Reed Smith is in merger talks with Chicago litigation and IP specialist Wildman Harrold in a deal that would create a 1,200-lawyer firm, Legal Week can reveal, in the latest merger bid to hit the consolidating US legal market.

Sources at Reed Smith confirmed the talks, which are at an early stage. A successful tie-up with the 215-lawyer Wildman would create a top 25 US firm in revenue terms with a fee income of more than $600m (£329m).