Allens Arthur Robinson has played down the loss of M&A practice head Tim Bednall, who left the firm last Friday to join Mallesons Stephen Jaques.
Bednall's addition to the Mallesons team comes on the heels of the departure of well-known M&A partner Tony Bancroft. Bancroft left Mallesons on 21 January, starting at Goldman Sachs JB Were a day later.
An AAR spokesperson hit out at market rumours that Bednall's departure was linked to concerns over the firm's profitability. "The rumour doesn't make a lot of sense give that the firm's profitability has been increasing since the merger," he said.
"When you look at the departures we've had - there are two that've gone to rival firms. Tim [Bednall] and Simon Lynch to Baker & McKenzie (in June 2003). All the other partners who have left have gone for high profile in-house roles and remain very much friends of the firm ... It's just one of those things. He [Bednall] was unsettled."
ALB understands Bednall approached Mallesons. AAR managing partner Tom Poulton was not available for comment.
Key AAR partners to have left in the past two years include David Cohen in January 2003, to AMP Limited as general counsel; Tim L'Estrange in July 2003, to ANZ as its group general counsel; and former M&A practice head Peter Cameron in December 2001, to CSFB as chairman, Australian Investment Banking. AAR is the product of the 1 July 2001 merger of Allen Allen & Hemsley and Arthur Robinson & Hedderwicks.
AAR partners Ewen Crouch and Jon Webster will now head the firm's M&A practice, which topped the Thomson Financial legal adviser rankings for announced and completed deals (Australia/NZ involvement) in 2003.
Blake Dawson Waldron M&A partner Bill Koeck said Bednall would be a "fantastic addition" to the Mallesons team. "They're [Bancroft's] big shoes to fill, but he will definitely be a huge asset."
Bancroft said he did not think one person made a practice. "I'd been at Mallesons for 30 years. I felt I'd contributed sufficiently ...I think I've left the place in really good shape.
"I guess like a lot of M&A lawyers, one receives these approaches over the years. I just got this opportunity and decided I would take it. Now seemed to be the right time."
Games appointment
Despite the loss of Bednall, AAR has cause for celebration following its appointment as the official law firm and a sponsor of the Melbourne 2006 Commonwealth Games.
The firm announced the appointment to staff in its Melbourne office on Monday night, in the presence of John Harnden, chief executive of the Commonwealth Games Organising Committee.
AAR will work alongside M2006's in-house legal team on all legal issues connected with the Games.
Melbourne-based AAR partner Graeme Johnson said while the firm's appointment as official law firm of the Rugby World Cup 2003 had helped its Games bid, "we had a very good CV in sport and acting on events prior to [that]". Other major sporting events in which AAR has been involved include the Olympics, The Melbourne Cup, Formula One Grand Prix and World Cup Cricket.
Johnson said staff at the firm had greeted news of the appointment with excitement. "We've been lucky to have two unique opportunities within 12 months," Johnson said. "Being involved in a major event like this is terrific. It presents an enormous opportunity for younger people at the firm to get involved."
The bid process began in July last year, with AAR one of three firms shortlisted for the appointment.
The Melbourne 2006 Games will be held from 15 to 26 March 2006, with more than 4,500 athletes competing in 16 sports.