RollOnFriday can reveal that the faltering relationship between Olswang and its American ally Greenberg Traurig had been a financial flop for Olswang.

On Monday the news broke that the US firm would be setting up its own London office, after bagging the former co-vice chairman of Mayer Brown, Paul Maher, and two other former Mayer Brown partners. The legal press reported that Greenberg Traurig had "ditched" Olswang, and Maher was quoted extensively as he outlined his vision of a "21st Century law firm" (which RollOnFriday analysts believe is a reference to new billing practices and the ability to receive funding from third parties, rather than to staff wearing silver suits as genetically-engineered junior lawyers are raised in giant undersea laboratories).

But is this really a bold move by Greenberg - or a desperate final throw of the dice? RollOnFriday can reveal that Olswang’s Managing Partner, David Stewart emailed all staff yesterday to say that referrals from the US firm had “represented less than 2% of our annual revenue”, and he was very happy for Greenberg Traurig to set up its own shop.

 

So a major strategic alliance generating just 2% of turnover? By any measure, that's a failure - and a confirmation of doubts that were expressed when Olswang originally announced the alliance four years ago. It was never clear how a niche media and real estate outfit could profit from working with a firm which, despite having dozens of domestic offices, is a long way from the first division in the States and virtually unheard of outside it.

 

Still, hats off to Greenberg Traurig for milking what's left of the relationship for all it's worth. Insiders have told RollOnFriday that when it informed Olswang of the hires it asked if they could all camp out in the firm’s Holborn offices.
 

Paul Maher looking for a home yesterday

Maher himself was touted around the City, was in talks with several of the grandest firms and was known to have a huge client following. So it's not entirely clear why he's ended up at the US equivalent of Eversheds - although it's just possible that a massive pile of wonga is part of the reason, and cynics might suggest that GT had little to lose by trying a new business model that happened to fit Maher's personal ambitions. 

A spokesman for Olswang refused to comment.