/raid1/www/Hosts/bankrupt/TCREUR_Public/010823.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, August 23, 2001, Vol. 2, No. 165


                            Headlines

* D E N M A R K *

MICON AS: Narrows Loss to DKr70.3MM

* F I N L A N D *

SONERA CORP.: To Sell Deutsche Telekom Stake

* F R A N C E *

LA CITY: To Present Strategic Plan

* G E R M A N Y *

ADAM OPEL: Reaches Deal With Workers
BAYER AG: Glaxo May Buy Bayer Drugs
DAIMLERCHRYSLER: Anticipates Strong U.S. Market Throughout 2001

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

KPN NV: Continues Talks With Belgacom
UNITED PAN-EUROPE: Plans to Float Priority Telecom

* S W E D E N *

FRAMFAB AB: Posts Loss of SEK924.1MM

* U N I T E D   K I N G D O M *

BEESON GREGORY: Warns of Difficult Market Conditions
BEESON GREGORY: Warns of Job Losses
BIG BEAT: Consortium Saves Club
CLAIMS DIRECT: Takeover Deal Nears Its End
ENODIS PLC: Shares Fall on Declaration of Independence
EQUITABLE LIFE: Ministers Face Attack Over Equitable
EQUITABLE LIFE: Rivals Improve Business at Equitable's Expense
EUROPEAN MICRO: Liquidates Assets to Pay Loan
EXCITE UK: Can Survive If U.S. Investor Fails
GLOBALNET FINANCIAL: Recommends NewMedia Bid
INVENSYS PLC: S&P Cuts Rating to BBB
J2C PLC: Winds Down Remaining Sites
LYNX GROUP: Sells Sphinx Cisco for 11MM Pounds
MARKS & SPENCER: Shares Recover Slightly
NTL INCORPORATED: To Expect Further Downgrade Rating


=============
D E N M A R K
=============


MICON AS: Narrows Loss to DKr70.3MM
-----------------------------------

Wind-turbine maker NEG Micon AS reported a first-half pretax loss
of 70.3 million Danish kroner, compared with 81.7 million
kroner for the first half of 2000, according to the August 21
edition of Dow Jones Newswires.

Analysts had hoped Micon, which is still struggling to emerge
from production problems that left it nearly bankrupt two years
ago, would narrow its losses to around 43 million kroner.

Sales came in at 1.76 billion kroner for the first half, up from
1.48 billion kroner in the same period last year, but well below
the market's target of 2.1 billion kroner.


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


SONERA CORP.: To Sell Deutsche Telekom Stake
--------------------------------------------

Telecommunications company Sonera has confirmed that it planned to
sell its remaining 72 million shares in Deutsche Telekom between
September and December, the Financial Times reported on Tuesday.

The Finnish group in May received 84 million shares in Deutsche
Telekom in exchange for its stakes in mobile phone operators
VoiceStream and PowerTel. It sold 12 million shares that month
and signaled that it did not see Deutsche Telekom as a strategic
investment.

Cash-strapped Sonera, which has so far been selling assets to pay
its debt, is expected to sell at the earliest point possible.


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


LA CITY: To Present Strategic Plan
----------------------------------
  
French textiles group La City has given itself three months to
finalize and present a strategic plan, the Le Figaro reported on
Monday.

Managing director Guy Olivier said there would be no changes and
no closures, since the company only filed for technical bankruptcy.

La City was created in 1989 aimed at young urban women from 18 to
35 years old. It registered its first loss in 2000-2001, despite
an increased turnover.


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


ADAM OPEL: Reaches Deal With Workers
------------------------------------

General Motors German unit Adam Opel AG has reached a deal with
workers' representatives that would avoid plant closures or
forced redundancies as it restructures, Reuters in its Tuesday
edition said.

A company spokesman said that following preliminary talks with
workers' representatives, the redundancy would be achieved
through natural wastage and early retirement schemes and that no
plants would be closed.

Last week, General Motors Europe and Opel sketched out a plan
aimed at returning the companies to profit in 2003 by cutting several
thousand jobs.

GM Europe has operations in many European countries, including
Germany, Britain, Spain, Portugal and Belgium.


BAYER AG: Glaxo May Buy Bayer Drugs
-----------------------------------

British drugs giant GlaxoSmithKline, according to the Tuesday
edition of Daily Mail, may launch a 10-billion-pound bid for the
pharmaceutical arm of stricken German group Bayer.

The value of Bayer has been cut down by the decision to withdraw
its cholesterol lowering drug Baycol from the U.S. after harmful
side-effects emerged. At least 50 deaths were linked with the
drug and Bayer now faces massive legal claims.

GSK is expected to be among major drug groups keen on buying
Bayer's drug side. The list of interested parties also includes
Novartis, Roche and Bristol-Myers Squibb.


DAIMLERCHRYSLER: Anticipates Strong U.S. Market Throughout 2001
---------------------------------------------------------------

DaimlerChrysler AG is expecting the U.S. auto market to remain
strong throughout the year even amid a deteriorating economy,
Wall Street Journal reported yesterday.

The car company is predicting industrywide U.S. vehicle sales of
about 16.6 million this year, compared with last month's
expectation of about 16.5 million, and earlier this year at 16
million.

Chrysler unit chief Dieter Zetsche said he has high hopes for the
redesigned Dodge Ram pickup truck to sell well without consumer
discounts, despite intense competition in the pickup market from
General Motors Corp., Ford Motor Co. and Toyota Motor Corp.

In February, DaimlerChrysler outlined a broad restructuring plan
that included an operating profit for all of DaimlerChrysler of
between 1.2 billion and 1.7 billion euros.


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


KPN NV: Continues Talks With Belgacom
-------------------------------------

Dutch telecommunications company KPN NV said that negotiations
about a possible merger with Belgian's Belgacom SA are still on,
even though discussions have been less intense in recent weeks
due to the summer holiday season, Dow Jones Newswires reported on
Tuesday.

Some parties involved in the talks have been absent from the
discussions for some weeks. Talks are expected to heat up in
coming weeks, especially regarding how to properly value the two
companies.

Renewed media speculation about a possible deal riled the debt
market on Tuesday. Traders said that KPN bonds due 2008 have
tightened by about 15 basis points, amid a general tightening in
the telecom sector.


UNITED PAN-EUROPE: Plans to Float Priority Telecom
--------------------------------------------------

Cable network operator United Pan-Europe Communications plans to
float the shares of its business telecom unit Priority Telecom
on the Euronext Amsterdam exchange in the third quarter, the
Monday edition of Reuters said.

If it is completed, the listing will save UPC from paying
a $200-million penalty to shareholders of Cignal Communications,
from which it bought a large share of Priority.

UPC took a $264.1-million charge in the second quarter to pay for
costs relating to the acquisition that was finalized in April.

The unit has been seeking funding for more than a year.


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


FRAMFAB AB: Posts Loss of SEK924.1MM
------------------------------------

Sales of Internet consultancy firm Framefab AB reached
SEK 418.5 million for the period of January-June 2001.
The operating loss after depreciation of tangible fixed assets
(EBITA) was SEK -924.1 million.

During the same period, the operating loss, after depreciation of
tangible assets (EBITA), was SEK -427.8 million.

For the period April-June 2001, sales reached SEK 154.5 million.
The operating loss, after deductions of tangible assets (EBITA)
and adjusted for items affecting comparability, improved by SEK
124.4 million between Q1 and Q2 2001, from SEK -276.1 million to
SEK -151.7 million due to cost-cutting measures in the company.


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


BEESON GREGORY: Warns of Difficult Market Conditions
----------------------------------------------------

Investment bank Beeson Gregory warned on Tuesday that market
conditions continued to be very difficult as it unveiled a half-
year pre-tax loss of 5.59 million pounds, the Financial Times
reported on Tuesday.

The loss in the six months to June 30 was attributed to a hefty 8.3-
million-pound write-down on its technology investment portfolio,
falls in stockbroking turnover and reduced corporate deal flow.

Falls in the valuation of technology companies forced Beeson to
cut the carrying value of its investment portfolio to 10 million pounds,
compared with 18.9 million pounds in the first half of 2000.

Finance director Charles Byford has announced he believes that
capital markets will not recover until next spring, at the earliest.


BEESON GREGORY: Warns of Job Losses
-----------------------------------

Investment bank Beeson Gregory warned it could axe jobs later
this year after it reported a half-year pre-tax loss of 5.59
million pounds, the Independent News reported yesterday.

Beeson has been hit by the downturn in the new issues market,
contributing to a fall in turnover from 26.4 million pounds to
8.36 million pounds. Last year, the bank made huge fees from
bringing a raft of technology, software and biotechnology
companies to market.

The headcount had fallen by only five to 128 since the beginning
of the year. Finance director Charles Byford warned that numbers
would be lower by the end of the year since existing roles may no
longer be necessary.

Byford added he did not expect the new issues market to recover
until 2002.


BIG BEAT: Consortium Saves Club
-------------------------------

Troubled club and pub empire of entrepreneur Ron McCulloch Big
Beat has been sold to a consortium led by music promoter Vince
Power of Mean Fiddler, Harry Lambert and the owners of Hanover
Grand nightclub for 20 million pounds, the Scotland on Sunday
reported.

The deal will save the 600 jobs in 21 pubs, clubs and restaurants
throughout the UK after the business went into receivership in
early April. It has debts of 30 million pounds.

KPMG liquidator Blair Nimmo selected the consortium's shelf
company, Finlaw 279 Ltd, as the buyer after 145 expressions of
interest.

Big Beat's financial problems arose, following the closure of its
eight-story superclub Home due to licensing problems and drug
allegations. The license was returned, but too late to stop the
mounting debts and the collapse of venture capital backing.


CLAIMS DIRECT: Takeover Deal Nears Its End
------------------------------------------

Private investor Simon Ware-Lane is in talks to buy a sizable
stake in troubled personal injury firm Claims Direct from its
founders,Tony Sullman and Colin Pool, yesterday's edition of The
Times said.

Earlier this month, the founders won control of Claims after
launching a hostile 19.4-million-pound offer. They then revealed
that they were considering selling their stake to Ware-Lane.


ENODIS PLC: Shares Fall on Declaration of Independence
------------------------------------------------------

Shares of catering equipment maker Enodis plunged 14% on
Tuesday, as the company rejected offers from private equity firms,
yesterday's edition of The Times said.

According to chief finance officer Andrew Allner, financial
buyers, which reportedly includes American trade buyers Ingersoll
Rand, Illinois Tool Works (ITW) and United Technologies, had
looked at the troubled company as part of a wide-ranging review
after a profits warning in March.

Enodis concluded that interests of shareholders would be best
served if it continues as an independent company.

Earlier this year, Enodis sold its kitchen furnishings division
Magnet for 134 million pounds to reduce debt. Chairman Peter
Brooks also admitted that a sale of the business was a
possibility.


EQUITABLE LIFE: Ministers Face Attack Over Equitable
----------------------------------------------------

Sir Gordon Downey, the former Parliamentary Commissioner for
Standards, has attacked the government on its handling of the
Equitable Life affair, the Wednesday edition of The Times said

He called on ministers and the financial services industry to put
together a financial rescue package that would help to stem the
flight of funds out of Equitable.

Sir Gordon added that the scandal surrounding the troubled
insurer's treatment of policyholders could create a crisis of
confidence in the savings industry.

Earlier, the FSA has commissioned a report into its own handling
of the affair. It emphasized that it had retained the services of
accountant PricewaterhouseCoopers and law firm Norton Rose to
carry out the review whether the Policyholders Protection Board
will cover Guernsey-based policyholders if Equitable becomes
insolvent.


EQUITABLE LIFE: Rivals Improve Business at Equitable's Expense
--------------------------------------------------------------

Life insurers are picking up record levels of the pensions
business from employers at the expense of Equitable Life, the
Tuesday edition of the Financial Times said.

Prudential said its market share among local authorities had
risen from 25% to 46% in the past six months. Standard Life also
said its sales of AVCs were running at more than double normal
levels. Much of the new premium income was coming from Equitable.

A similar picture emerges at other insurers.

For years, Equitable was the undisputed leader in employer top-up
pensions. About two-thirds of FTSE 100 companies are understood
to have had Equitable top-up schemes.

Until recently, Equitable Life was forced to close business
because it was unable to meet guaranteed annuity rate (GAR)
liabilities. The company needs to agree a compromise deal with
GAR policyholders in order to cap its liabilities.


EUROPEAN MICRO: Liquidates Assets to Pay Loan
---------------------------------------------
  
Microcomputer products distributor European Micro Holdings,
according to Business Wire on Tuesday, has liquidated European
Micro Plc to repay its loan.

On August 17, European Micro Plc's primary lender in Europe,
Natwest, temporarily froze all the operating accounts for
European Micro Plc. therefore effectively calling its loans to
European Micro.

In order to avoid this outcome, European Micro Holdings Co-
President and Co-Chairman Harry Shields advanced $630,000 to
European Micro Plc to payoff Natwest's loans.

Additionally, Shields has advanced another $625,000 to European
Micro Plc to satisfy a loan it has with European Micro Holdings
and another $618,000 to European Micro Plc to purchase inventory.

European Micro Holdings intends to use the proceeds received from
European Micro Plc to repay a loan to SouthTrust Bank. European
Micro Plc intends to proceed to an orderly liquidation of its
business in order to repay Shields and other creditors.


EXCITE UK: Can Survive If U.S. Investor Fails
---------------------------------------------

Excite UK, the Internet venture of British Telecom and
Excite@Home, is confident it can survive in the event its key
American shareholder files for bankruptcy as it has enough cash
reserves to last at least another year, the Wednesday edition of
The Times said.

Shares in Excite@Home, which owns 58% of the UK venture, recently
took a dive on the Nasdaq exchange after the company warned
investors that it does not have enough funding to survive the
year.

If in case BT does not want to buy Excite@Home's stake, it could
prove attractive to European Internet companies such as Italy's
Tiscali or Germany's T-Online.

Excite's European operations, apart from those in the UK and
Italy, were closed earlier this year.


GLOBALNET FINANCIAL: Recommends NewMedia Bid
--------------------------------------------

Directors of Web-based financial news provider
GlobalNetFinancial.com has accepted a new offer for the company
from Internet investment firm NewMedia SPARK, according to The
Times' report yesterday.

NewMedia raised its bid for a third time on Monday at just 36
cents a share, after GlobalNet's full-year figures showed a 46-
million-pound plunge into the red. The investment firm first
launched a 55 cents-a-share all-paper bid for the group in June.

AI Software of Italy, which also entered the bidding war with a
45 cents-a-share all-cash offer, is now considering whether to
increase its offer. The company has until August 31 to table a
higher bid.

Earlier, GlobalNet shareholder Peter Fuhrman filed a class action
lawsuit against five directors of the company, alleging them of
insider dealing. NewMedia founder and chief executive Mike
Whitaker is among the defendants named in the suit.


INVENSYS PLC: S&P Cuts Rating to BBB
------------------------------------

Ratings agency Standard & Poor's has cut the long-term debt
ratings of engineering company Invensys from A minus to BBB, the
Financial Times reported on Tuesday.

The downgrade, according to S&P, reflects the further weakening
of Invensys' business profile and rising debt levels, following
the third profit warning in July 2001.

S&P has recommended that Invensys would make asset disposals to
strengthen its financial profile.

S&P's rating action brings it in line with Moody's Investors
Service, which cut Invensys' rating to Baa2 from Baa1 two weeks
ago.


J2C PLC: Winds Down Remaining Sites
-----------------------------------

Business-to-business dotcom J2C, formerly called Just2Clicks, has
admitted it failed to find a buyer for its last two remaining
websites, the Daily Telegraph reported yesterday.

As many as 47 jobs will go from its Newcastle upon Tyne offices
following the closure of the BestValueZone and Translinx sites.

The company had planned to sell the business and return capital
to shareholders after it found it was unable to drum up enough
custom with the sites.

J2C hopes to still sell off certain assets, including the
Translinx brand.


LYNX GROUP: Sells Sphinx Cisco for 11MM Pounds
----------------------------------------------

Lynx Group, which is restructuring its computer software
businesses, has sold its networking products distributor Sphinx
Cisco for between 10 million and 11 million pounds, yesterday's
edition of The Times said.

Lynx will use the proceeds to cut debts.

Ingram Micro Inc., the largest global wholesale provider of
technology products and supply chain management services, was
reportedly the buyer of the said Cisco Sales Division.


MARKS & SPENCER: Shares Recover Slightly
----------------------------------------

Shares in ailing retailer Marks & Spencer recovered this week,
upon news that eight bids had been received for its Brooks
Brothers operation in the US, including one from U.S. designer
Tommy Hilfiger, the Tuesday edition of Financial Times & News
Edge said.

Kings supermarket chain, M&S' other U.S. operation, could be sold
by the middle of September, while Brooks in October.


NTL INCORPORATED: To Expect Further Downgrade Rating
----------------------------------------------------

Heavily indebted cable operator NTL is expected to have its
credit rating downgraded by Moody's to Triple C, the Tuesday
edition of the Financial Times said. Moody's review of NTL's
rating was prompted by continued concerns over the company's high
debt levels.

Moody's cable analyst Ted Barac confirmed that the agency had
been in meetings with NTL and would make a ratings statement
after the conclusion of a credit committee meeting.

Investors said that a downgrade for NTL could put pressure on the
ratings of other European cable companies, such as UPC of the
Netherlands and Telewest of the UK.

                                *************

        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 Ma. Lourdes Reyes, Editors.

Copyright 2001.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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