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  • The US natural gas utility KN Energy is to acquire gas pipeline company Midcon Corporation from Occidental Petroleum. The deal is worth $3.49 billion. KN has already spent $1.5 billion on acquisitions since 1989. The transaction will provide KN with more than 41,600 kilometres of pipeline in 15 US states, and boost annual revenue to $4.7 billion.
  • UK brewer Bass has disposed of Coral Bookmakers to fellow bookmakers Ladbrokes. The deal is worth approximately £375.5 million ($604 million). Bass was advised by tax partner Charles Hellier at Linklaters in London.
  • US chemical group Hercules has made a hostile bid for US chemicals company Allied Colloids, a UK producer of water-treatment chemicals. The deal is valued at $1.8 billion.
  • Virgin has sold Virgin Radio to Ginger Media Holdings for £81 million ($130 million). Mark Joscelyne from law firm Olswang advised Ginger Media Holdings on tax. UK City firm Macfarlanes advised Virgin. Partner Ashley Greenbank was responsible for tax advice.
  • The Spanish government is to privatize Aceralia, the leading steel group in Spain. The value of the transaction is Pta123 billion ($816 million), but this will increase to Pta137 billion on excercise of the over-allotment option.
  • Spain's 1998 budgetary measures have introduced some amendments to the methods for mitigating economic double taxation of dividends distributed by non-resident subsidiaries. These methods are described briefly below.
  • In our previous article (see International Tax Review, Dec/Jan 1998, p55), we highlighted potential tax law changes proposed by Japan's ruling Liberal Democratic Party (LDP). The LDP's tax reform proposals have now been adopted by prime minister Hashimoto's Cabinet.
  • In June 1997, the Chinese government announced its intention to collect a withholding tax of 10% on interest derived by foreign banks on offshore inter-bank loans on-lent to their branches in China.
  • Fee income figures for the big six firms show that the corporate appetite for international tax advice is voracious. Four of the firms plan mergers to help service this demand but, as Phillippa Cannon reports, alternative strategies exist
  • In an attempt to halt tax evasion, Germany's tax authorities are to consider offering rewards for information on evaders. Deputy finance minister Jurgen Stark announced on January 7 1998 that guidelines have already been agreed. To avoid being swamped by vindictive informants, the scheme is likely to apply only to large amounts of unpaid tax.