Baker & McKenzie sees fewer Asia M&As, more litigation

SINGAPORE, Feb 16 (Reuters) - U.S. law firm Baker & McKenzie expects to see stronger Asian demand for litigation and advice in areas such as restructuring, even as corporate business begins to slow amid the global economic downturn.

"In those areas, we will definitely be seeking to add talent," the firm's Hong Kong-based Asia chairman, Poh Lee Tan, told Reuters.

Tan said bigger law practices were, in general, better able to ride out the economic slowdown, relative to investment banks, as legal disputes tend to rise in such periods along with demand for advice on compliance and corporate restructuring.

Business scandals also tended to increase during downturns as previously undiscovered problems surface, she added, citing the recent cases of alleged fraud involving U.S. financier Bernard Madoff and India's Satyam ComputerServices (SATY.BO).

For instance, Baker & McKenzie is currently investigating an alleged fraud at a recently acquired China unit of a large European multinational, which Tan declined to identify.

She said China remained a growth engine for Baker & McKenzie, one of the world's top three law firms in terms of lawyers and revenue, as corporate activity in the infrastructure sector and M&As involving resources continued to be strong.

Tan, who has advised firms such as Siemens (SIEGn.DE) and Hutchison Whampoa (0001.HK) on M&As in China, said Chinese appetite for financial sector acquisitions has waned due to problems at firms such as ailing Belgian bank Fortis (FOR.BR) and the drop in Blackstone shares since China Investment Corp's investment in the asset manager.

"But if you look at who has cash, it is the Chinese, in particular those firms that launched their IPOs (initial public offerings) at the top of the market."

"In Asia, the downturn has not hit us as hard and the upturn may come more quickly," she said. (Reporting by Kevin Lim; Editing by Kim Coghill)