Proskauer Rose Law Firm is also named in an SEC Complaint and will one day NOT be protected by Andrew Cuomo and the Corrupt New York Courts and Proskauer Rose will pay Billions on Top of Billions for the 13 Trillion Dollar Technology Theft of the iViewit Technology.
New York Law Journal
November 15, 2010
Proskauer Rose and SJ Berwin said Friday they had decided against merging, putting to an end months of speculation about a possible trans-Atlantic tie-up between the two law firms.
The firms in a joint statement said they decided to end merger talks, which had become public in May. New York-based Proskauer and London-based SJ Berwin said "we recognized that the timetable necessary to reach the agreements that would ensure the successful integration of our firms is not workable at this time."
"Our discussions began on the basis of a longstanding and profound mutual respect founded on outstanding lawyering ability, "(INSERT VOMIT HERE)" a commitment to client service, and synergistic practice capabilities," the firms said in their statement. "Our discussions end with the same profound respect, and with the greatest admiration for all the partners we have met during the course of the process."
A spokesperson for Proskauer said the firm would have no further comment. Rob Day, the managing partner of SJ Berwin, did not return calls or answer an e-mail seeking comment. But he told Legal Week, a London-based legal publication, that to seal a deal would have taken "several more months" and "that would have meant too much uncertainty for both partnerships."
Proskauer's talks with SJ Berwin came at a time of renewed interest among law firms in international tie-ups. Squire, Sanders & Dempsey and British firm Hammonds agreed last week to merge, a little more than a month afterSonnenschein Nath & Rosenthals combined with UK-based Denton Wilde Sapte to become SNR Denton. Hogan & Hartson completed its merger with London's Lovells in May and is now known as Hogan Lovells.
Proskauer emerged as a potential partner for SJ Berwin in May after talks between the British firm and Orrick, Herrington & Sutcliffe ended. The Proskauer/SJ Berwin efforts may have been hampered by public knowledge of the negotiations, as leaks of the merger talks were reported on frequently, mostly in the British legal press.
"These things are probably easier done where they're negotiated privately," said Ward Bower, a consultant at Altman Weil Inc. who was not involved in the merger talks.
For the 663-lawyer Proskauer, a merger with SJ Berwin would have immediately jump-started its efforts to expand in London and abroad. SJ Berwin has about 165 partners and more than 400 other lawyers in 12 offices in Europe, the Middle East and East Asia.
SJ Berwin began the search for a merger partner following financial declines. The firm, known for its work in real estate and private equity, saw profits per partner drop 49 percent to £410,000 ($661,475) in its 2008-09 fiscal year, which ends in April. Revenue during that period meanwhile fell 14 percent to £184 million ($296 million).
SJ Berwin's revenue fell another 7 percent in its most recent fiscal year, with the books closing on April 30 with £171 million ($276 million) in revenue. Its profits per partner meanwhile improved to £447,000 ($721,440), up 9 percent.
The London firm's finances have shown more improvement since then. Revenue for the first half of the fiscal year was up 9 percent to £87 million ($140 million), the firm announced separately on Friday, while its profits were up 34 percent, the firm said.
"This is a strong performance which marks a significant step in our financial recovery," Mr. Day said in a statement. "We expect to maintain growth in revenue and profit in the second half of this financial year."
Still, a profitability gap would have existed with Proskauer, the stronger of the two firms financially. The New York firm reported $643 million in revenue for 2009, up 1.5 percent. Profits per partner at Proskauer climbed 6.6 percent to $1.45 million.
Mr. Day acknowledged to Legal Week on Friday that disparities in profitability "no doubt makes it more difficult" to do a merger. But he added that "there are various ways of dealing with and getting around that issue."
Mr. Bower in an interview suggested the two could have organized as a Swiss verein, an increasingly popular legal structure for cross-border mergers that creates an association of member law firms under the one umbrella but each firm has separate partnerships and profit pools.
SJ Berwin had also experienced partner departures while merger talks dragged on. A four-partner real estate team, including practice group head Jon Vivian, left for UK-based Irwin Mitchell in September. Another real estate partner, Michael Metlis, this month left for London's Berwin Leighton Paisner. Niamh Grogan, a partner in SJ Berwin's competition practice, also left this month, joining Lloyds Banking Group.
In the midst of merger discussions, both firms also went through leadership changes. Proskauer partners in October elected Joseph M. Leccese to succeedAllen I. Fagin as the chairman in January. SJ Berwin, also last month, chose a new managing partner, Mr. Day, after Ralph Cohen in August said he would step down after more than eight years as the firm's head.
Proskauer and SJ Berwin in their statement said they were halting merger talks "with considerable regret." The firms said that they "look forward to continued cooperation between our firms for the benefit of our clients." A spokesman for SJ Berwin said that would include a non-exclusive referral agreement.
@|Nate Raymond can be reached at nraymond@alm.com. "
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