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British Telecom has launched a US$21 billion bid for the 80% of US telecommunications company MCI Communications which it does not already own. This is the largest ever foreign takeover of a US company. The combined company will be called Concert.

The Act on bonds which came into force on August 20 1995 deals with particular types of bonds such as convertibles. Since then, no convertible bonds have been publicly offered by Polish issuers and quoted on the Warsaw Stock Exchange. However, a few convertible bond issues are now known to be in preparation. Convertible bonds need to be attractive securities to satisfy both corporate and financial needs (eg, they may serve as protection against an unexpected takeover; the public offer or private placement, as the case may be, of convertible bonds is often easier and more successful than that of standard bonds).

The dissolution of the international partnership between Canadian firms Ogilvy Renault and Osler Hoskin & Harcourt was coolly calculated many months in advance by Ogilvy. This much is revealed by an Ogilvy Renault internal memo dating from 1995 obtained by International Financial Law Review which discusses the future of a potential independent Ogilvy Renault office in London. The official reason given by both firms for the split in London in February 1996 was that Ogilvy Renault had announced it was to open an office in Toronto in the summer of 1996. However, the memo states that in mid-1995 Ogilvy Renault was "considering various alternatives" to its arrangements with Osler Hoskin. The memo was addressed by then managing partner of the London office, Michael Fortier (now based in Montreal), to managing partner Raymond Crevier.

UK fund manager Invesco is buying US competitor AIM Management Group for US$1.6 billion. The deal creates a top five independent fund manager with more than US$150 billion under management.

US chocolate company Hershey has agreed to buy the North American confectionery business of Leaf Inc, the US subsidiary of Finland's Huhtamaki. The price is US$440 million plus annual licensing fees. Hershey has also agreed to sell Huhtamaki its two European operations, Germany's Gubor and Italy's Sperlari, for US$110 million.

The new presence of foreign law firms aggressively staking out territory in Germany is putting pressure on local firms. A second wave of mergers seems to be beginning. Samantha Wigham reports

Glass-Steagall has not been reformed. But the Federal Reserve's proposed reforms to Regulation Y and the rules for Section 20 companies could side-step the limits. By Robert Bostrom and George Seeberger of Winston & Strawn, New York

For the first time, Austria's bar association rules are being called into question and competition is likely to arrive soon. Austrian firms are preparing for mergers to face that competition. By Samantha Wigham

Decree 1295 of 1996, enacted by the Colombian Government on July 24, approved several modifications to the international investment regime. The decree simplifies and expedites procedures and requirements in this area.

Resolution No. 58/3/96 of the Board of Directors of the Central Bank concerning the regulation of finance companies (Resolution 58) was promulgated under the authority set forth in Articles 114 to 119 of the Central Bank Law, which pertain to Financial Corporations (mu'assasat maliyyah). Article 114 of the Central Bank Law defines Financial Corporations as those institutions whose principal functions are to extend credit, to carry out financial transactions, to take part in the financing of existing or planned projects, to invest in movable property and such other functions as may be specified by the Central Bank. Financial Corporations may not accept funds in the form of deposits but may borrow from their head offices, from local and foreign banks, or from financial markets.