Financial Issues May Be Holding Up WolfBlock-Akerman Merger

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Financial Issues May Be Holding Up WolfBlock-Akerman Merger

Posted Aug 18, 2008, 06:46 am CST
By Debra Cassens Weiss

Financial issues are the real reason for a delay in the merger of the law firms WolfBlock and Akerman Senterfitt, according to anonymous sources who spoke to the National Law Journal.

Previous stories had identified a conflict as the reason for the holdup. That’s the party line, said one source familiar with the merger discussions, who noted that WolfBlock represents several physicians and medical providers while Akerman Senterfitt represents several insurers.

But the source identified two financial issues as holding up the deal, the story says. One is the amount of taxes WolfBlock would have to pay to merge with a corporation. The other is that the firm would have to take out a loan to cover its unfunded pension liabilities.

Another possible sticking point is whether WolfBlock chairman Mark Alderman and other firm leaders will have a say in the new combined firm.

A former Akerman Senterfitt partner said the financial issues were the likely problem. Partners at the combined firm would probably have to stick around for at least three years to pay off the loan to fund the pension, he said. “It puts golden handcuffs on people,” he said.

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