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  • A consortium including British Gas and Shell has bought a $1 billion controlling stake (53%) in Gas de Sao Paulo, Brazil’s largest natural gas distributor*. This was the Brazilian government’s first privatization since the devaluation of the real in January. Gas de Sao Paulo serves around 300,000 mainly industrial customers in Sao Paulo, Brazil’s most populous state. The consortium’s bid was chosen in preference to several rival consortia, including one led by Enron and Agip of Italy.
  • The UK’s General Electric Company (GEC) is buying Fore Systems, a Pittsburgh-based Internet equipment supplier. GEC recently agreed to sell its defence business to British Aerospace and is now concentrating on building up its telecoms and Internet capabilities. This acquisition follows GEC’s purchase of US telecoms company, Reltec.
  • Serge Durox of Coudert Frères, Paris, assesses the impact of new regulations on private placements and identifies the outstanding issues for prospective borrowers
  • Latin America-Brazilian natural gas company sold at a premium of 119%
  • The Pepsi Bottling Group has issued 100 million common stock shares in an initial public offering worth $2.2 billion. The New York-based group manufactures and distributes Pepsi-Cola drinks.
  • Deutsche Telekom and Telecom Italia are to form the world’s second largest telecommunications company in what they describe as a merger of equals. The merger will be achieved through a stock swap with Deutsche Telekom shareholders owning 57% of the new company. The German government is selling part of its 72% stake in Deutsche Telekom and will hold a 40% stake in the merged company.
  • UK firm Denton Hall has opened an office in Almaty, Kazakhstan.
  • The $920 million sale in November of a 15% stake in state telecoms company TPSA doubled the capitalization of the Warsaw exchange overnight and affirmed the new government’s commitment to privatization. Ben Maiden reports as lawyers compete for further deals in banking, airlines, oil and steel
  • As the Czech Republic concentrates on getting privatization right — at the second attempt — lawyers can look forward to a glut of banking and M&A work. Rob Mannix reports
  • Pillsbury Madison & Sutro, a San Francisco firm, has lost its executive director, a substantial group of compensation and benefits lawyers, and has had to fire another nine partners.