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/raid1/www/Hosts/bankrupt/TCREUR_Public/020919.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, September 19, 2002, Vol. 3, No. 186 Headlines * B E L G I U M * GIB SA: Shareholders Likely to Approve Ackermans' Offer * F R A N C E * ALCATEL: Chelan County Selects Alcatel Fiber-to-the-User Solution ALCATEL: Signs Contract With Pakistan Telecommunication Company ALCATEL: Acquires Contract With Hubei Telecom Broadband Services ALCATEL: Optronics Revises Q3 Guidance, Accelerates Restructuring ALCATEL: Alcatel Optronics Subsidiary to Trim Workforce ALCATEL: Provides Pacific Islands With First GPRS Network VIVENDI UNIVERSAL: Chief Wants to Keep U.S. Media Business VIVENDI UNIVERSAL: Telepiu Deal in Final Talks With News Corp * G E R M A N Y * ARNDT: Delays Filing of Half-Year Results Until End of September MOBILCOM: Plans 800 Job Cuts to Lessen Costs MOBILCOM: EU Wants to Review Details of Government Rescue Package MOBILCOM: Creditor Banks Set Conditions for EUR400 Million Fund MOBILCOM AG: Grooms Itself for Possible Merging * G R E E C E * OLYMPIC AIRWAYS: May Drop Australian Routes to Save Cost * I R E L A N D * ALLIED IRISH BANKS: Notification of Major Interests in Shares JEFFERSON SMURFIT: Moody's Assigns B2 to Proposed Notes Issuance * N E T H E R L A N D S * AEGON NV: Interim Dividend 2002 AEGON NV: S&P Keeps AEGON and Subsidiaries on CreditWatch * P O L A N D * ELEKTRIM: Vivendi May Buy Elektrim Telekomunikacja ELEKTRIM: Supervisory Board Installs New Team of Management NETIA HOLDINGS: Supervisory Board Appoints New President * S W I T Z E R L A N D * ZURICH FINANCIAL SERVICES: S&P Maintains Rating on CreditWatch ZURICH FINANCIAL: Confirms Heavy Discounts on Rights Offering * U N I T E D K I N G D O M * ASW HOLDINGS: KPMG Says They Are in Talks With Potential Buyer BEDE: Appoints Tokyo Electron as Distributor for Japanese Market BEDE: Announces Trading Update BIG FOOD: Appoints Kevin Loosemore as Non-Executive Director BIG FOOD: Notice of Holdings in Company BRITISH ENERGY: Cancels GBP260 MM of Undrawn Bilateral Facilities FILTRONIC: Buys in USD7.7 MM of Its 10% Senior Notes FILTRONIC: Initial Production Orders Received for Newton Aycliffe KIDSGROVE FABRICATING: Offers Business and Assets for Sale KINGFISHER: Interim Results For 26 Weeks Ended August 3 2002 MARCONI: Reunert Acquires Shares in South African Business MARCONI: Enhances Service on Portfolio Solution REGUS PLC: Quells Speculations of Bankruptcy Filing THE DESIGN COMPANY: Puts Business and Assets Up for Sale WORLDCOM INC: Wants to Reject 19 Executive Severance Agreements ============= B E L G I U M ============= GIB SA: Shareholders Likely to Approve Ackermans' Offer ------------------------------------------------------- Shareholders in GIB Group SA (B.GIB) are likely to accept the EUR41.7 per share offering of holding company Ackermans & Van Haaren NV (B.ACK), says Dow Jones. The deal, which is valued at EUR1.13 billion, includes a condition that Ackermans is allowed to purchase at least 90% of the remaining stake. GIB's investors are likely to accept the offer to hasten the liquidation of the company and to avoid a 10% Belgian liquidation tax, according to analysts. Liquidations usually take at least five to six years, locking investors cash in the period. It also entails expenses, which in GIB's case is estimated at EUR145 million. Shareholders of the retailer group are scheduled to vote on the liquidation plan by early October. In June, the investors postponed making the decision, citing delays in the complete audit of its books. Analysts see the move as a sign that the company is looking for a much better deal. During that time, GIB said it expects liquidation to begin before the end of 2002. GIB first announced its plans to liquidate at the end of April after divesting assets. The company was Belgium's leading retailer until it sold off its supermarket unit GB to France's Carrefour SA in July 2000. It also sold off four profitable divisions: Auto 5; apparel store, Inno; stationary shop Club and do-it-yourself unit Brico Belgium. The only major remaining asset of GIB is its 58% stake in hamburger chain Quick Restaurants. GIB's business is worth EUR1.13 billion as of the present time. On the other hand, there are also speculations that shareholders would not sell due to the low price of the offer. GIB's principal shareholder is Cobepa SA, which owns about 30% interest in the company. CONTACT: GIB SA Avenue des Olympiades 20 B-1140 Brussels, Belgium Phone: +32-(0)2-729-21-11 Fax: +32-(0)2-729-18-18 Home Page: http://www.gib.be =========== F R A N C E =========== ALCATEL: Chelan County Selects Alcatel Fiber-to-the-User Solution ----------------------------------------------------------------- Alcatel (http://www.alcatel.com),the worldwide leader in broadband access solutions, and Chelan County Public Utility District reached a multi-million dollar agreement to deploy the Alcatel 7340 Fiber-to-the-User (FTTU) solution for a new high- speed optical network in Chelan County, Washington. With the Alcatel 7340 FTTU, Chelan County Public Utility District will deliver world-class voice, video and high-speed data services to their customers via independent service providers. The Alcatel FTTU solution, using standards-based Broadband Passive Optical Networking (BPON) technology, supports the triple play of services common today as well as emerging high-bandwidth services such as on-line gaming, music downloads, video-on-demand and high definition television. Multiple lines of toll-quality voice services are delivered over a single connection via leading technology from General Bandwidth Inc. General Bandwidth's G6r packet telephony platform is part of Alcatel's complete solution for voice, video and data delivery. This agreement with Chelan is one of several wins for the Alcatel 7340 FTTU, demonstrating the viable and growing market for fiber- to-the-user and the solution's versatility and ability to serve multiple markets. Utilities such as Chelan want to deliver unique services to their customers, while developing a communications network that will provide an economic development advantage for their community. Alcatel's leading broadband access portfolio, technical expertise, and network experience enable these utilities to confidently attain their goals. "We are dedicated to developing a network that will allow our customers equal access to the tools and services available in the broadband age today," said John Smith, Chelan County Utility District. "This new network infrastructure enables affordable new services and positions our community perfectly for the bandwidth needs of the future." "By utilizing the Alcatel 7340 to deliver these advanced services through independent service providers, Chelan Utility District demonstrates the flexibility of Alcatel's FTTU solution," said Michel Rahier, president of Alcatel's Broadband Networking activities. "Whether delivering broadband services through partners or directly to their citizens, communities can be confident they are receiving the best technology and supplier experience available." 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: Signs Contract With Pakistan Telecommunication Company --------------------------------------------------------------- Alcatel (http://www.alcatel.com)announces that it has been selected by Pakistan Telecommunication Company Limited (PTCL), the incumbent Pakistani operator, for the expansion and modernization of its fixed network. The deal, based on Alcatel 1000 switching systems, foresees the deployment of 150,000 new lines. Alcatel's best-in-class solutions will enable PTCL to offer new voice and data services such as ISDN and high-speed internet access over ADSL to its customers as it modernizes its network architecture. It will also enable the operator to meet the huge demand for new telephone lines in the country. Nooruddin Baqai of PTCL says: "Alcatel has been one of our major suppliers for telecommunication systems for over a decade. We have found Alcatel to be a reliable technology partner and expect this relationship to grow in the coming years with new and innovative solutions." Ludwig De Maeyer, President of Alcatel's voice network activities, adds: "Through its local experience, Alcatel has already significantly contributed to the modernization and expansion of PTCL's network and has already deployed some 1,4 million lines in the country. We hope to expand our long relationship with PTCL in providing additional network solutions." ALCATEL: Acquires Contract With Hubei Telecom Broadband Services ---------------------------------------------------------------- Alcatel has announced a contract with Hubei Telecom, to supply the Alcatel 7670 Routing Switch Platform (RSP) to meet the growing demand for high speed Internet access and broadband services in China. Hubei Telecom is the first service provider in China to deploy the Alcatel 7670 RSP to support its broadband access network. The Alcatel 7670 RSP offers complete in-service scalability to improve bandwidth utilization and meet unpredictable demand for extra capacity from broadband customers. "As our broadband offering grows and networks become more complex, Alcatel offers a multiservice, multiprotocol platform ready to scale as demands of our customers warrant," said Lin Youhuai, general manager of Hubei Telecom. "Our deployment of the Alcatel 7670 RSP ensures our customers will benefit from more reliable service and innovative broadband services as they evolve." In addition, the advanced traffic management of the platform ensures absolute quality of service for a wide range of differentiated services delivered over DSL, including interactive multimedia services and voice over DSL. Reducing operating costs, the Alcatel 7670 RSP will aggregate last-mile DSL traffic while also delivering data, advanced IP and voice services. The network also includes the Alcatel 7470 Multiservice Platform (MSP) and the Alcatel 5620 Network Manager, delivering end-to-end management of Hubei Telecom's core and access networks. "Hubei Telecom is deploying a solution that increases network efficiency while powering the rollout of broadband services," said Michel Rahier, President of Alcatel's broadband networking activities. "The Alcatel multiservice, multiprotocol platform is a future proof investment for service providers, delivering a range of services today along with the ability to grow and scale as demand increases and services evolve." 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: Optronics Revises Q3 Guidance, Accelerates Restructuring ----------------------------------------------------------------- Alcatel Optronics announces that continuing recession and persistent inventories at the customers' level could result in revenue for the third quarter declining up to 50% sequentially. This deterioration should have a limited impact at the operating profit level, as it should be offset by the positive effects of previously implemented cost-savings measures. "Given a further deterioration of the markets, we feel that it is mandatory to intensify restructuring actions and launch a Strategic Refocus Plan" said Jean-Christophe Giroux, CEO. "We want to reach as soon as possible a streamlined business model, with our Nozay (France) manufacturing facility focusing on Active Components, our Livingston (Scotland) plant on Passives, and both units combining forces in a joint effort towards Hybrids. From 1,550 staff today, we expect to reach approximately 1,000 before year-end, and ultimately below 500 end-2003. This decrease in fixed costs should results in an estimated Euro 40 Million quarterly sales break-even point by end 2003". "Despite these measures, Alcatel Optronics has the technology, skill-set, and geographical presence, that will make it an undisputed industry leader for tomorrow's market. It may be a while before market conditions improve but by that time all rightsizing actions should be completed, our financial profile should be restored and we should be in a better position to benefit from a new market up-cycle." The Strategic Refocus Plan includes the following: - In France, the Nozay site would be adjusted to approximately 300 employees, through a combination of different measures including, but not limited to, industrial outsourcing, pooling of resources with partners, spin-offs and individual redeployments. Alcatel Optronics plans to sit down with unions and employees representatives to jointly discuss and explore all available solutions, as well as their practical implementation. In parallel, at the Lannion site, the process of an industrial re-conversion to another industry segment has been launched, as announced on June 5, and could be completed as early as Q3'03. - In the U.S., Alcatel Optronics intends to enter into a non- binding agreement with an industrial partner, whereby this partner would acquire the majority of the Alcatel Optronics Plano (Texas) business and assets. The transaction is expected to close before the end of 2002. - In Canada, all Fiber Bragg Grating (FBG) activities will be discontinued and the R&D expertise transferred across to Livingston (Scotland) where the manufacturing has already been re-localized. - In the Livingston site, all Passive products (Planar Lightwave Circuit and FBG) will be consolidated. Operations will continue to be sized to reflect ongoing business conditions. - ALCATEL: Alcatel Optronics Subsidiary to Trim Workforce -------------------------------------------------------- Alcatel Optronics, a division of French telecommunications maker, Alcatel SA, is planning to cut two thirds of its employees as revenue falls and market condition worsens, Dow Jones reports. Chief Executive Jean-Christophe Giroux also disclosed a "strategic refocus plan" that would cut the workforce from 1,550 to 1,000 by year-end, and to less than 500 by the end of 2003. The move is expected to entail an expense in the optical network component manufacturer, which in June provided EUR60 million charge on its decision to cut 25% of its workforce. According to Dirk Ruebesamen, analyst at WestLB Panmure, the reduction of the number of employees is expected and is necessary to shore up the company's finances. Alcatel Optronics' restructuring raised the value of its shares to 5.0%. Mr. Giroux expects to achieve a revenue break-even point of EUR40 million by the end of 2003 from the job cuts. Alcatel's 100%- subsidiary forecasts revenue drops of 50% in the third quarter following a 28% slide in the second quarter. The company's restructuring plans include closing or selling several production sites to industrial partners, and concentrating production of active components in Nozay, near Paris, and of passive components in UK at Livingston, Scotland. Alcatel Optronics also plans to sell majority of its business assets at its Plano, Texax facility by year-end. ALCATEL: Provides Pacific Islands With First GPRS Network ----------------------------------------------------------- Paris, September 17th, 2002 - Tikiphone, French Polynesia's mobile operator has signed a contract with Alcatel (Paris: CGEP.PA and NYSE: ALA) to expand the capacity of its existing GSM 900 MHz network and offer enhanced mobile voice and data services to end users across the French Pacific islands. When completed by the end of this year, the GSM network will be extended to a total capacity of 100,000 subscribers, from its current base of 75,000, and will support up to 10,000 GSM and GPRS subscribers. Tikiphone's expanded network will then offer enhanced mobile data services such as broadband Internet and mobile-commerce as well as wireless data transfers. The network will initially be launched in the capital city of Tahiti Island (Papeete) and then be expanded to the "sous le vent" Islands, Tuamotu and Marquises Islands where a lack of coverage is felt. Within the frame of this contract Alcatel will supply Tikiphone with its EvoliumT solution, including the radio access network (Base Stations and Base Station Controllers), which are GPRS enabled and that will considerably enhance the radio coverage improving the quality of communication and broadening the number of provided services. The solution will also include the GPRS core network system. Alcatel's GPRS network and services, a natural part of the migration path to 3G/UMTS technology, will assure Tikiphone a smooth evolution to 3G. Alcatel will also supply Tikiphone with major service such as a Virtual Private Network (VPN) solution thanks to Alcatel's Corporate Mobility Manager, a converged VPN (Virtual Private Network) inside a corporate network environment for fixed/mobile/data convergence. Yannick Teriierooiterai, General Manager of Tikiphone declared: "Signing this contract with Alcatel demonstrates our long-term partnership and the confidence in Alcatel's solutions. Alcatel will be part of the increasing development of mobile phone infrastructure in French Polynesia". "This new contract demonstrates Alcatel's ability to satisfy the Pacific Islands' specific requirements. The Tikiphone's contract gives us the opportunity to show that Alcatel's solutions are perfectly adapted to optimize existing infrastructures and ensure a smooth evolution towards 3G in French Polynesia" added Remi Galasso, Alcatel Pacific Islands Country Senior Officer. 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. VIVENDI UNIVERSAL: Chief Wants to Keep U.S. Media Business ---------------------------------------------------------- Vivendi Universal chief executive Jean-Rene Fourtou is set to announce to investors Wednesday his plans for the company's Vivendi Environnement, and U.S. media businesses. According to the Financial Times, the top executive wants to divest Vivendi's remaining 40% stake in Vivendi Environnement, while maintaining a controlling interest in its U.S. media businesses. Vivendi Universal Entertainment is valued at about EUR15 billion. The sell-off of Vivendi Environnement, tagged at EUR3.4 billion (US$3.3 billion), could be complicated, however, by an 18-month lock-up agreement that was completed during the share placement in June. Mr. Fourtou is also expected to assert he no longer needs to divest the company's 44% stake in Cegetel, as he has already raised enough cash through asset sales and tapping new credit lines. According to the report, Vivendi even wants to increase its stake in Cegetel to above 50% in order to consolidate the group's strong cashflows. Monday's expiry of the agreement between the four owners of Cegetel is expected to trigger a rivalry between Vivendi and Vodafone for the telecom group. Earlier reports say Vivendi has rivaled Vodafone's EUR12.4 billion bid. VIVENDI UNIVERSAL: Telepiu Deal in Final Talks With News Corp ------------------------------------------------------------- Vivendi Universal is finishing off talks for the close to EUR1 billion sell-off of its Italian pay TV operator, Telepiu, to Rupert Murdoch's News Corp., according to Reuters. Former chief executive Jean-Marie Messier originally set the price for the operator at EUR1.5 billion three months before the conglomerate fell into financial difficulties. The deal was renegotiated after Vivendi unloaded its assets and the issue of broadcast rights with Italy's soccer clubs continued to cloud Telepiu's value. Rupert Murdoch plans to merge Telepiu with News Corp's Italian Stream to create a single pay TV operator that would end a rivalry over Italian soccer rights between the two and stem up losses ensuing from these fights. The deal is expected to furnish Telepiu with a core value of some EUR800 million, excluding extras to cover advance payments. The price for Telepiu includes extras such as reimbursements for pre- paid program rights. The core value was actually half the original price according to a source close to the talks. Fortou plans to present the final agreements of the deal on a board meeting on September 25. According the report, Telepius' parent, Canal Plus, which is also a unit of Vivendi, is likewise preparing for the sale of its pay TV software unit to Thomson Multimedia. ============= G E R M A N Y ============= ARNDT: Delays Filing of Half-Year Results Until End of September ---------------------------------------------------------------- Arnt AG, an insolvent German car rental agency which cut its full-year profit target this month, announced it will delay submitting half-year results, says Bloomberg. According to the report, Deutsche Boerse AG, the company that runs the Frankfurt stock exchange, extended the deadline of the filing until September 30. The Neuss, Germany-based company earlier said it is unlikely to break even this year due to the drop in car rentals as a result of weak economic growth in Germany. Germany's seventh largest car rental company filed for insolvency proceedings on September 11 after it failed to raise funds from banks and potential investors to pay bills. Arndt's petition is pending at a Dusseldorf court says a company statement submitted to the Frankfurt stock exchange. Arndt, meanwhile, has appointed Friedrich Wilhelm Metzeler as interim insolvency trustee. Mr. Metzeler is a partner of law firm Metzeler Van Betteray. MOBILCOM: Plans 800 Job Cuts to Lessen Costs -------------------------------------------- German mobile phone company MobilCom AG considers reducing its workforce with 800 job cuts to decrease its costs, a report from the Bloomberg says. The report says the planned job cuts is part of the company's reorganization measures to save up to EUR130 million. The company currently has approximately 5,500 employees. Last Sunday, the German government led by Chancellor Gerhard Schroeder promised to give EUR400 million to MobilCom as rescue aid following France Telecom SA's withdrawal of financing from the 11-year-old company. The financial aid has yet to be given a "go ahead" by the European regulators. France Telecom owns 28.5% of the MobilCom. MOBILCOM: EU Wants to Review Details of Government Rescue Package ----------------------------------------------------------------- The European Union Commission wants to know the details of the EUR400 million rescue package granted by the German government to cellphone operator MobilCom AG, Dow Jones reports. Jonathan Faull, a Commission spokesman, says the agency wants to know whether the bailout is a state aid or not. EU officials wanted to ascertain that the aid is not wasted and would want to secure a detailed viability studies outlining long-term profitability. The EU is currently moving to reduce the frequency and size of government handouts says the report. The regulator will also review Mobilcom's plans to determine their effect on competition in the cellphone sector. The bailout recalls similar rescue packages granted to German construction company, Philipp Holzmann AG, last year and Credit Lyonnais SA in 1998. According to the report, the Commission has been rather lenient on these deals. MOBILCOM: Creditor Banks Set Conditions for EUR400 Million Fund --------------------------------------------------------------- The German government's EUR400 million (US$388) bailout for MobilCom encounters glitches in the form of tough loan conditions set by Landesbank Kiel and KfW. According to the Financial Times, the public-sector-controlled bank that promised EUR80 million of cash to the mobile operator, said it would only lead a consortium of lending banks. It also said it wanted to ascertain first whether MobilCom's restructuring plan is fully funded and whether there might be the need for a full audit conducted by "an internationally respected audit firm." Landesbank Kiel's decision came after KfW, the German developement bank that promised the EUR320 million part of the bailout, demanded a proper collateral and market-level interest rates. Both decisions follow the European Union Commission's plan to review the funding agreement to know whether the assistance is a loan or a state aid. According to the report, the conditions allowed the German government to hold that the help is not a state aid and does not break EU rules regarding helping distressed companies. MOBILCOM AG: Grooms Itself for Possible Merging ----------------------------------------------- Mobile phone operator MobilCom AG is preparing to merge with another telecom company, according to The Deal. The announcement came after the Budelsdorf-based operator received promise of emergency funds from the government, cutting short its plan to file for insolvency. The development led the company to focus on building a sound business that is attractive to other German wireless companies. According to a press official, "The longer-term plan must be to participate in consolidation." The report also says telecom analyst Benedict Evans at West LB Panmure in London believes Germany's mobile-phone market needs to consolidate in the near future. Deutsche Telekom AG and Britain's Vodafone Group plc dominate the sector. The press official also disclosed that MobilCom has agreed with politicians to maintain UMTS operations with a promise to cut expenses. He also said that chief executive Torsten Grenz will focus on building its, 2G business, the resale operation, and Internet service provider business. Heike Pautz, telecom analyst at Cr,dit Agricole Indosuez Chevreux in Frankfurt, also foresees the company will continue operating according to its current service provider model, adding that the customers will be company's main assets. =========== G R E E C E =========== OLYMPIC AIRWAYS: May Drop Australian Routes to Save Cost -------------------------------------------------------- The Greek national airline, Olympic Airways, is planning to drop all routes to Australia in an effort to cut cost and attract a new buyer, says ABC News. The airline's chief executive, Dionysis Kalofonos, admits it may soon resort to dropping its twice-weekly flights to Sydney and Melbourne. The top executive sees that the cost of fuel and the need for fresh crews at each stopover are taking its toll on the troubled airline. A previous TCR-Europe issue reported that chartered accountants who examined the company's 2000 accounts said the airline founded by Aristotle Onassis is in danger of filing for bankruptcy. According to the report, the accountants observe the 98.7% reduction in the company's shareholders' funds from EUR98.8 million in 1999 to EUR1.8 million in 2002 could lead to the filing. Greece has appointed three local banks--National Bank of Greece, Commercial Bank of Greece, and Alpha Bank--to advise on the privatization of Olympic Airways. The banks were given the task of looking for an investor willing to acquire 51% of the state airline and inject US$100 million in new capital. ============= I R E L A N D ============= ALLIED IRISH BANKS: Notification of Major Interests in Shares ------------------------------------------------------------ Allied Irish Banks, p.l.c. ('AIB') has received notification from The Capital Group Companies, Inc. ('CGC') that its affiliates named below had interests in 53,424,867 AIB ordinary shares as at 12 September 2002, representing 5.96% of the issued ordinary share capital. The shareholdings of these affiliates are registered as shown in this link: http://bankrupt.com/misc/AIB2.pdfand represent funds managed by them on behalf of investment clients. CGC, of Los Angeles California, USA, is a holding company for several subsidiary companies engaged in investment management business. JEFFERSON SMURFIT: Moody's Assigns B2 to Proposed Notes Issuance ---------------------------------------------------------------- Moody's Investors Service gave a B2 rating to the proposed senior notes issuance worth EUR900 million of Jefferson Smurfit Group Plc through its indirect parent company, Mdp Acquisitions Plc. The notes, which mature 2012, are to be donominated in euros, pounds sterling, and US dollars. The rating agency also assigned a Ba3 senior implied rating to the company, and a Ba3 rating to the company's new ?2.525 billion senior secured credit facilities. The ratings affect approximately EUR3.9 billion of debt securities as follows: - Senior implied rating assigned at Ba3 - Unsecured issuer rating (at MDP Acquisitions Plc) assigned at B2 - EUR 900.0 million in proposed new senior notes due 2012 at B2 - EUR 2.525 billion in new senior secured credit facilities at Ba3 - $250.0 million in 6.75% guaranteed debt securities of Smurfit Capital Funding Plc due 2005 lowered from Baa2 to Ba3 - $292.0 million in 7.50% guaranteed debt securities of Smurfit Capital Funding Plc due 2025 lowered from Baa2 to Ba3 According to the rating agency the Ba3 senior implied rating shows: the company's dominance in Europe's containerboard industry; Moody's belief that "the company should remain strongly cash flow generative going forward, particularly in the context of a relatively light mandatory debt amortisation schedule for the next 24 months"; the management's competence to grow amidst strong competition; the company's high degree of vertical integration and generally low-cost mill position; and the stability of the market for the company's product. In conjunction with the transaction, Jefferson Smurfit Group is believed to also benefit from a EUR250 million subordinated PIK facility, EUR732 million in equity from Madison Dearborn and management, and EUR125 million in proceeds from non-recourse financing at a finance subsidiary of the holding company. The net proceeds of the transactions will fund the purchase of EUR2.4 billion outstanding equity interest of Jefferson Smurfit Group, re-finance approximately EUR1.0 billion of its debts, and cover fees and expenses. Jefferson Smurfit Group is the leading European producer of kraftliner, and the second largest producer of testliner. ===================== N E T H E R L A N D S ===================== AEGON NV: Interim Dividend 2002 ------------------------------- On 8 August 2002 AEGON N.V. (http://www.aegon.com)declared an interim dividend for the fiscal year 2002 of EUR 0.37 per common share of EUR 0.12 par value, or a fraction of a common share of EUR 0.12 par value. Using the average price on the Euronext Amsterdam over the period from 10 September 2002 up to and including 16 September 2002, the stock fraction was determined at 1/33 share. The value of the interim dividend in shares will be approximately equal to that of the interim dividend in cash. Shareholders have already made their choice between receiving the interim dividend entirely in cash or entirely in stock to be paid out of the paid-in surplus (free of dividend withholding tax in the Netherlands) or, if so required, out of the net income of the first half of 2002. For shareholders who opted for payment entirely in cash, the dividend will be made payable as from 20 September 2002 at several paying agency banks. Shareholders of common shares who opted for payment in shares will receive one common share of EUR 0.12 par value upon surrender of 33 dividend coupons number 5. Each of the shares will partially benefit from the 2002 results and fully from those of subsequent years. Coupons must be submitted to N.V. Nederlandsch Administratie- en Trustkantoor (NEDAMTRUST), Herengracht 420, 1017 BZ Amsterdam, the Netherlands. Rights to the interim dividend payment in cash or in stock will be made available to holders of CF-certificates through those institutions, which have been acting as custodians of the coupon sheets for their shares at the close of business on 9 August 2002. Holders of New York shares will be contacted by AEGON's U.S. Transfer Agent, Citibank. Contact Information: Investor Relations Telephone: +31 70 344 83 44/ +31 70 344 83 05 AEGON NV: S&P Keeps AEGON and Subsidiaries on CreditWatch --------------------------------------------------------- Standard & Poor's Ratings Services said its ratings on AEGON N.V. and related subsidiaries, including its double-'A'-minus long- term counterparty credit rating on AEGON N.V., remain on CreditWatch with negative implications pending completion of the planned capital restructuring announced today. "Following completion of the transaction, Standard & Poor's expects to remove its ratings on AEGON N.V. and subsidiaries from CreditWatch and affirm them," said Standard & Poor's credit analyst Rob Jones. Once the CreditWatch placement is resolved, it is likely that the outlook on AEGON N.V. and subsidiaries would be negative. The capital restructuring, based on completion of the transaction around current market levels, involves a combined offering of 350 million AEGON N.V. shares to the market, with at least EUR1.5 billion raised by majority shareholder Vereniging Aegon and the balance sold to AEGON N.V. by Vereniging Aegon and then placed in the market by AEGON N.V. There are no new common shares to be issued. Following a profits warning, the ratings on AEGON N.V. and related subsidiaries were placed on CreditWatch on July 22, 2002, to reflect Standard & Poor's concerns about earnings and capital. Today's announcement, which represents the raising of more than EUR2 billion of capital, is a significant factor contributing to the expected affirmation of the ratings. Following discussions with AEGON management, Standard & Poor's is satisfied that the longer term earnings adequacy of the AEGON group remains consistent with the current ratings. "Standard & Poor's expects future earnings, in terms of ROE, to reach approximately 14% from 2003," said Mr. Jones. Together with further planned capital efficiency measures, which are expected to maintain both interest cover and capital adequacy at levels consistent with the ratings, with fixed-charge cover expected to remain at more than 5 times and leverage at about 25%. Standard & Poor's maintains a negative outlook on the U.S. and U.K. life insurance sectors reflecting current economic and market conditions. Achievement of the above expectation will be challenging in the current environment. Failure to achieve these expectations would likely result in a lowering of the ratings. =========== P O L A N D =========== ELEKTRIM: Vivendi May Buy Elektrim Telekomunikacja --------------------------------------------------- The Management Board of Elektrim S.A. announces that on 17 September 2002, it received a copy of a letter from Elliott Advisors (UK) Ltd to Jean-Rene Fourtou, President of Vivendi Universal S.A., with a proposal of purchase 100% of shareholdings of Elektrim Telekomunikacja Sp. z o.o., provided Elektrim S.A. withdraws the bankruptcy filing. The proposal of purchasing 100% of shareholdings of Elektrim Telekomunikacja Sp. z o.o. held by Elektrim S.A. (49%) and Vivendi Universal S.A. (51%) is conditional on, amongst other things, the successful completion of due diligence, financing the bid, and adequate representations, warranties and indemnities from current shareholders of Elektrim Telekomunikacja Sp. z o.o. The price offered in the letter for 100% of Elektrim Telekomunikacja Sp. z o.o. on a debt-free basis is EUR 1,300 mm. Elektrim's Management Board is analyzing the above proposal. CONTACT: Jacek Dabrowski Director of Investor Relations Phone: (+48 22) 432 87 75 Fax: (+48 22) 432 84 75 Email: jacek_dabrowski@elektrim.pl ELEKTRIM: Supervisory Board Installs New Team of Management ----------------------------------------------------------- The supervisory board of Polish conglomerate Elektrim SA has installed a new set of senior managers after it ousted ex- president Maciej Radziwill, who filed creditor protection for the company this month. According to The Deal, the appointment of the new management fuelled rumors that the new team would withdraw the bankruptcy filing and start renegotiating with bondholders. Elektrim petitioned for the protection after defaulting on EUR440 million (US426 million) worth of bonds in December. The conglomerate was able to secure a court-ordered repayment agreement with bondholders but withdraw the deal on September 2. Bondholders are hopeful the new set of officers would uphold a restructuring agreement, which partly stipulates an upfront repayment of EUR200 million. Elektrim broke the promise when it motioned to sell its 49% stake in Elektrim Telekomunikacje. Yet other analysts believe the new management could not change the company's future that was dimmed by its default on its bond obligations. Elektrim's shareholders are domestic lender BRE Bank SA and France's Vivendi Universal SA. NETIA HOLDINGS: Supervisory Board Appoints New President -------------------------------------------------------- Netia Holdings S.A., Poland's largest alternative provider of fixed-line telecommunications services, announced that the company's supervisory board unanimously approved the appointment of Mr. Wojciech Madalski as the new President of the company's management board. Mr. Kjell-Ove Blom, the acting president of the company, submitted today his resignation notice from his post on the management board. As another important step in the restructuring process, the supervisory board members selected Mr. Wojciech Madalski as President and Chief Executive Officer of the Company. Mr. Madalski's track record and extensive international management experience, especially concerning the restructuring of companies and strengthening their market position, drove their selection. Mr Madalski's task will be to continue the Company's restructuring program. Mr. Madalski thanks Mr. Kjell-Ove Blom, who performed the function of acting president for the last 12 months, for his service to the company during the past 5 years. "I am very pleased that Wojciech Madalski has joined our organization. I am convinced that under his management Netia will continue to strengthen its position as the largest alternative fixed-line telephony operator in Poland," commented Morgan Ekberg, chairperson of the company's supervisory board. "Netia is a dynamically developing company with a huge potential and strong market position. I look forward to completing the difficult restructuring process and working towards continued company growth for our shareholders," said Wojciech Madalski, the new president of the company's management board. CONTACT: Anna Kuchnio Investor Relations Netia Holdings Telephone: +48-22-330-2061 ===================== S W I T Z E R L A N D ===================== ZURICH FINANCIAL SERVICES: S&P Maintains Rating on CreditWatch -------------------------------------------------------------- Standard & Poor's Ratings Services said Tuesday its ratings on related entities of Switzerland-based Zurich Financial Services (collectively ZFS) remain on CreditWatch with negative implications, where they were placed on Sept. 5, 2002, pending the successful implementation of ZFS' rights issue. The update follows ZFS' announcement that its proposed rights issue, announced on Sept. 5, 2002, has been fully underwritten for an amount of approximately $2.5 billion. "This represents a key step in successfully completing the issue, which is still subject to shareholders' approval at an extraordinary general meeting on Oct. 11, 2002," said Standard & Poor's credit analyst Karin Clemens. The ratings on ZFS were lowered to single-'A'-plus and placed on CreditWatch following the group's announcement that it will increase its net non-life reserves by $2 billion following a third-party actuarial review, write down asset values by $1 billion, and incur restructuring charges of about $500 million in the second half of 2002. These actions will put significant strain on the group's already reduced risk-based capitalization. ZFS, however, also announced plans to implement a significant capital and operational improvement program to rebuild its balance sheet strength and enhance its net income in 2003 by an additional $1 billion. The successful completion of the rights issue is one of the cornerstones of this program. "In the event of the successful completion of the rights issue, Standard & Poor's expects to remove the ratings on ZFS from CreditWatch and affirm them at their current level," said Ms. Clemens. "The outlook would be negative pending satisfactory implementation of group management's operational improvement program, which has the potential to significantly enhance earnings." If the rights issue is not successfully completed, however, Standard & Poor's will lower the ratings further. This would reflect concerns as to whether the group's earnings capacity would be sufficient to restore capital adequacy to a level consistent with the current ratings. Nevertheless, the ratings are expected to remain in the single-'A' range. ZURICH FINANCIAL: Confirms Heavy Discounts on Rights Offering ------------------------------------------------------------- Zurich Financial Services, Europe's third-larger insurer which is raising cash to shore up funds, confirmed that its US$2.5 billion (GBP1.6 billion) rights issue will be discounted heavily. The company is joining other rivals, including Legal & General and Aegon, in tapping investors for fresh funds. The insurer is currently undertaking a US$5 billion (GBP3.25 billion) turnaround plan that includes divestments and job cuts. According to Dow Jones, the company's guaranteed lowest issue price is CHF65 (GBP27.90), less than half of the current share price. According to some traders, the discount was attractive even in the light of Zurich's four profit warnings in 2001 and its expensive expansion drive. The insurer posted a US$2.03 billion (GBP1.3 billion) loss in the first half of the year. Shareholders are scheduled to decide on the rights issue next month and to have the cash proceeds by the end of October. The rights issue had been underwritten by a syndicate of banks led by Credit Suisse First Boston, Goldman Sachs International, Schroder Salomon Smith Barney and UBS Warburg. =========================== U N I T E D K I N G D O M =========================== ASW HOLDINGS: KPMG Says They Are in Talks With Potential Buyer -------------------------------------------------------------- The receivers of U.K.-based steelmaker ASW Holdings Plc disclosed that they are currently negotiating with a potential buyer for the company, a report from Bloomberg says. ASW Holdings has been under the control of KPMG Corporate Recovery, a part of KPMG International, since it was appointed as receivers in July. KPMG has since implemented 650 job cuts, while maintaining 400 staff in 22 offices around the U.K. The report further says KPMG said in a statement:`There will be several weeks of complex negotiations ahead and as we are in the very early stages of this process, we can offer no certainty as to the outcome.'' ASW Holdings, which produces specialty steel used in construction, faced financial crisis last year when steel prices plunged to their lowest in two decades. It made a profit in 1995 and posted losses of GBP6.4 million in sales of GBP270 million last year. The company's shares have been suspended since July 10, when the company said it was seeking bankruptcy protection. It was then valued at GBP5.4 million. Its rival, Corus Group has already denied being interested in buying the company, the report says. BEDE: Appoints Tokyo Electron as Distributor for Japanese Market ---------------------------------------------------------------- Bede plc (http://www.bede.co.uk)ispleased to announce that its subsidiary, Bede Scientific Instruments Limited (Bede), has appointed Tokyo Electron Limited (TEL) to act as its sole distributor in the Japanese territory. TEL will market, sell, install and maintain the entire range of advanced Bede metrology products in semiconductor and other markets from October 2002. The agreement is expected to lead to sales of around US$20m within the next three years. Commenting on the agreement, Dr Neil Loxley, Chief Executive of Bede plc said: 'The completion of this agreement after detailed evaluation and negotiation between TEL and Bede is a major breakthrough for Bede, representing the best possible route to market for our products in Japan. We are particularly pleased that a company with the unparalleled market access, reputation and influence of TEL has chosen to work with Bede. The decision by TEL to distribute Bede products is a vindication of the use of Bede's advanced X-ray technology products for leading-edge applications in the semiconductor and other markets', he added. Bede plc, headquartered in Durham, UK, is a global leader in the design and manufacture of non-destructive X-ray metrology tools. Primarily serving the semiconductor market, the company is diversifying into other market sectors including life sciences. TEL, established in 1963, is a leading supplier of innovative semiconductor and FPD production equipment worldwide. In Japan TEL distributes other leading edge semiconductor equipment tools, such as metrology tools or process control systems. TEL is a publicly held company listed on the Tokyo Stock Exchange. Contact Information: Neil Loxley Chief Executive Tel: +44 (0) 191 332 4700 David Hall Finance Director Tel No: +44 (0) 191 332 4700 BEDE: Announces Trading Update -------------------------------- The announcement of results for the six month period to June 2002 will be made on 26 September 2002. Sales for the six months are expected to be in line with market expectations but losses for the period are likely to be higher. However, on the basis of strategic progress being made, including the Tokyo Electron Limited distribution agreement announced today, the Board remains positive about the long term prospects for the group. A full review of performance will be set out in the interim results. Contact Information: Neil Loxley Chief Executive Tel: +44 (0) 191 332 4700 David Hall Finance Director Tel No: +44 (0) 191 332 4700 BIG FOOD: Appoints Kevin Loosemore as Non-Executive Director ------------------------------------------------------------ At a board meeting today, Kevin Loosemore was appointed to the Board of The Big Food Group plc as a Non-executive Director with immediate effect. He will join the Remuneration and the Audit Committees. Kevin is currently President of Motorola, Professional Services and was formerly a director of IBM United Kingdom Limited and De La Rue Plc. There are no matters requiring disclosure under paragraph 6F.2(b) to (g) of the UKLA Listing Rules with respect to Kevin Loosemore. At the same meeting, the Board regretfully accepted the resignation of Tom Knowlton. Tom has been a Non-executive Director since June 1999. He leaves to devote more time to his other commitments including his role as Dean of the Faculty of Business at Ryerson University, Toronto. BIG FOOD: Notice of Holdings in Company ---------------------------------------- Company in which shares are held: BIG FOOD GROUP Notifiable Interest: Ordinary Shares Fidelity International Limited (FIL) P.O. BOX HM 670 Hamilton HMCX, Bermuda The notifiable interests also comprise the notifiable interest of: Mr Edward C Johnson 3d 82 Devonshire Street Boston, MA 02109 Letter From Fidelity Management & Research Company Schedule A Security: BIG FOOD GROUP Amendment No. 35 Management Shares Held Company Nominee/Registered Name (Ordinary Shares) 12,136,262 FISL Chase Nominees Ltd 708,128 FIL Chase Nominees Ltd 32,666,962 FIL MSS Nominees Ltd Total Ordinary Shares: 45,511,352 Current Ownership Percentage: 13.26% Shares In Issue: 343,109,788 Change In Holdings Since Last Filing: +3,699,857 ordinary shares BRITISH ENERGY: Cancels GBP260 MM of Undrawn Bilateral Facilities ----------------------------------------------------------------- British Energy plc announces that it has served notice to cancel GBP260 million of undrawn bilateral committed facilities due to expiry in January 2003. The decision to cancel these facilities is due, in particular, to the short-term maturities of these facilities. On 9 September 2002, the Company announced that the UK Government had granted a short-term facility of GBP410m for a period up to 27 September 2002. It also stated that discussions were taking place with the Government regarding longer-term restructuring but that there could be no certainty as to a successful outcome. FILTRONIC: Buys in USD7.7 MM of Its 10% Senior Notes -------------------------------------------------------- Filtronic plc (http://www.filtronic.com),a leading global designer and manufacturer of customised microwave electronic subsystems, announces that it has bought in US$7.7 million of its 10% Senior Notes due 1 December 2005 at a discount to par value. These Notes will be cancelled leaving US$127.2m of the Notes outstanding. Filtronic has now bought in and cancelled a total of US$42.8 million of the Notes. Filtronic is not utilizing any of its GBP31m bank overdraft facility. Commenting, Professor J David Rhodes, Executive Chairman and Chief Executive of Filtronic, said: 'As at 31 May 2002, Filtronic had cash balances of GBP9.1 million. Since that date, Filtronic has continued to generate cash and has bought in US$13.5 million of the Senior Notes. This strong cash performance has enabled the Company to reduce further its level of long term debt and financing costs.' Contact Information: Professor David Rhodes Executive Chairman & CEO John Samuel Finance Director Filtronic plc Tel: 01274 530622 FILTRONIC: Initial Production Orders Received for Newton Aycliffe ----------------------------------------------------------------- Filtronic plc (http://www.filtronic.com),a leading global designer and manufacturer of customized microwave electronic subsystems, announces that its Compound Semiconductor business at Newton Aycliffe, County Durham, U.K., has received initial production orders from M/A-COM, Inc., to supply RF switches for cellular handsets for a major non-European OEM. This is scheduled for manufacture over the next three months with further follow-on orders expected. The number of volume opportunities identified in Filtronic's Final Results announcement of July 29, 2002 has since doubled from four to eight, and levels of production to meet demand from M/A-COM for very high volume OEM requirements are expected to grow substantially over the next 12 months. Of the eight specific opportunities M/A-COM have identified, four are with non-telecommunication major OEMs, for the volume manufacture of switch product for Wireless Local Area Networks ('WLAN', 802.11a, b and g), which are anticipated to start early in the first quarter of calendar year 2003. Commenting, Professor J David Rhodes CBE FRS FREng, Executive Chairman, said: ' The M/A-COM Strategic Alliance signed in November 2001 put together Filtronic's production facility for Gallium Arsenide semiconductor devices at Newton Aycliffe with M/A-COM's world renowned position in microwave semiconductor devices. Filtronic has developed a first class process for the production of RF switches at Newton Aycliffe with exceptionally high yields and excellent device performance. The quality, efficiency and cost effectiveness of this process is outstanding.' Contact Information: Professor David Rhodes Executive Chairman & CEO John Samuel Finance Director Filtronic plc Tel: 01274 530622 KIDSGROVE FABRICATING: Offers Business and Assets for Sale ---------------------------------------------------------- The Joint Administrative Receicers, Ian Best and William Tacon, offer for sale as a going concern the business and assets of Kidsgrove Fabricating and Engineering Company Limited. Fabrication of high quality metal structures for the commercial vehicle and rail industry Turnover c.GBP4m p.a. and c. 100 employees Modern leasehold premises in Newcastle-under-Lyme, Staffordshire 60,000 sq ft workshop area with lifting capacity of 20 tonnes For further information, please contact: Ian Best or Diane Frangou Ernst & Young LLP One Colmore Row Birmingham B3 2DB Tel: 0121 535 2457 Fax: 0121 535 2448 E-mail: pwolff@uk.ey.com KINGFISHER: Interim Results For 26 Weeks Ended August 3 2002 ------------------------------------------------------------- Kingfisher (http://www.kingfisher.com)reports strong first-half growth, with pre-tax profits (1) ahead 26.5% to GBP274.7 million. -Total retail sales growth of 10.1%, with like-for-like sales up 1.3% -Retail profit ahead by 19.8% to GBP294.3m -Profits before tax up 26.5% to GBP274.7m (1) -Earnings per share ahead by 24.6% to 7.1p (2) - Dividends at 3.45p per share are up 5.2% (2) - Balance sheet strengthened by strong operating cash flow Note (1) Before exceptional items and acquisition goodwill amortisation. Note (2) Adjusted to reflect the bonus element of the recent rights issue and the share consolidation effected in August 2001. Kingfisher announced first half-year results, with retail sales ahead by just over 10% to GBP5.1 billion and retail profit up almost 20% to GBP294.3 million. The period saw weak consumer confidence in France and Germany, along with relatively better conditions in the U.K. The Home Improvement sector performed strongly. Total sales grew 14.6%, up 2.8% on a like-for-like basis, with growth in the core categories offset by slower growth in seasonal areas in B&Q. Retail profit grew by 24.9% to GBP256.1 million, out-pacing sales growth, in large part due to the margin benefits arising from the ongoing cost price reduction program in the U.K. The Electrical and Furniture sector grew total sales by 1.7%, but like-for-like sales were down 1.5%. Sales performance in the second quarter was stronger than the first, with consumer demand for vision products boosted by the World Cup. Retail profit declined by 6.1% to GBP38.2 million. Market share gains were achieved in the U.K. and France, but the slower rate of sales growth, combined with a mix shift into faster growing but lower margin products, led to the profit decline. Overall the Group's profit before tax and exceptional items grew by 26.5% and, after accounting for minority interests and an increased taxation rate, adjusted earnings per share grew 24.6% to 7.1p. An interim dividend of 3.45p will be payable, up 5.2% on last year's 3.28p. Sir Geoffrey Mulcahy, Kingfisher's Chief Executive, said: 'Overall, these are a strong set of results achieved in a tough consumer environment. We are on track to deliver our strategic transformation into Europe's leading pure play Home Improvement retailer with a unified management team responsible for developing the business. In Electricals, our strong positions in France and the U.K. have enabled us to trade successfully in challenging market conditions, whilst in Germany we clearly have more work to do. 'In the short term we expect the slowdown in the rate of economic growth to result in a continuing difficult market environment. In Home Improvement, where we have market-leading positions in the U.K. and France through B&Q and Castorama, the strategic alliance with Hornbach in Germany and operations in eight other countries, we will be well-placed to compete in this exciting growth market. Meanwhile, we are committed to the separation of the Electricals business within the timetable previously announced.' Kingfisher is Europe's leading home improvement retailer and is ranked number three in the world. The Company operates more than 590 home improvement stores in 11 countries and enjoys market- leading positions in the U.K., France, Poland and Taiwan. Sales for the Home Improvement sector for the year to 2 February 2002 were more than GBP5.8 billion, with retail profit in excess of GBP430 million. Kingfisher's Electrical & Furniture business operates more than 830 stores in nine countries. It is Europe's third largest electricals retailing business by sales and number two by retail profit. As well as holding the leading position in France and the number two position in the UK, Kingfisher also enjoys leading positions in Belgium and in the Czech and Slovak Republics. Sales for the year to 2 February 2002 were more than GBP3.7 billion, with retail profit of GBP184 million. To view comprehensive details of results with balance sheet: http://bankrupt.com/misc/Kingfisher.pdf Contact Information: Ian Harding Director of Investor Relations Tel:+44 (0) 20 7725 4889 MARCONI: Reunert Acquires Shares in South African Business ----------------------------------------------------------- Reunert announced that it has acquired Marconi Plc's 51% share in South African telecommunications cable manufacturer ATC (Pty) Ltd for an undisclosed price. Although the transaction is subject to the fulfilment of a number of suspensive conditions, Reunert will take immediate management control. On completion of the transaction, Reunert will own 79% of ATC. The 21% share held by African Cables Limited in ATC will remain unchanged. Reunert owns 50% of African Cables Limited, a power cable manufacturer based in Vereeniging. The new shareholding arrangements are an important step in facilitating the introduction of a black economic empowerment partner in ATC. Reunert is expected to announce more details on this deal shortly. ATC has been experiencing difficult trading conditions following the downturn in the telecommunications industry worldwide. However, Reunert chief executive Gerrit Pretorius is confident that market conditions will improve in the longer term and that ATC will be a valuable asset going forward. CONTACT: REUNERT Carina de Klerk Communications Manager Tel: +27 11 517 9000 Direct: +27 11 517 9033 Mobile 083 631 5743 MARCONI: Enhances Service on Portfolio Solution ----------------------------------------------- Marconi announces a development initiative with Micromuse, the leading provider of service and business assurance software solutions, that will enable service providers and enterprise IT operators to reduce operational costs and customer churn by providing a fully integrated, multi-vendor network and fault management solution. As part of this initiative, Marconi will offer Micromuse's Netcool suite as part of its ServiceOn range of network management systems. Branded as "Netcoolr for ServiceOn", the collaboration provides joint customers of Marconi and Micromuse with a solution capable of delivering significant operational efficiencies. "This partnership represents a very powerful addition to our Operational Support Services (OSS) portfolio," said Andy Furner EVP of Marconi's OSS and Network Strategy Division. "The ability to manage faults across technology domains and in a multi-vendor environment delivers the operational efficiencies required by our customers today and provides the scalable platform required to grow with their needs of the future." Typically, communication networks can be split into functional layers. Each layer may have its own management system that generates alarms as part of its operation. The Netcoolr solution simplifies monitoring of the entire IT infrastructure by bringing together all the alarms generated within each layer, regardless of the vendor of the management systems used. Marconi's ServiceOn suite offers a comprehensive selection of in- house network management systems - open interfaces based on industry standards and interoperable best-of-breed OSS partner products - which deliver scalability, carrier-class reliability and advanced functionality. This combined with a highly experienced, skilled professional services team and strong systems integration resource, enables operators to reduce costs, generate revenue and deliver differentiated services quickly and intelligently. Micromuse's Netcool software suite provides businesses with the assurance that their networks, services and applications are working. By providing customers visibility throughout their entire infrastructure in real-time, Netcoolr applications enable operators to respond before IT-based business services go down. REGUS PLC: Quells Speculations of Bankruptcy Filing --------------------------------------------------- Regus Plc denied rumors that the serviced offices provider is about to file for bankruptcy or breach covenants, the Financial Times reports citing unidentified company official. In a separate report, Regus chief executive Mark Dixon denied any unusual happening that could explain the plunge of its shares on Monday. About 5% of the shares were traded, and the value of the shares dipped 40% to 31/2 p. The dive fueled speculations that the international serviced office provider is in difficulties. Almost 29.5 million shares changed hands, compared with the threemonth daily trading average of 2.2 million shares. The company's shares lost 94% this year, to a market value of GBP20 million. According to Mr. Dixon the block sale does not suggest anything rather than the fact that investors are showing they don't want to invest on shares of a very small company. Mr. Dixon assured that the company's business remains very profitable. In August, the company announced it is keen on conserving cash, and might stop redeeming GBP40 million convertible bond, although Mr. Dixon still hopes he would still be able to redeem the final GBP12 million by the end of the year. THE DESIGN COMPANY: Puts Business and Assets Up for Sale -------------------------------------------------------- The Joint Administrative Receivers, Angus M Martin and Bill Dawson, offer for sale the business and assets of The Design Company (Holdings) Ltd, the northern based nursery goods design and manufacturing group which includes Silver Cross Ltd and The Design Company (Manchester) Ltd. Design and manufacturing group providing a range of prams, puchchairs, nrsery bedding and furniture World recognised pram nad puchchair brand UK Manufacturing capability including a chromium planting plant Group turnover in excess of o11m Existing customer base supplying a number of well known high street retailers and independents Supplier to 22 overseas distributors and customers worldwide Source, supply and manufacture own brand products Dedicated and skilled workforce Internal British Standards testing department to ensure quality, compliance and durability maintained For further information please contact: Deloitte & Touche 1 City Square Leeds LS1 2AL Richard Harrison: 07771 506266 E-mail: ebingley@deloitte.co.uk David Elliot: 07786 197515 E-mail: daelliott@deloitte.co.uk WORLDCOM INC: Wants to Reject 19 Executive Severance Agreements --------------------------------------------------------------- Lori R. Fife, Esq., at Weil Gotshal & Manges LLP, in New York, relates that Worldcom Inc., and its debtor-subsidiaries terminated 19 vice presidents and senior vice presidents during the reduction in force occurring four months prior to the Petition Date. Under the Debtors' Severance Programs, an eligible employee is entitled to up to six months severance pay based upon an employee's level and years of service with the Debtors. The total Severance Obligations due the Terminated Executives under the Debtors' Severance Programs total US$1,600,000. But pursuant to certain severance agreements, Ms. Fife explains that the Terminated Executives were provided an enhanced level of severance pay above the six-month severance cap. The Enhanced Severance contemplated the payment of specified amounts on a bi- weekly basis through the end of August 2002 -- at which time the Terminated Executives would receive their Severance Obligations. The Severance Agreements provide for US$900,000 in Enhanced Severance. Prior to the Petition Date, the Terminated Executives received US$500,000 in Enhanced Severance. By this motion, the Debtors seek the Court's authority to reject the Severance Agreements with the executives. Instead, the Debtors ask the Court to permit the Terminated Executives to otherwise participate in the Severance Programs and receive Severance Obligations. Specifically, the Debtors ask Judge Gonzalez's permission to provide the Terminated Employees with an amount equal to the difference of the Terminated Executives' Severance Obligations due and the Received Enhanced Severance. The Terminated Executive Severance Balance is about US$1,100,000. By rejecting the Severance Agreements, Ms. Fife points out that the Debtors will eliminate the severance benefits provided therein which are at levels above amounts provided by their Severance Programs. The Debtors, however, believe that it is equitable to permit the Terminated Executives to receive severance payments pursuant to the Severance Programs notwithstanding the prepetition termination of the Terminated Executives. (Worldcom Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc., 609/392-0900) ************ 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 * * *