Dentons and Squire Sanders mull over transatlantic tie-up

Squire Sanders & Dempsey has held merger discussions with Denton Wilde Sapte, it has emerged, as the top 100 US law firm continues its search for a transatlantic tie-up.

The two firms have held discussions regarding a merger at management level with expectations a deal could be put together this autumn if the talks proceed well. The proposed union has not yet been generally discussed at partner level within Dentons, as the talks are at relatively early stages.

Dentons has been looking to broaden its coverage in emerging markets while Squire Sanders is looking to widen its UK and European capabilities.

Dentons chief executive Howard Morris declined to comment on Squire Sanders, stating that the firm's policy is not to discuss any merger discussions it holds.

Morris did, however, concede that Dentons remained open-minded regarding potential US tie-ups, commenting: "I think we would consider a merger proposal if we thought it would help us achieve our goals."

Morris characterised the firm's goals as building up its practices in its four core sectors and further expanding in key emerging markets.

Morris also stated that it would be challenging to secure a merger in current market conditions and stressed that no deal was imminent.

Other Dentons partners said it was unclear if the talks would proceed to a vote as Dentons has held discussions with a number of firms in recent years.

A tie-up with Squire Sanders would offer Dentons access to the US firm's well-regarded central and eastern European network, while the combined revenues of the two firms would be in excess of £500m.

Squire Sanders, which last year had 860 lawyers and 160 equity partners, saw turnover for 2008 of $579.5m (£356m), a 9.2% increase on the previous year, while profits per equity partner (PEP) stood at $785,000 (£483,000).

Earlier this week Dentons announced its financial results for 2008-2009 with turnover rising by 3% from £164.4m to £169.8m. PEP, meanwhile, fell by 36% to £300,000 from £470,000. Dentons' profitability was impacted by a £3.5m exceptional cost related to its redundancy programme earlier this year.

Dentons has 12 offices across the UK, European and CIS while Squire Sanders has 32 offices, including 15 in the US. Both have additional associations.

Squire Sanders has in previous years explored a number of merger deals that would have substantially expanded its international footprint, including in 2004 holding prolonged talks with the now-defunct practice Coudert Brothers.

Squire Sanders was not available for comment.