TOGETHER WITH

Table of Contents

• EDITOR’S RAMBLE 🗣

• FEATURED REPORT 📰

• IN OTHER NEWS 🗞

• AROUND THE WEB 🌐

• STUFF THAT MIGHT HELP YOU 👌

EDITOR’S RAMBLE 🗣

It’s hard to grasp what commercial law firms actually do for their clients.

I think there are 2 reasons for this.

1. They do *a lot* of different things, and

2. They give labels to the work they do that are confusing if you’re not in that world.

So, I made this video to explain what commercial law firms actually do (in 6 minutes).

Reply to this email to let me know your thoughts!

- Idin 

FEATURED REPORT 📰

📺 Canal+ is a boost for London (and law firms)

What’s going on here

The French media company Canal+ is going public in London at a valuation between €6 billion and €8 billion. This will be the largest Initial Public Offering (IPO) on the London Stock Exchange since 2022.

Why has Canal+ decided to list?

Vivendi (Canal+’s parent company) has decided to spin off Canal+ to be completely separate. It’s mainly doing this to show how strong a business Canal+ is on its own.

See, Vivendi is a large group with many different businesses (including publishing, event tickets and online video hosting). By separating Canal+, the aim is for investors to clearly see its performance as a pure media company — without being mixed into the whole group of businesses. That will (they hope) attract new investors.

It’s like taking your best piece of china out of a crowded cupboard, cleaning it up, and putting it on a shelf in the living room. Now, people can see its value more clearly — and they’re more likely to buy it from you!

Why is this a big deal?

London has been struggling in the IPO markets recently (even British companies have decided to list in New York instead).

So, it’s been trying to become a more attractive place to list. Recently, the London Stock Exchange (LSE) changed its rules to make it less burdensome (and cheaper) for new companies.

So, it’s a positive sign that we’re about to see this — plus, it’s way bigger than the largest IPO of 2024 so far (Raspberry Pi went public at £540 million).

Most importantly, it shows there’s new confidence in London’s ability to attract major global listings.

How does an IPO work, exactly?

Well, an IPO is when a private company sells shares to the public for the first time. It’s a way for the company to raise money and grow, while also letting people invest in its future.

Here are the parties involved (and what they each do).

1. 🏢 The company: This is the business going public – in this case, Canal+. The company prepares for the IPO by getting its finances in order, deciding how many shares to sell, and setting a target valuation.

2. 💼 Sponsors (or underwriters): These are investment banks — they’re Barclays and BNP Paribas in this deal. They help set the price for the shares, and sell them to investors. Sponsors also take on some risk because they guarantee all the shares will actually sell (they do this by committing to buy any unsold shares at a predetermined price).

3. 📜 Law firms: Cleary Gottlieb is advising Canal+, and White & Case is helping the sponsors. Law firms make sure the IPO complies with all the regulations, draft the legal documents, and advise on risks.

4. 📈 Stock exchange: The IPO takes place on a stock exchange, like the LSE here. It’s the marketplace where shares are bought and sold once the company is public.

5. 🔍️ Regulators: These are the financial authorities that oversee the IPO process, ensuring it’s fair and transparent, so investors are protected. In the UK, that’s the Financial Conduct Authority (or ‘FCA’).

The IPO process typically involves months of preparation. All these parties ensure everything’s ready and, once the shares get listed on the exchange, the public can start investing.

Which law firms are involved?

Cleary Gottlieb is advising Canal+ from its London and Paris offices.

White & Case is acting for Barclays and BNP Paribas, the joint sponsors of the deal.

Why should law firms care?

London’s lost some of its appeal as a hub for public listings in recent years (last year Arm, a big British company, listed in New York over London). But this IPO is a win for the LSE, showing it can still land big deals despite tough times.

And IPOs are a huge source of revenue for commercial law firms.

How much do law firms make on IPOs? It depends, but fees can range from £100,000 to £10 million, according to Finerva.

Law firms play a central role in IPOs, taking on tasks such as:

• drafting the prospectus (a key document for investors outlining the company’s business and risks),

• conducting thorough legal due diligence (to uncover issues the company should know about before going public), and

• preparing all the necessary agreements (like the underwriting agreements).

The lawyers work closely with underwriters to make sure the company’s complying with the LSE listing rules.

And all of that work translates to big fees.

So, that’s why commercial law firms will be hoping the Canal+ listing signals a rebound for the London IPO market — they’ll hope there are more high-value deals to come.

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IN OTHER NEWS 🗞

• 🧠 Brexit has shaken up intellectual property rules in the UK. Since Brexit, businesses are dealing with big changes, like losing access to the Unified Patent Court (UPC) and facing new hurdles in EU trade mark protection. This article explains it well — and goes over how the UK is now behind the EU on AI regulation too.

• 💰 US firms like Cravath and Paul Hastings are matching Milbank with year-end bonuses up to $140,000. Associates in the US and UK can expect payouts ranging from $15,000 to $115,000, plus special bonuses between $6,000 and $25,000.

• 💻 The US Department of Justice (the government agency that enforces laws) wants to shake up Google’s search dominance. They're suggesting Google sell its Chrome browser and limit how it uses Android. This is part of the biggest US competition case since Microsoft in 2000. The goal is to stop Google from using its search and browser data to keep control of the online ad market.
  

  

  Source: Chartr

AROUND THE WEB 🌐

• 📏 Extremes: The world's tallest and shortest women, 7ft and 2ft tall, met for tea in London for Guinness World Records Day

• 💬 Polyglot: Microsoft Teams meetings will soon let users speak in different languages in real time

• 🍌 Art: A duct-taped banana artwork sold for $6.2 million, and the buyer’s planning to eat it

  

STUFF THAT MIGHT HELP YOU 👌

• 📹️ Free application help: If you're applying to commercial law firms, check out my YouTube channel for actionable tips and an insight into the lifestyle of a commercial lawyer in London.