2 Law Firms Planning Merger

Two law firms boasting brand-name clients announced tentative merger plans Wednesday, a move that would create one of the nation’s largest law firms with 900 lawyers and more than $600 million in revenue.

The agreement between Pillsbury Winthrop of San Francisco and Washington-based Shaw Pittman is expected to be approved by partners from both firms.

Company officials said the deal would elevate the company to be among American Lawyer magazine’s top 20 firms.

The firm, to be named Pillsbury Winthrop Shaw Pittman, is expected to generate annual billings of more than $600 million from domestic and international offices.

Under the July 2004 rankings by the magazine, the combined firm would be listed as the 16th largest in revenue. New York’s Skadden, Arps, Slate, Meagher & Flom, which the magazine said reported $1.3 billion in revenue, was ranked first.

Mary Cranston, chairwoman of Pillsbury, said in an interview that she would lead the combined company from San Francisco.

Pillsbury Winthrop employs about 700 attorneys, while Shaw Pittman has 350. More than 100 lawyers are expected to lose their jobs when partners approve the merger deal in March, Cranston said.

“We will not be able to take everybody,” she said.

The merger, Cranston said, was part of Pillsbury’s quest to become more global and to firmly establish itself in Washington, where Shaw Pittman already has a strong presence.

“It would be obvious even to non-lawyers why that might be valuable,” Cranston said.

Aric Press, editor of American Lawyer magazine, said Pillsbury had been steadily branching out from its core California base.

“I can suspect that this is not the last thing that they do,” Press said.

Pillsbury’s clients include Wells Fargo & Co., ChevronTexaco Corp. and SBC Communications Inc. Shaw Pittman’s client roster includes Fannie Mae, American Express Co. and General Electric Co.