An announcement could come as early as this week, though the talks may still fail.
Weil, Gotshal & Manges is negotiating a merger with another, unnamed law firm, Bloomberg Law reports.
According to two people familiar with the situation, Weil’s leadership has told some practice group chiefs that the firm is negotiating a memorandum of understanding that sets out the terms of the combination, reporting that a broader announcement could come this week. They also cautioned that the talks might come to nothing.
Weil’s spokespeople did not immediately respond to Bloomberg’s request for comment. The firm is run by executive partner Barry Wolf, his successor Ramona Nee (pictured) and managing partner Jonathon Soler.
A month is a long time in BigLaw
The firm’s public position has changed quickly. In mid-September, there were reports that Weil was weighing its options, including a possible merger with a competitor. A spokesperson replied at the time that the firm “is not engaged in merger discussions with any firm.” As LawFuel pointed out then, that denial was carefully worded in the present tense.
The Weil Exits
The talks come as Weil braces for more departures. Michael Hickey, formerly co-managing partner of the corporate department, is expected to join Sullivan & Cromwell and other reports say that other practice group leaders have been talking with rivals too, which is not the news a major firm like Weil like to hear.
The merger talk began after corporate chair Michael Aiello (above) announced in September that he was leaving for Cravath, Swaine & Moore. Five other senior Weil partners went with him, including M&A co-head Matthew Gilroy. Before that, a handful of partners had left for Paul, Weiss and Simpson Thacher. Over the past decade, both of those firms have overtaken Weil on key financial metrics.
London has been hit as well. David Avery-Gee, Weil’s London co-managing partner, moved to Sullivan & Cromwell. London finance head Tom Richards is due to join Simpson Thacher. bloomberglaw
Weil has made some hires in the other direction. Last month it rehired Debra Sinclair, who left for Willkie Farr & Gallagher a decade ago, and brought in private equity veteran Peter Feist from Cravath.
Law firm merger negotiations are a delicate process. The longer they run, the more partner departures can disrupt them, and confidentiality is usually considered an essential ingredient. Once practice group chiefs have been briefed and the details have reached the press, Weil has limited time to close the deal.
