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On January 1 1998, the new Law on Register Liens and the Pledge Register (Ustawa o zastawie rejestrowym i rejestrze zastawow) entered into effect. The Polish parliament followed the example of other (romanic) countries to establish a pledge registry and replace the pledging-privileges of Polish banks which lost effect on December 31 1997. Under the old Article 308 of the Polish Civil Code (Kodeks Cywilny), it was sufficient for the bank to register the pledge of an asset in its own register to establish a valid lien over movables in favour of a bank. The bank was then entitled to issue an enforceable title on its own behalf. These provisions were made invalid by the entry into force of the new statute.

One year after its enactment, Decree-Law 70/97 of April 3 (Netting Law) has fulfilled many of its expectations. A formidable increase in derivative documentation efforts clearly shows the renewed interest of derivatives transaction agents dealing with Portuguese residents to make use of the advantages arising from Portugal's entry in the netting jurisdictions' league.

In early March 1998, the German federal government published a draft statute for the implementation of EC directives on deposit guarantee schemes (94/19/EC) and investor compensation schemes (97/9/EC). The statue will create a whole new system of compensation schemes. The existing (private and voluntary) deposit protection scheme of the association of private banks in Germany (Einlagensicherungsfonds), offering an exceptionally high degree of protection (ie each deposit is insured up to an amount equivalent to 30% of the bank's liable capital) will remain in place with the new compensation schemes.

On April 2 1998, the House of Representatives passed the new Patent Law 16(1)/98. The main provisions of the new law which are significantly different from the old law are as follows:

The proposed cut of the 1.5% stamp duty payable on credits granted by Finnish credit institutions will effect major changes on credit granting. Under the government bill, stamp duty will no longer be levied on loan agreements and mortgages. The amendment is proposed to be retroactive, enabling creditors to proceed an action ex post facto for the stamp duty paid in connection with the granting of the loan if the loan agreement has been signed on or after April 29 1998.

The merger of two New York energy companies, Con Edison and Orange and Rockland Utilities, announced May 11 1998, is expected to increase efficiency and result in net savings of up to US$50 million a year. Cravath Swaine and Moore, New York, is advising Con Edison in the US$790 million acquisition of O&R. The team of lawyers from Cravath Swaine is headed by M&A partner George Belicic.

Daimler-Benz and Chrysler have announced on May 7 the largest industrial merger ever. The deal values Chrysler at US$39 billion. The new group, known as Daimler-Chrysler, is estimated to be worth US$92 billion and will be the world's fifth-largest vehicle maker.

Sullivan & Cromwell, New York is advising US local telephone company SBC Communications on its US$57 billion merger with Chicago telephone group Ameritech. The team of lawyers was headed by Benjamin Stapleton (M&A) and Andrew Mason (tax). Mayer Brown & Platt, Chicago, and Skadden, Arps, Slate, Meagher & Flom, New York, are advising Ameritech. The team of lawyers from Mayer Brown includes Robert Helman, Herbert Kruger, Wayne Luepker, Richard Williamson and Theodore Livingston. The team of lawyers from Skadden Arps is headed by Charles Mulaney. (M&A), Lewis Freeman (tax) and Antoinette Bush (communications and regulation).

Eight listed South African companies are to merge to create the world's largest gold mining company, with an expected market capitalization in excess of £2.8 billion (US$ 4.6 billion). The merger should be effected with one of the companies, Anglogold, acquiring all the shares of each of the others under seven schemes of arrangement. Each scheme is subject to the approval of the South African High Court. In the unlikeley event of a scheme not being approved, Anglogold has prepared an alternative takeover offer for the concerned shareholders. The new company, also called Anglogold will be listed on the Johannesburg, London and Paris stock exchanges.

UK firm Norton Rose is ending its association in Hong Kong with local firm Johnson Stokes & Master, with effect from March 31 1999. From this date a clause in the 1976 association agreement will prevent Norton Rose from carrying on a legal practice in Hong Kong for three years. Roger Birkby, Norton Rose managing partner, says: "We have grown more international and we have to work for our clients wherever in the world they want us to. This proved difficult in Hong Kong, because the terms of the association did not allow us to work in areas such as project finance or asset finance." Norton Rose in Hong Kong provides primarily corporate finance, banking and marine litigation services. According to Birkby, several attempts to re-negotiate the terms of the association failed.