http://dealbook.nytimes.com/2012/05/03/at-dewey-leboeuf-notable-departures-continue/
Morton A. Pierce had been a vice chairman at Dewey.
and....
http://abovethelaw.com/2012/05/dewey-still-have-the-6-million-man-nope-mort-pierce-is-out-the-door/
http://www.chicagotribune.com/news/sns-rt-us-dewey-snrdentonbre842077-20120502,0,674821.story
(Reuters) - Merger talks between law firms Dewey & LeBoeuf and SNR Denton collapsed on Wednesday, the Wall Street Journal reported, citing two people familiar with the matter.
Dewey & LeBoeuf, which is struggling with a debt crisis and criminal probe of its former chairman, is considering a number of alternatives including deals with other law firms.
The full-merger discussions "effectively ended" after Dewey & LeBoeuf sent an email on Monday night encouraging its partners to seek new jobs, according to the newspaper.
SNR Denton had suggested a full merger, in which it would have taken on more than 1,000 remaining Dewey lawyers, the Journal said.
However, a Dewey spokesman told Reuters that "the firm is continuing to talk with SNR Denton and other firms."
Elliott Portnoy, SNR Denton's global chief executive, declined to comment on the merger talks.
Earlier, Dewey's talks with rival Greenberg Traurig about a possible transaction fell through, according to an internal e-mail sent Sunday and reviewed by Reuters.
and....
http://www.bloomberg.com/news/2012-05-02/dewey-partners-said-to-be-told-to-send-bills-forgo-monthly-pay.html
http://shererandcrow.com/legal-news/deweys-climan-in-talks-with-three-firms-including-u-k-powerhouse/
At Dewey & LeBoeuf, Notable Departures Continue
BY PETER LATTMAN AND KEVIN ROOSEMorton A. Pierce had been a vice chairman at Dewey.
Dewey & LeBoeuf continued to face high-level departures and other potential indications of a shutdown on Thursday, even as the law firm’s leadership denied reports that it planned to close.
In one of the most prominent defections since problems first surfaced a few months ago, Morton A. Pierce, a Dewey vice chairman, left the firm.
After tending to some final matters Thursday morning and submitting his resignation, Mr. Pierce moved seven blocks down the Avenue of the Americas to his new firm, White & Case, with plans to take seven other partners with him.
Mr. Pierce, a leading mergers-and-acquisitions lawyer, was chairman of Dewey Ballantine, the firm that merged with LeBoeuf, Lamb, Greene & MacRae in 2007 to form Dewey & LeBoeuf.
“I am sorry about what happened,” said Mr. Pierce, 63, who declined to comment on the reasons for Dewey’s woes.
Dewey is dealing with a mass exodus of its partners following a disappointing performance that prompted the firm to cut compensation. Since January, nearly 100 of Dewey’s 300 partners have left. The firm employed about 1,000 lawyers and an equal number of support staff before the recent departures.
The problems have been heating up in the last month. Last week, the Manhattan district attorney started an investigation into accusations of misconduct by the firm’s former chairman, Steven H. Davis. He has denied wrongdoing.
Overseas, Dewey’s London office showed signs of deterioration on Thursday when Peter Sharp, the managing partner of the London office, left for Morgan, Lewis & Bockius, along with two others.
At Dewey’s Midtown Manhattan headquarters, two women walked out of the building carrying large company tote bags filled with law books and legal pads. Another woman emerged carrying two framed diplomas, one from Cornell. Upstairs, lawyers hoarded cardboard boxes in anticipation of having to pack up their belongings and leave.
Dewey is bringing two recruiting agencies into the office on Friday to help the staff think through their options, according to an e-mail sent to the New York employees.
Partners remaining at Dewey were relieved Thursday when they received checks paying them April “draws” of $25,000. Several had expressed worry about Dewey’s ability to provide the typical monthly payouts.
Management had told the partners that they would not receive their monthly draw unless they were current on billings. Those who were up-to-date received paychecks. (Dewey partners, several of whom had guaranteed salaries of millions of dollars a year, usually receive the bulk of their compensation at year-end.)
Dewey’s leadership has spent the past two months trying to find a merger partner and prevent a painful, costly liquidation, but a white knight has yet to materialize.
Recent discussions to combine with firms including Greenberg Traurig and SNR Denton have fallen apart.
The firm’s leadership spent Thursday batting away reports in trade publications that the firm planned to seek bankruptcy protection, or planned to shut down, by mid-May. Mike Sitrick, a Dewey spokesman, said that the firm had no plans to file for bankruptcy.
This week, Dewey received a two-week extension from its banks as it seeks to renegotiate a $100 million credit line that is three-quarters drawn. The firm also has a $125 million bond, some of which matures next year.
and....
http://abovethelaw.com/2012/05/dewey-still-have-the-6-million-man-nope-mort-pierce-is-out-the-door/
Dewey Still Have the $6 Million Man? Nope: Mort Pierce Is Out the Door (Plus Other Partner Departures)
By DAVID LAT
Morton Pierce
This just in: superstar M&A lawyer Morton A. Pierce is leaving Dewey & LeBoeuf, the beleaguered Biglaw behemoth. This news should not shock anyone; rumors of Pierce’s possible departure have been making the rounds for weeks now.
So where is Morton Pierce going?
As we’ve been doing when covering this breaking story, we’ve added multipleUPDATES, after the jump.
Here’s a report on Mort’s move, from Ashby Jones and Jennifer Smith of the Wall Street Journal (sub. req.):
Morton A. Pierce, the 63-year-old vice chairman of the firm, is a top mergers and acquisitions lawyer and was one of the architects of the 2007 merger that created Dewey & LeBoeuf.Mr. Pierce is moving to White & Case LLP, according to a person familiar with the matter….Mr. Pierce, a renowned M&A lawyer with a relentless work ethic, had negotiated a pay deal around the time of the merger that guaranteed him $6 million a year for six years, according to a person with direct knowledge of the arrangement. Mr. Pierce has declined to discuss his compensation.He had been speaking to a number of law firms about a move in recent weeks, according to other people familiar with the discussions. He could join White & Case as soon as Friday and will be bringing seven other partners with him, according to a person familiar with the matter.
There’s more about Mort Pierce — including discussion of his estimated $60 million book of business, and major deals he has worked on over the years — in Sara Randazzo’s story for Am Law Daily (sub. req.).
By the way, we’re going to be revising and updating this post heavily, turning it into a repository for the latest Dewey news (developments since last night’s epic post — which itself bears several updates, by the way). Refresh the page to see the latest updates.UPDATE (12:30 PM): In case you missed the links in Morning Docket, the WSJ had this earlier report on the collapse of the SNR Denton merger talks:Merger discussions between struggling New York law firm Dewey & LeBoeuf LLP and law firm SNR Denton collapsed on Wednesday after a whirlwind nine-day courtship, according to two people familiar with the matter…. SNR Denton had suggested doing a full merger, in which it would have taken on more than 1,000 remaining Dewey lawyers, according to the two people familiar with the matter.The deal, which SNR Denton leaders had unofficially deemed “A Phoenix Rises from the Ashes” would have hinged on the merged firm’s ability to land hundreds of millions of dollars in financing, which they would have repaid over five years, these people said.Observed Elie: “A Phoenix Rises, Then Has A Heart Attack.”And Peter Lattman of DealBook had this article, also linked in Morning Docket, on partner defections and the internal investigation:Meanwhile, the Dewey & LeBoeuf lawyers conducting an internal inquiry into accusations of misconduct by its former chairman have hired private investigators to conduct the review. Seth C. Farber and Harvey Kurzweil, the two Dewey partners conducting the internal investigation of Steven H. Davis, the former chairman, retained Guidepost Solutions, led by Bart M. Schwartz, a former chief of the criminal division at the United States attorney in Manhattan….
There were several additional defections from the firm on Wednesday. Among the partners announcing their departures was Ira White, a private equity partner who has joined Jones Day. More than 90 of the firm’s 300 lawyers have left Dewey since January.Lawyers at Dewey said that one reason departures slowed on Wednesday was that partners were waiting until the end of the week. On Friday, Dewey partners are supposed to be paid their monthly “draw,” a base salary distributed to all partners. Dewey’s monthly draw is about $25,000 a partner, according to the firm’s partners.
UPDATE (12:50 PM): Julie Triedman of Am Law Daily has this report (sub. req.) on additional partner departures:In the latest round of defections to hit Dewey & LeBoeuf, three litigation partners from the crumbling firm’s depleted London outpost, including the office’s managing partner, are jumping to the London office of Morgan, Lewis & Bockius, that firm announced early Thursday. Separately, Jones Day announced that it has hired a top New York–based Dewey private equity partner [Ira White, mentioned supra]….The three Dewey partners bound for Morgan Lewis — all of whom focus their practice on litigation and international arbitration — include London office managing partner Peter Sharp, Nick Greenwood, and David Waldron. Waldron served as overseas co-chair of the Dewey’s litigation department and as co-chair of its oil, gas, and energy dispute resolution group. Greenwood focuses on dispute resolution in the private equity, banking, insurance, property development and shipping sectors.
UPDATE (4:25 PM): Pierce is moving to White & Case with seven other partners, including New York corporate partner Denise Cerasini, according to Am Law Daily (reg. req.).
http://www.chicagotribune.com/news/sns-rt-us-dewey-snrdentonbre842077-20120502,0,674821.story
(Reuters) - Merger talks between law firms Dewey & LeBoeuf and SNR Denton collapsed on Wednesday, the Wall Street Journal reported, citing two people familiar with the matter.
Dewey & LeBoeuf, which is struggling with a debt crisis and criminal probe of its former chairman, is considering a number of alternatives including deals with other law firms.
The full-merger discussions "effectively ended" after Dewey & LeBoeuf sent an email on Monday night encouraging its partners to seek new jobs, according to the newspaper.
SNR Denton had suggested a full merger, in which it would have taken on more than 1,000 remaining Dewey lawyers, the Journal said.
However, a Dewey spokesman told Reuters that "the firm is continuing to talk with SNR Denton and other firms."
Elliott Portnoy, SNR Denton's global chief executive, declined to comment on the merger talks.
Earlier, Dewey's talks with rival Greenberg Traurig about a possible transaction fell through, according to an internal e-mail sent Sunday and reviewed by Reuters.
and....
http://www.bloomberg.com/news/2012-05-02/dewey-partners-said-to-be-told-to-send-bills-forgo-monthly-pay.html
Dewey Partners Said to Be Told to Send Bills, Forgo Pay
By Linda Sandler - May 3, 2012 5:01 AM ET
Dewey & LeBoeuf LLP, whose bank loans are partly secured with money due from clients, told partners they can’t have their monthly pay until they send all the bills for their services, a person familiar with the matter said.
Dewey is under orders from bankers to collect as much money owed to the firm as possible after the departure of about 85 partners and the ouster of chairman Steven Davis, according to another person familiar with Dewey’s finances. The banks are reluctant to put the firm into bankruptcy as that might make it harder to collect the bills, that person said. Both people didn’t want to be identified because the matter wasn’t public.
Neighboring buildings are reflected in 125 W. 55th Street, home to the offices of Dewey & LeBoeuf LLP, in New York. Photographer: Daniel Acker/Bloomberg
By last month, the New York-based law firm had drawn about $75 million of a $100 million credit line from banks including JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C), the second person said.
Lenders were considering a 120-day extension of the credit line until a possible combination of the firm with Greenberg Traurig LLP fell through, the person said.
“The banks know that Chapter 11 will add another whole layer of huge expense and involve years of litigation with little gained,” said Anthony Sabino, a lawyer and professor at the Peter J. Tobin College of Business at St. John’s University in New York.
Michael Sitrick, a spokesman for Dewey, didn’t immediately return an e-mail yesterday after regular business hours seeking comment on the firm’s financial situation.
11th-Largest Firm
Dewey was the 11th-largest U.S. law firm with 1,300 lawyers after a merger during the 2007 recession.
Merger discussions with law firm SNR Denton, where it would have taken on more than 1,000 remaining Dewey lawyers, fell apart yesterday, the Wall Street Journal reported, citing people familiar with the matter. The deal hinged on the combined law firm’s ability to raise hundreds of millions of dollars in financing, the newspaper said.
In the firm’s Manhattan offices, employees for outsourced services have gone and Dewey’s own support staff may be gradually dismissed as more lawyers leave for other firms, said the first person familiar with Dewey’s situation. Contrary to some online reports, the photocopiers are still there and the computers are working, the person said.
Dewey is trying to help employees find other jobs, the person said. The person plans to take assistants and paralegals with him when he leaves the firm.
Bank Control
The law firm’s mailroom and photocopiers are handled by a contractor, according to a third person familiar with the firm’s situation. At a meeting yesterday, Dewey’s four employees who handle desktop support were told that their jobs would end May 4, and they would be paid salary and accrued time, the person said. A manager told them that the banks were in control of the firm, said the person, who didn’t want to be identified because the matter wasn’t public.
The group was also told that there may be a skeleton staff of support people who would be asked to stay on to complete the remaining business of Dewey, the person said.
Dewey was created by the merger of Dewey Ballantine and LeBoeuf Lamb Greene & MacRae in October 2007, during the credit crisis. The marriage produced an international firm with offices in 25 cities and revenue of more than $900 million. LeBoeuf Lamb Chairman Davis took the helm.
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Dewey exodus spreads to Germany as partners prepare to quit
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Dewey & LeBoeuf is set to lose members of its German base for the first time since this year’s global partner exodus started, with the entire Frankfurt team close to agreeing a deal to join rival firms.
A capital markets team, understood to include partners Philipp von Ilberg and Joseph Marx, is in advanced talks with two firms including US outfit McDermott Will & Emery, with a deal currently near to being finalised.
The team in Frankfurt, Dewey’s only German base, is also speaking to another competitor thought to be an expansive firm in Germany that already has a base in the country’s financial hub. McDermott does not currently have a Frankfurt office.
Separately, the rest of the nine-partner Frankfurt team, which includes tax and funds partner Bernulph von Crailsheim, corporate partner Benedikt von Schorlemer and derivatives partner Walburga Kullmann, are in discussions with a number of firms about a move.
It had previously been expected that the entire office would move together, probably to a Frankfurt start-up, because its size and breadth would make it hard to slot the group into an existing practice in the city.
However, commentators said the partners are now likely to split up, with more than one firm benefiting.
None of the moves have been formally completed, with a Dewey spokesperson confirming that it has not yet received any resignations from Frankfurt partners. McDermott declined to comment.
Dewey’s German offering was hit in 2010 when tax rainmaker Hanno Berger and finance partner Kai-Uwe Steck quit to launch a spin-off firm (4 June 2010).
A source close to the firm said today: “They’ve been falling apart for a while but the remainder of what’s still there is without any exception close to finding a [new firm]. They’re trying to cross the finish line.”
Another source commented: “I suspect that the whole team were in discussions but they were not able to find a unified position just to change the plaque on the door. They’re all highly regarded professionals in the firm. Clearly there are a number of firms who’ve been trying to get into the [Frankfurt] market for years.”
Dewey’s European offices are facing tough times, with a new five-partner London steering group now preparing the UK and Paris LLP for administration (1 May 2012).
Moscow partners are also in talks with rivals over a defection (26 April 2012), while partners across Europe, including some remaining City partners, are also considering moves. Italian partners have considered solutions including leaving the US LLP (10 April 2012).
Roughly 80 partners have left the firm across its global network since the start of 2012, although until now the exodus has been focused on the US and London.
Last month The Lawyer reported that senior bankruptcy partners at the firm were working on a sell-off of the firm, with preparations for a deal potentially involving a scaling back of the business to a US-only operation (19 April 2012).
and
Dewey’s Climan in Talks With Three Firms, Including U.K. Powerhouse
As Dewey & LeBoeuf teeters, Silicon Valley M&A lawyers led by rainmaker Richard Climan are said to be in talks with at least three law firms: Gibson, Dunn & Crutcher; Kirkland & Ellis; and the U.K.'s Freshfields Bruckhaus Deringer, according to people familiar with the group's situation.
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