GE drops e-bidding for US adviser overhaul
General Electric (GE) has completed an overhaul of its US panel of advisers, ditching 44 firms and adding 12 new names to the roster. The international conglomerate, which has one of the largest in-house legal departments in the world, has axed 15 litigation firms and 13 US regional firms - including Armstrong Teasdale and Fox Rothschild - from its from its roster, which handles all of GE's legal work in the US.
March 23, 2007 at 01:11 PM
2 minute read
General Electric (GE) has completed an overhaul of its US panel of advisers, ditching 44 firms and adding 12 new names to the roster.
The international conglomerate, which has one of the largest in-house legal departments in the world, has axed 15 litigation firms and 13 US regional firms – including Armstrong Teasdale and Fox Rothschild – from its from its roster, which handles all of GE's legal work in the US.
Paul Hastings Janofsky & Walker and Shearman & Sterling retained places on the panel – which is divided into categories across a number of practice areas – but are thought to have been handed diminished roles.
Other major US practices returning to the panel include Sidley Austin and Weil Gostshal & Manges, as well as Miami firm Astigarraga Davis and Los Angeles outfit Daigle Fisse & Kessenich.
Canadian leader McCarthy Tetrault has been added to the panel.
GE dropped its controversial e-bidding process for the latest review, which was led by managing counsel Janine Dascenzo. The e-bidding system, pioneered by GE general counsel Brackett Denniston when he last revised the company's roster in 2004, was designed to drive down costs and had firms openly bidding against each other online.
A GE spokesperson told Legal Week: "We decided not to use the e-bidding method this time round. This review is a natural evolution of what we achieved last time."
Panel firms have pledged to offer GE alternative fee arrangements where possible and will provide a regular core team of lawyers who will advise on any GE work their firm receives.
The latest contracts carry four-year terms – up from two years after the previous review – although panel advisers must renegotiate reduced fees halfway through the agreement.
UK firms to benefit from the review include Allen & Overy (A&O) and Clifford Chance, which were both appointed to GE's new global aviation finance roster. A&O has also landed a place on the energy project finance panel.
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