They might not admit it but behind closed doors partners can get pretty excited when one of their clients emerges as a takeover target. Of course, it is even better when they emerge as a potential acquirer. But while 2007 looks certain to generate a busy flow of unsolicited bids for juicy UK targets, lawyers will be hoping a few of the most recent flurry of M&A rumours come true this year. National firms, for example, could be in line to land some bumper deals. Just last week speculation has resurfaced surrounding long-term DLA Piper client JJB Sports. The sports retailer has been linked with numerous bidders and, after a strong set of results, is likely to garner buy-out interest. National rival Pinsent Masons may also be called upon to advise if there is a bid for its client Abbot Group. At the upper end of the market, Slaughter and May will be having mixed feelings about reports surrounding some of its key FTSE 100 clients. Cadbury Schweppes, Whitbread and Shire Pharmaceuticals have all been touted as takeover targets – a scary prospect for most firms, although Slaughters has a knack for coming out on top in these situations.
The financial performance of Linklaters client J Sainsbury could yet generate one hell of a deal if the long-mooted buy-out mega bid becomes a reality, while Freshfields Bruckhaus Deringer client Woolworths is once again the subject of takeover speculation. Freshfields advised Woolworths when Apax tabled a £780m bid for it in early 2005. It is worth watching Freshfields. If its performance over the last two years is anything to go by, the firm will provide fierce competition to rivals for mandates advising companies such as Alliance & Leicester, which is historically an Allen & Overy (A&O) client and is currently being sized up by foreign banks Freshfields has also made in-roads with another A&O client, ICI, and Slaughters client Invensys, both of which have long been touted as obvious targets. Better than the short-term joy of advising a target is getting in with the acquirer – a luxury often enjoyed by Clifford Chance’s ubiquitous buy-out team these days. Then again, even some of its clients in that area – 3i and PPM – are coming under the spotlight as possible targets. It seems in these takeover-crazy times that no-one is safe.
Out of the frying pan…
There cannot be many times when leaving SJ Berwin could be described as going from the frying pan into the fire, but rivals are already claiming that the three departing funds partners joining Kirkland & Ellis could be facing a heated transfer. The three partners – in particular the highly-rated Mark Mifsud – have over the years come in for some stick from the firm’s transactional practice, perhaps envious of the profile and investment that have made SJs’ funds team such a force in corporate private equity. Aside from sending SJs arch funds rival, CC, dancing round the room, the obvious question being asked regarding the move is how the team will slot into Kirkland. Despite their strong reputation, they could struggle to get their own way at the US firm’s expensively-expanded London office. Acquisition finance partner Stephen Gillespe, who joined from A&O last summer, does not mince his words, while former Linklaters private equity partners Graham White and Raymond McKeeve are certainly forthright characters. Nevertheless, if Kirkland can hold its newly-assembled team together, it will be able to say it has become the first US firm to establish an all-round sponsor team for top-tier work. The only question will be whether its fiery characters will be able to charm enough clients into using it.
Read more deal commentary in Deal Comment at www.legalweek.com/editorsblog
