Hammonds' Italian ally Rossotto & Partners is set to boost its ranks with the addition of a 20-strong team including two partners from the Milan office of Allen & Overy (A&O).

Corporate partner Mario Colombatto and banking partner Giovanni Luppi are quitting the magic circle firm to join Rossotto, along with tax partners Quirino Imbimbo and Alessandro Gulisano from Italian independent Macchi di Cellere Gangemi. Imbimbo and Gulisano are both former A&O lawyers.

The partners will be followed by associates from both firms.

The combined 20-strong team will join up with Rossotto in September, creating a new firm known as R&P Legal, with Colombatto as managing partner and Riccardo Rossotto remaning as senior partner.

R&P Legal will register as Rossotto Colombatto & Partners due to local Bar rules.

The union will significantly strengthen Rossotto, which currently has 23 partners. The firm will focus on corporate, banking, tax, media law, intellectual property, litigation, labour and environmental law.

Rossotto, which has offices in Milan, Rome, Turin, Bologna and Aosta, is set to continue to work with Hammonds. The alliance, which was formed in 2001, was extended in 2007 for an additional five-year period.

Hammonds chairman Peter Crossley said: "We will be maintaining our existing relationship with the firm. This move is great news for Hammonds as it will significantly beef up the corporate, banking and financial services offering in Italy. This will increase the ability for us to refer work to our Italian colleagues and vice versa."

Colombatto commented: "We plan to build on the strength of independent Italian law firms which have been more resilient in the economic downturn. We are starting out with a very strong team aiming at competing with the Italian market leaders. We will be a full-service firm with a clear international outlook."

A&O's global restructuring programme is understood to have seen around 30 lawyers laid off in Italy, while in recent months around 20 further lawyers have left the firm voluntarily.

In May, Gianni Origoni Grippo & Partners, recruited a large group of A&O lawyers including Italian litigation head Alberto Nanni and environmental head Antonella Capria.