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                                 E U R O P E

                    Monday, May 1, 2000, Vol. 0, No. 13
  
                                  Headlines


* B E L G I U M *

XEIKON NV: Printing Systems Maker Posts $4.2 Million Net Loss

* F R A N C E *

BOURGOIN: Sell 80% Equity Stake in Poultry Firm Duc to Verneuil Finance
VIVENDI: Tells Investors Not to be Concerned About Debt Levels

* G E R M A N Y *

FORD WERKE: To Spin Off German Units of Visteon
PHILIP HOLZMAN: Gevaert Pursues Shareholders to Compensate for DM400m Losses

* N E T H E R L A N D S *

VAN DORP: Plans to Shed Dairies & Stationery Unit

* P O L A N D *

CENTERTEL: Net Losses in 1999 Rose to 330.8 Million Zlotys ($76.18 million)

* U N I T E D    K I N G D O M *

ALBERT FISHER: Dispose Few Businesses To Bring Down Debt to œ70 Mln.
BELFAST TELEGRAPH: Members of Compcom will Convene to Discuss Future of Co.
GKN WESTLAND: Aerospace Unit to Close UK Production Site
HASLEMERE ESTATES: Faces Hostile Bid
HUNTING: Plans to Quit UK defence business
PHYTOPHARM PLC: Operating Loss of 957,000 Pounds
PRISM RAIL: Sells Franchise Restructuring
WHITBREAD PLC: To Sell its UK Brewing Unit


=============
B E L G I U M
=============

XEIKON NV: Printing Systems Maker Posts $4.2 Million Net Loss
-------------------------------------------------------------
Consistent with its earlier public announcement, Xeikon NV posted a $4.2
million net loss on $41.6 million of revenues for the quarter ending March 31,
2000.  Sales declined, the Company explained, because clients delayed new
purchases while waiting to see what new products Xeikon and its competitors
might introduce.  Additionally, the euro's decline against the U.S. dollar was
blamed for impairing revenues.  

"Our first quarter is traditionally soft, and that was compounded this year by
end customer and channel purchasing delays," Chief Executive Alfons Buts said
in a statement, minimizing the adverse news.

A Reuters report adds that customers deferred purchases of color and black-
and-white presses until after the Drupa trade show, scheduled to begin on May
18 in Dusseldorf, Germany, and that customers are waiting for a new generation
of Web-fed digital color presses, due to come out in June.


===========
F R A N C E
===========

BOURGOIN: Sell 80% Equity Stake in Poultry Firm Duc to Verneuil Finance
-----------------------------------------------------------------------
A month ago, BSA Distribution defaulted on debt payments and was placed under
the management of a legal administrator in France.  At the time, BSAD said
Bourgoin subsidiaries, Duc and ready-meal producer Farmstead were not affected
by the default.

Last week, French poultry firm Duc said Bourgoin -- its troubled parent --
will sell the balance of its 79.9 percent equity stake in the company to
Verneuil Finance.  Terms of the transaction were not disclosed.  Verneuil is
expected to increase Duc's capital base by some FF20 million.  Minority
shareholders, the Company related, "will receive a proposal to sell their
shares at the minimum at the same terms as the sale of the controlling stake."

Duc told Reuters last week that its short-term cash flow had been severely
compromised by uncertainty over the future of BSAD, forcing it to seek a new
backer.

In contemplation of the transaction, Duc's board of directors, at an
exceptional meeting on April 26, named Verneuil Finance Director General
Francois Gontier as president of Duc.



VIVENDI: Tells Investors Not to be Concerned About Debt Levels
--------------------------------------------------------------
Chairman Jean-Marie Messier for French conglomerate Vivendi (EX.PAR) says
potential investors should not be concerned by the level of debt supported by
its utilities arm Vivendi Environment, due to be floated this summer,
according to a report circulated by Reuters. said in early April Vivendi
Environment -- 30-40 percent of which will be listed in either Paris or New
York through a capital increase -- would have debts of 12 billion euros
($11.06 billion).

"They are wrong (to worry about the level of debt)," Messier told reporters
last week.  "Vivendi Environment's target is to complete its first full year
of operation as a listed company with an EBITDA which covers its financial
expenditure six times over.  Analysts think this is very conservative since
the company's environmental businesses have large and foreseeable cash flows.
The usual norm is around five.  That means after its flotation Vivendi
Environment will have room to manoeuvre financially to take advantage of
opportunities to invest in these businesses."

Messier related that Vivendi's total debt -- some 22.8 billion euros at year-
end -- should fall to between 16 and 17 billion by the end of this year.  Debt
will be reduced by selling non-core assets including Sithe Energies, SGE and
real estate firm CGIS.


=============
G E R M A N Y
=============

FORD WERKE: To Spin Off German Units of Visteon
-----------------------------------------------
Ford-Werke AG is to spin off the German units of Visteon, an automotive
subsidiary of the Ford group, according to a report from HANDELSBLATT,
following the example of the US parent, Ford Motor Co., which spun off US
Visteon divisions in mid-April.  Visteon's German activities were to be
integrated into an independent business unit, Ford-Werke said.  Legally, the
German spin-off is to take effect May 1.


PHILIP HOLZMAN : Gevaert Pursues Shareholders to Compensate for DM400m Losses
-----------------------------------------------------------------------------
Gevaert NV, a Belgian investment group, initiated a legal claim for damages
arising from its investment in Philip Holzmann AG last week.  Gevaert holds
Holzmann's former major shareholder Deutsche Bank AG primarily responsible for
DM400m in damages it incurred from its investment in the German construction
group.  

Gravert complains that Deutsche sold it a majority stake in Holzmann without
bringing associated risks to its attention.  By neglecting its duty to provide
full information to the buyer, Gevaert argues, Deutsche is liable for damages
on the grounds of culpa in contrahendo.  The only potential hole in this line
of reasoning is that Holzman prepared the prospectus on which Gevaert relied.  
In November 1999, Holzmann early collapsed as it posted losses topping DM2
billion.  The recapitalization plan -- effected only after intervention by
German Chancellor Gerhard Schr”der to persuade shareholders and financiers to
agree -- cut Gevaert's majority stake to 13%.

Press reports suggest that there is more-than-adequate insurance coverage from
which to pay Gavaert's claims, from policies covering individual directors.


=====================
N E T H E R L A N D S
=====================

VAN DORP: Plans to Shed Dairies & Stationery Unit
-------------------------------------------
Reuters reports that Van Dorp Despec Group says it will shed its Diaries &
Stationery unit in order to focus its attention on wholesaling office products
and information technology consumables.  

The office products and IT consumables arm, active under the trade name
Despec, already generates 94 percent of group sales and is active in a market
which is showing annual growth rates of 15 percent, the Dutch company said in
a statement.  Despec is Europe's third-largest market player in its sector and
tops the list in the Middle East. The firm plans to accelerate expansion
through organic growth and takeovers and wants to step up its e-commerce
activities.

Van Dorp said its Diaries & Stationery arm was quite profitable but said the
unit would have better expansion prospects within another group.  


===========
P O L A N D
===========

CENTERTEL: Net Losses in 1999 Rose to 330.8 Million Zlotys ($76.18 million)
---------------------------------------------------------------------------
Polish mobile operator Centertel, co-owned by TPSA and France Telecom, reports
net losses in 1999 were 330.8 million zlotys ($76.18 million) on sales of
1.056 billion zlotys.  The 1999 losses, Centertel's spokesman Jacek Kalinowski
explained to reporters last week, are mainly due to "investment in its
network."


============================
U N I T E D    K I N G D O M
============================


ALBERT FISHER: Dispose Few Businesses To Bring Down Debt to œ70 Mln.
--------------------------------------------------------------------
From The Times, April 28, 2000:

ALBERT FISHER, the perenially struggling prepared foods group, cut its debt by
42 per cent to œ95.2 million from œ165.2 million in the half year to February
29.

This still leaves the company heavily geared against a market capitalisation
of œ68.4 million after its shares rose ¬p yesterday to 9«p.

The company, whose disposal programme leaves it focused on its chilled seafood
and prepared vegetable businesses, saw its half-year loss fall from œ54.8
million to œ28.7 million. Margins on continuing businesses rose 0.6 percentage
points to 2.8 per cent.

A total of œ123 million has been raised from divestments, incurring costs of
œ4 million, since the company began its strategic review in October 1998.
Terry Robinson, chief executive, yesterday said that Fisher still had a few
businesses to dispose of, which would bring down the debt to the œ70 million
mark in the second half.


He said: "Our real focus now is our much-too-low margin. We know where we've
got to go, somewhere between 6 and 7 per cent, like the rest of our peers.
We're still in the tunnel, but we can see the sunshine at the end of it."
David Hallam, an analyst at Williams de Br”e, said: "By next year it will
start to look like a much more sensible company."

An interim dividend will not be paid. The last dividend was paid two years ago
after the 1998 interim results.


BELFAST TELEGRAPH: Members of Compcom will Convene to Discuss Future of Co.
---------------------------------------------------------------------------
From the Financial Times, April 28, 2000:

Members of the Competition Commission will convene on Friday in a hotel in
Belfast to discuss the future of the Belfast Telegraph, Ulster's leading
regional newspaper.

During the day the members will question a group of politicians, advertisers
and competitors about the proposed acquisition of the paper by Independent
News & Media, the Dublin-based group in which Tony O'Reilly has a controlling
shareholding.

The meeting, which is being held as part of the commission's investigation
into the takeover, is unusual for two reasons: first, it is rare for the
commission to venture from its headquarters in London. Second, the hearing
will be open to the press.

The hearing is the latest example of attempts by the commission to make its
decision-making more transparent. It also underlines the political
sensitivities involved in the takeover of a Northern Irish newspaper with a
predominantly unionist readership by a southern media group.

However, some see the move as little more than a gesture while others believe
it sets a dangerous precedent.

"We do not want to do anything that challenges our reputation for being
thorough and fair," says Denise Kingsmill, the commission's deputy chairman
who is leading the Belfast Telegraph inquiry. "But we do want the process to
be more open and accessible."

The commission has taken similar steps with previous inquiries, including its
investigations of car pricing and supermarket competition.

But competition lawyers say the trend could encourage participants to seek
publicity rather than concentrate on the arguments for and against a merger.
In addition, it is unclear how much the commission will learn. Even though
they have been invited, both Independent News & Media and Trinity Mirror,
which is selling the title, are not expected to attend. They will discuss the
merger at closed hearings in London. Competitors with serious commercial
objections to the deal are expected to do the same.


GKN WESTLAND: Aerospace Unit to Close UK Production Site
--------------------------------------------------------
Reuters, April 27, 2000:

GKN Westland Aerospace, a subsidiary of British engineering group GKN Plc
(GKN.LON), said on Thursday it will close its manufacturing operations at the
Avonmouth factory near Bristol, western England.

The decision to close the site, which employs 300 people in the manufacture of
wing parts and engine nacelles for Rolls-Royce (RR^.LON) and the Airbus
consortium [ARBU.CN], followed a business review, a spokesman for GKN said.
"The aerospace industry is highly competitive. We continue to look at ways to
improve our efficiency. By closing the Avonmouth manufacturing site we reduce
the number of sites we have to operate from 11 to 10," said Peter Baillie,
director of communication at GKN.

"It's about costs and efficiency. It's got nothing to do with the strong
pound," he said.

The site's production will be transferred from September to plants at Cowes on
the Isle of Wight and in Alabama, in the United States.

GKN said there would be possibilities for workers at Avonmouth to transfer and
the company would help them to find alternative jobs.

"There will be some redundancies," Baillie said, although he said could not be
more precise. Avonmouth's design business site, which employs 100 people, will
continue to operate as usual and might even be expanded.


HASLEMERE ESTATES: Faces Hostile Bid
------------------------------------
From Reuters, April 27, 2000:

Haslemere Estates, the British subsidiary of property group Rodamco United
Kingdom NV, launched a hostile bid for Scottish Metropolitan Property Plc on
Thursday valuing it at 152.7 million pounds ($241 million).

Haslemere also tightened its grip over the company by increasing its stake to
29.9 percent and securing acceptances from holders of another 27.3 percent of
the firm.

Listed on the Amsterdam and Frankfurt stock exchanges, Haslemere Estates had
offered 116.5 pence in cash for each Scottish Metro share and drove it to its
year's highest level at 115 pence.

For Haslemere, which has grown through a series of acquisitions in the last
few years, the prize asset of its target is Princes Mall on Edinburgh's
Princes Street.

Its offer is at a premium of 33 percent to the closing middle market price of
87.5p per share on Wednesday and some of the leading shareholders have already
given firm support to the offer.

                               TOP SHAREHOLDERS SAY YES

Prominent among the target shareholders is Monaco-based Tito Tettamanti, who
recently raised his stake in the company to 13 percent, triggering rumours
that he was about launch a hostile bid.

Industry sources told Reuters that apart from Tettamanti, Aegon UK (formerly
Scottish Equitable), Norwich Union and Britannic had also indicated
acceptances to the offer.

Haslemere Chairman Chris Bartram told Reuters he had no indication yet as to
whether the Scottish Metro board would recommend the offer, but its board was
still meeting its advisers, Dresdner Kleinwort Benson.

The bid follows Scottish Metro recent move to seek permission to develop an
extra 10,000 square feet (929 sq metres) of retail space at Waverley Bridge
and this was seen as crucial to Scottish Metro's growth.

Bartram said Haslemere was keen to increase investment in the retail and
industrial sectors in central Scotland.

"The market is very strong right now and we think it's going to continue to
grow," Bartram said in a telephone interview, but added: "We would not really
be looking to make further acquisitions until we have this one under our
belt."

In January, Haslemere's parent Rodamco UK bought a shopping centre in southern
London for 48.5 million pounds. It also has property interests in Scotland.
Rodamco UK's shares closed 1.35 euros higher on the Amsterdam Stock Exchange.
It is being advised by Credit Suisse First Boston.


HUNTING: Plans to Quit UK defence business
------------------------------------------
From the Financial Times, April 27, 2000:

UK defence business Hunting plans to quit the sector and concentrate on oil
services, where it sees better opportunities to increase shareholder value.
The announcement, which prompted a 10 per cent rise in the shares to 128p,
followed the government's recent decision not to renew its biggest contract,
managing the Atomic Weapons Establishment at Aldermaston, Berkshire. A
consortium led by Hunting ran AWE for seven years until a group comprising
BNFL, Lockheed Martin and Serco took over.

Richard Hunting, chairman, told the annual meeting: "We are reviewing all
options for the future of our defence division, for which a number of
expressions of interest have been received."

Ken Miller, chief executive, said the group was unfocused with two divisions,
and "we really are not getting a sensible rating as a diversified company".
Oil services offered better growth, particularly following the acquisition in
January of Iberia Threading, a US drill pipes supplier.

Mr Miller saw growth prospects for the defence interests, but noted that these
were based on one customer - the Ministry of Defence - and that projects
tended to be delayed.

The defence business earns a margin of 7 to 8 per cent on turnover of more
than œ220m. It includes Hunting Engineering, which is integrating weapons
systems on the Army's Apache helicopters and building accommodation for troops
in Kosovo; Hunting Contract Services, which manages MoD facilities and
provides support and training; and Irvin, which makes parachutes.


PHYTOPHARM PLC: Operating Loss of 957,000 Pounds
------------------------------------------------
From Reuters, April 28, 2000:

Phytopharm Plc, a UK pharmaceuticals firm, said on Friday it made an operating
loss of 957,000 pounds for the half-year ending February 29 2000, down from
losses of 1.5 million pounds for the half-year ending February 1999.
The company, which specialises in developing drugs from plant extracts, also
said it received its first milestone payment from U.S. drugs firm Pfizer Inc
for its P57 product, which helps people who want to control their appetite,
such as those suffering from obesity. Phytopharm did not disclose how much
money it had received from Pfizer.

Phytopharm added that it had started its toxicology programme for its P58
product to treat Alzheimer's disease, and that it had scaled up the
manufacture in progress for its products which treat canine eczema and
arthritis.

Shares in Phytopharm, which said on April 13 was picking up a 10 percent stake
in Indian drugs firm Tumkur Chemicals Ltd, closed at 422-1/2p on April 27. The
stock has underperformed the FTSE All Share Pharmaceuticals Index by 12.5
percent so far this year.


PRISM RAIL: Sells Franchise Restructuring
-----------------------------------------
From Reuters, April 28, 2000:

British train operator Prism Rail Plc said on Friday it was in talks with
Britain's rail franchising director about restructuring the company's existing
portfolio of franchises.

Potential outcomes include the creation of a WalesRail franchise through early
termination of the existing Wales & West and Cardiff Railway franchises, Prism
Rail said.

Also, the existing LTS (London, Tilbury and Southend) franchise may be
upgraded, while the WAGN franchise may be ended, dependent on compensation, to
allow Thameslink 2000 proposals to move ahead, it said, adding it hoped the
talks would end by late May.

On Thursday Prism Rail said it was no longer in talks on a possible offer for
the company, ending a process that began in January with several interested
parties.



WHITBREAD PLC: To Sell its UK Brewing Unit
------------------------------------------
From Reuters, April 27, 2000:

British brewing and leisure group Whitbread Plc, which is widely expected to
sell its UK brewing unit, is not expected to announce a deal at its results
next week, a source close to the group said on Wednesday.

Whitbread is expected to exit brewing by the summer as part of a restructuring
of the European beer industry and the two favourites buyers are Belgian
privately-owned brewer Interbrew [ITB.CN] and Dutch beer giant Heineken NV
(HEI.AMS), who are likely to have to pay 300 million pounds ($473.6 million).
But reports that Whitbread will announce a deal on May 4 along with its annual
results are seen as premature.

A Whitbread spokesman said, "There is no more truth in this speculation than
in any of the talk in recent weeks".

Meanwhile, a Interbrew spokesman declined to comment on the market talk
linking it to Whitbread. This came one day after the Belgian brewer said it
planned to go public by the end of this year to raise cash for future
acquisitions.

Interbrew is the clear favourite to buy Whitbread's beer operations as around
one third of Whitbread's annual UK output comes from Interbrew's Stella
Artois, and although another third is from Heineken products, Stella has
clearly taken the upper hand as it is now Britain's best selling premium
lager.

Whitbread brewing, which consist of three British breweries and a near 16
percent share of the UK beer market, have not been core to Whitbread since it
was willing to sell to conclude a pubs deal with Allied Domecq Plc (ALLD.LON)
last summer.

Then, Whitbread lost out to Punch Tavern for the 3,500 Allied pubs, and since
Whitbread has been looking to unload it brewing division. Key to sale talks
will be the Whitbread UK brewing contracts with Heineken believed to stretch
to 2002 and with Stella until 2005.

The European beer industry is the midst of restructuring with Scottish and
Newcastle Plc (SCTN.LON) agreeing to buy Danone's (BN.PAR) Kronenbourg beer
business last month and Britain's Bass Plc (BASS.LON) putting its beer unit up
for sale. Heineken and South African Breweries Plc (SAB.LON) are favourites in
the race for Bass's 24 percent share of the UK beer market.



S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Europe is a daily newsletter co-published by
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