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Allen & Overy and O’Melveny & Myers chiefs meet at Frankfurt hotel as mega-merger talks continue

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Two months after representatives from both firms met in London

Image credit: Sofitel Frankfurt Opera

Senior lawyers from Allen & Overy (A&O) and US outfit O’Melveny & Myers met at a plush five-star hotel in Frankfurt yesterday as discussions over a possible transatlantic merger between the duo gather momentum. If given the go-ahead, the tie-up would create a new global law firm with over 3,000 lawyers and combined revenues north of £2 billion.

It has now been reported that Bradley J. Butwin, O’Melveny’s chairman, was part of a group of lawyers from the Los Angeles-headquartered outfit that flew into Germany this week to hold further talks with A&O representatives. According to Legal Week (£), yesterday’s meeting took place at the plush five-star Sofitel Frankfurt Opera hotel.

News of the meet-up comes just two months after it was reported that O’Melveny partners had jetted into London to hold talks with A&O’s top brass. Speaking at the time, a spokesperson from A&O told Legal Cheek:

“We have been clear that developing our presence in the US is a priority for us and that we have spoken to a number of law firms there. However, we do not have any developments to announce and would reiterate that we won’t comment on any particular firm until the right time.”

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The latest report claims there has been an “increasing amount of contact between both firms in recent weeks”, however “a date to vote on a potential deal has not been set”. Speaking anonymously, one A&O partner in Germany reportedly told the website:

“I couldn’t give you a sense if people are against it or in favour — it’s not really tangible for us yet.”

The Frankfurt meeting comes on the back of a strong set of financials for A&O. Profit per equity partner (PEP) at the magic circle player jumped by 4% to £1.64 million, while revenues rose steadily to £1.57 billion. Net income hit £690 million, an uplift of 3%.

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48 Comments

Anonymous

So?

(3)(6)

PEPE

THICC

(0)(0)

Short sighted Erbert

Alan has ovaries and a Frankfurter?????

(1)(0)

Anonymous

I think they were top lawyers, not just senior.

(2)(1)

Anonymous

Surely A&O Cravath if this goes ahead

(1)(11)

Anonymous

Ahaha keep dreaming. Neither firm can afford the Cravath scale pre-merger, so why would the merger make any difference?

2nd rate firm + 2nd rate firm = larger 2nd rate firm

(30)(9)

Anonymous

Wrong. A&O and other white shoe firms have already matched Cravat scale.

(3)(9)

Anonymous

In the US… pretty sure anon at 10:57 was talking about UK pay.

(4)(0)

Anonymous

not in London they haven’t.

A&O isn’t a white shoe firm (it’s UK based)

(9)(0)

Anonymous

This post gave me aids.

(15)(2)

Irwin Mitchell don’t need to merge

I hear the management at DWF are fuming that this US law firm chose A&O.

All DWF wants is to be another Womble.

(8)(3)

Womble Bond Dickinson NQ

Stfu man, we’ve now got branded puffa vests and golf balls, we’re global!!!!

(18)(1)

SPB NQ

(1)(1)

Anonymous

They don’t even stock a Pattagucci fleece…

(3)(1)

Anonymous

How is Great Uncle Bulgaria these days?

(0)(1)

Anonymous

Most mergers involving UK and American firms have compliance issues due to restrictions over who is eligible to have ownership founded in regulations in the US.

(4)(0)

Irwin M. NQ

O’Melveny are scraping the barrel for merger partners, they must be mad that IM turned them down ruthlessly

(11)(2)

Anonymous

What’s IM?

(0)(2)

Anonymous

Information Memorandum

(5)(0)

A&O worried

Initial Margin

(0)(0)

I read through Clifford Chance's M&A Awareness microsite every day

It’s funny how OMM has managed to end up with a lower PEP than A&O

Says a lot about the quality of the firms involved …

(10)(2)

Allen Glusker LLP

A&O should merge with Greenberg Glusker, top firm.

(8)(1)

Anonymous

either that or Dechart or Dorsey

(3)(1)

Anonymous

A&O should stay as they are.

Mergers tend to be used to camouflage a lack of organic growth.

(14)(1)

Anonymous

in a business where the raw material is people’s time and the advice delivered is largely indistinguishable between the suppliers and where cilent relationships stick with people not the firm, the only you do grow fast enough to outpace inflation is to buy the growth or to join forces.

(0)(0)

Anonymous

CMS Cameron McKenna Nabarro Olswang O’Melveny Myers Allen & Overy LLP

(28)(1)

Anonymous

Seems like decent value.

(3)(0)

Anonymous

Wachtell, Lipton, Rosen, Slaughter and May.

(18)(1)

Anonymous

Once again, the PEP disparity renders this a complete non-starter

(13)(0)

Anonymous

Dorsey & Mitchell LLP

(2)(0)

Anonymous

Dechart Mitchell

(4)(0)

Anonymous

Dechart Dorsey & Boggs

(1)(0)

Anonymous

3 x shet still equals shet

(1)(0)

Marcel

Ouanqier

(0)(0)

OMM trainee

Couldn’t handle the pay cut 🙁

(2)(0)

anon

Don’t forget teh O’Melveny blog
http://brian-boyle-omelveny-torture-attorney.blogspot.com

(16)(0)

reader

This post has been removed because it breached Legal Cheek’s comments policy.

(0)(0)

Dick Edwards

*rubs eyes*

It has a post on the merger!

(0)(0)

Gross

This post has been removed because it breached Legal Cheek’s comments policy.

(0)(0)

Anonymous

That’s disgusting!

You can’t say that!!!

(0)(0)

Jay

Thanks for the link. Interesting blog.

(0)(0)

CMS Future Trainee

I think CMS is a better firm. Loads of offices.

(6)(2)

Anonymous

More offices = more money.

Oh wait….

(4)(0)

Anonymous

It does. More offices will probably mean more money, not necessarily more profit. Top top firm.

(1)(1)

Ritz - Waldorf merger when

Imagine being so poor and unprofitable that you have to meet at a Sofitel of all places

(7)(0)

Nonsense

Nonsense comments above.

(2)(2)

Anonymous

I was once a member of the sugababes

(1)(0)

Whitelocke

This post has been removed because it breached Legal Cheek’s comments policy.

(1)(0)

Comments are closed.

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