It’s only natural that one of the UK’s biggest firms would look at a jurisdiction where it’s competitors have been making big plays and ask what they are missing… some of the names that Herbert Smith has been linked with – including Blake Dawson and Freehills – would, undeniably, create a force to be reckoned with.
This speculation came a few days after we received the following tip from an anonymous Blake Dawson spy:
I’m amazed that Firm Spy hasn’t got word about Blake Dawson’s strategy to seek a merger with an overseas law firm. The ”plan” is to sound out something with a UK or US based law firm. Want confirmation? Get any lawyer to ask their partner about it. Many partners do disagree with the board’s strategy though. I know that the partner I work for does. You will see that an exodus of partners has begun. Some high profile partners have walked and more will continue to do so.
Why?
Any international law firm looking to merge with us will only be looking for resources (mining) and corporate work. They will ditch our employment, IP, property and government practices very quickly. That means a few offices will close and staffing in those that remain will be greatly reduced.
Indeed there has been a recent exodus of partners. We have seen the firm lose a steady stream of partners this year (click here, here and here). But our intelligence doesn’t stop at one comment and the evidence of partners vacating the premises. We received the following information from another anonymous Blakes spy last week:
Blake Dawson and Herbert Smith both currently working on the Sinopec LPG deal. The firms are getting along swimmingly. A little too well if you ask me. I do hope clients aren’t being billed for flights around the world that are just being used for the purposes of merger talks…
True it is that Blakes and Herbies have been working on the Sinopec LPG deal – the largest LPG supply agreement in Australian history by volume. But is speculation by The Lawyer, evidence of a pattern of departing Blakes partners and repeated rumours sent to us enough to ground a story that another massive international merger is afoot?
We sent the following email to Blakes to find out:
——– Original Message ——–
Subject: Merger Talks
Date: Tue, 17 May 2011 23:30:27 -0400
From: <news@firmspy.com>
To: <lisa.macnamara@blakedawson.com>
Cc: <john.carrington@blakedawson.com>Hi Lisa,
We’re hearing quite a bit of noise that Blake Dawson is currently sounding out a merger with a major international firm. Do you care to comment on whether it is the prospective merger that has precipitated a recent exodus of Blake Dawson partners?
Which firms are being considered by Blake Dawson?
Regards,
FS
We are yet to receive a response. If you know more, please email us at news@firmspy.com
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Interesting rumour indeed. Aren’t Herbies regarded as a litigation powerhouse in the UK? And isn’t Blakes, arguably, the weakest of the top-tier firms in that space?
Although, yes, the energy & resources synergies are there. The Blakes’ Brissie office has plenty of resources work through the Projects group, as does the Melbourne office through the Corporate group. Even though David Williamson has left for BHP, Marie McDonald, Peter Stirling and Justin Smith have plenty of clients in that sector. Nick Terry and John Sartori, too. I have heard from the mouth of one of these partners that Slaughters (and Nigel Boardman in particular) are the only UK firm they have any time for though – so it will be interesting to see if that’s still the case if and when a merger comes around, or if money talks…
Also, how will the Blakes/Slaughters “team” work in the event of another large BHP transaction? Can’t imagine Slaughters wanting to work with Herbies’ Australian arm…
I chuckle everytime I hear (or read) about an Aussie firm whose partners believe only S&M is good enough for them. Reminiscent of being in primary school where the ugly, not especially bright bloke has a crush on the cool, pretty (loaded) girl. Get over yourselves fellas, that fairytale only ever works out well in the movies. This is even leaving aside the fact that most S&M partners would struggle to locate Australia on the map. Recalling your name (and the name of your firm) is a challenge they can meet only with the assistance of their PA.
hs is the best litigation firm in london, with a very limited international network. i’d be very surprised if they took on 120-150 aussie partners plus all the overheads. sounds like nonsense to me!
@ anon
I think that’s the point firmspy are making. Whoever takes over Blake Dawson is going to do some chopping. From past examples of overseas firms entering the market, Sydney and Perth are the most attractive offices to any UK or US firm.