This time last year, this column made a few predictions about how 2007 would pan out. Its conclusion – that liberal use of cheap debt could soon prick the M&A bubble – turned out to be pretty close to the mark.
Certainly, 2008 looks less rosy from a deal lawyer’s perspective, even if the legal industry is nothing like as exposed as its banking counterpart. Still, for the time being at least, activity remains reasonable. The rescue of Northern Rock will generate plenty more fees for most of the magic circle while two major deals could also turn hostile in the coming months. These are BHP Billiton’s £67bn bid for Rio Tinto, on which Slaughter and May and
Linklaters are advising, and the approach for Scottish & Newcastle by drinks rivals Carlsberg and Heineken. Linklaters is advising Scottish & Newcastle, while Norton Rose is acting for Carlsberg and Allen & Overy (A&O) for Heineken.
