Who’s merging with Weil?

{"text":[[{"start":1.68,"text":"One thing to start: SpaceX and Tesla are studying a deal to unite Elon Musk’s two public companies in a multitrillion-dollar combination that would be the largest merger of all time."}],[{"start":null,"text":""}],[{"start":2.18,"text":"In today’s newsletter:"}],[{"start":2.68,"text":"The big M&A drama in Big Law"}],[{"start":3.18,"text":"AIX’s disillusioned investors"}],[{"start":3.68,"text":"Yacht marina mania"}],[{"start":17,"text":"The merger putting Big Law into a frenzy"}],[{"start":20.84,"text":"In the normal order of things, DD reporters ring up bankers and lawyers when we start to hear whispers of a transaction."}],[{"start":27.28,"text":"But normalcy has been upended this week as our phones are the ones blowing up with messages from Big Law partners desperate for the answer to one question: who is Weil, Gotshal & Manges going to merge with?"}],[{"start":39.56,"text":"The saga started earlier this autumn when the FT and other publications reported that Weil’s leaders were contemplating a merger after an exodus of talent. Among the high-profile departures were the firm’s best-known US corporate dealmaker Michael Aiello, who announced last month he was taking five partners with him to Cravath, Swaine & Moore."}],[{"start":58.92,"text":"At the time, Weil made it clear that its senior leaders were receptive to a tie-up, saying publicly that it was always open to opportunities."}],[{"start":67.04,"text":"In recent days Weil told some of its partners that the firm was in serious talks over a merger, people familiar with the matter told DD. But Weil didn’t say who the partner was, setting off a frenzy of rumours and denials as everyone in Big Law raced to confirm a name. The identity of the potential merger partner is a closely guarded secret at Weil, and only a small circle of leaders knows who it is."}],[{"start":90.12,"text":"Lawyers might have to get used to the drama as firms undergo a consolidation wave."}],[{"start":94.04,"text":"There’s already been a number of transatlantic deals, and some smaller firms are starting to realise that amid expensive talent wars, they’re only a few partner defections away from trouble. Smaller players also see M&A as a way to begin to close the gap with the behemoths, Kirkland & Ellis and Latham & Watkins, especially as bigger firms have the advantage of spending large sums on AI adoption."}],[{"start":115.8,"text":"Rival firms are trying to poach whole teams out of Weil, while some of its stars say they are waiting to see how things play out. The risk for Weil is that the rumours create more turmoil and uncertainty, prompting more partners to leave — and making the firm a less attractive merger partner."}],[{"start":133.2,"text":"Investors wake up from a Dubai dream"}],[{"start":135.6,"text":"For sky-high investment returns, look no further than an office on the 146th floor of the world’s tallest skyscraper."}],[{"start":143.78,"text":"That was the promise that AIX Investment Group made from its glamorous pad in Dubai’s Burj Khalifa, attracting thousands of investors with guaranteed returns of up to 30 per cent — and a panoramic view of the fast-growing Gulf entrepôt from its terrace."}],[{"start":159.28,"text":"In the heady atmosphere of entrepreneurial Dubai, some investors “believe that here anything really is possible”, said Steve Cronin, a financial coach and founder of DeadSimpleSaving.com."}],[{"start":171.02,"text":"But many of AIX’s investors are now pursuing legal action against the company, which stopped paying coupons last year and asked clients on Monday to consider supporting a court-led restructuring of the business."}],[{"start":183.06,"text":"To generate returns, it had placed high-risk bets on commodities, foreign currencies and digital assets, according to a company adviser and former employee. And after it stopped payments, management first blamed banking constraints, then geopolitical turmoil, asking investors for patience as they tried to reverse losses and liquidate assets."}],[{"start":203.72,"text":"It is a sharp fall from grace for a group that previously advertised on Dubai government-owned airline Emirates, bought motor-racing teams and hosted footballing legends including Brazil’s Ronaldo at its Burj Khalifa office."}],[{"start":216.58,"text":"The scandal has also raised concerns about investor protection in Dubai, which has projected itself as a low-tax haven for millionaires."}],[{"start":217.08,"text":"A posh new infrastructure asset"}],[{"start":224.24,"text":"DD is always ready to travel to the front lines of dealmaking. Even if that means heading to the Greek island of Corfu."}],[{"start":233.36,"text":"Off Corfu’s coast, the Gouvia marina occupies the site of a former Venetian shipyard. The marina can dock 1,300 boats including multistorey yachts, and on the first Friday of September — a perfect day for sailing — there was hardly a spare berth in sight."}],[{"start":249.4,"text":"Demand for space at marinas such as Gouvia is rising as the number of yachts ticks up by several thousand every year. It’s challenging to build a new marina due to environmental and regulatory barriers. Even when development begins it can take five to 10 years to complete construction."}],[{"start":265.8,"text":"That has turned marinas into a hot asset class with scarce supply and resilient demand, DD’s Ivan Levingston reports in a magazine feature this week. The likes of Blackstone, Stonepeak and other big investment firms have flocked to the sector."}],[{"start":279.68,"text":"Earlier this year the private equity firm CVC sold D-Marin, which owns the Gouvia marina and more than 20 others in the Mediterranean, for more than €1bn in a deal that underscored the sector’s appeal."}],[{"start":292.04,"text":"“It’s almost a bit like Wimbledon, and then there isn’t even a shortcut,” said Bob Hoogendoorn, who led McKinsey’s yacht practice before this year becoming a founding partner of the marina group Balmaris. “When you own a yacht, the last thing you want to compromise on is your boating spot.”"}],[{"start":308.16,"text":"While the Mediterranean and US are the capitals of the marina industry, a new wave of more adventurous yacht owners and the proliferation of boat ownership across the globe is driving the building of ports in places like Hong Kong and Abu Dhabi."}],[{"start":320.64,"text":"But for now, “as soon as you go outside the Mediterranean and Caribbean . . . they’re few and far between in most countries,” said former superyacht captain Chris Durham. “You wouldn’t want to take your Lamborghini or Ferrari to a truck stop.”"}],[{"start":321.14,"text":"Job moves"}],[{"start":333.08,"text":"Apollo has named Meyer “Micky” Malka, founder of Ribbit Capital, to its board of directors."}],[{"start":338.92,"text":"Deutsche Bank has hired Paolo Banfi and Fabrizio Bassano as managing directors in its bank for entrepreneurs within wealth management in Italy. They join from Mediobanca."}],[{"start":349.36,"text":"Republican lobbyist Joel Kaplan is stepping down as Meta’s global affairs chief after a years-long stint as Mark Zuckerberg’s top political adviser."}],[{"start":357.4,"text":"Paul Weiss has hired Max Oppenheimer and Jamie MacDonagh as private equity M&A partners in London. They join from Weil, Gotshal & Manges."}],[{"start":363.68,"text":"LionTree has named former Xbox president Sarah Bond as a senior adviser."}],[{"start":364.18,"text":"Smart reads"}],[{"start":370.68,"text":"Warning signs Are investors “hysterically over-extrapolating” from CoreWeave about the entire AI investment spree? FT Alphaville entertains the argument, but isn’t entirely convinced."}],[{"start":382.6,"text":"AI insurance Trading volumes are surging for credit default swaps as investors seek protection for their portfolios in the event the AI boom unravels, the FT reports."}],[{"start":392.96,"text":"Precious metal One industry group is responsible in effect for ensuring that “dirty” gold stays out of the market. But it has been coming up short, The New York Times found in an investigation, as the surging price of gold has incentivised sketchy mining operations."}],[{"start":393.46,"text":"News round-up"}],[{"start":408.64,"text":"Sullivan & Cromwell to double London office space as US firms shake up UK legal market (FT)"}],[{"start":415.2,"text":"NatWest tells 30,000 staff to spend more time in office (FT)"}],[{"start":420.16,"text":"Insurers face losses as riots in France become ‘like natural catastrophes’ (FT)"}],[{"start":425.4,"text":"Netflix gives downbeat outlook as streaming hits dry up (FT)"}],[{"start":430,"text":"NFL taps General Atlantic to set up venture for sports investing (BBG)"}],[{"start":434.68,"text":"Michael Bloomberg gives Democrats $80mn in 11th-hour midterm push (NYT)"}],[{"start":null,"text":""}],[{"start":null,"text":""}],[{"start":440.52,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1792778682_5255.mp3"}