Eversheds is in talks to merge with German ally Heisse Kursawe Eversheds, as the firm launches a Berlin offering through the alliance.

The firms are discussing the possibility of full financial integration, with Eversheds having initially formed an alliance with Heisse Kursawe, the Munich arm of defunct German national Arcon, in 2005. The agreement marked the end of a six-year hunt by Eversheds for a German ally.

Eversheds chief executive Brian Hughes said: "Our strategy for growth is focused on increasing the depth and reach of our international operations. We are regularly in dialogue with firms around the world and this includes our German partner firm. As those discussions are ongoing, there is nothing further to say at this stage."

Heisse Kursawe Eversheds' clients include security provider Securitas and project management company DEGES. The firm has 26 partners.

Separately, the German firm has has launched in Berlin, giving Eversheds its third presence in Germany.

The office, which will be headed up by employment partner Stefan Kursawe, focuses on commercial law, particularly public law, procurement and real estate. The base sits alongside existing presences in Munich and Hamburg.

Kursawe said: "Berlin has become an obligatory location for commercial law firms and we have opened the office due to real client demand. As an economic area, Berlin has clearly gained enormous momentum and is the headquarter of several important authorities and associations.

"Berlin is also a vibrant city and we hope our presence in the region will also help attract potential new recruits as we continue to pick up new mandates."

The news comes as Bird & Bird and Taylor Wessing have both hired private equity partners in Germany, both of whom have previously worked at Skadden Arps Slate Meagher & Flom in the country.

Peter Veranneman, who left Skadden in 2010, has joined Bird & Bird's corporate team across Frankfurt and Duesseldorf from bondholder representative DGBA. Meanwhile in Munich, partner Walter Henle has joined Taylor Wessing as the firm's German private equity head. Both had initially joined Skadden from Baker & McKenzie 10 years ago.

Recent months have seen several firms review their presence in Germany. King & Wood Mallesons SJ Berwin is closing its Berlin offering in May as part of a strategic review of its German presence, while Sidley Austin confirmed earlier this year it has put its Frankfurt base under review. Last year, Shearman & Sterling closed its offices in Duesseldorf and Munich.