A distinctive feature of the corporate law market in Perth is the prominence of boutique firms, which consistently give the big national firms a run for their money.
A distinctive feature of the corporate law market in Perth is the prominence of boutique firms, which consistently give the big national firms a run for their money.
The boutique law firms are not able to match the breadth of expertise offered by the national firms, nor do they feature in the really big transactions, but for the majority of Western Australian companies the boutique firms offer a competitive local alternative.
A WA Business News survey of Perth’s business community found that firms such as Blakiston & Crabb, Fearis Salter Power Shervington and Steinepreis Paganin are held in high regard.
While best known for working on prospectuses and share market floats, they were also noted for their experience in takeovers, project work and general commercial advice.
The profile of corporate law firms in Perth is illustrated in the table above, which tracks lawyers involved in public company takeovers during the past 18 months.
While takeovers are just one element of the corporate law market, the names featured in the table correspond closely to the names that emerged from the survey – with a few notable exceptions.
The table shows that Fearis Salter Power Shervington had a very good period in mergers and acquisitions, advising on four transactions, while Steinepreis Paganin advised on two transactions.
A notable omission from the table is Blakiston & Crabb, even though two of its clients are listed.
CopperCo and Universal Resources both use Blakiston & Crabb as their house lawyer, which meant both companies had to seek a new lawyer when they got into a takeover battle.
Interestingly, CopperCo went for the big end of town, choosing Mallesons partner Geoff Rogers, while Univeral stayed local, choosing Neil Fearis as its adviser.
Mallesons was involved in the three biggest takeovers of the past year, but not always from its Perth office.
Melbourne partner Steven Minns advised Burswood in its defence against Kerry Packer’s Publishing & Broadcasting, while Perth partner Nigel Hunt is advising Foodland in its defence against Sydney grocery wholesaler Metcash.
Perth partner Ian Cochrane and Sydney partner Peter Cook jointly advised US company Cleveland-Cliffs on its bid for Portman Mining, which was advised by Blake Dawson Waldron partner Roger Davies.
WA Business News’ survey found that Messrs Davies and Cochrane, who were profiled in the 2004 Legal Elite feature, are regarded as the pre-eminent corporate lawyers in Perth.
As well as the Portman defence, Mr Davies advised Lyreco on its acquisition of National 1.
He is also an adviser to Alinta, which was involved in two major transactions last year – the purchase of the Dampier-to-Bunbury natural gas pipeline and the purchase of Duke Energy’s Australian assets.
In addition, Mr Davies advised heavy equipment supplier Emeco International, which was acquired last December by private equity funds for more than $450 million.
At Perth’s biggest law firm, Freehills, there has been a changing of the guard after highly regarded corporate partner Rob Franklyn left to set up his own boutique practice, Franklyn Legal.
Freehills partner David Gray is currently advising financial technology company JDV in its defence against the increasingly hostile bidder IWL.
His colleague, Justin Mannolini, who returned to his home town of Perth last year after being made a partner in Sydney, has had limited involvement in big WA takeovers, but that is likely to change, judging by the accolades from those surveyed.
His Sydney experience includes lead advisory work on some major takeovers, including Burns Philp’s purchase of Goodman Fielder and Centro Properties’ bid for AMP Shopping Centre Trust.
Mr Mannolini said public company takeovers kept him fully occupied in Sydney but in Perth he has spent more time on negotiated acquisitions.
He advised Pipeline Trust of Australia on its unsuccessful bid for the Dampier-to-Bunbury natural gas pipeline, advised Sydney engineering firm Worley on its merger with international firm Parsons, and is currently working on the reconstruction of Sons of Gwalia’s tantalum business.
Mr Mannolini said a difference between the Sydney and Perth markets was that investment banks are not always involved in WA transactions.
“It provides more scope to really delve into the commercial and strategic side of a transaction,” he said.
Investment banker Mark Barnaba, the managing director of Azure Capital, agrees that a good lawyer has a mix of commercial and technical skills.
“Integrity, good personal skills, and having spent time out of Perth or out of the law also make a difference,” Mr Barnaba said.
For many companies, finding the right corporate lawyers means using a range of firms.
A prime example is LionOre Mining International Ltd.
Stephen Power and Neil Fearis at Fearis Salter Power Shervington provide general corporate and commercial advice, Chris Humphry at Hunt & Humphry handles Native Title matters, Ian Curlewis at Phillips Fox advises on employment and workplace relations matters, while Paul Wright from Wright Legal handles banking and finance.
LionOre’s general counsel Australian Operations, Mark Rodda, said the company sought the best people for each task. He added that LionOre also put a high value on the relationships it has built with its legal advisers.
