/raid1/www/Hosts/bankrupt/TCREUR_Public/000503.mbx       T R O U B L E D   C O M P A N Y   R E P O R T E R     

                       E U R O P E

         Wednesday, May 3, 2000, Vol. 0, No.15

                       Headlines

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C Z E C H   R E P U B L I C
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SKODA ENERGO: Sale of Two Divisions Expected Soon


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G E R M A N Y
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BMW: Germans Want Quick and Painless Exit From British Manufacturing
VEAG AG: Southern Company Plans New Future for German Electricity Group


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I T A L Y
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ALITALIA: Privatization Will Proceed Despite KLM Withdrawal


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N E T H E R L A N D S
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NEWCONOMY: Posts First Qtr. Operating Loss of 2.7 Mln Euros


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S W I T Z E R L A N D
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SHELL GROUP: $131mln Takeover of the Cressier Refinery by Petroplusseals


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U N I T E D   K I N G D O M
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AB PORTS: UK's Biggest Ports Operator to Receive a Bid from Nomura
ARCADIA GROUP: Shares Fallen from 302«p last May to just 39p
BRITISH TELECOM: Spanish-Dutch Merger Talks Threaten to Freeze Out Company
COLONIAL:  Sells UK Life Insurance & Pensions Business
CORUS PLC: The Worst Performer in the IK Benchmark Stock Index
ICL GROUP: To Offload Its UK Property Liabilities
IPC GROUP: Goes On Sales up to ?1.5bn
UNITED NEWS: To Sell Premier League Hall of Fame For 8 Mln Pounds
VODAFONE AIRTOUCH: Cash Sale of Orange To Cut Its Own High Debt Burden

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C Z E C H   R E P U B L I C
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SKODA ENERGO: Sale of Two Divisions Expected Soon
-------------------------------------------------
Skoda Energo's (SE) transformer producing division, ETD, will be on sale
within a few weeks as the first of Skoda Holding's subsidiaries, while the
sale of another division, producing electrical machines, is being negotiated,
Hospodarske Noviny Daily (HN) says.

"Meetings with potential investors have almost finished, and we are
discussing the price," Skoda Energo CEO Jan Musil confirmed for HN.

Another part of the firm should be sold roughly by the end of July to a
global partner, he said, refusing to specify which section. HN hints, citing
well-informed sources, that this might be the electrical machines division.

Energo, with 2,780 employees, ended last year in the red, according to
preliminary results.


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G E R M A N Y
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BMW: Germans Want Quick and Painless Exit From British Manufacturing
--------------------------------------------------------------------
German automaker BMW is seeking to divest itself of British firm Rover, which
is bleeding ?2m out of BMW every day, threatening to the independence of the
Bavarian car giant. BMW executives are faced with finding a buyer with the
cash or shutting down the plant.  

The Independent newspaper reports BMW executives will seek assurances from
John Towers, the former Rover chief executive leading the Phoenix consortium,
that his group has the ability to make a reasonable bid and that they have a
viable business plan to pull Rover out of the red.  

Another venture capital group, Alchemy, saw its bid fall through as it failed
to offer ?1bn of dealer financing and loans for Rover. BMW also sought
guarantees of parts for Rover and the financial terms of layoffs. BMW could
be planning to make similar demands of Phoenix.
BMW plans to keep Cowley, in Oxford, which will continue to produce BMW
models. Cowley employs 3,500. The issue is the future of Longbridge, whose
10,00 employees are in the most immediate danger.


VEAG AG: Southern Company Plans New Future for German Electricity Group
-----------------------------------------------------------------------
US energy group Southern Company is seeking to acquire a majority stake in
east-German electricity group Veag AG, as reported this week in Handelsblatt
English Summary.

Ahead of hearings at the EU Competition Commission on the planned merger of
German utilities Veba and Viag on Tuesday and Wednesday this week, people
close to the US group Southern Company said that together with its German
subsidiary Bewag AG it was prepared to ensure the "recovery and development"
of Veag on the basis of a stabilization model set out by economics minister
Werner M?ller. Southern would agree to meet all expected losses and would
guarantee to retain jobs at Veag and lignite producer Lausitzer Braunkohle AG
(Laubag), which is to be merged with Bewag and Veag.

Veag was founded in 1990 as the successor company to the combine which
brought together east Germany's lignite-based power-generation activities.

The group was privatized in 1994 and sold to Bayernwerk AG (Viag),
PreussenElektra AG (Veba), RWE Energie AG, and EBH Energiebeteiligungsholding
GmbH - a consortium of Berliner Kraft- und Licht (Bewag)-AG, Energie-
Versorgung Schwaben AG, Hamburgische Electricit?ts-Werke AG und VEW Energie
AG.

As a condition for approving the planned mergers of Viag with Veba and of RWE
with VEW, the German and European cartel authorities have ordered these
groups to sell their shareholdings in Veag as well as in Bewag and Laubag.
Southern Company is interested in acquiring these shares.

People familiar with the situation said Southern Company's aim was to gain a
controlling majority of around 75% in Bewag and Veag. Southern already holds
a 26% stake in Bewag, which in turn holds a 6.25% stake in Veag. The US group
has said that it has sufficient funds for an acquisition but has declined to
speculate on a possible price. In 1994, the sale of Veag and Laubag to its
current shareholders fetched just under DM2.3bn. Veag is known to require
investments of around DM5bn over the next five years.

Southern Company's planned investments in Veag and Bewag represent a vital
component of the group's European strategy. With Veag's power plants, which
account for 12-15% of Germany's power-generation capacity, the US group would
become a leading player on the northern and central European electricity
markets. Further opportunities are seen in Scandinavia, Benelux, Germany,
Austria, Switzerland and Italy as well as in Poland after the EU's planned
eastwards expansion.

Southern Company's plans are aimed at turning Bewag, Veag and Laubag into a
"new force in Germany's electricity industry". Increased competition is to
lower electricity prices also on the east German market. Bewag and Southern
have stressed that their plans are not dependent on government subsidies.


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I T A L Y
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ALITALIA: Privatization Will Proceed Despite KLM Withdrawal
-----------------------------------------------------------
Italy's largest state-owned industrial holding company, IRI SpA, plans to
press ahead with the sale of Alitalia SpA despite the decision by KLM Royal
Dutch Airlines NV to end its alliance with the Italian carrier.

Last week the Daily Deal reported that in a statement on Saturday, IRI
(Istituto per la Ricostruzione Industriale Istituto), which holds 53% of
Alitalia's shares, said that it does not want the privatization of the
airline to be blocked by the split with KLM. "IRI expresses regret for the
decision of KLM to dissolve the alliance and interrupt the negotiations under
way for greater integration with Alitalia," it said.

The Italian financial daily, Il Sole 24 Ore, reported on Sunday that Alitalia
is consulting its lawyers to ascertain if it has a legal claim for damages
from the Dutch company.

IRI said that there will be an Alitalia board meeting on May 2 and it will
hold its own meeting on May 4. The boards of both companies intend to explore
opportunities for alternative alliances, read the statement.

On Friday KLM announced the main reason for its decision were doubts about
the development of the Milan airport, Malpensa, which was intended to become
a hub for the alliance. KLM intends to ask Alitalia to pay back 100 million
euros ($98 million) that the Dutch company had invested in the airport
development.

However, the former Italian transport minister, Tiziano Treu, was quoted in
the Italian daily newspaper, La Repubblica, on Saturday as saying that
difficulties in agreeing how to create a full merger of the two airlines was
the real reason for the split. He said there were differences of opinion over
the valuations involved in such a merger.

Alitalia's market capitalization is around 3.3 billion euros while KLM's is
about half that figure.

The Financial Times reports the Dutch carrier blamed the failure of the
Italian government to privatise Alitalia and the continuing difficulties to
turn the new Milan airport of Malpensa into a significant north Italian hub
for its decision to walk away from the alliance.

Italy's transport minister, Pier Luigi Bersani, suggested the real reasons
for the Dutch decision were 'industrial and financial'. The government had
already shown its privatisation commitment with the swift privatisation of
Telecom Italia, he said.

The Times reports the Italian government is also expected to challenge KLM's
demand to be reimbursed the E100m it has already invested in Malpensa as part
of its original agreement with the Italian carrier.


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N E T H E R L A N D S
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NEWCONOMY: Posts First Qtr. Operating Loss of 2.7 Mln Euros
-----------------------------------------------------------
Recently listed Dutch Internet investment group Newconomy unveiled on Monday
a first-quarter operating loss of 2.7 million euros and said it had acquired
a 15 percent increase in RealMapping Holding BV.

Newconomy, which floated on the Amsterdam bourse on April 20 reported a
positive first-quarter net result of 5.8 million euros which included the
operating loss and a positive revaluation of four of its 25 holdings for a
total of 8.6 million euros.

Reuter reports Newconomy said the figures were in line with management
expectations announced earlier, adding its full-year 2000 net result would be
"much higher" than the 1.4 million euros posted in 1999.

The company, which offers funds and advice to Internet companies has since
added RealMapping, an Internet Protocal database which determines the country
of origin and the language of Web site visitors, to its list of partners.

"(RealMapping) is clearly a first-mover in this field and they have enough in
house to become a world player in the field of reaching target groups via the
Internet," Chief Operating Officer Oscar Appeldoorn said in a statement.

Newconomy listed at at 10.5 euros and had a poor start, but the stock has
strengthened recently and rose 13.5 percent to 14.30 euros on Monday.


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S W I T Z E R L A N D
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SHELL GROUP: $131mln Takeover of the Cressier Refinery by Petroplusseals
------------------------------------------------------------------------
Dutch oil, chemicals and storage group Petroplus International NV said on
Monday it had finalised the $131 million takeover of the Cressier refinery in
Switzerland from Royal Dutch/Shell Group.

Reuters reports the deal includes Shell's wholesale commercial sales
operations in Switzerland, its local storage depots and Shell's share in the
pipelines supplying the refinery.

The deal, first announced in December, adds 68,000 barrels to Petroplus'
daily refinery capacity which doubles the Dutch firm's present capacity. It
will also add up to 875,000 cubic metres of additional non-refinery storage
capacity.

"We expect the acquisition to be both earnings and cashflow per share
enhancing from the first full year of ownership," Petroplus said in a
statement. It added it had bought the assets from Shell at about 15 percent
of their replacement value.

The deal was finalised immediately after regular maintenance of the refinery
and completion of investments in environmental measures. Petroplus said the
outlook for refining margins in 2000 was now considerably better than when
the deal was first announced in December.
In March, Petroplus said it would issue 6.5 million new shares at 11.10 euros
each to finance part of the Cressier takeover.


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U N I T E D   K I N G D O M
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AB PORTS: UK's Biggest Ports Operator to Receive a Bid from Nomura
------------------------------------------------------------------
Associated British Ports, the UK's biggest ports operator, is expected to
confirm Monday that it has had a ?1bn-plus bid approach from Nomura, the
Japanese investment bank, according to the Financial Times on Monday.

Nomura is understood to have used Warburg Dillon Read, the investment bank,
to approach AB Ports, which has not yet responded.

"It's at very early stages and anything could happen," said a person close to
the companies.

AB Ports shares, which have sunk from more than 375p two years ago, closed at
264p on Friday, valuing the group at just over ?900m.

People close to Nomura Principal Finance Group said reports that it would be
willing to pay up to ?1.25bn were too high. Neither side would confirm the
reports but ABP said a statement would be issued to the stock exchange when
it opens after the bank holiday.

Reports of a possible management buy-out were denied. The Nomura camp said
that the approach was "entirely friendly".

AB Ports is the latest so-called "old economy" company to have been targeted
by private finance groups looking for bargains among stocks that have
underperformed during the rush to technology and media shares.

Nomura has made a similar bid for Hyder, the Welsh multi-utility, which is
set to receive a higher offer from Western Power Distribution of the US.

ABP owns 22 ports around Britain and handles almost a quarter of shipping in
and out of the country.

The group has suffered sluggish growth, and recently had to write off ?80m on
its investment in American Port Services - about two thirds of the purchase
price.

But at the annual general meeting on Friday, ABP issued an up-beat trading
statement, claiming that first quarter performance was on target.

Bo Lerenius, the group's chief executive, has reorganised port operations to
expand the core business.

Another person close to the deal said: "The Nomura style is buying businesses
with solid earnings and solid cash-flow, and the port business has good solid
cash flow because it's not quite a monopoly but there isn't huge
competition."

Nomura is also attracted to ABP's 3,000 acres of land, in the process of
being sold and developed, although there are no plans "at this stage" to
split the business.

Following the write-down profits fell 70 per cent to ?32.8m last year, while
underlying profits were up nearly 3 per cent.

Analysts forecast pre-tax profits of ?120m this year.


ARCADIA GROUP: Shares Fall From 302«p Last May to Just 39p
----------------------------------------------------------
Arcadia, the clothing retailer behind the Dorothy Perkins and Top Shop
brands, has not managed to escape the high-street squeeze. Its shares have
fallen from 302«p last May to just 39p. Arcadia announced interim losses of
?60.8m in February. The Sunday Times reported last week Arcadia is to close
400 shops and shed 3,500 jobs, saving ?160m.

Yet Arcadia's directors think its fortunes are about to revive. John Hoerner,
chief executive, bought 50,000 shares at 63p in January, 300,000 at 55p in
February and 326,000 at 45«p two weeks ago. Nigel Hall, finance director,
bought 20,000 at 53p in February.

Arcadia is hoping that its rationalisation programme will boost profits by
?40m in the year to August 2002. Investors may want to follow the directors'
lead and buy for recovery.


BRITISH TELECOM: Spanish-Dutch Merger Talks Threaten to Freeze Out Company
--------------------------------------------------------------------------
British Telecom's global ambitions suffered a severe setback yesterday when
it emerged that Telefonica, the Spanish phone group, and KPN of the
Netherlands were in talks that could lead to a 140bn-euro (?82bn) merger.

The Independent newspaper reports a deal between the two would create a new
force in world telecoms, with fixed and mobile operations spanning Germany,
Belgium and Latin America as well as Spain and Holland.

It would also put paid to long-standing City hopes that BT, whose share price
has fallen 24 per cent since the start of the year, would itself merge with
Telefonica at some stage.

In a joint statement after the markets closed yesterday, KPN and Telefonica
said they were in merger talks with each other but insisted that the talks
were "not certain to produce results."

KPN shares soared 10.65 euros to 121.50 euros yesterday after Spanish press
reports at the weekend on a possible merger between the groups. Amsterdam was
the only European bourse trading yesterday.

KPN was planning a 9bn-euro initial public offering for its mobile operation
later this week, but on Friday delayed the listing because of talks with a
strategic partner. It later confirmed that the partner was Telefonica.

Diedrik Karsten, chief executive of KPN Mobile, said: "We're in talks with a
possible partner in such a way that [the] information must be in the [IPO]
prospectus, but it can't yet be put there."
KPN is ambitious to grow its mobile phone operations. Last year it jointly
bought control of Germany's E-Plus in partnership with BellSouth of the US.
The group aims to become Europe's third-biggest mobile operator. Telefonica
is also highly regarded by investors internationally. Its chief executive,
Juan Villalonga, has embarked on a broad growth programme.

The group has launched a 21bn-euro tender to buy out minority shareholders in
the clutch of Latin American telecoms companies it controls. The group
recently floated off a minority stake in Terra Networks, now the biggest
internet service not just in Spain, but in the entire Spanish and Portuguese-
speaking world. Terra's market value is about 25bn euros.

Analysts say that Telefonica, because of its strong presence in the fast
growing Latin American markets, has long been seen as an attractive merger
partner for either a US operator such as MCI Worldcom or SBC, or a European
operator such as BT or Deutsche Telekom. Surprisingly, few suggested that KPN
and Telefonica were obvious partners, despite both having been involved in
the Unisource group with US giant AT&T and the Swiss in 1994.

Telefonica took its first step into Holland last month with its 5.5bn-euro
purchase of Endemol, the Dutch entertainment group. Telefonica is also one of
the backers of the pan-European internet banking group Unofirst, which
includes First-E in the UK.

KPN and Telefonica have expressed interest in bidding for Orange, the UK
mobile operator Vodafone AirTouch is having to sell as a condition of getting
EU competition approval for its takeover of German rival Mannesmann earlier
this year.

A merger between Telefonica and KPN would intensify pressure for
consolidation among the traditional telecommunications operators.

BT and Telefonica were both partners in the abortive three-way Concert deal
with MCI Worldcom, which failed when BT called off its merger with MCI in
1997. Since then there have been many contacts in an effort to revive co-
operation plans between the Spanish and UK operators, fuelling City hopes
that Telefonica might bid for BT.


COLONIAL:  Sells UK Life Insurance & Pensions Business
------------------------------------------------------
Colonial, Australia's third largest fund manager, announced on Tuesday plans
to sell its UK life insurance and pensions business to Winterthur, the
insurance arm of Credit Suisse Group, for ?332m (A$891m).

The Financial Times reports Winterthur will pay ?286m in cash to Colonial and
a dividend of ?15m, according to a statement to the New Zealand Stock
Exchange. The deal includes Colonial UK companies with net liabilities of
?31m, which are related to the life business.

Colonial's UK operation will now focus on growing its international funds
management business, Colonial Stewart Ivory Investments, which was acquired
by Colonial for about ?9m in March. Colonial Stewart Ivory Investments will
retain a contract to manage ?3.5bn of life and pension fund investments for
Winterthur.

Winterthur has also entered into an agreement to distribute full retail
investment products sourced from Colonial Stewart Ivory Investments.

Colonial, which has A$98bn in assets held and under management, announced on
March 10 that it was being sold to Commonwealth Bank of Australia,
Australia's second-largest bank by market value, for A$8.2bn subject to
regulatory and shareholder approval.

The sale of the UK life and pension business will not affect the rights of
UK-based shareholders in Colonial Limited, most of whom received their shares
through the demutualisation and subsequent listing of the company in 1997.

Colonial's UK shareholders have the right to participate in the Commonwealth
Bank of Australia deal.

The New Zealand shares of Colonial, Australia's third-largest funds manager,
fell 2 cents, or 0.2 per cent, to NZ$10.50 in early trading. Credit Suisse
shares closed unchanged at 310.50 Swiss Francs on Monday, when Commonwealth's
shares were little changed at A$26.073.

Bloomberg reported this week Colonial last year hired investment bank NM
Rothschild to find a buyer for its U.K. life business which the Australian
insurer has owned since 1886, and which has 4.5 billion pounds in funds under
management and 380,000 life insurance and pension policyholders.


CORUS PLC: The Worst Performer in the IK Benchmark Stock Index
--------------------------------------------------------------
Corus Plc, the worst performer in the U.K. benchmark stock index this year,
ended last week at the lowest level since its $2.4 billion takeover of Royal
Hoogovens NV in October as a rising British pound hurts profit.

Bloomberg reports the troubles at the unprofitable Corus, the U.K.'s largest
steelmaker and formerly known as British Steel Plc, show how a strong pound
is hurting British industry. The Hoogovens takeover, Chief Executive John M.
Bryant's plan to reduce the company's link to the pound by buying overseas,
has so far failed to deliver relief, analysts said.

``The pound has gone through the roof and most production is U.K.-based,''
said Johnson Imode, an analyst at Charles Stanley & Co. Corus needs to make
another big acquisition to reduce further its currency risk, he said.

Corus shares this year have fallen by almost half to 86 pence in London,
giving the company a market value of 2.7 billion pounds ($4.2 billion), the
lowest in 14 months. The benchmark FT-SE 100 has lost 9 percent in the first
four months of the year.

For its part, Corus has accelerated its plan to cut 300 million euros of
costs and 2,000 to 3,000 jobs, targeting such goals for 2001, a year ahead of
schedule. The company reported a loss in its first quarter following a loss
by British Steel of 159 million pounds, or 8.22 pence a share in the six
months ending in October.

If the euro remains weak -- it has already lost 11 percent against the pound
in the past year -- Corus has threatened to reduce its U.K. payroll and
expand elsewhere. What's more, customers Ford Motor Co. and Bayerische
Motoren Werke AG are planning to cut back production in the U.K.

The company produced its last steel at the Shelton bar mill
last week, and stainless steel mill Avesta Sheffield, in which it
has a 51 percent stake, has returned to profit.

It is also seeking acquisitions outside the U.K. Since
October it has bought Usinor's steel-rail division in France and
announced plans for a joint venture with Wuppermann Industrie BV
to build a steel galvanizing line in Holland.


HYDER PLC: PPL-Southern Co. Venture Considering Bid for Company
---------------------------------------------------------------
PPL Corp.'s U.K. joint venture with Southern Co. said it may offer to buy
Welsh utility owner Hyder Plc, which last month agreed to be acquired by
Nomura Securities Co. for 2.3 billion pounds ($3.6 billion).

The venture, Western Power Distribution, is considering making a bid of 300
pence a share this week, the U.K.'s Sunday Telegraph reported, citing no
sources. Nomura is offering 260 pence a share.

Hyder said in March it was considering a sale after U.K. regulators ordered
it to cut rates by 10 percent. Western Power wants to acquire Hyder's power
distributor, South Wales Electric Plc. South Wales Electric's operations are
next to those of an electric utility that Western owns, and the proximity
would allow Western to cut employment and equipment costs, analysts said.

Hyder would have to shed its Dwr Cymru unit, Wales's only water utility,
Western Power said. The venture also isn't likely interested in Hyder's
construction businesses, analysts said.

A Hyder spokesman said the company was seeking clarification from Western
Power about the potential bid. He declined to comment further. Spokesmen for
PPL and Southern declined to comment.

PPL shares fell 1/8 to 23 3/4 in trading on the New York
Stock Exchange, while Southern fell 11/16 to 24 1/4. London stock
exchanges weren't trading today because of the May Day holiday.
Hyder rose 2 pence to 250 on Friday.

Hyder, based in Cardiff, Wales, is firing employees and
selling assets after posting a first-half loss of 8 million pounds
in December.

Southern has investments in Germany, the Netherlands, Scandinavia, Asia and
Latin America, and owns utilities with 3.8 million customers in Georgia,
Alabama, Mississippi and Florida.

PPL, based in Allentown, Pennsylvania, has 1.3 million customers in that
state and 800,000 customers in Latin America.


ICL GROUP: To Offload Its UK Property Liabilities
-------------------------------------------------
ICL, the computer services group, is hatching a radical ?1bn deal to offload
its UK property liabilities before its forthcoming flotation, which is
planned for the summer.

The company, which was once the great white hope of the British computer
industry, is in advanced negotiations to transfer its properties to the
consortium Prospero, which, according to the Independent newspaper, includes
Australian-owned construction company Bovis Lend Lease, Bank of Tokyo
Mitsubishi and surveying firm Chesterton.

The deal is modelled on the Private Finance Initiative (PFI), whereby the
consortium will take on ownership of the 120 properties for 15 years and
provide all the services.

ICL executives are keen to complete the deal before the summer, when the
company hopes to return to the London Stock Exchange, following a 16-year
break, with a flotation that will value it at around ?5bn.

Taking the estate - which totals 2m square feet of mainly leasehold
properties - off the balance sheet will make it much easier for analysts and
institutions to value the business.

The deal with Prospero reflects the changing nature of ICL. Formed in 1968,
the company made a name for itself as a manufacturer of giant mainframe
computers and a mini- rival to the American market-leader IBM.

After being bought by Japanese conglomerate Fujitsu and taken private in
1984, the company has gradually shifted the focus of its activities from
manufacturing to computer services.

It now wants to specialise purely in e-business services. To achieve this, it
plans to float off its IT training division, KnowledgePool, and its Finnish
arm, ICL Data, and close its distribution business.

It will then divide into three units: e-Innovation, e-Applications and e-
Infrastructure, and set up an incubation division to nurture start-ups.

But the change of direction will leave ICL saddled with a property estate of
2m square feet that is totally unsuitable for its new needs.

Richard Reed, ICL's director of commercial operations, said: "We are moving
out of manufacturing so our existing estate doesn't meet our requirements at
all. We need more modern office space."

He said that as part of the deal, the consortium would move ICL into a new
estate, totalling 1.2m square feet, within five years.

If the deal is successful, ICL will then consider offloading its worldwide
property estate - covering the US, continental Europe, Scandinavia and the
Middle East - to Prospero.

ICL has been trying to out-source its properties since last June. It
initially entered into discussions with Integrated Workspace Solutions, a
consortium that included investment bank Credit Suisse First Boston,
construction company Amey and serviced office operator Regus.

However, talks are understood to have collapsed over the pricing and
structure of the deal.

ICL is one of a group of companies considering outsourcing its property using
the PFI model. Others include JP Morgan and Lloyds TSB.


IPC GROUP: Goes On Sales up to ?1.5bn
-------------------------------------
IPC, the magazine group that publishes Marie Claire and Woman's Own, has been
put up for sale with a price tag of up to ?1.5bn.

The Independent newspaper reports Telewest, the telecoms and television
group, is among the bidders for the publisher, which was acquired by Cinven,
the private equity group, for ?860m two years ago.

CinVen decided to sell the business after it received a number of approaches.
It has appointed Goldman Sachs and Warburg Dillon Read to examine the
options.

Telewest, which is in the closing stages of completing its merger with
Flextech, the cable TV operator, is keen to develop its "content" offering in
the new information age. IPC can provide internet content through its
publications' websites, and television shows based on its magazines. IPC,
meanwhile, needs a digital distribution system.

The media industry has been driven by the desire for the convergence of
technology and content, taking its lead from the ground-breaking merger of
Time Warner and America Online. One source close to Telewest said: "Telewest
is after content to drive and retain audience viewing. It would be surprising
if they weren't talking to Cinven. The conversations are at an extremely
early stage."

A deal is thought to be some weeks off. Several groups are already thought to
have shown interest, including Bertelsmann of Germany.

Telewest has said that it wants to become a leading content producer and a
magnet for interactive content ideas. That means that it must do deals.

Adam Singer, chief executive of Flextech, will lead the combined group's
acquisition of content. Tony Illsley, Telewest's chief executive, announced
last month that he would quit the company once the merger with Flextech had
been completed.

In the year to 30 September 1999, IPC reported, group operating profits fell
by 3 per cent to ?65.6m. In October, Sly Bailey was brought in as chief
executive to improve the publisher's performance.


STANDARD LIFE: Faces Accusations of 'Scaremongering' Campaign
-------------------------------------------------------------
Standard Life, fighting to avoid being forced to demutualise by Fred
Woollard, the Monaco-based carpetbagger, is facing accusations of scare-
mongering over its claims that policyholders will be substantially worse off
if the life insurance group sheds mutual status.

Ned Cazalet, a respected independent analyst of the life insurance industry,
has written to Iain Lumsden, Standard Life's finance director, accusing him
of misleading policyholders by suggesting that its tax burden will go up
substantially if Mr Woollard get his way.

Mr Cazalet, a former stockbroking analyst who runs his own consultancy,
locked horns with NPI ahead of its demutualisation two years ago.

The Independent newspaper reports Mr Cazalet says he is outraged by some
claims Standard Life has made in its defence, and says he plans to publish an
attack on the company this week. He takes particular issue with Mr Lumsden's
claim that conversion will result in Standard Life being hit for a tax bill
that will cut its value by 12 per cent, saying this ignores the fact that
Standard Life already pays tax and that there are elements apart from
cashflow to be taken into account in valuing the business.

He also attacked Scott Bell, Standard Life managing director, for claiming
policyholders will get much less than the ?6,000 in shares Mr Woollard has
claimed, saying Mr Bell has deliberately used a different scheme from the one
Mr Woollard is proposing.

"The whole thing about tax is nonsense," Mr Cazalet said. "I've no problem
about Standard Life making a case for remaining mutual. If you've got a case
put it forward. But why are they bullshitting their policyholders?

"If demutualisation was damaging to policyholders' interests, why has the
Government actuary and his counterparts abroad allowed the demutualisation of
Norwich Union, NPI, Scottish Widows, Scottish Mutual, Sun Life of Canada,
AMP, Old Mutual, and so on, to go ahead? What makes Standard Life different?"

Dresdner RCM, the fund manager, distanced itself from suggestions that it
backs Mr Woollard. Simon White of Dresdner said yesterday that the group, an
investor in second-hand endowments, plans to hear both sides before it
decides.


UNITED NEWS: To Sell Premier League Hall of Fame for 8 Mln Pounds
-----------------------------------------------------------------
United News and Media Plc is said to be in talks to sell its London soccer
attraction, the Premier League Hall of Fame, for eight million pounds ($12.53
million), The Times newspaper reported on Tuesday.

The site, which opened in June last year, won support from Prime Minister
Tony Blair, but has suffered from poor visitor numbers due to an inconvenient
location and unexciting exhibits, the newspaper said.

Marcus Carling, the chief executive of United Attractions, the division
responsible for the Hall of Fame, is thought to be in final negotiations to
sell the venue to an unidentified buyer, The Times said.


VODAFONE AIRTOUCH: Cash Sale of Orange to Cut Its Own High Debt Burden
----------------------------------------------------------------------
Vodafone AirTouch is pushing for an outright cash sale of Orange, the UK
wireless company owned by its merger partner Mannesmann, as a way of cutting
its own high debt burden and building a war chest to pursue third-generation
mobile licences in other European countries, according to sources close to
the company.

The Financial Times reports such a move potentially puts it on a collision
course with Orange's management, which has set its sights on an initial
public offering of the business later this year. A sale, which could raise
more than ?30bn, could also leave Vodafone with a big tax bill that would not
arise from an IPO.

Hans Snook, Orange's chief executive, would only consider a sale rather than
an IPO if his management team emerged with the top executive positions after
an acquisition by another wireless company, one person familiar with his
thinking said.

Vodafone was left a free hand by European antitrust regulators in deciding
how to dispose of Orange, a big domestic rival, before completing its
acquisition of Mannesmann. A growing need for cash, though, has pushed it
towards a sale rather than IPO.

The unexpectedly high prices paid for third-generation mobile licenses in the
UK has put more pressure on Vodafone to come up with new ways to fund what
are now expected to be higher licence costs elsewhere in Europe. The company
also faces net debt estimated at about ?20bn after the Mannesmann
acquisition.

The company has other potential sources of cash, such as the sale of a 7.5
per cent stake in French telecoms company Cegetel to Vivendi and a partial
float in Australia of Vodafone Pacific.

Orange has become increasingly attractive after winning one of five new third
generation licences in the UK last week, and the list of companies said to be
interested in a purchase now includes France Telecom, MCI WorldCom,
Telef˘nica and KPN Telecom.

The companies will have to wait until a European Commission trustee has been
appointed, thought to be due within the next two weeks to oversee the
disposal process.

The Sunday Times also reported last week a surprise bid could come from
outside the telecoms industry. Yahoo, the internet giant, is thought to have
looked at Orange and other new-media companies may be weighing up a bid. Such
a move could avoid regulatory issues and leave Snook in control.

Snook is also being wooed by Canning Fok, the Hutchison Whampoa chairman, to
consider a new job outside Orange.


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
Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard Group, Inc.,
Washington, DC.  Peter A. Chapman and Sharon Cuarto, Editors.

Copyright 2000.  All rights reserved.  ISSN 1529-2754.

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