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Former Merger Candidates Consider Heller Teams
The Recorder
September 22, 2008
The uncertain future may soon become clear for large parts of troubled Heller Ehrman.
In a 12:15 p.m. partner conference call on Thursday, firm management said they expected to hear whether former merger candidates Winston & Strawn, Baker & McKenzie and Mayer Brown would be interested in picking up large chunks of Heller's offices, practice groups or both. Management told the partners that they expected to hear back from the firms over "the next few days."
Charles Birenbaum, the managing partner of Winston & Strawn's San Francisco office, would only publicly confirm that his firm is in discussions with partners at Heller. Spokesmen from Mayer Brown and Baker & McKenzie would not comment.
The outlook for such discussions is uncertain, given that Heller partners are in high demand, said a source familiar with the situation.
"This is like throwing a piece of hamburger into a shark tank," the source said.
Heller offers a similar benefit to each of the three former merger candidates, which are all historically Chicago-based firms, said Meredith O'Neil of recruiting firm Major, Lindsey & Africa.
"Those three firms, in being as large as they are and as international as they are, could have stronger West Coast presences," said O'Neil, who is based in Chicago. Baker, Winston and Mayer all also have very strong litigation departments and were probably drawn by Heller's size in California, which could be used as a springboard to more work in Asia.
The firms also matched up relatively well in terms of profitability, O'Neil said. Baker and Heller reported profits per partner of $1 million in 2007, while Mayer and Winston reported profits of just over $1.2 million.
One legal recruiter, who asked not to be identified, said there are three main groups left at Heller: the Venture Law Group, the securities and antitrust lawyers and the insurance recovery group.
The VLG group would not be a great fit for any of the three main merger candidates, the recruiter said. That group would best fit with firms such as Latham & Watkins, Morrison & Foerster or Cooley Godward Kronish, "because they understand Valley emerging company practices, they're steeped in that kind of work, they're good at it."
The antitrust and securities group, on the other hand, would fit well with the merger candidates, "probably best at Winston, maybe Mayer," the recruiter said. The recruiter described hearing that the insurance recovery group has been talking to Howrey, a fit the recruiter said would make sense.
What Baker would offer was less clear, at least to that recruiter. "It's a great firm, but they don't have much outside an international tax practice in California," the recruiter said. "I'm not sure what Heller gets out of Baker other than a big sign over their heads."
On Wednesday, Heller partners were told that dissolution was among the options facing the firm and were given tacit approval to begin looking for work elsewhere. Some partners have already left the firm, while others, individually or in groups, have begun talks with a variety of firms.
Merger talks with Mayer Brown fell apart, and 14 intellectual property litigation shareholders announced they would be leaving Heller for Washington, D.C.'s Covington & Burling at the beginning of this week. A little over a month ago, discussions with Baker & McKenzie broke down due to conflicts, and talks with Winston & Strawn ended earlier in the year.
The recent talks between Mayer and Heller, which began days after Heller's talks with Baker ended in August, were the second attempt to combine the firms, according to The American Lawyer. Merger talks between the firms earlier this year were shelved because Mayer Brown management was leery of conflicts that might arise as a result of Heller's insurance recovery practice, which represents policyholders in coverage disputes with insurance companies. Mayer Brown represents insurance companies in a variety of litigation and corporate matters. The magazine cited one source who said any merger between Mayer Brown and Heller would exclude Heller's insurance recovery practice. Winston & Strawn, on the other hand, already has strength in that uncommon insurance policyholders practice area.
In a 12:15 p.m. partner conference call on Thursday, firm management said they expected to hear whether former merger candidates Winston & Strawn, Baker & McKenzie and Mayer Brown would be interested in picking up large chunks of Heller's offices, practice groups or both. Management told the partners that they expected to hear back from the firms over "the next few days."
Charles Birenbaum, the managing partner of Winston & Strawn's San Francisco office, would only publicly confirm that his firm is in discussions with partners at Heller. Spokesmen from Mayer Brown and Baker & McKenzie would not comment.
The outlook for such discussions is uncertain, given that Heller partners are in high demand, said a source familiar with the situation.
"This is like throwing a piece of hamburger into a shark tank," the source said.
Heller offers a similar benefit to each of the three former merger candidates, which are all historically Chicago-based firms, said Meredith O'Neil of recruiting firm Major, Lindsey & Africa.
"Those three firms, in being as large as they are and as international as they are, could have stronger West Coast presences," said O'Neil, who is based in Chicago. Baker, Winston and Mayer all also have very strong litigation departments and were probably drawn by Heller's size in California, which could be used as a springboard to more work in Asia.
The firms also matched up relatively well in terms of profitability, O'Neil said. Baker and Heller reported profits per partner of $1 million in 2007, while Mayer and Winston reported profits of just over $1.2 million.
One legal recruiter, who asked not to be identified, said there are three main groups left at Heller: the Venture Law Group, the securities and antitrust lawyers and the insurance recovery group.
The VLG group would not be a great fit for any of the three main merger candidates, the recruiter said. That group would best fit with firms such as Latham & Watkins, Morrison & Foerster or Cooley Godward Kronish, "because they understand Valley emerging company practices, they're steeped in that kind of work, they're good at it."
The antitrust and securities group, on the other hand, would fit well with the merger candidates, "probably best at Winston, maybe Mayer," the recruiter said. The recruiter described hearing that the insurance recovery group has been talking to Howrey, a fit the recruiter said would make sense.
What Baker would offer was less clear, at least to that recruiter. "It's a great firm, but they don't have much outside an international tax practice in California," the recruiter said. "I'm not sure what Heller gets out of Baker other than a big sign over their heads."
On Wednesday, Heller partners were told that dissolution was among the options facing the firm and were given tacit approval to begin looking for work elsewhere. Some partners have already left the firm, while others, individually or in groups, have begun talks with a variety of firms.
Merger talks with Mayer Brown fell apart, and 14 intellectual property litigation shareholders announced they would be leaving Heller for Washington, D.C.'s Covington & Burling at the beginning of this week. A little over a month ago, discussions with Baker & McKenzie broke down due to conflicts, and talks with Winston & Strawn ended earlier in the year.
The recent talks between Mayer and Heller, which began days after Heller's talks with Baker ended in August, were the second attempt to combine the firms, according to The American Lawyer. Merger talks between the firms earlier this year were shelved because Mayer Brown management was leery of conflicts that might arise as a result of Heller's insurance recovery practice, which represents policyholders in coverage disputes with insurance companies. Mayer Brown represents insurance companies in a variety of litigation and corporate matters. The magazine cited one source who said any merger between Mayer Brown and Heller would exclude Heller's insurance recovery practice. Winston & Strawn, on the other hand, already has strength in that uncommon insurance policyholders practice area.
