City firms line up to act in ground breaking stock exchange merger

Herbert Smith, Norton Rose, Clifford Chance Pnder and Hengele Mller are the Anglo-German line-up acting on the 'ground-breaking' London and Frankfurt stock exchange merger which is set to change the face of the European capital markets.

The London Stock Exchange is instructing Herbert Smith as its lead law firm, with Clifford Chance Pnder providing German legal advice.

Deutsche Brse has opted for Slaughter and May's 'best friend' in Germany, Hengele Mller, and Norton Rose for English legal advice.

It is understood that Slaughters has been conflicted out.

Corporate partner Stephen Barnard is leading the 13-strong Herbert Smith team.

He said: 'I have rarely worked on a deal (or really a series of deals) with so many different and complex issues.

The deal has had to be put together at a time of rapid change in global capital markets.' Norton Rose corporate partner Christopher Pearson agreed: 'This is a ground-breaking deal and it will change the shape of the stock market in Europe.

It is an important deal.' The merged exchanges will be created via a new UK holding company, iX-international exchanges, which will enter into a joint venture with Nasdaq.Herbert Smith also acted for the London Stock Exchange on its demutualisation and restructuring, and on the transfer of competent authority status required by the Financial Services Act 1986, which took effect on 1 May.

Anne Mizzi