Weil Gotshal & Manges is considering a merger with another law firm and is in discussions to secure the combination, its executives told its top partners.
Weil management told some practice group leaders that the firm was negotiating a memorandum of understanding detailing the merger with the unnamed firm, according to two people familiar with the matter. A broader announcement could come as soon as this week, they said, while warning that nothing could come of the negotiations.
Weil has seen a series of departures in the United States and London this year, weakening his corporate department and fueling rampant merger speculation. Company spokespeople did not immediately respond to a request for comment.
The three partners at the helm of Weil are current executive partner Barry Wolf, his successor Ramona Nee and managing partner Jonathon Soler.
The merger talks come as Weil prepares for other departures, including that of his former corporate co-managing partner, Michael Hickey, who is expected to join Sullivan & Cromwell. Other practice group leaders are in discussions to join their rivals, according to multiple sources.
Hickey did not respond to a request for comment.
Merger negotiations between law firms are inherently delicate and can be affected by the departure of partners as negotiations drag on. Confidentiality is also often considered a crucial aspect of successful mergers.
Weil reportedly considered merger talks shortly after its powerful corporate chairman, Michael Aiello, announced his departure for Cravath, Swaine & Moore in September. Sources close to the company have expressed support for the idea following his departure.
Aiello’s departure came after the departure of a handful of partners for Paul, Weiss, Rifkind, Wharton & Garrison and Simpson Thacher & Bartlett, two rival firms that over the past decade have outperformed Weil on key financial indicators.
Partner departures have also hit Weil’s London office, including the defection of key M&A partner David Avery-Gee to Sullivan & Cromwell, and the impending move of London CFO Tom Richards to Simpson Thacher. The firm last month rehired Debra Sinclair, who left Willkie Farr & Gallagher a decade ago, and private equity veteran Peter Feist from Cravath.
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