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Philadelphia-based firm Morgan, Lewis & Bockius LLP's problems in Indonesia continue. The investigation of the firm launched in February for allegedly offering Indonesian law advice in contravention of its licence (see International Financial Law Review, March 1998, page 3) has now been complemented by a full study of the activities of foreign firms in the jurisdiction and a move to revise and clarify the rules. Bertie Mehigan, head of Morgan Lewis's Singapore office, says he understands that the Indonesian police stopped their investigation of the firm in mid-April. However, on April 22 (one week after the supposed end of the investigation) Adnan Buyung Nasution, name partner at Indonesia's Nasution, Soedibjo, Maqdir & Partners, said: "The Indonesian authorities are still interrogating them, the lawyers and employees. We are still waiting for the result of the investigation." He hopes the investigation will be finished by mid-May.

Howard Trust, General Counsel, The Barclays Group, talks to Diana Bentley

Privatization and deregulation are creating a more modern business environment in Austria and law firms are under increasing pressure to provide a similarly modern service. Nick Ferguson writes

Formerly restrictive of international offerings of securities, the British Columbia Securities Commission has introduced measures more favourable to foreign purchasers. By David Glennie, Peter O’Callaghan and Geoffrey Belsher of Blake, Cassels & Graydon, London and Vancouver

Foreign investment enterprises in the project finance field must now seek the same foreign exchange authorizations as domestic entities. By Edward Turner and Edward Lam of Shearman & Sterling, Hong Kong and London

Colombian companies are increasingly looking forward to expanding their capacity into new markets and increasing their local capacity. The merger of companies is a useful instrument to enhance this capacity.

On March 1 1998, the amendments to the 1989 EU Merger Regulation entered into force. For the details of the new regime see International Financial Law Review, June 1997, page 53.

Melia Inversiones Americanas (MIA), a Dutch company owning hotels in Latin America and the Caribbean, has been floated in a US$163.8 million international offering. The shares were offered to Spanish retail and institutional investors and to US institutions though a private placement. US firm Brown & Wood advised on New York and English law with Spanish law advice from Cuatrecasas. The shares, placed in the US through Rule 144A American Depositary Shares, were the first non-Spanish stock to be listed on the stock exchanges in Madrid, Barcelona, Valencia and Bilbao. A depositary system has been implemented to allow the bearer shares of MIA to be represented by electronic book entries in Spain (anotaciones en cuenta). The system is designed to satisfy both Spanish law relating to registered securities and the requirements of Dutch law on the transfer of bearer shares. Stibbe, Simont, Monahan, Duhot advised on Dutch aspects.

The OECD convention against corruption is a major step against bribery. But a totally fair market is still far off. By Michael Hershman of Decision Strategies/Fairfax International LLC, Falls Church, Virginia

Diageo, the world's largest drinks business, is selling drinks brands Bombay gin and Dewar's scotch whisky to Bacardi, at a price thought to be over £1.1 billion (US $1.8 billion). The sale was required by US regulators in order to allow the proposed merger of Guinness and Grand Metropolitan to go ahead. Goldman Sachs entered into a US$2.6 billion multicurrency agreement with Bacardi, consisting of three series of term loans to finance the acquisitions and one series of term loans to refinance the company's existing debt. Frank Aquila and Neil Anderson, M&A partners at Sullivan & Cromwell's New York office, are advising Diageo.