O'Melveny & Myers is launching a London litigation and arbitration practice with the hire of two partners from Watson Farley & Williams.

The US firm is bringing in Watson Farley international litigation head David Kavanagh, together with fellow contentious partner David Foster.

Kavanagh, whose practice focuses on advising investment banks and other financial institutions as well as arbitration in the energy sector, will head up the new group for the Los Angeles giant.

The hires, which bring O'Melveny to nine partners in the City, are the first partner-level appointments in London since the firm brought in former Ashurst corporate partner Chris Ashworth at the end of 2005.

The pair are due to start at their new firm on 16 July.

O'Melveny's City office has previously focused on corporate work and private equity, acting on deals including the listing of AP Alternative Assets, managed by Apollo, and the recommended takeovers of BAA and Associated British Ports.

Earlier this year the firm lost City-based corporate counsel Matthew Doughty to Addleshaw Goddard, while private equity partner Andrew Carpenter left for Addleshaws last autumn.

Ashworth, who is co-managing partner of O'Melveny's London office, said: "The firm decided late last year that we wanted to create a major arbitration presence in London and Europe and this is a strong team with a good reputation."

Firmwide arbitration head Steven Smith added: "Strengthening our global arbitration practice is a key priority in our firm's strategic plan."