On Friday, the AFR published yet another article speculating on an imminent announcement of a merger between Mallesons & Clifford Chance. This follows articles we published in mid and late October 2009 which also speculated that Cliffords would finally take a chance in Australia.
In Friday’s article, the following things were noted:
Mallesons is … in discussions with international counterparts over [a] potential merger or strategic alliance… Beaton Research & Consulting confirmed [it] was involved in advising on merger talks between some of Australia’s leading firms and “magic circle” firms in the UK… Mallesons‘… Robert Milliner said [the firm] “maintains an ongoing dialogue with a range of firms on both sides of the atlantic and regionally… we’ll move if and when the time is right in terms of our strategic objectives”… A … merger would force Mallesons into further cuts to staff numbers, having already completed a redundancy program last year to shed some 110 staff.
We received the following comments from an anonymous Mallesons spy on Friday (our comments appear in square brackets):
Mr Milliner sent us the following email this morning –
“A story appears in today’s Australian Financial Review that speculates on merger activity involving leading Australian law firms [FS: note, this is not a denial]. Contrary to the excitable tone of the story and the focus on Mallesons, a merger is not imminent [FS: so it’s going to happen, just not next week?]. The story is irresponsible for suggesting otherwise.
Like some other firms referenced in the article, we maintain an on-going dialogue with a range of firms globally [FS: note, this is not a denial that merger talks are afoot] but it is as simple as that [FS: as simple as what?]. Additional speculation in the article about staffing levels in the event of a merger is ill informed [FS: but not incorrect?].”
I would ask the Firm Spy to place the following question on your website – why should we prefer Mr Milliner’s email to the article published by the Financial Review when the authors who wrote the article were part of the same legal affairs team that Mallesons advised of the voluntary redundancy program before any staff had been informed of it? Is this just another case of the Financial Review being tipped off ahead of any of us?
The language chosen by Milliner, which calls to mind the anomalously transparent mud review, plus the revelation that the firm allegedly tipped the AFR off to its voluntary redundancy program ahead of its own staff, would ordinarily compel us to agree that perhaps there is more to this overwrought story than first thought. However, we received the following compelling comments on the weekend from another anonymous Mallesons partner spy:
Firm Spy, as our last reasonably objective editorial, can you please do your bit to set the collective minds of Mallesons staff at ease. There is no merger currently contemplated with Clifford Chance or with any other international firm. Neither Robert Milliner, nor the board has the power to unilaterally declare that a merger will take place. Rather, a long period of consultation must take place, over which period partners might be invited to consider expert, independent views and reports on the merger. A a partnership vote must then be taken. This consultation process was in operation in 2008, when it was last reported that a merger would take place. I was a part of it then. I am not a part of it now. This is because the consultation process has not yet begun. Nor is there any suggestion that it will begin any time soon.
So if it is true that Beaton Consulting has been involved in advising on an international merger, and that merger doesn’t involve Mallesons & Clifford Chance, then who is it? Do you know? Tell the Firm Spy first!
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