Are key partners on board for merger of Bingham and Morgan Lewis?
Updated:Two dozen or more key partners at Bingham McCutchen will have to be on board with a merger before Morgan, Lewis & Bockius will agree to proceed with the deal, according to published reports.
Two anonymous sources told the Wall Street Journal (sub. req.) about the importance of about two dozen partners to the deal. One of the sources said those Bingham partners appeared to be in agreement, but there is no signed deal yet. The law firms are expected to make a final decision in coming weeks.
Thomson Reuters (sub. req.) puts the number of Bingham partners who are key to the deal at between 20 and 30 in a story on Friday that relies on four anonymous sources. Two sources said the key partners would be enticed to stay with loans that would be forgiven if the partners stayed with the merged firm for a certain time period.
Mergers often require the participation of key partners, the stories say.
The Wall Street Journal identifies a second issue: Bingham does not require capital contributions from partners, but its partners will have to pony up the cash for the merged firm.
Another condition would require some Bingham partners to be demoted and given pay cuts, according to Thomson Reuters. Partners at Bingham were briefed on the conditions last Wednesday. Above the Law has a summary of the story.
Related articles:
ABAJournal.com: “Bingham and Morgan Lewis reportedly reach merger agreement”
Updated at 12:45 PM to include coverage from Thomson Reuters and Above the Law.
