If the M&A world is proving unsurprisingly turbulent right now, a very select band of law firms have become highly adept at riding the hurricanes of international deal markets. Bids may be collapsing on funding problems, and the
And none more so than Linklaters, which was already riding high in the rankings on the back of its lead role on the €144bn BHP Billiton/Rio Tinto bid and Q2’s largest deal: InBev’s takeover of rival drinks firm Anheuser-Busch.
With Linklaters proving an all-pervading presence during a third quarter defined by the global banking crisis, the firm has built on its H1 showing to actually post a higher deal value in the three months to October than in Q1 or Q2 despite the generally busier conditions of the first six months of 2008.
With Linklaters securing a string of mandates in the wake of Lehman Brothers’ shock bankruptcy, including this week’s lead role on BNP Paribas’ €14.5bn (£11.2bn) takeover of Fortis, a year that looked set to be defined by a handful of large commodities deals now looks like the year of the crunch-related fire-sale.
It must be a sweet result for Linklaters after the breadth of its financial institution client-base contributed to its painful black-balling this year by JPMorgan when it became involved in litigation against the bank. Of course, this positioning has now helped the firm land so many deals in a convulsing banking sector.
Elsewhere, Allen & Overy maintains a good showing, ranking second in Mergermarket on announced European M&A, with 142 deals totalling €308bn — not that far behind Linklaters’ tally of €342.9.9bn. Clifford Chance and Freshfields Bruckhaus Deringer have, by their standards, been less visible though judged on the more reliable volume measures they have kept pace with their big four rivals. Freshfields also chalked up the most ranked deals in
Further down the pecking order, a gulf opens up after the big four. White & Case, Baker & McKenzie and the Herbert Smith/Stibbe/Gleiss Lutz grouping score well, while Slaughter and May has managed to secure a more-than-credible flow of big-ticket work, though its ranking is heavily reliant on Rio/BHP.
Overview
Despite the general gloom, judged against recent years, global M&A has held up better than some expected, while obviously seeing considerable falls from the boom year of 2007.
Nevertheless, deal activity judged by volume fell notably in the third quarter compared with the first half of the year, though deal values have risen, thanks in part to the size of a handful of banking deals. And
These numbers are backed up by talking to the firms with larger City practices which are obviously more upbeat than mid-tier rivals. Still, it is debateable whether confidence will remain hardy at top tier firms. Current turmoil is causing a lot of bids to be abandoned and the run of consolidation in the energy and commodities sectors is felt to have largely run its course. But, so far, the global firm model is proving its worth in difficult times.
Keep abreast of all the latest post-Lehman developments in our Legal Week Wiki special.
