Cadwalader Talks Merger With Alston & Bird, Hires Davis Polk (1)

Cadwalader Wickersham & Taft is discussing a merger with Alston & Bird and has hired Davis Polk & Wardwell to advise on a merger deal.

Alston & Bird is among firms Cadwalader has approached to discuss a merger, according to three people familiar with the matter who requested anonymity because the talks are private. Cadwalader engaged Davis Polk to work on the legal aspects of a tie-up, according to two of the people.

Cadwalader ramped up merger interest during a year of precipitous losses. Alston would gain the name-brand recognition of Wall Street’s oldest law firm and access to a well-regarded team of bank and fund finance lawyers by combining with Cadwalader.

Cadwalader, reached for comment, said it has been approached by firms about a merger but didn’t address its engagement of Davis Polk or talks with Alston & Bird.

“As every top firm does, we regularly evaluate our strategy to further capitalize on our market-leading strengths for our clients,” the firm said in the statement. “We have been approached by many top-tier firms for years, and that continues.”

Davis Polk and Alston & Bird didn’t immediately return requests for comment.

Alston & Bird, itself more than 100 years old, has grown beyond its home state of Georgia through office openings in Washington DC and Dallas and mergers with firms in New York, Los Angeles, and Charlotte. It is roughly twice the size of Cadwalader in terms of 2024 revenue and number of lawyers, according to data published by the American Lawyer.

A tie-up with Alston & Bird could prove to be a lifeline for Cadwalader, which has lost nearly one-fifth of its partners this year. The nature of the exits—senior partners in core practice areas such as finance and capital markets—are most damaging to the 233-year-old firm because the business those lawyers brought in is difficult to replace, analysts have said.

In its statement, Cadwalader said its client relationships are healthy. During the first three quarters of the year, the firm added 13% more new client relationships and opened 20% more new matters compared with the same time in 2024, the statement said. “The firm has added more than 75 new attorneys this year and is actively hiring to keep up with ongoing client demand,” the Cadwalader statement said.

Davis Polk, meanwhile, has played a prominent role as a dealmaker for at least one other large law firm tie-up. The firm advised Shearman & Sterling when it merged with Allen & Overy, Davis Polk said in a 2023 statement.