Coudert Brothers is facing the threatened loss of its profitable Munich arm to a US rival and calls to axe its Berlin branch amid signs of growing unrest within the US firm’s continental network.

Legal Week understands that Couderts’ three-partner Munich practice, which is well known for private equity work, is in talks to move to a rival firm which could be finalised as soon as this month, with Anglo-American firm Dechert viewed as the leading contender.