Imperial Tobacco Keeps Favoured Firms Close for Adviser Review

Source from:  Legal Week  09/06/2013

Imperial Tobacco is to conduct an informal review of its external legal advisers in the coming weeks, following the conclusion of the FTSE 100 company's financial year.

Long-term advisers to Imperial, which include Allen & Overy for corporate work and Ashurst for litigation and competition matters, are expected to be retained, though the company said it would also look at other firms where necessary.

Imperial also regularly turns to Bristol-based trade mark attorneys Stevens Hewlett & Perkins and Simmons & Simmons on intellectual property matters, and uses several other firms close to its Bristol headquarters including Osborne Clarke and TLT.

The review – which will not involve a competitive tender process – is being led by chief legal and compliance officer Adrian Welsh, who heads a 10-strong in-house team.

Welsh said the team has in recent years developed closer relationships with core advisers, rather than working with a large pool of law firms.

"We'll kick the tyres hard each year to make sure we can look each other in the eye and know we are getting the best from our legal advisers," he commented. "We constantly want to test something and look at different firms' offerings."

He said the review would provide an opportunity for "open and frank conversations about billing and arrangements for specific matters".

"I make no concession for the fact that I prefer face-to-face arrangements and with some law firms that is quite tricky," Welsh added.

"Staying in contention for future work is a case of understanding their business and commercial objectives and offering a first-rate service," said Ashurst competition partner Nigel Parr, who in 2011 advised the company in its successful appeal to the Competition Appeal Tribunal, overturning a £112m fine for price-fixing charges.

Key mandates for A&O include advising on Imperial's €12.6bn (£10.6bn) takeover of Spanish tobacco rival Altadis in 2008.

Welsh joined Imperial from Ashurst in 2002, taking up the head of legal role in 2007. He reports to corporate affairs director Matthew Phillips, a former Linklaters partner who joined Imperial in 2004. Enditem