Expectations of an impending alliance between Heller Ehrman and Baker & McKenzie have hit a dead end, following reports that Heller has called off merger talks with the international behemoth.

 

Although the two firms were reportedly on track to join forces, it’s believed that conflict over changes to Heller’s internal management structure is to blame for the sudden halt in negotiations. A union with Bakers would have potentially created America’s largest nationally-headquartered firm, with a turnover of around US$2.5bn.

 

Both firms have steadfastly refused to comment on the issue, but it seems there are no hard feelings. Indeed, the two firms recently worked together on a US$1.25bn deal – Heller advising Singapore's sovereign wealth fund on an energy investment in a Bakers client, the Dallas-based Oncor Electric Delivery Company.

 

Bakers is unlikely to be excessively troubled about the merger collapse. Revenue for the US giant just surpassed the US$2bn mark for the fiscal year to the end of June 2008, and the firm reported an overall profit increase of almost 20%.