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In a recent case in Ontario, a judge ruled that comfort letters are in general not contractually enforceable. However, liability could run for negligent or fraudulent misrepresentation. By Michael Stephenson of Blake, Cassels & Graydon, Toronto

The traditionally separate businesses of commercial banking, securities and insurance are increasingly merging. An overall approach to supervision is required. By Philip Wood and Paul Phillips of Allen & Overy, London

On July 29 1998 the sale of Brazil's giant telecoms company, Telebrás, raised R$22 billion (US$19 billion), between U$4 billion and U$5 billion more than expected in the financial markets and representing a premium of 63.74% over the minimum price. The sale demonstrated the enthusiasm that multinational companies have for Latin America, and confirmed that international companies are willing to commit large resources into the emerging markets.

US firm Curtis, Mallet-Prevost, Colt & Mosle has opened an office in Milan. A joint venture with Italian firm Studio Legale Gilioli, the office is headed by partner Eric Gilioli and takes the name Curtis, Mallet-Prevost & Gilioli. Curtis Mallet-Prevost sees Italy as an important addition to its European network of offices in Frankfurt, London and Paris. Managing partner of the firm George Kahale explains: "There is a lot of international work, both inbound and outbound, between Italy and the US. Our firm is also very active in Latin America and the Middle East and we have existing business in Milan representing a number of multinationals doing business in those areas." The firm will aim to build on existing strengths including corporate M&A work, joint ventures and project finance.

Van Anken Knüppe Damstra, the Rotterdam-based firm with a strategic alliance with big five firm Deloitte & Touche, is to merge with Eindhoven-based Prinsen van der Putt. The merger will take place on January 1 1999. The move is a further step in the ambitious plans for legal services of the Dutch practice of Deloitte Touche Tohmatsu. "Within two years we expect to be one of the four biggest legal practices in the Netherlands," says a spokesperson for Deloitte & Touche. There are negotiations with other law firms under way, and the spokesperson says: "We expect further announcements in the next few months".

A recent revision of the Swiss Law on Telecommunications (telecoms law) has brought a change of certain provisions of the Swiss Criminal Code. The impact on banks and trade businesses tape recording conversations with their business partners is considerable. The recording of telephone conversations is subject to provisions of civil and public law. The Swiss Civil Code and the Swiss Code of Obligations provide general rules on the protection of personal rights.

Presidential Decree No. 696, which became effective on June 16 1998, has clarified the rules for the issue of Eurobonds or other international debt placements by regional governments within Russia. Generally, the Decree imposes new restrictions on these activities by regional governments, and seeks to promote sounder borrowing policies. The ministry of finance is granted supervisory authority and made responsible for approving new international debt issues. The new requirements for regional governments placing Eurobonds and other international debt issues include:

Mezzanine debt, until recently a feature only of US project financings, is spreading to projects in other markets. The Asian crisis has increased interest in alternative funding sources. By Alistair MacRae of Norton Rose, Singapore

The Puerto Rico Telephone Authority agreed to sell the majority of its shares in the Puerto Rico Telephone Company to a group headed by a subsidiary of GTE Corporation. At closing, PRTA will receive US$1.875 billion — US$375 million as consideration for the shares and US$1.5 billion as dividend. The dividend will be paid through a loan, to be arranged GTE, from a syndicate of banks to PRTC.

Coca Cola Beverages (CCB), one of the ten anchor bottlers within the Coca-Cola system and the largest bottler of carbonated soft drinks in Central and Europe has been floated on the London Stock Exchange. The flotation valued the company at over £1.7 billion (US$2.8 billion). Warburg Dillon Reed acted as sponsor and bookrunner. CCB was created by the demerger of the bottling business of Coca-Cola Amatil in 12 countries in central and eastern Europe and the acquisitionof The Coca-Cola Company's bottling operations in northern and central Italy.