The City could be set for a wave of merger discussions, with Wragge & Co joining firms such as Denton Wilde Sapte in confirming that it is open to a tie-up with another firm.

The Birmingham heavyweight said it would consider a union to boost its presence in London and through this internationally, but stressed that it is not actively pursuing a merger.

The news comes after Legal Week revealed last week (5 June) that top 20 City firm Dentons has held merger discussions with US practice Squire Sanders & Dempsey.
The two firms have met at management level to discuss the possibility of a union, with expectations a deal could be put together as early as the autumn.

The talks are at an early stage. However, Dentons has been looking to broaden its coverage in emerging markets while Squire Sanders is looking to widen its UK and European capabilities. Dentons chief executive Howard Morris declined to comment specifically on Squire Sanders but said: "We would consider a merger proposal if we thought it would help us achieve our goals."

The discussions underline expectations that a number of firms are gearing up to secure opportunistic mergers during the downturn. Last month Hill Dickinson acquired commodities boutique Middleton Potts, while Speechly Bircham recently took over West End firm Campbell Hooper. Manches, LG and McGrigors are among the other firms cited as potentially interested in mergers, while CMS Cameron McKenna floated the idea of a UK merger this time last year.

Wragges senior partner Quentin Poole said: "The downturn is unpleasant but it does mean there are opportunities for hiring and for merging."

Richard Masters, managing partner at McGrigors, which acquired litigation boutique Reid Minty last year, said: "We are not actively looking for anything but if an interesting opportunity came along that fitted with our business and clients then we would be happy to take a look."

Additional reporting by Claire Ruckin.