PricewaterhouseCoopers merges with Dunhill Madden Butler

The merger comes just two months after Dunhills in Sydney saw a mass exodus of 27 partners and 125 lawyers to the legal branch of PWC.

And earlier this month, David Nathan, the managing partner Dunhills' Melbourne office who was charged with rebuilding the embattled firm, defected to Baker & McKenzie to head up its Australian operation.

The newly merged firm will be called PricewaterhouseCoopers Legal and will specialise in IT, telecommunications and e-business law.

PricewaterhouseCoopers Legal is reportedly expected to invest around A$3 million in its business over the next three years.