The imminent merger between Clyde & Co and Barlow Lyde & Gilbert (BLG) faces a snag as the firms have delayed signing the agreement.
understands the deal was supposed to be signed at the beginning of September but was delayed until mid-September and again until the end of September. It is understood that there is currently no agreed signing date.
Clyde & Co senior partner Michael Payton said: “It was originally due to be signed in the second or third week of September.” However, he insisted that the delay was “not of any relevance” to the merger, which was still set for a 1 November launch.
BLG’s 100-strong partnership is set to be reduced by 15 before the merger goes live. Reinsurance is understood to be a practice area heading for cuts, while professional negligence, litigation and pensions are understood to be safe.
Partners who agree to transfer to Clyde & Co will be obliged to stay for a period of 18 months under a lock-in agreement (8 August 2011).
Details of the high-level merger talks first emerged in June (3 June 2011) and in July partners at both firms voted in favour of continuing the talks (29 July 2011).
As part of the deal the BLG brand will be dropped in favour of Clyde & Co and Clydes’ current management will continue in their positions post-merger with Michael Payton remaining as senior partner and Peter Hasson continuing as chief executive of the enlarged firm.
BLG senior partner Simon Konsta, who was elected to his position in May 2008 (29 May 2008), will gain a place on the new management board along with current BLG chief executive David Jabbari, who will become chief operating officer of the new entity. A further BLG partner will also be co-opted onto the board (4 August 2011).