King & Wood Mallesons (KWM) lawyers are considering their futures following the news that Dentons has pulled out of a takeover of the firm's European arm, as partners continue to discuss moves to other firms looking to take on parts of the business.

It is understood that European and Middle East (EUME) tax co-head Gareth Amdor is in talks to join Reed Smith, along with a team of other lawyers.

One source close to the firm said partners are looking at "a mosaic of options".

Amdor, who has been a partner at the firm since 2005, is London tax head. Earlier this year, he unsuccessfully ran for the position of EUME managing partner.

He also heads the UK M&A tax function and the global employee incentives practice, and is chair of the firm's finance committee and a member of the remuneration committee.

In a statement, Reed Smith EUME managing partner Tamara Box confirmed the firm was talking to KWM partners.

She said: "I can confirm that discussions are at an early stage. As you can expect, when there is legal talent on the market of a high calibre, it is natural for a top global firm such as ours to be involved. We know that it is a complex and difficult time at KWM and so, out of respect, we do not feel it is appropriate to make any further comments at this time."

Meanwhile, KWM is discussing the future of its trainees with the Solicitors Regulation Authority (SRA) and the Law Society.

It is understood that a number of options are being considered, including the potential transfer of contracts to other firms and also the option for trainees due to finish in February to finish early.

An SRA spokesperson said: "It is standard practice to talk to any firm with trainees that closes sooner than expected, to make sure there is a smooth transition. That could be transferring their contract to a different firm, signing off early if the necessary standards have been reached according to the training supervisor, or making sure completed parts of training have been signed off correctly."

One management source at another firm told Legal Week that there had been a number of recent discussions among City firm's HR teams to consider taking on KWM trainees.

He said: "A number of firms are looking at stepping in to make sure people are taken care of."

KWM confirmed yesterday it is currently discussing options for parts of its EUME business to be bought with "a small number of interested parties".

Other firms that have been interested in taking on all or parts of KWM Europe include Winston & Strawn, KWM's own Asian arm, DLA Piper and Greenberg Traurig. However, all potential discussions about a single-firm takeover have now ended. This means the struggling European partnership is likely to be sold in pieces to a number of interested firms.

It is understood the business is aiming to secure deals by the end of this week.

Last week, sources at the firm said the EUME business was heading for a pre-pack administration, with negotiations already at an advanced stage.

Legal Week also revealed that KWM has updated its partnership deed to ensure that any tax losses are split fairly between current and former partners in the event of collapse.

The partnership is understood to have voted in the change earlier this month.

Issues for KWM's Europe branch came to a head in late October, following the resignation of four high profile London partners including former managing partner Rob Day and UK funds head Michael Halford, who are joining Proskauer Rose and Goodwin Procter respectively.

The exits forced the firm to put its recapitalisation plans on hold to reassess its financial situation, prompting a revised proposal with an additional bailout from Asia, subject to European commitment. It is understood that the firm informed staff and associates at meetings last month that they would guarantee salaries until January.

KWM declined to comment.