Clydes' merger talks with ailing US firm Sedgwick falter amid partner defections

Merger talks that could have seen UK insurance leader Clyde & Co play the role of White Knight to Sedgwick have faltered amid a spate of partner defections from the ailing US firm, according to sources close to the matter.

Three sources with knowledge of the discussions told Legal Week sibling title The American Lawyer that the pair had been in discussions for months about some kind of tie-up.

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<a href="http://www.almcms.com/contrib

Clyde

/uploads/sites/378/2016/07/clydes-botolph-web-Article-201607040704.jpg"><img class="aligncenter size-full wp-image-29412" src="http://www.almcms.com/contrib

Clyde

/uploads/sites/378/2016/07/clydes-botolph-web-Article-201607040704.jpg" alt="" width="616" height="372" /></a> Merger talks between UK insurance leader Clyde & Co and beleaguered US firm Sedgwick��have broken down. Partners close to the firms said the pair held active discussions about a union as recently as July and August, however these discussions are now understood to have ended. According to sources the decision to call off the talks relates to a spate of exits from Sedgwick, which has lost more than 30 partner in the last year and has closed offices in Washington DC; Austin, Texas; Fort Lauderdale, Florida; and Houston. Sedgwick has 11 offices in Chicago, Dallas, Kansas City, London, Los Angeles, Miami, New Jersey, New York, Orange County, San Francisco and Seattle. According to <em>ALM Intelligence</em> headcount has fallen 35% in the past year to below 180 lawyers. The firm��s revenue has dropped by 18% since 2013, from $208.5m (��157.5m) to $170.5m (��128.8m). One��City insurance partner said: "I heard about this in the summer. The talks were pretty far advanced I think,��at one point it was said there was going to be a merger and people were deciding what they were going to do. This week, UK insurance firm <a href="http://www.legalweek.com/sites/legalweek/2017/10/23/kennedys-takes-bermuda-based-sedgwick-office-as-part-of-continued-global-expansion/">Kennedys added Sedgwick's Bermudan operation Sedgwick Chudleigh to its global network</a>. The firm will now operate as Kennedys Chudleigh. Kennedys has also taken <a href="http://www.legalweek.com/sites/legalweek/2017/09/05/kennedys-secures-triple-new-york-partner-hire-from-struggling-us-firm-sedgwick/">six partners from Sedgwick in recent months</a>, including the firm��s New York managing partner John Blancett. Clydes has been ramping up its presence in the US - adding offices in <a href="http://www.legalweek.com/sites/legalweek/2017/07/24/clyde-co-opens-ninth-us-office-with-los-angeles-launch/">Los Angeles</a>,��<a href="http://www.legalweek.com/sites/legalweek/2017/01/30/clyde-co-recruits-10-partners-for-new-us-offices-in-washington-dc-and-chicago-2/">Washington DC</a> and <a href="http://www.legalweek.com/sites/legalweek/2017/01/30/clyde-co-recruits-10-partners-for-new-us-offices-in-washington-dc-and-chicago-2/">Chicago</a>��in the last year. The firm now has some 50 partners and 200 lawyers in the US, operating out of nine offices across Atlanta, Long Beach, Miami, New Jersey, New York, San Francisco, as well as those listed above. This year��Clydes��<a href="http://www.legalweek.com/sites/legalweek/2017/05/10/clyde-co-continues-americas-push-with-mexico-launch/">merged with Mexican law firm Garza Tello & Asociados in May</a>. The merger gives Clydes four partners and 23 lawyers in Mexico City, focusing on insurance, marine and energy law. <

Clyde

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Clydes' merger talks with ailing US firm Sedgwick falter amid partner defections

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