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  • New York law firm Wachtell, Lipton, Rosen & Katz is advising Vulcan Materials, a construction company based in Alabama, on its acquisition of CalMat, a Los Angeles construction company. The deal is valued at $890 million.
  • IBC and LLP, two UK business-to-business publishing groups have announced their decision to merge. The all-share deal will create a group worth £315 million ($503 million).
  • Rival US petroleum companies Ultramar and Phillips Petroleum have signed a joint venture agreement in a bid to cut costs and increase productivity. The operating assets of Ultramar and the refining, transportation and marketing of Phillips will be combined into a joint venture company, Diamond 66.
  • US forest products firms International Paper Company and Union Camp Corporation are to merge in a stock for stock deal valued at $6.6 billion.
  • US-based communications group AT&T is to acquire Vanguard Cellular, a US mobile phone operator. The deal is worth $1.5 billion in cash, and stocks, and $600 million of debt. The acquisition is due to be completed in the first quarter of 1999.
  • The Finnish govenment has sold its 21.9% stake in Sonera, the country’s leading telecommunications company in the largest-ever offering by a Finnish issuer. The deal is valued at over $1.4 billion. The offering comprised 160 million shares, including 119 million American depository shares sold to institutional investors outside Finland.
  • US petroleum companies Exxon and Mobil are to merge in a transaction worth $79 billion. Exxon will gain control of the new company. This is the largest merger in US history. The new company will have a market value of $250 billion.
  • Deutsche Post, Europe’s largest postal enterprise is to purchase a 50% interest in Securicor, a UK-owned parcel service. The price of this stake is £223 million. Tony Beare, partner at Slaughter and May in London, handled the tax side for Deutsche Post.
  • The Canadian GAAR has yet to show its teeth, but tax advisers and their clients should be under no illusions about its potential bite. Robert Couzin of Ernst & Young, Toronto examines the rule and highlights the principal areas of concern
  • The OECD conference on e-commerce laid down basic principles and areas for debate. But, as Christine Sanderson of PricewaterhouseCoopers Global and Electronic Business Group reports, there is work still to be done for states to avoid the need for unilateral action