/raid1/www/Hosts/bankrupt/TCREUR_Public/020410.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, April 10, 2002, Vol. 3, No. 70


                            Headlines

* F I N L A N D *

SONERA/TELIA: Telia Names New CEO Who'll Likely Head Merged Firm
SONERA CORP: Will Not Sell Xfera Stake After Telia Merger

* G E R M A N Y *

GERLING KONZERN: Restructuring Plan Outlines 1,000 Job Slice
KIRCHGRUPPE: Murdoch Threatens to Bring Group Into Liquidation
KIRCHGRUPPE: Rights to World Cup Not Affected by Insolvency
KIRCHGRUPPE: BskyB Sees Little Return on EUR1.6BB Put Option
KIRCHGRUPPE: Banks Poised to Run Away With Formula One Title

* I T A L Y *

ALITALIA: JV With Air France May Rake in EUR 600MM Profit

* P O L A N D *

ELEKTRIM SA: Second Bidder Challenges BRE's Plans for PTC Stake

* S P A I N *

FONTANEDA: Shut Down by United Biscuits for Being 'Unprofitable'

* S W E D E N *

LM ERICSSON: Sony Ericsson to Set Up Operations in China in May

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

SWISSAIR GROUP: Leasing Unit Sells Interest for US$ 390MM
ZURICH FINANCIAL: "Asset Switch" With Deutsche Bank Blasts Off

* U N I T E D   K I N G D O M *

ARTHUR ANDERSEN: Disclaims Basis for Charges Against U.K. Unit
BRITISH TELECOM: To Offer Cheaper Broadband Service in New Plan
CHRISTIAN SALVESEN: Issues 3rd Profit Warning, Sees Grim 1st Half
ENODIS PLC: Notice on 92.93 % Acceptance of Rights Issue
ITV DIGITAL: Liquidation Proceeding Could Start Monday Next Week
FRENCH PLC: Files for Liquidation After 120 Years of Operations
ITV DIGITAL: Soccer League Claims Strong Case Against Co-owners
KINGFISHER PLC: Attracts Suitors for GBP 2BB Electrical Business
LASTMINUTE.COM: Acquires Travelselect.com Limited for GBP 9.0MM
LEVI STRAUSS: Shuts Down Two Factories in Britain, Four in U.S.


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


SONERA/TELIA: Telia Names New CEO Who'll Likely Head Merged Firm
----------------------------------------------------------------

Swedish telecom operator Telia AB, which is about to combine
with Sonera Oyj, named Monday Anders Igel as its new CEO, confirming
rumors that a Swede will head the merged group.

A rumored unwritten understanding between the two companies
allegedly provides for the CEO to be from Telia, since the board
will be headed by Sonera's current Chairman Tapio Hintikka.

The appointment lifted the shares of Telia and Sonera Monday, as
analysts gave Mr. Igel a cautious, but positive welcome, says
industry newspaper Total Telecom.

Mr. Igel enters the company with a solid experience in the
telecoms sector and a reputation for making structural changes,
the report says.

He currently the president and CEO of office supplies group
Esselte, which has 7,000 employees in more than 100 countries and
annual turnover of US$1.07 billion.

He had also been an executive vice president at telecoms
equipment maker Ericsson.

"Anders Igel has the best prerequisites for the job of leading
Telia. His present role gives him the experience of being the
head of an international and listed company in the consumer goods
business," Telia said in a statement explaining the choice.

"In addition, 20 years at Ericsson have given him a wealth of
knowledge and a broad contact network within the world of
telecoms," the statement added.

"He has a pretty long history in demanding positions, so it would
seem he is a pretty good candidate for the job," said Evli Bank
analyst Matti Riikonen in an interview with the paper.

"To reduce any uncertainty related to the merger is of course
good," he told Total Telecom.

Mr. Igel replaces Marianne Nivert, who is retiring, by September
30, 2002 at the latest.

At 1030 GMT, Telia shares were up 3.5 percent while Sonera were
ahead by 4.1 percent.


SONERA CORP: Will Not Sell Xfera Stake After Telia Merger
---------------------------------------------------------

After its merger with Telia AB, Sonera Corp intends to keep its
stake in Xfera SA, La Gaceta de los Negocios reported, citing
Actividades de Construccion y Servicios SA managing director
Angel Garcia Altozano.

ACS and Sonera formed a new company ACS-Sonera Telefonia Movil
last year to control their joint 34% stake in Xfera. The joint
venture business Xfera is a Spanish 3G mobile phone which holds a
UMTS licence.

Xfera announced its decision hold back the launch of its business
until 2004 last October, when it estimates the UMTS frequencies
will be available. This fuelled speculation that some of the
operator's shareholders, including Sonera, might give up their
stakes.

It was this Spanish mobile operator which was able to draw up
plans calling for a 73% reduction of its 600 workforce which
affected ACS SA-Sonera and Fomento de Construcciones y Contratas
SA-Vivendi Environment, the Troubled Company Reporter Europe said
in November last year.


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


GERLING KONZERN: Restructuring Plan Outlines 1,000 Job Slice
------------------------------------------------------------

Stricken German insurance group Gerling Konzern plans to shed
1,000 jobs as part of an extensive restructuring program that
will result in a much-needed capital injection.

According to Financial Times Deutschland, the cuts will be
carried out primarily through "natural wastage", while direct
redundancies will like be limited to closure of small foreign
branches.

The group's reinsurance arm has absorbed EUR500 million in losses
related to September 11 claims, necessitating its sale to
Deutsche Bank that has promised a EUR300 million capital hike.


KIRCHGRUPPE: Murdoch Threatens to Bring Group Into Liquidation
--------------------------------------------------------------

Rupert Murdoch, the KirchMedia shareholder believed to be one of
those responsible for the failure to draw a rescue plan for
KirchGruppe, is threatening to put the group into liquidation.

According to the Telegraph, Mr. Murdoch was irked by the move of
the creditor banks to declare the media group insolvent and
establish a new company out of its ruins, minus the minority
shareholders.

The report says Mr. Murdoch, who is also chairman of British firm
BSkyB, a shareholder in loss-making Kirch pay-TV unit Premiere,
plans to use a "secret" clause that will almost certainly bring
the group into liquidation.

That clause, the report says, allows BSkyB to exercise a GBP1.1
billion "put option" ahead of October, the original timeframe for
the option under normal circumstances.  The clause provides that
should Kirch default on its debts, the exercise can be
accelerated ahead of schedule and payment be made within 30 days.

The report says payment on this contractual obligation would
weigh heavily on the struggling media empire and may well be the
final shot that well bring it to its knees.

But one banker interviewed by the Telegraph is not impressed,
much less worried.

"I don't really think anyone cares if they exercise the option.
It is the banks who are driving this, not Murdoch. His option is
not secured whereas much of the bank debt is secured against
operating assets. He is just trying to use the situation to
leverage his position," the unnamed banker said.

The creditor banks behind Monday's insolvency filing include
Bayerische Landesbank, Dresdner Bank AG, HVB Group, JP Morgan and
Lehman Brothers.


KIRCHGRUPPE: Rights to World Cup Not Affected by Insolvency
-----------------------------------------------------------

The broadcasting rights to the 2002 and 2006 soccer World Cup
owned by insolvent KirchMedia are beyond the reach of any
bankruptcy or liquidation proceedings, says Reuters.

FIFA, the world soccer's governing body, said Monday that
KirchMedia was able to transfer the rights to a subsidiary based
in Zug, Switzerland before it filed for insolvency.

"The companies are all financially sound and legally independent
and will be in a position to fulfill all their obligations toward
the broadcasters," a FIFA spokesman told Reuters.

The spokesman Andreas Herren says the move had "the full support
of FIFA."  He said discussions took place March 28, although he
didn't know when the final decision was made.

The transfer to Kirch Sports ensures that broadcasting of this
summer's event in South Korea and Japan, which runs from May 31
to June 30, won't be affected by the troubles at Kirch, FIFA
says.

FIFA says it plans to expand Kirch Sports and make it the parent
company that will hold all the other rights of the games. Already
the holder of the rights for Europe, Kirch assumed the rights to
the rest of the world after ISL/ISMM collapsed last year.

The governing body says Kirch has already paid the US$723 million
that it owed FIFA for the rights to the 2002 World Cup finals.
Another US$60 million, due 20 days after the end of the finals,
is covered by irrevocable bank guarantees.


KIRCHGRUPPE: BskyB Sees Little Return on EUR1.6BB Put Option
------------------------------------------------------------

BskyB forsees little return in value when it will exercise its
put option to sell its stake in Premiere World, its joint venture
with Kirch Media, AFX News cited dealers as saying.

According to a spokesman from BskyB Monday, the U.K. satellite
broadcaster will continue to pursue payment of the put option it
agreed with the pay-TV arm of Kirch Group, saying "Sky remains
focused on its put option."

BskyB, with its 22% stake on Kirch's pay-TV business, Premiere
World, has a put option exercisable in October worth about EUR1.6
billion.

BskyB had said it planned to exercise the option in Premiere
World since no lift in its performance emerged after results of
its full year figures in July 2001 were released.

Earlier, the U.K. pay-TV operator wrote off GBP985 million when
it released its first-half earnings at the beginning of February.


KIRCHGRUPPE: Banks Poised to Run Away With Formula One Title
------------------------------------------------------------

A group of banks that include JP Morgan of the U.S. could end up
waving the checkered flag of Formula One -- not for winning a
grand prix race, but for gaining control of the racing circuit.

According to the Telegraph, the US bank and a host of other
partners, which the report failed to mention, hold as collateral
the 75% stake of SLEC, the company that controls Formula One.

The paper says it was JP Morgan and company that raised the
EUR1.6 billion to finance KirchGruppe's acquisition of the SLEC
stake and secured the loan on the asset.

With Kirch's application for insolvency Monday, the bank
consortium may well end up with the prized asset if the German
media group fails to get back on track.

"The banks could end up owning Formula One, that is true," a
banker close to the situation told the Telegraph, in confirming
the impending takeover.


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


ALITALIA: JV With Air France May Rake in EUR 600MM Profit
---------------------------------------------------------

Giulio De Metrio, manager of Alitalia's passenger division, said
that the joint venture between Alitalia SpA and Groupe Air France
to manage flights between Italy and France is expected to bring
in about EUR600 million a year in profits.

The deal, which began April 1, requires that 60% of the
operating profits from the venture will go to Air France, while
40% to Alitalia in the first year.

Succeeding profits will be divided equally within three years, De
Metrio disclosed at a news conference.

The beleaguered flag carrier recently unveiled a EUR1.43-billion
fund-raising plan intended to increase the Italian government's
stake in the airline from 53% to 61%. The development is expected
to solicit close scrutiny from European regulators, the troubled
company reported last week.


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


ELEKTRIM SA: Second Bidder Challenges BRE's Plans for PTC Stake
---------------------------------------------------------------

A second bidder for Elektrim's mobile telephony stake has
emerged, posing a serious challenge to the ambitions of BRE, the
Polish bank that is eyeing the company's lucrative PTC stake.

According to Reuters, British venture fund Elliot Advisors and
its allies have entered the fray, dangling EUR450 million or
EUR50 million more than BRE's offer.

On top of that, Elliot is also backed by the Centaurus Alpha
Master Fund linked to Elektrim's creditors -- a convenient set up
that may help the company to get back on its feet after
defaulting on EUR480 million of its debt late last year.

"We want to buy the Elektrim Telekomunikacja shares paying partly
with Elektrim convertible bonds. This could allow a full
repayment of debt and resolve Elektrim's debt problem," Jarek
Golacik from the Centaurus told Reuters.

BRE's recent acquisition of a 15% stake in Elektrim is widely
seen as an initial step to snatching the company's 49% stake in
Elektrim Telekomunikacja, the holding company that controls PTC,
Eastern Europe's top cellphone group.

This dynamic mobile carrier is considered a silent giant that has
all the potentials of becoming a top regional cash generator in a
matter of time.

Many believe that Eastern Europe's potential as a lucrative
market will soon be realized as the pace of the former communist
countries' march towards EU membership speeds up.

Meanwhile, according to Reuters, there are every indication that
Elliot's bid will be considered, not just for its higher value,
but also because Elektrim's executives are reportedly irked by
BRE's aggressive approach.

The bank is pushing for the shakeup of Elektrim's supervisory and
management boards at the next shareholders meeting.


=========
S P A I N
=========


FONTANEDA: Shut Down by United Biscuits for Being 'Unprofitable'
----------------------------------------------------------------

American owner United Biscuits closed Fontaneda last week, the
Spanish biscuit company based in Aguilar de Campoo, claiming it
is no longer profitable.

According to the El Pais, the company is now offering employees
early retirement, transfer to other Spanish plants or relocation
to a canning plant that the U.S. group plans to construct in
Extremadura.

The American company acquired Fontaneda in 1996, which had 600
employees then.  It gradually trimmed down its workforce to 212,
says the report.

Some 7,000 trooped to the streets Sunday to protest the closure
of the plant.  Plant works council Chairman Hilario Alvarez
decried the closure as "a whim of United Biscuits."

Fontaneda was founded in 1881, the report says.


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


LM ERICSSON: Sony Ericsson to Set Up Operations in China in May
---------------------------------------------------------------

Sony Ericsson Mobile Communications, the joint venture firm,
wants to capitalize on the vast potential of the Chinese mobile
phone market by setting up shop there next month.

A spokesman for the joint venture told the Wall Street Journal
recently that the company has filed applications with the Chinese
authorities regarding the creation of the new firm.

"We are hoping that the new unit will be able to start operations
at the end of May," the Journal quoted the unidentified spokesman
as saying.

Accordingly, the new unit will manufacture and sell 2G handsets
as well as 3G phones when that technology is available in China.
The shop will be capitalized at several billions of yen.

At present, Sony has a mobile phone production base in Beijing,
while Ericsson has plants in Beijing and Nanjing.

"As soon as approval is given [from China], the Chinese
operations will be transferred to the joint venture [Sony
Ericsson]," the spokesman explained to the Journal.

Sony Ericsson recently vowed to topple Nokia and Motorola --
the current one and two mobile phone maker -- and become the No.
1 manufacturer in five years.

According to industry paper Total Telecom, setting up the venture
in China will play a significant part in achieving this goal, as
the country is already the world's largest mobile phone market
with subscribers expected to reach 200 million by the end of the
year, up from 140 million now.

Sony Ericsson has targeted a 15% share of the Chinese market by
the end of this year.


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


SWISSAIR GROUP: Leasing Unit Sells Interest for US$ 390MM
---------------------------------------------------------

Flightlease, the leasing arm of bankrupt airline Swissair now
renamed "Swiss", has sold its economic interests in 17 planes
with a German-style leverage lease structure to its parent Swiss,
for US$390 million, Swissair's provisional administrator said.

The airline's leasing subsidiary is expected to raise a net
income exceeding US$100 million from the sale, the administrator
last week said, AFX News reports.

Meanwhile, Gino Zocchai, chairman of Italian airlines Volare,
finally paid SEK21.5 million (US$2.07) for Swissair's 48.62%
stake in Volare and not 70 million as earlier announced, he
added.


ZURICH FINANCIAL: "Asset Switch" With Deutsche Bank Blasts Off
--------------------------------------------------------------

Zurich Financial and Deutsche Bank kicked off Monday their multi-
billion-euro "asset exchange" with the acquisition of Swiss' US
unit Scudder by the German bank.

The "exchange," as it seemingly appears, is part of the two
firms' plan to buy into each other's assets.  Under the same
plan, initially announced in September last year, Deutsche Bank
will in turn sell its insurance business in several European
countries to Zurich Financial.

These sales, worth about EUR1.5 billion euros, should be
completed by mid-year, the bank said in a statement.

According to the Associated Press, the Scudder deal cost Deutsche
Bank US$2.5 billion. The acquisition propels the German bank into
the No. 4 spot of the world's asset management hierarchy.

Deutsche Bank is also taking over the Swiss insurer's asset
management businesses in Germany and Italy, though Scudder's
British operations, Threadneedle Investments, are exempted, the
report says.

Deutsche Bank CEO Rolf Breuer has labeled the asset management
unit as central to the bank's growth ambitions, though it was
partly responsible for a drop in net profit last year to EUR167
million compared to EUR13.5 billion the year before, the report
says.

This latest sale follows Zurich Financial's asset divestment
spree last year that grossed US$5 billion in cash.  The insurer
is frantically scouring for money to pay down debt.


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


ARTHUR ANDERSEN: Disclaims Basis for Charges Against U.K. Unit
--------------------------------------------------------------

Attempts by U.S. plaintiffs' attorneys to extend the litigation
arising from Enron to Andersen in the U.K. have no basis in law,
the accounting firm said in a statement Moday.

Arthur Andersen LLP, an autonomous member firm of the Andersen
Worldwide S.C. -- http://www.andersen.com-- organization,
contracted with, performed the audits of, and signed the audit
opinions on Enron's financial statements. Accordingly, Arthur
Andersen LLP is the only proper defendant in claims relating to
that audit opinion.

Changes in Arthur Andersen LLP's situation cannot be used to
justify baseless claims against Andersen in the U.K. Each member
firm in the Andersen Worldwide S.C. network has its own legal
structure and partners.

"Naming our firm as a defendant has no legal basis," said John
Ormerod, managing partner of Andersen in the U.K. "While we have
sympathy for those affected by Enron's failure, Andersen in the
U.K. has no obligation to satisfy the legal liabilities of other
member firms."

Andersen Worldwide S.C. is a Swiss Societe Cooperative. It is a
co-ordinating entity for its autonomous member firms, which have
agreed to co-operate in the market with a common brand,
philosophy, technologies and practice methods. Each Andersen
Worldwide S.C. member firm has its own governance and capital
structure and its own leadership.


BRITISH TELECOM: To Offer Cheaper Broadband Service in New Plan
---------------------------------------------------------------

Heavily indebted telecom firm British Telecom will cuts its
high-speed Internet service to reach its goal of 1 million
customers by summer next year, says Reuters.

The company, which initially named the new broadband package
"Direct," says it will publish details of the offering, including
prices, on April 24.

According to Reuters, the new package underlines the importance
BT has placed on broadband as a growth catalyst for the indebted
telecoms firm.

The report notes that Internet service providers and
telecommunications providers are banking on broadband access,
which enables consumers to surf the Net at speeds of nearly 10
times that of conventional dial-up connections, to boost their
sagging Internet businesses.

An executive at a rival ISP, however, says she doubts whether the
company can offer a broadband product cheaper than the present
monthly subscription of GBP29.99, let alone achieve break even
with the strategy.

Last month, the company slashed wholesale broadband rates by
roughly half to GBP14.75 pounds. Rival ISPs responded by cutting
the retail price by an average of GBP10 to GBP30, the report
says.

BT revealed Monday that wholesale broadband orders are currently
running at more than 10,000 per week.

A company spokesman told Reuters that the former monopoly targets
five million broadband subscribers by 2006.  The company
mouthpiece said the new offer is part of the three-year plan
unveiled last Monday.


CHRISTIAN SALVESEN: Issues 3rd Profit Warning, Sees Grim 1st Half
-----------------------------------------------------------------

British logistics company Christian Salvesen has issued another
profit warning in four months, this time admitting that it had
seen no sign of a hope for recovery in its industrial business.

According to Times Online, Finance Director Peter Aspden admitted
Tuesday that its industrial and engineering units are not
expected to recover from its slump until the first half of the
next financial year.

Mr. Aspden said the fourth quarter slump was particularly severe.
He said pre-tax profits for the year to March 31 were likely at
the bottom end of analysts' expectations at GBP29 million
compared to GBP39.3 million the last time.

The admission sent the company's shares to close down by 4«p at
94«p.  The paper says these shares previously traded as high as
187p in summer of 2000, when the Swedish shareholder AB Custos
made an offer for the company at close to 200p a share.

CEO Edward Roderick turned down the offer, made before the fuel
crisis hit the U.K., and the shares have plunged since, falling
below 100p in the second half of last year, the report says.

Christian Salvesen stocks have under-performed the transport
sector by around 8% over the past 12 months, the paper says.

The only positive figures in the full-year results of the company
will be those of its consumer and food business, which counts
Marks & Spencer and Ikea among its customers, the report says.

Mr. Aspden says the company is commitment to developing a
European network. New management teams in Germany and Spain are
implementing restructuring plans for its businesses there.

In January the group said it would close four sites in Germany
and cut 200 jobs, prompting an exceptional charge of GBP7
million, the paper reports.


ENODIS PLC: Notice on 92.93 % Acceptance of Rights Issue
--------------------------------------------------------

Enodis, food equipment manufacturer, on February 20, 2002
announced a 3 for 5 Rights Issue at 50 pence per share. The
latest time and date for acceptance and payment in full under the
terms of the Rights Issue was 10.30 a.m. on April 8, 2002.

The company announces that valid acceptances have been received
in respect of 139,551,567 New Ordinary Shares, representing
approximately 92.93 per cent. of the New Ordinary Shares offered
by way of rights at 50 pence. The Underwriter will be seeking to
procure subscribers for the remaining 10,623,028 New Ordinary
Shares.

For further information, please contact:-

Enodis plc
Andrew Allner, Chief Executive
020 7304 6006

Credit Suisse First Boston
George Maddison/Ed Matthews
020 7888 8888

Financial Dynamics
Andrew Lorenz/Richard Mountain
020 7831 3113


ITV DIGITAL: Liquidation Proceeding Could Start Monday Next Week
----------------------------------------------------------------

ITV Digital's administration could become a liquidation
proceeding next week if no breakthrough is achieved in the
negotiations with the Football League, Times Online says.

The virtual newspaper reports the digital channel only has GBP20
million, which can last until Monday, the time when administrator
Deloitte & Touche will give the High Court a status report on
the talks.

At the moment, there is still no breakthrough in the negotiations
regarding the reduction of the outstanding GBP178 million ITV
Digital owes the League.  It is only offering GBP50 million for
the remaining two years on the three-year broadcasting contract.

The League has been trying to talk directly with Carlton and
Granada, the joint owners of the troubled digital channel, but
both have refused any audience, saying it is impossible because
the administrator is now in day-to-day charge of ITV Digital.


FRENCH PLC: Files for Liquidation After 120 Years of Operations
---------------------------------------------------------------

Shareholders of home furnishings manufacturer French Plc have
voted to wind down the company following an extraordinary general
meeting last Monday, AFX News says.

The company has named KPMG as joint liquidator.  According to the
report the register of shareholders will close at 5 p.m. on April
15, 2002.

The shares will be disabled in CREST and de-listed from the
Alternative Investment Market, the company said in a statement.

The firm operates in two principal companies: Northern Textiles
and Thomas French.  The former is a manufacturer and
international sourcer of soft furnishing products, while the
latter makes curtains and a complete cushion service to high
street retailers.

The company listed in its 2001 interim results net assets of GBP6
million on a GBP12.5 million turnover.  It boasts of a 120-year
manufacturing history.


ITV DIGITAL: Soccer League Claims Strong Case Against Co-owners
---------------------------------------------------------------

The Football League is sticking to its stand of forcing ITV
Digital to honor a contractual obligation, after finding out
Monday that it still has enough money to meet the payment.

"We all now know that the GBP178.5 million owed represents less
than 10% of the recent GBP2 billion rise in the value of these
companies due to ITV Digital being placed in administration,"
League CEO David Burns told AFX News.

Mr. Burns based his comments on the financial disclosures the
League acquired Monday after a hearing before High Court judge
Mr. Justice Jacob.

The documents were previously withheld after the High Court
deemed them commercially sensitive, as it stated the amount of
funding available to the company and the length of time the funds
could last.

Since coming under administration, ITV co-owners Carlton and
Granada has maintained that it does not have the money to pay the
GBP89.25 million due this August, under the terms of the original
contract with Football League.  It has offered to pay only GBP25
million of the amount due.

The League has since threatened to file a GBP500 million suit to
compel the company to pay the obligation in full.


KINGFISHER PLC: Attracts Suitors for GBP 2BB Electrical Business
----------------------------------------------------------------

Two companies have emerged as possible buyers of Kingfisher Plc's
GBP2 billion electrical goods division, boosting its chances to
take full control of French DIY chain Castorama.

According to The Guardian, American retail group Best Buy is
rumored to be eyeing Comet, the British electrical goods unit of
Kingfisher and a fierce high street rival of Dixons.

Best Buy has emerged as a potential buyer after it booked
recently a GBP935 million pretax profit for the year to March.
It has also recently announced its intention to expand overseas.

Senior executives from Best Buy, which has a market
capitalization of about US$16 billion, are reported to have flown
to Britain last month and are due to return in a few weeks, the
paper says.

Dixons, on the other hand, has long been rumored to be interested
in Darty, the French unit of Kingfisher.  Accordingly, Dixons
Chairman Sir Stanley Kalms himself has been eyeing the unit for a
while now.

If a sale involving these two units would materialize, the
proceeds could put the debt-laden Kingfisher in a strong position
to gain full control of Castorama.

Kingfisher CEO Sir Geoff Mulcahy wants to take control of the
under-performing French retailer and mirror the success of the
group's B&Q chain in the UK, the report says.

Although Kingfisher now holds 55% of Castorama, it neither has
management nor voting control.  The company's stake in the French
retailer is valued at GBP2.5 billion.

The company is currently buried under a GBP1 billion debt-
mountain.


LASTMINUTE.COM: Acquires Travelselect.com Limited for GBP 9.0MM
---------------------------------------------------------------
lastminute.com plc, the online provider of travel and leisure
solutions, announces the purchase of U.K. flights provider to
consumers and travel agents Travelselect.com Limited, for GBP9.0
million.

The sale will be satisfied by the issue (subject to listing) of
14,538,011 new shares in lastminute.com plc.

According to a company statement, the sale will immediately
enhance the company's earnings and provide immediate positive
contribution to its operating cashflow.

lastminute.com has already announced that it is on track to
deliver operating profit in its U.K. and French businesses in April
to June 2002 quarter and the sale will generate additional gross
profit. For the year to January 31, 2002 Travelselect.com
generated GBP3.3 million of gross margin.

The transaction will triple lastminute.com's existing U.K. flights
volume creating a U.K. flights revenue stream of approximately 50
million pounds. It will facilitate access to a further 39 key
airline relationships while strengthening the relationships with
its existing suppliers.

Travelselect.com has over 19 years experience providing great
value flight opportunities to both its business and consumer
customer base and sells approximately 200,000 flight tickets
annually. Sales are generated both on and off-line with a
significant shift towards on-line sales during the past twelve
months. Internet bookings generated exclusively on-line now
account for some 80% of total transactions. Travelselect.com has
negotiated fares with some 85 major airlines around the world
including British Airways, Virgin Atlantic, Lufthansa, KLM and
Air France.

Travelselect.com is now profitable and has grown sales by over
40% per annum for the past 3 years. The latest unaudited
management accounts for Travelselect.com Limited, for the year to
January 31, 2002, show turnover of GBP38.2 million, gross profit
of GBP3.3 million and a loss before tax and goodwill amortization
of GBP3.1 million.

Net assets at that date amounted to 0.8 million pounds including
net cash of 2.7 million pounds, but after excluding GBP8.7
million of intangible assets. Travelselect.com's current U.K.
operations employ 87 full-time employees in London.

In addition to the initial consideration, lastminute.com will pay
further consideration depending on the EBITDA achieved for the
year to January 31, 2003. The additional consideration has been
capped to a maximum payment of GBP3 million and may be satisfied
either in new shares or in loan notes, at the option of
lastminute.com plc.

Of the 14,538,011 new shares in lastminute.com plc to be issued
as initial consideration, 89% are subject to lock-up provisions
for 12 months from completion (subject to certain limited
exceptions).

Application has been made to the UK Listing Authority and to the
London Stock Exchange for the shares to be admitted to the
Official List and to trading on the London Stock Exchange's
market for listed securities. It is expected that admission to
the Official List and trading on the London Stock Exchange's
market for listed securities will take effect on April 8, 2002.

Allan Leighton, heads lastminute.com as chairman, while Brent
Hoberman as chief executive. Vimal Khosla, majority shareholder
and Chief Executive of Travelselect.com Limited, will join the
lastminute.com plc Board as an Executive Director with effect
from on April 8, 2002.

lastminute.com is the most visited website in the travel and
tourism category across Europe according to a survey published in
December 2001 by independent research company NetValue.

CONTACT Information:

lastminute.com plc, London
Brent Hoberman, Chief Executive
+44 (0)20 7802 4498
David Howell, Chief Financial Officer
+44 (0)20 7802 4498
Citigate Dewe Rogerson
Julian Walker
+44 (0)20 7638 9571



LEVI STRAUSS: Shuts Down Two Factories in Britain, Four in U.S.
---------------------------------------------------------------

Levi's Strauss, the red tab denim manufacturer, has closed its
two factories in the U.K. located in Dundee and Bellshill, in a new
move to cut expenses and stay competitive.

The company, which last month reported a 6% decline in first
quarter sales, also closed four other plants in the U.S., trimming
to two its factories in the home country from 31 in 1997.

According to Times Online, the company did not disclose how much
the restructuring would cost or how much money it intended to
save as a result.

"This is a painful but necessary business decision. There is no
question that we must move away from owned and operated plants in
the U.S. to remain competitive in our industry," the paper quoted
CEO Philip Marineau as saying.

The report says production of jeans is expected to be distributed
between factories in Central and Latin America and South-East
Asia.

A spokesman told the paper that the decision to cut factories is
consistent with the denim-maker's strategy of shifting from a
manufacturing company to a marketing group in order to focus more
on design.

"As the apparel industry changed in the U.S., it became clear that
we must move away from manufacturing and focus more intensely on
marketing and products.

"To continue to be a successful global business we have to focus
our resources on product design, on the sales and marketing of
our products and on presentation," the spokesman explained.

                                   ***********

      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,
Larri-Nil Veloso 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
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Information contained herein is obtained from sources believed to
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