Law Journal: Bingham, Morgan Lewis Talk Merger
Boston law firm Bingham McCutchen LLP is in substantive merger talks with a larger firm, Morgan, Lewis & Bockius LLP, according to two people familiar with the matter.</br></br>Bingham, which has about 800 lawyers, began making overtures to rival firms after a leadership change in May. The firm is working to reverse a 12.6% revenue decline in 2013 and has lost a number of partners. It has worked on some high-profile matters this year, including the $2 billion sale of Oculus VR Inc. to Facebook Inc.</br></br>Morgan Lewis was founded in Philadelphia and has roughly 1,350 lawyers in 25 offices around the world. A combination with Bingham could create a significantly larger firm, though the details and scope of any potential deal aren't clear and no formal agreement appears to have been signed. Talks could shift direction or end.</br></br>Major law firms are grappling with diminished demand for legal services since the recession, and a number have turned to mergers as a way to expand market share. Earlier this month, for example, Texas firm Locke Lord LLP and Edwards Wildman Palmer LLP announced their intention to merge. In June, a new firm, Squire Patton Boggs, was formed through the tie-up of Washington, D.C., firm Patton Boggs LLP and a larger international firm, Squire Sanders.</br></br>But mergers can also be risky, and discussions between firms often end before formal agreements are reached or put to a partnership vote. Even advanced talks can founder as a result of client conflicts or other differences that emerge during detailed negotiations.