SNR Denton will abolish the joint chief executive position within three years of the anticipated merger between Denton Wilde Sapte and Sonnenschein Nath & Rosenthal, with Dentons CEO Howard Morris indicating that he could step aside.
Rawlinson’s Red Knights shelve Manchester Utd bid as price tag rises
June 2nd, 2010 by Legalweek No comments »Sofia Lind legalweek
The Red Knights – the group of City financiers which includes Freshfields Bruckhaus Deringer London corporate head Mark Rawlinson – have put their billion-pound bid for Manchester United on hold.
In a statement, the group said that it was only interested in purchasing the Premiership club at a “sensible” price after news recently emerged that the club’s current owners had rejected a £1.5bn offer from a Middle Eastern investor last year.
The Red Knights, which also includes Goldman Sachs chief economist and former Man Utd non-executive director Jim O’Neill, launched its bid for Man Utd in March, aiming to raise over £1bn from wealthy supporters of the football club in the business community.
However, Man Utd’s owners, the US-based Glazer family, have repeatedly said that the club is not for sale, reiterating in a new statement last week (28 May) that they would not entertain any offers. The Glazers’ business is private and they are not obliged to accept any offer they receive.
The Red Knights said that media speculation has driven the club’s price tag up.
The statement said: “As we have maintained…we will only attempt to purchase the club at a sensible price, consistent with the long-term interests of the club. Persistent speculation in the media of inflated valuation aspirations has made our goals less attainable, as potential investors have strongly reinforced our views that we should not move forward at a price uneconomic for the future of the club.”
The Red Knights met at Freshfields’ City headquarters in March for its initial strategy gathering. Other members of the group include: Keith Harris, the chairman of investment bank Seymour Pierce and former chief executive of HSBC Investment bank; Richard Hytner, the deputy chairman of Saatchi & Saatchi Worldwide; and Paul Marshall, the chairman of hedge fund Marshall Wace.
The Red Knights bid came amid dissatisfaction among Man Utd supporter groups about the level of debt the club has taken on during the Glazers’ tenure as owners.
Rawlinson ( pictured ), a Man Utd supporter, acted for the club on the Glazers’ £790m takeover in 2005, while Allen & Overy acted for the buyer and the banks instructed Latham & Watkins.
M&A advisers on alert as Panel announces review of takeover rules
June 2nd, 2010 by Legalweek No comments »Friederike Heine legalweek
The Takeover Panel has announced that it will review the UK’s rules on corporate acquisitions amid mounting political pressure to reduce the influence of short-term investors.
The move, which has been closely followed by City professionals, was welcomed by business secretary Vince Cable ( pictured ), who argued that short-term speculators such as hedge funds should not determine the outcome of corporate bids.
The consultation follows criticism of Kraft Foods’ £11.5bn acquisition of UK chocolate manufacturer Cadburys. The US company controversially failed to reverse Cadburys’ planned closure of its Somerdale factory, contradicting statements made during the bid process.
The Liberal Democrats had pledged in their general election manifesto to reform the UK’s takeover regime to introduce a public interest test and reforms to favour long-term shareholders over hedge funds.
However, it remains unclear whether the coalition Government will press ahead with major reform as the Conservative Party has previously been hostile to the notion of ushering in a less liberal rulebook for M&A.
Proposals to overhaul the UK’s takeover regime have generally been unpopular with M&A lawyers, who argue that the current rules have attracted investment to the UK. Many lawyers also argue that it will be difficult to separate short-term investors like hedge funds from institutional fund managers.
Nabarro corporate partner Iain Newman commented: “Most of the points raised come out of the political dissatisfaction with short-term investors and their perceived ability to deliver a target company into a [bidder's] hands in circumstances which politicians might view as contrary to the national interest.”
Areas the review will cover include the ‘50% plus one’ voting requirement for takeovers to go ahead, whether voting rights should be withheld from shares bought during an offer period and whether the 1% disclosure threshold for dealings and positions in target companies should be reduced. It will also review whether inducement fees and other deal protection arrangements should be restricted.
Norton Rose corporate partner Paul Whitelock told Legal Week : “While proposals around the acceptance threshold and voting disenfranchisement would appear the most far-reaching, market participants will no doubt feed in strong views on a number of areas, particularly in relation to the proposed timetable changes and potential reform of the ‘put up or shut up’ regime.”
Hogan Lovells corporate partner Nigel Read said: “The consultation paper features fundamental proposals which cannot be achieved unless they come in conjunction with changes to company law. However, they are right to take the line that they have – putting out issues for discussion rather than recommending specific changes.”
The consultation period will close on 27 July.
- Click here for the latest Legal Week Law briefings on mergers & acquisitions
Olswang posts strong profits recovery as PEP rises by 38%
June 2nd, 2010 by Legalweek No comments »Claire Ruckin legalweek
Olswang has become the latest firm to announce its 2009-10 financial results, reporting a 38% increase in profits per equity partner (PEP).
PEP rose to £420,000 in the last financial year, up from last year’s figure of £305,000.
Meanwhile, turnover at the UK top 50 firm increased by 2% to £91m, up from £89.2m in 2008-09.
Despite the jump in PEP, the figure is still significantly down on the firm’s 2007-08 figure, when partners took home an average of £545,000. In that year, the firm turned over £92.9m.
Olswang chief executive David Stewart ( pictured ) commented: “I am delighted with such strong results in what has been a challenging year. Despite the economic uncertainty, we have invested in our international network – we hired a 10-lawyer team from Freshfields Bruckhaus Deringer, and more announcements will follow.”
He added: “The increase in revenues is a result of our strategic focus and a sign of our strength. The results show an above-average increase in revenue and profits, which stands us in good stead for the future. Having weathered some tough times, we are in a good position to grow, and further international expansion is on the agenda.”
Ireland’s A&L Goodbody makes up five to partnership
June 2nd, 2010 by Legalweek No comments »Suzi Ring legalweek
A&L Goodbody has announced its annual promotions round with four of the five new partners made up in the firm’s Dublin base.
The number is an increase on last year’s figure when only one lawyer was made up to the partnership in the firm’s litigation and employment practice in Belfast.
The new partners in the law firm’s Dublin HQ are Paul Fahy in corporate tax, Kenan Furlong in litigation and dispute resolution, Alan Johnston in corporate and Niamh Ryan in investment funds. Louise Bailey joins the partnership in the banking and financial services practice in Belfast. The promotions were effective as of 1 June.
Julian Yarr, managing partner of A&L Goodbody, said: “The appointments reflect A&L Goodbody’s ongoing commitment, to provide the highest quality client service through the development and promotion of exceptional legal talent.”
The 330-lawyer firm has five offices in Dublin, Belfast, London, New York and Boston.
- Click here for Legal Week’s Republic of Ireland focus
Who will bring Israel to book over flotilla attack? | Daniel Machover
June 2nd, 2010 by Guardian No comments »This was almost certainly a breach of international law and Turkey has the right to take charge of a criminal investigation
Will the rule of law be applied to Israel this time? In principle, it is unlawful for a state to enforce a blockade against ships that are flying the flag of another state on the high seas. The only exceptions to this would be if the blockade were mandated by the UN security council acting under chapter VII of the . The basic principle under customary international law as regards ships in international waters was set out by the permanent court of international justice in the SS Lotus case (1927):
“… vessels on the high seas are subject to no authority except that of the state whose flag they fly. In virtue of the principle of the freedom of the seas, that is to say, the absence of any territorial sovereignty upon the high seas, no state may exercise any kind of jurisdiction over foreign vessels upon them.”
While international law does allow for exceptions to the above rule, entitling warships to interfere with ships flying the flag of another state while in international waters in limited circumstances, those exceptions do not apply to the events of 31 May . Indeed, a 1988 treaty (to which Israel is a party) criminalises the unlawful and intentional seizure or exercise of control over a ship by force, and all connected injuries or deaths.
If the Israeli boarding of the ship was illegal, then arguably the passengers were entitled to act in self-defence against the invading commandos. If so, they could use reasonable force to defend themselves, the amount of force permitted being determined by Turkish law.
And that is the point: it is clearly Turkish criminal law that can and should predominate from this point on. The Mavi Marmara is a Turkish-registered ship and was travelling peacefully in international waters when Israeli forces boarded it. At least one of the dead civilians is reportedly a Turkish citizen. The Turkish authorities have the absolute right to assert that their criminal justice system take sole charge of a criminal investigation.
Turkey is therefore perfectly entitled to demand that all evidence, including the identity of all Israeli naval and other forces, is handed over to its criminal justice authorities for a full investigation and that Israel allow Turkish law enforcement officials unimpeded access to the Israeli suspects. Israel is after all a party to the 1959 European convention on mutual assistance in criminal matters .
If Israel were to refuse, the UN security council, if concerned about a threat to international peace and security, could then back Turkish and international demands to this effect in a chapter VII resolution. The question therefore arises: will Turkey and the international community require Israel to comply with the rule of law on this occasion?
• Comments on this article may be closed earlier than usual or redirected to another thread
guardian.co.uk
© Guardian News & Media Limited 2010 | Use of this content is subject to our
Terms & Conditions
|
More Feeds
Benelux leader appoints new head and board member
June 2nd, 2010 by Legalweek No comments »Suzi Ring legalweek
Loyens & Loeff has elected Maarten van der Weijden as managing partner as Pim Bertels steps down after four years at the helm.
The firm has also re-elected its two executive board positions with van der Weijden taking over as chairman from Bertels, a position automatically held by the firm’s managing partner. Hamith Breedveld has been appointed as the second new member of the board as corporate partner Hendrik van Druten completes his two year term.
The role of managing partner runs for four years, while board appointments run for two. The remaining non-executive board elections are expected to be held in the coming weeks.
Van der Weijden has been a member of Loyens’ international tax practice since 1987 and made partner in 1997. He was the resident partner at the firm’s New York branch from 1996-1999. Breedveld has been a civil notary lawyer in the firm’s real estate practice since 2002.
Van Druten told Legal Week : “It is always a very careful practice to arrive at the right set of candidates and we are confident the right decisions have been made. The firm as a whole has faired better than average this year due to careful finance cutting from 2009 and the inherent strength of our combined tax and legal services.”
He added: “Although work in The Netherlands has not been excessive we have been taking a relatively big piece of it.”
Loyens has emerged as one of the more robust performer in the Dutch legal market during the downturn, with Loyens outperforming a number of rivals in the 2008 financial year.
NDA legal team grounded by Cumbrian shootings
June 2nd, 2010 by The Lawyer No comments »The legal department at the Nuclear Decommissioning Authority (NDA) is currently subject to a lock-in following news that a gunman has killed several people in and around Whitehaven in Cumbria, where the NDA is based.
NDA legal team grounded by Cumbrian shootings
June 2nd, 2010 by The Lawyer No comments »The legal department at the Nuclear Decommissioning Authority (NDA) is currently subject to a lock-in following news that a gunman has killed several people in and around Whitehaven in Cumbria, where the NDA is based.
A&O appoints new managing partner for German operation
June 2nd, 2010 by Legalweek No comments »Sofia Lind legalweek
Allen & Overy (A&O) has elected tax heavyweight Gottfried Breuninger as the firm’s new German managing partner.
Breuninger launched the magic circle firm’s Munich office in 2008 when he joined from Shearman & Sterling, where he headed up the Munich base as well as the German tax practice. He was also the co-head of the US firm’s international tax practice.
He will take over the role for a three-year term when current managing partner Peter Stenz’s tenure finishes at the end of this year. Frankfurt-based banking partner Stenz took on the role in 2007.
Breuninger will co-lead the German practice alongside its senior partner Neil Weiand, who started a three-year term in the role in January this year, replacing Cornelius Fischer-Zernin. It is the second term in the role for Weiand, who was also senior partner between 2004 and 2007.
Fischer-Zernin and Stenz both remain with A&O as full-time fee earners.
Breuninger was one of several Shearman partners to join A&O in 2008, alongside M&A partner Astrid Krueger in Munich, as well as Duesseldorf M&A partners Birgit Reese and Hans Rolf Koerfer – the German M&A rainmaker who joined Oppenhoff & Raedler in Cologne last year.
Breuninger’s practice focuses on national and international corporate tax law, in particular M&A transactions and post-acquisition structures.
A&O has German offices in Duesseldorff, Frankfurt, Hamburg, Mannheim and Munich.
