Apparently not, if sources informing the AFR are to be believed:
Hearsay understands a tie-up with an elite or “magic circle” UK firm is being discussed seriously. Linklaters and Freshfields are tipped as targets.
This is the first time we’ve heard that Freshfields are in the mix, but the potential tie-up with Linklaters is something we’ve also been hearing around the water-cooler. The AFR continued:
Linklaters’ partners have been out to Australia in recent weeks, and as much as Freehills might dislike the “rebound” connotations, Links is likely to be on the prowl now its Singapore joint venture partner Allen & Gledhill has been talking with British rival Allen & Overy.
Indeed, Freehills seems the logical target, given its presence in Singapore, so we put the proposition to the firm in the following email last night:
From: news@firmspy.com [mailto:news@firmspy.com]
Sent: Monday, December 05, 2011 07:34 PM
To: [name]
Subject: Request for CommentHi [name],
We’re hoping for some sort of comment re Friday’s Hearsay. Is it true that “a tie-up with a “magic circle” UK is being discussed seriously”? Have Freehills partners met with Linklaters partners in recent weeks? Where is the firm’s relationship with Freshfields at? Any meetings?
Do you have any further info re TransAsia Lawyers you might like to share?
Cheers,
FS
A spokesperson for Freehills responded:
We don’t have any comment about such speculation.
Nor should Freehills offer any comment because word on the street is that Linklaters is “assessing its Australian options” with considerable vigour. Next Stop? Allens Arthur Robinson. We received the following intel from an anonymous spy overnight:
What were Messrs Bedford, Godden, Salt and Wong of Linklaters discussing when they met with representatives of Allens Arthur Robinson recently? Merger?
Interesting question! Mr Stuart Bedford is a Linklaters partner based in Singapore. Mr Richard Godden is a Linklaters partner and member of the Global Executive Committee. Mr Stuart Salt is Linklaters’ Asia Managing Partner. Mr Kevin Wong is a Linklaters partner based Singapore. We understand that the meeting between the Linklaters’ equivalent of SEAL Team 6 and AAR took place in the last few weeks and included only AAR’s executive team.
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Interesting to see speculation about FF and Links in the press again given they have previously said they weren’t interested in coming to Oz.
http://www.google.co.uk/url?sa=t&source=web&cd=5&ved=0CDoQFjAE&url=http%3A%2F%2Fwww.thelawyer.com%2Ffreshfields-on-australia-the-ao-way-is-not-for-us%2F1003444.article&ei=5lXdTqidFdHHswa_38GiBA&usg=AFQjCNF7sH_s-5P6Rplyt09u5V9wYLQiHg
If I had to back a horse in this hypothetical race, it would be Links. There isn’t sufficient high value M&A or litigation in Australia right now for FF to make their move – in these dark times they need to be focusing on fostering existing relationships, winning over big cross-border clients and building their EMEA practices.
That said, if Freehills were to merge with Links, it means FF would only have Minters and Clutz left in the ‘Top Tier’ to refer work too. Could be good news for Corrs and G&T!
Agree with Kate. It’s not much of a secret here at Freehills that we want an international pairing and there has been plenty of talk about the recent Linklaters team, the same team who went onto visit AAR. I hope a merger will put an end to the internal reviews and concern among juniors about what the future holds
Fresh Free
Fresh Hills
Free Haus
FreeLinks
Free Laters
Link Hills
AAR Laters
Link AAR
Fresh AAR
Surely the incomer will run with one of these cool new names?
@ Words With Friends
More like Linklaters / Freshfields Bruckhaus Deringer. Freehills and Allens will be gutted and turned into colonial satellite offices.
Have to agree with Kate. No secret that the clutz upper echelon prides the fact that the firm will be the sole source to be referred Rolls Royce type work from outside Australia since most other firms have got “better halves”. Sour grapes or happy being single? You be the judge.
Minters has been so quiet lately I hardly see its name popping up anywhere in lawyers weekly!
Disagree with Kate. They can follow Clifford Chance’s strategy and merge with high performing boutiques.
Pardon me but I feel that @Wordswithfriends must recall the earlier reference to the alternative alliance – FreeWeillers.
Please do not take that away from me. I think it could work. If only for the snigger factor.
FH is an extremely high performing firm. Watch out LL. Come what may.
None of this magic circle talk is particularly interesting. The best result for juniors would be if the US firms stood up, took notice of Australia and entered the market in a serious way. Bring on wage inflation in our legal market – please Uncle Sam, please!
Good post Star Spangled. The US firms would be welcome entrants!
http://www.thelawyer.com/herbies-slashes-equity-to-attain-magic-profit-figure/1010609.article
Update: Looks like Herbies just entered the race to tie-up with Freehills.
I also heard through the grapevine that Links aren’t interested in a merger in Australia, but are looking to cement a BFF referral program similar to the one Slaughters has with AAR.
Links were in Aust to speak to firms about co-operation and referral relationships in specific areas such as banking work and Asia/Singapore. They will not merge with a mega firm in Aust; the large Aust firms are simply not profitable enough. If Clifford Chance could not make a merger with Mallesons add up then how could Links or Freshfields make it add up when those latter firms are much more profitable than Clifford Chance.
A Herbert Smith tie up with Freehills is a much more even and sensible tie up.
They could always follow the CC strategy and merge with Atanaskovic Hartnell in Sydney and Chambers & Company in Melbourne/Perth.
@Rob B – none of such mergers would include shared profit pools anyway, this is about Swiss Verein so actually, numbers are of less importance than partners’ willingness to try it out (and the time required to make it work), conflicts, culture and the potential upside for clients coverage/capabilities.
LL & FF would not take the A&O or CC route: A&O’s is still probably unprofitable and (sorry to say) somewhat stupid (‘Finance entry’ to build corporate later… here we come to play with low prices and an overlawyered market that doesn’t need us because it’s not that complex!). CC move was clever and profit accretive from the onset, however, it will take time to move this to a bigger platform which is what would be needed. + LL & FF need something broader than just Australia. They both need a SEA platform with preferably links into China (to protect what they already have), etc.
LL & FF are smart. if being in Oz becomes important to them (/ to service their clients), they will find a way.
Further update: http://www.legalweek.com/legal-week/news/2137858/herbert-smith-freehills-talks-firm-targets-australia-tie
I’m coining the term “Freebies”.
Wow, the FS offices had a long shutdown this year!
@an Elephant
“This is about Swiss Verein”. Is it? If there is no sharing of profits then there is no merger. It is an alliance and history will show none of them work; no combined culture ever evolves when you are not sharing the doe. The incentive to share clients? Zero. You have 2 law firms with the same name. I think you will find that magic circle firms would not do one.