Hammonds’ negotiations with its dissenting Italian partners have stalled after both sides failed to agree on the terms of a transition agreement to retain its profitable Hammonds Rossotto branch.
As first reported in The Lawyer, Rossotto is demanding that Hammonds reaches profit per point levels of £12,000 to ensure that the Italian partners will stay with the firm. Both parties had hoped an agreement would be reached by the end of October.
It is understood that the transition agreement will see Rossotto and his partners stay with Hammonds for a further 12 months. But if the £12,000 per point mark is not reached within 12 months, the Italians reserve the right to pull out. The transition agreement will be backdated to the start of the 2005-06 financial year.
In May, The Lawyer revealed that Italian managing partner Riccardo Rossotto had delayed full integration of the merger between Hammonds and Rossotto e Associati.
Hammonds secured the merger with Turin’s Rossotto in 2002, subject to a three-year transitionary period which ended on 29 April.
Hammonds managing partner Peter Crossley confirmed the negotiations were ongoing, but declined to comment further. Rossotto declined to comment.