US firms have litigation and employment in their sights with niche City takeovers

MERGERS: Americans Shook Hardy & Bacon and Morrison & Foerster develop European bases

Two niche City practices were last week swallowed up by large US firms, as the American partnerships expand their London reach.

Litigation practice Arnander Irvine & Zietman (AIZ) and employment firm Jones & Warner are to disappear, as all the employees move to strengthen Shook Hardy & Bacon (SHB) and Morrison & Foerster (MoFo) respectively.

Ten-partner AIZ is to join SHB's London practice, based in Cannon Street, on 1 July, taking the total office partnership to 17.

James Irvine, currently senior partner at AIZ, said: 'SHB made contact with us about six months ago and were the first firm who weren't looking for a litigation or intellectual property bolt-on for their practice, but rather a full merger.

'We have very similar chemistry and business ideas and are looking to develop into the biggest litigation practice in the City.'

Laurel Harbour, managing partner of SHB in London, said the firm would hopefully evolve to become 'the largest litigation boutique practice in the world'.

'We have been trying to crack the UK market to offer clients a European base, but we wanted to make sure we were fully developed in the US first,' she said.

'Now we have put together a team that can offer first-class litigation advice across jurisdictions on cross-border issues.'

Ms Harbour said it was yet to be decided whether the firm would work out of SHB's offices or AIZ's base in Fleet Street, although 'early suggestions point towards Cannon Street'.

The six-employee Jones & Warner team, led by partner David Warner, will move to MoFo's offices from 10 June to develop an international employment law practice.

'We have had a number of approaches from US and regional UK firms who want to develop their employment law capability,' said Mr Warner, who will remain a partner after the merger.

'But with MoFo we have the chance of starting up a whole new area for the firm in the UK with plans to increase the department size through recruitment.'

He added: 'I think US firms are starting to realise that if they want to make an impact in Europe, then they need locally qualified lawyers.'

Andrew Towler