Herbert Smith goes Dutch as it forms three-way alliance

City firm Herbert Smith and its German ally Gleiss Lutz Hootz Hirsch are to form a three-way alliance with Dutch firm Stibbe in the new year, following unanimous votes by all three partnerships last weekend.With 77 partners and offices in Holland, Belgium, New York and London, Stibbe is regarded as a top- three Low Countries firm.Practice partner Richard Fleck said the arrangement had advantages without the need to waste money on the bureaucracy of full merger.

However, he refused to discount merger in the long term.

The firm is now keen to strengthen its connections with Spanish firm Cuatrecasas, and Italian firm Pavia e Ansaldo, which recently began talks with Herbert Smith.Mr Fleck added: 'We're not going to stand still whether there's a recession or not.'Jeremy Fleming