Links and CC win roles on £5bn GDF deal as M&A activity bursts into life

Hopes of sustained deal revival rise as a string of companies put together big ticket deals

Linklaters and Clifford Chance (CC) have lined up to advise on the £5bn reverse takeover of International Power by French utility business GDF Suez as the M&A market last week burst into life.

CC is acting for longstanding client International Power, fielding a team under corporate partners David Pudge and Brendan Moylan and banking partner Andrew Grenville.

Linklaters was brought on board for GDF Suez, with London-based corporate partner Matthew Middleditch advising. French leader Bredin Prat is acting as local counsel for the utility giant, with corporate partners Patrick Dziewolski and Matthieu Pouchepadass heading up the team.

The news comes amid a pre-summer flurry of corporate activity in the City, which many partners see as a sign that business confidence is returning.

The magic circle in particular has enjoyed a strong run after securing roles on a number of large recent deals. Last week's £2.5bn sale of Durex manufacturer SSL to cleaning products group Reckitt Benckiser saw Slaughter and May, Allen & Overy (A&O) and CC all instructed.

CC was also this month brought in to advise Birds Eye Iglo on its acquisition of Unilever's Italian frozen foods business Findus Italy, alongside Slaughters.

Linklaters global head of banking Robert Elliott (pictured) commented: "The recent flurry of corporate activity seems to be more substantive than a mere flash in the pan. If you add together the exchange rate, the continuing deleveraging in the financial system and the slow emergence of the UK from the recession, you have an explanation for the increased level of M&A activity in the last quarter and an indication that such activity might be sustained."

Emerson Electric's £997m bid for FTSE 250 power company Chloride Group handed Slaughters a role for Emerson, acting opposite Ashurst which was brought in for Chloride.

A&O UK head of corporate Richard Browne said: "A number of recent deals have been transactions which were seriously considered at some point in the last couple of years but put on hold. The price expectations of buyers and sellers have become closer as people get more comfortable with where we are in the cycle and chief executives look for ways to grow earnings other than by cutting costs."

Slaughters corporate finance partner Gary Eaborn added: "Although since the financial crisis large deals have been few and far between, corporates have proceeded to do small to medium sized deals and there are some signs of increased private equity activity in Europe. In the very short term, there has been a rush to get deals done before the summer."

Additional reporting by Suzanna Ring.