/raid1/www/Hosts/bankrupt/TCREUR_Public/010329.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

             Thursday, March 29, 2001, Vol. 2, No. 62


                            Headlines

* B E L G I U M *

SABENA SA: Withdraws South African Route

* F I N L A N D *

SONERA CORPORATION: On Review for Possible Downgrade

* G E R M A N Y *

DAI-ICHI KANGYO: To Liquidate German Unit
GRUNDIG AG: To Loose Jobs on Restructuring Plan

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

KPN NV: Pannon Sale May Start Mobile Market Scramble
LETSBUYIT.COM: Raises 3.8 Million Funding

* P O L A N D *

ELEKTRIM SA: Needs New Management, Says Vivendi

* R O M A N I A *

BANCA AGRICOLA: May Ink Sell-Off Deal Next Week

* S W E D E N *

BOLIDEN LIMITED: Mining Group Boss Resigns
LM ERICSSON: Cuts Jobs, Ceases Production
LM ERICSSON: Sells Holding in Juniper Networks

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

ANDRE ET CIE: To Sell Argentine Assets
SAIRGROUP: Faces Audit Mandate From Shareholders

* U N I T E D   K I N G D O M *

BRITISH TELECOM: Bosses to Get Pay-Offs
BRITISH TELECOM: Coke CEO May Takeover BT Chair Post
CORUS GROUP: Union Claims Hope After Corus Talks
ENODIS PLC: Sinks After US Fall-Out
LAIRD GROUP: Slides 29% After Electronics Slowdown
MILLENIUM DOME: Property Tycoon Wants to Buy Dome
LTG TECHNOLOGIES: Posts 3.6 Million Pound Loss
PACIFIC MEDIA: Posts 18.5 Million Pound Loss
PEARSON PLC: To Sell 250 Million Euros of Bonds to Repay Debt


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


SABENA SA: Withdraws South African Route
----------------------------------------

Sabena, with Italy's Alitalia and Austrian Airlines, will cease
services in South Africa at the end of March, M2 Communications
in its March 26 edition said.

Pieter van Hoven, the managing director of South African carrier
Comair, said that the withdrawal of the international airlines
from the market could affect tourism, resulting in some tourists
not wanting to fly to the country because they cannot get a
direct flight to their destination.


=============
F I N L A N D
=============


SONERA CORPORATION: On Review for Possible Downgrade
----------------------------------------------------

Moody's Investors Service has on Tuesday placed the senior
unsecured A2 long-term debt ratings and the short-term Prime-1
debt rating of Sonera Corporation, the major Finnish
telecommunications operator, on review for possible downgrade,
based on Moody's growing concerns that continuing negative market
sentiment will impair Sonera's asset disposal plan.

Moody's believes that the review could lead to more than a one
notch downgrade in the company's long-term debt rating due to the
uncertainty of key disposals such as Sonera's 7.9% equity holding
in VoiceStream, the high debt level of 5.8 billion euro at year-
end 2000, Sonera's continued commitment to rolling out UMTS
networks in several countries, as well as the increasing pressure
on the company's EBITDA margin.

Moody's review process will concentrate on the ability of Sonera
to enact its disposal plan, and will particularly focus on the
proceeds that may be generated from the sale of VoiceStream to
Deutsche Telekom (A2, on review for possible downgrade), Sonera's
ability to offset any diminution in the value of VoiceStream, and
the likelihood of Sonera being able to reduce its 42.8% stake in
the joint venture with Telefonica (A2), which holds a German UMTS
Licence but is a new entrant to the German mobile market.

Despite the uncertainty created by the fluctuations in Deutsche
Telekom's share price, Moody's expects the sale of VoiceStream to
the German telecoms operator to go ahead in June 2001. However,
the rating agency believes that it is becoming increasingly
probable that Deutsche Telekom's share price will be below the
agreed floor of EUR33, at which point VoiceStream shareholders
could opt to call off the sale. If the transaction is completed,
it may well be for less than anticipated by Sonera within their
disposal plan.

Moody's will also review Sonera's progress with the disposal of
other non-core assets as well as the company's continuing
commitment to invest in UMTS infrastructure. Sonera holds equity
stakes in companies, which have UMTS licenses in Germany, Spain,
Italy and Norway, as well as owning a license in its domestic
market in Finland.

The ratings affected are drawings under the EUR 2 billion Euro
Medium Term Note program, and the Prime-1 for short-term debt
issues.


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


DAI-ICHI KANGYO: To Liquidate German Unit
-----------------------------------------

Dai-Ichi Kangyo Bank said it would liquidate its German
subsidiary Dai-Ichi Kangyo Bank Deutscheland AG before the end of
March, AFX News in its March 27 edition said. The move is part of
DKB's merger into Mizuho Financial Group.

The liquidation will not affect the bank's earnings for the year
to March 2001.


GRUNDIG AG: To Loose Jobs on Restructuring Plan
-----------------------------------------------

Grundig AG is involved in intensive discussions toward
restructuring that could include a drastic scaling back of
production and the loss of hundreds of jobs, according to
Handelsblatt yesterday.

Consultancy firm Roland Berger & Partners drew up the proposals,
which calls for a reduction of Grundig's product line to core
products such as television sets, car radios and satellite
technology. Other product areas, such as office communication,
intercom equipment, metrology equipment and Internet services,
will be sold off or operated in partnership with other companies.
A final agreement is expected by the first week of April.

A consortium of leading German banks had presented a financing
plan for the restructuring, but a Grundig spokeswoman declined to
give details.

The company further expects to post again a net loss for the
year. Net loss for 2000 was 80 million marks.


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


KPN NV: Pannon Sale May Start Mobile Market Scramble
----------------------------------------------------

KPN Telecom's move on Monday, to put its 44.7% stake in Pannon
GSM up for sale, has opened the way for other telecom group to
enter the Hungarian mobile market, which has experienced rapid
growth in mobile subscribers in recent years, Reuters' March 26
report said.

France's Vivendi, Norway's Telenor and Finland's Sonera are
likely buyers of KPN's stake, valued at $820 million to $1
billion, analysts said.

"The question is simply who is going to buy the stake in Pannon?
One of its current owners, Telenor maybe, or could it be
Vivendi?" analyst Erik Revesz for Raiffeisen Securities in
Budapest said. "It's still not clear and it will definitely
depend a lot on the price," he added.


LETSBUYIT.COM: Raises 3.8 Million Funding
-----------------------------------------

LetsBuyIt.com has raised 3.8 million (2.4 million pounds) in a
share placement as part of a refinancing led by German
entrepreneur Kim Schmitz, according to The Times on Wednesday.

LetsBuyIt has secured 19.8 million in debt financing.


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

ELEKTRIM SA: Needs New Management, Says Vivendi
-----------------------------------------------

French media conglomerate Vivendi Universal said on Monday its
Polish telecom partner Elektrim needs a new management to launch
a restructuring program and improve the firm's financial
situation, Reuters reported on Tuesday.

Vivendi, which owns 5% in Elektrim, is fighting with Deutsche
Telekom for the control of Elektrim's telecom and Internet assets
that include stakes in cell phone firm PTC and several smaller
companies. Elektrim's current management had ignored Vivendi's
offer to buy the assets for 360 million euros and instead signed
a letter of intent to sell them to Telekom.

Early this year, Vivendi launched arbitration proceedings against
Elektrim to prevent the sale of the fixed-line assets, saying the
move violated the 1999 pact between the two firms. It dropped the
arbitration proceedings last week after a meeting of Elektrim's
supervisory board.

Elektrim minority owners have called a shareholders meeting on
April 20 to change the firm's supervisory board and to deprive
Vivendi from its decisive say in the body.


=============
R O M A N I A
=============


BANCA AGRICOLA: May Ink Sell-Off Deal Next Week
-----------------------------------------------

Romania could sign a long-awaited deal for privatization of
state-run Banca Agricola (BA) as soon as next week, Reuters
reported on Tuesday, citing Iacob Zelenco, secretary of state at
the main privatization agency APAPS.

According to Zelenco, the final details of the contract to sell
around 90% of BA to a consortium including Raiffeisen Zentralbank
Osterreich AG and the Romanian American Enterprise Fund were
being drafted. He offered no details.

The government last year injected some $150 million into BA to
help its recovery as the bank underwent a three-year
restructuring after revealing large non-performing loans.


===========
S W E D E N
===========


BOLIDEN LIMITED: Mining Group Boss Resigns
------------------------------------------

Boliden Limited's Executive Vice-President and Chief Financial
Officer Petter Traaholt has resigned after completing his three-
year commitment to the Company in order to accept a similar
position with another company in Norway, Market News Publishing
in its March 26 edition said.

Treasurer and Controller Anders Haker will replace Traaholt as
Chief Financial Officer effective April 3, 2001.

Traaholt's resignation is effective June 15, 2001.


LM ERICSSON: Cuts Jobs, Ceases Production
-----------------------------------------

Ericsson is to cut 2,100 jobs in Sweden and stop production at
handset plants in the UK, with the loss of a further 1,200 jobs,
to reduce costs in the face of tough market conditions, according
to BBC News' March 27 report.

Ericsson's job cuts are part of a broader strategy that aims to
cut costs by 2 billion Swedish kronor ($195 million) per year
from next year. The telecom giant also introduced a hiring
freeze.

Ericsson's chief executive Kurt Hellstrom said the jobs losses
were necessary as part of the company's global drive to cut
costs.

Furthermore, Ericsson will also close its UK plants in Carlton,
Nottinghamshire, and Scunthorpe in September.


LM ERICSSON: Sells Holding in Juniper Networks
----------------------------------------------

Ericsson has sold its remaining holding in Juniper Networks,
Business Wire in its March 27 edition said. The transaction will
give a capital gain of about 5.5 billion SEK in the first quarter
2001.

This capital gain was not included in our revised earnings
estimate as of March 12, 2001.

Ericsson continues to work closely with Juniper Networks in
offering carrier-class IP infrastructure products to the market.

Ericsson is the leading communications supplier, combining
innovation in mobility and Internet in creating the new era of
mobile Internet. Ericsson provides total solutions covering
everything from systems and applications to mobile phones and
other communications tools. With presence in 140 countries,
Ericsson simplifies communications for customers all over the
world.


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


ANDRE ET CIE: To Sell Argentine Assets
--------------------------------------

Import-export firm Andre et Cie., seeking to sell off its
Argentine assets, has signed a letter of intent with U.S.-based
Bunge that may lead to divestiture, according to Agencia EFE's
Tuesday report.

Andre's soya trading activities led it to post a $285 million
loss in 1999, which was contained to $200 million in 2000, but
the company says it is determined to carry on with its activities
in Brazil and Asia.

Bunge is the world's largest soy exporter. It has an annual
turnover of $10 billion.


SAIRGROUP: Faces Audit Mandate From Shareholders
------------------------------------------------

Shareholders of SAirGroup plans to force the company to carry out
a special audit on 25 April, M2 Communications reported on
Tuesday.

A spokesperson for the association said that its members will not
accept the company report and that the group is preparing a list
of questions about company performance over the last five years.

The shareholders' association has already collected about 200,000
signatures from its members, which is sufficient to force an
audit.


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


BRITISH TELECOM: Bosses to Get Pay-Offs
---------------------------------------

British Telecom bosses Sir Iain Vallance and Sir Peter Bonfield
are set to pick up 1 million pounds apiece if the campaign to
oust them from the telecom giant is successful, according to The
Scotsman newspaper's Monday edition.

It is said that Vallance would get a 1 million-pound golden
goodbye if BT dismisses him. It is also understood that Bonfield,
who earned 1.3 million pounds last year, would be entitled to 12
months pay, plus a 200,000 pounds pension.

With the payoffs, City analysts and fund managers say that it
would trigger widespread controversy, following a dive it BT's
share price last week on worries about its 30 billion-pound debt
mountain.

A BT spokesman, however, declined to comment about the possible
pay-offs.


BRITISH TELECOM: Coke CEO May Takeover BT Chair Post
----------------------------------------------------

Chief executive Neville Isdell of Coca-Cola HBC will step down on
May, a move that has led to City speculation that he will take
over as chairman of British Telecom in the event of an expected
shake up that could see the departure of Sir Iain Vallance and
Sir Peter Bonfield, according to The Scotsman newspaper's report
on Tuesday.  

Isdell, who became chairman of Coca-Cola Beverages in 1998,
helped to establish the company on the London Stock Exchange. He
gained a reputation for turning round a business that was in
considerable difficulty.

Isdell said he is looking forward to working closely with the
chairman and other members of the board in a more strategic and
advisory role.

BT refused to comment on whether or not it had sounded out Isdell
about the job.

The ouster of Sir Peter by angry shareholders is particularly
expected within the next few weeks. Investors are calling for
someone with a reputation for pushing through radical change to
take the helm of the ailing company.


CORUS GROUP: Union Claims Hope After Corus Talks
------------------------------------------------

Steel union leaders claimed there is definite hope after Corus
management agreed to set up a joint working party with the
unions, BBC News in its Tuesday edition reported.

Union officials presented a package of measures that include an
aid package worth up to 90 million pounds, most of it going
towards reducing Corus' wage bill.

"We feel that at long last we have made some progress. For Corus
to agree to hold discussions with us is a real breakthrough. The
atmosphere has definitely changed," Bob Shannon, National Officer
of the Amalgamated Engineering and Electrical Union, said.

There will be a further meeting in four weeks to review progress
at the London headquarters Corus, which revealed heavy losses of
1.15 billion pounds when it published its annual results earlier
this month.


ENODIS PLC: Sinks After US Fall-Out
-----------------------------------

Shares in Enodis fell to 98p, or 35%, on Friday after it
announced job cuts, the departure of its chief executive and
admitted that the downturn in its key US market had devastated
group profits, The Scotsman newspaper in its March 24 report
said.

The catering equipment company said the bulk of the job losses
would be in North America, where market conditions are expected
to deteriorate further. It has already closed its plant in
Georgia and 400 jobs were lost.

"Conditions have deteriorated considerably since the beginning of
the year and our view is that currently we are seeing a market
that is something in the order of 10% down," Finance Director
Andrew Allner said.

Allner added that the restructuring program would give Enodis
savings of around 15 million pounds this year.

Furthermore, Chief Executive David Williams has resigned. Its
replacement will be appointed shortly.


LAIRD GROUP: Slides 29% After Electronics Slowdown
--------------------------------------------------

Shares in the restructured engineering specialist Laird Group
slid 79p, or 29.4%, last week after it warned that a slowdown in
the electronics industry and in the US would hit first-half
profits, the March 23 edition of The Scotsman newspaper said.  

Laird, which now employs about 3,000 staff, saw around 200 mostly
temporary employees laid off over the last six months caused by
the slowdown in the PC industry.

However, Laird officials said Fullarton, which is one of the
company's five plants in Europe, has shifted its production from
electronics to the telecommunications business to generate more
jobs.

According to Laird chairman Nigel Keen, the slowdown and
subsequent customer de-stocking made an impact on the company's
results in the first two months. He also expected the market
environment to improve later in the year.


MILLENIUM DOME: Property Tycoon Wants to Buy Dome
-------------------------------------------------

Property tycoon Gerald Ronson, who was jailed for the 1980s
insider share-dealing affair in Guinness, claimed he wants to buy
the Dome, according to This Is London's Monday edition.

Ronson is currently fighting to clear his name by getting his
conviction nullified. He is said to be preparing a bid to turn
the Dome into a lifestyle entertainment center.


LTG TECHNOLOGIES: Posts 3.6 Million Pound Loss
----------------------------------------------

LTG Technologies Plc, which manufactures metal decorating
machinery such as printing presses, drying ovens, coaters &
exhaust air purification equipment, announced a pre-tax loss of
3.6 million pounds (2.3 million pounds loss) for the year,
according to The Times' report yesterday.

In 2000, its earnings before extraordinary items were -3.80
million pounds, or -5.5% of sales. The company has reported
losses before extraordinary items for each of the past 3 years.


PACIFIC MEDIA: Posts 18.5 Million Pound Loss
--------------------------------------------

Pacific Media Plc, which invests in media and related sectors,
cinema exhibition, television broadcasting and the Internet, has
reported a pre-tax loss of 18.5 million pounds for the year (4.3
million pounds loss), with no dividend, according to The Times'
report yesterday.

Pacific Media's earnings before extraordinary items in 1999 were
-4.33 million pounds, or -132.1% of sales. The company has
reported losses before extraordinary items for each of the past 6
years.


PEARSON PLC: To Sell 250 Million Euros of Bonds to Repay Debt
-------------------------------------------------------------

Pearson Plc, the world's largest educational publisher, plans to
sell 250 million euros ($224 million) in two-and-a-half-year
bonds to repay existing bank debt, Bloomberg in its March 27
edition reported, citing spokesman Luke Swanson. BNP Paribas will
manage the sale.

The Financial Times and Penguin Books owner has about 1.5 billion
pounds ($2.1 billion) in outstanding bonds.

In 2000, the company's loss excluding gains from asset sales
widened to 75 million pounds on bigger investments in Internet
projects such as FT.com.




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
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.


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