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Clyde & Co is leaving the door open to a possible merger with newly formed firm Kendall Freeman, despite the insurance and litigation boutique vowing that merger is not on the cards. DJ Freemans insurance and litigation partners, soon to be known as Kendall Freeman, were in negotiations with Clydes at the same time as the property and media groups were talking to Olswang. Clydes are understood to have been looking to take on the entire Kendall Freeman group. A source close to Clydes said that negotiations fell through in part over lease obligations on the DJ Freeman buildings. One building is understood to have a 10 year lease at around £45 per square foot. But a DJ Freeman source said that the DJ Freeman side was the one to walk away from talks with Clydes, citing remuneration and compatibility as other elements that scuppered the potential deal. DJ Freeman chief executive Laurence Harris declined to comment on the talks with Clydes. He said that the Kendall Freeman partners had a number of options available to them, but that the partners had agreed unanimously that forming their own firm was the best way forward. "We are not in discussions and merger is not a part of the strategy for Kendall Freeman," Harris added.