STRICKEN law firm Halliwells is being picked over by a number of rival outfits after failing to agree the terms of a transfer of the business.

Liverpool-based firm Hill Dickinson was being lined up to take on Halliwells wholesale, but that deal is now said to be off the cards.

Instead, Hill Dickinson is believed to have scaled back its ambitions.

Sources close to the talks say it is now looking at taking on Halliwells’ Liverpool office and could also bid for the Sheffield outlet. It could pay in the region of £1.5m for the Liverpool practice, which is based in the Plaza building, on Old Hall Street.

Last week, Halliwells’ partners had to file a second notice of intent to appoint an administrator after 10 days of talks did not produce a deal.

The firm, which has been hit hard by the economic downturn, first filed a notice on June 24, but that expired after two weeks. It now has until July 20 to agree a deal. Two other firms are said to be in negotiations to take on the remaining parts of the practice.

A source, who asked not to be named, told LDP Legal: “Hill Dickinson decided to restrict themselves to doing a deal they could get to the line in time. They’re clear that Liverpool and Sheffield suit their business case and suit their strategy.

“Conversations are still on-going and I’m hopeful they’re going to be brought to a conclusion this week. We aren’t there yet; we are nearly but we aren’t there yet.” In another development, Ian Austin, Halliwells’ executive chairman and former managing partner, has been appointed head of commercial litigation at Manchester firm Heatons.

It is also understood that Jonathan Brown, who took over as managing partner of Halliwells from Mr Austin, will join Hill Dickinson if it takes on Halliwells’ Liverpool’s office.

A Halliwells spokeswoman said: “Halliwells continues to make good progress with its discussions for the transfer of the business to a number of other highly regarded firms of solicitors.

“Halliwells and the third parties that it is in discussion with intend that clients will experience a seamless transfer with no disruption. In the interim, the notice provides a moratorium to protect the interests of clients and other stakeholders and business continues as usual. An administrator has not currently been appointed.”

No-one from Hill Dickinson was available to comment.