Ashurst trans-Atlantic merger deal collapses

Top City firm Ashurst Morris Crisp is showing a brave face after the collapse of transatlantic merger talks with US firm Latham & Watkins.The talks broke down over profitability.

Latham & Watkins has an annual revenue of $502 million (235million) - more than all the top City firms except Clifford Chance.

It also boasts high profits per partner.

Ashursts' managing partner, Ian Nisse said: 'We are still open-minded about the opportunities.

Early indications show that our revenues have increased by 24% in the last year, with a healthy increase in profits as well.'People here are prepared to embrace change but only if they are really comfortable that they will do a real merger and not fold into another firm's system...

We'll keep an eye on the US and if opportunities arise, we will go for it.'The two firms have been in serious talks since February after initial soundings between their respective managing partners.

But Mr Nisse said the partners had not put the issue to a vote.

'It never went that far,' he said.

Mr Nisse acknowledged that the firm's strong London focus was a sticking point.

He said: 'If this deal had gone ahead, London would be the biggest office in the firm.' Anne Mizzi