SJ Berwin's dreams of a San Francisco wedding were shattered this week when Orrick, Herrington & Sutcliffe ended the romance by bringing the merger talks to an end.
SJB's strong private equity focus meant that it was hit very hard by the credit crunch - its profits halved last year as its clients were no longer able to put deals together. However, a transatlantic merger would bring some greater balance to the firm and help it to secure some of the biggest international deals as the market recovers - and with Orrick keen to build its presence in London, the pillow talk began. Until they came to a sudden end this week when Orrick's chairman, Ralph Baxter, emailed his partners to say that the break-up was "based on our discussions to date", and added that "no one issue led to this decision, and we leave the process with great respect for SJ Berwin".
It that is a kick in the goolies for those SJB partners who championed the merger, it may be good news for those who value the firm's independent culture. Mid sized City firms have a history of disappearing up their own fundament whichget taken over by merge with big US outfits. Remember Gouldens (now Jones Day), Nicholson Graham & Jones (now K&L Gates) and Richards Butler (now Reed Smith)? History, the lot of them.
Despite the setback, SJB has been benefitting from the recent upturn: over the last few weeks it advised on Duke Street's disposal of Xfanity, the sale of Pantheon, and on CIC's £611m investment in Apax. No doubt many of its partners will feel its best bet now is to sit tight, concentrate on growing its current business and earn its way out of its recent setbacks.
SJ Berwin was sulking and wouldn't comment.
Tip Off ROF
SJB's strong private equity focus meant that it was hit very hard by the credit crunch - its profits halved last year as its clients were no longer able to put deals together. However, a transatlantic merger would bring some greater balance to the firm and help it to secure some of the biggest international deals as the market recovers - and with Orrick keen to build its presence in London, the pillow talk began. Until they came to a sudden end this week when Orrick's chairman, Ralph Baxter, emailed his partners to say that the break-up was "based on our discussions to date", and added that "no one issue led to this decision, and we leave the process with great respect for SJ Berwin".
It that is a kick in the goolies for those SJB partners who championed the merger, it may be good news for those who value the firm's independent culture. Mid sized City firms have a history of disappearing up their own fundament which
 |
A kick in the goolies yesterday |
Despite the setback, SJB has been benefitting from the recent upturn: over the last few weeks it advised on Duke Street's disposal of Xfanity, the sale of Pantheon, and on CIC's £611m investment in Apax. No doubt many of its partners will feel its best bet now is to sit tight, concentrate on growing its current business and earn its way out of its recent setbacks.
SJ Berwin was sulking and wouldn't comment.