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  • Reed Elsevier, the Anglo-Dutch publishing group, has agreed to purchase two businesses from California-based publisher Times Mirror. Reed Elsevier will acquire Matthew Bender and the 50% of Shepard's Company that it does not already own. The deal is valued at $1.65 billion and will create the second-largest legal publisher in the US.
  • Argos, the UK retail company, has accepted a £1.6 billion ($2.66 billion) bid from rival Great Universal Stores. The 650 pence ($11) a share offer was approved by 58% of shareholders. The deal was secured despite months of resistance from Argos directors. It will create one of the UK's largest retail companies.
  • A measure under consideration by the US Senate is designed to extend confidentiality privileges in tax matters. The measure is part of a wider IRS restructuring and reform bill.
  • US oil company Arco is to buy Union Texas Petroleum for $3.3 billion. The cash deal includes debt and preferred stock, and will be financed by commercial paper and other short-term borrowings. After-tax savings of at least $85 million a year are expected as a result of the acquisition.
  • Siebe, a UK engineering group, has made an agreed £421 million ($690 million) bid for Eurotherm, a UK-based industrial controls manufacturer. The deal will see Siebe overtake US group Honeywell as the world leader in process automation.
  • A recent ruling by the European Court of Justice (Safir v Skattemyndigheten, Case C-118/96) has failed to give a clear principle on the subject of the taxation of pension funds. The case related to taxes on life assurance, but some companies had hoped that it would lead to a more general ruling that could apply to pension funds. Multinationals are keen to establish pan-European pension funds to make savings and ease cross-border personnel movements.
  • Vickers, the UK-based defence group, is considering rival bids from German car manufacturers for its Rolls Royce Motor Cars business. BMW appeared to have secured the deal with a £340 million ($554 million) bid in April this year. However, the bid was topped in May when Volkswagen offered £430 million for the business. Vickers recommended the Volkswagen bid to shareholders.
  • Robeco Groep of the Netherlands is to acquire the New York investment house Weiss Peck & Greer for $575 million.
  • Hambros, the UK investment bank has accepted a £428 million ($685 million) bid from Investec, the South African financial services group. Investec will take Hambros' stake in two fund management companies, a private equity business, a varied collection of investment stakes and more than £200 million in cash. The deal sets up a fight for Guinness Flight Hambro, the fund management company. Investec wants to buy the company but Hambros' management is reluctant to sell.
  • US communications group SBC Communications has agreed to a $57 billion merger with Chicago telephone group Ameritech. The stock acquisition of Ameritech will increase SBC's market share in 13 states.