Reed Smith is in talks with US firm Thompson & Knight over a tie-up which could boost its lawyer headcount to around 2,000, reports The Am Law Daily.

Thompson managing partner Jeffrey Zlotky confirmed that the two firms are in "preliminary" discussions over a potential combination, but added that they have not yet reached the stage at which he would take the proposed deal to the full Thompson partnership.

Reed Smith managing parter Greg Jordan (pictured) said that he has talked with management at the Dallas-based firm several times about merging but confirmed Zlotky's assertion that the talks are "preliminary." Reed Smith also has not yet taken the matter to its full partnership, added Jordan.

Zlotky said that a number of firms seeking a presence in Texas have made merger inquiries in the past. Thompson has a total of 11 offices, including bases in London, Paris, Mexico and Algeria.

Jordan has spoken publicly about his desire to enter the Texas market and tap into the thriving energy practice many of the top local firms boast.

"There are a lot of things pulling us toward Texas," Jordan said, emphasising the importance of the state's energy market.

The combined firm would have nearly 2,000 lawyers, with about 1,500 of them coming from the Reed Smith side. Reed Smith posted profits per equity partner (PEP) of just over $1m (£633,000) last year, while Thompson recorded PEP of $855,000 (£542,000).

The Am Law Daily is a blog on law.com, Legal Week's US affiliate title.