Waiting game

The scent of the election grows daily in the nostrils of City lawyers with the bigger firms vying to host political-themed events. Yesterday, for example, DLA Piper hosted a debate, featuring the towering figure of Vince Cable, MP, to discuss the question Is Political Paralysis the Major Obstacle to Economic Recovery?

If “paralysis” means an inability to move despite the will to do so, then I suppose we must just sit and wait patiently for next May. This is bad news for certain law firms who still can’t make out where their next M&A deal is going to come from.

Would you credit it?

On which point I was struck by the latest figures from EMW Picton Howell showing that, in the second quarter, 52 per cent of takeover talks targeting UK companies ended in breakdown — more than twice the percentage of two years ago. One of the biggest problems, unsurprisingly, is that potential bidders are having problems putting together their funding. Seems that credit is still mightily crunched.

Winner takes all

One of the biggest sectoral users of the court system is the insurance and reinsurance industry. So the recent proposals for reform of civil litigation costs made by Lord Justice Jackson are of special interest to them. What did they make of the plans?

According to research by Davies Arnold Cooper, the view that “loser pays” is still bang on the money. About 80 per cent of respondents think it discourages frivolous claims and almost two thirds say that it preserves the UK from that horrid US-style litigation. Almost as many believe that it is a fundamental part of justice. Impressive — until you realise that 40 per cent don’t agree.

Gold standard

David Gold, the senior partner at Herbert Smith, ended speculation last night about whether or not he would stand for a further term by revealing to the firm that he had decided to call it a day.

“No one is indispensable and it is better to go while you are at the top rather than clinging on,” he told me yesterday.

Declaring that he had enjoyed the job “phenomenally” and was proud of the firm’s achievements on his watch — including notably opening offices in the Middle East and Spain — he said that it was the advice of his wife over the weekend that made him to go public on his decision. He would now think about what to do next but was “open to offers”.

Dismissing as absurd the rumours that he had doubts about his possible successors, Gold said that the management infrastructure and the people were now in place to move forward to further developments. Two candidates — Jonathan Scott and Tim Parkes — have already declared but others may emerge. Who takes over from Gold should be clear by the early new year.

edward.fennell@yahoo.co.uk

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