These transactions often involve global due diligence and regulatory approvals, particularly from competition authorities. This complex transaction required a cooperative effort of the New York, London, Brussels and Washington offices. The firm advised on the first successful contested takeover in Japan's corporate history, representing Cable and Wireless plc, the British telecommunications group, in its acquisition of Japan's International Digital Communications, Inc., a long-distance telephone business. For example, we pioneered the use of recapitalizations as a mechanism to reduce the need to recognize good-will upon consummation of an acquisition. Joint ventures are an avenue by which companies around the world seek to pool special capabilities, exploit potential synergies and minimize risk in pursuing new lines of business.
Joint ventures have immense potential rewards.
Their formation and the design of corporate governance mechanisms capable of ensuring the harmonious operation of the business without interfering with the attainment of the underlying economic objectives also pose complex legal challenges. We have assisted sovereigns and their advisors in the structuring and consummation of more than 100 privatization transactions. We also advise buyers on the acquisition of state-owned entities.