The Lawyer UK has been leading on the KWM European travails for the last few weeks so it’s best for them to lead you through the merry dance of their dismemberment
Greenberg Traurig joins Dentons in bids for KWM partners
Greenberg Traurig has joined Dentons in talks to takeover large chunks of King & Wood Mallesons’ (KWM) EUME business, The Lawyer understands.
Firms including DLA Piper and New York firm Katten Muchin Rosenman have also started talks to take large numbers of partners.
A deal is expected to be finalised within the next week. If Dentons buys out the whole firm, KWM’s 130 EUME partners would be locked in, according to an insider.
Individual partners are also drifting away from KWM. Litigation head Craig Pollack is in talks to join Covington & Burling, while Michael Halford’s funds team followed him to Goodwin Procter last week.
Dentons boss Joe Andrew refused to confirm the firm was in merger talks with KWM in Europe but said the remaining partners were “high quality lawyers”.
A Greenberg spokesperson said: “We have no interest and have not had one conversation relating to the acquisition of KWM’s EUME business, though we wish their lawyers and staff well. Greenberg Traurig is an opportunistic firm, and we always look at situations where our objectives of excellence, cultural fit, value and financial discipline can be advanced.”
This summer Katten Muchin featured in The Lawyer’s Global 200 report, which highlighted some of the US firms that have had a presence in the UK for years but remain largely under the radar.
A source close to the firm said a straight takeover of the EUME arm would be preferable in order to save the maximum number of jobs. If one firm decides to take on the bulk of KWM’s EUME practice it would add around £180m to its top line, but would inherit a string of financial difficulties including high debts and rental liabilities.
KWM revealed it was frantically looking for a merger partner earlier this month after it emerged the proposed China rescue deal, which would have injected around £6m into the partnership, had failed.
The Chinese and Australian arms of the KWM verein had pledged to inject around £6m of capital into Europe on condition partners signed year lock-ins, but just a fifth of partners agreed to the terms.
A KWM spokesperson released a statement following the failed capital call, which read: “The EUME Partnership Board and management are considering a range of strategic options, including mergers, in conjunction with the firm’s bankers and financial advisers. A further statement will be made in due course.”
KWM is being advised by AlixPartners and CMS Cameron McKenna partner Rita Lowe on its restructuring plans. Lowe has spent her career advising law firms and other businesses on administrations and significant restructurings, including Dewey & Le Boeuf.
