City abuzz with US merger plan

MERGER: Rakisons to be swallowed by 300-lawyer US firm

City firm Rakisons is planning to merge with US firm Steptoe & Johnson - a firm six times its size - and become its launch pad for a renewed European offensive.The merger has been approved at board level by both firms, although there has been no formal vote as yet.

The merger date has been set for 1 October.

The Washington, DC-based firm, which has 300 lawyers, had been searching for a UK merger partner since it handed its Commonwealth of Independent States practice to rival US firm Squire Sanders & Dempsy in September, ending a ten-year European presence.Tony Wollenberg, senior partner of 45-lawyer Rakisons, said the firms were first introduced in December by an 'outside friend'.

One month before, Rakisons' planned merger with London media firm Stephens Innocent had fallen apart in acrimonious circumstances.Steptoe & Johnson - which is a member of global network Lex Mundi - will use Rakisons as its gateway to Europe.

Mr Wollenberg said: 'They are very keen to expand into Europe and open other offices.'It will be the third UK/US merger after Clifford Chance and Rogers & Wells, and Dechert Price & Rhoads and Titmuss Sainer Dechert.

Anne Mizzi