Skadden ends exclusive Chiomenti alliance

Skadden Arps Slate Meagher & Flom has ended its exclusive strategic alliance with Italian 'best friend' firm Chiomenti after seven years.

The two firms said that the mutual decision was based on changes in client needs.

The pair will continue to work together on a non-exclusive basis, referring work to other firms.

A statement from Skadden said: "While the firms will continue to work together in a close professional relationship, both firms have agreed to do so on a non-exclusive basis. The change to the relationship reflects the changing nature of cross-border legal practice and is in response to client needs."

Skadden has continental European offices in Munich, Frankfurt and Paris in addition to its City base, but has never had a base in Italy - instead relying on its relationship with Chiomenti.

London-based Chiomenti banking partner Carola Antonini told Legal Week: "The motivation is that we believe that the legal market has changed a lot and many of our clients require us to work with other international law firms - I believe the same thing happened to Skadden. In the current market situation, the best thing is to have best friends rather than an exclusive alliance, but we will continue to work together a lot."

News of the split comes after White & Case earlier this week became one of the first major law firms to announce it is pulling out of the Italian market. It is planning to close its Milan office next month having already axed its Rome and Turin bases in 2005.

Commenting on Skadden and Chiomenti's separation, a partner with a rival Italian firm commented: "I always wondered what kind of sense that relationship made from a strategic standpoint. You cannot expect to run your Italian operations through one such an established firm... What they have done now makes much more sense to me.

"I doubt that Skadden would open in Italy on its own in this climate. This is a time for consolidation rather than expansion."

Earlier this year, Chiomenti secured a merger with Italian firm Birindelli & Associati, handing it a major boost in the Chinese market. The two firms combined under the Chiomenti banner this May, with the takeover of Birindelli's offices in Shanghai, Hong Kong, Beijing, Singapore, Hanoi and Pyongyang.

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