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         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

             Monday, March 19, 2001, Vol. 2, No. 54


                            Headlines
* A U S T R I A *

FORSTINGER: British Venture Fund Leads Race for Forstinger

* B E L G I U M *

LERNOUT & HAUSPIE: FLV Fund Shareholders Reject KPMG Disclaimer

* F R A N C E *

SOCIETE TEXTILE: Valenciennes Companies in Trouble

* G E R M A N Y *

EM.TV: Requests Extension for 2000 Report Deadline
INTERNETMEDIAHOUSE.COM AG: Continues to Restructure Portfolio
MICROLOGICA AG: Posts 2000 Turnover of 11.4 Million Euro
MICROLOGICA AG: Seeks for Buyer

* H U N G A R Y *

POSTABANK RT: State Bank to Merge With Magyar Posta

* I T A L Y *

FREEDOMLAND-ITN: Seeks Buyers of Freedomland Stake

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

KONINKLIJKE KPN: Denies Talks With BellSouth
WORLD ONLINE: VEB Serves Summons on World Online

* P O R T U G A L *

TAP-AIR: Plans Talks With Potential Allies

* S W I T Z E R L A N D *

SAIRGROUP: Faces Difficult Task to Decide Which Lines to Sell
SAIRGROUP: South Africa Airways Chief Tipped for SAirgroup Post

* U N I T E D   K I N G D O M *

BRITISH AIRWAYS: 3i Wins Rights in Go Bid
BRITISH AIRWAYS: KLM Withdraws from Go Bid
BUY.COM UK: Does Not Require Further Cash Injection
CORUS GROUP: Reports 1.1 Billion Pound Loss
ICELAND GROUP: Issues Third Profit Warning
MILLENNIUM DOME: Gerbeau Pulls Out of Bid

=============
A U S T R I A
=============


FORSTINGER: British Venture Fund Leads Race for Forstinger
----------------------------------------------------------

British capital venture fund CVC is the frontrunner to take a
majority stake in troubled car parts retailer Forstinger, The
Evening Standard in its March 14 edition said.

CVC, which specializes in buying established businesses in
partnership with management teams, could face competition from
British retail chain Halfords.

Forstinger's main creditor, Bank Austria, said it would support
terms to keep the company afloat. Investment bank Vienna Capital
Partners has also been commissioned to find a strategic partner
for Forstinger, which has unsecured debts of more than 7 million
pounds.



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


LERNOUT & HAUSPIE: FLV Fund Shareholders Reject KPMG Disclaimer
---------------------------------------------------------------

Shareholders at Flanders Language Valley Fund, which is
linked to Lernout & Hauspie, have refused to accept a
disclaimer of opinion on KPMG's auditing of the 2000
accounts, AFX reported on Friday.

Majority of shareholders voted against passing KPMG's
disclaimer after the accountant said it could not give an
opinion on the FLV accounts because of limitations and
uncertainties.

FLV said it may call an EGM to appoint a second auditor and
wants to avoid the perception that the KPMG disclaimer is
hedging tactics because of its separate role as Lernout &
Hauspie auditor.



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


SOCIETE TEXTILE: Valenciennes Companies in Trouble
--------------------------------------------------

A French commercial court has announced that Valenciennes textile
company Societe Textile Valenciennoise has gone into
receivership, while electrical equipment supplier Etablissements
Remy is in the hands of administrators, La Tribune & World
Reporter in its March 14 edition said.

STV found it difficult to repay its debts after it was placed in
the hands of administrators last year. It will, however, continue
its operations until 30 March in the hope of finding a buyer.

Remy, meanwhile, is suffering from a lack of working capital due
to under-capitalization. It is due to submit a recovery plan by
April 30.



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


EM.TV: Requests Extension for 2000 Report Deadline
--------------------------------------------------

Troubled media group EM.TV & Merchandising AG said they have to
ask stock market administrator Deutsche Borse AG to extend its
March 31 deadline for reporting 2000 earnings since they still
have not received all earnings figures from its units, Dow Jones
Newswires reported on Wednesday.

"Anything more precise would be speculation," spokeswoman
Stephanie Schusser said. She added that Deutsche Borse has
granted extensions in the past but won't grant an extension
beyond April 30.

Deutsche Borse recently expelled Internet service provider
Gigabell AG from the Neuer Markt segment for failing to comply
with reporting deadlines.


INTERNETMEDIAHOUSE.COM AG: Continues to Restructure Portfolio
-------------------------------------------------------------

InternetMediaHouse has nearly brought its necessary portfolio
adjustment to an end and will intensify its search for attractive
investments that generate attractive profits, according to a
company release on March 13.

The Internet investment company has sold its 49% stake in Content
Verlag New Media, the firm that runs German newspaper
Sueddeutsche Zeitung's website. By selling its stake, IMH has
yielded a return on its investment amounting to approximately 30%
per annum.

Another of its investments, City24 Online Shopping, has not found
the partner it needs to continue operations.

The company's management has requested insolvency proceedings.


MICROLOGICA AG: Posts 2000 Turnover of 11.4 Million Euro
--------------------------------------------------------

Micrologica AG is showing a group turnover of 11.4 million euro
for the financial year 2000 and an annual group deficit of 12.84
million euro, according to a company release dated March 14.

In 1999, th technology leader in Computer Telecommunication
Integration, has a turnover of 18.00 million euro and an annual
deficit of 4.23 million euro.


MICROLOGICA AG: Seeks for Buyer
-------------------------------

Insolvent Micrologica AG is looking for a buyer, Frankfurter
Allgemeine Zeitung in its March 14 edition said.

Earlier this month, Micrologica sought court protection after
failing to find an investor to bail it out. The software company
is faced with imminent insolvency after an investor canceled a
two million euro ($1.84 million).



=============
H U N G A R Y
=============


POSTABANK RT: State Bank to Merge With Magyar Posta
---------------------------------------------------

Hungary plans to merge state-owned commercial bank Postabank with
Hungarian postal services firm Magyar Posta Rt after a planned
sale to OTP Bank failed, Reuters said in its March 14 report.

According to unconfirmed press reports OTP offered 30 billion
forints ($105.2 million) for Postabank, but the government found
this price unacceptably low.

The final proposal on the future of Postabank will be ready by
May 30, the news agency added.



=========
I T A L Y
=========


FREEDOMLAND-ITN: Seeks Buyers of Freedomland Stake
--------------------------------------------------

The board of Internet-via-TV company Freedomland-ITN SPA will
meet on March 21 to shortlist interested bidders for part or all
of a 65% stake of founder and former chairman Virgilio
Degiovanni, according to Reuters' March 15 report.

As of January 30, the company received 11 expressions of interest
from potential bidders, one of which is Italian venture capital
fund Kiwi.

TCR-EUR in its March 5 edition reported that Freedomland-ITN SPA
has a 64.7 billion lire ($30.9 million) loss in the first half of
its financial year to end-December. It has a turnover of 5.1
billion lire.



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


KONINKLIJKE KPN: Denies Talks With BellSouth
--------------------------------------------

KPN in its Company release dated March 15 said that it has never
been in talks with BellSouth about either a possible merger with
or acquisition of KPN by BellSouth.

Also, there have never been discussions between BellSouth and KPN
about possible expansion of the exchange rights or warrant
granted to BellSouth.

As part of this transaction, Bellsouth had made available to KPN
a $3 billion credit facility. This was the only facility agreed
upon with BellSouth. Of the $3 billion facility, 465 million euro
has been drawn.

BellSouth may require repayment of this facility under the terms
of the warrant, at a strike price for the KPN share of 31.75 euro
plus a 25 to 40% premium.

WORLD ONLINE: VEB Serves Summons on World Online
------------------------------------------------

Vereniging van Effectenbezitters (VEB) had served summons against
Internet service provider World Online, its bankers and various
major investors involved in its disastrous flotation in March
last year.

The Dutch shareholder group claims World Online, together with
ABN AMRO, Goldman Sachs, NS Telecom and investment funds,
Reggeborgh and Mallowdale did not fully disclose information that
would have deterred many from buying the shares when it plunged
to around 16 euros after the flotation.

The VEB represents 10,305 World Online shareholders that bought
shares in the ISP's offering.

In December, World Online said the VEB had demanded 220 million
guilders ($92.6 million) in compensation for their losses, but
the company denied responsibility.



===============
P O R T U G A L
===============


TAP-AIR: Plans Talks With Potential Allies
------------------------------------------

State carrier TAP-Air Portugal will soon begin talks with
possible partners, including Air France and Delta Airlines,
Reuters in its March 14 report said.

According to managing-director Fernando Pinto, they also expect
to get back to profit within two years after losing around 20
billion escudos ($91.60 million) in 2000, as a result of juggling
its routes and increasing its flying times.

To recall, Swissair withdrew from the strategic alliance with the
loss-making carrier last month. Following the collapse of the
Swiss deal, TAP said that it would be looking for a fresh
international partnership, although Pinto said the company was in
no hurry.



=====================
S W I T Z E R L A N D
=====================


SAIRGROUP: Faces Difficult Task to Decide Which Lines to Sell
-------------------------------------------------------------

SAirGroup will present its finding as to which companies to sell,
as well as revised earnings estimates on April 2, following a
risky bet that failed to pay off, Wall Street Journal in its
March 15 edition said.

A company spokesman, however, denied that profitable assets like
Gate Gourmet and SRTechnics were possible selling points.

A recent boardroom dispute that claimed nine out of ten board
members and the airline's chief executive officer has caused
massive losses. This prompted the remaining company officials to
consider selling off some of its assets.


SAIRGROUP: South Africa Airways Chief Tipped for SAirgroup Post
---------------------------------------------------------------

South Africa Airways' departing CEO Coleman Andrews is a possible
candidate for a top job at SAirGroup, Africa News Service in its
March 15 edition said.

Other names vying for top operating posts are Christoph Mueller,
CE of Belgium's Sabena SA and former British Airways head Robert
Ayling.

Earlier this month, Moritz Suter resigned as head of the group's
loss-recording airline division, followed by the resignation of
nine of SAirGroup's 10 board members.



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


BRITISH AIRWAYS: 3i Wins Rights in Go Bid
-----------------------------------------

Private equity firm 3i Group on Wednesday won the exclusive
negotiating rights for its 100 million pound ($146 million) bid
for the control of Go-Ahead Group Plc after Dutch rival KLM
bailed out, Reuters in its March 14 report said.

3i had entered exclusive talks with British Airways to buy its
budget carrier Go, which has been up for sale since last
November. The firm expects to conclude the sale by the end of
this month.

Earlier, financial group Electra Partners pulled out of the race
to bid for the carrier after offering 90 million pounds with
Barclays Capital.


BRITISH AIRWAYS: KLM Withdraws from Go Bid
------------------------------------------

KLM Royal Dutch Airlines will not be putting in a final bid for
British Airway's discount unit Go-Ahead Group Plc due to the
valuation as well as the complexity of the deal in terms of
regulatory approval, Reuters in its March 14 edition reported.

According to KLM spokesman Bart Koster, KLM had a non-binding
proposal based on their assessment of a fair valuation. It is not
in the interests of its shareholders for KLM to pay more.


BUY.COM UK: Does Not Require Further Cash Injection
---------------------------------------------------

Following the completion of Buy.com Inc's sale of its U.K.
operations to department store and supermarket retailer John
Lewis Partnership PLC, its said that the U.K. unit won't require
any further cash investments, Namnews in its March 14.

Buy.com recently announced plans to cut 125 jobs and posted a
loss of $133 million for 2000.


CORUS GROUP: Reports 1.1 Billion Pound Loss
--------------------------------------------

Steel group Corus has reported a larger than expected loss of
1.152 billion pounds for the 15 months to the end of December,
according to the Evening News in its March 15 report.

The steelmaker said most of the losses had stemmed from its UK
operations and via a 1.03 billion-pound restructuring charge.
Most of its remaining 115 million losses were incurred at its UK
carbon steel business.

Corus shocked UK industry in February by announcing it would axe
6,000 jobs and slash UK production by 20%, in a bid to stem
mounting losses running at about 1 million pounds a day. It plans
to close plants in Ebbw Vale and Bryngwyn in Wales, and scale
back at Llanwern and other factories.


ICELAND GROUP: Issues Third Profit Warning
------------------------------------------

Iceland Group Plc has issued its third profit warning this year,
predicting profits will fall by another 33%, according to BBC
News' March 15 report. The supermarket group is carrying 550
million pounds in debts.

Second interim results showed the company had lowered its pre-tax
profit target to 40 million pounds from 62 million pounds for the
15 months to end of March.

Earlier this year, Iceland abandoned its organic food policy
after it incurred heavy losses and indicated the takeover of
cash-and-carry chain Booker was not bring in big savings.


MILLENNIUM DOME: Gerbeau Pulls Out of Bid
-----------------------------------------

Pierre-Yves Gerbeau has abandoned plans to keep Millennium Dome
running as a visitor attraction, BBC News in its March 15 edition
said.

According to the former chief executive the deal needed extra
investment from a major property developer, which he feared would
encroach on his vision to keep it as an entertainment center.

Gerbeau and London nightclub company Ministry of Sound, which
formed New Dome Partners, believe that without a subsidy from
such a deal, it would not be possible for a private company to
make the necessary levels of investment and be profitable.










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. Kimberly MacAdam,
Salve M. Mordeno and Cristina Pernites, Editors.

Copyright 2001.  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
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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.


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