/raid1/www/Hosts/bankrupt/TCREUR_Public/021108.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Friday, November 8, 2002, Vol. 3, No. 222
Headlines
F R A N C E
ALCATEL: Strengthens Internet Access Portfolio With CommWorks
ALCATEL: Wins Huge Weather Satellite Ground Stations Contract
ALCATEL: China Telecom Gains Nationwide Coverage with Alcatel
VIVENDI UNIVERSAL: Vodafone Renews Cash Offer for Cegetel
VIVENDI UNIVERSAL: Announces Cegetel Presentation
VIVENDI UNIVERSAL: Agrees On Pre-emptive Right Period
G E R M A N Y
DEUTSCHE TELEKOM: Supervisory Board Chairman Selection Pending
DEUTSCHE TELEKOM: Staff Elects Supervisory Board Representatives
MOBILCOM AG: Future Rests on Negotiations' Results
HVB GROUP: Launches Its Largest Securitization Transaction
I T A L Y
CIRIO: Holds Talks With Creditors Regarding Bonds
FIAT AUTO: Posts Drop in Italian Car Sales for October
TELECOM ITALIA: Board Approves TIM's Results As Of September 30
TELECOM ITALIA: Completes Sale Of 15% of Telekom Austria
TELECOM ITALIA: Denies Rumors of the Sale of IMMSI
N E T H E R L A N D S
ASM INTERNATIONAL: S&P Revised Outlook on Liquidity Concerns
P O L A N D
ELEKTRIM SA: Gives The Law Debenture Trust Powers of Attorney
NETIA HOLDINGS: Court Ratifies Composition Plans for Subsidiaries
S W E D E N
LM ERICSSON: Supports Royalty Rates for W-CDMA Technology
LM ERICSSON: Employees Suspected of Corporate Espionage
LM ERICSSON: Cooperate With Swedish Police to Halt Espionage
LM ERICSSON: Partners with GNP to Develop Signaling Platform
S W I T Z E R L A N D
ABB LTD.: Company Profile Issued
CREDIT SUISSE: Names Head of Swiss Corporate & Retail Banking
SWISS LIFE: Appoints Rolf Dorig As New Chief Executive Officer
SWISS LIFE: Standard & Poor's Updates CreditWatch Outlook
U N I T E D K I N G D O M
TELEWEST COMMUNICATIONS: Announces Disposal of SMG Interest
- - - - - - - -
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F R A N C E
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ALCATEL: Strengthens Internet Access Portfolio With CommWorks
-------------------------------------------------------------
Alcatel (Paris: CGEP.PA and NYSE: ALA) and CommWorks, a 3Com
company (NASDAQ: COMS), on Wednesday announced the signing of a
partnership agreement to deliver advanced Internet protocol (IP)-
based access solutions to service providers around the world.
This agreement empowers Alcatel to sell CommWorks Total Control
1000 dial-IP/media gateways as a key component of its Next
Generation Network portfolio.
This partnership enables both companies to address the growing
Internet access market by offering service providers a complete
solution that enables them to efficiently and cost-effectively
face Internet dial-up traffic in their traditional network.
Alcatel and CommWorks have already announced that Turk Telecom
will deploy an IP-based dial access and Voice over IP (VoIP)
network in Turkey using equipment from the two companies. Turk
Telecom's deployment enables them to efficiently and effectively
address the growing amount of Internet dial-up traffic in their
traditional network. It will also enable them to smoothly migrate
towards next generation networks and offer additional services
such as click-to-call, Internet call waiting, virtual second line
and advanced call forwarding.
"There is strong demand in many markets around the world for
infrastructure that expands Internet access and deliver
innovative communications services," said Dennis Connors,
President, CommWorks. "By collaborating with Alcatel, we enhance
our ability to reach service provider customers with the
technologies that allow them to offer their customers unique and
compelling new services."
Ludwig De Maeyer, President of Alcatel voice network activities,
said : " With this partnership, Alcatel has enlarged its
portfolio and its global offer of NGN solutions to its customers.
We have selected CommWorks as a partner because of its leading
edge remote access server portfolio and its strong knowledge of a
carrier's Internet access service needs and requirements."
About CommWorks
CommWorks, a 3Com company, supplies network service providers
around the world with access infrastructures and IP services
platforms that open new business opportunities and help them
establish unique positions in a competitive marketplace. With
flexible multi-service hardware platforms and modular software
components, the comprehensive CommWorksr architecture makes it
possible for service providers to integrate their existing
infrastructures with innovative technologies to deliver an array
of next-generation IP-based enhanced services to their customers.
For further information, visit www.commworks.com.
About 3Com Corporation
3Com is a tier-one provider of innovative, practical and high-
value networking products for enterprise customers. 3Com is also
a leader in Internet protocol (IP) service platforms and access
infrastructure for the network service provider market. For
further information, please visit www.3com.com, or the press site
www.3com.com/pressbox.
3Com, Total Control and CommWorks are registered trademarks and
the CommWorks logo is a trademark of 3Com Corporation.
About Alcatel
Alcatel designs, develops and builds innovative and competitive
communications networks, enabling carriers, service providers and
enterprises to deliver any type of content, such as voice, data
and multimedia, to any type of consumer, anywhere in the world.
Relying on its leading and comprehensive products and solutions
portfolio, stretching from end-to-end optical infrastructures,
fixed and mobile networks to broadband access, Alcatel's
customers can focus on optimizing their service offerings and
revenue streams. With sales of EURO 25 billion in 2001 and 99,000
employees, Alcatel operates in more than 130 countries.
ALCATEL: Wins Huge Weather Satellite Ground Stations Contract
-------------------------------------------------------------
Alcatel Space has been awarded a contract by the Meteorological
Department of Kenya for the supply and installation of 47
receiving stations for Meteosat Second Generation (MSG) weather
satellites in 45 African countries. The work is being carried out
in the framework of the PUMA project (Preparation of the Use of
MSG1 in Africa), launched in 1996 by EUMETSAT (European
Organisation for the Exploitation of Meteorological Satellites)
and the European Commission. It will signify a considerable step
forward in weather forecasting for Africa and the Indian Ocean.
The European Commission is providing funding via the European
Development fund to deploy integrated receiving stations that
will improve the accuracy and frequency of meteorological data in
the region.
Under the contract, Alcatel Space is responsible for the supply
of all equipment, plus on-site installation of the ground
stations and initial user training. VCS Engineering of Germany
will provide some receiving and data processing hardware and
software.
Six test centers are to be delivered to Kenya, Niger, Senegal,
Cameroon, Zimbabwe and Mauritius over the next six months. These
centers will mainly be used to train future users for all
countries involved. All stations should be installed within less
than 20 months.
MSG-1 data will considerably strengthen environmental monitoring
throughout Africa with better and more timely information to help
predict natural disasters, improve food security, and ensure more
efficient water use and safer transport.
"Alcatel Space is very proud that it is able to contribute its
expertise to this initiative, which will build on meteorological
capabilities to open doors to environmental monitoring and
sustainable development in Africa," said Pascale Sourisse,
Chairman and CEO of Alcatel Space.
MSG-1 is the first second-generation satellite in this series,
taking over from the seven Meteosat satellites also supplied by
Alcatel Space, which have been keeping a "weather watch" for a
quarter of a century. It is a very dependable satellite,
reflecting Alcatel Space's vast experience and confirming its
leadership in the construction of weather satellites. Alcatel
Space has already supplied the main ground segment for the
Meteosat Transition Programme (MTP), and will also provide the
Ground Segment for the EUMETSAT Polar System (EPS).
About EUMETSAT
EUMETSAT is an intergovernmental organization that establishes
and maintains operational meteorological satellites for 18
European States (Austria, Belgium, Denmark, Finland, France,
Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands,
Norway, Portugal, Spain, Sweden, Switzerland, Turkey and the
United Kingdom). EUMETSAT already has four other Cooperating
States (Slovakia, Hungary, Poland and Croatia). The images and
data from Meteosat make a significant contribution to weather
forecasting and to the monitoring of the global climate.
About Alcatel Space
Alcatel Space is no 3 in the world and Europe's leading satellite
manufacturer. Leveraging its dual expertise in civil and military
applications, Alcatel Space develops satellite technology
solutions for telecommunications, navigation, optical and radar
observation, meteorology, and scientific applications. The
company is also Europe's number one prime contractor for Earth
observation, meteorology and navigation ground segments, as well
as space systems operations. A fully-owned subsidiary of Alcatel
(100%), Alcatel Space generated 2001 revenues of 1.4 billion
Euros.
About Alcatel
Alcatel (Paris: CGEP.PA and NYSE: ALA) 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.
ALCATEL: China Telecom Gains Nationwide Coverage with Alcatel
-------------------------------------------------------------
Switching and transmission solutions will provide voice and data
services nationwide and enhance operational efficiency
Alcatel (Paris: CGEP.PA and NYSE: ALA), the world's largest
telecom infrastructure provider, announced today that it has
helped China Telecom, one of China's two major fixed-line
telecommunications operators, achieve nationwide coverage for the
first time since the operator's restructuring earlier this year.
This was done through three contracts for switching and
transmission solutions that China Telecom awarded to Alcatel
recently. The contracts were won through Alcatel Shanghai Bell,
Alcatel's Chinese flagship company.
These contracts will enable China Telecom to deliver voice and
data services nationwide and enhance its network operational
efficiency. They include the deployment of a transit-switching
network and the related signaling network in northern China, as
well as a digital cross-connect expansion project in major
central and southern Chinese cities.
Alcatel will provide its Alcatel 1000 switching solutions and
Signaling Transfer Point (STP) equipment to build China Telecom's
first transit-switching network in northern China since its
restructuring. This network will span the two municipalities of
Beijing and Tianjin, and eight provinces: Hebei, Heilongjiang,
Henan, Inner Mongolia, Jilin, Liaoning, Shandong and Shanxi.
Enabling inter-network transactions between China Telecom and
other service providers, it will be operational by end of this
year.
Alcatel will install its Alcatel 1641 SX Multiservice Metro
Gateway, a synchronous digital hierarchy (SDH) multi-service
cross-connect system, in the cities of Shanghai, Guangzhou,
Chongming and Shantou to interconnect the switching and
transmission infrastructures. The expansion will enable China
Telecom to offer high-quality and reliable international telecom
services throughout China. Alcatel will also deploy its
integrated end-to-end network management solution to efficiently
perform traffic control and routing throughout the network.
Andrew Young, President of Alcatel Shanghai Bell, said, "We are
proud to be China Telecom's vendor of choice to help them extend
their service coverage nationwide. These contracts reinforce our
long-term relationship with China Telecom. They are concrete
proof that our telecom solutions for advanced operators such as
China Telecom meet high demand from businesses, as China
continues its rapid economic growth."
As a pioneer in China's switching market, Alcatel now leads the
market with one-third share. In 2001, Alcatel manufactured a
total of 16 million switching lines in China.
China's Ministry of Information Industry (MII) restructured China
Telecom in early 2002 to create China Telecom and China Netcom to
compete with each other. China Netcom absorbed the telecom assets
in northern China, while China Telecom retained those in the
south. This contract enables China Telecom to interconnect with
other service providers in northern China to provide competitive
services, as well as continue servicing its current customers
there.
About Alcatel 1000 switching systems
Alcatel 1000 is a powerful switching platform with fully
distributed processing and control. It has a unique architecture,
providing both network operators and end-users with reliability
and quality of service for voice and multimedia applications. Due
to its high modularity, Alcatel 1000 is a cost-effective solution
throughout the range from very small to large exchange sizes. The
feature-richness software package is suited in a rapidly changing
business and multi-vendor environment. The Alcatel 1000 systems
are present in more than 145 countries and total more than 320
million terminations.
About the Alcatel 1641 SX
The Alcatel 1641 SX multi-service metro gateway is a synchronous
cross connect product that lets operators add features and
increase capacity under live traffic. The system performs cross
connections between all types of PDH and SDH ports, helping
provide the highest flexibility and performance for present and
future network requirements. It offers a full range of SDH/SONET
function, including multiplexing, grooming and segregation,
protection and performance monitoring.
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.
About Alcatel Shanghai Bell
Alcatel Shanghai Bell is the first foreign-invested company
limited by shares in the telecommunications sector in China, with
Alcatel holding 50%+1 shares and Chinese shareholders holding the
remainder. The multibillion-dollar telecom technology leader
delivers end-to-end telecommunications solutions and high-quality
services, covering the fixed, mobile networking, broadband
access, intelligent optical networking, multimedia solutions and
network applications. It also has a key international R&D center
with full access to Alcatel's global technology pool, developing
original technology for use in China and export to Alcatel's
customers worldwide. With an advanced manufacturing center, and
the most extensive sales and support network in China, it is the
only company capable of meeting the global needs of Chinese
customers. For more information, visit Alcatel Shanghai Bell on
the Internet at: http://www.alcatel-sbell.com.cn
VIVENDI UNIVERSAL: Vodafone Renews Cash Offer for Cegetel
---------------------------------------------------------
Vodafone renewed its EUR6.77 billion (USD6.56 billion) cash offer
for Vivendi Universal's stake in Cegetel, which the French
communications company previously deemed as too low.
The refusal prompted Moody's to downgrade Vivendi's senior
implied rating from Ba2 to Ba3.
According to the Financial Times, analysts said the offer for
Vivendi's 44% stake was fair and in line with current telecoms
valuations. Emmet Kelly telecoms analyst at BNP Paribas said the
offer for Cegetel, which controls SFR, a French mobile phone
operator, values SFR at about 7.4 times next year's EBITDA
(earnings before interest, tax, depreciation and amortization).
"I think shareholders would like Vivendi to accept the offer, and
I am sure its lender banks would rather see EUR6.8bn in cash come
in rather than up to EUR6.6bn cash going out," Mr. Kelly says.
Vodafone calculates that its offer would allow Vivendi cut debt
of up to EUR7.2 billion, by assuming EUR400 million of Cegetel
has EUR19 billion in debt.
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
VIVENDI UNIVERSAL: Announces Cegetel Presentation
-------------------------------------------------
On November 5 and 6, Cegetel met with about 30 equity research
analysts who closely follow the Company's telecom business.
Vivendi Universal [NYSE: V; Paris Bourse: EX FP] has made the
Cegetel presentation slides available on its financial website
at:
http://finance.vivendiuniversal.com/finance/download/index.cfm#an
cre4
Also, Cegetel shareholders agreement is available at :
http://www.vivendiuniversal.com/vu2/fr/files/pacte.pdf
The following projections were included in Cegetel's
presentation:
-----------------------------------------------------------------
2001 Variation CAGR
2001/2004
Actual 2001/2002
Estimated
In Euro millions Estimated
-----------------------------------------------------------------
-----------------------------------------------------------------
Revenues 6,384 +9%
>+10%
EBITDA 1,706 >+30%
>+20%
Operating Income 914 >+50%
>+30%
Operating Free Cash Flow* 1,141 >+15% >+6%
*after tax and financing costs
CONTACTS: Vivendi Universal
Investor Relations (Paris)
Laurence Daniel
Phone: +33 (1).71.71.1233
(New York)
Eileen McLaughlin
Phone: +(1) 212.572.8961
VIVENDI UNIVERSAL: Agrees On Pre-emptive Right Period
-----------------------------------------------------
Vivendi Universal (NYSE: V; Paris Bourse: EX FP) announces that
it has reached an agreement with Vodafone Group Plc, BT Group plc
and SBC Communications Inc. regarding Vivendi's pre-emptive
rights over the interests in Cegetel Groupe S.A. which Vodafone
has agreed to acquire from BT and SBC.
As a result of this agreement, it is confirmed that Vivendi
Universal will be entitled to exercise its pre-emptive rights
until December 10, 2002.
CONTACT: Vivendi Universal
Investor Relations:
Paris
Laurence Daniel
Phone: +33 (1) 71-71-1233
New York
Eileen McLaughlin
Phone: 212/572-8961
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G E R M A N Y
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DEUTSCHE TELEKOM: Supervisory Board Chairman Selection Pending
--------------------------------------------------------------
Deutsche Telekom Supervisory Board Chairman Hans-Dietrich
Winkhaus told newspaper Handelsblatt that the company's
supervisory board will possibly select its new chief executive at
a meeting on November 14.
Interim Helmut Sihler said in a letter to staff that the company
had completed its selection of potential candidates. The choices
have reportedly been down to five, and it is believed that T-
Mobile director Kai-Uwe Ricke is among them.
Mr. Sihler and Mr. Winkhaus had appointed management consultancy
Ifp Institut fur Personal- und Unternehemsberatung to assist them
with the search for a new head. Both are to make proposals to the
supervisory board regarding the new chairman before a final
decision is taken.
DEUTSCHE TELEKOM: Staff Elects Supervisory Board Representatives
----------------------------------------------------------------
The employees elected their representatives to Deutsche Telekom's
Supervisory Board during a delegates conference held in
Dusseldorf on November 6, 2002. Ten of the 20 Supervisory Board
seats are held by employee representatives and 10 by shareholder
representatives. The newly elected employee representatives take
up their duties at the end of the conference.
The following employee representatives were elected to the
Supervisory Board:
Rdiger Schulze, ver.di trade union, Federal Department Head, re-
elected to the Supervisory Board, where he has been a member
since March 29, 1999.
Monika Brandl, member of the General Works Council, elected to
the Supervisory Board for the first time on November 6, 2002.
Josef Falbisoner, Head of ver.di District of Bavaria, re-elected
to the Supervisory Board, where he has been a member since
October 2, 1997.
Lothar Holzwarth, chairman of the works council of the Sales
Office Sdwest, Stuttgart, was elected to the Supervisory Board
on November 6, 2002. He already served a term on the Supervisory
Board from January 1, 1995 until June 30, 1996.
Waltraud Litzenberger, member of the Works Council of Deutsche
Telekom's Eschborn Networks Branch Office, re-elected to the
Supervisory Board, where she has been a member since June 1,
1999.
Michael L"ffler, member of the Works Council at Deutsche
Telekom's Dresden Networks Branch Office, re-elected to the
Supervisory Board, where he has been a member since January 1,
1995.
Wolfgang Schmitt, Deutsche Telekom, Stuttgart, re-elected to the
Supervisory Board, where he has been a member since October 2,
1997.
Michael Sommer, Chairman of the Federation of German Trade
Unions, re-elected to the Supervisory Board, where he has been a
member since April 15, 2000.
Ursula Steinke, Chairwoman of the Works Council at T-Systems CSM
in Kiel, re-elected to the Supervisory Board, where she has been
a member since January 1, 1995.
Wilhelm Wegner, Chairman of Deutsche Telekom's Central Works
Council and Group Works Council, re-elected to the Supervisory
Board, where he has been a member since July 1, 1996.
No longer on the Supervisory Board: Rainer R"ll, Member of the
Supervisory Board since November 6, 1998, and Rainer Koch, member
of the Supervisory Board since April 12, 2000
The following members of the Supervisory Board are shareholder
representatives. They were elected at the 2001 Shareholders'
Meeting.
Dr. Hans-Dietrich Winkhaus, Chairman of the Supervisory Board of
Deutsche Telekom AG since May 25, 2000, member of the
Shareholders' Committee of Henkel KgaA, member of the Supervisory
Board since May 27, 1999.
Gert Becker, former Chairman of the Board of Management of
Degussa AG, has been a member of the Supervisory Board since
January 1, 1995.
Dr. Huberts von Grnberg, Dipl. Physiker, Dr. of Physics,
Chairman of the Supervisory Board of Continental AG, member of
the Supervisory Board since May 25, 2000.
Dr. sc. techn. Dieter Hundt, Managing Sharehold of Allgaier Werke
GmbH, President of the National Union of German Employer
Associations, member of the Supervisory Board since January 1,
1995.
Dr. h.c. Andr, Leysen, Chairman of the Board of Directors of
Gevaert N.V. Mortsel, Antwerp, member of the Supervisory Board
since January 1, 1995.
Hans-W. Reich, Chairman of the Board of Managing Directors,
Kreditanstalt fr Wiederaufbau (KfW), Frankfurt am Main, member
of the Supervisory Board since May 27, 1999.
Prof. Dr. Helmut Sihler has been a member of the Supervisory
Board of Deutsche Telekom since July 1, 1996. He was Chairman of
the Supervisory Board from July 1, 1996 to May 25, 2000. The
Supervisory Board delegated Prof. Sihler to Deutsche Telekom's
Board of Management as of July 16, 2002, which he presides over
as Chairman. His seat on the Supervisory Board has been suspended
for the duration of his delegation.
Prof. Dr. h.c. Dieter Stolte, former Director General of ZDF
(Zweites Deutsches Fernsehen) TV broadcasting organization,
Editor of the Welt and Berliner Morgenpost daily newspapers,
member of the Supervisory Board since January 1, 1995.
Bernhard Walter, former Chairman of the Board of Managing
Directors of Dresdner Bank, Frankfurt am Main, member of the
Supervisory Board since May 27, 1999.
Prof. Dr. Heribert Zitzelsberger, State Secretary in the Federal
Ministry of Finance, member of the Supervisory Board since May
27, 1999.
MOBILCOM AG: Future Rests on Negotiations' Results
--------------------------------------------------
The ultimate fate of troubled German telecoms group MobilCom may
be unveiled soon depending on talks between its former head and
the government.
According to a trade union, MobilCom will file for insolvency on
Thursday if its former head Gerhard Schmid and the government
could not agree on a deal that could lead to a debt refinancing
plan for the company.
An IG Metall union spokesman told Reuters: "If nothing happens
today, they will be going to the insolvency court tomorrow.''
The parties were not able to agree on the transfer of Schmid's
around 50% stake in MobilCom to an outside trustee. A spokeswoman
for Schmid said the talks went beyond the November 5 deadline.
Meanwhile, in a Bloomberg report citing Financial Times
Deutschland, Mr. Schmid was reported to have transferred about a
third of his stake in the wireless services provider to his wife,
Sybille Schmid-Sindram.
Schmid-Sindram now holds about 11% of MobilCom shares and
controls another 8% through her stake in the company Millenium.
The move undermines an agreement about a trustee, the report
says.
CONTACT: MOBILCOM AG
Hollerstraáe 126
D-24782 Bdelsdorf, Germany
Phone: +49-43-31-69-11-73
Fax: +49-43-31-69-28-88
Home Page: http://www.mobilcom.de
HVB GROUP: Launches Its Largest Securitization Transaction
----------------------------------------------------------
"Building Comfort 2002-1" is the biggest securitization
transaction launched so far by HVB. The residential mortgage-
backed securities (RMBS) transaction has a total volume of EUR5
billion. With this synthetic transaction, HypoVereinsbank is
outplacing risk from the mortgage loans of its private customers.
The HVB Group plans to complete securitization transactions
amounting to a total EUR25bn this year. The aim is to reduce risk
capital and strengthen the bank's equity within the framework of
Group-wide liquidity and balance-sheet management.
Through this transaction, the risks from almost 56,000 private
mortgage loans on properties are removed from HypoVereinsbank's
books and securitized in a synthetic MBS transaction. S&P and
Fitch gave 97.4% of the pool a AAA rating. A total of EUR235m
will be placed with institutional investors as Notes in the
capital market. Credit Default Swaps cover the remaining the
risk. This is the fifth RMBS deal placed by the HVB Group
Individual loans in the portfolio to be securitized amount to a
maximum ?1m and an average of roughly EUR89,400. The loans have
been extended to over 45,000 different borrowers all over
Germany, with approximately 16% going to the new federal states.
The average age of loans in the pool is very high at 4.8 years,
which promises better performance than in the case of more
recently concluded loans.
The weighted average LTAV ratio equals only 69.3% with no loan
exceeding 100%. The transaction term is expected to be six years.
The Notes are expected to be called at this point as the
transaction then becomes uneconomical for the issuer. The pool is
static. There is no substitution risk for the investors.
With Building Comfort 2002-1, the HVB Group will succeed in
relieving equity, as loan risks which are taken over by third-
parties do not have to be backed by equity. The risk structure is
also improved in this way, which lowers risk and equity costs for
the bank. Thus the transaction enables HVB to grant new loans.
CONTACT: Dr. Knut Hansen, Tel. 089/378-24644
E-mail: knut.hansen@hvbgroup.com
Bayerische Hypo- und Vereinsbank AG
Presseabteilung
Am Tucherpark 16
80538 Mnchen
Phone: (089) 378-2 58 01/-2 55 12
Fax: (089) 378-2 56 99
=========
I T A L Y
=========
CIRIO: Holds Talks With Creditors Regarding Bonds
-------------------------------------------------
Italian food group Cirio was in negotiations with creditors to
avoid default on a bond.
According to the Financial Times, Cirio failed to reimburse
investors of a EUR159-million two-year bond that matured on
November 3.
The group has another EUR825 billion in bonds coming due in the
next three years. It is believed that the bonds have similar
sized debt with leading Italian banks, particularly Banca
Nazionale del Lavoro and Capitalia, formerly Banca di Roma.
The danger of the group's default is seen to jeopardize Italy's
top football teams at the same time, as the company's owner also
controls SS Lazio, one of Italy's best football clubs.
Cirio also owns 35% of Lazio, a club which nearly succumbed to
bankruptcy early this year if not for two creditor banks who
provided it with the needed capital increase.
The food group's trouble is seen to affect Lazio in the short
term, according to people familiar with the situation. They
warned that the club is in danger of facing severe financial
strain next year.
FIAT AUTO: Posts Drop in Italian Car Sales for October
------------------------------------------------------
Transport ministry data showed that Fiat Auto registered a 21%
drop in car sales in Italy last month in comparison with figures
a year ago. The results in Fiat's auto making division contrasts
with that of rival carmakers who saw sales rise in October in the
region. Overall Italian market actually just fell 3.9%.
The auto maker blamed the downward move to the new policy it
instituted earlier this year of drastically reducing the
unprofitable sale of cars to rental agencies and of lightly used
demonstration models.
Fiat Auto's share in its largest market fell to 29.2% from 35.5%
a year ago.
Fiat Auto, which earlier announced a nine-month operating loss of
EUR1.16 billion (US$1.16bn), has plans of undertaking long-term
temporary lay-off plan for more than one fifth of its domestic
workers.
Last week, parent Fiat was forced to accelerate the plan after
political upheaval due to massive lay-offs on the unit broke out.
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: Board Approves TIM's Results As Of September 30
---------------------------------------------------------------
The Board of Directors of TIM (TELECOM ITALIA Group) chaired by
Carlo Orazio Buora has today approved its report on business
operations for the period closing 30 September 2002 as proposed
by the Chief Executive Officer Marco De Benedetti.
TIM Group Consolidated
In the first nine months of 2002, the consolidated revenues of
the TIM Group amounted to euro 8,010 million a 6.3% growth,
(11.2% if allowance is made for the depreciation of the exchange
rates.) During the third quarter the consolidated revenues of the
TIM Group amounted to euro 2,825 million representing a year on
year growth of 8.6%.
Gross operating profit for the first nine months of 2002 amounted
to euro 3,903 million, representing a 7.4% increase compared to
the same period in 2001. Net of exchange rate effects, the
increase in the gross operating profit is 10%. The gross
operating profit ratio rose to 48.7% (48.2% in the first nine
months of 2001). During the third quarter the gross operating
profit amounted to euro 1,415 million a year on year growth of
12.6%. with respect to the same period in 2001 and a gross
operating profit ratio of 50.1% (48.3% in 2001).
Operating income for the first nine months at euro 2,713 million
was 7.6% higher than in 2001 for the same period. The operating
income for the third quarter of 2002 rose to euro 1,029 million
compared to euro 904 million in the third quarter of 2001.
Profit before extraordinary items and tax for the first nine
months was euro 2,290 million, representing a 15.4% year on year
increase and yielding a profit margin that rose from 26.4% in
2001 to 28.6% in 2002.
Consolidated net income for the first nine months pertaining to
the parent company amounts to euro 1,252 million and represents a
16.5% increase with respect to the first nine months of 2001.
This result is in part accounted for by extraordinary capital
gains for euro 845 million for the disposal of BDT (parent
company of Bouygues T,l,com), Autel (parent company of Mobilkom
Austria) and Auna, as well as the extraordinary write-downs of IS
TIM and Digitel for, respectively, euro 1,258 million and euro 75
million respectively. The amount of the writing-down, net of tax
benefits, the impact of the write-downs on consolidated results
was euro 748 million. The write downs take into account the
change in the macroeconomic scenario, and the consequent
repositioning of the business development plans and it represents
an extraordinary and not a monetary item.
The TIM Group's investments in line with the 2002 - 2004
industrial plan, amounted to euro 1,027 million against euro
3,907 million in the first nine months of 2001. This reduction
reflects the major industrial investment undertaken to acquire
licences (Brazil and UMTS) and financial investments for the
acquisition of international operations in the first nine months
of 2001.
Free operating cash flow now stands at euro 2,438 million a
considerable improvement with respect to the figure recorded in
the first nine of months of 2001 (euro 1,597 million).
Net liquidity, after euro 2.019 million dividend disbursement,
stands at euro 310 million, a euro 1,842 million. increase with
respect to 31 December 2001. This significant improvement was in
part the result of good operating performance and the net
proceeds from the disposal of non-strategic shareholdings in
Bouygues, Mobilkom Austria and Auna, for a total of euro 1,710
million.
The number of mobile lines of the TIM Group as of September 30,
2002 was 37.3 million (excluding the mobile lines of Bouygues
Telecom and Amena, Mobilkom Austria and its subsidiaries)
representing a year-on-year increase of 7% compared to the like
for like data recorded as of December 31, 2001.
The TIM Group personnel at 30 September 2002 stood at 17,532
units; an increase of 811 with respect to 31.12.2001.
TIM S.p.A.
In the first nine months of 2002 revenues amounted to euro 6,544
million against a 6.2% growth recorded for the same period in
2001. The revenues posted for the third quarter 2002 was euro
2,354 million representing a 9.3% growth compared to the same
period in 2001.
Value-added service (VAS) revenues amounted to euro 530 million,
38% higher than in 2001. VAS revenues reach 8.5% of service
revenues (6.5% in the same period of 2001).
The traffic minutes amounted to 27.3 billion, 9.3% year higher
than in the same period last year (25 billion). Taking into
consideration traffic generated by TIM customers only, the growth
rate reaches 11%, in line with the growth recorded for the same
period in 2001.
The Gross operating profit for the first nine months of 2002 was
euro 3,458 million, 7.7% higher than for the same period in the
preceding year.
The gross operating profit ratio rose to 52.8% (52.1% in the nine
months of 2001) reflecting an improvement in operating
efficiency. The gross operating profit for the third quarter 2002
was euro 1,276 million (+13.3% with respect to the same period of
2001) with a gross operating profit ratio of 54.2% (52.3% in
2001).
The operating income for the first nine months of 2002 amounted
to euro 2,620 million, a 3.2% increase, This result has been
achieved despite higher depreciation charges mainly due to the
amortization of the UMTS license amounting to euro 91 million,
which began in January 2002. The operating income for the third
quarter 2002 was euro 1,007 million, an 11.8% growth year-on-year
increase.
Profit before extraordinary charges and tax for the first nine
months amounted to euro 2,603 million, a 2% year on year
increase.
Net income for the first nine months stood at euro 299 million
(euro 1,745 million in the preceding year) as a result of the
extraordinary write-downs of TIM International, for euro 1,930
million, related to the write-downs of the shareholdings in Is
TIM in Turkey ( -1,484 million) and Digitel Venezuela (-343
million) and to the adjustment in the valuation of the companies
sold (-103 million). The net impact of the write- downs on the
annual accounts amounted to euro 1,345 million The write downs
take into account the change in the macroeconomic scenario, and
the consequent repositioning of the business development plans
and it represents an extraordinary and not a monetary item.
Investments in the first nine months reached a total of euro
1,234 million of which euro 458 million for industrial
investments and euro 776 million for financial investments.
Net liquidity amounted to euro 346 million.
As of September 30, 2002 the number of mobile lines numbered 24.6
million, a 5.6% year on year increase (23.3 million lines as of
30 September 2001).
As of September 30, 2002 TIM personnel stood at 9,624 units (-
168 units when compared to 2001 year-end financial statements).
In terms of traffic minutes per employee, productivity improved
by 11.7% compared to the same period in the preceding financial
year.
Results of the leading foreign subsidiaries and associate
companies of the TIM Group as of September 30, 2002
Subsidiaries
Latin America
Brazil
TIM Group Brazil Average exchange rate (real/ euro):0.402370769
The TIM Brasil Group operates mobile network services throughout
the entire country. The launch of GSM service in Brazil will
enable TIM to pursue its strategic project for the region: the
first Pan-South American GSM network. TIM is the only GSM
operator authorised to operate throughout the entire Brazilian
territory and is the only company to market its services under
the same brand name. In the first nine months 2002 the
consolidated revenues of the TIM Group Brazil amounted to 1,989
million reais, a year-on-year increase of 21.2%. The gross
operating profit reached 657 million reais, in line with the same
period in 2001. The gross operating profit ratio was 33% (39.9%
in the first nine months 2001). The consolidated operating
income, amounting to 86 million reais, registered a decline of
40.7% with respect to the first nine months of 2001. The
reduction in profit margins reflects the results of companies
that are still in the start-up phase.
Peru
Tim Peru Average exchange rate (nuevo soles/ euro):0.308029719
The Company launched its service in January 2001. In the first
nine months of 2002 revenues of the Company accounted for 200
million nuevo soles compared to 63 million nuevo soles for the
same period in 2001. The gross operating profit for the first
nine months was - 89 million nuevo soles against - 131 million
nuevo soles for the same period in 2001. Operating income was -
171 million nuevo soles. The Company is still in the start-up
phase and gross operating profit and the operating income is
still negative.
Venezuela
Corporacion Digitel Spot exchange rate (bolivares/euro)
:0.000983345 In the first nine months of 2002 the Company posted
revenues for 186,299 million bolivares a year-on-year increase of
63.2% compared to the same period in 2001 (114.136 million of
bolivares). The gross operating profit was 33,766 million
bolivares compared to 1,834 million bolivares for the same period
in 2001. The gross operating profit ratio was 18.1% compared to
1.6% for the first nine months of 2001. Operating income was 463
million bolivares compared to - 18,276 million bolivares in the
same period in 2001.
EUROPE
Greece
Stet Hellas In the first nine months of 2002 the Company's
revenues were euro 503 million (+ 27% with respect to the same
period in 2001). The gross operating profit stood at euro 187
million (+32.6%) with a gross operating profit ratio of 37.2%
with respect to 35.6% posted for the first nine months of 2001.
Operating income, amounting to euro 99 million showed a year-on-
year increase of 35.6%. with respect to the first nine months of
2001
Associate companies (consolidated with the equity method)
EUROPE
Turkey Spot exchange rate (Turkish lira /euro):0.000000729 IS TIM
IS TIM launched service at the end of March 2001. In the first
nine months of 2002 the -Company's revenues were 93,047 billion
Turkish lire. The gross operating profit amounted to -143,536
billion Turkish lire. Operating income amounted to - 495,867
billion Turkish lire.
* * *
Reclassification and disbursement of reserves
The non-recurrent and non-monetary impact of the extraordinary
charges relative to the write down of shareholdings undertaken in
this period upon the profits posted by TIM SpA, will not change
the dividend policy for shareholders which remains in line with
the same period last year. To this effect, and taking into
account the significant cash generated by operations and from the
disposal plan, the Board has proposed to convene the
Shareholders' Meeting on 11/12/2002 for the approval of the
disbursement of dividends for an overall amount of euro 1,600
million thereby partially anticipating the 2002 dividend
distribution.
Coupon detachment is scheduled for December 16, 2002 and dividend
payment will be made starting December 19, 2002. The dividend per
share of euro 0.1865 for both ordinary and savings shares gives
right to a full tax credit which may be claimed without any
limitations within 56.25% of euro0.0554 of the dividend sum, and
a limited, i.e. "not reimbursable tax credit, of 56.25% on a
quota of euro.0.0963. The remaining euro 0.0348 will not benefit
from tax credit since it refers to the distribution of the share
premium reserve.
The Board will also propose to the Shareholders' Meeting the
reclassification of the reserves stated among the liabilities via
the transfer of euro 103,942,274.35 from the share premium
reserve to the legal reserve and the transfer of euro
102,792,886.55from the legal reserve to the extraordinary
reserve.
Merger of Blu
The Board of Directors approved the merger by incorporation of
Blu SpA, 100% controlled by TIM. TIM intends to complete the
incorporation within December 31, 2002. With the incorporation of
Blu into Tim (based on TIM's balance sheet as of September 30 and
Blu's balance sheet as of October 7, 2002) TIM will take over all
the assets, liabilities, commitments and charges of the
incorporated company without the need for an increase in share
capital, but simply by writing off the share capital of BLU,
entirely owned by TIM.
TIM is pursuing an industrial project that envisages the full
exploitation of the assets to be acquired with the merger
(network infrastructure, sites, the call-centers of Calenzano and
Florence and the human resources). The use of the call centers
will enable TIM to cope with the growth in the volumes of the
contracts expected and foreseeable in the mid-term by ensuring
the quality of customer service, especially related to the
management of value-added services. The availability of sites,
BTS equipment and BSC will accelerate the process of geographical
coverage of the UMTS network by providing a larger number of
sites in urban areas and enhancing network capacity. The
industrial project provides for the valuable integration of about
670 human resources of BLU into the organisational structure of
TIM.
Convocation of the Ordinary and Extraordinary Shareholders'
Meeting
The Board has given the Chairman, the Deputy Chairman and the
Chief Executive Office powers to convene the Ordinary and
Extraordinary Shareholders' Meeting to discuss, in ordinary
session, the operations for the reclassification of the reserves,
the distribution of reserves up to euro 1,600 million partially
anticipating the 2002 dividend disbursement and to appoint new
directors to the Board as the tenure of office of Oscar Carlos
Cristianci, Gaetano MiccichS and Enrico Parazzini, co-opted by
the Board meetings of respectively, May 6, July 24 and September
4 2002 lapses on the date of the next Shareholders' Meeting. The
extraordinary session of the Shareholders' Meeting will be held
to discuss and pass motions regarding the proposed merger by
incorporation of. Blu.
The tables on the balance sheet, income statement and cash flow
statement in Euro are attached herewith.
http://bankrupt.com/misc/TIMGroup.pdf
CONTACT: Investor Relations
Phone: +39 06 3900 3798
Home Page: http://www.telecomitalia.it/stampa
TELECOM ITALIA: Completes Sale Of 15% of Telekom Austria
--------------------------------------------------------
In the wake of high demand from European and US institutional
investors, Telecom Italia International N.V. closed the
accelerated private placement of 65 million Telekom Austria AG
shares, with a greenshoe option for a further 10 million shares
exerciseable within 30 days. The placement was closed on the
first day of what had initially been scheduled to be a two-day
offer period. The placement price, at EUR7.45 per share, was at
the upper limit of the range announced to investors. Settlement
is scheduled for Friday 8th November; inclusive of the greenshoe
option, gross aggregate revenues should be in the region of
EUR558,750,000.
JP Morgan, Merrill Lynch and Lehman Brothers served as Global
Coordinators for this operation. Syndicate members are JP Morgan
and Merrill Lynch as Joint Bookrunners and Joint Lead Managers,
Lehman Brothers as Senior Co-Lead Manager, CA IB as Co-Lead
Manager and Banca IMI and UBM as Co-Managers.
Today Telekom Austria is lodging an application for the listing
of 325 million Telekom Austria AG shares on the official market
of the Vienna Stock Exchange. These shares are scheduled to be
traded for the first time on Wednesday 6 November.
This operation brings the Telecom Italia Group close to
completing its EUR5 billion disposals plan within 12 months, far
in advance of the 24 months stated in the initial announcement
TELECOM ITALIA: Denies Rumors of the Sale of IMMSI
--------------------------------------------------
The Telecom Italia Group denies press reports published Monday
concerning the possible sale of its stake in IMMSI S.p.A. At
present there are no negotiations underway for the sale of all or
part of the holdings owned by Telecom Italia S.p.A, in IMMSI.
However the 2002-2004 industrial plan guidelines presented to the
financial community last year and implemented during 2002 which
foresee disposals for approximately five billion euros remain in
place.
=====================
N E T H E R L A N D S
=====================
ASM INTERNATIONAL: S&P Revised Outlook on Liquidity Concerns
------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Netherlands-based semiconductor equipment manufacturer ASM
International N.V. to negative from stable. It affirmed, at the
same time, its long-term single-'B'-plus corporate credit rating
on ASMI, and its single-'B'-minus subordinated debt rating.
According to the rating agency, the action reflects increasing
concerns of ASMI's liquidity position for the medium term.
Moody's projects the worries out of ASMI's continued negative
free cash flow generation, as well as limited cash and available
credit lines.
Standard & Poor's credit analyst, Andre Rashid, specified the
free cash flow loss over the past seven quarters of ASMI at about
EUR64 million in aggregate on a consolidated basis. The figure
included EUR93 million of capital expenditures and EUR35 million
of dividends paid to ASMPT minority interests.
The rating agency believes industry conditions would not improve
sufficiently to help ASMI boost its operating performance in the
medium term.
===========
P O L A N D
===========
ELEKTRIM SA: Gives The Law Debenture Trust Powers of Attorney
-------------------------------------------------------------
The Management Board of Elektrim S.A. hereby announces that in
connection with the restructuring of exchangeable bonds issued by
Elektrim Finance B.V. in 1999 and guaranteed by the Company, on 5
November, 2002 the Company granted to The Law Debenture Trust
Corporation p.l.c. certain powers of attorney to execute on the
Company's behalf restructuring agreements relating to the bonds
and documents securing proper performance of such agreements.
The powers of attorney shall be exercisable in the event that the
Company fails to enter into such agreements and documents after
the adoption of a resolution approving the restructuring by the
extraordinary meeting of bondholders to be held on 15 November,
2002.
NETIA HOLDINGS: Court Ratifies Composition Plans for Subsidiaries
-----------------------------------------------------------------
Netia Holdings S.A. (WSE: NET), Poland's largest alternative
provider of fixed-line telecommunications services (in terms of
value of generated revenues), on Wednesday announced that at the
verification hearing held today in Amsterdam, the Netherlands,
the court ratified the composition plans of Netia Holdings B.V.,
Netia Holdings II B.V. and Netia Holdings III B.V., Netia's three
Dutch finance subsidiaries.
The court's decisions will become unappealable on November 15,
2002.
The ratification of the composition plans by the Dutch court
completes one of the most important stages of Netia's
restructuring.
CONTACT: Netia Holdings
Anna Kuchnio (IR)
Phone: +48-22-330-2061
===========
S W E D E N
===========
LM ERICSSON: Supports Royalty Rates for W-CDMA Technology
----------------------------------------------------------
Industry leaders NTT DoCoMo, Ericsson, Nokia and Siemens ON
Wednesday reached a mutual understanding to introduce licensing
arrangements whereby essential patents for W-CDMA are licensed at
rates that are proportional to the number of essential patents
owned by each company.
The intention is to set a benchmark for all patent holders of the
W-CDMA technology to achieve fair and reasonable royalty rates.
The companies together own the clear majority of the essential
Intellectual Property Rights (IPR) relevant to the W-CDMA
standard selected already by about 110 operators worldwide. This
arrangement would enable the cumulative royalty rate for W-CDMA
to be at a modest single digit level.
These companies also own a significant number of the essential
patents applicable to the CDMA2000 standard. These patents will
be licensed at fair and reasonable terms.
As essential patent holders, Japanese manufacturers Fujitsu,
Matsushita Communication Industrial (Panasonic), Mitsubishi
Electric, NEC and Sony Corporation have also expressed their
willingness to co-operate with such arrangements.
"It is of the utmost importance for the mobile communication
industry and in the interest of both licensors and licensees that
the cumulative royalty cost of W-CDMA is maintained at a
competitive level which encourages both greater growth and
innovation in the industry," says Lothar Pauly, board member of
the Siemens Information and Communication Mobile Group. "As we --
the major IPR holders -- make our patents available we ensure
that W-CDMA stays an open and globally acceptable technology."
"This initiative means that cumulative royalty rates of W-CDMA
are kept at a healthy level. For example according to the recent
developments in China the cumulative royalty rate seems to remain
even under our earlier targeted cumulative 5% level. This makes
the W-CDMA standard safe to invest in for operators,
manufacturers and application developers," says Yrjo Neuvo,
Executive Vice President of Nokia. "We can see the IPR initiative
gaining support amongst the industry, and encourage others to
join."
"W-CDMA is the standard selected by most operators in the world
for their future business, and with this initiative we believe
the cumulative royalty will be even lower for W-CDMA than GSM,
which has enjoyed unrivalled success compared to any other
standard in the world," says Torbjorn Nilsson, Senior Vice
President Marketing & Strategic Business Development of Ericsson.
"This initiative is meaningful for promoting the W-CDMA services
by keeping cumulative royalty rate below 5%," says Kota
Kinoshita, Executive Vice President of NTT DoCoMo. "We have
discussed through the 3G Patent Platform Partnership (3G3P) how
to license essential patents at acceptable royalty rates. We
believe the intent of the arrangement is well harmonized with
that of 3G3P."
The W-CDMA standard is developed by the 3rd Generation
Partnership Project (3GPP). In the 3GPP standardization process
the declaration of essential IPRs is mandatory. The European
Telecommunications Standards Institute (ETSI) and the Association
of Radio Industries and Businesses (ARIB) in Japan maintains an
updated list of IPR declarations for 3GPP.
NTT DoCoMo is the world's leading mobile communications company
with more than 44 million customers. The company provides a wide
variety of leading-edge mobile multimedia services. These include
i-mode(R), the world's most popular mobile internet service,
which provides e-mail and internet access to over 35 million
subscribers, and FOMA(R), launched in 2001 as the world's first
3G mobile service based on W-CDMA. In addition to wholly owned
subsidiaries in Europe and North and South America, the company
is expanding its global reach through strategic alliances with
mobile and multimedia service providers in the Asia-Pacific,
Europe and North and South America. NTT DoCoMo is listed on the
Tokyo (9437), London (NDCM), and New York (DCM) stock exchanges.
For more information, visit www.nttdocomo.com
i-mode and FOMA are trademarks or registered trademarks of NTT
DoCoMo, Inc. in Japan and other countries.
Nokia is the world leader in mobile communications. Backed by its
experience, innovation, user-friendliness and secure solutions,
the company has become the leading supplier of mobile phones and
a leading supplier of mobile, fixed broadband and IP networks. By
adding mobility to the Internet Nokia creates new opportunities
for companies and further enriches the daily lives of people.
Nokia is a broadly held company with listings on six major
exchanges.
Ericsson is shaping the future of Mobile and Broadband Internet
communication through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication
companies in the world. Read more at www.ericsson.com/press
The Siemens Information and Communication Mobile Group (Siemens
mobile) offers the complete range of mobile solutions including
mobile devices, infrastructure and applications. Devices include
mobile phones, wireless modules, mobile organizers and cordless
phones as well as products for wireless home networks. The
infrastructure portfolio includes GSM, GPRS and 3G mobile network
technologies from base stations and switching systems to
intelligent networks, e.g. for prepaid services. Mobile
Applications cover end-to-end solutions for Messaging, Location
Based Services or Mobile Payment. You can access further
information about Siemens mobile on the Internet at www.siemens-
mobile.com
CONTACT: NTT DoCoMo
Mariko Hanaoka, +81-3-5156-1366
Fax: +81-3-5501-3408
E-mail: press_dcm@nttdocomo.com
Home Page: http://www.nttdocomo.com
or
Ericsson
Peter Olofsson
Phone: +46 8 719 1880, +46 70 267 3445
E-mail: peter.olofsson@lme.ericsson.se
or
Nokia
Phone: + 358 (0) 7180 38195
E-mail: nokia.networks@nokia.com
Home Page: www.nokia.com
or
Siemens
Martina Kniep
Phone: +49-89 636-43133
Fax: +49-89 636-53484
E-mail: martina.kniep@siemens.com
LM ERICSSON: Employees Suspected of Corporate Espionage
-------------------------------------------------------
Three people linked with Ericsson were suspected of espionage or
corporate espionage for passing secret information from the
Swedish telecommunications company to Russia.
The Swedish police arrested the suspects who were either Ericsson
employees or former employees.
According to the Financial Times, the Swedish security police
said the main suspect was believed to have leaked secret
information to a foreign security service for a long period. The
person was arrested while he was meeting a foreign intelligence
officer.
The supplier of mobile telecoms infrastructure disclosed that all
three suspects had connections with its development operations.
The persons involved are understood to be Swedish citizens.
The Swedish state prosecutor is currently leading the
investigation. Russian authorities have also been informed of
the arrest.
CONTACT: TELEFONAKTIEBOLAGET LM ERICSSON
Telefon AB LM Ericsson, Telefonv"gen 30
SE-126 25 Stockholm, Sweden
Phone: +46-8-719-0000
Fax: +46-8-18-40-85
Home Page: http://www.ericsson.com
LM ERICSSON: Cooperate With Swedish Police to Halt Espionage
------------------------------------------------------------
On November 6, the Swedish police took three individuals into
custody, on suspicion of espionage or corporate espionage. The
three individuals are employed by or have been employed by
Ericsson. They are suspected to have handed over top secret
information to a foreign power.
"With regard to the investigation, we cannot disclose what kind
of information that has been handed over," says Henry St,nson,
Senior Vice President, Communications, at Ericsson. "Our opinion
today is that the damages are limited. Thanks to the timely
handling, the deliveries were stopped. Besides, the three
individuals did not hold any key positions."
Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication
companies in the world.
CONTACT: Henry St,nson, Senior Vice President, Communications,
Phone: +46 8 719 40 44
E-mail: henry.stenson@lme.ericsson.se
LM ERICSSON: Partners with GNP to Develop Signaling Platform
------------------------------------------------------------
GNP, a leader in engineering, manufacturing and systems
integration services for the communications and related
industries, today announced a partnership with Ericsson Signaling
in which GNP will provide the telecommunications supplier with
integration services for a new CompactPCI (cPCI) signaling
solution.
Designed to support Ericsson's SS7 signaling applications, the
carrier-grade cPCI solution provides Original Equipment
Manufacturers (OEMs) with a complete package, featuring all of
the components necessary to develop a variety of network-based
solutions. The high-quality platform, featuring GNP's
ComputeNode1U or ComputeNode2U multi-slot cPCI chassis and
Ericsson's Stack-on-a-Card (SoaC) product, is ready for customer
application installation.
"GNP is pleased to team with Ericsson to provide a deployment-
ready signaling solution," said Roger Baar, Ph.D., president and
CEO, GNP. "The SoaC, integrated into our ComputeNode chassis,
will greatly facilitate the addition of signaling capabilities to
network applications."
Ericsson's SoaC product is a fully embedded hardware and software
solution designed for SS7 connectivity in cPCI systems. The final
chassis product is a flexible offering that may be used for the
development of: prepaid, messaging, softswitch, Voice-over IP
(VoIP), and location-based services for mobile telephone
applications.
"Partnering with GNP allows us to provide our OEM customers a
complete set of high-quality tools, opening the door for the
development of a wide variety of solutions," said Jorgen Trank,
business development manager, Ericsson Signaling. "By taking full
advantage of the systems integration experience that GNP brings
to the table, we are able to offer a single-package cPCI solution
that runs all the necessary signaling software without affecting
the customer's application or platform."
Ericsson Signaling's discrete SoaC fits neatly within GNP's
carrier-grade ComputeNode chassis, which operates all SS7
signaling software in a closed, protected environment where it
will not affect the customer application or platform. The
signaling platform is powered by a CPU board from recommended
manufacturers including Sun Microsystems, Intel and Radisys.
The ComputeNode chassis, available in either a two- or four-slot
configuration, offers greater slot density to support extra
storage, I/O interface cards, processors, Ethernet switches or
expansion cards. The chassis features either AC or DC input
voltage. The 2U/four-slot configuration offers dual redundant
(1+1) power. All ComputeNode chassis meet Telcordia GR-1089-CORE
Level 3 and Telcordia GR-63-CORE Level 3 requirements for Central
Office applications.
About Ericsson Signaling Division
Located in Karlstad, Sweden, Ericsson Signaling is a product and
development company that is active in the field of mobile
telecommunications and a core supplier of SS7 on open platforms.
Ericsson Signaling's products guarantee scalability, high
capacity and flexibility. For more information about Ericsson's
products and services, visit the web site at
www.ericsson.se/signaling.
About GNP
GNP is a premier provider of complex systems and platform
solutions for the communications industry and related markets.
The company designs, manufactures and customizes open system
platforms to meet the demanding requirements of its customers'
programs, using Commercial off-the-shelf (COTS) technology
enhanced by system building blocks of its own design. GNP's broad
range of platform solutions include SPARC-, Intel(R)- and
PowerPC-based carrier-grade systems in CompactPCI and other form
factors, as well as a multi-node continuously available
applications framework -- the Continuant Cluster Suite(TM) -- for
use in mission-critical embedded control and communications
equipment. Its products are complemented by comprehensive
services, ranging from conceptual design through deployment, that
minimize cycle time at all stages of the product life cycle while
achieving the highest levels of quality and customer
satisfaction. ISO-9001 certified, GNP is privately held with
headquarters in Monrovia, California. For more information on
GNP's products and services, visit the company web site at
www.gnp.com.
(c) 2002 GNP Computers, Inc. GNP Computers is a trademark of GNP
Computers. All other brand names and trademarks are properties of
their respective holders.
CONTACT: GNP
Stephanie Stage
Phone: 626/305-8484
E-mail: sstage@gnp.com
or
Young Company
Kellie Reagan
Phone: 310/410-3000, ext. 382
E-mail: kreagan@youngcompany.com
=====================
S W I T Z E R L A N D
=====================
ABB LTD.: Company Profile Issued
--------------------------------
NAME: ABB Ltd.
Affolternstrasse 44
CH-8050 Zurich, Switzerland
PHONE: +41-43-317-7111
FAX: +41-43-317-7958
WEBSITE: http://www.abb.com
TYPE OF BUSINESS: The company provides power technology products
and services (including transmission and distribution systems)
and automation technology products and services to distributors,
wholesalers, system integrators, and original equipment
manufacturers in more than 100 countries. ABB serves customers in
four major industry sectors: utilities; process industries;
manufacturing and consumer industries; and oil, gas, and
petrochemicals.
SIC: Manufacturing - Turbines, Transformers & Other Electrical
Generation Equipment
EXECUTIVES: Jurgen Dormann, Chairman, President and CEO
Peter Voser, Executive Vice President and CFO
BOARD OF DIRECTORS: Jurgen Dormann
Roger Agnelli
Hans Ulrich Maerki
Michel de Rosen
Bernd W. Voss
Jacob Wallenberg
INVESTOR RELATIONS: Zurich, Switzerland:
Cheryl Sunderland
Wolfgang Kirchmayr
Nicole Seiler
Sumako Taniguchi, Assistant
Petra Camen, Assistant
Abb Asea Brown Boveri Ltd
Value Services
Affolternstrasse 44
P.O. BOX 8131
Ch-8050 Zurich
Switzerland
Telephone: +41 43 317 7111
Fax: +41 1 311 98 17
NUMBER OF EMPLOYEES: 149,924 in more than 100 countries
REVENUES: US$16,042 million (as of September 2002)
TOTAL ASSETS: US$31,927 million (as of September 2002)
TOTAL LIABILITIES: US$29,858 million (as of September 2002)
TOTAL STOCKHOLDERS' EQUITY: US$1,799 million (as of September
2002)
DEBT: The Company's total borrowings outstanding at December 31,
2001, amounted to US$9,790 million (of which US$3,297 million was
in the form of commercial paper).
To see ABB Ltd.'s latest Financial Statements:
http://bankrupt.com/misc/ABB.pdf
CREDIT RATINGS: Standard & Poor's
Long-term debt rating: BBB-
Short-term debt rating: A-3
Creditwatch with negative implications
Moody's
Long-term debt rating: Ba2
Short-term debt rating: Not prime
Ratings under rewiew
MAJOR SHAREHOLDER: BZ Group Holding Limited
Total Amount Owned: 133,777,434
Percentage of Share Capital: 11.1%
(as of June 1, 2002)
AUDITOR: Ernst & Young AG
Ernst & Young International
5 Times Square
New York, NY 10036
Phone: 212-773-3000
Fax: 212-773-6350
Home Page: http://www.eyi.com
CREDIT SUISSE: Names Head of Swiss Corporate & Retail Banking
-------------------------------------------------------------
Credit Suisse announced that the Board of Directors has named
Josef Meier, Chief Executive Officer of Credit Suisse-owned Neue
Aargauer Bank, as the new Head of the Corporate & Retail Banking
division and Member of the Executive Board of Credit Suisse
Financial Services, with immediate effect. Josef Meier takes over
from Rolf D"rig, who has been appointed the new Chief Executive
Officer of Swiss Life.
Josef Meier (49) has held a number of management positions at
Credit Suisse Group since 1981. He has been the Head of Neue
Aargauer Bank (NAB) since 1996; NAB has been owned by Credit
Suisse since 1994. Josef Meier has many years of experience and a
proven track record in the Swiss corporate and retail banking
business. He will assume his new role with immediate effect. His
successor as Chief Executive Officer of the NAB will be announced
as soon as possible.
Oswald J. Grbel, Chief Executive Officer of Credit Suisse
Financial Services, stated: "We regret that Rolf D"rig is leaving
us after seventeen successful years at Credit Suisse Group and we
would like to thank him for his valuable contribution towards the
development of the company. At the same time, however, we are
happy to be able to provide Swiss Life with a competent and
experienced top manager and believe that this will benefit the
Swiss financial industry. Josef Meier, who will be responsible
for the management of our Corporate & Retail Banking division,
has an excellent knowledge of the sector and has demonstrated
during his time as Chief Executive Officer of NAB, that the Swiss
corporate and retail banking business - which is of great
importance to our company - can operate very successfully on the
basis of a strong client focus. I am particularly pleased that we
have once again been able to find an internal successor for a
position on the Executive Board."
Credit Suisse Financial Services is a leading provider of
comprehensive financial services in Europe and other selected
markets. Under the brands Credit Suisse and Winterthur, it offers
investment products, private banking and financial advisory
services, including insurance and pension solutions, for private
and corporate clients. It has assets under management amounting
to CHF 713.3 billion (at the end of the second quarter 2002).
Credit Suisse Financial Services is a business unit of Credit
Suisse Group, which employs around 80,000 staff
SWISS LIFE: Appoints Rolf Dorig As New Chief Executive Officer
--------------------------------------------------------------
The Swiss Life/Rentenanstalt Board of Directors, at its session
Tuesday under Chairman Andres F. Leuenberger, elected Rolf Dorig
as the Group's new CEO. He takes up his responsibilities with
immediate effect. In this function Rolf D"rig replaces Roland
Chlapowski, who has resigned as Group CEO and will leave Swiss
Life/Rentenanstalt at the end of 2002.
Andres F. Leuenberger: "The Board of Directors is aware that
confidence has been lost, partly because of the accounting errors
but also because of the debate over LTS Ltd. It is vital to
reinforce customers' and investors' faith in Swiss
Life/Rentenanstalt again, and quickly, as well as the confidence
of the authorities and the general public. The Board is convinced
that Rolf D"rig has the necessary qualifications to accomplish
this as our new Group CEO. Rolf Dorig's professional career is
impressive. In particular, his knowledge of our crucial market,
the Swiss financial services market, is second to none, and he
possesses the necessary integrity to put our company's
relationships with all our partners on a new basis of trust."
Rolf Dorig: "Swiss Life/Rentenanstalt has very good employees on
its staff. With a concerted effort we will be able to
systematically implement the focus on our core business mandated
by the Board of Directors and will thus put the company back on
the road to success."
Rolf Dorig, 45, an attorney at law with a doctorate in law (Dr.
iur.), previously served as CEO of Corporate and Retail Banking
at Credit Suisse Financial Services and as Chairman Switzerland
for the Credit Suisse Group. Among his other appointments, he is
a board member of the Swiss Confederation of Employers and is on
the executive board of economiesuisse. Rolf D"rig is married and
the father of three sons.
Note:
Media conference: Wednesday, 6 November 2002, at 10:00 a.m.
at the Swiss Life/Rentenanstalt Head Office
General-Guisan-Quai 40 in Zurich, 5th floor
SWISS LIFE: Standard & Poor's Updates CreditWatch Outlook
---------------------------------------------------------
Standard & Poor's Ratings Services updated its CreditWatch
placement on Switzerland-based life insurer Swiss
Life/Schweizerische Lebensversicherungs- und Rentenanstalt AG
(Swiss Life) and related entities.
The action follows the recent announcement of the installation of
Rolf Dorig of Credit Suisse Group as replacement for current CEO
Roland Chlapowski.
Swiss Life's rating was put on CreditWatch with negative
implications on October 31, to reflect Standard & Poor's concerns
about a further reduction in Swiss Life's financial flexibility.
The action then was prompted by several adverse publicities on
the group, particularly about the regulator's investigation on
the recalculation of its financial results.
Standard & Poor's credit analyst Karin Clemens noted that the
negative publicity has continued to mount. She said that the
rating agency is increasingly concerned about the potential
damage of these issues to the company's market franchise and
ultimate business position.
According to the rating agency, the resolution of the CreditWatch
placement will depend on Swiss Life's implementation of its full
capital increase through a rights issue announced on September
16. Swiss Life expects to increase capital by between SFR 900
million (US$617 million) and SFR1.2 billion.
===========================
U N I T E D K I N G D O M
===========================
TELEWEST COMMUNICATIONS: Announces Disposal of SMG Interest
--------------------------------------------------------------
Following the approval of the Company's shareholders given at an
EGM on 4 September 2002, Telewest has placed its entire 16.9%
shareholding in SMG with institutional investors. The placing was
managed by Schroder Salomon Smith Barney. The shares were placed
at a price of 85p per share and the placing will realise proceeds
of o45.1 million.
Commenting on this announcement, Charles Burdick, managing
director, said:
"We are pleased to have placed the SMG shares at a fair price and
the proceeds will be utilised to further our progress in our core
business."
Flextech, Telewest's content business, bought the 16.9% stake in
SMG plc in 1995. The Company stated on 13 August 2002 that it was
considering selling this non-core asset to help preserve its
financial flexibility. A loan of approximately o26.3m from
Toronto Dominion bank was secured against the stock and repaid on
29 October 2002.
Telewest Communications, the broadband communications and media
group, currently passes 4.9 million homes and provides multi-
channel television, telephone and internet services to around 1.8
million UK households, and voice and data telecommunications
services to around 74,300 business customers. Its content
division, Flextech, is the biggest provider of basic channels to
the UK pay-TV market and is the BBC's partner in UKTV, which has
a portfolio of pay-TV channels based on the corporation's
programming, including UK Gold.
CONTACT: Telewest
Jane Hardman, Director Of Corporate Communications
Phone: 020 7299 5888
Richard Williams, Head Of Investor Relations
Phone: 020 7299 5497
Brunswick
John Sunnucks/Sarah Tovey
Phone: 020 7404 5959
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam,
Larri-Nil Veloso and Ma. Cristina Canson, Editors.
Copyright 2002. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
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