It will also be necessary to place sterling back inside the exchange rate mechanism fairly promptly. Although the 1999 start date still seems a safe distance off, a series of different legislative measures will need to be introduced by next year at the latest - the "opt-in" Bill, independence for the Bank of England, a referendum Bill, and a contentious budget to hit the Maastricht convergence criteria, to name the main ones. It is funded by about 150 subscribers, drawn from banks, insurance companies, law firms and accountancy practices, which each pay an annual subscription of pounds 4,000 in return for receiving all the body's publications and help with resolving problems that occur in the various markets It does not deal with individual disputes.. There is a growing realisation in Britain that decision time is looming on the question of our opt-out from the first round of economic and monetary union. It said it had had conversations with various people about its views, but denied it had received withdrawal threats.City solicitors believe it involved itself in this matter because its chairman, Lord Donaldson, was interested as a result of being the judge in the Datafin case, which set down that the courts would not generally interfere in bids while they are being conducted.The Financial Law Panel is technically a subsidiary of the Bank of England. But by bringing the voluntary regime of the Takeover Panel into a statutory framework, they appear to create openings for legal review - and therefore threaten the speed and flexibility of the current system.The Financial Law Panel submitted a paper to the House of Lords committee in which it said it did not think the directive would have much practical effect.

The Lords have taken the same hostile view of the proposals as the Takeover Panel, the non-statutory body that referees City bids.The Department of Trade and Industry has already made clear that it agrees with the Takeover Panel that the European plans would lead to a greater risk of tactical litigation by companies involved in bids.The Commission proposals for harmonising takeover rules seek to extend the UK system across Europe. One law firm is said to be so angry over what it regards as the Panel's over-sympathetic response to the plans for harmonisation of takeovers across Europe that it is planning to withdraw its funding. The threat comes days after a House of Lords Select Committee concluded that the European Commission proposals for harmonisation were ill-conceived and should be opposed by Britain. He is also chairman of Courtaulds, the chemicals firm, and the information group Reuters Holdings.. The Financial Law Panel, set up about three years ago by the Bank of England and the Corporation of London in response to the swaps problems at London's Hammersmith and Fulham council, is facing a revolt by some members over its conciliatory attitude to the proposed European Union directive on takeovers. The pounds 200m price of the 50 per cent stake for Allied was determined by the length of this supply agreement.The decision by Allied Domecq to get out of the brewing business is widely seen as the work of the new Chairman, Sir Christopher Hogg, who took up the non-executive post in April.

Allied Domecq will write off pounds 300m from its balance sheet to cover the cost of leaving the brewing business altogether.Allied will be left with its high-profile spirits brands, including Beefeater Gin and Courvoisier Cognac, retail outlets such as Victoria Wine and Dunkin' Donuts and 4,000 pubs.The exit from brewing would enable the company to source its beer from a bigger variety of brewers, at more competitive prices, when existing agreements to buy from Carlsberg-Tetley expire next year. Allied Domecq, the drinks, foods and retailing group, is expected to make a statement today confirming for the first time that negotiations are taking place, though sources suggest the small print has yet to be finalised. Hundreds of job losses are expected from the combined workforce of 8,000 employees, based at 14 breweries, with roughly 4,000 each currently working for Bass's brewing business and Carlsberg-Tetley.One of the Carlsberg-Tetley breweries, in Warrington, had already been earmarked for closure though more are now expected to be shut by Bass in the rationalisation.The deal will return Bass to the top of the UK brewing industry, a position it lost last year when Scottish and Newcastle bought Courage.In the process it will raise Bass's share of the market from 23 to around 40 per cent, combining well-known brands such as Carlsberg Lager, Tetley Bitter and Castlemaine XXXX from Allied, with Carling Black Label, Tennent's and Grolsch from Bass.It will also involve the Danish brewer, Carlsberg, swapping its half- share in Carlsberg-Tetley for a 20 per cent stake in Bass's brewing operations. One analyst said: "If anyone is going to drive a hard bargain it's Nigel Rudd. He has more experience of takeovers than the rest of the management of the entire electricity industry put together.". A long-awaited pounds 200m deal by Bass, the brewer, to buy Allied Domecq's half-share in Carlsberg-Tetley, the Anglo-Danish brewing business, will be announced this week.

A buyer would have to offer at least 650p, a 70p premium over Friday's closing share price. Tough negotiating by the existing management could push the final price to 700p, valuing the company at pounds 1.4bn.It is thought that if the two sides cannot agree a price this week, it could lead to a hostile bid. The management has also been sceptical of the potential savings from the "multi-utility" groups.However, because of its efficiency, East Midlands would not come cheap. Yesterday a spokeswoman for East Midlands said: "We can only say what we always say, that we don't comment on speculation. He also allegedly wrote a 62-page book - possibly ghost- written by colleagues - on early fundamentalists and the "duties of holy warriors".Nevertheless, in a war whose undercover armies - both government and insurrectionist - have sought to cause confusion among their enemies, Zitouni's death cannot be confirmed.This weekend's statement purporting to come from the majlis es-shoura, for example, claims that a militant identified as Antar Zouabri has taken over the leadership.