Predators in £342m swoop on UK law firm 

Private equity bidders have swooped on Britain’s biggest stock market-listed law firm.

In the latest sign that buyout groups are once again circling the UK stock market, London-based Inflexion Private Equity Partners approached DWF Group regarding a possible 100p-a-share offer worth £342million.

A deal would spark a chunky pay day for the company’s top lawyers, including chief executive Sir Nigel Knowles, whose stake would be valued at £2.68million.

DWF shares jumped 34.1 per cent, or 22.3p, to 87.8p – although they are below the offer price and the 122p they floated at in March 2019.

DWF, which is based in Manchester and has offices across Europe, North America, the Middle East and Asia, provides legal and business services to companies across sectors, including financial, transport and energy and natural resources. It reported annual revenue of about £350million last year.

DWF said it was ‘in discussions’ with Inflexion over a deal that would see shareholders receive 97p a share as well as a dividend of 3p. 

The company said that, should such an offer be made, ‘it would be minded to unanimously recommend it’ to shareholders.

‘Discussions between DWF and Inflexion are ongoing and there can be no certainty that an offer will be made,’ it added.

The talks come amid consolidation among law firms.

UK ‘magic circle’ giant Allen & Overy has announced plans to merge with New York’s multi-national group, Shearman & Sterling, to create one of the world’s largest law firms, with more than £2.5billion of revenues.