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(Steve Hickey)

Dentons is no longer talking to King & Wood Mallesons’ (KWM) European management about a potential deal to take over its distressed European and Middle East (EUME) business.

Dentons was revealed as being interested in KWM EUME a fortnight ago.

A source close to Dentons said that the international firm informed KWM last week that it was no longer considering acquiring a large portion of its distressed EUME business.

Other firms that have been interested in taking on parts of KWM Europe include Winston & Strawn and KWM’s own Asian arm. DLA Piper and Greenberg Traurig are also understood to have been interested in certain partners and teams.

Last Friday (9 November) KWM EUME announced that it had received “a number” of purchase offers and that these are now under review.

It is understood the business is aiming to secure deals by the end of this week.

In the statement, the firm said: “King & Wood Mallesons EUME is pleased to confirm that it has received a number of indicative purchase offers. The management team and its financial advisers have reviewed these and are now entering into detailed discussions with a small number of parties.”

It added: “This is a significant step forward for King & Wood Mallesons EUME but, as you would expect, the firm will not be commenting further given the confidential nature of these important discussions. A further announcement will be made once discussions have been completed.”

Last week sources at the firm told Legal Week that the EUME business is heading for a pre-pack administration, with negotiations already at an advanced stage.

Legal Week also revealed that KWM has updated its partnership deed to ensure that any tax losses are split fairly between current and former partners in the event of collapse.

The partnership is understood to have voted in the change earlier this month.

Issues for KWM’s Europe branch came to a head in late October following the resignation of four high profile London partners, including former managing partner Rob Day and UK funds head Michael Halford, who are joining Proskauer Rose and Goodwin Procter respectively.

The exits forced the firm to put its recapitalisation plans on hold to reassess its financial situation, prompting a revised proposal with an additional bailout from Asia, subject to European commitment.

Dentons declined to comment. KWM has declined to comment on specific firms involved in the process.

Copyright Legal Week. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

 

Dentons is no longer talking to King & Wood Mallesons ’ (KWM) European management about a potential deal to take over its distressed European and Middle East (EUME) business.

Dentons was revealed as being interested in KWM EUME a fortnight ago.

A source close to Dentons said that the international firm informed KWM last week that it was no longer considering acquiring a large portion of its distressed EUME business.

Other firms that have been interested in taking on parts of KWM Europe include Winston & Strawn and KWM’s own Asian arm. DLA Piper and Greenberg Traurig are also understood to have been interested in certain partners and teams.

Last Friday (9 November) KWM EUME announced that it had received “a number” of purchase offers and that these are now under review.

It is understood the business is aiming to secure deals by the end of this week.

In the statement, the firm said: “ King & Wood Mallesons EUME is pleased to confirm that it has received a number of indicative purchase offers. The management team and its financial advisers have reviewed these and are now entering into detailed discussions with a small number of parties.”

It added: “This is a significant step forward for King & Wood Mallesons EUME but, as you would expect, the firm will not be commenting further given the confidential nature of these important discussions. A further announcement will be made once discussions have been completed.”

Last week sources at the firm told Legal Week that the EUME business is heading for a pre-pack administration, with negotiations already at an advanced stage.

Legal Week also revealed that KWM has updated its partnership deed to ensure that any tax losses are split fairly between current and former partners in the event of collapse.

The partnership is understood to have voted in the change earlier this month.

Issues for KWM’s Europe branch came to a head in late October following the resignation of four high profile London partners, including former managing partner Rob Day and UK funds head Michael Halford, who are joining Proskauer Rose and Goodwin Procter respectively.

The exits forced the firm to put its recapitalisation plans on hold to reassess its financial situation, prompting a revised proposal with an additional bailout from Asia, subject to European commitment.

Dentons declined to comment. KWM has declined to comment on specific firms involved in the process.

Copyright Legal Week. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

 

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