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  • The Zedillo administration continues to privatize the nation's most valued sectors, making1998 a promising year for international investors. Privatizations in 1996 and 1997, particularly in telecommunications (satellites, PCS auctions and long distance telephone competition) and transport (railways and ports), indicate Mexico's commitment to the long-term economic development model. Privatizations in 1998 will involve permits or concessions in natural gas, airports and telecommunications.
  • The central bank's circular 2.785 of November 27 1997 limited the total amount of margins and premiums paid by foreign capital vehicles to 5% (or 20% or 50%) of their respective net assets, when equivalent total investments in derivatives are the same as (or up to three or more than three times) their net assets.
  • Gazprom has arranged a US$3 billion loan to finance its investments in the Yamal pipeline project and to refinance a US$1.2 billion bridge loan. The eight-year facility will be secured against revenues from Gaz de France supply contracts.
  • US/UK automotive parts supplier LucasVarity is selling its VarityPerkins Engines business to US rival Caterpillar for US$1.3 billion. While the deal surprised some analysts, who viewed Perkins as an essential part of LucasVarity, the acquisition is seen as a good strategic fit for Caterpillar.
  • The Australian Mutual Provident Society recently carried out a public offering of its 9.1% interest in Westpac Banking Corporation for US$1 billion. The Westpac Corporation shares were sold by Australian Mutual Provident in the form of STRYPES (Structured Yield Product Exchangeable for Stock), underwritten by Merrill Lynch.
  • New York's LeBoeuf, Lamb, Greene & MacRae LLP has opened in Houston. It will be the firm's 19th office and its 15th in the US.
  • UK firm Sinclair Roche & Temperley is to form an alliance with Singapore firm Colin Ng & Partners. Sinclair Roche, which specializes in shipping law, is to cooperate as closely with the Asian banking firm as it can without breaking strict bar regulations. A merger is forbidden by the Singapore law society.
  • Swedish firm Hellström & Partners, Stockholm, announced on January 12 it is excluding star finance partner Peter Sederowsky from the firm. The announcement comes after Sederowsky, who has joined rival firm Setterwalls, announced in his own letters that Hellström & Partners was to cease operating.
  • Montreal firms McMaster Meighen and Mackenzie Gervais are to merge in March 1998. The merged firm will be called McMaster Gervais and will be one of Montreal's biggest, with about 100 lawyers.
  • UAE
    Central Bank Circular No. 19 of 1997 establishes guidelines for banks, finance and investment companies to follow when lending funds to persons who wish to subscribe to shares of public joint stock companies. The growing number of initial public offerings of shares in public joint stock companies in the UAE represents an attractive and relatively new investment opportunity for UAE nationals.