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Talks between national law firm Eversheds and City-based Jaques & Lewis are said to be going well.
If a merger went ahead, Jaques & Lewis would become the Eversheds London office, with Eversheds staff leaving the Gunpowder Square office and moving into Victoria Street. The move would create the country's largest law firm with over 900 fee earners.
Both firms are tight-lipped about their plans, however.
Peter Cole, Eversheds managing partner, says: "We are talking to them. The talks are on-going. We are making good progress but still have a long way to go. These deals are not put to bed overnight."
Jaques & Lewis director of marketing Keith Lindsay says: "We are pleased to confirm that we are in discussion with Eversheds. The talks continue and they are going well, but there is still much to be done."