* Combined Hogan, Lovells practice to have 2,500 lawyers
* Proposal goes to a partnership vote in mid December
* Effective date of merger expected on May 1, 2010.
By Kirstin Ridley
LONDON, Oct 29 (Reuters) - Mid-sized London law firm Lovells and Washington-based stalwart Hogan & Hartson are close to securing a transatlantic merger that will catapult the practices into the global top 10 in terms of lawyer numbers.
After months of meetings between two firms' partners, Lovells and Hogan said on Thursday discussions were advanced to create a practice with combined revenues of $1.9 billion and around 2,500 lawyers in 40 offices across the United States, Europe, Asia, the Middle East and Latin America.
London's so-called "Magic Circle" of top lawfirms; Clifford Chance, Linklaters, Freshfields Bruckhaus Deringer and Allen & Overy, have long courted a significant U.S. footprint.
But culture clashes and differing compensation schemes -- often based on seniority in the UK and merit in the U.S. -- can pose a serious hurdle. Clifford Chance struggled for years after its marriage with New York's Rogers & Wells in 2000, losing partners that included star deal-makers.
Lovells and Hogan said combining forces would improve their ability to handle complex, cross-border work in all key international markets. J. Warren Gorrell Jr, the chairman of Hogan & Hartson, promised the deal would "preserve the collegial and team-orientated culture of each firm".
"We have very complementary areas of legal strength, such as in corporate, M&A (mergers and acquisitions), finance, regulatory law, dispute resolution and intellectual property," added David Harris, managing partner of Lovells.
Lovells and Hogan will put the merger proposal to a partnership vote around the middle of December. The effective date of the merger is expected to be May 1, 2010.
Profits at law firms dealing with the credit crisis and recession have stagnated as once-lucrative dealmaking remains scarce and corporate clients curb spending, forcing some practices to overhaul businesses and slash hundreds of jobs. Hogan's profit per equity partner (PEP), a key measure of profitability, fell to $1.16 million in 2008 while average partner profit at Lovells fell to 585,000 pounds ($962,000) from 661,000 pounds in its financial year ended April 30. (Editing by Rupert Winchester)