Addleshaw Goddard born

MERGER: firms decide to split management 2:1 to reflect different sizes of partnership

City firm Theodore Goddard and Addleshaw Booth & Co announced their merger this week, with Theodore Goddard vehemently denying that it was being taken over by the northern giant.

The new firm, known as Addleshaw Goddard, will number 174 partners with bases in London, Leeds, Manchester and Brussels.

Its management team will be led by Addleshaws senior partner Paul Lee and managing partner Mark Jones, who will remain in their roles for the merged firm, with Mr Lee giving up his current role as partnership chairman to Theodore Goddard senior partner Paddy Grafton Green.

The firms have been in talks since February, and the new firm will begin operations on 1 May.

Mr Grafton Green dismissed as 'rubbish' suggestions that the merger was effectively a takeover of 69-partner Theodore Goddard by 127-partner Addleshaws.

'In the sense that a larger firm is merging with a smaller firm, then it could be seen as a takeover, but in reality that is not the case,' he said.

'We have a very strong London office, and we have gone to great lengths to ensure that the balance of power within the new firm is fairly balanced on a two-thirds to one-third split.'

The firm will be structured into five core divisions - corporate, property, commercial, banking and projects, and employment and litigation - three of which will be led by Addleshaws partners, and two by Theodores partners.

Each department will have a deputy head from the other firm.

The governance board of the new firm will comprise six partners from Addleshaws and four from Theodores, and both firms said they are strongly committed to developing an international network.

Theodores has been searching for a credible merger partner for some time.

In 1998, a three-way merger with Richards Butler and Denton Hall fell through, while talks with international firm Salans failed in 2001.

The firm changed its partnership deeds in February this year to allow a merger to go through with 80% partnership backing, rather than the previous 95%.

The high level of support had previously frustrated merger bids.

Last summer, Addleshaws partners voted to give their management a mandate to hunt for a suitable merger with a City firm.

Victoria MacCallum