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  • March 2, 2009 |

    Davis Polk leads a raft of firms on $50bn Citi recap

    Government-backed recapitalization of Citigroup in the latest of a string of deals to refinance struggling banking giants.The complex deal agreed with the Treasury Department will increase the Government's stake in Citi to as much as 36%. The deal sees up to $27.5bn (£19bn) in preference shares converted into common stock, which the Government, which owns $45bn (£31.25bn) in Citi preference shares, will match up to $25bn (£17.3bn) of conversions.Davis Polk is advising Citi and negotiating with the private investors, a group that includes Capital Research Global Investors and Capital World Investors, the Government of Singapore Investment Corp (Singapore's sovereign wealth fund) and the Saudi prince Alwaleed bin Talal. The Kuwait Investment Authority also plans to participate in the exchange, according to several lawyers involved in the talks.The Davis Polk team consists of Randall Guynn, M&A partners Gar Bason, Louis Goldberg and Michael Davis and tax partners Avishai Shachar and Neil Barr.Cleary Gottlieb Steen & Hamilton advised Citi on drafting the various securities agreements, a complicated task considering there are all sorts of contingency agreements should Citi shareholders vote down the exchange plan.Simpson Thacher & Barlett is advising the Treasury.Investor's counsel include Hogan & Hartson for bin Talal, a loyal Hogan client since before the first Persian Gulf War, according to Hogan partner Bruce Gilchrist. The prince's holdings illustrate the complications of the deal. He holds both preferred and common shares, meaning the exchange he agreed to may end up diluting the value of common stock he already owns, lawyers say.Several sources say Gibson Dunn & Crutcher advised the Kuwaiti authority, but Steven Guynn, who advised the authority in its initial $3bn (£2.1bn) investment in Citi preferred stock last year, declined comment.Sidley Austin reprised its role advising Singapore's sovereign wealth fund. Sidley has been representing the fund in various investments for more than 15 years.The Capital Group relied on in-house counsel, says Andrew Felner, the deputy GC for Citi who handled much of the internal work on the exchange plan.Citi's shares dropped about 40% upon the deal's announcement, mostly over fears that the exchange will dilute the value of common shares. Citi, which lost about $28bn (£19.4bn) last year, also agreed to eliminate the dividend on preferred stock and re-jig its board of directors so that a majority of directors are new and independent.Cleary will also be handling Citi's disclosure work and filings with federal regulators. Partners David Lopez, Neil Whoriskey and Jeff Karpf are leading the firm's team.

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  • February 18, 2009 |

    Nabarro and Jones Day act on £587m shopping centre sale

    Nabarro and Jones Day have advised on British Land's sale of 50% of its stake in Sheffield's Meadowhall shopping centre for £587.7m. The deal saw British Land turn to Jones Day for advice as it set up a 50:50 joint venture partnership for the freehold interest in Meadowhall with London & Stamford Property and an uni-dentified joint venture partner. The firm's co-head of real estate, David Roberts, and corporate partner Giles Elliott took lead roles on the transaction, which values Meadowhall at £1.175bn, with the purchase price including a £170m cash consideration.

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  • February 6, 2009 |

    Gibson Dunn posts 5.4% revenue rise for 2008

    Gibson Dunn & Crutcher has recorded a 5.4% revenue increase for 2008, taking the firm's total turnover to $957m (£648m), reports The Am Law Daily. The US firm's profits per partner declined by 1.3% to $1.9m (£1.3m), while revenue per lawyer dropped 4.3% to $1m (£677,000).Gibson Dunn chairman Kenneth Doran commented: "All in all, given what is happening in the market, I am very pleased with our results. It reflects the strength of the firm."Doran cited the firm's commitment to maintaining a diverse practice mix as a key driver of the firm's strength. While admitting that there has been "some pressure" with regards to transactional work, Doran says other practice areas, such as antitrust and intellectual property litigation, have been "extremely engaged."

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  • January 22, 2009 |

    Asian newcomers size up an uncertain market

    The jet lag flying from New York to Hong Kong is bad enough for a solo traveller. For a family with two young children in tow, it is an absolute killer."We slept through the night last night," says Yash Rana, sitting in his office in the IM Pei-designed Bank of China Tower less than a week after the fateful flight. "That was a treat."Rana has moved his family halfway around the world so he can take charge of Goodwin Procter's new Hong Kong office, which opened in November to become the Boston-based law firm's first overseas location.

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  • January 13, 2009 |

    O'Melveny bankruptcy co-chair quits for Dechert

    Michael Sage, the co-head of restructuring at O'Melveny & Myers, has joined Dechert in the latest in a series of high-profile moves in the bankruptcy Bar. Sage primarily represents creditors in bankruptcies and out-of-court restructurings, including acting on the Chapter 11 proceedings for Refco and Ziff Davis Media. He bills $895 (£610) an hour, according to an August filing in the Ziff Davis bankruptcy, which earned O'Melveny nearly $1.02m (£695,000) in fees.Sage said: "Dechert provides me a wonderful opportunity to combine my practice and things I like to do and am good at with what the firm does."

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  • January 5, 2009 |

    Heller files for Chapter 11 bankruptcy protection

    Defunct US firm Heller Ehrman has filed for Chapter 11 bankruptcy protection, writes Legal Week sister title The Recorder. The move, filed on 28 December, puts a stay on at least five suits filed against the firm since it announced on 26 September that it would dissolve.According to a memo sent from the firm's dissolution committee to former Heller employees, the decision to file for bankruptcy protection was driven by its San Francisco landlord, 333 Bush Associates, which sought and received a writ of attachment on 19 December, making it a secured creditor to the tune of $48m (£33m). A lack of co-operation from the firm's banks, Bank of America and Citibank, was also blamed.

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  • December 10, 2008 |

    Behind the veil

    On Monday, January 21, 2008, back when extreme stock volatility was still a novelty, world equity markets plunged 6% with no full explanation apparent. Then, on Thursday, the mystery abated when at least a partial explanation for the sell-off appeared. The French bank Societe Generale (Soc Gen) announced that a young trader named Jerome Kerviel had somehow, without the bank noticing, bet A50bn that stock markets would rise. Soc Gen had spent the past few days desperately selling his positions - and set a new standard for rogue trading losses at A6.4bn. Hit by scandal and a potential legal mess, Soc Gen did what plenty of other rich and powerful French institutions would do in such a situation: It hired Jean Veil.

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  • December 3, 2008 |

    Shearman, Debevoise and Gibson Dunn brave market to advise on $800m LBO

    Shearman & Sterling, Gibson Dunn & Crutcher and Debevoise & Plimpton have taken roles on a leveraged buyout worth $800m (£664m). The deal, which included $600m (£498m) finance, saw Gibson Dunn corporate partner Paul Harter advise Investcorp and Barclays Private Equity, with NCTM handling Italian M&A aspects of the deal, which saw the acquisition of N&W Global Vending.Shearman's London office advised Investcorp and Barclays Private Equity on raising the debt to fund the acquisition, one of the largest leveraged buyouts of 2008.

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  • November 9, 2008 |

    Obama looks to Am Law 100 firms for best and brightest

    While most of the speculation surrounding possible appointments by President-elect Obama focuses on the treasury secretary and attorney and solicitor general,…

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  • October 31, 2008 |

    Dechert secures trophy hire of Heller chairman

    Dechert has sealed the high-profile hire of Matthew Larrabee, the chairman of dissolved US firm Heller Ehrman. Larrabee, who joins Dechert as a partner in the firm's San Francisco office, had chaired Heller for three years since taking over from insurance partner Barry Levin in March 2005.Larrabee said he was drawn to Dechert's litigation practice, commenting: "Dechert's litigation practice is recognised as one of the best in the country. I have had the privilege of knowing and working with many of Dechert's trial lawyers and I feel fortunate to be joining such an outstanding team."

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