Clifford Chance plans hit by Singapore split and competition for merger deal

JOINT VENTURES: City firm's aspirations in the emerging markets to be put on hold

Clifford Chance's Pacific rim aspirations have suffered a set back following a split with its Singapore alliance and a new suitor for its most likely Australian merger partner.

The Top Australian firm Mallesons Stephen Jaques is reported to have set its sights on another UK firm, Linklaters and Alliance, following a break down of its on and off talks with Clifford Chance last year over profitability.

A UK Sunday newspaper reported that Malleson's partners recently voted to join the Linklaters' alliance, and that Linklaters was poised to step into Clifford Chance's vacant shoes, although Linklaters & Alliance partners would still have to approve the proposal.

Although Linklaters refused to comment, the firm is widely known to have been seeking to enlist an Australian firm to its alliance.

Linklaters plans to merge with each of its alliance firms after a period of integration.

A Clifford Chance spokesman said the firm continued to regard Australia as an 'emerging' market, although Asia was considered a 'significant' market.

But he said Australian firms are queuing up for Anglo-Saxon mergers.

The spokesman said: 'Australian companies are going straight to the top.

They are going straight to the leading New York and UK firms for advice, so [Australian law firms] are very keen.' He added: 'We are keen as well.

But there is a big profitability issue.

We are keeping a very active watch on the market.'

Meanwhile, Clifford Chance and Singapore firm, the Wong Partnership, have ended their joint law venture, Clifford Chance Wong, at the eleventh hour.

The two firms had planned to incorporate the joint venture on 1 November, but the deal collapsed because of reported internal rows between the corporate and banking practices within the Wong Partnership, culminating last week in the announcement that leading corporate and securities lawyer, Lee Suet Fern, is planning to leave.

Both sides are 'keeping their options open', but Clifford Chance is thought to be very keen to hire Ms Fern, who was not available for comment.

Anne Mizzi