Legal sources say that a long-rumoured merger between two Bermuda law firms has now been agreed to, marking the latest movement in an increasingly fluid legal market.

Informed sources said Hallett, Whitney & Patton and near-by neighbour Cox & Wilkinson have officially tied the knot this week and are on the verge of making the consolidation public.

Hallett, Whitney & Patton senior partner, Stephen Cook, this week declined comment when asked about the matter, as did Cox & Wilkinson senior partner David Kessaram.

It is believed that an announcement could be made as early as today. Sources said the official papers were signed after the close of business on Tuesday. A Press conference has been called for this morning.

The two firms have been known to have considered the possibility of a merger for about a year. It is understood the idea may have fallen through but was recently revived.

Some observers believe a combined operation would make more sense given the recent changes in the various legal camps.

One respected legal practitioner conceded: "There has certainly been a lot more movement of lawyers between firms than there ever was in the past.'' Yesterday, there was already speculation as to which of the two senior partners would head such a combined firm. Some observers said that if the deal is done, apart from some form of joint stewardship, Mr. Kessaram, Mr. Cook or John Cooper could all be likely choices.

In Bermuda's crowded legal landscape, much has happened since the days when Conyers, Dill & Pearman (CD&P) and cross-town rival Appleby, Spurling & Kempe (AS&K) were referred to as the "Big Two'' law firms.

They attracted a lot of the business, especially in corporate law in general, and international business in particular.

And while they are still among the largest today, other firms such as, Mello, Hollis, Jones & Martin and cross-the-street competition Milligan-Whyte & Smith have made huge strides recently in terms of reputation and business volume.

One well-known lawyer conceded: "It's become a lot more competitive. All over the world, people are looking for better deals, a better price, although I doubt there is much difference in Bermuda over what firms charge.

"The word is that some of this movement by lawyers has been as a result of internal power struggles and personality clashes. One suspects, though, that money drives most of it.'' Today, there are at least 32 law firms in Bermuda employing more than 180 lawyers. Most of these firms are small, some providing the services of just one lawyer.

An increasing number of Bermudians are returning with law degrees, some opting for legal work with international companies.

But in recent years, the demand for the brightest minds in private practice has intensified. Examples of that fact have been evidenced by high profile defections from some firms.

AS&K saw significant talent leave for rival firms in a short space of time, but has also been the beneficiary of well-regarded lawyers who have left other firms, such as Cox & Wilkinson.

Smith, Barnard & Diel recently announced an impending dissolution of their longstanding partnership as of next March. Previously, it had been rumoured as a potential suitor for Hallett, Whitney & Patton or Cox & Wilkinson.

BUSINESS BUC