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German firm Bruckhaus Westrick Stegemann is to merge with Austria's Heller, Löber, Bahn & Partners. This, the first cross-border merger between a German and an Austrian firm, takes effect from January 1 1998. "We at Bruckhaus do not want to end up as a German niche firm, we want to be an international firm. We are starting from our home market, the continent," explains Burkhard Bastuck, a partner in Bruckhaus's Frankfurt office. His Dusseldorf-based partner Günter Beckmann agrees: "Focusing our strengths in central Europe will also provide us with a foundation for expanded business in western Europe and in regions with Anglo-American legal traditions."

Amendments to the Securities Act 1978 which came into force on October 1 will almost certainly increase costs for overseas issuers of securities to the New Zealand public. The Securities Commission recently declared that overseas issuers will need to meet the new requirements.

On October 10 1997 the Swiss Parliament passed a new act aimed at combatting money-laundering in the financial sector. This latest legislative step expands on the due diligence requirements of articles 305 bis and ter of the Swiss Penal Code (SPC) and establishes a comprehensive (self-) regulatory framework for Finance Intermediaries. The latter include banks, fund managers, insurance entities and security dealers (article 2 paragraph 2 Intermediaries). It also includes anyone who by profession accepts possession or custody of other persons' assets, or helps to invest or transfer them (article 2 paragraph 3 Intermediaries). The statute exempts: the Swiss National Bank; tax-exempted pension fund entities and person who provide services exclusively to these; and paragraph 3 Intermediaries who provide services exclusively to paragraph 2 Intermediaries.

State of Rio Grande do Sul: On October 21 1997, Companhia Estadual de Energia Elétrica sold two of its three distribution networks for R3.145 billion (US$2.85 billion). The premiums over the minimum asking prices were 82.62% for the Centre-West distributor and 93.55% for the North-Northeast distributor.

The legal preparations for the introduction of the euro have moved on. Geoffrey Yeowart of Lovell White Durrant, London, updates the answers given in the January issue to the most frequently asked legal questions

The leading international trade associations have combined to produce market conventions for the euro. They are winning increasing acceptance across Europe. By Clifford R Dammers of the International Primary Market Association, London

Ameritech, the Chicago-based telecommunications group, is to take a 40% stake in Tele Danmark, the Danish carrier. The deal is valued at US$3.1 billion. Ameritech is buying the 45 million shares from the Danish government, which partly privatized Tele Danmark three years ago. The deal will reduce the government's stake to 51%. US firm Kirkland & Ellis and Danish firm Bech-Brunn & Trolle advised Ameritech on US and Danish law issues. Corporate partner Robert Osborne led the team for Kirkland & Ellis alongside tax partners George Javaras and Herwig Schlunk. M&A partner Sven Krogstrup and banking and finance partner Jørgen Reimer Jensen handled the local law advice for Bech-Brunn & Trolle.

The Italian government has sold 44.7% of its stake in Telecom Italia. The US$13 billion deal included a private offering of US$3.1 billion to stable shareholders and an offering of $US10 million in the international and Italian markets, including an SEC registered public offering in the US. Davis, Polk & Wardwell advised Telecom Italia. Partner Patrick Kenadjian led the team from the Frankfurt office. Of counsel Jeffrey Oakes advised on securities and capital markets matters from London.

US firm Covington & Burling and French firm August & Debousy have entered into an exclusive cooperation agreement. The announcement, made in Paris this month, followed the approval of the exclusive referral relationship licence by the French Bar earlier in the year. The arrangement is part of a growing international strategy for the firms. "It was a joint initiative," says Jonathan Blake, partner at Covington & Burling in Washington. "We knew each other previously through working for the same clients. It was the natural outgrowth of personal and professional relationships." Covington & Burling has already had US lawyers working in August & Debousy's Paris office. Covington also has foreign offices in London and Brussels.

Despite confusion created by a speech made to the IBA by a leading Japanese lawyer, it is clear that reforms to the Japanese legal market will not enable international firms to hire Japanese lawyers (bengoshi). Foreign firms in Japan have been lobbying the ministry of justice commission to fully liberalize the legal system, and the decision to continue restrictions on foreign firms in Tokyo has been greeted with disappointment. Toshiro Nishimura, name partner of Nishimura & Partners and member of the ministry of justice commission, caused the confusion when speaking of the advancement of partnerships between Japanese and international firms. However, he has since clarified that he was referring to the decision to relax the rules on joint enterprises. The few firms which work in a joint enterprise will now be able to work on all areas of international law, including litigation. Work on any domestic law is still forbidden. Nishimura claims the reforms will be beneficial to foreign firms. He says: "I expect the number of firms with cooperation pacts to rise, this should be an incentive for firms."