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A liberalization of US Federal Reserve rules on the securities activities of bank holding company affiliates could be a window of opportunity for foreign banks. By Nancy Jacklin of Clifford Chance, New York

US insurance company Cigna Corporation agreed to acquire managed care concern Healthsource for US$1.4 billion. The deal boosts Cigna's position as a leading provider of healthcare and is part of a trend towards consolidation in the health-insurance industry.

Bermuda-based, New York-quoted reinsurance company Partner Re is to take over French insurer Société Anonyme Française de Réassurance (SAFR). The acquisition was prompted by Swiss Re's Swfr1.1 billion (US$752 million) offer for the remaining shares of SAFR, of which it owns 21%. The outstanding shares belong to rival French insurers AGF and Athéna. Once Swiss Re has acquired these shares, it will sell SAFR to Partner Re.

US firm Milbank, Tweed, Hadley & McCloy is rebuilding its project finance practice in London after the departure of four project finance partners to rival firm Shearman & Sterling last year. Partner Thomas Siebens has returned to London from a three-year residency in the firm's Singapore office. He will develop the global capital markets reach of the firm's project finance and emerging markets group.

Cross-default clause amendments have become standard in many derivative contracts. But they are not always welcome, argues Ebo Coleman, barrister, London, proposing alternative wording

Growing numbers of foreign futures brokers are taking advantage of the registration exemptions offered by the US Commodity Futures Trading Commission. By Michael S Sackheim of Brown & Wood LLP, New York

The new Law of the Mexican Institute of Social Security is set to enter into force on July 1 1997, from which date employees will be entitled to have their pension funds managed by 'retirement fund administrators' (administradores de fondos para el retiro or 'afores'), which can be private bodies. Funds are at present managed by the Social Security Institute.

Texas buy-out company Texas Pacific Group is offering an undisclosed amount, believed to be at least US$800 million, for Del Monte Foods, the US's largest branded producer and distributor of tinned fruit and vegetables.

American Electric Power and Public Service Company of Colorado made an agreed £1.5 billion (US$2.43 billion) offer for UK energy company Yorkshire Electricity. The two American companies are using their joint subsidiary Yorkshire Holdings for the bid. The offer follows the acquisition last year of four British electricity companies by US corporations and is in line with a trend towards cross-border utilities acquisitions. The financial advisers to Yorkshire Electricity are NM Rothschild and Goldman Sachs International. Merrill Lynch is advising Yorkshire Holdings.

The last 18 months have seen an explosion in the number and size of US firms with English law capability in their London offices. Other firms are steadfastly following their own strategy. Paul Lee reports