While merger talks between Hunton & Williams and Andrews Kurth Kenyon are becoming more serious, other law firms appear to be busily poaching lawyers not interested in the deal.

Two people with knowledge of the talks said Andrews Kurth would have better guidance by late February on whether the deal would go forward. One said partners would vote in February while the actual effective date of the merger may be farther off in the spring. However, two other sources said concerns remain over whether the deal can close.

The Internet domain names andrewshunton.com and huntonandrews.com were both registered on Dec. 18, according to public filings. It couldn't be immediately confirmed whether the law firms were responsible for those registrations.

See also: Texas Legal Market Remains Hot, Firm Expansions and Lateral Hires Continue

A spokeswoman for Hunton & Williams did not immediately respond to a request for comment. An Andrews Kurth spokeswoman said the firm was not able to comment.

Those familiar with the talks said Hunton, founded in Richmond, Virginia, is eager to swallow Andrews Kurth's Houston office in order to gain a toehold in the energy industry's Texas epicenter. Currently, Hunton's Houston office, which opened in 2005, lists only five attorneys, including three who are full time in Houston and two partners focused on labor and employment.

In comparison, Andrews Kurth boasts that its Houston base has about 220 lawyers—its largest office by head count—and it is a heavyweight in litigation and deals related to energy and oilfield services, energy infrastructure and private equity investments, among others.

A Hunton deal with Andrews Kurth would bring rainmakers in Houston such as G. Michael O'Leary, a leader of Andrews Kurth's corporate and securities practice. Andrews Kurth also has had a sizable presence in Austin with tech transactions and venture capital practices. But two sources said that key partners from the Austin office were resigning to join other firms.

Some familiar with the Texas firm believe Andrews Kurth may need the deal after significant lateral departures in the last year, and given the possibility of more partners leaving if it doesn't go forward. Andrews Kurth is also keen on Hunton, said one source, because it has a commitment that the Virginia firm won't cherry-pick lawyers from Andrews Kurth. The source also said Andrews Kurth would prefer a culturally compatible partner—both firms are venerable Southern founded firms—after saying no to potential mergers with others, including Chicago-founded Winston & Strawn.

Texas Moves

If the deal were to go forward, other law firms' poaching of Andrews Kurth's Dallas office, which has about 54 attorneys at last count, could leave a much-diminished office for Hunton.

As Texas Lawbook and ALM's Texas Lawyer reported this week, at least three rival firms appear poised to grow their Texas operations with the help of lateral moves from Andrews Kurth:

At least 10 lawyers from Andrews Kurth in Dallas are expected to join DLA Piper around Feb. 1, including partners Marc Katz, Rob Hoffman and Isabel Crosby. DLA Piper, now only with six lawyers in Dallas now, is also anticipated to add a couple of Dentons partners, including C. Michael Moore and Matthew Nickel, in a major push to expand the office, according to a person familiar with the moves.

Katten Muchin & Rosenman, which currently doesn't have a Dallas office, has also snagged a team from Andrews Kurth in the city, including Mark Solomon, managing partner of the Dallas office and a member of the firm's executive and policy committees, and J. David Washburn, according to a source with knowledge of the moves.

A third firm, White & Case, could also take some Houston corporate partners from Andrews Kurth, including Charlie Ofner and Chris Richardson. The firm has also hired Vinson & Elkins corporate partner Jay Cuclis to help start White & Case's first office in Texas, two sources said.

(Andrews Kurth and Katten Muchin declined to comment on the reported moves this week. A DLA Piper spokesperson didn't immediately respond to a request for comment, and a White & Case spokesman declined to comment.)

Andrews Kurth generated $289 million in revenue in 2016, a drop of 2.7 percent from the year before, while Hunton & Williams grew gross revenue 2.5 percent to $541 million, according to figures from The American Lawyer.

A look at both firms' head count over the last five years shows steady declines.

Andrews Kurth had 327 attorneys in 2016, down about 6 percent from 2011, while Hunton's head count stood at 661 attorneys in 2016, about a 12 percent drop in the same time frame, according to National Law Journal census figures. Meanwhile, profits per partner have steadily risen during the same five-year period for both firms, reaching $1.26 million at Andrews Kurth and $1.1 million at Hunton & Williams in 2016.

Both firm have generated similar revenues per lawyer, with RPL of $820,000 for Hunton and $885,000 for Andrews Kurth in 2016.

Brenda Sapino Jeffreys contributed reporting from Houston.