.co.uk

For more on King & Wood Mallesons see the cover feature: ‘Global 100: Branded – Inside the troubled takeover of SJ Berwin’