/raid1/www/Hosts/bankrupt/TCREUR_Public/020916.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
Monday, September 16, 2002, Vol. 3, No. 183
Headlines
* C R O A T I A *
SPLITSKA BANKA: Fitch Ups Individual Rating to 'C/D'
* F R A N C E *
ALCATEL: Launches 3G Reality Center in South East Asia
ALCATEL: Awarded Ningxia Unicom Optical Transmission Project
ALCATEL: To Provide SelTrac Train Control System in Hong Kong
FRANCE TELECOM: Government Denies Replacement of Bon
FRANCE TELECOM: Investment in NTL Proves Costly
FRANCE TELECOM: State's Funding Conforms With EU Rules
FRANCE TELECOM: Likely to Launch Roadshow for Share Offering
LVMH: Liquor Sales Lift 1st-Half Results Amid Luxury Goods Slump
* G E R M A N Y *
BANKGESELLSCHAFT BERLIN: State Narrows Bid to Two U.S. Investors
DEUTSCHE TELEKOM Division Signs Agreement With Convergent Media
FAIRCHILD DORNIER: Politicians to Help Seal Russian Investment
KIRCHMEDIA: Sale May Leave Sporting Rights Assets
MOBILCOM AG: France Telecom Abandons Bankruptcy-bound Affiliate
MOBILCOM AG: To Continue Business Despite Insolvency, Says Chair
MOBILCOM AG: Chairman Asks Chancellor to Talk to France Telecom
MOBILCOM AG: Bankruptcy Protection Could Be Next Logical Step
* I T A L Y *
BLU SPA: Wind SpA Obtains Permission to Acquire Assets
TELECOM ITALIA Acquires Pagine Utili Directories Business
* N E T H E R L A N D S *
AEGON NV: Standard & Poor's Places Ratings on CreditWatch
UNITED PAN-EUROPE: Gets Another Extension on EUR4 Billion Dues
NETIA HOLDINGS: Changes in Netia 1 Capital Base Become Effective
* S W E D E N *
ERICSSON: Issues Response to Moody's Rating Downgrade
ERICSSON: Moody's Downgrades Long-term Debt Ratings to Ba2
ERICSSON: Results Confirm Oversubscription of Rights Offering
* U N I T E D K I N G D O M *
AEGON: Mulls GBP3 BB Market Placement to Repair Battered Finances
BRITISH ENERGY: AEP Warns Repercussions of Government Bail Out
CORUS GROUP PLC: Interim Report for the Half Year to 29 June 2002
INVENSYS PLC: Division Forms Alliance With INVAP
TADPOLE TECHNOLOGY: Subsidiary Partners With RSA Security
=============
C R O A T I A
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SPLITSKA BANKA: Fitch Ups Individual Rating to 'C/D'
----------------------------------------------------
Fitch Ratings has upgraded the Individual rating of Splitska
banka (SB) from 'D' to 'C/D' as a result of the improvement in
the bank's operating profitability, risk systems, and beneficial
integration with its shareholder's other Croatian operations.
The Individual rating, however, reflects the bank's holding of
illiquid, long-term government bonds and its large exposure in
the Splitska, a region heavily dependent on tourism. Fitch also
noted that corporate lending opportunities in Croatia remains
limited and is continually narrowed by competition.
The bank's Long-term and Short-term ratings were affirmed at
'BBB-' ('BBB minus') and 'F3' respectively. The '3' Support
rating remains unchanged. The rating reflects the potential
support of its controlling shareholder, Bayerische Hypound
Vereinsbank, which is rated 'A+'.
Splitska has strong retail loan growth over the past two years.
As of February of 2001, Splitska Banka has total assets of about
EUR 1.3 billion and a market share of 7%, making it the third-
largest Croatian financial institution. It is a universal bank
serving corporate and retail customers. The bank has about 1,000
employees in some 70 branches, most of which are located in the
Dalmatian region.
Established in 1965, Splitska Banka has been restructured over
the past two years. Preliminary figures for 2001 show the bank's
net income before taxes at EUR 20.8 million.
Splitska banka was under rehabilitation between early 1996 and
2001, when the majority of its shares were sold to Unicredito
Italiano.
Bank Austria Creditanstalt acquired Unicredito Italiano's 62.6%
stake in Splitska when it sold the bank in order to acquire
Zagrebacka, the country's largest bank.
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F R A N C E
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ALCATEL: Launches 3G Reality Center in South East Asia
------------------------------------------------------
3G Reality Centre in Kuala Lumpur offers an open ecosystem for
the development and testing of next generation mobile
applications
Alcatel (Paris: CGEP.PA and NYSE: ALA), the world's largest
telecom infrastructure vendor, today launched its 3G Reality
Centre in Kuala Lumpur - the first comprehensive, live, end-to-
end environment for the development and testing of advanced
mobile applications and data services in the fields of 2.5G/GPRS
and 3G/UMTS in South East Asia. This builds on the first
operational end-to-end 3G infrastructure in Malaysia - set up by
Alcatel - in August, and leverages on Alcatel's worldwide 3G
Reality Centre programme.
By partnering with local content and applications providers in
its Kuala Lumpur 3G Reality Centre, Alcatel will provide mobile
operators in Malaysia and the rest of South East Asia with a
window on the latest services that are being developed. This
network will be a key asset for mobile operators as they look to
develop a complete service offering and profitable business model
for next-generation mobile services.
Located at Alcatel's Kuala Lumpur office, the 3G Reality Centre
is part of Alcatel's rollout of a full network of 3G Reality
Centres across Asia Pacific. In the region, such centres are
already operational in Shanghai and Taipei, with others scheduled
for launch in Australia, South Korea and Japan. In Europe, six 3G
Reality Centres will be operational by the end of 2002, with two
already launched in the first half of the year.
By bringing together operators, applications developers and
content owners with a unique range of vertical expertise and
geographical coverage, the Kuala Lumpur 3G Reality Centre offers
partners business-enabling solutions to create value-added end-
user mobile services. Enabling such services is Alcatel's
Nextenso portal and its "3G Apps-in-a-box" software solution,
running on top of Alcatel's 3G/UMTS network infrastructure. It is
thanks to this environment that local developers will be able to
create, test and launch their applications, services and
contents.
The Kuala Lumpur Centre's strategic partners already include
Fujitsu, Alcatel's long-term 3G-infrastructure partner. It is
looking into partnering with other companies that can add value
towards the success of 3G in the country and the South East Asia
region.
"The Asia Pacific region is a real hotbed for proving the
viability of 3G mobile applications and services. Our 3G Reality
Centre in Kuala Lumpur provides the perfect opportunity for us to
partner with operators and content & applications providers, to
move up the learning curve together on how to make 3G a
profitable business," said Mr Scordidis, Vice-President Alcatel
South East Asia and Pacific Islands. "Alcatel continually looks
for ways to partner with carriers and content providers to
develop profitable business models for Asia's telecom future, and
this 3G Reality Centre initiative is part of our role in leading
3G commercial rollout in this region," he added.
"Alcatel recently conducted the first 3G multimedia call in
Malaysia, where 3G applications and services are expected to be
available in the market by 2004. This 3G Reality Centre further
highlights Alcatel's technology leadership, as well as our
commitment to helping operators around the world build and
operate cost-efficient 3G mobile networks. No other vendor can
offer a commercial solution as comprehensive and ready-for-
service as the platform we are showing in real life today," said
John Quaeyhaegens, Alcatel Malaysia Country Senior Officer.
Alcatel's 3G Reality Centre programme is a worldwide initiative
with special emphasis on 3G/UMTS in Europe and Asia. Its 3G
Reality Centres offer Alcatel and its partners, including local
content and applications providers as well as handset suppliers,
a live and comprehensive end-to-end environment for the
development, validation and testing of advanced mobile
applications and data services, in the field of 2.5G/GPRS, EDGE
and 3G/UMTS. Alcatel's 3G Reality Centre is the first of the kind
- integrating not only an infrastructure, but also a permanent
show room.
In Europe, 3G Reality Centres have already been officially
launched in Malm" (Sweden) and Cascais (Portugal). Additional
launches are planned in the coming weeks, built on existing
Alcatel 3G infrastructures in Rijswijck (The Netherlands), Paris
(France), Vimercate (Italy) or Stuttgart (Germany). Others are
scheduled for opening before year-end.
Visitors to the Kuala Lumpur Centre can personally experience 3G
communications with voice in circuit mode and data and high speed
video images in packet mode, including web browsing and file
transfer protocol (FTP), video casting, gaming, video streaming
and video on demand (VOD). All this is running on the latest
Evolium 3G equipment and solutions, leveraging Alcatel's
expertise in GSM, GPRS, and EDGE as well as in ATM and IP
technologies, with the advanced experience of Fujitsu as supplier
of NTT DoCoMo, which has had a UMTS commercial network in service
in Japan since October 2001.
About Alcatel
Alcatel designs, develops and builds innovative and competitive
communications networks, enabling carriers, service providers and
enterprises to deliver any type of content, such as voice, data
and multimedia, to any type of consumer, anywhere in the world.
Relying on its leading and comprehensive products and solutions
portfolio, stretching from end-to-end optical infrastructures,
fixed and mobile networks to broadband access, Alcatel's
customers can focus on optimizing their service offerings and
revenue streams. With sales of EURO 25 billion in 2001 and 99,000
employees, Alcatel operates in more than 130 countries.
About Alcatel's 3G Reality Centres
The 3G Reality Centre Program was created to boost the perception
that Alcatel is an active player in 3G/UMTS, allowing the market
to become aware of the most recent achievements in this field and
giving Alcatel a truly striking image in the mobile market place.
Alcatel's 3G Reality Centre program is a worldwide initiative
with special emphasis on 3G/UMTS in Europe and Asia. They offer
Alcatel and its partners, including local content and
applications providers as well as handset suppliers, a live and
comprehensive end-to-end environment for the development,
validation and testing of advanced mobile applications and data
services, in the field of 2.5G/GPRS, EDGE and 3G/UMTS. Such
centres are already operational in Shanghai (China), Taipei
(Taiwan), Vimercate (Italy), Lisbon (Portugal), Paris (France),
Malm" (Sweden), Stuttgart (Germany) and Kuala Lumpur (Malaysia).
About Alcatel's Evolium solutions
Alcatel is now the world's fastest growing GSM/GPRS supplier.
Currently, over 110 mobile operators worldwide rely on Alcatel's
Evolium GSM/GPRS core and radio solutions.
Since 1999, Alcatel has increasingly been chosen to replace
infrastructure equipment in networks, in particular 2G base
stations from other major vendors.
By creating Evolium SAS, an Alcatel-Fujitsu company, Alcatel
clearly reinforces its position in both mobile infrastructure and
mobile Internet. Evolium SAS combines Alcatel's expertise in GSM,
GPRS, and EDGE as well as in ATM and IP technologies, with the
advanced experience of Fujitsu as supplier of NTT DoCoMo. NTT
DoCoMo is the world's leading mobile communications company with
more than 40 million customers. The company provides a wide
variety of leading-edge mobile multimedia services. These include
i-modeT, the world's most popular mobile Internet service, which
provides e-mail and Internet access to over 32 million
subscribers, and FOMA, launched in 2001 as the world's first 3G
mobile service based on W-CDMA.
Alcatel's UMTS solutions are a reality today, with 20 UMTS field
trials networks in Europe and in Asia. Alcatel's strategy covers
all aspects of UMTS deployment, from radio access and core
network to terminals. Evolium SAS delivers a radio infrastructure
that is 3GPP-compliant, field-proven and capitalises on Japanese
3G technical and field experience.
Alcatel, which played a vital part in developing the mobile
Internet market, in particular through the successful roll out of
GPRS commercial networks world-wide, has today a timely UMTS
offering.
ALCATEL: Awarded Ningxia Unicom Optical Transmission Project
------------------------------------------------------------
Alcatel (Paris: CGEP.PA and NYSE: ALA), the world leader in
optical networking, announced on Thursday that Ningxia
Corporation of China Unicom (Ningxia Unicom) has selected its
Synchronous Digital Hierarchy (SDH) transmission products to
extend the operator's backbone network. With this contract
signing, Alcatel now covers three of Ningxia Unicom's four
provincial backbone networks, making it the biggest supplier to
the operator. The contract was won through Alcatel Shanghai Bell.
Under the terms of the contract, Alcatel will provide its
advanced Optical Multi-Service Node (OMSN) systems to increase
the capacity and enhance the reliability of the Ningxia Unicom
backbone network. These products will position Ningxia Unicom to
better respond to the growth in demand for telecommunications
services in China by offering easy network upgrades and seamless
expansion of their network.
The Alcatel OMSN systems can be equipped with Alcatel's
Integrated Service Adapter (ISA) boards that permit operators and
service providers to address the emerging demand for enhanced
data services such as Gigabit Ethernet. Alcatel's ISA plug-in
cards offer unique data-aware features that work as an add-on
further improving bandwidth management and providing a wide range
of multi-service capabilities - including Ethernet transport and
aggregation, Packet Ring, ATM switching and IP/MPLS routing -
where and when needed.
"This is the second time this year that Ningxia Unicom has chosen
Alcatel's solutions for its local transmission expansion," said
Jean-Marie Vansteenkiste - President of Alcatel's optical
networks activities. "This validates Ningxia Unicom's belief in
us as the best supplier with excellent after-sales service and
the most advanced products, especially in multi-service
transmission and network protection capabilities."
About Alcatel's Optical Multi-Service Nodes (OMSN)
Designed for both metro and core applications, Alcatel's Optical
Multi-Service Nodes provide world-class next-generation SDH
functionality and capacity through aggregation of broadband
multi-protocol traffic patterns. Their deployment allows
operators of optical transport networks to achieve the optimal
balance between new competitive service offerings and traditional
revenue-generating services by introducing a wide variety of data
managed services - including top-level differentiated QoS
capabilities, variable service rates and traffic congestion
management. Supporting STM-4c, STM-16c and STM-64c concatenated
payloads, OMSNs deliver integrated ATM switching, Packet Ring and
IP/MPLS routing capabilities, as well as LAN interfaces
(Ethernet, Fast Ethernet and Gigabit Ethernet) by integrating ISA
plug-in modules. Although configurable as ADMs (Add-Drop-
Multiplexers), OMSNs have full cross-connect capability thanks to
their symmetrical and scalable architecture. OMSNs are flexible
for use in all network topologies - i.e.: point-to-point, linear
chains, multiple rings, meshed networks - and ensure complete
synergistic use of hardware items across the systems, from common
parts to traffic ports. Additionally, they all have fully non-
blocking SDH matrices (HO/LO) and support all standard PDH
interfaces.
About Alcatel's ISA (Integrated Service Adapter) plug-in cards
ISA plug-in cards enable operators and service providers to cope
with current and future broadband traffic needs over transport
networks through multiple layers convergence in a single
equipment. The ISA solution extends the already-rich range of
PDH/SDH TDM interface ports available on Alcatel's OMSNs by
providing ATM switching, IP/MPLS routing, Ethernet (10, 100,
1000Mbit/s) rate-adaptive transport and transparent Gigabit
Ethernet full capabilities. The integration of data-aware
features into the SDH transport network allows carriers to
efficiently handle expanded data traffic while increasing overall
revenues. ISA cards can be adapted into new or previously
installed OMSNs as an add-on - where and when needed - that
optimizes bandwidth management and reduces both transport
infrastructure costs and time-to-market for the introduction of
new data services in the network.
About Ningxia Unicom
Ningxia Unicom, established on August 25, 1997, is the subsidiary
company of China Unicom. Ningxia Unicom is responsible for local
telecommunication development strategy, local network building
and operation, full services providing within Unicom business.
About Alcatel Shanghai Bell
Alcatel Shanghai Bell is the first foreign-invested company
limited by shares in the telecommunications sector in China, with
Alcatel holding 50%+1 shares and Chinese shareholders holding the
remainder. The multibillion-dollar telecom technology leader
delivers end-to-end telecommunications solutions and high-quality
services, covering the fixed, mobile networking, broadband
access, intelligent optical networking, multimedia solutions and
network applications. It also has a key international R&D center
with full access to Alcatel's global technology pool, developing
original technology for use in China and export to Alcatel's
customers worldwide. With 6,500 employees, an advanced
manufacturing center, and the most extensive sales and support
network in China, it is the only company capable of meeting the
global needs of Chinese customers. For more information, visit
Alcatel Shanghai Bell on the Internet at: http://www.alcatel-
sbell.com.cn
About Alcatel
According to leading telecom market research firm RHK, Alcatel
was the 2001 world leader in global optical transport -
encompassing terrestrial and submarine applications - with 17%
market share, in terrestrial optical transport with 14.2% market
share and in submarine optical transport with 41% market share,
an unprecedented achievement in the telecom industry. Alcatel's
optics business comprises optical components, optical fibers,
SDH/SONET and DWDM systems, cross-connects, microwave radio
links, network intelligence, and services for both terrestrial
and submarine applications.
Alcatel designs, develops and builds innovative and competitive
communications networks, enabling carriers, service providers and
enterprises to deliver any type of content, such as voice, data
and multimedia, to any type of consumer, anywhere in the world.
Relying on its leading and comprehensive products and solutions
portfolio, stretching from end-to-end optical infrastructures,
fixed and mobile networks to broadband access, Alcatel's
customers can focus on optimizing their service offerings and
revenue streams. With sales of Euro 25 billion in 2001 and 99,000
employees, Alcatel operates in more than 130 countries.
ALCATEL: To Provide SelTrac Train Control System in Hong Kong
-------------------------------------------------------------
Alcatel (Paris: CGEP.PA and NYSE: ALA) announces that it has been
awarded the Automatic Train Control of MTR Corporation's Penny's
Bay Line (PBL) in Hong Kong. The line will branch off the Lantau
Island airport rail line to service a new Disneyland Theme Park
at the bay. The contract value is over 12 million Euro.
PBL will be the first fully automatic operation (driver-less)
railway in Hong Kong. The 3.2 km single-track railway will
incorporate two stations, and operate two four-car trains at a
minimum headway of four minutes. The PBL is intended to provide
an enjoyable travel transition from the existing MTR network to
the Theme Park with trains and stations specially designed to
appeal to Disney's visitors.
Alcatel, through its Transport Automation Solutions division in
Canada, will deliver its proven SelTracr S40 communications-based
train control (CBTC) solution which will support PBL's 99.99%
system availability. The system provides automatic train
protection, operation and supervision, central control, and
employs spread-spectrum radio technology for data communication
between trains and wayside presenting a simpler infrastructure.
SelTrac S40 will also interface with the system controlling the
existing airport rail line allowing a seamless transition for
passengers. The solution for PBL is similar to the one being
implemented by Alcatel for the Las Vegas monorail. Revenue
service of the PBL is scheduled for 2005 to coincide with the
opening of the Disneyland park.
Walter Friesen, general manager of Alcatel's Transport Automation
Solutions activities in Canada, said, "We are keen of our
involvement in this important railway project in Hong Kong.
Alcatel has an extensive experience in rail communications
projects in Hong Kong, Asia and around the world. Alcatel's
solution will provide the technical performance and easy train
operation crucial to MRT Corporation. "
Alcatel's SelTrac CBTC systems are in commercial operation or are
being implemented on more than 500 kilometres of urban rail
transit lines world-wide. SelTrac S40 is recognized as the
leading signaling and train control system for optimized rail
traffic throughput. In Asia Pacific, SelTrac S40 controls the
Ankara metro in Turkey, Kuala Lumpur's Putra line in Malaysia,
Hong Kong's KCRC West Rail and Ma On Shan East Rail extension,
and Wuhan's LRT in China.
About MTR Corporation
The MTR Corporation Limited came into operation in 2000 and was
listed on the Stock Exchange of Hong Kong the same year to
succeed the Mass Transit Railway Corporation which was
established in 1975 as a government wholly owned statutory
corporation. The principle business is to operate mass transit
railway system..
Besides railway operations, the Corporation is also actively
involved in the development of key residential and commercial
projects above existing stations and along new line extensions as
well as many other commercial activities associated with the
railway including rental of retail and poster advertising space,
ATM banking facilities and personal telecommunication services.
It also provides consultancy services to organizations worldwide.
For further information: www.mtr.com.hk
About Alcatel
Alcatel designs, develops and builds innovative and competitive
communications networks, enabling carriers, service providers and
enterprises to deliver any type of content, such as voice, data
and multimedia, to any type of consumer, anywhere in the world.
Relying on its leading and comprehensive products and solutions
portfolio, stretching from end-to-end optical infrastructures,
fixed and mobile networks to broadband access, Alcatel's
customers can focus on optimizing their service offerings and
revenue streams. With sales of EURO 25 billion in 2001 and 99,000
employees, Alcatel operates in more than 130 countries.
About Alcatel Services
To meet today's increasing demand for customized turnkey
solutions, Alcatel's services range from business and technology
consulting, network design - integrating Alcatel and third party
equipment including operation support systems, implementation
management up to technical network operation, and maintenance
services.
Alcatel Transport Automation Solutions (TAS), part of Alcatel
Services, supplies train control, signaling, interlocking,
control center and integrated rail communications technology.
With a work force of 2,100 and sales of EURO 430 million, TAS
operates mainly in Austria, Canada, France, Germany, Portugal,
Spain, Switzerland, UK, and USA. For Urban Rail Transit operators
globally, Alcatel's offering includes SelTracr, the world's
leading communications-based train control solution, NetTrac MT
for central train management and supervision, and LockTrac, the
world's leading solid-state interlocking solution.
FRANCE TELECOM: Government Denies Replacement of Bon
----------------------------------------------------
The finance ministry has denied that Thierry Breton, head of the
French consumer electronics manufacturer Thomson Multimedia, will
replace Michael Bon as head of France Telecom, AFX reports.
Le Monde earlier reported that on Wednesday Breton has agreed to
replace Michel Bon, whose ouster has been rumored. The finance
ministry, however, denied the report the following day, and
officials from both companies also declined to confirm the issue.
According to the report, Bon would remain in the troubled company
at least until it releases its first half results. France
Telecom's board met Thursday, ahead of the release of financial
results.
The board is expected to decide whether to continue or stop
funding its German affiliate Mobilcom AG, with which it has a
28.5% stake.
France Telecom, which is 55%-owned by the French government,
struggles with US$60 billion debt.
FRANCE TELECOM: Investment in NTL Proves Costly
-----------------------------------------------
The investments of France Telecom in U.K. cable operator, NTL
Inc., turned out costly for the French state telecommunications
operator according to Les Echos.
France Telecom acquired a 10% stake in NTL for US$1 billion in
1999 hoping to benefit from the promising future of UMTS ('3G')
communications, and to have a foothold on the UK market.
But soon NTL run a mountain of debts, and in its debt
restructuring process, France Telecom received subscription
warrants for 22.5% in the future NTL UK.
France Telecom has investments in NTL's acquisition of home cable
activities from Cable & Wireless. With the deal, the French
operator increased its stake in UK's second-largest cable
operator to 25%.
France Telecom owns a majority stake in Orange mobile phone unit,
which has 12 million subscribers in the UK and 18 million in
France. It also owns a controlling stake in Equant, a provider of
voice and data services to multinational corporations. In
France, the company provides local, long-distance, and
international phone service.
NTL and its affiliates have more than 8.7 million subscribers. It
proves cable TV, as well as voice and data services over its
cable and fiber-optics network. The United States Bankruptcy
Court for the Southern District of New York has just confirmed
the company's second amended joint reorganization plan.
FRANCE TELECOM: State's Funding Conforms With EU Rules
------------------------------------------------------
The French government's funding of troubled France Telecom is
likely to coincide with EU competition and state aid rules says
Michael Tscherney, spokesman for competition commissioner Mario
Monti.
The administrative board of France Telecom, and the French state
telecommunications operator, met Thursday to discuss, among other
concerns, schemes to strengthen the company's financial position.
According to Mr. Tscherney, the interest of private investors to
the planned capital injection of the debt-laden
telecommunications operator is a sign that the move of the state
is in line with European competition rules.
According to an AFX report, the French finance ministry said that
as majority shareholder of France Telecom, owning a 55%-stake,
the government is ready to help the group in resolving its debt.
France Telecom, which has EUR70 billion of debts, has the option
of issuing rights of EUR15 billion--a move that would require the
state to put in EUR9 billion to maintain its stake at the
required minimum.
The company, whose results are soon to be released, expects
record losses in its first-half figures.
FRANCE TELECOM: Likely to Launch Roadshow for Share Offering
------------------------------------------------------------
If the board approves the rights issue of France Telecom, the
company is likely to launch a roadshow to market the EUR15
billion offer to investors, Financial Times was reported saying.
The offer is fully underwritten by ABN Amro Rothschild, BNP
Paribas, Cr,dit Agricole, Cr,dit Lyonnais, Credit Suisse First
Boston, Morgan Stanley and Soci,t, G,n,rale.
Once the 21-member board approves the rights offering, the seven
banks would cover about EUR6 billion and the French government
would put the balance of EUR9 billion to maintain its holding.
The board, which includes seven union representatives and 10
government appointees, will also decide whether to stop
supporting its German affiliate, Mobilcom. If the board decides
to abandon Mobilcom, France Telecom would convert the German
operator's EUR6 billion debts from suppliers and banks into
equity, according to the report.
According to an AFX report, the banks are likely to pressure the
French telecommunications operator to sell assets, including
Orange SA, and Equant NV.
France Telecom's shares would go to the bank, while the Orange
shares will go to vendors in exchange for debts.
LVMH: Liquor Sales Lift 1st-Half Results Amid Luxury Goods Slump
-----------------------------------------------------------------
Luxury goods company LVMH managed to come out with positive
first-half figures despite continued sluggishness in its core
fashion, perfumes and jewellery businesses.
The Times of London says the increase in net income from EUR318
million to EUR350 million during the last six months was partly
buoyed by strong sales in champagne, wine and spirits. Premium
brands, such as Dom Perignon, performed particularly well, LVMH
said.
The report says operating income at the perfumes and cosmetics
division, which includes Kenzo, Givenchy and Guerlain, fell 38
percent to EUR30 million (GBP19 million), while the jewellery and
wristwatch business, with brands such as Tag Heuer and Chaumet,
plunged to a EUR7 million loss. This was against a EUR15 million
profit last time. Income in the fashion and leather goods
division, which takes in Loewe, Celine and Christian Lacroix, was
up 3 percent.
Sagra Maceira de Rosen, an analyst at JP Morgan, told The Times
in an interview that the performance was solid, but she said she
would not change her cautious outlook for the luxury goods
sector.
But Bernard Arnault, chairman and chief executive of LVMH,
believes the first half performance is a sign that "2002 will be
an excellent year for LVMH in spite of the uncertain economic
environment."
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G E R M A N Y
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BANKGESELLSCHAFT BERLIN: State Narrows Bid to Two U.S. Investors
----------------------------------------------------------------
The Berlin government has granted two U.S. private equity
investors the right to conduct a due diligence investigation on
Bankgesellschaft Berlin AG, in preparation for their acquisition
the troubled company.
The office of Finance senator Thilo Sarrasin officially granted
the right to BGB Capital Partners, a consortium of Texas Pacific
Group and former investment banker J. Christopher Flower, and
Dallas-based Lone Star to continue evaluating the books of the
Berlin state bank.
The two were picked out from a group of bidders including buyout
specialist WL Ross & Co. and a consortium of the Sparkasse group
of municipal savings banks and Norddeutsche Landesbank.
According to a government press official, the preference for the
American bidders over the publicly-owned German banking
consortium, was a decision based on what is best for the bank and
the state.
The city-state of Berlin, which owns more than 80% of BGB after a
EUR1.7 billion(US1.66 billion) capital increase in 2001, will
decide on the winning offer by the end of the year.
The decision, however, will still be subject to parliamentary and
regulatory approval.
DEUTSCHE TELEKOM Division Signs Agreement With Convergent Media
----------------------------------------------------------------
Convergent Media Systems, the leading provider of high-quality
live and on-demand eLearning and video-based communications, and
T-Systems International GmbH, a division of Deutsche Telekom,
Europe's largest telecommunications company, have announced the
signing of a two-year agreement to jointly sell and deliver
services in their respective markets.
"We have multinational clients in the financial, pharmaceutical,
retail, automotive and manufacturing industries who have already
expressed an interest in this alliance," said Greg Browning, vice
president, Convergent Media. "These companies, like many Global
2000 organizations, know their success depends on delivering
consistent messages throughout their organizations, on getting
their products to market faster and on inspiring employees to
achieve breakthrough performance, regardless of how many land or
sea miles separate them from the CEO and the best trainer."
Under the agreement, T-Systems/Media Broadcast becomes the
preferred provider of business television, broadband streaming
media network and services in Europe and the Middle East, and
Convergent becomes the preferred provider of these networks and
services in North America and Central and South America. Both
companies agree to use the other for all applicable operation and
support services, wherever they are required in these areas.
Reciprocal services for business television include installation,
maintenance, satellite space segment, network management,
transmission management and help desk. For broadband streaming,
reciprocal services include distribution and editing of streaming
media content, server-based archiving of video, audio and data,
and hosting and dissemination of content.
In addition, the agreement allows T-Systems to offer to its
clients in Europe the Convergent content development and
distribution solutions for learning, marketing and communications
applications. These include:
-- Convergent content design and creation services for the
production of engaging programming, both live and on-
demand
-- eLearning consulting services to assure enterprise
learning
achieves business results
-- Convergent Enterprise Communications Platform, powered by
the
Convergent Integrated Content Distribution Network, which
enables distribution of high-quality enterprise content
to
multiple devices. Key components of the platform and
network
are:
-- Integrated Authoring Environment
-- Learning Management System
-- Asset Management System
-- Content Distribution Management System
The companies also have agreed upon a coordinated approach to
marketing and selling their services, with Convergent leading
efforts in North America and Central and South America, and T-
Systems leading throughout Europe and the Middle East. The
companies plan to work closely to establish consistent marketing
initiatives.
About Convergent Media Systems
Founded in 1980, Convergent Media Systems creates and delivers
high-quality video and media-rich communications and learning for
employees, customers and key constituents of Global 2000
companies and government organizations. Today we deliver more
than 3,500 hours of broadcast programming every month to millions
of viewers. We also provide networks to make broadband content
available live and on-demand to TVs, kiosks and desktops
throughout the extended enterprise. Convergent is the leading
provider of end-to-end eLearning and business communications
solutions, including curriculum design and development, digital
asset and learning management, broadcast-quality studio and
production services, network engineering, installation and
ongoing support services. For more information, visit our website
at www.convergent.com.
About T-Systems
With revenue of 13.8 billion euro in 2001, T-Systems - a division
of Deutsche Telekom Group - is Europe's second largest integrated
systems provider. By combining expertise in both information
technology and communications, it possesses the resources
necessary to create true e-business and converging solutions in
the areas of application service providing, customer relationship
management and electronic marketplaces. T-Systems currently has
approximately 42,000 employees in over 20 countries. The company
is based in Frankfurt, Germany. Further information on the
company and its service offering is available online at www.t-
systems.com.
CONTACT: Convergent Media Systems
Sr. Director of Marketing
Lucy Henner, 404/231-8313
hennerl@convergent.com
or
T-Systems International GmbH
Press and Public Relations
Stefan Konig
+49 (0) 69 665 31-126
Fax: +49 (0) 69 665 31-139
presse@t-systems.de
FAIRCHILD DORNIER: Politicians to Help Seal Russian Investment
--------------------------------------------------------------
German Chancellor Gerhard Schroeder, who is seeking re-election,
and rival candidate Edmund Stoiber have promised to pursue the
rumored deal between Fairchild Dornier and Russian aluminum
manufacturer, Basovy Element.
According to the German daily Die Welt, the two candidates plan
to approach Russian President Vladimir Putin to promote the deal.
If successfully sealed, the deal will allow the troubled aircraft
maker to keep its operations in tact. The report says Basovy
Element, which counts aircraft components among its areas of
activity, plans to seek state support should Mr. Putin becomes
involved.
The German plane-maker believes a combination with the Russian
firm will keep its 728/928 plane program on track. Through its
aircraft subsidiary, Aviakor, Basovy has enough expertise to help
finish this project.
Fairchild Dornier opened insolvency proceedings at the start of
June. Its hopes were dashed when Canadian aircraft maker
Bombardier Inc. abandoned talks on taking over its 728/928
program, which is thought to have significantly contributed to
the company's insolvency. The German company had already
invested EUR1 billion in the program and this coupled with a low
turnout on anticipated sales led to further financial woes.
Fairchild then pinned its hopes on Alenia for the 728/928
project. But Alenia later backed out of a possible deal because
it couldn't takeover the project on its own and had not found a
partner.
KIRCHMEDIA: Sale May Leave Sporting Rights Assets
-------------------------------------------------
The sale of KirchMedia could exclude its sporting rights assets,
according to the Financial Times. KirchMedia is valued at EUR2.6
billion (US$2.5 billion) including the sports assets.
According to the report, the three consortia bidding for
KirchMedia are told to exclude in their binding offers the two
largest sport rights businesses: ISPR, the rights marketing
agency for first and second-division German football games, and
the wholly owned KirchsSport. Kirchmedia proposed to sell the
assets separately.
The assets also exclude the rights to Formula 1 motor racing on
the other part of the Kirch empire.
The exclusion left the bidders with 52.5% stake in
ProSieBenSat.1, Germany's largest free-to-air TV broadcaster, and
the company's movie library.
The consortia competing for the sale are TF1, the French TV
group, partnering with Haim Saban, the US media entrepreneur;
Columbia Tristar, part of Sony, and Commerizbank; and a group of
KirchMedia shareholders.
The report also says, some of the bidders would like a two-stage
process: acquiring ProSiebenSat1 and taking over the remaining
shares in the broadcaster, and afterwards folding the movie
assets into an enlarged ProSiebenSat1.
MOBILCOM AG: France Telecom Abandons Bankruptcy-bound Affiliate
---------------------------------------------------------------
Interim first-half results of France Telecom gathered by The
Times of London early Friday morning showed the state-controlled
phone company had set aside EUR11.1 billion for cost of severing
ties with MobilCom.
Although the company has yet to make an official confirmation as
of this writing, this provision means that the French group is
indeed pulling the plug on its German mobile phone ambitions,
which also means that MobilCom will be forced to file for
bankruptcy. Only a regular cash injection by its French
shareholder has kept the German mobile phone operator afloat the
past two months.
Emerging from a four-hour supervisory meeting Thursday night,
France Telecom Chairman Michel Bon said: "I suggested to the
board of directors of France Telecom, which agreed, to put an end
to our financial support to MobilCom as well as our ambitions in
mobile (phones) in Germany."
He also told reporters that he had tendered his resignation to
the board. Four other directors were reported to have offered to
resign in a show of support, The Times said.
Mr. Bon's job as chairman had long been in peril as France
Telecom grappled with spiraling debts, a plunging credit rating
and 95 percent fall in value over the past two years, the report
said. The company said a successor will be announced within
weeks.
MOBILCOM AG: To Continue Business Despite Insolvency, Says Chair
----------------------------------------------------------------
MobilCom Chairman Thorsten Grenz admits the company must file for
insolvency, but this doesn't mean that it will fold up the
business.
In an interview with AFX News late last week, Mr. Grenz said he
will present to the supervisory board on Tuesday a new savings
plan that will allow the company to post a profit from core
operations by first half next year. He did not rule out job
cuts.
MobilCom incurred operating losses of EUR70 million in the second
quarter of 2002, compared with a loss of only EUR21.5 million in
the first quarter. Last year, the company had earnings of EUR3.7
million in the second quarter.
MOBILCOM AG: Chairman Asks Chancellor to Talk to France Telecom
---------------------------------------------------------------
With unemployment a central issue in this year's election in
Germany, the French and German governments are reportedly in
talks to discuss the recent move by France Telecom to sever ties
with MobilCom.
AFX News sources could not be certain whether the German
government will seek reconsideration of France Telecom's
decision, but they claim that MobilCom had asked Chancellor
Gerhard Schroeder to intervene.
The Chancellor is seeking re-election and had promised during his
last campaign to reverse the unemployment rate in Germany.
Unfortunately, this promise has yet to be realized and MobilCom's
imminent insolvency threatens to add another 5,000 into the ranks
of unemployed Germans.
German daily Handelsblatt last week said MobilCom Chairman
Thorsten Grenz has sought Mr. Schroeder's intervention,
apparently to talk the French government out of its support on
France Telecom's withdrawal of financial aid. The government
controls 55% of France Telecom.
An unnamed German government spokesman confirmed to Handelsblatt
that talks are indeed taking place between the two governments,
but added that Mr. Schroeder is not involved at this stage.
MOBILCOM AG: Bankruptcy Protection Could Be Next Logical Step
-------------------------------------------------------------
The threat of bankruptcy is now a reality for MobilCom following
France Telecom's withdrawal of financial support late last week.
The German company, which until Friday last week had been hoping
against hope that its 28.5% French shareholder won't abandon the
sinking ship, has warned that it will be forced to seek
protection and sue France Telecom if it stops funding the
business.
Burdened by its own burgeoning debt that's nearing EUR70 billion,
France Telecom's board decided to cut its exposure in the
bleeding affiliate and set aside EUR11 billion to effect the
severance.
According to a Bloomberg report, MobilCom employs 5,000 workers
and needs as much as EUR40 million a month to stay in business.
Some quarters believe France Telecom's investment in the business
was bound to fail from the start.
"The problem is France Telecom didn't have the capacity to
develop this business," Johnny de Buysscher, who helps oversee
about EUR3 billion (US$3 billion) in fixed-income assets at
Petercam Asset Management, told Bloomberg in an interview. "They
invested a lot, but much more would have been needed to make it
work."
The Buedelsdorf, Germany-based operator is now valued at EUR118
million, way below its worth of EUR13 billion when France Telecom
bought its stake for 201 euros a share in March 2000.
The French phone giant acquired the stake to take on Deutsche
Telekom AG after MobilCom severed its ties with the former German
partner in 1999.
=========
I T A L Y
=========
BLU SPA: Wind SpA Obtains Permission to Acquire Assets
------------------------------------------------------
The European Union Commission has permitted Wind SpA to buy parts
of Italian mobile operator Blu, according to Dow Jones.
The sale of the parts of the company was granted after EU
Commissioner Mario Monti accepted that there was "no suitable
purchaser" for the entire company.
The wind-up was part of the agreement obtained by the wireless
arm of Italy's incumbent carrier, Telecom Italia Mobile, to
acquire Blu's assets and split them up among wireless rivals
including Wind, Omnitel, and the wireless operations of Hutchison
Whampoa.
Wind, the joint venture of Enel and France Telecom, will acquire
Blu's 1.9 million client base, the brand, and a part of its
network according to the report.
Early in the month, Telecom italia Mobile SpA CEO Marco DE
Beneditti said TIM is buying Blu's accumulated losses of EUR800
million. The CEO said it is not yet clear how TIM would use the
losses for offsetting against its own taxable income.
In an August issue of TCR-Europe, it was reported that assets of
the troubled mobile phone operator were finally broken up among
rivals, resulting in the shut down of the company.
Telecom Italia Mobile said it offered at least EUR18 million
(GBP11 million) for Blu's shares and some of its assets.
The European Commission decided to permit shareholders to split
up Blu after the company failed to look for a concrete buyer for
the company.
It is said that British Telecom, which owns a 29% stake in Blu,
has since invested about GBP250 million to GBP3 million in Blu
over the past three years.
TELECOM ITALIA Acquires Pagine Utili Directories Business
---------------------------------------------------------
Telecom Italia today reached agreement with Pagine Italia SpA for
the acquisition of the Pagine Utili directories unit, the
flagship business that includes pagine tascabili ("Pocket Pages")
with 60,000 advertisers.
The deal involves no cash expenditure but a payment to Pagine
Italia of 214.286 million SEAT ordinary shares held by Telecom
Italia, corresponding to 1.9% of company stock.
Forecast to register 2002 revenues of 57 million euros and a
gross operating result of approximately 9 million euros, this
business is being transferred debt-free, with working capital of
zero and a staff of approximately 150.
In the now wholly liberalized Italian directories market, in
which complete and updated databases of fixed-line telephony
subscribers are available free of charge to all carriers, this
deal is of great significance as it equips the Telecom Italia
Group with considerable technological and marketing know-how that
will enable the company to strengthen its range of products. Once
the formalities of the operation are completed, work will begin
on the terms and conditions of merging the acquired business with
Seat Pagine Gialle to produce the greatest possible value,
following the model adopted in Great Britain with subsidiary
company Thomson Directories.
Completion of this operation is subject to approval by the
Italian Antitrust Authority.
=====================
N E T H E R L A N D S
=====================
AEGON NV: Standard & Poor's Places Ratings on CreditWatch
---------------------------------------------------------
Standard & Poor's commented on AEGON N.V.'s (AA-/Watch Neg/A-1+)
Sept. 11, 2002, announcement that it is in discussions with its
major shareholder, Vereniging AEGON, about a financial
restructuring that might result in a realignment of the latter's
interest in AEGON.
Standard & Poor's had placed its ratings on AEGON and its
subsidiaries on CreditWatch with negative implications on July
22, 2002, after AEGON revised its earnings expectations for the
remainder of the year. Since then, Standard & Poor's has had
ongoing discussions with AEGON. AEGON's announcement yesterday is
entirely consistent with those discussions. When there is a
further announcement by AEGON on the final restructuring plan,
Standard & Poor's expects to resolve the CreditWatch status of
the ratings.
CONTACT: STANDARD & POOR'S
Thomas Upton, New York, 212/438-7249
Rob Jones, London, (44) 20-7847-7041
UNITED PAN-EUROPE: Gets Another Extension on EUR4 Billion Dues
--------------------------------------------------------------
Troubled United Pan-Europe has secured another extension for its
obligations, putting off its looming default for a few more days,
Bloomberg said late last week.
Citing the company's latest disclosure to the U.S. Securities and
Exchange Commission, Bloomberg said banks may not declare the
Dutch cable-TV operator in default of its EUR4 billion loan until
September 23.
Controlled by American cable magnate John Malone, the company is
now in talks with lenders and parent UnitedGlobalCom Inc. for a
longer extension. In July, it successfully reached agreement
with bondholders to convert about US$5.4 billion of debt into
equity.
The Dutch firm has bank loans of more than US$9 billion. Bank of
America Corp., BNP Paribas SA, Canadian Imperial Bank of
Commerce, J.P. Morgan Chase & Co., Royal Bank of Scotland Group
Plc and Toronto-Dominion Bank helped arranged this credit in
2000, Bloomberg said.
The company's failure to pay these loans early this year has
forced it to seek several waivers from banks beginning March. The
terms of the recent waiver are the same as that set in March, UPC
said in its SEC disclosure.
Before this latest extension, the company in July secured a
waiver not to make interest payments under its outstanding Senior
Notes until September 12, 2002. As part of this waiver, the
company did not pay EUR124 million due on August 1, 2002 on its
outstanding 10 7/8% Senior Notes due 2009, 11 1/4% Senior Notes
due 2010 and 11 1/2% Senior Notes due 2010.
United Pan-Europe Communications N.V. is one of the leading
broadband communications and entertainment companies in Europe.
Through its broadband networks, UPC provides television, Internet
access, telephony and programming services.
UPC's shares are traded on Euronext Amsterdam Exchange (UPC) and
in the United States on the Over The Counter Bulletin Board
(UPCOY).
Contact Information:
Claire Appleby
Director of Investor Relations
+ 44 (0) 207 647 8233
Email: ir@upccorp.com
===========
P O L A N D
===========
ELEKTRIM: Announces Termination Restructuring Agreement
-------------------------------------------------------
On 12 September 2002, Elektrim S.A. was officially notified of
the termination of certain obligations of Elliott Associates L.P.
and Merrill Lynch International under the Restructuring
Agreement, dated July 28, 2002, entered into by Elektrim S.A.
with the holders representing approximately Euro 233 million of
the aggregate principal amount of Elektrim's 3.75% Euro-Linked
Exchangeable Bonds due 2004 of Elektrim Finance B.V. irrevocably
and unconditionally guaranteed by Elektrim S.A.
The termination releases the above bondholders from the
obligation to forbear from enforcing or directing the enforcement
of their rights and from refraining from commencing, recommencing
or soliciting the commencement of bankruptcy proceedings against
Elektrim S.A.
NETIA HOLDINGS: Changes in Netia 1 Capital Base Become Effective
----------------------------------------------------------------
Netia Holdings S.A. (Nasdaq: NTIAQ/NTIDQ, WSE: NET), Poland's
largest alternative provider of fixed-line telecommunications
services on Thursday announced that changes in the capital base
of the Netia 1 consortium, a subsidiary of the Company offering
domestic long-distance services throughout Poland, became
effective.
In accordance with the provisions of the new Polish
Telecommunications Act effective as of January 1, 2001,
abolishing the foreign ownership restrictions on
telecommunications operators in Poland, and pursuant to the Netia
1 consortium agreement, dated November 22, 1999, and the
agreement between the Company and Warsaw electricity provider
Stoen S.A. dated July 2, 2002, Stoen S.A. has acquired 133,233
existing shares of Netia Holdings S.A. in exchange for 87,332
shares in Netia 1.
As a result of the transaction, the Netia group companies jointly
own an 89% stake in Netia 1. The remaining 11% stake is owned by
Telia AB.
CONTACT: Netia, Warsaw
Anna Kuchnio (IR), +48-22-330-2061
Jolanta Ciesielska (Media), +48-22-330-2407
or
Taylor Rafferty, London
Alexandra Jones, +44-(0)20-7936-0400
or
Taylor Rafferty, New York
Jeff Zelkowitz, 212/889-4350
===========
S W E D E N
===========
LM ERICSSON: Issues Response to Moody's Rating Downgrade
--------------------------------------------------------
On Thursday Moody's announced that it has downgraded the long-
term credit rating of Ericsson (NASDAQ: ERICY) from Ba1 to Ba2,
removing the Credit Watch status, but leaving the Outlook
Negative.
Our short-term rating was not under review and is not affected by
this action.
Moody's decision primarily reflects their view of the wireless
infrastructure market. We reiterate our view that in the short-
term the market is indeed characterized by great uncertainty and
the third quarter development so far does not indicate any
improvement, but we remain firmly optimistic in the longer
perspective.
Considering the success of our rights offering, Moody's decision
was unexpected. We believe we have sufficient liquidity to carry
us through this uncertain market situation. Our cost cutting
actions remain on track for returning to profit sometime next
year. The incremental financial impact of Moody's decision
amounts to an increase in financing costs of approximately SEK 55
million annually.
Regarding Moody's comment on additional cash calls, SEK 2.3 b. of
customer credits have been put back on our balance sheet and we
are discussing the other put arrangements. As a consequence of
the LEAP and Quam announcements our credit commitments will be
reduced. We believe Sony Ericsson has sufficient liquidity and we
do not anticipate the need for a capital injection in the near
term to fund their operations.
Ericsson is shaping the future of Mobile and Broadband Internet
communication through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication
companies in the world.
Read more at www.ericsson.com/press
CONTACT: ERICSSON
Media:
Henry Stenson, +46 702 22 77 44
E-mail: henry.stenson@lme.ericsson.se
or
Investors:
Gary Pinkham, +46 8 719 0858 or +46 730 371 371
E-mail: investor.relations@ericsson.com
ERICSSON: Moody's Downgrades Long-term Debt Ratings to Ba2
---------------------------------------------------------
Moody's Investors Service downgraded the long-term debt ratings
of Telefonaktiebolaget LM Ericsson (Ericsson) from Ba1 to Ba2,
with a Ba2 senior implied rating.
The rating downgraded is Euro Medium-Term Notes: the US$600
million revolving credit and the issuer rating.
The downgrade was due to a weak market for telecommunications
equipment. Several wireless operators announced withdrawal or
scale back from investment plans in 3rd generation (3G) wireless
infrastructure.
According to Moody's, the decision dims the outlook for "a near
term stabilization in Ericsson's orders, and to a lesser extent
the increased probability of additional capital contributions to
SonyEricsson, and the deterioration of Ericsson's receivables
portfolio."
The negative outlook "reflects continued low visibility of the
shrinking order patterns by the telecom carriers and execution
challenges for Ericsson's cost saving strategy."
Moody's excluded the Not-Prime rating for the company's short
term debt, and confirmed it as follows:
- Ericsson Treasury Services AB: guaranteed US and Euro
commercial paper.
- Ericsson Treasury Services U.S. Inc.: guaranteed US commercial
paper.
Ericsson recorded its first annual loss in 2001 of 21.3 billion
kronor and has started a restructuring package that will bring
total employment below 60,000 by 2003, from 107,000 last year.
ERICSSON: Results Confirm Oversubscription of Rights Offering
-------------------------------------------------------------
Ericsson (NASDAQ: ERICY) announced that the final results for the
rights offering show that 7,882,418,914 B shares, or 99.7 percent
of the new B shares offered, were subscribed for by the exercise
of rights.
Including the demand for shares on a non-preferential basis, the
offering was oversubscribed by approximately 37 percent. These
subscription levels are slightly higher than the preliminary
results announced on September 6, 2002. Gross proceeds in the
rights offering will amount to SEK 30.1 billion.
26,335,197 unsubscribed B shares, representing 0.3 percent of the
total rights offering, will be allocated to those who subscribed
for such shares in accordance with the procedures as described in
the rights offering prospectus.
The rights offering increases the number of series B shares by
7,908,754,111 and the share capital by SEK 7,908,754,111.
Following the rights offering the share capital amounts to SEK
15,974,258,678 and the number of shares to 15,974,258,678 of
which 656,218,640 are series A shares and 15,318,040,038 are
series B shares.
The rights offering is expected to be concluded according to the
following timetable:
September 13 No trading in BTA's or new B shares
September 16 Trading in new B shares and ADSs commences. Mailing
of payment notice for new B shares allocated pursuant to
subscriptions without preferential rights
September 19 Delivery of new B shares and ADSs to shareholders'
accounts (subscribed for by exercising rights). Payment for new B
shares allocated pursuant to subscriptions without preferential
rights. The shares will be delivered to shareholders' VP-accounts
as soon as practicable following payment.
Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication
companies in the world.
CONTACT: Ericsson
Investors:
Glenn Sapadin, 212/685-4030
investor.relations@ericsson.com
or
Media:
Kathy Egan, 212/685-4030
pressrelations@ericsson.com
===========================
U N I T E D K I N G D O M
===========================
AEGON: Mulls GBP3 BB Market Placement to Repair Battered Finances
-----------------------------------------------------------------
Beleaguered Dutch insurer Aegon is reportedly carving up a huge
cash call that could top GBP3 billion, The Guardian said last
week.
The paper said the company is seriously considering placing some
shares in the market to shore up its finances that have been
badly battered by a spate of accounting scandals in the United
States. This move, if carried out, follows its first-ever profit
warning in July.
Two-thirds of Aegon's business is in the United States, where
over the past year it has lost US$300 million on investments in
Enron bonds and a further US$200 million on WorldCom. Its
exposure to September 11 was relatively small at US$50 million,
but the market jitters caused by the terrorist attacks has hit
its balance sheet, The Guardian said. In August, the company
reported an 83% slide in second quarter profits from GBP533
million in 2001 to just GBP92 million this year.
The report says Aegon's board is now working on getting the
approval of its controlling shareholder, Vereniging Aegon, which
speaks for 50% of the votes in the company even though it holds
only 37% of the common shares. City dealers interviewed by The
Times of London recently said the market would struggle to digest
much more than 10 percent of Aegon, equivalent to about GBP2
billion of shares.
But getting the nod of Vereniging Aegon may be difficult to
achieve. For one this shareholder, a specially created
association similar to a UK trust, might not want its
shareholding diluted. For much of the past decade, Aegon has
sought to expand through acquisitions abroad, adding brands such
as Britain's Scottish Equitable and America's Transamerica and
Providian, to its portfolio of financial services companies.
Many of these acquisitions have been paid for in shares, forcing
the trust to buy up extra stock in the open market in order to
avoid dilution, The Times said.
The trust, which presently owns 37 percent of Aegon's outstanding
shares, has funded much of this share buying through borrowings.
The borrowings themselves are typically secured against the
dividends that the trust receives from its shareholdings, The
Times said.
Trustees, however, of the association are said to be increasingly
concerned at its exposure to Aegon, whose shares have collapsed
in the recent stock market rout. There is also concern at the
size of the trust's borrowings, which have ballooned to more than
EUR3.5 billion (GBP2.2 billion).
Senior managers within Aegon also share similar concerns about
the association's exposure. They point out that Aegon is not in
a position to cut its dividend to raise extra cash, because the
association is so heavily reliant on it to finance its own
borrowings, The Times said.
Vereniging Aegon was created in 1978 when Ago, a mutual insurance
company, opted to turn itself into a for-profits institution.
Instead of handing windfalls to its member policyholders, the
company decided to pay shares into a specially created
association or trust, Vereniging Ago.
In 1983 the demutualised company merged with Ennia, a rival
insurer listed on the Dutch stock market, to form Aegon. Under
the terms of the deal, the trust, which dutifully changed its
name to Vereniging Aegon, received 49 percent of the enlarged
company's equity. According to the trust's charter, the
institution is charged with looking after the interests of
Aegon's policyholders and employees.
BRITISH ENERGY: AEP Warns Repercussions of Government Bail Out
--------------------------------------------------------------
The government's effort to bail out British Energy could have
"serious repercussions" for future investments in the UK energy
sector says American Electric Power Co Inc, owner of two of the
UK's largest power station.
The UK government recently provided the nuclear power generator
GBP410 million emergency fund in order to allow the company to
draft longer-term plans to stave off a collapse.
According to a Financial Times report, AEP fears that the help
would prevent a much-needed reduction in UK power station over-
capacity.
In a letter to the government's energy minister, Stuart Staley,
UK managing director of AEP, told the minister that a solution to
British Energy's problem should apply to all generators.
AEP shares British Energy's financial woes brought down by a 40%
fall in wholesale prices since 1998. It is understood that AEP
is currently selling its two plants which are acquired last year
for GBP650 million.
Mr. Staley holds that "Any government decision to grant
concessions to a private company would therefore have a direct
distortionary impact on the market by forcing competing plant to
withdraw from the market."
He added that "arbitrary change in favour of a competitor
decreases confidence in such market."
He also warns that the ultimate impact of the repercussions would
eventually be passed on to customers.
CORUS GROUP PLC: Interim Report for the Half Year to 29 June 2002
-----------------------------------------------------------------
This Interim Report sets out the results for the six months to 29
June 2002 and, unless otherwise stated, comparisons are to the
six months to 30 June 2001. Figures for the twelve months ended
29 December 2001 have been extracted from the audited accounts
which have been delivered to the Registrar of Companies and on
which the auditors have issued an unqualified report.
CHAIRMAN'S STATEMENT
"The half year under review saw a turning point in the decline of
carbon steel selling prices which began in 2001. This decline was
due to weak economic conditions across our major markets in
Europe and North America exacerbated by over-production. However,
production cutbacks in Europe gathered pace during early-2002 as
producers addressed the problem of over-supply, a situation which
had been encouraged by the threat of tariffs from the United
States Government and, ultimately, their introduction at levels
of up to 30% on imported steel.
Against this background the second quarter saw some modest
recovery in European selling prices, although for flat products
these increases only partially mitigated the impact of the
continuing price falls seen during the first quarter. Despite
these challenging market conditions and blast furnace disruptions
which occurred during the first half, progress continued to be
made in improving the operational performance and efficiency of
the Group's carbon steel business.
In aluminium, demand for rolled and extruded products improved in
most world markets during the first half of the year after a
sharp fall in the final quarter of 2001. In terms of primary
aluminium, increasing over-supply was reflected in higher LME
stocks and led to lower average metal prices during the first
half of 2002.
In these difficult market conditions, the Group incurred an
operating loss of (pound)207m for the half-year to 29 June and
the loss after tax and minority interests amounted to
(pound)237m. Net debt amounted to (pound)1,680m at 29 June giving
a gearing ratio to net tangible assets of some 59%.
In the light of the results, and as already stated, the Board has
decided that no interim dividend will be paid. A decision on the
recommendation for a final dividend will be taken in March next
year.
Since the end of the half year, steel selling prices in Europe
have continued to improve despite the general uncertainty as to
the strength of the expected global economic recovery, reflecting
a combination of cutbacks in production, some rebuilding of steel
stocks by customers and a modest improvement in consumption
levels. Additional price increases are expected in Europe during
the rest of 2002.
As to the future, the pace and timing of economic recovery across
major markets remains uncertain, not least the strength of the
manufacturing sector in Europe and particularly in the UK.
Further price developments will be dependent on these factors.
Two significant disposals have been announced by Corus during
2002. In March, we commenced the process to sell the Group's
aluminium interests. The first step was announced in August when
Corus reached agreement with Alcan to sell its entire 20%
interest in the Aluminerie Alouette smelter in Canada. The sale
is expected to be completed later this month for a cash
consideration of some (pound)108m. It is anticipated that
agreement will be reached on the divestment of our remaining
aluminium assets by the end of this year.
CHAIRMAN'S STATEMENT, continued
The sale to Outokumpu of our stainless steel interests, a 23.2%
stake in AvestaPolarit, was announced on 1 July 2002 and cash
proceeds of around (pound)356m were received in mid-August.
The disposal of our stainless steel interests and the continuing
process to sell our aluminium assets reaffirms the Corus strategy
of focusing the Group around a strong carbon steel core
operation. It was in this context that the Boards of Corus and
CSN announced on 17 July that they had reached agreement in
principle to merge the two companies, providing the opportunity
to capitalise on the complementary strengths of both Groups."
REVIEW OF THE PERIOD
Summary
The Group operating loss for the half year, including exceptional
items, amounted to GBP207m (2001: GBP200m) and was dominated by
losses in carbon steel of GBP228m (2001: GBP239m). Group turnover
was GBP3,576m (2001: GBP4,040m) and operating costs totalled
GBP3,783m (2001: GBP4,240m). Exceptional items for the first half
amounted to a net credit of GBP45m (2001: a net charge of
GBP47m), which mainly related to the release of surplus
provisions following renegotiation and reappraisal of obligations
for environmental and contractual liabilities for site closures,
and for manpower productivity and restructuring programmes
previously announced. Comparisons are also affected by the impact
of discontinued operations (stainless steel) and these and other
factors are discussed below (`Carbon steel', `Aluminium' and
`Discontinued operations').
Carbon steel
Following the sharp slowdown in global economic growth during
2001, there was some recovery in major markets during the first
half year. In our major European market, growth was mainly driven
by higher exports with domestic demand generally weak.
Turnover for the first half totalled GBP3,076m (2001: GBP3,408m)
and included reduced levels of turnover through distribution and
further processing of GBP602m (2001: GBP772m), and of other
turnover of GBP113m (2001: GBP121m). Carbon steel product
turnover amounted to GBP2,361m and was 6% below the level of 2001
(GBP2,515m). This reflected the combined effects of a 3% fall in
sales volume and lower average revenue, which also fell by 3%.
Carbon steel operating costs for the first half totalled
GBP3,304m (2001: GBP3,647m). Excluding the impact of exceptional
items, underlying costs at GBP3,349m were 7% below the level of
2001 (GBP3,600m), with the key factors influencing comparisons
being lower sales, the impact of blast furnace outages and
continuing cost and efficiency benefits.
REVIEW OF THE PERIOD, continued
Steelmaking operations during the first half of the year were
affected by blast furnace outages at Port Talbot and IJmuiden.
The rebuild of the No. 5 furnace at Port Talbot is progressing on
schedule and is expected to be completed in early-2003. Stock
levels were higher at Port Talbot at the end of the half year due
to third party slab purchases while the furnace is being rebuilt.
At IJmuiden the planned reline of the No. 6 furnace was
successfully completed at the end of June and site capacity is
expected to build up to an annual rate of 6.5 million tonnes by
the end of 2002. Although these outages inevitably disrupted
operations, good progress was nevertheless made in securing
further operating and efficiency improvements.
In the U.K. the major restructuring programme, announced in
February 2001, was completed in line with plan, with the closure
of the Ebbw Vale site in July. Together with other measures
implemented across UK-based businesses, there was a reduction of
some 900 jobs during the half year. The `High Performance Strip
UK' project is progressing well and it is anticipated that
benefits will accelerate during the next two years, with
aggregate benefits of some GBP150mpa by end-2004. In the
Netherlands, the `World Class IJmuiden' project has made good
progress with around 60% of targeted benefits expected to have
been secured by the end of this year, rising to its overall
target of EUR300m (approximately GBP194m) by early-2004. The
Direct Sheet Plant (`DSP') successfully met product quality
targets during the first half. The level of output from the DSP,
some 350,000 tonnes during the first half year, reflected the
adverse impact of the furnace reline at IJmuiden, but an annual
operating rate of some 1 million tonnes is anticipated by the end
of 2002. In the Netherlands, there were some 300 job reductions
effected during the first half.
Aluminium
Although European demand for rolled and extruded products
improved during the first half of 2002 as compared to the low
levels seen in the final quarter of 2001, there was a fall of
some 3.5% from the level of the first half of 2001. The
underlying LME aluminium price averaged US$1,366 in the half
year, a fall of 12% on the corresponding period in 2001, as metal
stocks increased against a background of a 4% expansion of global
capacity but only a 1% rise in consumption. Corus' aluminium
turnover of GBP500m was 9% below the level of 2001 (GBP552m) and
mainly reflected a fall of 8% in average revenue. Operating costs
totalled GBP479m and were 7% below the level of 2001 (GBP516m)
and reflected lower LME-linked material prices and the fall in
sales volume.
Discontinued operations (stainless steel)
On 22 January 2001 Avesta Sheffield, the Group's 51%-owned
stainless steel business, ceased to be a subsidiary of Corus.
From that date, AvestaPolarit became an associated undertaking
with Corus holding a 23.2% stake. On 1 July 2002, Corus announced
the sale of its stake in AvestaPolarit (see `Acquisitions and
Investments' below) and consequently the stainless steel
activities of Corus have been treated as discontinued operations
in the accounts for the half year.
REVIEW OF THE PERIOD, continued
Profit and loss account
The Group operating loss after exceptional items amounted to GBP
207m. This translated into a total operating loss of GBP188m,
after taking account of Corus' share of operating results of its
joint ventures and associated undertakings amounting to GBP19m,
of which GBP16m related to AvestaPolarit. There was a profit of
GBP18m reported on sale of fixed assets, which included some
GBP12m in respect of the ongoing insurance settlement related to
the rebuilding of the Port Talbot No. 5 blast furnace. The net
loss of GBP12m on disposals included a goodwill write-off of some
GBP15m related to AvestaPolarit. The loss before interest was
GBP182m (2001: GBP178m) and net interest payable amounted to
GBP52m, unchanged from the level of the first half of 2001. After
taking account of tax and minority interests, a net loss of
GBP237m (2001: GBP195m) was incurred.
Securitisation of trade debtors
On 15 April 2002, Corus launched a revolving period
securitisation programme under which it may offer to assign all
of its rights, title and interest in a pool of invoiced trade
debtors to a third party which is funded ultimately in the
commercial paper markets. Cash advanced against this pool takes
into account, inter alia, the risks that may be attached to the
debtors and the expected collection period. Under FRS 5
`Reporting the substance of transactions' the cash advanced has
been offset against the assigned trade debtors in a linked
presentation. Included within debtors due within one year are the
following amounts:
GBPm
Securitised gross trade debtors 315
Less non returnable proceeds (185)
------
Net securitised trade debtors 130
Other trade debtors 940
------
Total trade debtors 1,070
======
Cash flow and financing
The net cash outflow from operating activities was GBP6m, the key
feature being a net reduction in working capital of GBP101m,
which included the benefit of GBP185m from the securitisation of
trade debtors. A net cash outflow from capital expenditure and
financial investments of GBP41m included gross capital
expenditure of GBP75m and there was a net cash outflow of GBP43m
related to returns on investments and servicing of finance. After
taking account of these and other movements, net debt amounted to
GBP1,680m at 29 June 2002 and represented a gearing ratio of 59%
to net tangible assets. On 11 January 2002, the Company issued
EUR307m of 3% guaranteed unsubordinated bonds due 2007,
convertible into shares of the Company. Most of the funds from
the securitisation programme and almost all of the bond issue
proceeds, in aggregate amounting to some EUR540m (approximately
GBP348m), were used to pay down and cancel part of the Company's
EUR2,400m bank facility.
REVIEW OF THE PERIOD, continued
Employees
Employees at 29 June 2002 totalled 51,600 (52,700 at 29 December
2001). The net reduction of 1,100 included 1,200 job losses
related to previously announced efficiency measures.
Acquisitions and investments
In March 2002 Corus announced that, following a reappraisal of
its position in the global aluminium industry, it was to offer
its aluminium businesses for sale. On 16 August 2002 Corus
announced that it had agreed to sell its 20% interest in the
Aluminerie Alouette smelter to Alcan for US$165m (approximately
GBP108m) in cash, with a consideration for working capital on
completion, which is expected to be later this month. It is
anticipated that agreement will be reached on the sale of the
Group's remaining aluminium assets by the end of this year. On 1
July 2002 Corus announced the disposal of its 23.2% stake in
AvestaPolarit to Outokumpu for EUR6.55 per share in cash, plus
EUR25m in cash as consideration for the termination of the
shareholders' agreement between Corus and Outokumpu entered into
in connection with the formation of AvestaPolarit in January
2001. The total proceeds amounted to some EUR555m (approximately
GBP356m) and were applied to reduce Group debt when the
transaction was completed in mid-August.
On 17 July 2002 Corus announced that its Board and that of
Companhia Siderurgica Nacional (CSN) had reached agreement in
principle on the terms of a proposed merger of the two companies.
Under the terms of the proposed merger existing Corus
shareholders will hold 62.4% of the enlarged group. The
transaction will be structured such that existing CSN
shareholders will receive shares in a new Brazilian listed
holding company that will, in turn, hold 37.6% of the enlarged
share capital of Corus. Non-binding Heads of Agreement have been
entered into by Corus and CSN, and set out the key terms of the
proposed merger and the process envisaged for preparing and
executing definitive documentation and achieving completion,
which is expected to occur during the first quarter of 2003.
Based on a preliminary assessment, the proposed merger is
expected to generate annual EBITDA savings of approximately
US$250m by the end of the third full year of trading following
completion. The one-off cost of securing these benefits is
estimated at approximately US$300m.
Accounting Policies
The accounts for the half year have been prepared in accordance
with the accounting policies set out in the Report & Accounts for
the period to 29 December 2001, except for the adoption of the
new US accounting standards referred to in Note 10.
To see Financial Statements:
http://bankrupt.com/misc/Corus.htm
During the current period Corus has adopted SFAS 141 `Business
Combinations' and SFAS 142 `Goodwill and Other Intangible Fixed
Assets'. Under these standards goodwill is no longer amortised
(which
totalled GBP23m last year under US GAAP) but instead is assessed
for impairment each year. The standards also require that any
negative
goodwill will be immediately credited to the result.
CORUS GROUP plc
Independent Review Report to Corus Group plc
Introduction
We have been instructed by the company to review the financial
information which comprises the profit and loss account, the
balance sheet, the cash flow statement, the statement of total
recognized gains and losses and the related notes. We have read
the other information contained in the interim report and
considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained
therein, is the responsibility of, and has been approved by the
directors. The directors are responsible for preparing the
interim report in accordance with the Listing Rules of the
Financial Services
Authority which require that the accounting policies and
presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are
disclosed.
Review work performed
We conducted our review in accordance with guidance contained in
Bulletin 1999/4 issued by the Auditing Practices Board for use in
the United Kingdom. A review consists principally of making
enquiries of group management and applying analytical procedures
to the financial information and underlying financial data and,
based thereon, assessing whether the accounting policies and
presentation have been consistently applied unless otherwise
disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards
and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial
information.
Review conclusion
On the basis of our review we are not aware of any material
modifications that should be made to the financial information as
presented for the six months ended 29 June 2002.
Notes:
(a) The maintenance and integrity of the Corus Group plc website
is the responsibility of the directors; the work carried
out
by the auditors does not involve consideration of these
matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to
the
interim report since it was initially presented on the
website.
(b) Legislation in the United Kingdom governing the preparation
and dissemination of financial information may differ
from
legislation in other jurisdictions.
CONTACT: Burson-Marsteller, New York
Mark E. Bonacci, 212/614-4124
Fax: 212/598-5377
mark_bonacci@nyc.bm.com
INVENSYS PLC: Division Forms Alliance With INVAP
------------------------------------------------
Invensys Production Management, a world-leader in resource
productivity and a division of Invensys plc, has formed an
alliance with INVAP, S.E. of Argentina, a leading supplier of
turn-key nuclear research reactors. The two companies will
provide a deep base of nuclear systems engineering resources and
products that will support an expected increase in demand for
digital upgrades and control retrofit programs in the nuclear
power sector.
The announcement was made at the Invensys Showcase(TM) Worldwide
User Conference & Expo which is expected to draw an anticipated
2,000 customers from industrial companies worldwide.
"We have made a significant investment in our I/A Series System
and Triconex product lines to meet the unique needs of our
Nuclear customers and our alliance with INVAP significantly
enhances the services and project execution capabilities we can
provide," said Leo Quinn, chief operating officer, Invensys
Production Management.
"Our alliance brings together the best control technology
available and top-notch, complex systems integration skills that
will help our customers operate safer and more competitive
plants," said Hector Otheguy, INVAP chief executive officer.
INVAP, headquartered in Bariloche, Argentina, is an experienced
supplier of research reactors. The control requirements for their
most recent project for ANSTO, an Australian nuclear research
reactor, was fulfilled with an all-Invensys solution featuring a
combination of I/A and Triconex systems covering the protection
systems, reactor control and monitoring.
"Our customer-supplier relationship on this successful project
led to discussions between us on how to extend that relationship
and this alliance is a natural extension," said Carlos Ricci,
Invensys country manager for Argentina.
Invensys has an installed base of control systems in more than
130 nuclear power generation plants. Customers are using the I/A
Series System, the first open control system when it was
introduced in 1987 and now still a leader in technology and
reliability; and the Triconex systems, world-renowned for
providing industrial safety and critical control applications.
Last year Triconex received a Safety Evaluation Report (SER) from
the U.S. Nuclear Regulatory Commission for 1E applications of its
TRICON TMR product.
Invensys is currently supplying the control systems for the
Lungmen advanced nuclear reactor technology in Taiwan. "We are
extremely proud of our sustained, 25 years of support to nuclear
customers with our Spec-200 product line," said Tracy Sledge,
vice president and general manager, Triconex. "Offering qualified
commercial products for use in 1E applications demonstrates our
continued commitment to this important sector of the power
generation industry."
For more information on Invensys, please visit www.invensys.com.
ABOUT INVAP
INVAP, a technology development company headquartered in
Bariloche, Argentina, is one of the world's leading suppliers of
turn-key nuclear research reactors and other nuclear facilities.
It is the only company in Latin America that develops complete
remote sensing space missions that meet NASA standards. INVAP
also deals with nuclear medicine equipment, plus customer
designed equipment and services for oil and gas, and industrial
applications.
INVAP works in integrated teams with its clients to design and
build advanced, custom-made products and facilities, which comply
with the highest standards of safety, reliability and
availability required in the nuclear, aerospace, medical and
product industries. INVAP leads projects worldwide, with offices
and subsidiaries in Argentina, Australia, Brazil, Egypt and the
United States. For additional information go to: www.invap.net
CONTACT: Invensys
Mark Root, +703-234-6548
mark.root@iss.Invensys.com
TADPOLE TECHNOLOGY: Subsidiary Partners With RSA Security
---------------------------------------------------------
Secure Web collaboration software leader Endeavors Technology
Inc. on Thursday announced a technology sharing and marketing
agreement with RSA Security Inc., the most trusted name in e-
security(R).
This strategic partnership is aimed at extending the security and
improving the performance of the standard SSL security protocol
used by every e-based desktop, laptop and server.
Under the terms of the agreement, RSA Security's trusted security
tools are embedded into Endeavors Technology's award-winning Magi
Enterprise software product. The combined solution enables IT
managers and users to simply extend security and encryption to
every Magi-enabled device for the direct device-to-device sharing
and interaction of corporate data and workflow between workgroups
within and beyond the enterprise.
Secure collaboration between desktops and corporate systems calls
for enterprises to build complex and costly network
infrastructures. This combination of technologies from the two
companies eliminates both overheads, and also the need for
specific security tools for each desktop application such as
Microsoft Project. With Magi's secure RSA Security-based peer
environment, collaboration can now be rapidly, easily and
securely extended across all devices and company firewalls, and
workgroups can interact with colleagues, partners and clients
without concern in compromising corporate information. This
brings true Internet scaling to corporations needing to interact
highly securely with strong encryption and authentication across
firewalls.
"In these challenging times, there can be no compromise in
safeguarding corporate data and knowledge," said Bernard Hulme,
chairman and CEO of Endeavors Technology. "Embedding RSA Security
encryption software into Magi products provides IT managers with
added assurance, speed and cost savings, and a proven security
net to accelerate the deployment of business-centric peer-to-peer
computing"
Endeavors Technology joins the RSA Secured(R) Partner Program.
The program is designed to ensure complete interoperability
between partner products and RSA Security's solutions including
RSA SecurID(R) two-factor authentication, RSA ClearTrust(R) Web
access management, RSA BSAFE(R) encryption and RSA Keon(R)
digital certificate management.
The strategic partnership paves the way for Magi Enterprise to
bear the RSA Secured brand on product packaging and advertising,
be listed in RSA Secured Partner Solutions directories, and have
RSA Security's out-of-the-box, certified interoperability. It
will also lead to joint marketing and promotional activities
between the two firms, mutual field sales engagement
opportunities on joint accounts, and 24x7 worldwide business
continuity support.
"Endeavors Technology is taking a leadership role by providing
the highest-level of security in its enterprise products and
streamlining the deployment process for IT managers," said Stuart
Cohen, director of partner development at RSA Security. "By
combining our products, enterprise customers have a solution that
provides encryption and authentication across firewalls."
About Magi
Magi Enterprise 3.0, an award-winning Web collaboration system,
transforms today's Web into a highly secure inter- and intra-
enterprise collaboration network. For the first time, enterprises
can implement ad-hoc Virtual Private Networks for collaboration
very rapidly and affordably without disrupting existing
applications, networks or work practices. Magi Enterprise 3.0
does this by effectively transforming unsecured, "read-only" Web
networks into two-way trusted and transparent collaboration
environments, through the use of such features as cross-firewall
connections, advanced data extraction, an intuitive graphical
interface and universal name spaces generating "follow me URLs"
for mobile professionals.
About RSA Security Inc.
RSA Security Inc., the most trusted name in e-security, helps
organizations build secure, trusted foundations for e-business
through its RSA SecurID two-factor authentication, RSA ClearTrust
Web access management, RSA BSAFE encryption and RSA Keon digital
certificate management product families. With approximately one
billion RSA BSAFE-enabled applications in use worldwide, more
than 10 million RSA SecurID authentication users and almost 20
years of industry experience, RSA Security has the proven
leadership and innovative technology to address the changing
security needs of e-business and bring trust to the online
economy. RSA Security can be reached at www.rsasecurity.com.
About Endeavors Technology Inc.
Endeavors Technology Inc. is a wholly-owned subsidiary of mobile
computing and network infrastructure vendor Tadpole Technology
plc ( www.tadpole.com), which has plants and offices in Irvine
and Carlsbad (Calif.), and Cambridge, Edinburgh, and Bristol
(U.K.). For further information on Endeavors' P2P solutions, call
949/833-2800, email to p2p@endeavors.com, or visit the company's
Web site http://www.endeavors.com.
(c)2002 Endeavors Technology Inc. Magi, and Magi Enterprise are
registered trademarks of Endeavors Technology, Inc. RSA, BSAFE,
ClearTrust, Keon, SecurID, RSA Secured and The Most Trusted Name
in e-Security are registered trademarks or trademarks of RSA
Security Inc. in the United States and/or other countries. All
other products and services mentioned are trademarks of their
respective companies.
CONTACT: Endeavors Technology Inc.
Joe Anzenberger, 949/833-2800
janzenberger@endeavors.com
or
for Endeavors (U.K.)
Hugh Paterson, +44 (0)207 231 9300
hughp@patcom-media.com
or
for Endeavors (U.S.A.)
Mary Jane Reiter, 408/725-1239
mjreiter@sbcglobal.net
or
RSA Security
Tim Powers, 781/515-6212
tpowers@rsasecurity.com
************
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam,
Larri-Nil Veloso, Ma. Cristina Canson and Jean Claire Dy,
Editors.
Copyright 2002. 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 US$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 US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *