IFLR 1000
The Guide to the World's Leading Financial Law Firms

The Slovak Republic has not witnessed, in the last twelve months, a surge in M&A activity. Nevertheless, the market has not been lifeless, but deal flow occupies a space on the slower side of steady. "The big deals haven't really come to the market and there's not much going on, but it's better than two or three years ago when everything dried up," one partner says. Nevertheless, optimism reigns when lawyers direct their attention to the deal pipeline.

Many are optimistic about the government's plans for further privatisation in the near future. "They have decided that state owned companies [are] to be privatised...the wave of privatisation will start in spring, maybe soon, or fall. Maybe next year it will be the big topic," one partner says. Slovakia's new (centre right) premier Iveta Radicova's privatisation package announced the denationalisation of six state-run heating utilities and the potential admission of a strategic business partner into Rail Cargo and Bratislava Airport. "Heating plants in six of the largest cities will be sold later this year. The expected volume will be between €150-200 million, privatisation of the Airport is [also] being prepared but this is not for sale but a long-term lease. Railway cargo companies is also intended to be privatised. We'll hit the magical €50 million threshold which is large on this market," one partner says. There has also been talk of the potential float of Slovak Telekom on the stock market.

In the last year, Slovakia's GDP growth was 4.7% and it is one of the fastest growing in Europe. However, M&A activity has not reflected this. Nevertheless, market players were reluctant to sell before and this is one tendency that has shifted as foreign investor's interest is on the up, as one partner describes: "The new investors; they are from Germany, United States, Russia, Austria, Italy [and] they are attracted to the automotive and chemical industry".

Private equity has also been a topic of great interest to commentators. "Private equity funds are looking at the market," one partner says, adding: "Private equity is coming back strongly". "They [private equity funds] are all very active but in a small economy, opportunities to invest are limited...there is money under pressure from their investors to invest, otherwise they're just sitting [on it]," another partner says.

The renewable energy sector was affected with movement in solar-based projects. However, Slovakia's experience was not as dramatic as the Czech Republic. "In Slovakia, the story was better [than Czech] because the government limited the amount of projects. But, the feed in tariff changed recently so it's not as profitable as the previous one," says one partner.

Finally, there have been reports of some consolidation in the banking sector, in real estate and construction. "Bigger players are buying smaller players," one partner said.

Allen & Overy consolidates its top tier position in the M&A ranking table. The firm's breadth of knowledge of the market and its ability to produce high quality legal representation puts it in good stead for the year ahead. "A&O know the market," one peer says, adding: "I know Allen & Overy lawyers. They are skilful, careful and have good communication." Vojtech Pálinkás is one such lawyer who has been drawn out for praise. "Pálinkás, he's one of their senior [members], running most of the M&A work," one partner says, with another adding: "At A&O, Vojtech Pálinkás is good at M&A, real estate and corporate." English qualified Hugh Owen is also respected by peers. "Their main M&A lawyer is Hugh Owen but his main role is outside the country. He's an excellent lawyer and one of the best M&A lawyers around," one partner says, with another adding however that "there is not enough appetite on the market for English law governed transactions". Moreover, some commentators have noted that the firm's M&A practice does not carry the aura of its banking and finance arm. "A&O is not a major rival. Last time we came across them was a year and a half ago. They tend to get picked by banks," one partner says.

Clients have been more than satisfied with their experience of the firm. "I'm very pleased with the work they did," one client says, adding: "I'm pleased on the corporate side [they're] highly experienced and managed the deal. They know how to run a deal. In general, I'm quite pleased with their ability". The names of Owen, again, and Martin Magál were met with praise. "Hugh Owen is very responsive and got the deal done. He's very pragmatic and effective in providing solutions," says one client, adding: "Communication...was very responsive especially Martin Magál...he tries to find solutions. It's the same for Hugh Owen."

Last year the firm advised Dexia Kommunalkredit Bank on the sale of a majority stake in Dexia banka Slovensko to Penta Investments, a leading Central European private equity fund. Additionally, the firm acted for four individual shareholders in the sale of a 70% stake in Azet.sk, an operator of Slovak web portals, to Ringier Axel Springer Slovakia, a subsidiary of Ringier Axel Springer Media.

Clients have been appreciative of Allen & Overy's extensive international network and innovation. "We know the network well...[they're] a good firm who're very well represented in many jurisdictions," one client says. Another adds: "They have the personality for each type of situation. They're very versatile and very smart in Slovakia."

Led by partners Ivo Bárta, who splits his time between Prague and Bratislava, and the locally based Marek Staron, White & Case is one of the leading M&A law firms in the Slovak Republic. "These are the guys we work against the most. They have good lawyers like Marek Staron," one partner says, adding: "They're active in M&A in the big deals. They're competitors on the big tickets." The firm is also building itself quite a presence in the region as it tries to match its success in the Slovak Republic at the regional level. "They're here to stay. They believe in being in most of the European capitals and have a reasonably sized office," another partner says.

Clients have been pleased with the services offered, one says: "They're reliable [and] deliver what is most important. I have full trust in their services. They jump in when needed."

The firm has had another successful year and continues to attract the market's leading mandates. It is currently advising Transpetrol with regard to its envisaged acquisition of the gas transit business in the Slovak Republic. To this end, the firm is advising on potential transaction structures and on the effects of Third Energy legislative Package passed by the European Parliament. Should this transaction materialise, at over €1 billion, it will be the largest acquisition in the country in the last five years. Additionally, the firm supported Yasheya and Goldenboat Holding, a group working in the trading of industrial and raw materials, in its planned €30 million MLB acquisition of a stake in Slovenské magnezitové závody, the largest magnesite mining and manufacturing plant in Central Europe, from a group of individual shareholders.

Driven by senior partner Katarína Cechová, Cechová & Partner's M&A practice has had a vibrant year and consolidates its position in the second tier. The firm has also bolstered its practice of late with a spate of new recruits. This includes the hire of partner Peter Bollardt from his independent legal practice, Bollardt. It is without doubt one of the leading domestic firms on the market. "Cechová also has strength in M&A but less than the financing area," one partner says. "Cechová does some M&A work," another partner says.

Clients have had no complaints with the firm's quality of service. "They're very well experienced [and] respond well. They're quick to service and come up with quick effective solutions," one client says.

Mandate wise, the firm has had an interesting year and was even involved in one of the largest M&A transactions in the Slovak Republic in 2010. It advised Skanska SK on the acquisition of a 100% stake in SkyBau, one of the leading Slovak reinforced concrete construction companies. It was involved in all the stages of the transaction, from the due diligence of the target company to documentation and merger clearance with the Slovak Antimonopoly Office. Additionally, the firm rendered support to an Israeli private equity company in the acquisition of a 100 % stake in two major Slovak operators of cinemas from a European cinema operator. Again, the firm participated in all stages of the transaction.

This year's big mover sees the former Slovakian Linklaters spinoff, Hillbridges, rewarded with a place in the second tier. Market commentators are confident of the firm's M&A capabilities and now it seems that the firm's rapid rise in stature is starting to pay dividends. "Hillbridges is clever and fits the bill. They are very active and are growing. A lot of local Linklaters experience sifted through...[they're] already getting a decent level of mandates, probably more than Kinstellar," one partner says. "Hillbridges has a good reputation," another partner says.

Clients have been full of praise for the firm's activities and did little to disrupt its cause for a higher ranking. "They assisted us in detail with another project. They're very proactive; we were pleased with the follow up and quality of work. It's a good team [and we can] rely on them to get the deal done," one client says, adding: "They're very responsive and stand out when compared to other firms we've worked with".

The firm has had an energetic year and successfully attracted some notable mandates. The firm advised Mars Capital group on its €20 million plus acquisition of a key portfolio of luxury residential and tourist real estate assets in Morocco. Furthermore, in consonance with the market trend towards solar based renewable projects, the firm advised Slovensky rastovy a kapitalovy fond (managed by investment bank, Wood & Co) with regard to the development, construction, operation and financing of seven photovoltaic projects. This in turn comprised one of the most significant photovoltaic portfolios in Slovakia.

In the world of Linklaters spin offs, Kinstellar is the best known of the lot. Market commentators have noted that the firm has higher proficiency in M&A related activity than in finance work. "I know them, Kinstellar are former Linklaters people. They are competent," one peer says. "Kinstellar is Linklaters. I've worked with them a few times. There are good people there," another partner says. "Kinstellar is fighting. It is doing some M&A [work]," yet another partner says.

Led by managing partner Patrick Bolf, the firm's deal list is impressive as it has had another solid year and consolidates its position in the second tier. The firm advised Washington Penn, a leading provider of polypropylene compounds and polyethylene products, on its acquisition of SPV (real estate) to build a production facility for polyolefin based materials. The client seeks additional expansion with a €70 million investment.

Cutting across M&A and finance, the firm has built itself a sound reputation for real estate work. "Kinstellar is quite common on real estate deals," one competitor says.

In the coming editions, Ruzicka Csekes/CMS Cameron McKenna will be looking to break into the top tier. The firm has had another successful year and enhances its claim to join the international firms in pole position. "CMS are quite active," one partner says. CMS Cameron McKenna does not style itself as a global firm but rather as a European firm and in many respects shares a similar strategy to White & Case. Furthermore, the firm is renowned for its CEE (Central & Eastern Europe) network and its association with Ruzicka Csekes produces one of the larger firms on the market. Nevertheless, as alluded to in the banking and finance section, there have been concerns with respect to its integration in the market. "CMS is not integrated. It is some type of cooperation but it's not fully integrated," one rival says.

Over the last twelve months, the firm has displayed its proclivity for cross-border work as it continues to attract the market's leading mandates. The firm was involved in the largest telecoms merger in what has been touted as the market's "Merger of the Decade". The €1 billion deal saw the firm advise Slovak Telecom on its merger with its subsidiary, T-Mobile Slovensko (whom the firm also advised). Before the merger, T-Mobile Slovensko and Slovak Telecom were the second and the third telecoms operators in Slovakia with T-Mobile providing mobile services and Slovak Telecom providing fixed-line services. The firm's advice helped create the largest telecoms company in the country. Additionally, the firm advised Metlife, the largest life insurer in the US, on the Slovak aspects of its $ 15 billion acquisition of the life insurance business of Alico (American Life Insurance Co).

Cernejová & Hrbek has history and a strong domestic presence to its name. "They've been in the market for a long time [but] there's not a lot of M&A work," one partner says, adding: "They do low level M&A work unless there are privatisations. You don't get a lot of work here unless you have cross-border capacity." "Hrbek [Milan Hrbek] is a well-known dispute resolution lawyer," another partner says. In light of the planned spate of privatisations, Cernejová & Hrbek, backed by experience, has the potential to be very busy in the near future.

Dedák & Partners advised Merck Sharp & Dohme IDEA on Slovakian legal matters of its cross-border acquisition of Schering-Plough. This included counselling on the legal entities integration. The firm also advised Photon Energy with regard to its photovoltaic power plants acquisition. The advice was wide ranging and included the structuring of the transaction, due diligence, drafting of transaction documentation, negotiation and post-closing support. "Dedák is good," one partner says.

Hamala Kluch Víglasky advised Johnson Controls International as the seller and Johnson Controls Lucenec as a purchaser of an electronics business as a going concern of its Slovak Automotive division. Additionally, the firm was involved in the related restructuring of Johnson control's automotive activities in Slovakia by merging Johnson Controls Trencín and Johnson Controls Bratislava into Johnson Controls International. This multifaceted transaction included several transfers of shares, the sale of an enterprise and a company merger. The aggregate value of these activities extended beyond €400 million.

The large Czech firm, Havel Holásek & Partners breaks into the rankings this year and is one to watch out for on the Slovakian market. It has been very busy over the last year in attracting some high profile mandates and in picking up a number of notable recruits. In February 2011, the firm hired Peter Suba, from Squire Sanders & Dempsey, as the first partner at the Bratislava office. The firm also hired the reputable managing associate Jozef Semancin from Hamala Kluch Víglasky. The firm advised Ceskoslovenská obchodná banka / KBC on the sale CSOB, a leading pension fund administrator in the Slovak Republic. The firm also advised Rhiag Group, the largest distributor of automotive parts in Europe, on the purchase of Auto Kelly group (a Czech and Slovak entity). "Havel and Holásek, look out for them. They are trying to expand here and got Squire Sander's lawyers. A lot of Czech firms have a small number of lawyers here," one partner says. "One Czech office is more visible," says another partner, adding: "Havel Holásek try to operate here but I'm not so sure how successfully because of activities from partners in Prague".

Peterka & Partners' M&A practice has been buoyed by the internal promotions of Jan Makara and Ondrej Majer to the partnership. The firm advised Descours & Cabaud, an international industrial supplies group with a group turnover of €4.5 billion, on its planned acquisition of a major Slovak detergents, industrial cleaning chemicals and protective garments manufacturer. "Peterka & Partners [are] our main competitors for French speaking clients [and they] are the same type of firm as ours," one competitor says.

PRK Partners is a highly reputable domestic powerhouse in the Czech Republic and it is looking to build itself market share in the Slovak Republic. One highlight for the firm this year saw it represent Ringier Axel Springer Media in its acquisition of a majority stake in Azet, the largest Slovakian internet portal, from its individual founders. This high profile transaction was the internet transaction of the year. "PRK Partners were acting for the buyer of an internet portal. They used the Czech partner from Prague [Martin Kriz] and he was good at M&A," one partner says. "PRK is heavily focused on clients from Czech. They have a strong corporate practice," another partner says.

Schoenherr Bratislava, along with Schoenherr Budapest supported Touax Group, a leading European freight wagon maintenance and leasing company, in a transaction aimed at the acquisition of shares held in a Hungarian and a Slovakian freight railcar operator and leasing company. To this end, the firm conducted due diligence, provided transactional advice and prepared transaction documents. "Schoenherr has got solid operations in a lot of CEE (Central & Eastern Europe) [countries]. They're not well known in Bratislava," one partner says. "I know Kovár [Stanislav Kovár] and he's a good lawyer," another peer says, adding: "After Freshfields closed, [the fact they] got him is a plus."

Established in 1991, Squire Sanders & Dempsey was the first US based practice to set up operations in Bratislava. However, the office was dealt a hefty blow this year with the loss of corporate partners Adrian Barger and Roman Prekop who went on to establish their own boutique, Barger Prekop Attorneys. This year, the firm has slipped a tier from the second rung as they look to rebuild. It recently hired Tatiana Prokopová as a European partner specialising in real estate in Bratislava, and time will tell whether the firm will be able to join the upward stream again. "There is no reason for Squire to stay in tier two. They've always been strange on this market. Three of their most senior local lawyers left [the third being Peter Suba]. All the local partners have gone. They all left," one partner says. "Squire hired some new lawyers, they're trying to. They're not so visible but were very visible at the time of high privatisations," another partner says.