Allen & Overy, Freshfields Bruckhaus Deringer, Linklaters and Slaughter & May have secured lead roles on the mega £22.5 billion ($40.6 billion) Lloyds Banking Group capital raising, The Lawyer reports.

The bank last week announced a £13.5 billion rights issue - the largest in UK history - along with a separate transaction, a contingent convertible notes issue offered to bondholders (known as CoCos) worth £9 billion.

MAYER BROWN ANNOUNCES PARIS MERGER

Mayer Brown has announced it is merging with Paris-based boutique Ayela Semerdjian & Associés, legalweek.com reports.

The deal will see a seven-lawyer litigation and arbitration team added to Mayer's Paris office. The Ayela Semerdjian team comprises two partners, two counsel and three associates and brings the Mayer Brown office total to 77 lawyers, including 17 partners.

DLA PIPER SNAPS UP KRAFT DEAL

DLA Piper has picked up a lucrative role as the preferred adviser for Kraft Foods for all international day-to-day work. The arrangement is a first for the major food producer, which will see DLA advising on areas including advertising, contracts, corporate, employment, food law, IT/information systems, litigation and real estate.

The firm will not, however, get its hands on strategic M&A work, such as the proposed takeover of Cadbury, which remains with Clifford Chance partner Sarah Jones.

HALLIWELLS BRAIN DRAIN CONTINUES

Halliwells looks set to lose yet another three partners, legalweek.com reports, after posting a revenue of £34 million for the first half of FY200909-10, down from £40 million last year (excluding £4 million in revenues from subsidiary HL Interactive which has since been sold).

Insurance liability partner Chris Fletcher is set to move to Berrymans Lace Mawer, litigation partner Stephen Morris to DWF, and real estate partner Ross Wellman's next move is unclear.

ALLEN & OVERY ASSOCIATES' BONUS WAIT SLASHED

Allen & Overy has relented to associate complaints and overhauled its bonus system, which previously saw associates having to wait a year to receive bonuses, rollonfriday.com reports.

In an effort to encourage long-term commitment to the firm, associates were previously paid their bonus 12 months after they had earned it, however that waiting period has now been slashed to just four months.