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/raid1/www/Hosts/bankrupt/TCREUR_Public/021007.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, October 7, 2002, Vol. 3, No. 198 Headlines * B E L G I U M * GIB SA: Board Supporting Take-over Bid by Ackermans & van Haaren * F R A N C E * ALCATEL: Signs Contract With Tunisia Telecom to Enhance Services FRANCE TELECOM: Two Board Members Favors State Influence NORTEL NETWORKS: Nortel Networks Outlines Wireless Strategy VIVENDI UNIVERSAL: Rejects EUR3 Billion Bid for Publishing Asset VIVENDI UNIVERSAL: To List Games Unit in NASDAQ During H103 * G E R M A N Y * DEUTSCHE TELEKOM: Sets Job Agency to Place Staff Affected by Cuts DEUTSCHE TELEKOM: T-Com Adopts Measures to Increase Efficiency KIRCHMEDIA GMBH: To Press Offer for KirchMedia Despite Odds PHILIPP HOLZMANN: Balfour Betty Renew Negotiations on JA Jones * I T A L Y * FIAT SPA: To Cut Thousands of Jobs in Automobile Plants TELECOM ITALIA: To Take 19.9% Interest in Venture With News Corp * N E T H E R L A N D S * VERSATEL TELECOM: Cooperates With Banks on ADS Cancellations * P O L A N D * BANK PEKAO: Announces Board's Resolution on Programme of Bonds ELEKTRIM SA: Court Rejects Petition to Move Bankruptcy Hearing ELEKTRIM SA: Registration of Capital Increase in Elektrim Online ELEKTRIM SA: Announces Agreement With Bondholders * S W E D E N * LM ERICSSON: Trade Union Warns Setbacks of Further Job Cuts * U N I T E D K I N G D O M * ABERDEEN ASSET: Jupiter and KKR Proposes Buyout - Report BIG FOOD: Notification of Second-Quarter Trading Statement CORUS GROUP: Notification of Interests of Directors EIDOS PLC: Announces Dealings of Director INVENSYS PLC: Integrates With Technip-Coflexip to Market SPYRO KINGFISHER PLC: Notification of Interests of Director KINGFISHER PLC: Notifies Major Interest of Shareholder KINGFISHER PLC: Announces Director Shareholding NAVAN MINING: Announces Interim Statement for First Half NAVAN MINING: Announces Dealings by Substantial Shareholders NAVAN MINING: Announces Completion of Krumovgrad Drilling Program PEARL ASSURANCE: Parent Might Abandon British Business WORLDCOM INC.: Wants to Assume EDS Outsourcing Subcontract ============= B E L G I U M ============= GIB SA: Board Supporting Take-over Bid by Ackermans & van Haaren ---------------------------------------------------------------- Board of Directors of GIB S.A. on Tuesday has transmitted to the Banking & Finance Commission and to Ackermans & van Haaren n.v. its opinion in accordance with articles 14 and 15 of the Royal Decree of November 8, 1989, on take-over bids. This opinion was adopted unanimously by the members of the Board, which recommends that the holders bring their shares in the bid. The full text of the opinion will be disclosed, in accordance with the law, in the take-over bid prospectus. =========== F R A N C E =========== ALCATEL: Signs Contract With Tunisia Telecom to Enhance Services ---------------------------------------------------------------- Alcatel and Tunisie Telecom today announced that they have signed a contract to expand the capacity of Tunisie Telecom's existing national GSM 900/1800 MHz network. The contract foresees the installation and integration of BSC's (Base Station Controller) and a MSC (Mobile Switching Center). Alcatel will supply its EvoliumT solution, including the radio access network (Base Stations and Base Station Controllers) and integrate the General Packet Radio Service (GPRS) technology. Alcatel's GPRS network and services are a natural part of the migration path to 3G/UMTS technology. To carry the traffic, the network will utilize Alcatel's advanced low-medium capacity microwave radio systems based on Plesiochronous Digital Hierarchy (PDH) technology. Tunisie Telecom is the main provider of telecommunication networks and services in Tunisia, and offers the entire range of fixed, wireless and satellite telephone services. Furthermore, Tunisie Telecom holds the majority of the shares of Mauritania's GSM leader MATTEL. "We are very happy to continue our collaboration with Alcatel. A good partner is for us the guarantee to have a high-quality network that meets the demands of our ever-growing mobile subscriber-base." Said, Ahmed Mahjoub, managing director of Tunisie Telecom Marc Rouanne, President of Alcatel's Mobile Networks added. "We are very pleased to continue our team work with Tunisie Telecom. Our EvoliumT solutions are ideal for taking their existing network to a higher-capacity level able to provide both voice and data services, bringing this reality to life in Northern Africa." Today, one out of four operators worldwide trusts Alcatel for the supply of its GSM 800, 900, 1800 and 1900 MHz networks. Alcatel is a leading supplier of GSM networks in Africa with 36 references: Algeria, Benin, Burkina Faso, Burundi, Cameroon, Central Africa, Congo, Djibouti, Egypt, Gabon, Gambia, Ghana, Guinea, quatorial Guinea, Ivory Coast, Kenya, Libya, La R,union, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Niger, Nigeria, Senegal, Seychelles, South Africa, Sudan, Tanzania, Togo, Tunisia, Uganda and the Democratic Republic of Congo. 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, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com. FRANCE TELECOM: Two Board Members Favors State Influence -------------------------------------------------------- Two trade union board members of France Telecom wants the debt- laden company to be returned to the care of the state, according to reports. The two members from the Communist-linked CGT union also said they would propose the issue with the new head, Thierry Breton. Meanwhile, the company informed employees and investors that the refinancing and recovery plan of the new chairman and the French government would be released after two months yet. The rescue plan is expected to consist of two parts: measures to improve liquidity in the form of a shareholder's loan, a rescheduling of its bank debts or a loan guaranteed by the state; and the strengthening of its equity capital via a capital increase, in which the state's subscription would match its current its stake. NORTEL NETWORKS: Nortel Networks Outlines Wireless Strategy ----------------------------------------------------------- Nortel Networks [NYSE/TSE: NT] has outlined the company's strategy addressing the industry's changing business needs for migration to next generation technologies, and unveiled a new wireless brand to support this strategy. In an address to wireless industry analysts earlier this week, Pascal Debon, president, Wireless Networks, Nortel Networks, discussed the challenges facing the supplier community. Debon emphasized that wireless content is not the natural domain of equipment manufacturers, whose focus is better suited to delivering low-cost broadband connectivity with platform-enabled services. Debon also highlighted the industry's current shift from circuit- to packet-based networks, the evolution of code division access, and Nortel Networks strategy for delivering a highly cost-effective network architecture he termed "Wireless Data Networks." Nortel Networks Wireless Data Networks strategy is based on packetized voice, all-IP (Internet Protocol) networking and more spectrally efficient access technologies. This architecture is designed to reduce the cost of transmitting network traffic by as much as ten-fold, according to Debon. Nortel Networks continues to build momentum in the global 3G (third generation) marketplace, and estimates its 3G contract share has grown to approximately 19 percent. Nortel Networks has been awarded approximately US$2.8 billion in wireless contracts in 2002. Debon emphasized that operators must evolve to packetized voice and all-IP networks to reduce networking costs and enable converged, personalized service offerings to offset declining voice revenues. Currently 75 percent of voice and data traffic is circuit switched. By 2005, Nortel Networks estimates that 75 percent of wireless traffic will be packet based. "Operators have made significant investments in next generation wireless spectrum and technology, and must now squeeze their existing assets for more value and return on investment from data services," Debon said. "The challenge we face today is evolving from a 'voice-utility' industry to a mobile 'service-centric' business that changes the way consumers derive value from wireless. This is the challenge of 3G." Nortel Networks Wireless Data Networks strategy leverages the company's combined expertise in IP core and the major wireless access technologies. Nortel Networks is currently the only wireless infrastructure vendor to have deployed live networks using all three advanced access technologies - GPRS, CDMA2000, and UMTS. Nortel Networks Wireless Data Networks strategy addresses four key attributes that Debon said every operator - regardless of size, access technology or location served - will need to consider moving forward: Packetizing the core network to enable significant cost savings for both voice and data transmission and scalable migration path to 3G Spectrally efficient access technology that leverages operator investment Platforms that support differentiated services, like Web browsing, location-based services and mobile VPNs (Virtual Private Networks) to the end user Carrier-grade, reliable and scalable networks that reduce churn and protect operator investments "Wireless Data Networks will be key to operator success in the wireless industry," said Phil Marshall, senior analyst, Yankee Group. "Strategies like the ones outlined this week by Nortel Networks will help reduce network operational costs, protect capital investments and allow operators to grow their subscriber base with new service enablers." Debon also introduced Nortel Networks new wireless brand name, Univity*. "Universal connectivity" is the key concept behind Univity, which will provide a unified brand across the company's portfolio of Wireless Data Network access and core technologies. "3G is a new game with new rules," Debon said. "Univity highlights our leadership position in Wireless Data Networks. No other vendor offers the experience or breadth of solutions across core packet networks and next generation wireless technologies." "Univity provides a comprehensive approach to solving customer- specific business needs with a single focus on deploying the most cost-effective 3G solutions available today," Debon said. Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Long Haul Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. VIVENDI UNIVERSAL: Rejects EUR3 Billion Bid for Publishing Asset ---------------------------------------------------------------- Despite being pressured to raise cash, Vivendi Universal SA dumped three offers worth EUR3 billion (US$3 billion) for its publishing unit, Bloomberg reports. According to sources, the media company, which targets to cut EUR19 billion debt by two-thirds in two years, extended the tender of offers until October 15. Analysts, however, predict that the bidders are unlikely to raise the offer. People familiar with the company say, Vivendi may settle for EUR3.4 billion for Vivendi Universal Publishing. It may also break the assets into parts if it doesn't get its target amount for the whole business. The publishing asset includes Boston- based publisher Houghton Mifflin Co. The bidders include: French buyout firm Eurazeo SA with Carlyle and Credit Agricole SA's buyout firm; BNP Paribas SA's PAI Management unit with KKR, Apax Partners, Bain Capital, Blackstone Group LP, Thomas H. Lee Partners LP and Goldman Sachs Group Inc.'s private- equity arm; and Lagardere, the French publisher of Elle and Car & Driver, with Ripplewood Holdings LLC, a New York-based private- equity fund. The company was mired in debt as a result of a US$77 billion acquisition spree of former Chief Executive Officer Jean-Marie Messier. VIVENDI UNIVERSAL: To List Games Unit in NASDAQ During H103 ----------------------------------------------------------- Vivendi Universal is planning to list between 40 and 49% of its Vivendi Universal Games unit, the world's second-largest producer of PC games, and overseas telecommunications assets such as Maroc Telecom, on the NASDAQ during the first half of 2003, says reports. According to a source, the move is expected to generate around EUR800 million for the French media empire, which is currently looking to raise Eur12 billion through the sale of non-core assets, mostly outside France. Reports say Vivendi estimates Vivendi Universal Games, a division of Vivendi Publishing at between EUR1.5 and EUR2.5 billion, while analysts value it at EUR1.6 billion. VUG includes the Blizzard Entertainment, Sierra Entertainment, Universal Interactive, NDA Productions and Massive Entertainment studios. Vivendi Universal also raised the prospect of a new partnership structure for Vivendi Universal Entertainment, the U.S. studios, theme parks and cable TV division led by Barry Diller, the U.S. media entrepreneur. CONTACT: VIVENDI UNIVERSAL 42 avenue de Friedland 75380 Paris Cedex 08, France Phone: +33-1-71-71-10-00 Fax: +33-1-71-71-11-79 Home Page: http://www.vivendiuniversal.com ============= G E R M A N Y ============= DEUTSCHE TELEKOM: Sets Job Agency to Place Staff Affected by Cuts ----------------------------------------------------------------- Telecommunications company Deutsche Telekom AG is setting up an internal job advertising service to avert mass redundancies, says Suddeutsche Zeitung. Deutsche Telekom, which posted net loss of EUR3.9 billion for the first half of 2002, is currently conducting a review to solve the EUR4 to EUR7 billion gap in the company's plan to reduce its debt to EUR50 billion by the end of 2003. The company had EUR64.2 billion-debt at the end of June. As a cost-saving plan, the Germany's largest telecommunications group plans to cut around 22,000 out of its total 254,806 staff. The internal job agency, which is tasked to retrain staff for new jobs, is expected to serve 5,000 to 6,000 employees who will be hired within the company or elsewhere in the next three years. Yet, those who will not be absorbed will still face redundancy. DEUTSCHE TELEKOM: T-Com Adopts Measures to Increase Efficiency -------------------------------------------------------------- T-Com, Deutsche Telekom's fixed network division, has adopted a comprehensive package of measures to increase efficiency and competitiveness. The goal is to improve the necessary process structures and thus to improve workflow. This restructuring of internal processes results in considerable potential for reducing costs. Full exploitation of all verified possibilities for optimisation leads to a reduction at the already defined level of 7,200 jobs nationwide in 2002. A reduction of a further 14,000 jobs is planned for 2003 and a total of around 8,300 jobs in subsequent years up to 2005. Furthermore, T-Com is investigating the extent to which already defined cost reduction measures for the future can be implemented in 2003. As the Group's fixed network division, T-Com is continuing the path of consistent efficiency improvement by implementing these measures alongside the new organizational focus of T-Com already implemented throughout the country. These new measures are a further building block in the implementation of the E3 pr*ogramme announced in July to increase efficiency, improve results and accelerate the reduction of debts. The programme will be implemented without compulsory redundancies by cutting vacant positions, consistent exploitation of fluctuation, adaptation of outsourcing practices and the transfer of personnel to the new, Telekom-internal placement and re- training unit, the Human Resources Service Agency. KIRCHMEDIA GMBH: To Press Offer for KirchMedia Despite Odds ----------------------------------------------------------- Representatives of French television group, TF1, and U.S. media entrepreneur, Haim Saban, will continue to discuss their bid for KirchMedia. The consortium is pushing for the offer for Kirch group's main operating arm although their initial offer is said to be below the price offered by two rivals. According to the Financial Times, the offer for KirchMedia ranged from EUR1.6 to EUR2.6 billion (US$1.5 to US$2.5 billion) during the auction. The creditors of KirchMedia, mainly German and US film studios, are due to discuss bids for the company's 52.5% stake in ProSiebenSat.1, Germany's biggest free-TV broadcaster. The group will narrow down bidders from three to two. Other bidders for the asset are: an alliance of Commerzbank and Sony's Columbia Tristar studio, and a consortium of former KirchMedia shareholders led by Lehman Brothers Merchant Banking. Heinrich Bauer, the German publishing group, is also reported to join the bid. PHILIPP HOLZMANN: Balfour Betty Renew Negotiations on JA Jones -------------------------------------------------------------- Balfour Beatty Plc resumed talks with Philipp Holzmann AG about acquring JA Jones, after withdrawing the talks two weeks ago, according to reports. According to sources, the British company, which dropped the bid due to current equity conditions, is still Holzmann's preferred bidder for the U.S. subsidiary. Balfour Beatty, earlier, foresaw that the costs arising from the potential acquisition would take an exception charge of around 9 million stg in its 2002 accounts. The sale of J.A, Jones is aimed at gathering proceeds of EUR500 million (US$486 million). Concerns regarding antitrust fines are earlier seen as likely to delay the sale. Philipp Holzmann filed for insolvency in March after a frantic last-ditch attempt to broker a rescue plan failed, two years after its dramatic 1999 rescue orchestrated by Chancellor Gerhard Schroeder. The company has 164 units before the filing. The administrator of Holzmann reportedly refused to comment on the report. CONTACT: PHILIPP HOLZMANN Taunusanlage 1 60299 Frankfurt, Germany Phone: +49-69-2-62-1 Fax: +49-69-2-62-433 Home Page: http://www.philipp-holzmann.de BALFOUR BEATTY 130 Wilton Rd. London SW1V 1LQ, United Kingdom Phone: +44-20-7216-6800 Fax: +44-20-7216-6902 Home Page: http://www.balfourbeatty.com ========= I T A L Y ========= FIAT SPA: To Cut Thousands of Jobs in Automobile Plants ------------------------------------------------------- Reports of Fiat's plan to undertake massive job cuts in its Italian automobile plants again resurfaced after data showed that the automaker's domestic car sales continue to decline. Fiat's Italian sales have fallen 19.2% since the start of the year. Last month, new car registrations fell 7.5%, although other manufacturers registered an 8.5% rise. As a result, the automaker's market share was pushed to 28.7% from 32.1%. According to the Financial Times, the lay-offs are most likely to involved stopping production at the Termini Imerese plant near Palermo, and a plant in Arese, on the outskirts of Milan. The job cuts are under an industry-funded scheme that could allow displaced workers to be reinstated after 6 to 12 months. Although reports have it that Fiat Auto plans to dismiss between 3,000 to 4,000 jobs, unions fear the figure could be up to 6,000. The number is on top of the 2,900 slashes the automaker made this year. The company is currently trying to achieve a turnaround in sales during the fourth quarter, but weakness in its important domestic market is cutting the drive short. Meanwhile, creditors are pushing for the management to exercise put option to sell Fiat Auto to General Motors, which already owns 20% of the car division. CONTACT: FIAT SPA 250 Via Nizza 10126 Turin, Italy Phone: +39-011-686-1111 Fax: +39-011-686-3798 Toll Free: 800-804027 Home Page: http://www.fiatgroup.com/e-index.htm TELECOM ITALIA: To Take 19.9% Interest in Venture With News Corp ---------------------------------------------------------------- Telecom Italia will own a 19.9% equity interest in the proposed company resulting from the merger of Telepiu with Stream, the Italian pay-TV platform jointly owned by Telecom Italia and News Corporation. The companies recently acquired Telepiu, the Italian pay-TV business, from Vivendi Universal. The transaction is detailed in a statement issued by News Corp. The EUR920-million deal involves the assumption of up to EUR450 million in debt and a cash payment of EUR470 million for the shares of Telepiu. The acquisition, which is expected complete at the end of the calendar year, includes: the various rights to telecast certain future Italian soccer matches, which have previously been paid for by Telepiu, as well as the rights to two terrestrial television licenses. Also, under the agreement, all litigation between the parties, including Stream's litigation against Telepiu and Canal+'s litigation against NDS, will be suspended immediately and permanently withdrawn when the transaction closes. The new company is set to be renamed Sky Italia. ===================== N E T H E R L A N D S ===================== VERSATEL TELECOM: Cooperates With Banks on ADS Cancellations ------------------------------------------------------------ Versatel to be removed from 'Strafbankje' by Euronext Amsterdam Amsterdam, 3 October 2002, Versatel Telecom International N.V. announced today that it has reached an agreement with the Bank of New York regarding the surrender of Versatel's American Depositary Shares for delivery of ordinary shares free of charge for the holders of its ADS's for a two week period following the distribution of shares on the completion of Versatel's financial restructuring. Holders of ADS's wishing to take advantage of this facility will need to give instructions to their custodians. BONY will issue a notice to the holders of Versatel's dollar denominated notes with specific instructions on this issue later this week. In addition, Euronext Amsterdam announced this week that, as a result of the completion of Versatel's financial restructuring and its return to a significant positive equity position, Versatel will be removed from the so-called "strafbankje" or penalty bench as of October 10, 2002. Versatel expects that it will make the distributions of cash, ordinary shares and ADS's pursuant to its restructuring plan to the former holders of its high yield and convertible debt securities on or about October 9, 2002. Under Versatel's financial restructuring plan, holders of its U.S. dollar denominated notes will receive ADS's rather than ordinary shares. One ADS represents 12 ordinary shares. Versatel's ADS's are currently traded on the over-the-counter ("OTC") market in the United States. Versatel's ordinary shares are listed on Euronext Amsterdam. Under the agreement with BONY, from October 10 through October 25, 2002, Versatel and BONY will provide holders of its ADS's the opportunity to surrender their ADS's for delivery of ordinary shares free of charge. After this period, holders of ADS's will have to pay the normal applicable surrender charge of up to $5.00 per 100 ADS's to BONY to surrender their ADS's for delivery of ordinary shares. Versatel Telecom International N.V. (Euronext: VRSA) based in Amsterdam, is a competitive communications network operator and a leading alternative to the former monopoly telecommunications carriers in its target market of the Benelux and northwest Germany. Founded in October 1995, the Company holds full telecommunications licenses in The Netherlands, Belgium and Germany and has over 81,000 business customers and 1,168 employees. Versatel operates a facilities-based local access broadband network that uses the latest network technologies to provide business customers with high bandwidth voice, data and Internet services. Versatel is a publicly traded company on Euronext Amsterdam under the symbol "VRSA". The Versatel logo is a registered trademark in The Netherlands, Belgium, Luxembourg, Germany and several other European countries. CONTACTS: Versatel Telecom International N.V. AJ Sauer Manager, Investor Relations and Corporate Development Tel: +31-20-750-1231 E-mail: aj.sauer@versatel.nl Anoeska van Leeuwen Director Corporate Communications Tel: +31-20-750-1322 E-mail: anoeska.vanleeuwen@versatel.nl =========== P O L A N D =========== BANK PEKAO: Announces Board's Resolution on Programme of Bonds -------------------------------------------------------------- The Management Board of Bank Pekao SA informs that the Management Board of Bank Pekao SA on 2nd of October 2002 has made a resolution on Programme of Bonds Issuing and on introducing them into the public trading based on following principles: 1) they are bearer bonds, they earn interests, 2) the total number of issued bonds will not exceed 20,000,000 (twenty million) and the nominal value of one bond is PLN 100 (PLN one hundred), and the nominal value in total will not exceed PLN 2,000,000,000 (PLN two billion), 3) the Programme of Bonds Issuing will be done via arrangement of one or numerous series of bonds; the repurchase period will be not shorter than 9 months and not longer than 13 months; 4) benefits in kind are not connected with them, 5) the ratio of total Programme of Bonds value to the equity of the issuer is equal 31%, 6) the ratio of total Programme of Bonds value plus value of other already committed and not redeemed issuances done by the issuer to the equity of the issuer is equal 31%. ELEKTRIM SA: Court Rejects Petition to Move Bankruptcy Hearing -------------------------------------------------------------- The Warsaw District Court denied the application filed by Polish conglomerate Elektrim SA to postpone the bankruptcy hearing scheduled on October 7, says Dow Jones. In a statement, the management board of the company, requests the court to move the schedule to a date after October 2002. Previously, Mr. Radziwill, being unable to sell the company's telecommunications assets, believed Elektrim could not afford to pay back 200 million euro by the end of the year and issue high- coupon bonds for the rest of the debt. Elektrim filed for bankruptcy September 13. Deutsche Telekom, meanwhile, acted rapidly to ask the Warsaw court whether Elektrim could be declared "financially impaired." The German company wanted to know whether it could buy Elektrim's stake in the disputed mobile phone operator Polska Telefonia Cyfrowa SA. Deutsche Telekom is disputing a 1998 share purchase that gave Elektrim a 51% stake in PTC. Those shares were subsequently transferred to joint venture Elektrim Telekomunikacja, which is now 49% by Elektrim. ELEKTRIM SA: Registration of Capital Increase in Elektrim Online ----------------------------------------------------------------- The Management Board of Eelektrim S.A. announces that on 2 October 2002 it was informed that the Warsaw District Court XIX Economic Division of the National Court Register registered the increase in capital of Elektrim Online Sp. z o.o., based in Warsaw (indirect subsidiary of Elektrim S.A.), from the amount of PLN 350,000 to the amount of PLN 4,470,000, i.e. by the amount of PLN 4,120,000, by way of issuing 8,240 new shares. Elektrim S.A. holds 100% of shares in the share capital of Elektrim Online Sp. z o.o. 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 SA: Announces Agreement With Bondholders ------------------------------------------------- The Management Board of Elektrim S.A. announces that on 3 October 2002 an agreement has been executed between the company and the Committee representing the bondholders of Elektrim Finance BV bonds issued in 1999 and guaranteed by the company. The agreement provides for a restructuring of the company's EUR 510 mm debt in a way which in the Management board's estimation enables the company to repay its liabilities. CONTACT: Jacek Dabrowski Director of Investor Relations Phone: (+48 22) 432 87 75 Fax: (+48 22) 432 84 75 Email: jacek_dabrowski@elektrim.pl =========== S W E D E N =========== LM ERICSSON: Trade Union Warns Setbacks of Further Job Cuts ----------------------------------------------------------- Trade union representatives assert that further redundancies in Ericsson's operations can adversely affect the business, Reuters reports. The comment refers to the planned trimming down of the company's workforce to 60,000 by 2003 from the 76,000 at the end of June. Ericsson Chairman Michael Treschow, however, reassured that there would be no additional redundancies. The job cuts are part of the company's plan to have annual breakeven costs of SEK 120 billion (EUR12.87 billion) in 2003. The union representatives suggested that instead of making redundancies, Ericsson should divest entire units such as the CDMA 2000. Yesterday, Ericsson made a prediction that the telecom equipment environment will remain "uncertain with few signs of stabilizing in the near term." Moody's Investors Service recently downgraded the long-term debt ratings of Telefonaktiebolaget LM Ericsson (Ericsson) from Ba1 to Ba2 basing on a weak market for telecommunications equipment. Meanwhile, Ericsson will close its AsiaPacificLab in Melbourne, displacing 450 scientists and researchers, says ABC News. The move is seen as part the drain of research and development companies in Australia due to weakness of tax and other incentives for research and development. CONTACT: Ericsson Media: Pia Gideon, +46 705 198 903 E-mail: pia.gideon@lme.ericsson.se Investors: Gary Pinkham, +46 8 719 0858, +46 730 371 371 E-mail: investorrelations@ericsson.com =========================== U N I T E D K I N G D O M =========================== ABERDEEN ASSET: Jupiter and KKR Proposes Buyout - Report -------------------------------------------------------- Asset manager Jupiter and KKR, the private equity house, have allegedly held initial discussions with Aberdeen Asset Management, a firm whose four split capital trusts went into receivership recently. According to the Financial Times, the informal talks were, however, suspended over concerns about the scale of potential split trust liabilities at the group. Both companies reportedly declined to comment on the issue. The fund management company has been under pressure from investors to stem the decline in the company's stock due to the receivership. The firm's shares plunged 77% on the report. Aberdeen's shares fell down 19% on Thursday to a nine-year low as investors worry about the firm's financial standing. The decline shrank the group's value to just GBP95.7 million. According to analysts, investors are currently urging the firm to devise a scheme that would reduce debt, compensate holders of a fund that invested in split capital trusts whose value have fallen sharly. The slump left many private investors with heavy losses. In July, the firm's chief executive, Martin Gilbert, was summoned by lawmakers to explain the collapse of some trusts as stock markets decline. Aberdeen is a fund management group established in 1983. It is 50% owned by the board and employees. Speculations currently circulated about a possible management buyout led by Mr. Gilbert, who denied the rumors. Analysts are suggesting that the group may restore investor confidence by unloading parts of the business. BIG FOOD: Notification of Second-Quarter Trading Statement ---------------------------------------------------------- The Big Food Group plc will be releasing its second-quarter trading statement of the 2002/2003 reporting year on 9th October, in respect of the thirteen weeks to the 27th September 2002. CONACT: Noemie de Andia, Hudson Sandler Tel: 020 7796 4133 CORUS GROUP: Notification of Interests of Directors --------------------------------------------------- NAME OF COMPANY: Corus Group plc NAME OF DIRECTOR: Mr S I Pettifor NAME OF THE REGISTERED HOLDER(S) AND, IF MORE THAN ONE HOLDER, THE NUMBER OF SHARES HELD BY EACH OF THEM (IF NOTIFIED): Mrs G Pettifor NUMBER OF SHARES / AMOUNT OF STOCK ACQUIRED: 20,000 PERCENTAGE OF ISSUED CLASS: 0.0006 CLASS OF SECURITY: Ordinary shares of 50p PRICE PER SHARE: 39.7p DATE OF TRANSACTION: September 26 2002 DATE THE COMPANY IS INFORMED: October 2 2002 TOTAL HOLDING FOLLOWING THIS NOTIFICATION: 20,000 TOTAL % HOLDING OF ISSUED CLASS FOLLOWING NOTIFICATION: 0.0006 NAME OF CONTACT AND TELEPHONE NUMBER FOR QUERIES: Theresa Robinson Tel:020 7717 4528 AUTHORIZED OFFICIAL MAKING THE NOTIFICATION: Theresa Robinson Date of Notification: October 3 2002 EIDOS PLC: Announces Dealings of Director ----------------------------------------- NAME OF COMPANY: Eidos Plc NAME OF DIRECTOR: Stuart Cruickshank DATE OF GRANT: Sept.11, 2002 - CONTRACT START Nov.1, 2002 EXERCISABLE DATE: Nov.1, 2005 to Apr. 30, 2006 TOTAL AMOUNT PAID (IF ANY) FOR GRANT OF THE OPTION: nil (saye scheme) DESCRIPTION OF SHARES OR DEBENTURES INVOLVED: class, number: 9,742 ordinary EXERCISE PRICE (IF FIXED AT TIME OF GRANT) OR INDICATION THAT PRICE IS TO BE FIXED AT TIME OF EXERCISE: 97 pence TOTAL NUMBER OF SHARES OR DEBENTURES OVER WHICH OPTIONS HELD FOLLOWING THIS NOTIFICATION: 117,861 ANY ADDITIONAL INFORMATION: Notification date October 02, 2002 NAME OF CONTACT AND TELEPHONE NUMBER FOR QUERIES: Michael Arnaouti Tel: 0208 636 3434 DATE OF NOTIFICATION: October 03 2002 INVENSYS PLC: Integrates With Technip-Coflexip to Market SPYRO -------------------------------------------------------------- Invensys, a world leader in resource productivity, and Technip- Colflexip have entered into an agreement to integrate and jointly market Technip's SPYRO(R) yield prediction program as part of a complete ROMeo(R)-based ethylene plant real-time optimization solution. This solution is designed to help global olefin processing companies to maximize profitability. Invensys will implement the optimization solution in customer plants, with additional support provided from the offices of TechnipUSA Corp., CA, and Technip Benelux B.V., The Netherlands. The first projects have already been awarded in Japan and Europe. Developed by Simulation Sciences (Brea, CA), an Invensys unit, ROMeo (rigorous on-line modeling with equation based optimization) software is designed to enable plant engineers and managers to model process units and optimize operations on a plant-wide basis. The system uses a combination of real-time plant data and current economic objectives to optimize plant operations. SPYRO technology enhances ROMeo optimization with a rigorous yield prediction capability for steam cracking of hydrocarbons. SPYRO is used by approximately 75 percent of the world's ethylene producers. ABOUT TECHNIP-COFLEXIP With a workforce of about 18,000 and annual revenues of about 5 billion euros, TECHNIP-COFLEXIP ranks among the top five in the field of oil and petrochemical engineering, construction and services. Headquartered in Paris, the Group is listed in New York (NYSE: TKP) and in Paris (EURONEXT: 13170). The main engineering and business centers of Technip-Coflexip are located in France, Italy, Germany, the UK, Norway, Finland, the Netherlands, the United States, Brazil, Abu-Dhabi, China, India, Malaysia and Australia. The Group has high-quality industrial and construction facilities in France, Brazil, the UK, the USA, and Finland as well as a world-class fleet of offshore construction. INVENSYS IN THE HYDROCARBON PROCESSING INDUSTRY Invensys is helping to improve performance, safety, and profitability in the world's largest refineries and petrochemical plants. Invensys' well-proven software and product application portfolio for the HPI includes: Connoisseur(R) MPC advanced control, ROMeo(R) real-time optimization, PRO/II(R) plant simulation and design, ARPM on-line performance monitoring, and Upstream Optimization Suite from Simulation Sciences; Foxboro field instrumentation and I/A Series(R) control systems; Triconex safety and critical control systems; and Invensys Process Magnetic Resonance Analyzer (MRA) solutions. Invensys has also recently introduced Advanced Planning and Scheduling packages for both refineries and ethylene plants. World-class application engineering, implementation, and support services for these and many third-party products and software applications are available globally via Invensys centers of excellence in North America, Europe, and Asia/Pacific. ABOUT INVENSYS Invensys plc is a global leader in production technology and energy management. The group helps customers improve their performance and profitability using innovative services and technologies and a deep understanding of their industries and applications. Invensys' Production Management works closely with customers in order to drive up performance of their production assets, maximize their return on investments in production technologies and remove cost and cash from their whole supply chain. The division includes APV, Avantis, Baan, Eurotherm, Foxboro, SIMSCI/Esscor, Triconex and Wonderware. These businesses address process and batch industries -- including the oil, gas and chemicals, food, beverage and personal health care -- and the discrete and hybrid manufacturing sectors. Invensys' Energy Management works with clients involved in the supply, measurement and consumption of energy and water, to reduce costs and waste and improve the efficiency, reliability and security of power supply. The division includes Energy Management Solutions, Appliance Controls, Climate Controls, Global Services, Metering Systems, Powerware and Home Control Systems. These businesses focus on markets connected with power and energy infrastructure for industrial, commercial and residential buildings. The company also serves the specialized rail, wind-power and electronic manufacturing (power components) markets through Invensys Rail Systems, Hansen Transmissions and Lambda, respectively, in its development division. Invensys operates in more than 80 countries, with its headquarters in London. For more information, visit www.invensys.com. Invensys, Simulation Sciences, PRO/II, Foxboro, I/A Series, Triconex, Connoisseur, and ROMeo are trademarks of Invensys plc, its subsidiaries, or affiliates. All other trademarks are trademarks of their respective owners. Note: Invensys had divested non-core assets as part of its overall plan to improve capital strength and increase strategic focus. CONTACT: Invensys Paul Miller, 508/549-6240 E-mail: paul.miller@invensys.com or Simulation Sciences Maureen Kohaut, 714/626-0319 E-mail: mkohaut@simsci.com or Technip-Colflexip Sylvie Hallemans, +33 (0) 1 47 78 34 85 E-mail: shallemans@technip-coflexip.com KINGFISHER PLC: Notification of Interests of Director ----------------------------------------------------- NAME OF COMPANY: Kingfisher plc NAME OF DIRECTOR: Sir Geoffrey Mulcahy NUMBER OF SHARES/AMOUNT OF STOCK ACQUIRED: 588,957 PERCENTAGE OF ISSUED CLASS: <0.001% NUMBER OF SHARES/AMOUNT OF STOCK DISPOSED: 540,271 PERCENTAGE OF ISSUED CLASS: <0.001% CLASS OF SECURITY: 13.75 pence Ordinary shares PRICE PER SHARE: 173.1 pence exercise price, 201.5 DATE OF TRANSACTION: October 2 2002 DATE COMPANY INFORMED: October 3 2002 TOTAL HOLDING FOLLOWING THIS NOTIFICATION: 766,918 TOTAL PERCENTAGE HOLDING OF ISSUED CLASS FOLLOWING THIS NOTIFICATION: <0.001% AUTHORISED OFFICIAL MAKING THE NOTIFICATION: Julie Wilson, Company Secretarial Assistant Tel: 020 7725 5853 Date of Notification: October 3 2002 KINGFISHER PLC: Notifies Major Interest of Shareholder ------------------------------------------------------ NAME OF COMPANY: Kingfisher Plc NAME OF SHAREHOLDER HAVING A MAJOR INTEREST: Morgan Stanley Securities Limited PERCENTAGE OF ISSUED CLASS: 3.64% CLASS OF SECURITY: ordinary shares of 13.75p each DATE OF TRANSACTION: October 1 2002 DATE THE COMPANY IS INFORMED: October 3 2002 TOTAL HOLDING FOLLOWING THIS NOTIFICATION: 94,106,442 shares TOTAL PERCENTAGE HOLDING OF ISSUED CLASS FOLLOWING NOTIFICATION: 3.64% NAME OF CONTACT AND TELEPHONE NUMBER FOR QUERIES: Julie Wilson Tel: 020 7725 5853 AUTHORISED COMPANY OFFICIAL MAKING THE NOTIFICATION: Julie Wilson Company Secretarial Assistant DATE OF NOTIFICATION: October 3 2002 KINGFISHER PLC: Announces Director Shareholding ----------------------------------------------- Kingfisher plc became aware on 3 October 2002 that certain Directors of Kingfisher plc, whose names are set out below, technically became interested on that date in 34,920 Kingfisher plc ordinary shares of 13.75p each by virtue of the QUEST being allotted the shares and the Directors being potential beneficiaries under the QUEST. Kingfisher plc also became aware on 3 October 2002 that each of the below-named Directors of Kingfisher plc technically ceased to be interested on that date in 34,920 Kingfisher plc ordinary shares of 13.75p each by virtue of the QUEST transferring the shares to employees. Note: For Companies Act purposes, certain Directors of Kingfisher plc, whose names are set out below, together with all employees of the Company, are deemed to have a technical interest in the shares held in Kingfisher's QUEST. The interest ceases when shares are transferred to individuals who exercise their employee ShareSave scheme options. Directors: Sir Geoffrey Mulcahy Mr William Whiting Mr Ian Cheshire Ms Helen Weir M. Jean-Noel Labroue CONTACT: Catherine Callaghan Group Share Schemes Manager Tel: 020 7725 5830 NAVAN MINING: Announces Interim Statement for First Half -------------------------------------------------------- HIGHLIGHTS -Major refinancing and restructuring of the group completed and $21 million net raised in additional equity; -Rescheduling of outstanding debt facilities completed; -Completion of standstill arrangements with major creditors of the group; -Mr Laurence Marsland appointed as new Chief Executive Officer; -New drilling programme at Ada Tepe and Surnak completed; -Implementing optimisation plan at Chelopech; and -Bulgarian subsidiary awarded the Perunika licence, subject to final terms and ratification. The first half of this year was a very difficult period for the Company as management and its advisers dealt with the cash flow crisis of late 2001. With the assistance of its bankers, stockbrokers and a number of major investors, it was possible to undertake a major refinancing and restructuring of the group, which was successfully completed in February 2002. Navan raised $21 million of new equity through a combination of a subscription issue and a rights issue at o0.20 per share and the Company is now entirely focussed on its Bulgarian gold activities, consisting of the Chelopech gold/copper mine and the Krumovgrad and SE Rhodopes gold exploration projects. Mr Laurence Marsland was appointed Chief Executive Officer in February and he has since accelerated the exploration programme at Krumovgrad. Navan has appointed an independent and internationally recognised consulting firm, RSG Global, to manage the drilling programme. Further, an optimisation plan has been developed and is being implemented for the Chelopech mine to expand production to 1.0 million tonnes per annum and a number of management changes have been made in the head office and at the Chelopech operation. Current Financial Position and Results The group incurred a loss after taxation of $7.939m for the half- year compared to a loss of $6.589m for the first half of 2001. Sales revenue for the period was $6.094m, 0.7% above the comparable revenue for 2001 of $6.052m. Operating costs for the 6 months to 30 June 2002 were 35% below those of the first half of 2001 reflecting the suspension of operations in Spain. The operating loss for the period of $4.711m compares to $6.099m for the first half of 2001, not including $1.4m of exceptional costs relating to the care and maintenance of the Spanish operations and the restructuring of the group's debts. It has been necessary to reallocate some $2.5 million as result of holding costs in Spain being in excess of previous allowances and to settle with a number of previously unidentified creditors. These factors, and less than anticipated production at Chelopech, have placed a strain on the company's cash resources. Production - Chelopech Ore production and treatment during the first half of 2002 was 24.4% lower than during the first half of 2001 as a result of the need to focus available resources on mine development. As a result there has been a reduction in ore production that will result in a material reduction in targeted metal production for 2002 as a whole. However, production is expected to rise in the second half of 2002 and reach the targeted annualised rate of 1 million tonnes of ore per annum during the third quarter 2003. As a consequence of the reduced level of ore production, gold production was 4.7% below the comparable period of 2001, while silver and copper were 18.3% and 18.1% lower respectively. In May 2002, following the appointment of Laurie Marsland, an optimisation plan designed to raise throughput of the Chelopech mine to 1.0 million tonnes per annum, was commenced and is beginning to deliver improvements in production. The annualised ore treatment rate for August was 700,000 tpa, up from 550,000 tpa for June. However, in the short term, further incremental improvements will be constrained by availability of capital for overhaul of underground mining equipment and mine development. While production levels have improved, a capital investment of some $2.5 million is required to meet targets. Until then, cashflow will remain severely constrained. KRUMOVGRAD The first phase of diamond drilling at Ada Tepe was finished on June 17, 2002. Ten holes were completed for a total of 1,117 metres drilled. Results to date confirm the presence of epithermal gold mineralisation near surface and broadly conform to the current geological interpretation. The 2002 drill programme at Ada Tepe and Surnak is designed to infill existing drilling and to delineate the extent of mineralisation for the purposes of defining a resource calculation. At Ada Tepe, the drilling is orientated to the south and declined at -60 degrees. The drill holes are designed to intercept the zone of gold mineralisation, known as the 'wall' mineralisation, and the sets of gold bearing epithermal veins located above the 'wall' mineralisation. Drilling to date has hit many more of these upper vein sets than were expected. The programme includes provision for the completion of the 50m x 50m infill drill out (Ada Tepe), the testing of probable extensions to known mineralisation (Ada Tepe and Surnak), and for the drilling of twinned holes (DDH) designed to test the integrity of both the RC component and of historic diamond drilling programmes (Ada Tepe and Surnak). The programme at Ada Tepe was completed at the end of August as planned and at Surnak in early September. At Ada Tepe drill results have been encouraging. In the upper zone, drill holes intercepted more mineralised veins than anticipated, based upon the interpretation of previous surface mapping. The core of the 'wall' zone consistently returned high grade intersections, as anticipated. A resource estimate is being prepared by Perth based consultancy, RSG Global, and will be available early in October. Further on the exploration front, the company's Bulgarian subsidiary, Balkan Mineral and Mining AD (BMM) has been awarded the Perunika licence, subject to negotiation of the contractual terms and ratification by the Council of Ministers. The Perunika licence, which comprises an area of 128 sq. kms, is contiguous with the Krumovgrad licence and covers the northeast extension of the outcropping breccia-conglomerates that host the Ada Tepe mineralisation. This, combined with other nearby licence areas for which the company is applying, adds significantly to Navan's exploration potential in Bulgaria. SPAIN In Spain, Navan has four subsidiary companies, Almagrera SA, Navan Resources (Huelva) SAU, both of which are in 'Suspension of Payments' protection and Navan SAU and Navan G SAU, whose activities have been suspended. All companies are on 'care and maintenance'. Navan has been working with various parties and stakeholders to develop a satisfactory solution to the current position of the four subsidiary companies. The focus has been on transferring the companies as going concerns and to this end Navan entered into a Memorandum of Understanding with two companies, one Spanish and one an international mining company. This joint venture consortium conducted an intensive due diligence and provided significant funding to the subsidiaries for the ongoing care and maintenance costs in exchange for an issue of Navan Mining plc shares to one of the joint venture parties. Navan has issued two tranches of new shares, totalling just over 1.3 million shares for cash at a price of o0.15 per share and a final small issuance of shares will be made following the completion of the due diligence. As a consequence, this third party will own approximately two million shares of Navan, equal to less than one percent of the Company's total issued capital. In the last month Navan has been advised that the joint venture consortium has declined to issue an offer as envisaged in the Memorandum of Understanding. The boards of the Spanish companies are currently considering other options, which may include the liquidation of Navan's Spanish subsidiaries. ENRON A settlement agreement is currently under negotiation with Enron, and is believed to be close to finalisation. In accordance with US bankruptcy law, any settlement agreed is subject to the approval of the Southern District Bankruptcy Court of New York. OUTLOOK Despite the financial constraints under which the company is operating, management is optimistic that it can attract the capital required to move the company forward. Shortly, a resource estimate for the Ada Tepe deposit will be available, which will enable the company to properly evaluate its potential. Further, improvements can be seen in the performance of the Chelopech operation, which, with modest capital investment, is targeted to break even during the second quarter of 2003 and reach the targeted production level of 1.0 million tpa by the end of the third quarter 2003. The anticipated resolution of the issues in Spain and finalisation of the Enron payment, expected within a few weeks, will allow Navan to finally focus fully on its Bulgarian assets. The release of an updated ore resource estimate at Ada Tepe will be a key pointer for indicating the way forward for the group. Once the resource estimate is available, the company intends to raise additional funds to meet capital requirements. The company continues to benefit from the dedication and hard work of its employees, support of its shareholders and the cooperation of its bankers, brokers, prefinanciers and suppliers. Management thanks them and looks forward to continuing to work with them as we move forward. To view unaudited consolidated profit and loss account for the six months ended 20 June 2002, refer to the complete report from UK-Wire: http://bankrupt.com/misc/navan.pdf CONTACT: Laurie Marsland Chief Executive Tel:07775 501 181 Simon Olsen Acting Chief Financial Officer Tel: 01256 353 312 Keith Irons Bankside Consultants Tel:020 7444 4155 / 07885 356 639 NAVAN MINING: Announces Dealings by Substantial Shareholders ------------------------------------------------------------ NAME OF COMPANY: Navan Mining Plc NAME OF SHAREHOLDER HAVING A MAJOR INTEREST: Matopos Holdings Limited NAME OF THE REGISTERED HOLDER: Willbro Nominees Limited NUMBER OF SHARES/AMOUNT OF STOCK ACQUIRED: 900,000 (0.39%) of issued Class CLASS OF SECURITY: ordinary shares GBP0.15 DATE OF TRANSACTION: September 30 2002 DATE THE COMPANY IS INFORMED: October 1 2002 TOTAL HOLDING FOLLOWING THIS NOTIFICATION: 11,387,709 TOTAL % HOLDING OF ISSUED CLASS FOLLOWING THIS NOTIFICATION: 5.01% NAME OF CONTACT AND TELEPHONE NUMBER FOR QUERIES: Simon V Olsen Company Secretary Tel: 01256 323312 DATE OF NOTIFICATION: October 1 2002 NAVAN MINING: Announces Completion of Krumovgrad Drilling Program ----------------------------------------------------------------- Navan Mining plc (NVM.L) announces that the 2002 drilling programme at its gold exploration project at Krumovgrad, southern Bulgaria, has been completed. A significant number of gold mineralized intercepts have been returned and a revised resource estimate will be published by mid-October. Results from the new drill holes confirm the presence of epithermal gold mineralisation near to surface and several high- grade intersections confirm the prospectivity of the area. Several intersections show grades above 10 grams of gold per tonne. All the drill results not previously published, are attached. The 2002 drill programme at Ada Tepe and Surnak is designed to infill existing drilling and to delineate the extent of mineralisation for the purposes of defining a resource calculation. At Ada Tepe, the drilling is orientated to the south and declined at -60 degrees. The drill holes are designed to intercept the zone of gold mineralisation, known as the 'wall' mineralisation, and, the sets of gold bearing epithermal veins located above the 'wall' mineralisation. Drilling to date has hit many more of these upper vein sets than were expected. The programme included provision for the completion of the 50m x 50m infill drilling at Ada Tepe, the testing of probable extensions to the known mineralisation at Ada Tepe and Surnak, and for the drilling of twinned holes (DDH) to test the integrity of both the RC component and of earlier diamond drilling programmes at Ada Tepe and Surnak. The programme at Ada Tepe was completed at the end of August as planned and at Surnak in early September. A resource calculation is being prepared by Perth based consultancy, RSG Global and will be available shortly. The tables below contain the results for all the outstanding drill holes. A total of 6193 metres have been drilled in 71 holes, comprising 54 holes of reverse circulation (RC) drilling, totalling 4,546 metres and 17 diamond drill holes, totally 1,647 metres. The mineralised intervals have been calculated using a 0.5 g/t Au lower cut off, a maximum 2 metre interval of internal waste and no upper cut. To view table of significant results, refer to the date sourced from UK-Wire: http://bankrupt.com/misc/navan3.pdf CONTACT: Laurie Marsland Chief Executive Tel: 07775 501 181 Simon Olsen Acting Chief Financial Officer Tel: 01256 353 312 Keith Irons Bankside Consultants Tel: 020 7444 4155 / 07885 356 639 PEARL ASSURANCE: Parent Might Abandon British Business ------------------------------------------------------ Andrew Mohl, new chief executive of Australian insurance group, AMP, admitted the company might exit U.K. operations, which include Pearl Assurance and NPI, according to Times Online. Late in September, Dow Jones reported that Australia's largest insurance company said, the group does not need to inject additional shareholder capital to Pearl life insurance, the business it acquired for GBP1.24 billion in 1989. The U.K.-based insurer was then in the verge of falling below a key FTSE 3700- point benchmark. The firm's capital base was badly affected by falling global equity prices. The report says, AMP has allotted as much as GBP500 million to prop Pearl's balance sheet. The amount was estimated based on current variables and the group promised to adjust the funding to meet changing circumstances. While admitting that the company is reviewing its U.K. operations, Mr. Mohl said, "My view is that, with 20:20 hindsight, we wouldn't have invested as much capital in the U.K. as we have." There are analysts who believe the group could abandon the operation when market conditions allow a sale to be a realistic option. WORLDCOM INC.: Wants to Assume EDS Outsourcing Subcontract ---------------------------------------------------------- Lori R. Fife, Esq., at Weil Gotshal & Manges LLP, in New York, recounts that on October 20, 2000, Worldcom Inc., together with its debtor-affiliates and EDS Customer Relationship Management Inc. entered into a purchase agreement pursuant to which WorldCom transferred to EDS certain assets, including, inter alia, physical assets, employees and material contracts associated with the Debtors' call center business. Although many customers with whom the Debtors had contracted to provide call center services consented to the assignment of their contracts to EDS, a number of the Debtors' customers, including Chrysler financial Company LLC, did not. Because Chrysler and other call center customers were neither willing nor required to consent to the assignment of their contracts to EDS, Ms. Fife relates that the Debtors and EDS entered into the Call Center Outsourcing Subcontract Agreement pursuant to which EDS agreed to act as a subcontractor of the Debtors by providing call center services to certain of its customers. Under the terms of the Subcontract, EDS has functioned, and continues to function, as a subcontractor to the Debtors in performing its obligations to Chrysler under that certain Call Center Services Agreement by and between Chrysler and MCI WorldCom Communications, Inc., dated December 3, 1998, as amended. Although EDS is a subcontractor who performs the Debtors' contract obligations to Chrysler, the Debtors nonetheless remains liable to Chrysler for any performance failures by EDS. Ms. Fife informs the Court that the Debtors receives revenues from Chrysler under the terms of the Contract, and those revenues are, in turn, payable by the Debtors to EDS under the terms of the Subcontract. The Debtors does not earn a profit on the Contract and it remits substantially all revenues received under the Contract to EDS. Accordingly, the Debtors does not benefit from the Contract despite its ongoing exposure to liability for performance failures by EDS. The Debtors seek the Court's authority to assume and assign the contract to EDS pursuant to Section 365 of the Bankruptcy Code. Chrysler supports the proposed assumption and assignment of the Contract to EDS due to the fact that: -- the provision of services by EDS directly to Chrysler will result in cost savings, and -- Chrysler prefers to directly contract with a counterparty that is not a debtor-in-possession. Because the assumption and assignment of the Contract to EDS will benefit the Debtors' estates by extinguishing their exposure to liabilities arising under the Contract and will engender the goodwill of Chrysler -- a client from whom the Debtors receive $80,000,000 a year in revenues under the terms of a General Services Agreement -- the Debtors assert that the assumption and assignment of the Contract to EDS in is the best interests of their estates. Ms. Fife assures the Court that there are currently no defaults by either party to the Contract and no cure payments will be payable by either the Debtors or their estates upon the assumption and assignment of the Contract to EDS. Although the Debtors will no longer receive payments from Chrysler under the terms of the Contract, the Contract does not benefit the Debtors because the Contract payments are largely repayable to EDS pursuant to the Subcontract. Under the terms of the proposed assumption and assignment of the Contract, Ms. Fife explains that all parties will be forever barred from asserting against the Debtors or their estates any cure or other amounts relating to either the Contract or that portion of the Subcontract that relates to the Contract, save and except for those pre-petition amounts incurred by the Debtors and owing to EDS under the terms of the Subcontract for services rendered by EDS to Chrysler. The assignment of the Contract to EDS will constitute adequate assurance of future performance of the Contract. Ms. Fife asserts that the "business judgment" standard is clearly satisfied in this case because assumption and assignment of the Contract will: -- eliminate the Debtors' exposure to ongoing liabilities arising under the Contract, and -- obviate the Debtors' need to reject the Contract, thereby avoiding any rejection damage claims associated therewith. (Worldcom Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., 609/392-0900) DebtTraders reports that Worldcom Inc.'s 8.000% bonds due 2006 (WCOM06USN1) are trading between 12.75 and 13.25 . See http://www.debttraders.com/price.cfm?dt_sec_ticker=WCOM06USN1 for real-time bond pricing. *********** 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 * * *