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/raid1/www/Hosts/bankrupt/TCREUR_Public/020315.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 Friday, March 15, 2002, Vol. 3, No. 53 Headlines * B E L G I U M * FLV FUND: Will Return Share Capital to EUR 28.0MM Total * G E R M A N Y * COMDIRECT BANK: 2001 Parent Pretax Loss Post-Items EUR 203.3M DEUTSCHE TELEKOM: Dividend Divides Government, Minority Holders KIRCHGRUPPE: Axel Springer Not After Bankruptcy of Media Group * I R E L A N D * AIB: CEO Buckley to Retain Post in Dublin, Says Report AIB GROUP: Observers Don't Expect Much From Ludwig Report LUCENT TECHNOLOGIES: To Fall Short of Target for the Quarter * I T A L Y * ALITALIA-LINEE: Tremonti Gives Bond and Share-swap Plan a Go FIAT SPA: Admits to Peddling Real Estate Unit to Six Big Firms * N E T H E R L A N D S * LYCOS EUROPE: Narrows 2001 Net Losses to EUR67.5 Million * S W E D E N * Adera AB: Announces Details Regarding EGM ADERA AB: To Sell Communications Business ICON MEDIALAB: Merger Calls for 25% in Job Redundancies LM Ericsson: Releases New Date to Announce 1Q 2002 Reports * S W I T Z E R L A N D * ABB LTD: To Sell Assets to Raise Cash for Day-to-Day Operations SWISSAIR GROUP: Crossair CEO Asks Pilots to Accept New Terms * U N I T E D K I N G D O M * ARTHUR ANDERSEN: Search for Buyer Widens as Days Are Numbered EQUITABLE LIFE: Policyholders Pursue Compensation From Regulators NTL INCORPORATED: Dow Jones Replaces NTL With Fox in Media Index NTL INCORPORATED: Invites Investors for a Conference Call RAILTRACK GROUP: Prosecution Reconsiders 1999 Train Crash Case RAILTRACK GROUP: Investors Council Sets Ultimatum for Payout ROYAL DOULTON: Waterford Scheming to Buy Brands, Not Entire Firm TELECITY PLC: Investors Dump Shares After Merger Talks Collapsed THISTLE HOTELS: Sells 37 of 56 Hotels to Weather Industry Slump ============= B E L G I U M ============= FLV FUND: Will Return Share Capital to EUR 28.0MM Total ------------------------------------------------------- On December 27, 2001, the extraordinary shareholders' meeting of FLV Fund Comm. VA decided to decrease the share capital of the Company through the reimbursement to the shareholders of an amount of EUR 28,022,113.20 in the aggregate or EUR1.36 per ordinary share. The record date for the reimbursement will be Friday, March 15, 2002. Accordingly, all holders of ordinary shares in the company at the end of the Nasdaq Europe Business Hours (5pm CET) on Friday March 15, 2002 will be entitled to receive a reimbursement of EUR 1.36 per ordinary share. The ordinary shares in the Company will be traded as of the start of the Nasdaq Europe Business Hours (9.00 am CET) on Monday, March 18, 2002. The payment date for the reimbursement will be Tuesday, March 19, 2002. The reimbursement will be distributed to the respective shareholders via their financial intermediaries on or after March 19, 2002. FLV Fund was incorporated on December 1995 as a global venture capital fund dedicated to companies developing applications on intelligent interfaces. FLV Fund traded on the Nasdaq Europe stock exchange in July 1998. FLV Fund's objective is the maximization of the shareholder value and gradual refund of its shareholders through realization of its portfolio. The gradual and orderly realization of the portfolio will be organized through regular exits and/or, if estimated opportune, through a controlled auction of whole or a part of the portfolio. The target date for the winding-up of FLV Fund's activity is set at December 31, 2004. For more information, please contact FLV Fund, Piet Vandermeersch, 32 (0)57/22 94 30. ============= G E R M A N Y ============= COMDIRECT BANK: 2001 Parent Pretax Loss Post-Items EUR 203.3M ------------------------------------------------------------- German on-line brokerage Comdirect Bank AG reported Wednesday that the company's parent company recorded a loss before taxes after extraordinary items of EUR203.3 million. However, its parent posted an operating profit of EUR12 million, the report according to Dow Jones Newswires adds. The group announced that its final figures will be released on March 25. Comdirect's consolidated pretax loss of EUR150.6 million, which it said would be offset against the company's reserves. Last year, the bank reported pretax losses of EUR25.57 million in its 2000 financial statement. On Wednesday, Comdirect did not provide a comparative 2000 pretax figure. The company's 2001 unaudited figures include restructuring expenses for its foreign subsidiaries. Its Italian operations amounts to EUR51.9 million, its French unit figures total EUR113.8 million, while a partial write-off for its London unit was EUR38 million. The figure also includes a write-down for the investment of Censio AG of EUR11.6 million, the report adds. Comdirect is a unit of Germany's third largest bank, Commerzbank. The group has operations in France, Italy, and the U.K. It is considering terminating or divesting some of its foreign operations due to a slowdown in the industry. DEUTSCHE TELEKOM: Dividend Divides Government, Minority Holders --------------------------------------------------------------- The issue of whether or not Deutsche Telekom should forgo giving dividend this year to meet debt-reduction targets is causing friction between the federal government and minority shareholders. According to the Financial Times, a group of minority shareholders known as SdK has called on the government to relinquish its share to help whittle down the company's burgeoning EUR62.2 billion debt. The government, which stands to gain EUR1.1 billion from the dividend, refuses to budge. "The federal government cannot forgo dividend income and privatization revenue from its shares in the former federal post authority," a spokesman for the finance ministry told the paper. After failing to push through with the sale of its cable assets to Liberty Media last month, the company is expected to fall short of its target to bring down debt to EUR50 billion this year. As this develops, some have called for the scrapping of the dividend this year, which will cost the company EUR2.6 billion. But the government, which retains 43% of the former state-owned firm, does not like the idea, as it will likely cause an outcry from retail investors. The firm's share is the most widely held stock in Germany. Scrapping the dividend will also undermine the country's fledgling equity culture, a bad idea at the moment, as government plans to reduce its stake in the company, the finance ministry says. But analysts say there is really not much choice for either the company or the government. The company, in particular, cannot forgo a dividend, because the dividend could be considered an illegal state subsidy by the European Commission. KIRCHGRUPPE: Axel Springer Not After Bankruptcy of Media Group -------------------------------------------------------------- Axel Springer AG, which had earlier disclosed plans to legally pursue the "put" option it exercised in January, stressed anew that it is not after the liquidation of KirchGruppe. Axel Springer Chairman Mathias Doepfner reiterated Wednesday that the plan to force the embattled media giant to honor the EUR767 million option should not "drive [it] into a liquidity crisis." He also denied that Springer is trying to push Kirch into selling the 40% stake that Kirch itself owns in Springer. "That is wrong. There is no such intention," Mr. Doepfner said. Kirch has maintained that the option was not "legally binding" since the 2000 contract had not been properly notarized by the publisher; hence, legally void. ============= I R E L A N D ============= AIB: CEO Buckley to Retain Post in Dublin, Says Report ------------------------------------------------------ Allied Irish Banks CEO Michael Buckley will likely keep his post, The Herald said yesterday. Citing industry observers, the report said every indication points to Mr. Buckley holding on to his seat at the Dublin office. For instance, the paper pointed out that it will be Mr. Buckley and Eugene Ludwig, the consultant hired to make recommendations as to which head should roll, who will bare the report anytime this week. In addition, institutional investors are reportedly unprepared to let go of Mr. Buckley at this juncture, despite the embarrassment brought by the Allfirst scandal. At the moment, only the posts of Allfirst Chairman Frank Bramble and CEO Susan Keating appear vulnerable. Reports have it that both had been seen leaving the Dublin airport from the luxurious Four Seasons Hotel. For two days now, the board of AIB has been in closed-door meeting with Mr. Ludwig in Dublin over his findings, the report said. The board has promised to publish the report. AIB GROUP: Observers Don't Expect Much From Ludwig Report --------------------------------------------------------- Analysts believe Allied Irish Banks and its U.S. subsidiary Allfirst Financial Inc. won't look any different even if it follows the recommendations contained in Eugene Ludwig's report. According to Dow Jones Newswires, industry observers believe the report, presented by Mr. Ludwig during a board meeting Tuesday, does not contain strategic recommendations on what to do with Allfirst. "Effectively, the bank between today and tomorrow isn't going to look any different but what won't go away is the issue of what to do with its U.S. business: Whether to stick it out or sell it and I'm not sure that aspect will go away after the Ludwig report is published," Scott Rankin, banking analyst at Davy Stockbrokers, told the news wire. Analysts say Mr. Ludwig, who also did a similar report for National Australian Bank on loan write-offs on its trailer home portfolio in the U.S., has been known to touch only on cosmetic issues. In that report, the consultant with Promontory Financial in Washington merely recommended that top executives at the local branch be dismissed, while those in the home office suffer cut in performance-related pay to reflect losses. "I'm not expecting any major changes from the Ludwig report. I think all the report has done is to buy AIB some time to get its house in order," one unnamed banking analyst told Dow Jones Newswires. One think is clear, though, any face-lifting measure like dismissal of a few executives will not do so much to its credibility, analysts say. "Ultimately, the proof of the pudding will be in top management's ability to do something with Allfirst," said Mr. Rankin. LUCENT TECHNOLOGIES: To Fall Short of Target for the Quarter ------------------------------------------------------------ Restructuring Lucent Technologies has announced once more that it will fall short of its projections for the current quarter due to the continued weakness of the telecoms market. The company bared Wednesday that an unexpected delay by major companies in completing orders for its telecommunications equipment would make it earn no more than US$3.85 billion in the quarter. Only three weeks ago, the company said that it would report revenue of as much as US$4.03 billion for the quarter, or 15% more than the US$3.5 billion it gained in the last quarter of 2001. To shore up its shaky finances, the company announced Wednesday its plan to raise US$1.5 billion through a private sale of notes that will be convertible to stock. Analysts interviewed by New York Times said the revised projection was expected after financially strained customers like Qwest International, Sprint and WorldCom announced recently that they were cutting back their capital spending. Wall Street, on the other hand, took Lucent's warning as further evidence that the company, which has repeatedly revised projections downward in the last two years, was consistently too optimistic about its prospects, the paper said. Moody's Investors Service said it was reviewing Lucent's credit rating with an eye toward downgrading it, and Standard & Poor's downgraded the debt, already at junk- bond status, a further level, to B+. "Lucent is predictably disappointing," Deutsche Bank debt analyst Ed Oppedisano told the paper. Still, management remains optimistic. Lucent Chairman Henry B. Schacht said the announcement Wednesday was positive news, given the current market conditions. Meanwhile, Lucent shares slipped more than 10 percent to US$5.60 following the announcement of the convertible bond issue. Concerns over potential dilution of stock caused the share to drop an additional 23 cents in after-hours trading, the paper said. ========= I T A L Y ========= ALITALIA-LINEE: Tremonti Gives Bond and Share-swap Plan a Go ------------------------------------------------------------ Plans for a capital injection for Alitalia-Linee Aeree Italiane S.p.A. involving a share-swap agreement with Air France advanced Tuesday. Details of the deal were discussed between Italy's finance minister Giulio Tremonti and Alitalia CEO Francesco Mengozzi and with Air France chairman Jean-Cyril Spinetta. Mengozzi proposed a 1.4 billion euro recapitalization to the board when it meets on March 28 to approve the accounts for 2001. The operation will take the form of a convertible bond. However, Mengozzi has confirmed that the plans will only be approved if trade unions agree to 2,500 job cuts at the airline. Talks continue over the share-swap agreement with Air France. The agreement will involve a 2-3% stake in Alitalia but speculation say that this figure could rise to as much as 14-15%. The 53% state-owned Italian airline closed last year with net losses of 673 million euros. FIAT SPA: Admits to Peddling Real Estate Unit to Six Big Firms -------------------------------------------------------------- Cash-strapped Fiat SpA has confirmed inviting six financial companies to bid for its real estate unit Immobiliare San Babila Wednesday next week, the Dow Jones Newswires said. The Daily MF said Wednesday that the six contenders in the running for the Fiat asset are: (1) GE Capital Europe unit GE Real Estate, (2) Deutsche Bank, (3) Goldman Sachs' Whitehall, (4) Morgan Stanley Dean Witter & Co., (5) J.P. Morgan, and (6) Pirelli & C. SpA's real estate unit. The Italian carmaker did not confirm reports that it's selling the unit for EUR250 million. The unit is said to be holding properties in Milan, Turin, Rome and Mantua. The sale is part of Fiat's plan to sell off some EUR3 billion in non-core assets by 2003 to reduce its debt pile. ===================== N E T H E R L A N D S ===================== LYCOS EUROPE: Narrows 2001 Net Losses to EUR67.5 Million -------------------------------------------------------- Haarlem-based Internet portal Lycos Europe NV said late Tuesday it narrowed its losses in the six months ending Dec. 31, according to the Dow Jones Newswires, despite a slowdown in the advertising industry. The company announced it posted a net loss of EUR 67.5 million in the shortened fiscal year compared to unaudited net loss of EUR160 million in the equivalent year-earlier period. Lycos's six-month period represents a shortened fiscal year, as the company is switching to a January-to-December calendar year. Without added capitalization, the company intends to break even on an earnings before interest, tax, depreciation and amortization level by the last quarter of this year. Lycos incurred 11.6 million euros in restructuring expenses for terminating employee benefits and lease agreements and said the business will continue its restructuring. Sales increased to EUR68.8 million compared to EUR57.1 million last year. The company also disclosed that it was able to slash sales and marketing expenses by 84% to EUR16.4 million. However, the company adds that these costs may rise again due to a renewed focus on product branding. Lycos said it had EUR288.9 million in cash at the end of last year compared with EUR353.2 million at the end of June 2001. =========== S W E D E N =========== Adera AB: Announces Details Regarding EGM ----------------------------------------- Gothenburg-based Internet consultancy company Adera AB invites shareholders to attend an Extraordinary General Meeting to be held on March 28, 2002 at 10:00 a.m., at Adera's premises, Gavlegatan 22, Stockholm, Sweden. Shareholders who wish to participate in the Meeting must be listed in the register of shareholders maintained by VPC AB (the Swedish Securities Register Center) not later than March 18, 2002 and notify the company of their intent to participate in the Meeting not later than March 25, 2002 at 3:00 p.m. Notification may be made in writing to the company at the following address: Adera Sweden AB, Attn: Tony Ryd,n, Gavlegatan 22, 113 30 Stockholm, Sweden. Notification can also be made by e-mail to tony.ryden@aderagroup.com, by fax on +46 8 587 775 91 or by telephone on +46 8 587 775 10. In notifying the Company, shareholders must state their name/company name, national registration/corporate registration number, address and telephone number. Only shareholders whose shares are registered in their own name are entitled to participate in the Meeting. Shareholders whose shares are registered in the names of nominees, through the trust department of a bank or other trustee, must temporarily re- register the shares in their own names at VPC not later than March 18, 2002. Proposed agenda 1. Opening of the Meeting. 2. Election of the Chairman of the Meeting. 3. Preparation and approval of the list of shareholders entitled to vote at the Meeting. 4. Approval of the agenda. 5. Election of minutes-checkers. 6. Determination of whether the Meeting has been duly convened. 7. Matter concerning approval pursuant to the Act (1987:464) concerning Certain Directed Placements in Stock Market Companies, etc, of the transfer of all the shares in the subsidiary Adera Kommunikation AB. 8. Closure of the Meeting. Proposal from the Board The company has, subject to approval from the shareholders, entered into an agreement concerning a sale of the subsidiary to the management and key employees of the subsidiary. Rolf Jansson, the founder of Adera, will acquire the majority of the shares in the subsidiary. The purchase price for the shares amounts to SEK 1,000,000. An intra-company loan of SEK 6,061,000 will be quarterly amortised by the subsidiary and be finally paid 28 months after the transfer date. The company has the option to convert due amounts into shares in the subsidiary. The Board's statement with regard to the proposal to sell the shares in the subsidiary and a summary of a valuation statement according to the Listing Agreement with Stockholmsborsen AB is available on the company's website www.aderagroup.com and at the company. A valid resolution of the sale demand the assistance of shareholders with at least 9/10 of both the votes cast and the shares represented at the meeting. For further information, please contact: Torbjorn Lindh, President and CEO Phone: +46 (0)70-92 73 085; Nils-Ove Andersson, Vice President Phone: (0)70-30 36 733. ADERA AB: To Sell Communications Business ----------------------------------------- As a final step in streamlining its operations, the Board of Directors of Adera has decided to sell the subsidiary Adera Kommunikation AB to key persons and members of the subsidiary's senior management. This transaction will generate a total liquidity increase for the parent company of SEK 6 million, but also a capital loss of approx. SEK 2 million. As a result of this transaction, Adera's resources will be concentrated solely to IT business activities. After the sale, the total number of employees in the Group will be just under 100 persons. The sale of the subsidiary is subject to the approval of a Special General Meeting of shareholders. A notice pertaining to this meeting will be issued in the next few days. For further information, please contact: Torbjorn Lindh, President and CEO at telephone number +46 (0)70-92 73 085 or Nils-Ove Andersson, Vice President at telephone number (0)70-30 36 733. ICON MEDIALAB: Merger Calls for 25% in Job Redundancies ------------------------------------------------------- The IT professional services provider based in Stockholm Icon Medialab announced that a major merger this year with its Dutch rival Lost Boys will make 350 workers or a quarter of its workforce redundant, silicon.com reports. Meanwhile, Icon Medialab also said it had replaced CEO Rens Buchwaldt with Robert Pickering. Mr. Pickering comes from the IT consultancy firm Origin. From the company's year-end operating earnings from Jan. 1, 2001 to December 31, 2001, a loss of SEK 421 .7 million (EUR46.2 million) was recorded. For more information, contact William Kellerman, Corporate Communication, at telephone +46 70 375 9020 or via e-mail at william.kellerman@iconmedialab.com LM Ericsson: Releases New Date to Announce 1Q 2002 Reports ---------------------------------------------------------- Stockholm-based Mobile and Broadband Internet communications equipment maker Telefonaktiebolaget LM Ericsson will announce its first quarter financial report on Monday April 22, 2002 at 07.30 a.m. CET and not Friday April 19, 2002 as earlier announced. Moody's Investors Service last week downgraded to Baa2 the long- term debt ratings of the company and confirmed at Prime-2 the company's rating for short-term debt. Ericsson last year reported a full-year loss of 21.1 billion Swedish kronas (US$1.9 billion). For further information, please contact Ase Lindskog, Director Media Relations, Tel: +46 730 244 872 or e-mail at ase.lindskog@lme.ericsson.se. ===================== S W I T Z E R L A N D ===================== ABB LTD: To Sell Assets to Raise Cash for Day-to-Day Operations --------------------------------------------------------------- ABB Ltd. CEO Jorgen Centerman announced Tuesday that the company will sell assets and borrow from banks in order to get the short- term funding it couldn't raise with its commercial papers. According to the New York Times, a financial services unit that had revenue of US$2.1 billion last year is high on the list of assets to be disposed. "It was linked to the power generation business when we had to finance a portion of those projects. Now the basis for the business is gone," the paper quoted Chairman Jurgen Dormann as saying. Yesterday, the Troubled Company Reporter-Europe revealed that investors don't want their hands on the firm's IOUs due to the negative publicity surrounding the company's losses. Because of this the company is now forced to utilize its US$3 billion credit line arranged in December with a group of 24 banks led by Citigroup Inc. and Credit Suisse First Boston. This credit line, however, is deemed expensive as its interest hinges on the fluctuation of its credit ratings with Moody's and Standard & Poor's. Meanwhile, Goran Lindahl, deputy chairman and chairman-elect of Anglo American, announced Wednesday his resignation, saying he does not want the mining company to be "distracted by becoming involved in matters connected with my former employment." Mr. Lindahl, along with Percy Barnevik, benefited from an embarrassing US$140 million pension scandal at ABB. Both have agreed to respectively return US$28 million and US$53 million of the payout. SWISSAIR GROUP: Crossair CEO Asks Pilots to Accept New Terms ------------------------------------------------------------ Crossair CEO Andre Dose has appealed to its erstwhile pilot union to accept the terms of the unified labor contract for pilots under "Swiss" or endanger the existence of the new airline. Dow Jones Newswires learned Wednesday that Mr. Dose had written a letter to the Crossair Pilots Union, which had earlier rejected the new contract, saying it favored former Swissair pilots. The pilots have shrugged off the 16% increase of their salaries under the new regime, claiming that the "new contract creates a two-class system at the new airline." The union says it will refer the matter to the arbitration panel in Basel. But Mr. Dose said any increase beyond the 16% is not possible. "I want to tell you openly that the board can and will not go any further, it is simply impossible as we would be outside of the goals set in the business plan," Dose wrote in his letter. "To meet these goals is extremely essential as otherwise our investors will retreat. This is by all means not a threat it is merely reflecting the current situation," he wrote. The Aeropers Union, the association of Swissair pilots, believes that a solution to the row will eventually be found. Under the new contract Swissair pilots will absorb a 35% cut in their previous pay with Swissair. =========================== U N I T E D K I N G D O M =========================== ARTHUR ANDERSEN: Search for Buyer Widens as Days Are Numbered ------------------------------------------------------------- Beleaguered accounting giant Arthur Andersen has widened its search for a buyer under pressure by projections that what now separates it from becoming a history is just a few more days. The New York Times, citing reliable sources, says the embattled firm had also began talks with Ernst & Young and KPMG after it surfaced that an indictment is due before the end of the week. The paper says Andersen contacted the two companies as early as last week, but only on Tuesday did "intense discussions" start. Already, Andersen is talking with Deloitte Touche Tohmatsu, but sources say discussions are heading nowhere. Thought earlier to be out in the running to acquire Andersen, KPMG is now reportedly interested in Andersen's overseas operations, the paper says. It is imperative that Andersen be absorbed by a rival quickly because a collapse would leave thousands of clients struggling to find new accountants, a huge transfer that competing firms would probably be unable to absorb rapidly, the report says. Meanwhile, according to the same report, some Andersen units outside the United States are reportedly holding independent negotiations with rival groups. According to one expert interviewed by the paper, these talks are possible since Andersen is more like a series of foreign partnerships than a single entity. "In theory, the foreign partnerships can go their own way," John Davies, head of business law for the Association of Chartered Certified Accountants in London, told New York Times. In practice, those foreign affiliates may have good reason to stand their ground. Having been spared the large client defections that have hit the American partnership, affiliates in Europe and Canada are in a stronger bargaining position, he said. "The deal Deloitte tries to strike will not be palatable to every partner in the firm," Mr. Davies told the paper. Indeed, some partners are against a merger with Deloitte. In Poland, for instance, where Deloitte plays only second fiddle, generating less than half of Andersen's US$80 million annual revenue, a partner said the merger is unacceptable. The partner, who refused to be named, confirmed their unit is holding talks with several rivals. "We are watching carefully what is going on in the United States regarding these negotiations...But ultimately our decision will be made independently," the partner said. But there are also those who are neither seriously considering seceding from the global network nor holding merger talks with rivals, says one source interviewed by the paper. "We'd be much better off to stay together as a global firm. We do a lot of business through the global network," Canadian partner Russell Robertson told the New York Times. But Marketing Director Eves Van Durme of the Belgium unit, which employs 1,200 people and generates US$140 million in annual revenue, says they are considering bolting from the partnership. EQUITABLE LIFE: Policyholders Pursue Compensation From Regulators ----------------------------------------------------------------- Equitable Life policyholders are lobbying for support in their bid to hold regulators of the insurance firm responsible for its near-collapse recently and the restructuring of their policies. Equitable Members' Action Group, which claims to represent 150,000 policyholders, called on the board of Equitable to openly voice its support for compensation from regulators, the previous board and its professional advisers. "If the government doesn't acknowledge the failure of the regulator in the Equitable disaster, why should anybody in this country be prepared to trust their money to an insurance company?" Ron Bullen, chairman of the Equitable Policyholders Action Group, was quoted by the Financial Times as saying. In October last year, the government assured policyholders that it will provide compensation if the parliamentary ombudsman find they had suffered injustice. Ruth Kelly, economic secretary, said the Treasury would consider any recommendations from Lord Penrose, whose independent report into the crisis is not expected until the end of this year. But the ombudsman's inquiry only goes back to 1999, when the Treasury and the Financial Services Authority took over responsibility for Equitable from the DTI, the report said. Policyholders want the inquiry to look as far back as 1993, which they believe "the rot started to set in." A motion tabled in parliament by Ulster Unionist MP Roy Beggs is now calling for an independent inquiry into the matter. Policyholders are drumming up support for the motion. NTL INCORPORATED: Dow Jones Replaces NTL With Fox in Media Index ---------------------------------------------------------------- Beginning Monday NTL Incorporated will no longer be traded in the Dow Jones media index due to its low market value, the Dow Jones said Wednesday. The British cable operator was booted out by Fox Entertainment Group Inc. after failing to maintain the minimum requirements necessary to be included in the Dow Jones Sector Titans Media Index. NTL is currently trying to restructure US$17 billion in debt. The closing price for its American Depositary shares has fallen from US$32.40 on May 2 last year to 24 cents on the New York Stock Exchange on Wednesday. Dow Jones has 18 sector indexes that represent leading global companies in areas like basic resources, chemicals, autos and retail. Dow Jones & Co. publishes the Wall Street Journal in addition to providing financial information. NTL INCORPORATED: Invites Investors for a Conference Call --------------------------------------------------------- NTL Inc., the heavily indebted British cable television operator, invites the Investment Community to its 4th Quarter and Full Year 2001 Financial Results Conference Call on Wednesday, March 27, 2002 AT 8:30 AM ET (1:30 PM UK time). CEO Barclay Knapp and members of the senior management team will discuss NTL's financial results for the 4th quarter and full year 2001. Participants will be able to access the presentation via conference call through U.S. Dial-in Number 1-877-505-5130 And International Dial-in Number 1-706-679-8597. The replay will be available for a week beginning approximately one hour after the end of the call. The dial-in numbers in the U.S. Replay is 1-800-642-1687, while International Replay Dial-in Number is 1-706-645-9291 with Conference ID 3442221. The meeting and slides can also be accessed via a live audio webcast at 8:30 AM ET (1:30 PM UK time) on our NTL's website http://www.ntl.com/. For further information, contact US Investor Relations: John F. Gregg, Senior Vice President - Chief Financial Officer Bret Richter, Vice President - Corporate Finance and Development Tamar Gerber, Director - Investor Relations at telephone number +1 212 906 8440 or via e-mail at investor_relations@ntli.com. For U.S. Media Relations, contact Steve Lipin or Tim Payne of the Brunswick Group +1 212 333 3810/ +1 917 853 0848. In the UK, contact Alison Kirkwood of Media Relations at telephone number +44 (0) 1256 752 662 / +44 (0) 7788 186 154; Malcolm Padley at telephone number +44 (0) 7788 978 199; Mike Smith/Jonathan Glass of the Brunswick Group at telephone number +44 (0) 207 404 5959 or Richard Oldworth/Mark Edwards or Jeremy Garcia - Buchanan Communications +44 (0) 207 466 5000. For U.K. Investor Relations, contact Virginia McMullan, +44 (0) 207 909 2144, or via e-mail at investorrelations@ntl.com. RAILTRACK GROUP: Prosecution Reconsiders 1999 Train Crash Case -------------------------------------------------------------- Financially drained Railtrack, along with Go-Ahead Group, faces "unlimited fines" arising from a possible liability in the fatal Ladbroke Grove crash, the Financial Times said Wednesday. The paper has learned that the Crown Prosecution Service is currently reviewing an earlier decision not to pursue charges of corporate manslaughter against Railtrack, the network owner, and Go-Ahead Group, owner of the Thames Train that passed a red signal and hit a Great Western express head-on. According to the report, the prosecution service had recently asked an academic expert to consider its decision after receiving appeals from lawyers representing survivors and families of the 1999 accident. The Health and Safety Executive says they will prosecute the two companies as soon as the prosecution service decides its next move. The Executive, however, says that a case against individuals may not be possible due to "insufficient evidence." Thirty-one people died in the crash outside Paddington station in west London. RAILTRACK GROUP: Investors Council Sets Ultimatum for Payout ------------------------------------------------------------ The National Association of Pension Funds, an investment council that represents about 35% of UK's workforce, has given the government four weeks to compensate Railtrack investors or risk tainting its reputation. The ultimatum follows veiled threats from 20 fund managers, who said recently that the cost of financing state projects would rise unless the Railtrack dispute was resolved. Speaking during its recent annual meeting, Alan Rubenstein said putting the rail network owner under administration was "the Daddy of corporate governance scandals." "I believe the government has a limited time, perhaps as little as four weeks to solve this problem before the next part of the 'son of Railtrack' process begins," he said. "Make no mistake, for us as investors, Railtrack is damaging trust and the government is in danger of failing the test of character," Mr. Rubenstein was quoted as saying. "There is no doubt that there was then and there is now value in Railtrack, though as time goes by that value becomes more difficult to extract and must inevitably deteriorate," he said. The NAPF chairman said the government should have not withdrawn funding to Railtrack, a company that investors understood would always be reliant on government funding. Mr. Rubenstein was referring to the refusal of Stephen Byers to extend further money to Railtrack, and instead put it under administration. For this investors, who have lost majority of their money, are now asking compensation. The NAPF has a membership of about 8 million employees and holds GBP650 billion of assets. ROYAL DOULTON: Waterford Scheming to Buy Brands, Not Entire Firm ---------------------------------------------------------------- Rumors are rife that Waterford Wedgwood Plc, which successfully moved for the postponement of a rights issue vote, is looking to acquire Royal Douton's brands rather than taking over the entire firm. Analysts interviewed by Dow Jones Newswires believe the Irish luxury goods maker would rather pick off some of Royal Doulton's high-end luxury brands than assume its debts. "It's reasonable to assume that Waterford Wedgwood is looking for a brand like Royal Albert and would like to put more volume through its own plant," said Joe Burnell, an analyst at Davy Stockbrokers. Aside from Royal Albert, Waterford would most likely aspire to bring to its fold Minton, the other popular brand of Royal Doulton. Royal Albert china had sales of GBP27 million in 2001, while Minton had sales of GBP9 million. "An operational merger looks out of the question. A brand buy- out, where Waterford doesn't have to increase its manufacturing capacity, is a lot more likely," agreed another Dublin-based analyst. Last week, Waterford successfully maneuvered the postponement of a vote on the planned rights issue for another week under the pretense of having in mind an alternative proposal that would alleviate the need for a cash call. But since nothing has come out to the surface regarding the alternative plan, some sectors have begun speculating that a brand buy-out may be in the making. This idea is even bolstered by the fact that Waterford just recently upped its initial share of 14% to 21.2% in early March. Analysts say this leaves Waterford in a strong negotiating position to take some brands off Doulton's hands in return for much-needed cash. Waterford is currently capitalized at EUR600 million and its shares are currently quoted at 73 cents in Dublin. Recently, it reported sales exceeding the EUR1 billion-mark for the second consecutive year. Industry observers say Waterford sought the postponement of the vote because the rights issue threatens to dilute its holdings in the company. Royal Doulton will again put the GBP19 million rights issue to a vote today. It plans to use the proceeds in paying its GBP24.3 million debt pile. TELECITY PLC: Investors Dump Shares After Merger Talks Collapsed ---------------------------------------------------------------- TeleCity's share slumped anew just days after trading 12.25p, following reports that discussions with InTechnology, the reason for the climb by as much as 17% on Monday, had been terminated. The Financial Times says the market reacted sharply Wednesday, returning a 12% slide to 11-1/4p, shedding most of the gains made just days before. The report did not give any reason for the breakdown of talks. Neither TeleCity nor InTechnology has also come out with an explanation. Early this week, the Troubled Company Reporter-Europe learned that TeleCity had turned down an 18p per share offer of InTechnology over the weekend, valuing the company at GBP39.5 million. Accordingly, the web-hosting firm had wanted at least 30p per share. This breakdown is the latest in a series of merger speculations. In February, the firm dismissed rumors that it was talking with UK software company Intec Telecom Systems. The company also bungled a merger discussion with U.K. rival Redbus Interhouse when a hole was discovered in its finances. THISTLE HOTELS: Sells 37 of 56 Hotels to Weather Industry Slump --------------------------------------------------------------- British hotel chain Thistle Hotels announced recently that will sell more than half of its 56 hotels across the U.K. to gain operating flexibility, amid the slump in the tourism industry. According to Ananova, the company will sell 31 regional and six London hotels to Gamma Four, a subsidiary of venture capital firm Euro & UK Property. The six London hotels included in the sale are Thistle Lancaster Gate, Thistle Bloomsbury, Hendon Hall, Cannizaro House, Thistle Kensington Park and Thistle Kensington Palace. The hotel chain is expected to gain GBP600.4 million out of the disposal, giving it enough funds to weather the current industry slump caused by the foot-and-mouth scare, the global economic slowdown and September 11. "By concentrating on delivering growth through our core hotel management business, with a reduced emphasis on the capital intensive ownership of hotel properties, we expect to benefit from increased operating flexibility," Chairman David Newbigging said. "This transaction significantly strengthens our balance sheet and leaves us well placed to pursue potential strategic acquisitions opportunities for further growth and development," he added. The deal leaves Thistle with only 16 hotels in London. *********** 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 Maria Lourdes Reyes, 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 240/629-3300. * * * End of Transmission * * *