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  • The St Petersburg legislative assembly is considering three draft laws that would provide tax incentives for foreign investors in the city. The draft laws propose state support of investment activity and tax concessions. An additional proposal calls for the establishment of a commission to help resolve investment conflicts. The commission would be composed of politicians and business representatives.
  • 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.
  • 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.
  • 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.
  • 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.
  • Elan Corporation, a specialist pharmaceuticals group based in Ireland, has made a successful £420 million ($700 million) bid for California-based pharmaceuticals company Neurex. The acquisition marks the company's first step into the US hospitals market. Elan is making the transformation from a research company to a drugs group.
  • The merger of automobile groups Daimler Benz and Chrysler will create a combined group worth $92 billion. It has been estimated that legal and accounting advisers will earn up to $200 million from advising on the deal.
  • Dutch chemicals group Akzo Nobel has made a successful £1.8 billion ($3 billion) bid for Courtaulds, the UK paints and fibres business. The deal will make Akzo Nobel the world's largest paints company. The offer is worth 450 pence a share.