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  • France’s Renault and Japan’s Nissan are combining to create the world’s fourth largest car maker. Renault is taking a 36.8% stake in Nissan Motor, and a 22.5% stake in Nissan Diesel, the company’s truck division. All funds will have been transferred by the end of May. The new company will produce five million vehicles per year.
  • The demutualization of Mutual Life of Canada, the first by a Canadian life insurance company, is likely to give the company an initial value of between C$1.9 billion and C$2.9 billion ($1.2 billion to $1.9 billion). Mutual’s 900,000 members vote on the plans to demutualize on June 10. Their windfalls will be in the form of either cash or shares. Any bonuses are contingent on two-thirds of members voting in favour of the plans.
  • US firm Simpson Thacher & Bartlett advised Lehman Brothers and Morgan Stanley on Sweden’s first ever high-yield bond issue.
  • Deutsche Telekom and Telecom Italia are to form the world’s second largest telecommunications company in what they describe as a merger of equals. The merger will be achieved through a stock swap with Deutsche Telekom shareholders owning 57% of the new company. The German government is selling part of its 72% stake in Deutsche Telekom and will hold a 40% stake in the merged company.
  • The Pepsi Bottling Group has issued 100 million common stock shares in an initial public offering worth $2.2 billion. The New York-based group manufactures and distributes Pepsi-Cola drinks.
  • Baker & McKenzie, Freshfields, Sullivan & Cromwell and Davis Polk & Wardwell lead the rankings for privatization issues in 1998, according to tables published in Privatization International.
  • Baltimore-based Piper & Marbury is in merger talks with 340-lawyer firm Rudnick & Wolfe.
  • New York-based firm Anderson Kill & Olick has made 22 partners redundant and is closing its offices in San Francisco and Phoenix
  • Following the break-up of Spanish mid-tier firm Mullerat & Roca at the beginning of this year Sebastia Roca has merged his third of the firm to form Roca & Junyent, a new 60-lawyer firm.
  • Beleaguered French firm Gide Loyrette Nouel has ousted Xavier de Roux as chairman of its management committee.