Dewey Ballantine is in talks to collaborate with Italian firm Galgano and take on a team of lawyers from the boutique firm.

The news comes as it emerges that Allen & Overy (A&O) has lost its second high-profile Italian partner in less than a month with local banking and finance head Giancarlo Castorino quitting the City giant to join Marena Bonvicini e Ludergnani.

The talks between Dewey and Galgano, which are at an advanced stage, could see the New York firm hire a team of fee earners from the 40-lawyer Italian firm's Milan office. Founding partner Francesco Galgano – an academic and corporate and banking lawyer – and his son Federico, the firm's co-managing partner, are not among the lawyers in talks to join Dewey.