/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/000809.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, August 9, 2000, Vol. 1, No. 66 Headlines C R O A T I A CROATIA AIRLINES: Posts USD 13.5 Million Of FY99 C Z E C H R E P U B L I C PRVNI SPORITELNI: Credit Union Imposes Forced Administration PRAZSKE VODOVODY: Eight Bidders Line up for Waterworks RUCKL GLASS NIZBOR: Senator Explains His Company's Debts TACHOVSKA MLEKARNA: G-Milk Group Dairy Facing Bankruptcy TRANSPORT: Creditors Sell Off Production Facilities F R A N C E NOOS: Expects 900 Million Franc Loss in 2000 NOOS: NTL And Morgan Stanley To Buy French Cable Stake SEAGRAM: Charles Bronfman Offers to Support Buy-out G E R M A N Y ADTRANZ: DaimlerChrysler sells Adtranz to Bombardier VEBA: Eon Sells Units to Schroder Ventures for E2.6bn H U N G A R Y HOLLOHAZA PORCELAIN: Struggles after Last Year's Losses PHYLAXIA PHARMA RT: Veterinary Medicine Maker Settles Finances N O R W A Y AKER MARITIME: Norwegian Entrepreneur Rejects Bid P O L A N D BANK HANDLOWY: Posts $2.9 Million Q2 Net Loss ELECTRIM: Posts PLZ 231.3 Million Q2 loss NETIA: Posts PLZ 200.4 Million Q2 Net Loss S L O V A K I A (S L O V A K R E P U B L I C) LODENICE KOMARNO: Shipmaker's Creditors Accept Business Plan S W E D E N DRESSMART.COM: Sweden Online Retailer under Reconstruction U N I T E D K I N G D O M ASTRAL FINANCIAL SERVICES LTD: Liquidation proceedings BOARD CO LTD: Liquidation proceedings BRECKTON LTD: Liquidation proceedings BRITISH AIRWAYS (BA): Regulatory Problems may Destroy KLM Deal CAPITAL CAF?: Capital Loses Appetite and Sells Cafe to Yates CLARKE DEVELOPMENTS LTD: Liquidation proceedings CLICKMANGO: Must Raise ?300,000 in Bridging Finance CLICKMANGO: Troubled Internet Retailer Hopes For A Rescuer EQUITABLE LIFE: Form Action Group EQUITABLE LIFE: Set to Pay ?10m to Keep Staff ETI SOLUTIONS LTD: Liquidation proceedings F1 KEY LTD: Liquidation proceedings G S E (ESSEX) LTD: Liquidation proceedings GLOBELINK SYSTEMS LTD: Liquidation proceedings H H D LTD: Liquidation proceedings HYDER: Backs WPD at 340p a Share LEYLAND DAF: Creditors are Still Owed by Collapse Transport Firm LOXKO PLC: Liquidation proceedings MONTINEX: Goes into Receivership NEEDAM BFCC LTD: Liquidation proceedings RGS HOLDINGS LTD: Liquidation proceedings SMM SYSTEMS LTD: Liquidation proceedings STIKYBIZNEZ LTD: Liquidation proceedings SYLTONE: To Cut 200 Jobs Due to Restructuring TELEWEST: UPC Likely to Enter Bid TELEWEST: Shares rise on hopes of bid TET HOLDINGS LTD: Liquidation proceedings TECHRAM LTD: Liquidation proceedings TOUCH TECHNOLOGY LTD: Liquidation proceedings TRISTAR COMMUNICATIONS LTD: Liquidation proceedings UNILEVER: $22bn Bank Loan to Pay for its Acquisition of Bestfoods UNISPHERE SOLUTIONS: Posts a Net Loss of $278.6m VGR LTD: Liquidation proceedings YUSICO UK LTD: Liquidation proceedings WASTEPACK GROUP: Duke Street Buys Stake in Waste Recycling Firm ============= C R O A T I A ============= CROATIA AIRLINES: Posts USD 13.5 Million Of FY99 -------------------- CENTRAL EUROPE ONLINE INVESTOR & REUTERS August 7, 2000 Croatia Airlines, the national flag carrier, will ask shareholders to carry over a 1999 loss of HRK 113 Million (USD13.5 Million), according to a note to shareholders in the official gazette Narodne Novine. The result is slightly better than expected by the state-owned company that is in the process of renewing fleet. With much of 1999 marred by the Kosovo crisis and higher fuel and financing costs for the purchase of new aircraft, it had expected to turn in a loss of USD 17-20 Million. In an invitation to a shareholders meeting, scheduled for September 7, the carrier put 1999 revenue at USD 882 Million and costs at 995 Million. It gave no comparison with a year earlier. By adding in June the last of six new Airbus A-319s and A-320s, ordered back in 1997, Croatia Airlines arrived at a fleet of four A-319s, three A-320s and three ATR-42s. =========================== C Z E C H R E P U B L I C ============================ PRVNI SPORITELNI: Credit Union Imposes Forced Administration --------------------------------- CZECH A.M. & HOSPODARSKE NOVINY August 3, 2000 The Credit Union Supervisory Office yesterday imposed forced administration on Prvn¡ Sporiteln¡ Druzstvo for activities causing damage to members and creditors. PSD becomes the 14th credit union the office has placed under forced administration. PRAZSKE VODOVODY: Eight Bidders Line up for Waterworks ------------------------------------------------------- Prague Business Journal August 7, 2000 Eight bidders last week submitted preliminary interest in the state sell-off of Prague's water and sewerage company, Prazske Vodovody a Kanalizace, the largest in the country with Kc 3.2 billion ($82 million) in annual turnover. The list is dominated by some of Europe and North America's most prominent companies, including three who had already stated their interest - French Vivendi, Suez Lyonnaise des Eaux and U.K.-based Anglian Water - and such names as Saur, Bouygues, Bechtel, Edison International and Enron. The turnout was considered a positive sign, since doubts had arisen after the Czech government said it would sell off only the operator, and not the owner of the Kc 14 billion in water infrastructure in the capital, Prazska Vodohospodarska Spolecnost. PVK reported a profit of Kc 28 million last year. Aside from strategic investors, the European Bank for Reconstruction and Development also expressed interest to the government in taking an equity position alongside the selected investor in the sale of 66% of PVK. "We have received requests from all large strategic investors," said Milos Wagner, the investment banking head at Czech Komercni Banka, which is handling the selection process on behalf of the state. However, last Thursday, the National Property Fund (FNM) announced a change from its original plan to sell the 66% stake in two phases. It now plans to sell the shares in a single block, which along with other factors is expected to delay the process by about two months until year-end, instead of the October 31 deadline set out initially. "The bidding is not interrupted, but we will be publishing new conditions on it sometime in September, so it's about a two-month delay," said the FNM's press spokeswoman, Jana Viskova. Neither the FNM nor Komercni Banka would disclose the names of the investors. Viskova added that the privatization commission had changed the conditions after having seen the investors' applications on the recommendation of the adviser. ,They have probably realized [the need to change the conditions] in the course of the tender," she said. This first round of preliminary selection only required investors to submit basic information on themselves - whether or not they are a water management company serving more than 100,000 people for at least three years and whether or not they are a going concern. The FNM has asked a minimum price of some Kc 721million (roughly $18.5 million) for the 66% stake in PVK, though bankers estimated final proceeds could reach between $50 million and $100 million. Three investors have already publicly declared interest and divided up the Czech Republic's other water management companies between them: Vivendi, Suez Lyonnaise des Eaux and Anglian Water. Suez claims to serve 2.2 million people in the Czech Republic, although this number includes all 700,000 clients of North Moravian water company SmVaK, where Suez holds a minority stake of 45% while Anglian has the majority of 53%. It is closely followed by Vivendi with 2.15 million customers, while Anglian Water takes the third spot with 1.3 million. One relative newcomer is the consortium of French Saur International (owned by French construction giant Bouygues, French energy group Electricite de France and water management company Saur) and German Energie Baden-Wurttemberg (which is already involved in Prague's utilities companies Prazska Energetika and Prazska Teplarenska through its subsidiary GESO). Saur has been involved in the Czech Republic's previous water acquisitions alongside Vivendi through their joint-venture, CTSE. But in the Prague bid, they have struck out on their own. Saur thus claim to supply some 800,000 users in the Czech Republic. Other major overseas players include London-based International Water, which is jointly owned by American Bechtel Enterprises, the financial subsidiary of private utilities giant Bechtel Group, and Edison International, the California-based utility. A subsidiary of U.S.-based energy giant Enron is also reportedly in the running, Azurix, though representatives could not be reached for confirmation. Another likely bidder was environmental subsidiary RWE Umwelt Aqua or RWE, and Berliner Wasser is also rumored to have shown interest. The EBRD's local representative, Jacob Sadilek, said his institution was waiting to talk to the winner about its possible entry. "I'm in touch with [Deputy Finance Minister Jan] Mladek, the National Property Fund, and the advisers from Komercni Banka," said Sadilek. "We are talking about equity participation alongside the strategic investor." He explained the EBRD was waiting to see who would be selected before it offered to join the game. "In 1998 we did talk about wanting to focus on the financial sector, but that was when this sector was important. Now it's moving more towards utilities, telecommunications, water, and transport." The privatization would likely include offering further financing to the run-down system of some 3,000 kilometers of waterworks in addition to buying an equity stake. Bankers say that PVS is in need more financing on the top of a credit from European Investment Bank, which pledged to provide a Kc 1.9 billion ($49 million) line of credit to the City of Prague for renovation of the system through 2003. "I'm sure that investors would come up with some financing in their bids," said the investment banker, who confirmed his client was already calculating that into his bid. The government has not explicitly said whether it would prefer an investor who has been firmly established in the country, or give the job of catering to Prague's 1.4 million customers to a newcomer. "It's true that none of these companies have been here before, but they are more flexible [than the three already heavily present," said an investment banker who works for one of the outsiders. One manager who works for a major French group admitted that "they have been around for over a hundred years and it shows.. There is a bit of bureaucracy." According to Prague Mayor Jan Kasl, there are going to be several aspects considered by the members of the selection committee, which has representatives from his office including himself, the ministries of Finance, Agriculture and Environment, and the National Property Fund. "I realize that the National Property Fund is going to be keen on reaching the highest revenues possible, while we are on the commission because we as the city want to make sure that the prices won't be increased too much," Kasl said, pointing to an issue which had been one of the obstacles to the privatization of PVK that had been stuck for several years. The investment banker added, though, that being quite aware of this, none of the investors were likely to propose major price increases. RUCKL GLASS NIZBOR: Senator Explains His Company's Debts ---------------------------- CZECH A.M. & LIDOVE NOVINY 5 August 2, 2000 Glass producer Ruckl Glass Nizbor, owned by Senator Jir¡ Ruckl, has debts to Komercn¡ Banka of Kc 33 mln. Ruckl explains the situation stems from last year when a "bad" business partner failed to make good on an Kc 18 mln debt. TACHOVSKA MLEKARNA: G-Milk Group Dairy Facing Bankruptcy ----------------------------------------------- CZECH A.M. HOSPODARSKE NOVINY B4 August 2, 2000 Another G-Milk Group dairy, Tachovska Mlekarna, is allegedly facing bankruptcy. The report follows the July bankruptcy of Zichovicka Mlekarna, based on a petition filed by G-Milk Plzen, a GM subsidiary. TRANSPORT: Creditors Sell Off Production Facilities ----------------- CZECH A.M. & MLADA FRONTA August 2, 2000 The creditors' committee at Transporta approved the sale of the bankrupt transport machinery producer's largest production facility to Tranza and another to MiWeKon. The future buyers are currently renting the two factories. =========== F R A N C E =========== NOOS: Expects 900 Million Franc Loss in 2000 ---------------------- EUROPEAN INVESTOR & REUTERS August 8, 2000 France's biggest cable operator Noos expects a 900 million French franc ($124.7 million) loss in 2000 but to break even in 2004, majority shareholder Suez Lyonnaise said on Monday. Francois Jaclot, vice chairman of Suez Lyonnaise which has a 50.1 percent stake in the company, also told a news conference that Noos shareholders would invest five billion francs to bring the firm to breakeven in 2004 and that the company had debts of 140 million francs. Earlier on Monday Morgan Stanley Dean Witter Private Equity and NTL Inc said they were buying France Telecom's 49.9 percent stake in the company that is France's biggest cable television operator with 737,000 subscribers. Suez Lyonnaise will control from now on 50.1 percent of the firm, NTL 27 percent and MSDWPE 22.9 percent. NOOS: NTL And Morgan Stanley To Buy French Cable Stake ------------------------- Aug 7,2000 Morgan Stanley Dean Witter Private Equity and NTL Inc said on Monday they were buying France Telecom's 49.9 per cent stake in Noos, France's biggest cable network operator with nearly 737,000 subscribers. French utilities and communications group Suez Lyonnaise des Eaux , which owns the remaining 50.1 per cent of Noos, said the NTL alliance would enable it to profit from the British company's expertise in cable networks to improve Noos' services. At 0945 GMT, Suez shares were up 1.45 per cent at E174.4 on the Paris stock market at 1031 GMT, outperforming the blue chip CAC- 40 index which was up 0.67 per cent , according to Financial Times. Financial Times said that the deal which values Noos at E2.7bn ($2.45bn) excluding debts, according to the companies involve expected after rival cable network operator UPC pulled out of the race on July 31. France Telecom said in a separate statement it was selling its stake for E1.35bn and would book a pre-tax capital gain of E534m. Suez said it would make gains of E300m on the deal. NTL and MSDW will have 27 per cent and 22.9 per cent of Noos respectively when the sale is finalised at the end of 2000. NTL said in a statement its 27 per cent stake, worth $627m, would be financed by the issuance of a one-year loan note to France Telecom for 80 per cent of the sum and a six-year unsecured loan note for the remaining 20 per cent. For its part, NTL said the purchase of Noos would enable it to accelerate plans to offer cable services in key European cities, which already include London, Frankfurt, Geneva, Dublin and Stockholm. SEAGRAM: Charles Bronfman Offers to Support Buy-out --------------------- August 7 2000 The Financial Times reported, Seagram drinks business is being put up for sale ahead of the spirits and entertainment company's merger with French group Vivendi, with Morgan Stanley due to begin formally seeking offers for the operation later this month. According to one person familiar with his plans, Charles Bronfman, co-chairman of Seagram, has offered to commit part of the money his branch of the family will make from the Vivendi merger to back a buy-out of the drinks division. A branch of the Bronfman family has launched a last-ditch effort to keep a minority stake in the Seagram drinks business founded by family patriarch Samuel 76 years ago. With some of the largest global drinks companies thought to be preparing their own bids for the business, however, the attempt is being given only a slim chance of success on Wall Street. Any contribution to a bid would probably amount to less than $1bn and be made in association with another company, leaving the Bronfmans with a minority stake in the operation, this person added. Mr Bronfman is understood to have offered to throw part of his family fortune behind an offer by a drinks company which is not big enough to mount a buy-out on its own, such as Bacardi or Brown Forman. However, one person close to the situation, as well as investment bankers not directly involved in the transaction, cautioned that Mr Bronfman would face a tough battle against the big drinks groups that have expressed interest in the Seagram business. With extensive distribution arms of their own and the opportunity to cut costs after a merger, these companies could afford to pay more than a smaller buyer backed by Bronfman money, these people said. ============= G E R M A N Y ============= ADTRANZ: DaimlerChrysler sells Adtranz to Bombardier ----------------- AGEFI COM & AFP August 4, 2000 The German-US car giant DaimlerChrysler took another step Friday in its strategy of shedding non-auto activities by agreeing to sell its Adtranz rail technology unit to Canadian group Bombardier for 790 million euros (735 million dollars). After weeks of speculation, the third-biggest car maker in the world announced in a statement that it had agreed to sell 100 percent of loss-making DaimlerChrysler Rail Systems GmbH (Adtranz) to the Canadian aerospace and rail transportation group. VEBA: Eon Sells Units to Schroder Ventures for E2.6bn ---------------------------- FINANCIAL TIMES August 7 2000 Eon, the German utility group, disposed of its Veba Electronics businesses yesterday to a consortium led by Schroder Ventures of the UK for E2.6bn ($2.36bn), according to Financial Times. It is the latest in a series of asset sales - mainly in telecommunications - since the group was formed in June from the combination of Viag and Veba. The move, which had been expected for some weeks, clears the way for further disposals in Eon's drive to focus on energy and speciality chemicals. The deal comes amid an emerging pattern of asset disposals since the German government pledged this year to abolish punitive capital gains taxes on the sale of industrial shareholdings. The company is now expected to try to find buyers for more of its specialised businesses, such as MEMC, a US-based silicon wafer manufacturer, VAW Aluminium, and Klockner & Co, a metals distributor. Eon has said it also wishes to float all its remaining shares in Stinnes, a logistics unit that was partially listed in June. Vincent Gilles, utility analyst at Warburg Dillon Read, estimated that taking into account yesterday's deals, the company had more than E10bn in cash at its disposal. Eon is one of a number of utilities groups understood to be in talks with Suez Lyonnais des Eaux of France about a possible combination of their businesses. ============= H U N G A R Y ============= HOLLOHAZA PORCELAIN: Struggles after Last Year's Losses ---------------------------------- BUDAPEST BUSINESS JOURNAL August 7, 2000 While former president Arpad Goncz was meeting the Emperor of Japan, the prime minister and other Japanese political leaders in Tokyo last April, Andras Chikan - who accompanied the president in a business delegation - was also busy meeting with business people. As commercial and marketing director for porcelain maker Hollohaza Porcelain Rt, Chikan did not travel so far home merely to engage in a string of business lectures, cocktail parties and networking opportunities. His mission was to promote his own product and to establish an exclusive distribution company with Japanese partner Rohpa Corp. Exports are a high-priority concern for the company, which is majority-owned by the Hungarian Development Bank Rt (MFB.) The nation's third-largest porcelain company, after Herend and Zsolnay, Hollohaza registered an Ft 80 million loss on Ft 1.02 billion revenue last year. "We want to focus on exports," said Istvan Mahalek, general manager. "And the most important possibilities are Japan and the U.S." Last year, exports to Japan accounted for a scant 5% of total exports, while those to the U.S. accounted for 12%. Exports to Germany still account for as much as 40% of total exports, but company executives say that it has been a difficult destination because business is slack in the entire market. Last year was a bad year for Hollohaza, after three consecutive years of earning profits of about 4% to 6% on total revenues. The losses are partly attributed to the failure of Hutschenreuter Hungaria Porcelain Factory (HHP) Kft, a joint venture between Hollohaza and Germany-based Winterling AG. Bankrupted last year, Hollohaza's 10% stake in the German company had been a significant boon. The joint venture company used one of two production lines in the northeastern Hungarian village of Hollohaza, owned by the company of the same name. Since the closure of Hutschenreuter, the production line has remained idle. Another reason for the losses, though to a lesser extent, were sluggish exports - accounting for only 15% of last year's total revenue, compared with over 25% in previous years. Faced with a predicament, the company slashed the number of employees last year from 620 to just 500. The company plans to maintain the current size of its workforce this year, according to Mahalek. The company's target is to register a profit once again this year on Ft 1.1 billion in expected revenue. One of the biggest challenges for Hollohaza is to establish its brand name in export markets. Mahalek recalled with a laugh that, one time several years ago, a local English-language weekly referred to the Hollohaza product line as "Herend for poor people" because of similar patterns but lower prices. Though better known in Hungary as a producer of lower-cost tablewares for everyday use, the company actually targets the market for hand-painted gift item. Mahalek said that the company is not simply aspiring to be another "Herend" by selling similar products for similar prices. Rather, he expressed his belief that there is a niche market currently up for grabs. "We want to sell our brand name, but not at Herend's expense," said Mahalek. "Our [export] items are hand-painted, but not identical to theirs. We're targeting a different segment [of the population]. And because we're not as well known, our prices have to be lower." With prices about 60%-80% cheaper than Herend's, Mahalek said that gift items should not be priced too cheap if a brand owner wants to develop a reputation for quality. Now, with the establishment of a joint venture sales company in Japan, Hollohaza is busy attending exhibitions and fairs. These efforts are gradually bearing fruit. Recent deals include a sale of tea sets to the Washington Hotel in Shinjuku, Tokyo. Hollohaza is now in talks with a few unnamed companies over a possible deal that would enable Hollohaza to revive its currently idle production line, which Mahalek hopes will be finalized within a few months' time. PHYLAXIA PHARMA RT: Veterinary Medicine Maker Settles Finances ------------------------- BUDAPEST BUSINESS JOURNAL August 7, 2000 Phylaxia Pharma Rt will be ready to sell out to an Irish investor just as soon as the ailing veterinary medicine maker has carried out a fundamental reorganization, CEO Peter Toth told a press conference last Thursday. Phylaxia will start talks with the Ireland-based veterinary medicine producer The Cross Vet Co this fall, and the new owner could enter the company before the end of the year, Toth said. "It's not certain yet how big is the stake [The Cross Vet] is interested in," Toth told the Business Journal on Friday. "It could be anything between a minority and a majority stake." Phylaxia, which has a registered capital of Ft 911 million ($3.2million), closed last year with Ft 883 million losses. The company's chief product was banned last year in Hungary, but is now avaiable as a medication. Phylaxia shares have seen unusually high trading volumes on the Budapest Stock Exchange since the start of rumors that The Cross Vet was interested in buying the company. Phylaxia and The Cross Vet have been cooperating in research and development, and the two companies' product structures would complement each other, Toth said. Phylaxia is currently in the process of ridding itself of its debts .While a year ago, the company was mired in a Ft 1.4 billion debt, it has now reduced it to Ft 200 million, Toth said. Meanwhile, Phylaxia is about to sell two valuable properties in Districts 10 and 14 in Budapest. An undisclosed buyer offered Phylaxia Ft 1.1 billion for the two properties. Part of the revenue from the sale will go towards repaying debts, he said. Phylaxia has laid off 159 of its 270 employees and the final staff will be around 80, Toth said. The company will outsource all of its production and only keep its headquarters and R&D facilities in Budapest. As a result of the property sale, Phylaxia should end this year with profit, even though operations will remain loss-making, Toth said. Preparing for the new investor to come in, Phylaxia also started to work on resolving some long-pending issues. The company will seek to settle royalty and trademark disputes with its main competitor, vaccine producer Ceva-Phylaxia Rt, previously held by French Sanofi Sante Animale and now owned by the Paribas industrial holding. Phylaxia Pharma is claiming several million dollars for the use of its name and for lost royalty payments. According to a 1991 agreement, Ceva-Phylaxia - then called Phylaxia-Sanofi - was supposed to pay 5% of its annual revenue in Hungary to Phylaxia Pharma in royalties, but the payments never materialized, Toth said. The company is also trying to settle a dispute with the co-owners of seven of the ten pharmacies it acquired through the purchase of drug wholesaler Sanopharma. The pharmacies are 74% owned by Phylaxia, while the rest is held by pharmacists who are now trying to obtain complete control. The dispute is about the price of Phylaxia's stake, which the company says is worth some Ft 220 million. =========== N O R W A Y =========== AKER MARITIME: Norwegian Entrepreneur Rejects Bid ----------------------------- 7 Aug 2000 Kjell Inge Rokke, the Norwegian entrepreneur, on Monday rebuffed a NKr6.3bn ($707m) offer for Aker Maritime, the oil service company controls by Kvaerner, the Anglo-Norwegian industrial engineering group, Financial Times reported. The surprise offer raises the stakes in a power struggle that began last month, when Aker Maritime bought 26 per cent of Kvaerner after shareholders rejected a NKr5.5bn-NKr6bn bid for the engineering group. Kvaerner on Monday tried to end the conflict by launching an all- share offer that values Aker Maritime at NKr4.5bn, representing a premium of 39 per cent over the past five trading days. Kvaerner would also assume NKr1.8bn of Aker Maritime's debt and Aker Maritime's right to buy Kvaerner shares for NKr2.6bn. A tie-up would create the world's third largest oil service entity, with NKr22bn in combined revenues and 21,000 employees in 20 countries. Mr Rokke, a 63 per cent shareholder in Aker Maritime, turned down the offer only hours after it had been announced. He said Kvaerner's recent share price weakness meant the offer valued Aker Maritime at only NKr4.3bn. Kvaerner, however, said it would still submit an offer within the next weeks to buy all of Aker Maritime's shares. Kvaerner expects a combination of the two companies' oil and gas businesses to offer NKr250m in annual synergies. A tie-up would also help in Kvaerner's ambitions to lift revenues in its oil and gas business by 30-50 per cent over the next two years, reach 7 per cent ebitda margin and make further acquisitions within oil and gas, said Kjell Almskog, Kvaerner chief executive. Aker Maritime said its board would evaluate Kvaerner's proposal as soon as it received a formal bid. Shareholders then have two weeks to accept the offer. Kvaerner said it has not received any pre-acceptances from Aker Maritime shareholders. =========== P O L A N D =========== BANK HANDLOWY: Posts $2.9 Million Q2 Net Loss -------------------- CENTRAL EUROPE ONLINE INVESTOR & REUTERS August 6, 2000 Poland's top corporate Bank Handlowy said on Friday it had turned to a net loss of PLZ 12.9 million ($2.93 million) in the second quarter of the year from the 137.7 million profit showed in the same period of 1999. Handlowy, which has been recently taken over by U.S. financial giant Citigroup , said its profit on banking activity grew 21 percent to PLZ 383.8 million ($87.18 million) for the quarter. Its bottom-line result was hit by a 229.3-million provision created for the quarter, the bank's preliminary unconsolidated results showed. ELECTRIM: Posts PLZ 231.3 Million Q2 loss ----------------- CENTRAL EUROPE ONLINE INVESTOR & REUTERS August 6, 2000 Poland's telecom and power firm Elektrim said on Friday that its unconsolidated net loss for the second quarter widened to PLZ 231.3 million ($52.54 million) from the 34.3 million loss showed in the same period last year. Elektrim said the operating loss for the parent company soared 94 percent to almost PLZ 45 million for the quarter. Elektrim's revenues dropped 75 percent to PLZ 40.4 million, while its pre-tax loss for the three months ending June 30 stood at 231.3 million, more than 11 times the PLZ 20.2 million loss reported for the same period of 1999. NETIA: Posts PLZ 200.4 Million Q2 Net Loss ------------------- CENTRAL EUROPE ONLINE INVESTOR & REUTERS August 6, 2000 The net loss of the parent company of Polish telecom operator Netia widened to PLZ 200.4 million ($45.52 million) in the second quarter of this year, more than double the loss from the same period of last year. The company's preliminary unconsolidated results prepared under Polish accounting standards also showed an operating loss of PLZ 166.9 million versus PLZ 99.8 million in the April-June period of last year. Netia plans to release its consolidated results on August 30. ================================================ S L O V A K I A (S L O V A K R E P U B L I C) ================================================ LODENICE KOMARNO: Shipmaker's Creditors Accept Business Plan ---------------------- CENTRAL EUROPE ONLINE INVESTOR & REUTERS August 6, 2000 Slovak shipmaker Lodenice Komarno a.s. (SLK) on Friday gained backing from its creditors to pursue a plan to revitalize its business after NATO led bombing of Yugoslavia last year disrupted its operations. Last month SLK requested a state loan-guarantee worth DEM 29.5 million ($13.65 million) after disruption of transport on the Danube river due to NATO air strikes prevented it delivering 12 of 14 ships ordered by customers. NATO air strikes in April 1999 destroyed key bridges in the north of Yugoslavia, splitting Europe's longest waterway in half and stranding barges on both sides. All of SLK's deliveries were to be made to Black Sea ports. A committee of the ship maker's creditors said it accepted company plans to revitalize its business by gaining new orders but would stick to plans to gain control of the company's assets. "(The committee) sticks to its demand for achieving control over the (company's) property, which is currently partially allocated outside SLK," the creditors said. The company posted a loss of SKK 289.91 million in the first four months of this year, almost a third of its full 1999-loss of SKK 775 million. In 1998 SLK delivered 14 ships worth some four billion Slovak crowns. The company is still waiting for the government to decide whether it will provide the requested loan guarantee after making adoption of a consolidation plan submitted by SLK to creditors a precondition for government help. The SLK General Director Milan Kopcok said last month the company would use the funds obtained from the state-guaranteed loans to finish the production of three ships. He estimated overall funds needed by SLK this year, apart from the state guarantee, at DEM 30 to 40 million. SLK's shares are registered on the Bratislava Stock Exchange. It last traded on July SKK 10 at 160, between its year-low of 105 and year-high of SKK 233. =========== S W E D E N =========== DRESSMART.COM: Sweden Online Retailer under Reconstruction -------------------- EUROPEAN INVESTOR & REUTERS August 7, 2000 Swedish Internet clothing retailer Dressmart.com is likely to be restructured, possibly under new ownership, a court-appointed administrator said on Monday. When unlisted Dressmart sought protection from its creditors two weeks ago, Stockholm city court appointed lawyer Roland Sundqvist to work on a company restructuring and report back to the court on August 8. "The probable outcome is that the company restructuring will go ahead as I propose," Sundqvist told Reuters, adding: "There are some interested parties, but I do not wish to say who they are." Dressmart's main owner Peter Sandberg has been quoted as saying the clothing retailer is looking for new capital -- a task made difficult by the high-profile collapse of Swedish-founded online retailer boo.com earlier this year. Dressmart is one of several online ventures promoted by Swedish IT entrepreneur Kjell Spangberg. It has created a European online department store for men's clothing with operations in Scandinavia, Britain, France, Germany and the Netherlands. The idea, endorsed among others by former Swedish prime minister Carl Bildt, an advisor to Dressmart, was that business professionals do not have time to go shopping for clothes and prefer to browse through catalogues on the web. =========================== U N I T E D K I N G D O M =========================== ASTRAL FINANCIAL SERVICES LTD: Liquidation proceedings ----------------------------------------- Company Name: Astral Financial Services Ltd Company No: IR Appointed on: 14/07/00 Type: Members Appointed by: Members Liquidators: Paul Venn IPno: Firm Name: Address: Route des Landes Vale City Postcode: Guernsey GY3 5JJ BOARD CO LTD: Liquidation proceedings ----------------------------------------- Company Name: Board Co Ltd - The Company No: 3448400 Com. Business: Manufacture/Supply Notice Boards Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Richard I Williamson IPno: 8013 Firm Name: Campbell Crossley & Davis Address: 348-350 Lytham Road City Postcode: Blackpool FY4 1DW BRECKTON LTD: Liquidation proceedings ----------------------------------------- Company Name: Breckton Ltd Company No: 3392449 Com. Business: Restauranteurs Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Bernard Hoffman IPno: 1593 Ian D Yerrill 8924 Firm Name: Gerald Edelman Address: 25 Harley Street City Postcode: London W1N 2BR BRITISH AIRWAYS (BA): Regulatory Problems may Destroy KLM Deal ------------------------------------ August 7,2000 Financial Times report that Rod Eddington, British Airways' chief executive, warned on Monday that the regulatory complexities of the proposed merger with KLM could yet kill any deal. Mr Eddington said talks with KLM "had progressed very sensibly" in the two months since negotiations began. A merger would create the world's third largest airline. While refusing to comment on the specifics of the talks, Mr Eddington acknowledged that regulatory issues were beginning to dominate the thinking at both airlines. "This is a very complicated deal. There is a Brussels dimension and a Washington dimension. You can never be sure with a deal like this that all the pieces will come together," he said. A person close to BA said there was a growing expectation that Mr Eddington would use the "regulatory excuse" to put the talks with KLM on hold. "While it is not exactly doom and gloom, the probability now is less than 50 per cent in favour of a deal getting done in the next few weeks," he said. The proposed merger with KLM is widely regarded as the brainchild of Lord Marshall, BA's chairman. "Would you rush your shareholders into a deal that wasn't your idea?" asked the person close to the company. KLM shares closed more than 5 per cent higher at E30.23 while BA dipped 3p to 388p. Mr Eddington's comments came as BA reported a pre-tax loss of ?50m ($75m) for the first quarter. Mr Eddington acknowledged that the European operation was "still a problem." In the last financial year to March, the airline's profits were wiped out by a ?310m loss in Europe. A deal with KLM is seen as one way of stemming the losses. Both airlines believe the biggest obstacle to any deal remains the ability of the UK and US governments to renegotiate the restrictive air services agreement between the two countries, known as Bermuda II, to create a fully liberalised market Financial Time said. CAPITAL CAF?: Capital Loses Appetite and Sells Cafe to Yates ------------------ The Sunday Times August 6, 2000 Capital Radio's ill-starred venture into the restaurants business is about to come to an ignominious end. The company's flagship Capital Cafe beneath the station's headquarters in London's West End is to be taken over by Yates Brothers and may be turned into one of its Ha! Ha! bars. Capital paid ?57m for the My Kinda Town restaurant chain four years ago in a move that left investors with stomach ache. Richard Eyre, then managing director, defended the move, saying: "Having had people throw every argument they can think of at me for the past month, I emerged from the experience thinking the logic of the deal was even more watertight than when I went into it." Capital's DJs used the cafe to broadcast their shows and show off celebrity guests. It opened in 1996 in a blaze of publicity with an all-star party including Matthew Perry and Matt Le Blanc of Friends and Lisa Stansfield as guests. The move came during the last round of "brand extension" before the dotcom boom. Capital said the purchase reflected its desire to "widen its interests as a media and entertainment group". But investors never took to the diversification into the restaurant business and the group sold most of its sites three years later. Capital had to write off ?10.75m against its profits. It sold its seven Latin restaurants, which operated under the Havana! brand, to Surrey Free Inns for ?9.45m in cash. The company also had two Paris restaurants, which it sold to Groupe Bertrand for ?1.6m. Capital said then that it intended to keep its four Radio Cafes. But after the sale of the London site, it will be left with only one, in Birmingham, which is also slated for sale. The company was unavailable for comment but the flagship restaurant is expected to close within the month. Staff at the site are not taking bookings for September when Yates is expected to move in. Since moving out of the food chain, Capital has concentrated on radio and its move into the internet. After an ambitious series of takeovers, the group now has almost 60% coverage across Britain. It is also expanding into web radio - a big growth area in America - and digital radio, which is expected to take off towards the end of this year. Capital is in talks with satellite and cable companies to carry its online radio stations. CLARKE DEVELOPMENTS LTD: Liquidation proceedings ----------------------------------------- Company Name: Clarke Developments Ltd Company No: IR Appointed on: 14/07/00 Type: Members Appointed by: Members Liquidators: Malachy A Stephens IPno: Firm Name: M A Stephens & Co Address: Presentation House Harbour Street City Postcode: Mullingar CLICKMANGO: Must Raise ?300,000 in Bridging Finance -------------------------------- BBC NEWS August 7,2000 Struggling online retailer Clickmango, identified by many with the image of its highest-profile investor, the actress Joanna Lumley, has been given a stay of execution. The e-tailer of health and beauty products is to continue trading past its planned closing date of the end of August. The company says it has enough cash to extend operations into September after being given more leeway by major creditors while negotiating terms for ending its contracts. It is hoping that a rescuer may yet appear to save the company - especially given the 20% increase in sales and four-fold increase in site traffic in the past week. "We're feeling cautiously optimistic that an extra month of operation might give us enough time to conclude negotiations with one of the many blue-chip white knights who have made approaches this week," co-founder Robert Norton said in a statement. Clickmango said last week it was winding down its business in an orderly manner to ensure that it paid its staff and creditors in full. That would be in contrast to the chaotic collapse of free- spending high profile e-tailer Boo.com, which failed in May. Mr Norton said Clickmango had needed to raise ?300,000 ($500,000) in bridging finance. The company quickly raised the ?3m it needed for its April launch but has since been unable to raise an additional ?300,000 needed to keep the company going until the autumn. Mr Norton was keen to distance the company's failure from that of Boo.com. "This is not Boo Two. We still have money in the bank, and we have not spent a fortune on advertising. We have made the decision to wind down the company in a responsible fashion to make sure creditors and staff get full payment," he said. Many internet companies have found it difficult to raise the cash they need to continue doing business since investor sentiment turned against technology stocks earlier this year. Actress Joanna Lumley invested in the company and became its figurehead when it was launched. Her contract would be honoured, the two founders said. CLICKMANGO: Troubled Internet Retailer Hopes For A Rescuer ----------------------- THE TIMES August 7, 2000 Clickmango.com, the troubled British Internet retailer that sells health and beauty products online, yesterday said that it would operate past its planned closure date at the end of August, amid hopes that a rescuer may appear. The company said that it had enough cash reserves to extend operations into September as a result of favourable outcomes in negotiating contract termination with its main creditors and thanks to the loyalty of its staff. "We're feeling cautiously optimistic that an extra month of operation might give us enough time to conclude negotiations with one of the many blue-chip white knights who have made approaches this week," Robert Norton, co-founder, said. The company said that traffic on the site, launched in April 2000, had quadrupled during the past week. Sales had increased by 20 per cent. Clickmango said last week that it was winding down its business in order to pay staff and creditors in full. Mr Norton said that the company had been unable to raise some ?300,000 in bridging finance. Atlas Venture, which last September provided the bulk of the ?3 million that Clickmango needed to set itself up and operate for a year, decided to pull the plug at a time when prospects for e- tailers are looking exceedingly grim. Clickmango's woes were the latest high-profile blow to confidence in Britain's Internet sector, with business-to-consumer firms facing particular uncertainty after the collapse earlier this year of boo.com, the high-spending fashion retailer. Clickmango hired Joanna Lumley, the actress, to endorse its site. Mr Norton founded the company with Toby Rowland, son of Tiny Rowland, the late tycoon. EQUITABLE LIFE: Form Action Group ------------------------ Financial Times reported some members of Equitable Life, the mutual life assurer that put itself up for sale last month, have formed an action group to explore the possibility of salvaging its mutual status. Some 20-30 members of Equitable, which has over 600,000 high value customers, have formed the Equitable Members' Action Group (EMAG), and set-up a website. The group planned to write to Equitable's management this week, and was seeking a meeting to discuss its objectives. EMAG said its principle aim was to obtain and disseminate information on Equitable's position. It has held one meeting since the House of Lords ruled that Equitable directors acted unlawfully in reducing final bonuses paid to 90,000 holders of guaranteed annuity policies, and plans another this week. Secondly, it wants to ensure that the Equitable board evaluates the option of staying mutual, either by remaining independent, or merging with another mutual. Finally, the group is investigating whether any further legal action can be taken to protect the interests of members, particularly the option of ring-fencing funds relating to guaranteed annuity policies. Tom Lake, a Reading-based software consultant, and the group's membership secretary, said EMAG had received support from both holders of guaranteed annuity policies and with-profit policies. It is seeking a ?10 contribution from members. He said that while the number of members was small, together they accounted for "several million" of the Equitable's net value. Equitable members received letters at the weekend telling them how their benefits would be affected by the ruling. EMAG said it had already established contact with Equitable, but the life assurer said that it was not aware of any contact. Equitable has appointed Schroder Saloman Smith Barney to handle its sale, which could see the company valued at up to ?5bn. The life assurer is expected to attract a high level of interest from big European insurers, UK life assurers and banks. EQUITABLE LIFE: Set to Pay ?10m to Keep Staff ----------------------- THE TIMES August 7, 2000 Equitable Life, the mutual life insurer that is for sale, will pay its 400 pension sales staff up to ?10 million in bonuses - but only if they stay with the company after it is sold. The salesforce, who stand to get an average of ?25,000 each from the deal, will also be paid their salaries for more than a year, even if they sell nothing. Analysts have given warning that Equitable Life's value - likely to be about ?4 billion - will plummet if it cannot keep a significant part of its salesforce. The sales staff are the most productive in the life insurance industry, writing an average of ?6 million in new business every year, a big attraction for any buyer. It is understood the retention package guarantees a full basic salary until the end of 2001, plus a bonus of 50 per cent of earnings during that period if sales staff are still with Equitable in January 2002. Last year the average salesforce member earned ?50,000, meaning that the scheme could cost more than ?10 million if all the salesforce stayed. Equitable put itself up for sale after being hit with a ?1.5 billion bill to honour guaranteed annuity pension policies after a House of Lords ruling. To pay it, Equitable has told 400,000 other with-profits policyholders that their pensions will not rise in value for the first seven months of the year. ETI SOLUTIONS LTD: Liquidation proceedings ----------------------------------------- Company Name: ETI Solutions Ltd Company No: 3127908 Com. Business: Software Consultancy/Supply Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Malcolm E Fergusson IPno: 6766 David M Walker 3606 Firm Name: BKR Haines Watts Address: Park House Park Square West City Postcode: Leeds LS1 2PS F1 KEY LTD: Liquidation proceedings ----------------------------------------- Company Name: F1 Key Ltd Company No: 3273873 Com. Business: Information Technology Consultants Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Stephen R Penn IPno: 6899 Firm Name: Chatsworth & Co Address: Norley House PO Box 615 City Postcode: Doncaster DN4 0YE G S E (ESSEX) LTD: Liquidation proceedings ----------------------------------------- Company Name: G S E (Essex) Ltd Company No: 3220783 Com. Business: Builders & Floor Layers Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors and Members Liquidators: A J Clark IPno: 8760 Firm Name: Carter Clark Address: Meridien House 62 Station Road City Postcode: London E4 7BA GLOBELINK SYSTEMS LTD: Liquidation proceedings ----------------------------------------- Company Name: Globelink Systems Ltd Company No: 3271709 Com. Business: Telecommunications Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Geoff Robbins IPno: 6622 Neil C Money 8900 Firm Name: Casson Beckman & Partners Address: Lichfield Place 435 Lichfield Road City Postcode: Birmingham B6 7SS H H D LTD: Liquidation proceedings ----------------------------------------- Company Name: H H D Ltd Previous Name: Havenmode Computers Ltd Company No: 3187101 Com. Business: Publishers Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors Liquidators: Kian Seng Tan IPno: 8032 Firm Name: K S Tan & Co Address: 10-12 New College Parade Finchley Road City Postcode: London NW3 5EP HYDER: Backs WPD at 340p a Share ------------------ NEWS NOW August 8,2000 HYDER, the Welsh utility company, yesterday switched its affections to Western Power Distribution, when its board unanimously recommended the US power company's ?526m offer. The recommendation of the 340p-a-share bid came after Stephen Byers, the trade and industry secretary, said on Wednesday that he would not launch a competition investigation into WPD's offer. Debt-laden Hyder last week withdrew its recommendation for a 320p-a-share offer from Nomura, after WPD raised its offer from 300p to 340p. Graham Hawker, chief executive, said in a statement: "We are pleased to be able to recommend WPD's increased offer of 340p in cash, which we believe is in the best interests of Hyder shareholders." The chances of Nomura raising its offer appeared to recede slightly yesterday with Hyder shares falling 3p to 352p. The shares have fallen from over ?10 two years ago and hit a low of 179p in April, before the bid battle began. The company is struggling to service about ?1.8 billion of debt and meet the regulator's requirement for capital expenditure of about ?1 billion over five years. Nomura now has until August 11 to raise its offer, but analysts are split over whether the bank will do so. A Nomura spokesman declined to comment on whether the company would increase its bid. Even if Nomura refrains from raising its offer it will make a ?23m profit from its 17pc stake in Hyder and will also receive a ?4m fee from Hyder for breaking off the deal. WPD has sought to dilute local opposition to the bid by declaring that the headquarters of both the electricity and water businesses will remain in Wales. LEYLAND DAF: Creditors are Still Owed by Collapse Transport Firm ----------------------- The Sunday Times August 6, 2000 More than 1,000 British creditors still owed money from the 1993 collapse of transport firm Leyland DAF may be closer to sharing a ?50m fund. Joint liquidator Kroll Buchler Phillips has pressed banks behind the company to appoint a firm to take over responsibility for the creditors' interests. LOXKO PLC: Liquidation proceedings ----------------------------------------- Company Name: Loxko Plc Company No: 2965082 Appointed on: 14/07/00 Type: Members Appointed by: Members Liquidators: Geoffrey S Kinlan IPno: 8268 Anthony Sanderson 4750 Firm Name: BDO Stoy Hayward Address: Prospect Place 85 Great North Road City Postcode: Hatfield AL9 5BS MONTINEX: Goes into Receivership ------------------ THE TIMES August 8, 2000 Montinex, the fast-fit tyre replacement chain that operates 144 Charlie Browns Autocentres throughout Britain, has gone into administrative receivership. The company, based in West Yorkshire, the largest privately owned fast-fit chain in the UK, also trades in southern England as Chessington Tyres, Northway Tyres and Malvern Tyres. Ernst & Young, the administrative receivers, said the plan was to continue business with the aim of selling the company as a going concern and safeguarding as many of the 840 jobs as possible. NEEDAM BFCC LTD: Liquidation proceedings ----------------------------------------- Company Name: Needam BFCC Ltd Company No: 3368861 Com. Business: Dormant Appointed on: 14/07/00 Type: Members Appointed by: Members Liquidators: David J Waterhouse IPno: 5732 Ian C Oakley Smith 2000 Firm Name: PricewaterhouseCoopers Address: Plumtree Court City Postcode: London EC4A 4HT RGS HOLDINGS LTD: Liquidation proceedings ----------------------------------------- Company Name: RGS Holdings Ltd Previous Name: RGS Holdings Plc Company No: 2298356 Com. Business: Dormant Appointed on: 14/07/00 Type: Members Appointed by: Members Liquidators: Julian R Whale IPno: 7252 Firm Name: KPMG Address: 110 Quayside City Postcode: Newcastle-u-Tyne NE1 3DX SMM SYSTEMS LTD: Liquidation proceedings ----------------------------------------- Company Name: SMM Systems Ltd Company No: 2904425 Com. Business: Computer Software/Service Providers Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Paul Barrett IPno: 5459 Firm Name: Radford Sons & Co Address: 12 Portland Street City Postcode: Southampton SO14 7EB STIKYBIZNEZ LTD: Liquidation proceedings ----------------------------------------- Company Name: Stikybiznez Ltd Company No: 2675827 Com. Business: Supply Automotive Accessories Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors Liquidators: Tyrone S Courtman IPno: 7237 Firm Name: Cooper-Parry Address: 56 High Pavement City Postcode: Nottingham NG1 1HX SYLTONE: To Cut 200 Jobs Due to Restructuring ------------------ THE TIMES August 8, 2000 Syltone, the Bradford-based transport engineering group, is to cut its workforce by nearly one in five following a restructuring of the group. Two hundred jobs are to be lost. Two businesses will be sold and a third closed down after an operational review. The shares, which have halved over the past nine months, were steady at 76p yesterday. TELEWEST: UPC Likely to Enter Bid ----------------- THE INDEPENDENT August 7, 2000 UPC, the Dutch cable company, last night emerged as a likely bidder for Telewest, after a weekend of speculation about the future of the the UK's second-biggest cable TV company. Industry sources pointed to the likelihood of an offer from UPC, which already owns 25 per cent of Telewest, saying that it would complement the strategies of both companies. Last month UPC merged with America's leading provider of fast internet access to create Excite Chello, now Europe's largest supplier in the emerging broadband internet market. In the UK Telewest holds a strong position in the same market. The news of UPC's interest in Telewest came after the struggling cable company dismissed weekend reports that it has been in talks with Callahan Associates, a US private equity firm specialising in the telecoms sector. It is headed by Dick Callahan, who sat on Telewest's board until the mid-1990s. Callahan, which owns Spain's largest cable operator, ONO, as well as Numericable's cable operations in France, was reported to have approached Telewest's board with an offer valuing the business at up to ?6bn. But industry watchers said any deal between Callahan and Telewest would not be viable. One said an offer could well be trumped as there are a number of other firms interested in Telewest, which is currently valued at ?4.6bn. In addition, Callahan would have to refinance the business due to Telewest's $10bn debt, much of which is in low- grade bonds. UPC took on its stake in Telewest from the US cable programming group Liberty in June, although Liberty retains voting rights on board. UPC has said it is interested in forging closer ties with the company. Despite the scale of its merger with Excite, it does not have a substantial operational presence in Britain. Roger Lynch, chief executive of Excite Chello, said at the time of the merger: "We're very interested in Telewest and hope to work with them closely in the future." However, any move by UPC could be contested by rival bidders or by Telewest's other major shareholder, Microsoft. Telewest is unlikely to be given up without a fight by NTL, the UK's largest cable TV operator. Telewest has also said that it may talk to its rival. Last week Telewest chief executive Adam Singer said that talks with NTL would be "legitimate speculation" and admitted that there would be advantages in consolidating the industry. However any bidder would come up against Microsoft, which owns 23.6 per cent of Telewest and is thought to want to increase its stake. But the software giant, which also owns 5 per cent of NTL, may not be an insurmountable problem. People close to the companies say it too wants to see consolidation. A merger would give competitors the power to fight Sky Digital in the battle to control the roll-out of set-top boxes. Telewest said it is not talking to any potential bidders at the moment. But that situation could easily change as it is at a particularly weak point. Its share price dropped 11 per cent in one day last week, after it admitted its digital roll-out would be delayed and revealed disappointing subscriber figures. Its shares have plunged 71 per cent from a high of 563p in March to 160p on Friday. TELEWEST: Shares rise on hopes of bid ------------------- THE TIMES August 8, 2000 Shares in Telewest, the troubled cable television broadcaster, rose sharply yesterday amid speculation that its woes could attract an opportunistic takeover bid. The 10p rise in Telewest's shares, to 170p, came in spite of a statement by John Bridgeman, head of the Office of Fair Trading (OFT), inviting comments on Microsoft's acquisition of a 23.6 per cent stake in the cable company. Comments on the deal, which has been cleared by the European Commission, have to be sent to the OFT by August 18. NTL, the only large rival to Telewest in Britain, is seen as its likeliest suitor. However, merger talks between the two companies died when Telewest bought Flextech, the supplier of themed television channels such as Bravo and Trouble to cable companies. Other potential bidders for Telewest are thought to include United Pan-European Communications, the Dutch cable company, and America's Callahan Associates. Telewest is a bargain compared with its stock market value in March. Its shares were 563p then, compared with yesterday's 170p. Analysts believe that Telewest, which has recently been hit by a shortage of components for its digital set-top boxes, needs a shot in the arm to keep up with rivals such as British Telecom and BSkyB, the satellite broadcaster 37.5 per cent owned by News International, owner of The Times. TET HOLDINGS LTD: Liquidation proceedings ----------------------------------------- Company Name: TET Holdings Ltd Company No: 3904969 Com. Business: Holding Co Appointed on: 14/07/00 Type: Members Appointed by: Members Liquidators: Peter G Mills IPno: 7948 Firm Name: Smith & Williamson Address: 1 Riding House Street City Postcode: London W1A 3AS TECHRAM LTD: Liquidation proceedings ----------------------------------------- Company Name: Techram Ltd Company No: 3626130 Com. Business: Software Production Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Gary Stones IPno: 6609 Firm Name: Stones Jones Address: 63 Walter Road City Postcode: Swansea SA1 4PT TOUCH TECHNOLOGY LTD: Liquidation proceedings ----------------------------------------- Company Name: Touch Technology Ltd Previous Name: Limegold Ltd Company No: 3556226 Com. Business: Manufacture Vehicle Security Equip Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors Liquidators: Nicholas Jenner IPno: 5955 Firm Name: Nicholas Jenner & Co Address: PO Box 4001 City Postcode: Pangbourne RG8 7FN TRISTAR COMMUNICATIONS LTD: Liquidation proceedings ----------------------------------------- Name: Tristar Communications Ltd Company No: 3506163 Com. Business: Supply of Labour Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Tania Clark IPno: 8993 Firm Name: Clark & Lowman Address: PO Box 27046 City Postcode: London N2 0ZU UNILEVER: $22bn Bank Loan to Pay for its Acquisition of Bestfoods -------------------------------- August 7,2000 According to Financial Times, Unilever's financing plans were unveiled on Monday with the news that the Anglo-Dutch consumer goods company was getting ready to sell $7bn-$8bn in short-dated debt. The bulk of the transaction will be in dollars, with $5bn of 13-month floating-rate notes expected. These will offer a yield of five basis points (bp) over Libor. A further E2bn-E3bn of the same maturity is also expected, with pricing at 10-12bp over Euribor. The deal, expected to be completed by Wednesday, is the first step in Unilever's refinancing of the $22bn bank loan it took out to pay for its acquisition of Bestfoods. Once the deal receives regulatory approval, expected in the fourth quarter of the year, Unilever plans to issue a $10bn bond issue in a range of longer maturities and currencies, said Jan Haars, group treasurer. The remaining $4bn-$5bn will be financed via commercial paper, FT reported. UNISPHERE SOLUTIONS: Posts a Net Loss of $278.6m ------------------------------- Financial Times August 6,2000 Unisphere Solutions, the data and voice networking unit of Germany's Siemens, has filed for a $150m initial public offering on Nasdaq. Unisphere did not reveal the exact date of the listing or the number of shares in the preliminary prospectus. However, Siemens has said in earlier statements that the initial public offering should go ahead this year and that it would retain a majority stake. The $150m price tag is a formality to calculate the filing fee at the Securities and Exchange Commission. Unisphere's listing will mark the third time in a year that Siemens, the electronics company, has spun off and floated a subsidiary. In contrast to earlier listings, Unisphere is an integral part of Siemens' information and communications activities. As part of its strategy to exit the components sector, Siemens had listed Epcos, which manufactures passive components, and Infineon, a chipmaker, in the past 10 months. Unisphere focuses on internet protocol routing, broadband access and voice-switching and was formed out of three US companies: Redstone Communications, Castle Networks and Argon Networks. Unisphere posted a net loss of $278.6m in the six months to March 31. VGR LTD: Liquidation proceedings ----------------------------------------- Company Name: VGR Ltd Company No: 3189886 Com. Business: IT Recruitment Appointed on: 14/07/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Neil F Hickling IPno: 5449 Firm Name: Smith & Williamson Address: No. 1 St Swithin Street City Postcode: Worcester WR1 2PY YUSICO UK LTD: Liquidation proceedings ----------------------------------------- Company Name: Yusico UK Ltd Company No: 3237635 Com. Business: Agents in the sale of Fuel Appointed on: 14/07/00 Type: Members Appointed by: Members Liquidators: Ian D Williams IPno: 4210 Firm Name: Benedict Mackenzie Address: 62 Wilson Street Postcode: London EC2A 2BU WASTEPACK GROUP: Duke Street Buys Stake in Waste Recycling Firm -------------------------- EUROPEAN INVESTOR & REUTERS August 7, 2000 Duke Street Capital, the British venture capital firm, announced on Monday it had bought a 51 percent stake in Wastepack Group Ltd, valuing the waste mangement business at up to 30 million pounds. Duke Street, the firm behind a recent hostile bid for DIY firm Wickes Plc and a bid approach for Forth Ports Plc, said it will help Wastepack to build eight recyclate re-processing plants over the next two to three years. Wastepack currently recycles household waste in partnership with local authorities at its recycling capacity in Ipswich. With the European Commission becoming more stringent in dealing with waste recycling, this business is expected to attract more private investments in the UK, which has one of the worst track record in the field. 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 USA, and Beard Group, Inc., Washington, DC USA. Lexy Mueller, Mercy Villacastin and Cristina Pernites Editors. Copyright 2000. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is $575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *