Search results for

The Cyprus Stock Exchange (CSE) has embarked on its most ambitious project yet, the creation of an electronic exchange. With a view to improving its connectivity, speeding up securities transactions and cutting costs, the CSE has signed a contract with an Australian computer firm to develop and install the required equipment and software. Full computerization of trading as well as back office procedures, ie clearing and settlement, is scheduled to be operational by mid-1999. The customization and testing of the electronic dealing system is under way. The same system architecture is already used by the Geneva, Moscow and Oslo stock exchanges. Even though the exchange is to go on-line, the trading floor will continue to exist for some time. Remote-terminal-based trading will follow at a later stage. The provision of central clearing facilities for stock exchange transactions under the electronic system was put out to tender and won by a major Cypriot banking institution.

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.

A pool of French, English and American firms worked for the success of the IPO of GEC Alsthom, the joint venture between GEC and Alcatel Alsthom, now renamed Alstom. The offering, totalling US$3.7 billion, comprised shares, depositary receipts and ADRs, with a primary listing in Paris and secondary listings in London and NewYork. Goldman Sachs and Credit Suisse First Boston acted as joint global coordinators.

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.

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.

Two firms are leaving the Pünder Group, the alliance of European law firms headed by German firm Pünder Volhard Weber & Axster, after disagreements about the group's future. The two firms are Coppens Van Ommeslaghe Faurès, in Belgium, and Swiss member Stoffel & Partner. Jean-Michel Détry, corporate finance partner at Coppens, says: "We were looking for increased financial integration within the group. In particular, we wanted all the EU work to be merged and shared out among the firms, but this was resisted by the German and Dutch firms." One firm has already left the group earlier this year: Netherlands member Buruma Maris left in order to merge with Benelux firm Loeff Claeys Verbeke, although the merger talks proved abortive. Détry says: "At this point it became obvious that the group needed financial integration. Essentially, there are discussions in various directions but the bottom line is that we will leave the Pünder group."

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

Emmanuel Guillaume, group executive vice president and general counsel at France Telecom, talks to Barbara Galli

Can the resolution of future sovereign debt crises be eased by changes in the legal documents that evidence these obligations? In the first of a series of three articles, Lee C Buchheit of Cleary, Gottlieb, Steen & Hamilton, New York considers the sharing clause