Graham & James Discusses Merger With Reid & Priest

Graham & James of San Francisco and New York-based Reid & Priest are in early merger talks that, if consummated, would make the combined firm the fifth-largest law firm in California and one of the top dozen, in size, nationally.

The firms have confirmed the ongoing negotiations but say it is too early to discuss details, such as where the firm’s headquarters would be after a merger.

Graham & James’ forte is international law. It represented, for instance, Japanese-controlled California First in its 1988 acquisition of Union Bank. Graham & James has 385 attorneys; its 96-attorney office in Los Angeles is one of nearly 20 domestic and foreign branch offices. It derives more than 50% of its clients from overseas.

Reid & Priest has nearly 200 attorneys and a branch in Washington. About 25% of its client base is overseas.

Attorneys within the firm said the merger would give the San Francisco firm an important presence in New York and allow it to offer its clients greater financial services specialties.

Although there has been of late a spate of mergers between mid-size law firms and especially acquisitions of smaller firms by large ones, mergers between firms of this size are infrequent.

A Graham & James-Reid & Priest merger, several attorneys said, could prove challenging because of perceived differences in “culture”--a significant component in the operation of law firms. Graham & James officials said corporate culture is one of the factors, along with potential conflict of interests between clients, being reviewed in the merger discussions.