Greenberg Traurig and BLP throw out merger plans

The two firms revealed that they had engaged in preliminary merger negotiations last month, with BLP hoping to secure a tie-up which would build a solid US presence. Had the negotiations ended more fruitfully, a combined BLP and Greenberg Traurig would have created a global megafirm with more than 2,500 lawyers, revenues in excess of £1 billion, and offices on almost every continent.

However, all did not go to plan, and the two firms announced yesterday that a merger is now off the cards. According to BLP managing partner Lisa Mayhew, there was no single reason why the firms decided not to move ahead with the tie-up—rather, there was just a lack of 'common ground'.

'It was a really interesting potential business opportunity but it was always on the understanding that culturally and strategically it had to make sense for both firms,' she commented.

Greenberg Traurig managing partner Richard Rosenbaum echoed Ms Mayhew' sentiment:

'For Greenberg Traurig, it was quite exciting to enhance our practices, but not at the risk of materially diluting our cultural, financial and other priorities,' he said. In a statement, Mr Rosenbaum said that Greenberg Traurig had never pursued a large scale merger because of its conservative approach to financial risk and because, as he puts it, 'culture eats strategy for lunch.'

Mr Rosenbaum added that he had a 'great deal of respect' for BLP and that he hoped that the friendships formed between the two firms throughout the negotiation process would be maintained as they each go their separate ways.

'After spending a substantial amount of personal time on this opportunity, visiting nearly every location and meeting so many fine BLP partners, I must admit to some regret in this decision. But in the final analysis, we are a business. However exciting, we do not grow for growth's sake and we do not 'fall in love' with a story or act on emotion; we run a disciplined operation, and we will continue to run it and achieve our stated goals for the benefit of the many families who are dependent on us every day,' he said.  

Source: The Lawyer