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Hungarian lawyers are reacting furiously to accusations from foreign firms in the country that new proposals will restrict Hungary's legal market. Local lawyers claim instead that the proposals, which are expected to become law next week, will liberalize the market. They also claim that the reforms will enable foreign law firms to work in Hungary within the law–something they feel has not been the case so far.

US firm Steel Hector & Davis, based in Florida, is to form an association with Brazilian firm Moreira Lima & Royster. The move highlights foreign firms' growing interest in establishing a presence in Brazil. Moreira Lima has offices in São Paulo and Rio de Janeiro. Moreira Lima was created in late 1997 after two lawyers, Eduardo Moreira Lima and Michael Royster, left Brazilian firm Garcia & Keener Advogados. Joseph Pallot, partner at Steel Hector, says it provides his firm with an opportunity. "We had been looking at entering the Brazilian market since late 1996," he says. "Brazil is Florida's number one trading partner."

Nestlé, the Swiss consumer products group, will pay £715 million to Dalgety, the UK food group, for its Spillers pet food business. The deal, subject to regulatory clearance, will give Nestlé 20% of Europe's branded pet food market. It is Nestlé's biggest acquisition since the 1992 purchase of Perrier, the French mineral water group. Two UK firms are working on the deal. Freshfields advise Nestlé while Slaughter and May advise Dalgety. Freshfield's corporate partner Julian Francis is leading the team, which includes partners Francis Sandison (tax), Nick Spearing (antitrust), Nick Carter (intellectual property) and Mark Wheelhouse (property).

UK companies Glaxo Wellcome and SmithKline Beecham are planning a £100 billion merger (US$60 billion) which will create the world's biggest drugs manufacturer and the world's third largest company after General Electric and Royal Dutch/Shell. The news follows the rumours surrounding a possible merger between SmithKline Beecham and American Home Products, now abandoned. UK firm Slaughter and May and US firm Sullivan & Cromwell are representing Glaxo Wellcome. Slaughter & May's corporate partners Glen James, Michael Pescod and Robert Stern worked with competition partners Michael Nicholson, Laura Carstensen and tax partner Howard Nowlan on the deal. Sullivan & Cromwell partner Ben Stapleton worked on M&A issues out of the New York office, assisted by London partners William Plapinger (securities) and Robert Osgood (antitrust).

The UK's system of distinguishing levels of barristers should be disbanded, according to a report published by free market think-tank, the Adam Smith Institute. Its author, Peter Reeves, criticizes the system of Queen's Counsels (QCs or silks) as being costly and misleading. The radical proposal follows recent criticism made by the Lord Chancellor, Lord Irvine, about top commercial barristers charging excessive fees.

UK firm Linklaters & Paines is extending its Asian practice by opening an office in Bangkok. The office, which opened in January, complements Linklaters' other Asian offices in Singapore, Tokyo and Hong Kong. Unlike other countries in south-east Asia, Thai bar rules enable foreign firms to employ local lawyers. Three lawyers have been taken on as partners to join managing partner Chris King. They join Linklaters from Thai firm International Legal Counsellors.

For the second time, the Swedish Bar Association has forced Wahlin Adokatbyra to dismantle its links with big six firm KPMG. Wahlin, a firm created in 1997 as an associate law firm of the professional services giant, must abandon the cooperation agreements between the two firms or face being disbarred with immediate effect. Name partner Tryggve Wahlin says: "The Bar came to the conclusion that these agreements were not consistent with the independence of the professional lawyers in Sweden. I can accept that reason because I think that is important too, but I don't think our agreements were in conflict with it."

Philadelphia-based Morgan, Lewis & Bockius LLP is set to face legal action in Indonesia related to its office there and the hiring of a new partner for the firm. A leading Jakarta firm, Makarim & Taira S, is preparing to sue the US firm because it claims the firm's Jakarta office, PT ML&B Indonesia, operates outside the regime for foreign legal firms. Makarim & Taira is also preparing to sue the laterally hired partner. The moves put at risk Morgan Lewis's estimated US$5 million in billings for Indonesian matters. In January 1998 Morgan Lewis offered a partnership in its international section to Michael Hooton, a New York-qualified Canadian national who was working as a foreign legal consultant at Makarim & Taira. Hooton is due to join the firm shortly.

The Netherlands has produced plans for a special court to rule on disputes over corporate control. This marks the first step to dismantling anti-takeover devices. By Christian Huiskes of Derks.Star Busmann.Hanotiau, Utrecht

US securities authorities are issuing guidance for broker-dealers on the use of new technology in their business. This article summarizes that guidance in five key areas. By Morris Simkin of Winston & Strawn, New York