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  • The new Star trusts offer useful new opportunities for structuring financial transactions through the Cayman Islands. They will be particularly useful in complex loans or securitization deals. By Chris Narborough of Truman Bodden & Co, Cayman Islands
  • US/UK automotive parts supplier LucasVarity is selling its VarityPerkins Engines business to US rival Caterpillar for US$1.3 billion. While the deal surprised some analysts, who viewed Perkins as an essential part of LucasVarity, the acquisition is seen as a good strategic fit for Caterpillar.
  • Montreal firms McMaster Meighen and Mackenzie Gervais are to merge in March 1998. The merged firm will be called McMaster Gervais and will be one of Montreal's biggest, with about 100 lawyers.
  • UK firm Allen & Overy announced that it is to merge with 65-lawyer Italian firm Brosio, Casati e Associati. Meanwhile, Haarmann Hemmelrath & Partner has become the second German firm to open an office in Italy. In the last year the following foreign firms have all opened in Italy or added to an existing presence: Clifford Chance, Freshfields, Simmons & Simmons and Cleary, Gottlieb, Steen & Hamilton.
  • China's new foreign loans regime bars non-profitable companies from seeking international finance, and also limits the profitable ones. Worries about the Asian crisis have ensured caution. By Guanxi Zheng of Stikeman, Elliott, Hong Kong
  • In a very hard year for the Czech economy, the former overly-optimistic comments about the economy have been replaced by more realism and pessimism. But many of the remaining law firms continue to prosper. Paul Lee reports
  • Despite turbulence on the markets, Malaysia's investment-led infrastructure development programme looks quite promising. By Winston Bernard Silva, advocate and solicitor, Singapore
  • Linklaters & Paines and Sullivan & Cromwell have again risen to the top in a hectic year. Cravath Swaine & Moore and Davis Polk & Wardwell share the Yankee title. Nick Ferguson and Barbara Galli report
  • Quebec has moved to drop the requirement that prospectuses must be published in French, as well as other discouragements to foreign issuers. By Andrew Fleming of Ogilvy Renault, London
  • In December 1997, the Ministry of Finance released its draft for a government bill on flagging rules. The draft proposal included, among other things, amendments to the thresholds triggering the flagging obligation.