if old layer exists, and new layer is already there, it takes everything on old layer and puts them on new layer.
Basicly this means that you want to merge layers. If layers are used in blocks or xdata then this is a lot more complicated than renaming a layer.
Also: You can't merge layer '0' or layer 'Defpoints'.
The attached lisp is a modified version of a lisp from the expresstools. I don't use it any more, because it's very slow and new objects are not supported.
The suggestion from my previous post is fast and only needs one line of code. Just make sure that the .dws (or rename the .dws to .dwg) that you've created with the LAYTRANS command is in your search path.
(or (member "laytrans.arx" (arx)) (arxload "laytrans"))
(acet-laytrans "YourFile.dws" 7)