Dentons makes partner cash call as it eyes tie-up
DENTON Wilde Sapte has called on partners to inject up to £90,000 of capital into the firm with a £1,000 per equity point cash call.
The firm voted through the resolution at its partner meeting last month to help shore up its balance sheet. It is understood to be looking at its finances as it weighs up the possibility of a transatlantic merger.
Partners at Dentons are awarded 45 points upon entering the equity, rising by five points every year until they reach the plateau level of 90 points.
Chief executive Howard Morris (pictured) said the partnership had voted overwhelmingly in support of the capital injection, adding: “I think partners understand the reasons behind this. We’re looking at a downturn in the market and it was something we needed to do anyway.”
Dentons has also asked trainees to defer start dates for 12 months, offering a payment of £10,000.
Morris has admitted that the firm has received approaches and that there is broad support within the partnership for a US tie-up.
Readers' comments (3)
CJ | 1-Jun-2009 4:03 pm
That would be an absolutely huge tie-up. Whois in the frame as Dentons merger partner?
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Anonymous | 2-Jun-2009 1:23 pm
...received approaches...broad support within the partnership... nonsense and very old news.
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Anonymous | 2-Jun-2009 1:33 pm
I do find the explanation for the additional capital (looking for a US merger partner) surprising. As a partner in a US firm I am aware that the basis of profit distribution (fees collected as against the DWS/UK model of bills rendered) means there is a significantly lower requirement for capital. Accordingly the high DWS capital requirement would act as a block on any merger as opposed to assisting it. DWS would have been better served by reducing drawings and paying off some of their overdraft if they really wanted a full US merger.
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