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  • Philadelphia-based Morgan, Lewis & Bockius LLP is set to face legal action in Indonesia related to its office there and the hiring of a new partner for the firm. A leading Jakarta firm, Makarim & Taira S, is preparing to sue the US firm because it claims the firm's Jakarta office, PT ML&B Indonesia, operates outside the regime for foreign legal firms. Makarim & Taira is also preparing to sue the laterally hired partner. The moves put at risk Morgan Lewis's estimated US$5 million in billings for Indonesian matters. In January 1998 Morgan Lewis offered a partnership in its international section to Michael Hooton, a New York-qualified Canadian national who was working as a foreign legal consultant at Makarim & Taira. Hooton is due to join the firm shortly.
  • The Netherlands has produced plans for a special court to rule on disputes over corporate control. This marks the first step to dismantling anti-takeover devices. By Christian Huiskes of Derks.Star Busmann.Hanotiau, Utrecht
  • US securities authorities are issuing guidance for broker-dealers on the use of new technology in their business. This article summarizes that guidance in five key areas. By Morris Simkin of Winston & Strawn, New York
  • A common belief is that privatization is nearing an end in Poland as the market matures. Stephen Mulrenan discovers that opportunities still exist in this sector, as well as now in many others
  • • New York-based Cadwalader, Wickersham & Taft has added a further six solicitors to its London office. James Roome, formerly a corporate insolvency partner at Simmons & Simmons, becomes a partner; the other five are at the associate level. They are Yvette Croucher (formerly of Simmons & Simmons), Linda Davies (from Norton Rose), Richard East (from Baker & McKenzie), Seamus Gray (insolvency; from Bannister's) and Sarah Squires (capital markets and tax; from Linklaters & Paines). The total number of solicitors signed up to the firm is now 16.
  • UK companies Glaxo Wellcome and SmithKline Beecham are planning a £100 billion merger (US$60 billion) which will create the world's biggest drugs manufacturer and the world's third largest company after General Electric and Royal Dutch/Shell. The news follows the rumours surrounding a possible merger between SmithKline Beecham and American Home Products, now abandoned. UK firm Slaughter and May and US firm Sullivan & Cromwell are representing Glaxo Wellcome. Slaughter & May's corporate partners Glen James, Michael Pescod and Robert Stern worked with competition partners Michael Nicholson, Laura Carstensen and tax partner Howard Nowlan on the deal. Sullivan & Cromwell partner Ben Stapleton worked on M&A issues out of the New York office, assisted by London partners William Plapinger (securities) and Robert Osgood (antitrust).
  • Eurotunnel has restructured its debt through a four-tranche bond issue, totalling £5 billion. The issue includes a £1 billion convertible bond, swapping debt for equity. It is over two years since the company declared a moritorium on interest payments. The deal, which was the largest ever private sector corporate workout, involved a syndicate of almost 200 banks. UK firm Linklaters is advising the four agent banks for the syndicate (NatWest, Credit Lyonnais, Midland and BNP) on English, French and US law. Rambaud Martel is acting as special French counsel to the banks. UK firm Herbert Smith advises Eurotunnel alongside Darrois Villey Maillot Brochier, the local counsel.
  • The UK's system of distinguishing levels of barristers should be disbanded, according to a report published by free market think-tank, the Adam Smith Institute. Its author, Peter Reeves, criticizes the system of Queen's Counsels (QCs or silks) as being costly and misleading. The radical proposal follows recent criticism made by the Lord Chancellor, Lord Irvine, about top commercial barristers charging excessive fees.
  • UK firm Linklaters & Paines is extending its Asian practice by opening an office in Bangkok. The office, which opened in January, complements Linklaters' other Asian offices in Singapore, Tokyo and Hong Kong. Unlike other countries in south-east Asia, Thai bar rules enable foreign firms to employ local lawyers. Three lawyers have been taken on as partners to join managing partner Chris King. They join Linklaters from Thai firm International Legal Counsellors.
  • For the second time, the Swedish Bar Association has forced Wahlin Adokatbyra to dismantle its links with big six firm KPMG. Wahlin, a firm created in 1997 as an associate law firm of the professional services giant, must abandon the cooperation agreements between the two firms or face being disbarred with immediate effect. Name partner Tryggve Wahlin says: "The Bar came to the conclusion that these agreements were not consistent with the independence of the professional lawyers in Sweden. I can accept that reason because I think that is important too, but I don't think our agreements were in conflict with it."