Search results for

In June the Minister for Economic Affairs tabled a proposal in parliament making it possible to merge (or cooperate through a holding company) between banks organized as savings institutions and mortgage credit institutions organized as member associations. On the same day BG Bank and Realkredit Danmark published their intention to do exactly that. Banks organized under the rules governing BG Bank until now have been subject to rules limiting shareholders' voting rights (also in a holding company controlling a bank organized as a savings institution company). The limitation of shareholders' voting rights may now be abolished by the shareholders. The abolition may pave the way for a mortgage credit association holding the majority of votes in a merged entity — as is required by law.

In a world of global finance and capital flows, the extra-territorial reach of national securities laws needs to be clearly defined. In the US, this is not the case. The absence of legislative guidelines has spawned considerable litigation.

The Commission has proposed that the EU Directive on money laundering be extended to activities and professions outside the financial services sector, and that the range of suspicious transactions to which it applies should be broadened to cover the proceeds of serious crimes other than just drug trafficking. The Directive obliges all credit and financial institutions to seek identification of all of their customers entering into a business relationship when a single transaction or series of linked transactions exceed Ecu15,000 (US$16,600) or, even where this threshold is not met, where money laundering is suspected.

The Supreme Court of Mexico is reviewing a controversy, Contradiccion de tesis 2/98 y 11/98, that challenges the enforceability of arrangements under which Mexican banks have imposed charges for interest on unpaid interest. The resolution of this matter will affect the many legal disputes which arose in 1995 after the Mexican peso devaluation and the ensuing spike in interest rates (up to 100%) and could have serious financial consequences for an already troubled banking sector.

High-yield debt has hit the European market running particularly for issues refinancing acquisition debt. In a two part article, IFLR presents a round table of practitioners, investment bankers and investors to discuss some of the issues that the European market has brought to the US model

Sirona Dental System, the dental equipment business, has issued a Dm170 million (US$309.1 million) to refinance a subordinated bridge loan facility related to its leveraged buy-out from Siemens by Shroders Venture. The total purchase price was Dm750 million. Warburg Dillon Read acted as lead manager for the offering.

Issuer: Endesa [Empresa Nacional de Electricidad]

Maurizia Angelo Comneno, Director of the legal department at Credito Italiano, Milan, talks to Barbara Galli

Clifford Chance has completed its first SEC registered flotation in the US, as adviser to STET Mobile Holding (the selling shareholder) and to STET Hellas Telecommunications, one of the two GSM mobile telecom operators in Greece. The sale was of 12.1 million ordinary shares of STET Hellas in the form of American Depositary Receipts, registered with the SEC and quoted on the Nasdaq stock exchange, and of Dutch Depositary Shares listed on the Amsterdam stock exchange. The deal is valued at US$327 million. Clifford Chance's team included partners Rick Ely (US group) and Tim Schwarz (telecommunications) in London, and Frank Graaf in Amsterdam.

The Monetary Authority of Singapore has accepted the recommendations of the Financial Sector Review Group for new disclosure policies for banks, to make Singapore banks more transparent and accountable while having little impact on their balance sheets. The recommendations are expected to be implemented within the financial year, and include: