Weil Gotshal & Manges is pursuing a merger with another law firm and is in discussions to secure the tie-up, its leaders have told top partners.
Weil’s leadership told certain practice group chiefs the firm is negotiating a memorandum of understanding detailing the merger with the unnamed firm, according to two people familiar with the situation. A broader announcement could happen as early as this week, they said, though they cautioned that nothing could come of the talks.
Weil has seen a string of departures both in the US and London this year, weakening its corporate department and fueling rampant merger speculation. Spokespeople for the firm did not immediately respond to a request for comment.
The three partners leading Weil are current executive partner Barry Wolf, his successor Ramona Nee, and managing partner Jonathon Soler.
The merger talks come as Weil prepared for more departures, including the exit of its former corporate department co-managing partner Michael Hickey, who is expected to join Sullivan & Cromwell. Other practice group leaders have been in discussions to join rivals, according to multiple sources.
Hickey did not respond to a request for comment.
Law firm merger negotiations are inherently delicate and can be affected by partner departures as the talks drag on. Confidentiality is also often viewed as a crucial aspect of successful mergers.
Weil was said to be considering merger negotiations shortly after its powerful corporate department chair Michael Aiello in September announced he would leave for Cravath, Swaine & Moore. Sources familiar with the firm voiced support for the idea in the wake of his exit.
Aiello’s departure came after a handful of partners left for Paul, Weiss, Rifkind, Wharton & Garrison and Simpson Thacher & Bartlett, two rival firms that over the past decade have zoomed past Weil on key financial metrics.
Partner exits have also hit Weil’s London office, including the defection of key M&A partner David Avery-Gee to Sullivan & Cromwell and London finance head Tom Richards’ pending jump to Simpson Thacher. The firm last month rehired Debra Sinclair, who left for Willkie Farr & Gallagher a decade ago, and private equity veteran Peter Feist from Cravath.