/raid1/www/Hosts/bankrupt/TCREUR_Public/030218.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
Tuesday, February 18, 2003, Vol. 4, No. 34
Headlines
* F R A N C E *
BULL: Seeks Investment to Repay EUR466 MM Government Loan
FRANCE TELECOM: Moody's Confirms Debt Rating of Subsidiary
SCOR GROUP: Had 2002 Premium Income of EUR 5,016 Million
SUEZ SA: Long-term Corporate Credit Ratings on CreditWatch
VIVENDI UNIVERSAL: Sells 50% Stake in Vivendi Universal Net
* G E R M A N Y *
ALLIANZ GROUP: Fitch Downgrades Insurer Financial Strength
COMMERZBANK AG: Jobs Face Axe on Failure of Salary Cut Plan
DRESDNER BANK: Fitch Downgrades Long-term Rating to 'A-'
FRESENIUS MEDICAL: Long-term Rating Assigned to Bank Facilities
* I T A L Y *
TELECOM ITALIA: Chairman Outlines Plans for Businesses
TIM GROUP: Aims to Generate GBP12 Billion in Free Cash Flow
* N E T H E R L A N D S *
IFCO SYSTEMS: Announces Changes to Board of Directors
GETRONICS N.V.: Gains Support for Revised Invitation to Tender
* P O L A N D *
ELEKTRIM SA: Informs of BRE Bank's Assumption of 9.55% of Capital
* R U S S I A *
METROMEDIA INTERNATIONAL: Shares to Be De-listed From AMEX
* S W E D E N *
LM ERICSSON: Outgoing Chief Executive Likely to Remain
SCANDINAVIAN AIRLINE: Files Suit Against Finnish Government
* U N I T E D K I N G D O M *
ABERDEEN ASSET: Proposed Disposal of Retail Fund Management
BRITISH ENERGY: Government Statement to Stock Exchange
CABLE & WIRELESS: Files Legal Complaint With Takeover Panel
CORUS GROUP: Holds Negotiations Over Refinancing With Banks
EDINBURG FUND: Fired 17 More Employees as Part of Shake-Up
EQUITABLE LIFE: Lunges Second Attempt to Fine Ernst & Young
FRANCE TELECOM: To Axe Thousands of Jobs This Year - Sources
INFINEON TECHNOLOGIES: Decides to Reorganize Corporate Center
INVENSYS PLC: Announces Result of Business Performance Review
INVENSYS PLC: To Write Down Carrying Value of Dutch Unit
INVENSYS PLC: S&P Places Ratings on CreditWatch Negative
MOXY TRUCKS: Shutters Operations Due to Rise of Krone's Value
ROYAL DOULTON: Posts Operating Loss Before Exceptionals
STANDARD LIFE: Endowment Policies to Be Predominantly Amber, Red
TWR GROUP: Placed Under Administrative Receivership
===========
F R A N C E
===========
BULL: Seeks Investment to Repay EUR466 MM Government Loan
---------------------------------------------------------
French computer services group Bull is seeking investors to help
it repay a EUR466 million (USD500 million) loan from the French
government by the end of June.
The former flagship of the French computer industry, which
reported a net loss of EUR549 million last year, has undergone
several restructuring processes over time. The company sold much
of its Integris unit, while retaining operations in France,
Italy, and Greece under the Bull Services division. It also sold
its smart card and other non-core operations, and split its
hardware and service units into independent entities.
Moreover, its workforce had shrunk from about 46,000 in 1988 to
about 8,000 at the end of 2002.
Although the group earlier said the turnaround plan it launched
last year has been working ahead of schedule - with earnings
before interest and tax of EUR18 million in the second half,
against a loss of EUR151 million in the first half, the final
stage of the plan promises to be more difficult. Recently-
Appointed chairman Pierre Bonelli needs to convince cash-strapped
existing shareholders, including NEC, Motorola and France
Telecom, or new investors, to put more money into Bull.
According to Mr. Bonelli, the improved financial performance in
the second half of 2002 would "give a shot in the arm" to the
various talks already underway. "I'm relatively confident we will
find a solution, but don't have any guarantees."
Three possible plans are under consideration. The first would see
an increased investment from NEC, the Japanese technology group,
a second would involve private equity groups in the US and
France, and the third would create a pan-European coalition of
former national champions in the computer sector.
Bull said its earnings before interest, tax, depreciation,
goodwill amortization and exceptional items were EUR133 million
last year, while sales fell 41% to EUR1.51 billion.
The company has also issued a warning that a "new downturn" in
the servers and services market would drag sales down a further
10% sequentially to EUR660 million in the first half, but said it
would still break-even with EBITDA of EUR7 million.
CONTACT: BULL
68, route de Versailles
78430 Louveciennes, France
Phone: +33-1-39-66-60-60
Fax: +33-1-39-66-60-62
Homepage: http://www.bull.com
Contacts: Pierre S. E. Bonelli, Chairman
Gervais Pellissier,
Deputy Chief Operating Officer
FRANCE TELECOM: Moody's Confirms Debt Rating of Subsidiary
----------------------------------------------------------
Moody's confirmed the Baa3 long-term senior unsecured debt
ratings of Orange plc, a subsidiary through Orange S.A., which
Moody's believes will contribute to the pro rata share of the
large capex and opex savings within France Telecom's cost saving
plan.
In December 2002 France Telecom announced various strategy
initiatives, which included a plan to implement EUR15 billion of
cost savings during the next three years.
The rating was maintained at a stable outlook. The confirmation
follows the recent confirmation of France Telecom's long-term
senior unsecured ratings at Baa3 with a stable outlook.
Moody's regards France Telecom as Orange's primary source of
funding, particularly because France Telecom owns 86% of Orange.
And as such, the rating agency says: "it is prudent to continue
to rate Orange plc debt at the same level as that of FT, because
of Orange's reliance on FT as its primary source of financing."
This was done despite France Telecom's strong debt protection
measures at Orange.
Other reasons for considering Orange's dependence on France
Telecom for funding are the importance of FT in setting strategic
direction for Orange, and Moody's view that the companies will
become more closely aligned in the future.
FT owns approximately 86% of the Orange S.A.'s equity, which in
turn owns 100% of Orange plc.
SCOR GROUP: Had 2002 Premium Income of EUR 5,016 Million
--------------------------------------------------------
SCOR Group's gross written premiums for 2002 totaled EUR 5,016
million at current exchange rates, an increase of 2.6% relative
to 2001.
The Group's retention rate reached 89%, against 84% in 2001.
- Analysis of premium income by activity reflects the shift back
to SCOR's core business
in EUR millions 2001 2002 Change
P&C Reinsurance 1,931 2,069 + 7 %
Life & Accident Reinsurance 1,503 1,530 + 2 %
Large Corporate Accounts 561 874 + 56 %
Credit &Bond 175 117 - 33 %
Alternative Risk Transfer (ART) 720 426 - 41 %
Consolidated premium income 4,890 5,016 + 2.6 %
Premium income was practically unchanged, reflecting:
a strict approach to underwriting, selecting only profitable
activities, significantly increased rates, especially in Large
Corporate Accounts and in P&C reinsurance, which were offset by .
a negative foreign-exchange impact linked mainly to the
depreciation of the dollar : premium income would have been up
13% at constant exchange rates.
As of 2002, SCOR has been focusing on short-to-medium tail
business. Property damage business now accounts for 47.3% of
total property and liability writings, against 42.3% in 2001.
Credit&Bond activity continues to be reduced (-33%), SCOR having
ceased Credit Derivative underwriting completely since November
2001, and having significantly scaled down Surety business in the
United States since the end of 2000.
ART business is down sharply (-41%), in keeping with the Group's
new strategy. After having reduced its writings since first-half
2002, Commercial Risk Partners (CRP) ceased writing new business
entirely in January 2003.
Excluding CRP, Group premium income in 2002 totaled EUR 4,521
million.
- The geographic breakdown of premium income signals the shift
of emphasis in favor of Europe
2001 2002
Europe 34 % 42%
of which France 12 % 16 %
North America 52 % 43 %
Asia-Pacific 7 % 7 %
Rest of World 7 % 8 %
Total 100 % 100 %
This shift in the portfolio's geographic structure - amplified by
the euro's appreciation - reflects the Group's new strategy of
focusing on expanding its business in Europe and Asia relative to
the United States.
- Implementing the "Back on Track" Plan
SCOR has begun implementing the decisions announced in the "Back
on Track" plan:
refocusing on the most profitable activities in its core
business, (i.e. non-proportional treaties, facultatives, life &
accident reinsurance,.) is underway;
recentering on short-tail lines of business rather than liability
classes has begun;
rebalancing its book towards Europe and the Asia-Pacific region
is in progress.
Financial disclosure timetable
2003 renewals and new Group organization chart: March 3, 2003
2002 results: April 1, 2003
Annual Shareholders' Meeting: May 15, 2003
SUEZ SA: Long-term Corporate Credit Ratings on CreditWatch
----------------------------------------------------------
Standard & Poor's Ratings Services placed its 'A-' long-term
corporate credit ratings on France-based multi-utility company
Suez S.A.), and related subsidiaries, on CreditWatch with
negative implication. The 'A-2' short-term credit rating on Suez
was affirmed.
The action follows the company's announcement of weaker-than-
expected preliminary results for 2002. This is compounded with a
significant decline in the value of its non-core financial assets
during 2002, said Standard & Poor's credit analyst Karl Nietvelt.
The rating agency, though, acknowledges the company's effort to
rapidly reduce its net debt of EUR28.2 billion as of June 30,
2002, by approximately one-third by year-end 2004, through the
sale of core and non-core assets and a sharp reduction of its
investment program.
Mr. Nietvelt said the rating agency expects to resolve the
CreditWatch placement pending issuance and analysis of 2002 year-
end results.
The long-term ratings could either be maintained or lowered by
one notch depending on the analysis and on Suez's ability to
improve future credit protection ratios to levels in line with
the rating category.
VIVENDI UNIVERSAL: Sells 50% Stake in Vivendi Universal Net
-----------------------------------------------------------
Vivendi Universal sold its 50% stake in Vivendi Universal Net for
Mobile to Universal Music International, a division of Universal
Music Group, for an undisclosed amount.
The deal, which involves re-branding the purchased company
Universal Mobile, enabled Universal Music International to
acquire 100% of Vivendi Universal Net.
Vivendi is currently divesting assets to pay down EUR19 billion
of debts acquired during ex-CEO Jean-Marie Messier's US$77
billion acquisition spree.
Chief Executive Officer Jean-Rene Fourtou targets to unload
EUR16billion in assets before 2004 to reduce debt and refocus
activities.
The company recently offered its Seagram art collection for
auction.
It also announced an intention to put on sale three business
aircraft, which the former Vivendi inherited from its merger with
Canadian drinks and leisure group Seagram.
CONTACT: VIVENDI UNIVERSAL
Inverstor Relations
Paris
Daniel Scolan
Phone: +33 (1).71.71.3291
Laurence Daniel
Phone: +33 (1).71.71.1233
New York
Eileen McLaughlin
Phone: +(1) 212.572.8961
=============
G E R M A N Y
=============
ALLIANZ GROUP: Fitch Downgrades Insurer Financial Strength
----------------------------------------------------------
Fitch Ratings downgraded Allianz Group's Insurer Financial
Strength rating to 'AA-' from 'AA' and Long-term issuer rating to
'A' from 'AA-' on concerns over the current capital financial
position of the group. The EUR1.1 billion 4.625% notes due 29
November 2007 issued in November 2002 by Allianz Finance BV and
the EUR900 million 5.625% notes due 29 November 2012 issued in
November 2002 by Allianz Finance II BV are also downgraded to 'A'
from 'AA-' (AA minus). All ratings remain on Rating Watch
Negative.
The group's current financial position has weakened considerably
since the first half of 2002, and Fitch says the group's capital
has declined as falling asset values have impacted revaluation
reserves. It also notes Allianz continued significant exposure
to equities.
While considering the group's efforts in raising debt to support
its capital position, the rating agency mentioned that debt
leverage for Allianz has consequently risen from historically
very low levels to levels regarded as high for the previous
rating.
Allianz was able to succesfully raise EUR3.5 billion of debt in
the 4th quarter of 2002, in addition to EUR2 billion of debt
raised in the second quarter.
The group's third quarter results for 2002 were affected by
ongoing losses from the Dresdner banking operations, loss
provisions for the 2002 European floods, reserve strengthening
for asbestos liabilities, asset impairments and substantial
unrealized asset depreciation. Fitch notes that the group has
yet to realize any substantial synergistic benefits from the
Dresdner acquisition.
Fitch indicated to resolved the Rating Watch pending a further
review of the group's full year results, due on March 20, wherein
it is expected that Allianz will announce its worst loss in
history.
The rating may be further downgraded, possibly by more than one
notch, upon further deterioration of the capital position and
lack of clarity over the future strategy of the group.
Allianz has recently reviewed and amended its bancassurance
strategy and has announced the closure of the Advance Bank
operation and IFA distribution channel.
COMMERZBANK AG: Jobs Face Axe on Failure of Salary Cut Plan
-----------------------------------------------------------
Around 80 investment banking jobs in Commerzbank's Frankfurt
operation faces the axe as investment bank employees showed
little enthusiasm for the bank's scheme of cutting salaries in
exchange for lesser layoffs.
The jobs will have to go if investment bankers don't agree on
salary reductions, the bank's works council said, according to
Dow Jones.
Commerzbank is pushing for a plan for a four-day working week and
an 18% salary cut, in return for assurance that no investment
banking jobs will be cut between March 1 and Dec. 31.
The strategy needed the approval of around 75% of the 457 staff
in the Frankfurt investment bank in order to be implemented, but
so far, the works council received only half of the surveys back,
and not even half of those responses show support for the plan.
The remaining surveys are due to be returned by the beginning of
this week.
The report said: "The problem is that many investment bankers are
used to working very long days, as much as 60 hours a week.
Cutting down the hours may be impossible for many of the staff,
who are normally rewarded with commissions and bonuses for
bringing in business."
Another consideration is on how the unit would function after the
salary cuts or job cuts, noting that the bank has not presented
the works council with such business plan.
Commerbank, which targets to bring annual cost below EUR5 billion
this year, indicated earlier it plans to cut 345 investment
bankers, mostly in foreign offices. The London unit workforce
was already trimmed down last week.
CONTACT: COMMERZBANK AG
Kaiserplatz
60261 Frankfurt, Germany
Phone: +49-69-136-20
Fax: +49-69-28-53-89
Homepage: http://www.commerzbank.com
Contacts:
Klaus-Peter Muller, Chairman
Axel Frhr. v. Ruedorffer, Managing Director
DRESDNER BANK: Fitch Downgrades Long-term Rating to 'A-'
--------------------------------------------------------
Fitch Ratings downgraded Dresdner Bank's Long-term rating to 'A-'
from 'A+' following the downgrade of Alianz Group's Fitch
Initiated Insurer Financial Strength to 'AA-' and Long-term
issuer rating to 'A'. The rating was removed from Rating Watch
Negative and assigned a stable outlook. At the same time, the
Short-term rating has been downgraded to 'F2' from 'F1'. The
Support rating has been changed to '2' from '3'. The Individual
rating of the bank has been affirmed at 'D'.
The rating agency warned that some uncertainties regarding
potential support available from Dresdner bank's parent, Allianz,
are starting to arise.
The individual rating shows the bank's negative operating
profitability. Fitch attributed the constraints in Dresdner
Bank's revenue generating capacity to poor market conditions and
cuts in its businesses.
Fitch says: "Adverse economic conditions, in particular in
Germany, and the clean-up of the bank's loan book have resulted
in substantial loan loss provisions." While saying that
capitalization will benefit from reduction in assets, Fitch
expressed its belief that Dresdner Bank's Tier 1 ratio is
unlikely to have fallen from its end-September 2002 level of
6.2%.
The stable outlook on the long-term rating reflects the rating
agency's belief that the German authorities will support the bank
should further deterioration occur and in the unlikely event that
the bank runs into severe difficulties.
Fitch, meanwhile, downgraded the long-term ratings for dated
silent participation certificates issued through Dresdner Funding
Trusts I, II, III and IV to 'BBB' from 'A', and removed it Rating
Watch Negative.
Fitch clears that the certificates do not benefit from potential
state support to the same extent as the bank's senior Long-term
rating does.
It warns that significant further deterioration in capitalization
and profitability of Dresdner Bank would trigger a further
downgrade.
The Long-term rating for Dresdner Bank's subordinated debt has
been downgraded to 'BBB+' from 'A' and removed from Rating Watch
Negative.
FRESENIUS MEDICAL: Long-term Rating Assigned to Bank Facilities
---------------------------------------------------------------
Standard & Poor's assigned its 'BB+' long-term rating to
vertically integrated dialysis provider Fresenius Medical Care
AG's US$1.5 billion senior secured syndicated bank facilities.
Using an enterprise valuation method to assess loan recovery, the
credit facilities are rated at the same level as the corporate
credit rating on FMC.
Standard & Poor's credit analyst Anne-Charlotte Pedersen said:
"Under this method, the level of stressed collateral coverage is
below the point where we could consider notching up from the
corporate credit rating."
The rating agency chose the method as it considers that
reorganization will be the more likely outcome of any potential
insolvency, although lenders should still expect meaningful
recoveries (in the range of 50-80%) as a result of their secured
position.
The group plans to use the proceeds for refinancing existing
indebtedness and general corporate purposes.
The $1.5 billion senior secured facilities are split between a
$500 million term loan and a $500 million revolving facility,
which both mature in October 2007, and a seven-year $500 million
term loan, which matures in February 2010. The facilities are
secured by share pledges and also benefit from a comprehensive
cross-guarantee package from the material companies in the group.
=========
I T A L Y
=========
TELECOM ITALIA: Chairman Outlines Plans for Businesses
------------------------------------------------------
Telecom Italia chairman Marco Tronchetti Provera said the company
could sell additional minor assets in the near future in addition
to the EUR5.2 billion divested earlier.
Mr. Provera mentioned that Telecom Italia already agreed to sell
its remaining holding in Telekom Austria as of 2004.
The chairman, however, denied that its directories business,
Pagine Gialle, or its information unit, Finsiel, could be sold.
He also denied reports that an investment bank had been assigned
to manage the sale.
"Pagine Gialle produces cash flow and is a positive asset in the
portfolio of the company," he said.
Mr. Provera, though, indicated he is interested in a partnership
between Finsiel and other market players, saying, "we want to
reinforce Finsiel." He declined, however, to name possible
partners, as there's nothing concrete yet.
There are also speculations that a deal could be made with
information technology company, Elsag, which was also said to
have been offered for sale.
As for a merger with Olivetti, which already owns 55% of Telecom
Italia, Mr. Provera reiterated that it is a deal that would be
carried out once there are suitable market conditions.
Mr. Provera also said there are no plans to alter the 20% stake
it will have in the Italian pay TV venture Sky Italia.
CONTACT: TELECOM ITALIA
Corso d'Italia 41
00198 Rome, Italy
Phone: +39-06-368-81
Fax: +39-06-368-83388
Home Page: http://www.telecomitalia.it
Contact:
Investor Relations:
Phone: +39 06 36882119
+39 06 36883378
+39 06 36882634
TIM GROUP: Aims to Generate GBP12 Billion in Free Cash Flow
-----------------------------------------------------------
- Growth targets confirmed
- Domestic profitability: stable in the 2002 - 2005 period
- Breakeven for TIM Brasil (at free cash flow level) by 2005
The 2002 results, income and financial objectives, domestic
market share and international operations: these were the
principal themes that Marco De Benedetti's, Chief Executive
Officer of TIM, discussed in his address during the meeting with
the financial community in Milan.
Among the 2002-2005 objectives the accumulated 2003-2005 free
cash flow (GOP-Capex) amounting to GBP12 billion was especially
highlighted. Revenues will increase at a compounded average
growth rate (CAGR) of 5 - 6% for the domestic market and 7 - 8%
for the Group. GOP is expected to grow at a CAGR of 5 - 6% in
Italy and 8 - 9% for the Group as a whole.
The domestic investment plan forecast for the next three year
period will amount to GBP3.7 billion of which 55% will be
specifically earmarked to innovation. Furthermore, in terms of
innovation, the growth in VAS revenues is forecasted to reach a
CAGR of 30 - 40% per annum in the period 2002 - 2005.
In terms of profitability, the GOP/revenues ratio is forecasted
to remain stable for the domestic market in the period 2002 -
2005.
As regards the international activities of TIM, particular
attention was given to Brazil where, from 2003 to 2005 the
overall amount of investments is forecasted to reach GBP1.2
billion. The breakeven in the Brazilian operations at the level
of free cash flow will be achieved in 2005. In the same year TIM
aims to reinforce its operations in the country by increasing its
market share to 26% from the present quota of 16% in relation to
the penetration of mobile telephony in Brazil, which is expected
to reach 26% (at present 19%).
* * *
In his address, Marco De Benedetti, referring to the preliminary
results already disclosed, underlined the Company's leadership in
terms of innovation and value-added services. In this respect the
results of the Christmas campaign were very positive: 1.8 million
handsets sold (compared to 1.6 million in the 2001 campaign) of
which 400 thousand new generation of MMS phones that enable
customers to use the multimedia services that characterise the
new business cycle. On an annual basis MMS handsets sold by TIM
amounted to 700 thousand, of which 100 thousand with built-in
camera.
As concerns the financial results, ARPU exhibited a positive
growth in 2002 registering in the last quarter an increase of 4%
(GBP28.6) with respect to the same period of last year
(GBP27.5).The increase for the entire year stood at 1%.
The following important factors could cause the Telecom Italia
Group's actual results to differ materially from those projected
or implied in any forward-looking statements:
- the continuing impact of increased competition in a liberalized
market,
- including competition from global and regional alliances formed
by other
- telecommunications operators in the core domestic fixed-line
and wireless markets of the Telecom Italia Group;
- the ability of the Telecom Italia Group to introduce new
services to
- stimulate increased usage of its fixed and wireless networks to
offset declines in its fixed-line business due to the continuing
impact of regulatory required price reductions, market share loss
and pricing pressures generally;
- the ability of the Telecom Italia Group to achieve cost-
reduction targets in the time frame established or to continue
the process of rationalizing its non-core assets;
- the impact of regulatory decisions and changes in the
regulatory environment;
- the impact of the slowdown in Latin American economies and the
slow recovery of economies generally on the international
business of the Telecom Italia Group focused on Latin America and
on its foreign investments and capital expenditures;
- the continuing impact of rapid changes in technologies;
- the impact of political and economic developments in Italy and
other countries in which the Telecom Italia Group operates;
- the impact of fluctuations in currency exchange and interest
rates;
- Telecom Italia's ability to continue the implementation of its
2002-2004 Industrial Plan, including the rationalization of its
corporate structure and the disposition of Telecom Italia's
interests in various companies;
- the ability of the Telecom Italia Group to successfully achieve
its debt reduction targets;
- Telecom Italia's ability to successfully roll out its UMTS
networks and services and to realize the benefits of its
investment in UMTS licenses and related capital expenditures;
- SEAT's ability to successfully implement its internet strategy;
- the ability of the Telecom Italia Group to achieve the expected
return on the significant investments and capital expenditures it
has made in Latin America and in Europe;
- the amount and timing of any future impairment charges for
Telecom Italia's licences, goodwill or other assets; and
- the impact of litigation or decreased mobile communications
usage arising from actual or perceived health risks or other
problems relating to mobile handsets or transmission masts.
The foregoing factors should not be construed as exhaustive. Due
to such uncertainties and risks, readers are cautioned not to
place undue reliance on such forward-looking statements, which
speak only as of the date hereof. Accordingly, there can be no
assurance that the group will achieve its forecasted objectives.
=====================
N E T H E R L A N D S
=====================
IFCO SYSTEMS: Announces Changes to Board of Directors
-------------------------------------------------------
IFCO Systems N.V. announced Friday changes to the Board of
Directors which are in accordance with the recent Restructuring
Agreement. At the Company's Extraordinary General Meeting on 31
January 2003, it was resolved to appoint three new directors,
Jeremy Brade, Ton C.M. Heijmen and Richard Moon, to the Board as
C Directors. The EGM also resolved to accept the resignation of
Martin Schoeller and Cornelius Geber as Directors of the Board
under full discharge.
Jeremy Brade, 42, is Director of Private Equity at J O Hambro
Capital Management Ltd where he has been since May 2001. He
manages European and US unlisted investments. He is actively
engaged in monitoring the portfolio, often serving as a non-
executive director on the board of investee companies (e.g.
United Industries plc, Nationwide Accident Repair Service plc,
IMP Leisure Limited, PNC Telecom plc). Prior to this he was at
the Foreign and Commonwealth Office (UK).
Ton C.M. Heijmen, 58, has been with PriceWaterhouseCoopers, LLP
since 1989 in various positions, including as Partner Business
Process Outsourcing Theatre Leader & Global Marketing Director;
International Executive Partner, Management Consulting Services;
Partner-in-Charge, International Consulting; and Managing
Partner, MCS Northeast Region. He has also worked on the
Executive Board of Emery Worldwide, a leading global air freight
transportation and logistics company.
Richard Moon, 52, has been Chairman of Synergie Business Ltd
since 2002. From 2000 until 2001 Mr. Moon was Chief Executive of
Thales plc (formerly Thomson - CSF Racal). From 1997 until 1999,
he served as Chief Executive of Racal Defence Electronics, Racal
Communications and on the Board of Racal Electronics Plc. From
1989 until 1996, he served in various positions at Thorn EMI
Electronics, including as Managing Director of Thorn EMI
Electronics Sensors Group, Managing Director of Thorn Automation
and Group Operations Director. He currently serves on the Board
of Netia Holdings SA and Genod SA.
Pursuant to the Restructuring Agreement the Board of Directors is
now comprised of seven members in total, which includes the
existing Directors, Christoph Schoeller (Chairman), Sam W.
Humphreys and Eckhard Pfeiffer, as well as Karl Pohler, CEO, as
the management representative.
Christoph Schoeller, Chairman of the Board, stated: "I welcome
the three new board members who, together with the other board
members, will support IFCO in building value for all
stakeholders."
CONTACT: Gabriela Sexton, Investor Relations
IFCO Systems N.V.
Zugspitzstrasse 7
82049 Pullach - Deutschland
Phone: +49 89 744 91 223
E-mail: Gabriela.Sexton@ifco.de
GETRONICS N.V.: Gains Support for Revised Invitation to Tender
--------------------------------------------------------------
Over 60% of the aggregate amount of convertible bonds outstanding
supported the tender that opened.
A revised preliminary prospectus setting out the details of the
Revised Invitation to Tender is published.
Bondholders will call for a bondholders meeting to approve
resolutions leading to a mandatory conversion. The Company will
call an Extraordinary Meeting of Shareholders to adopt
resolutions amending its share capital. The Revised Invitation to
Tender will only proceed if both these resolutions are approved.
Successful completion of the financial restructuring will provide
the Company with a long-term financing solution and is expected
to restore the confidence of clients and financial markets.
Bondholder Support
Getronics is now in a position to confirm that over 60% of the
aggregate nominal value of the two outstanding subordinated
convertible bonds due April 2004 and March 2005 (together, the
'Existing Bonds') already support the Revised Invitation to
Tender. 44.4% committed to tender immediately, and 17% have
confirmed their support and are therefore expected to tender.
Revised Preliminary Prospectus Published
Full details of the Revised Invitation to Tender and the
Mandatory Conversion are published today in a preliminary
prospectus dated 14 February 2003. See the Appendices of this
release for the technical details of the Revised Invitation to
Tender and the Mandatory Conversion and the timetable.
Bondholders meeting/EGM
Bondholders will call for a bondholder meeting to approve
resolutions possibly leading to a mandatory conversion. The
Company will call an Extraordinary Meeting of Shareholders to
adopt resolutions amending its share capital. The Revised
Invitation to Tender will only proceed if these resolutions of
both the Bondholders Meeting and the EGM are approved.
Long-term financing solution
Successful completion of the financial restructuring is expected
to provide the Company with a long-term financing solution and is
expected to restore the confidence of clients and financial
markets.
Full details of the Revised Invitation to Tender and the
Mandatory Conversion are contained in the attached appendices.
About Getronics
With approximately 25,000 employees in over 30 countries,
Getronics is one of the world's leading providers of vendor
independent solutions and services to professional users of
Information and Communication Technology (ICT). Through
consulting, integrating, implementing and managing Infrastructure
Solutions and Business Solutions, Getronics helps many of the
world's largest global and local organisations to maximise the
value of their technology investment and improve interaction with
their customers. Getronics' headquarters are in Amsterdam, with
regional head offices in Boston and Singapore. Getronics' shares
are traded on Euronext Amsterdam ('GTN').
Appendix I:
Summary of Revised Invitation to Tender and Mandatory Conversion
Appendix 2: Summary Timetable
CONTACT: GETRONICS N.V.
Investor enquiries
Getronics Investor Relations
Phone: +31 20 586 1964
Fax: +31 20 586 1455
E-mail: investor.relations@getronics.com
===========
P O L A N D
===========
ELEKTRIM SA: Informs of BRE Bank's Assumption of 9.55% of Capital
-----------------------------------------------------------------
The Management Board of Elektrim S.A. announces that on February
14, 2003 it was informed by BRE Bank S.A. that pursuant to the
decision of the Securities and Exchange Commission no
DPP/415/04/03 dated February 10, 2003, BRE Bank S.A. took over
the subject of a registered pledge and on February 11, 2003
assumed 7,998,466 shares of Elektrim S.A. representing 9.55% of
capital and entitling to 7,998,466 votes at a general meeting of
Elektrim S.A. which represent 9.55% of the total number of votes
at a general meeting of the Issuer.
At present, BRE Bank holds 25,010,652 shares of Elektrim S.A.
representing 29.86% of capital and entitling to 25,010,652 votes
at a general meeting of Elektrim S.A. which represent 29.86% of
the total number of votes at a general meeting of the Issuer.
===========
R U S S I A
===========
METROMEDIA INTERNATIONAL: Shares to Be De-listed From AMEX
---------------------------------------------------------
Metromedia International Group, Inc., the owner of various
interests in communications and media businesses in Eastern
Europe, the Commonwealth of Independent States and other emerging
markets, announced that it had received notice from the staff of
The American Stock Exchange indicating that the Exchange intends
to proceed with de-listing the Company's Common Stock and 7 1/4%
Cumulative Convertible Preferred Stock from the Exchange because
the Company no longer complies with the continued listing
requirements of the Exchange.
Specifically, the Company has incurred losses in two of the three
most recent fiscal years with shareholders' equity of less than
$2 million; the Company has incurred losses in three of four of
the most recent fiscal years with shareholders' equity of less
than $4 million; and the Company has incurred losses in the five
most recent fiscal years with shareholders' equity of less than
$6 million, as set forth in Sections 1003(a)(i); 1003(a)(ii); and
1003(a)(iii), respectively, of the Company Guide. The staff of
the Amex further indicated its belief that the Company has fallen
below the requirements of Section 1003(a)(iv) in that the
Company's operating results are unsatisfactory and its financial
condition may be impaired, raising questions about whether it
will be able to continue operations or meet its obligations as
they mature. The staff also noted that the Company's Common Stock
has been selling for a substantial period of time at a low price
per share (Section 1003(f)(v)).
The Company anticipates that, upon de-listing from the AMEX, the
Company's shares will trade on the OTC bulletin board. The staff
of the AMEX has not advised the Company when de-listing will be
effective.
Carl Brazell, the Company's Chairman and CEO commented: "The day-
to-day operations of the Company should not be adversely affected
by this development. All relationships with customers, suppliers
and employees will continue in the normal course.
About Metromedia International Group
Metromedia International Group, Inc. is a global communications
and media company. Through its wholly owned subsidiaries and its
business ventures, the Company owns and operates communications
and media businesses in Eastern Europe, the Commonwealth of
Independent States and other emerging markets. These include a
variety of telephony businesses including cellular operators,
providers of local, long distance and international services over
fiber-optic and satellite-based networks, international toll
calling, fixed wireless local loop, wireless and wired cable
television networks and broadband networks and FM radio stations.
Please visit our website at http://www.metromedia-group.com
CONTACT: METROMEDIA INTERNATIONAL GROUP, INC.,
New York
Ernie Pyle
Phone: 212-527-3800
===========
S W E D E N
===========
LM ERICSSON: Outgoing Chief Executive Likely to Remain
------------------------------------------------------
LM Ericsson Chief Operating Officer Per-Arne Sandstrom and
incoming CEO Carl-Henric are holding talks to define the future
role of Mr. Sandstrom in the Swedish company, a spokeswoman
revealed.
While saying that Mr. Sandstrom is likely to remain despite the
arrival of the new CEO, the source emphasized that no final
decision has yet been made.
Analysts are closely watching the resignation of the person
responsible for overseeing Ericsson's restructuring program.
Mr. Sandstrom has far more experience in the telecommunications
industry than Mr. Svanberg, and analysts were concerned that his
tandem with a chairman, Michael Treschow, who is equally a
newcomer to the telecommunications industry, could weaken the
future management structure of Ericsson.
Mr. Svanberg had declined to comment on a possible overhaul of
the top-management team at Ericsson, says the Wall Street
Journal.
Moody's Investors Service recently placed on review for possible
downgrade the Ba2 bond and senior implied ratings of Ericsson,
following a deeper than expected decline in Ericsson's revenues
in the fourth quarter of 2002.
The action was also influenced by Ericsson's worrisome sales
outlook, and the concern that orders may not yet be stabilized
this year.
CONTACT: LM ERICSSON
Henry Stenson, Senior Vice President, Corporate
Communications
Phone: +46 8 719 4044
E-mail: henry.stenson@lme.ericsson.se
Investors
Gary Pinkham, Vice President, Investor Relations
Phone: +46 8 719 00 00
E-mail: investor.relations@ericsson.com
Lotta Lundin, Manager, Investor Relations
Phone: +44 20 701 61 032
E-mail: lotta.lundin@clo.ericsson.se
Glenn Sapadin, Manager, Investor Relations
Phone: +1 212 685 4030
E-mail: investor.relations@ericsson.com
SCANDINAVIAN AIRLINE: Files Suit Against Finnish Government
-----------------------------------------------------------
Scandinavian Airlines System AB, the Nordic region's biggest
airline, accused the Finnish Finance Ministry of unfairly
favoring the services of Finnair Oyj for its official travels.
The struggling airline company said it is suing the Ministry for
supporting its rival airline by purchasing travel tickets for its
officials.
Teuvo Metsapelto, the Ministry's director, however, denied the
accusation.
SAS communication director in Finland Tom Christides also denied
the suit has anything to do with the increased competition
between the carrier and Finnair.
SAS was hit hard by the plunge in air traffic and especially
business travel demand during the past couple of years. It
posted narrowing full-year losses and expects a weak economy to
put pressure on revenues.
SAS posted a fourth-quarter pre-tax loss of SEK683 million (US$
79.98 million), while its full-year pre-tax loss narrowed to
SEK450 million from a loss of SEK1.1 billion a year ago. Full-
year sales rose to 64.9 billion crowns from 51.4 billion in 2001.
The airline, which recently nominated Soren Belin as new chief
operating officer of key unit Scandinavian Airlines, is planning
to implement additional restructuring measures in view of the
uncertain market situation and intensifying competition.
CONTACT: SAS AB
Frosundaviks Alle 1, Solna
S-195 87 Stockholm, Sweden
Phone: +46-8-797-00-00
Fax: +46-8-797-12-10
Homepage: http://www.scandinavian.net
Contacts: Harald Norvik, Chairman
Bo Erik Berggren, Vice Chairman
FINNAIR OYJ
PL 15, FIN-01053
Phone: +358 9 818 81
Fax: +358 9 818 4092
Homepage: http://www.finnair.fi
===========================
U N I T E D K I N G D O M
===========================
ABERDEEN ASSET: Proposed Disposal of Retail Fund Management
-----------------------------------------------------------
Further to its announcement on January 9, 2003 that it was in
negotiations with New Star in respect of a potential disposal of
retail fund management rights, Aberdeen announces Saturday:
- the proposed disposal to New Star of management rights for the
following six retail funds, representing, as at January 14, 2003
(being the latest practicable date prior to announcement of the
Disposal), EUR1.85 billion of assets under management:
- Aberdeen Fixed Interest Unit Trust;
- Aberdeen Technology Unit Trust;
- Aberdeen Equity Income Fund (a sub-fund of Aberdeen Investment
Funds ICVC);
- Aberdeen High Yield Bond Unit Trust;
- Aberdeen Sterling Bond Unit Trust;
- Aberdeen European Technology Unit Trust;
- the agreement of a price estimated at EUR92.5 million for the
Rights, payable in cash largely at completion, representing a
valuation of 5% of the assets under management to which the
Rights relate;
- estimated cost reductions of between EUR12 million and EUR15
million in the first full year following completion of the
Disposal;
- its intention to use the net proceeds from the Disposal for
debt reduction, reducing net gearing from approximately 113% to
approximately 64%;
- a continued commitment to focus on its strengths in the
active management of debt and equity securities and to continue
with the divestment of Aberdeen Property Investors by way of
flotation or trade sale; and
- the maintenance of a broad range of funds enabling the
Aberdeen Group to meet the needs of current and prospective
clients.
Commenting on the transaction, Martin Gilbert, Chief Executive of
Aberdeen said: "I am pleased with the outcome of this
transaction. This agreement with New Star allows us to capitalise
otherwise vulnerable revenues, reduce debt (and hence gain
additional financial flexibility), and release valuable resources
from the day-to-day pressure of fighting to maintain a
challenging position in this part of the U.K. retail market.
Following this transaction and the flotation or sale of API we do
not expect to make any further substantial disposals.
"Looking forward, we are focused on re-grouping around our core
strengths in equity and fixed interest fund management. Our
investment process has been steadily strengthened and enhanced in
recent years and we are making a tactical withdrawal from parts
of the retail market in the U.K. for a period, until world
financial markets show signs of a sustained recovery. We envisage
a full return to the U.K. retail market in around two years time,
on a platform of strong investment performance and clear and
distinct investment style and process."
BRITISH ENERGY: Government Statement to Stock Exchange
------------------------------------------------------
Last Autumn, British Energy submitted a plan to the Government
for the solvent restructuring of the company to address its
financial difficulties. On November 28, 2002 the Secretary of
State for Trade and Industry Patricia Hewitt announced that the
Government was prepared to play its part in supporting the
company's plan.
The Government's overriding objectives have been to ensure the
safety of the nuclear power stations and the security of
electricity supplies to the grid and consumers. In any
circumstances, British Energy's significant nuclear liabilities
require safe and experienced management. Because the Government
has a responsibility to ensure safety, we had to consider how
this goal could be most effectively delivered while protecting
the taxpayer's interest. The company's plan, on which the
Government imposed tough conditions, is acceptable because it
meets these tests.
British Energy has today made an announcement on the progress it
has made in fulfilling the conditions set out by the Government
on November 28.
On the basis of the company's announcement, the Government
confirms that it is prepared to seek state aids approval from the
European Commission for the restructuring plan. A submission will
be made by March 9.
The Government is also willing to extend the company's credit
facility at a reduced level for a period after March 9. The limit
and duration of the facility will be decided in the light of the
company's future requirements and under state aids rules, as well
as to protect taxpayers' interests, must be the minimum
necessary.
British Energy's announcement today is an important step forward
in the implementation of its restructuring plan, but much remains
to be done by the company, including effecting the sale of
Amergen and securing binding agreements from its creditors to the
restructuring.
It remains open to the Government to withdraw the credit facility
if the company does not continue to make progress in successfully
delivering its restructuring plan.
In that event, the Government has contingency plans ready to fund
the administration of the company. This will ensure that whatever
happens the nuclear power stations will continue to generate
electricity and employ staff and customers' lights will stay on.
Nuclear safety and security of electricity supply will be
maintained.
Patricia Hewitt, Secretary of State for Trade and Industry, said:
"I welcome the progress the company has made so far in
implementing its restructuring plan. British Energy has made real
progress in meeting the conditions set out on November 28, but
will need to work hard to implement the plan in full. The
Government is well prepared for administration in case it fails."
CABLE & WIRELESS: Files Legal Complaint With Takeover Panel
-----------------------------------------------------------
Britain's Cable & Wireless will file a complaint with the
Takeover Panel against Pacific Century Cyberworks to force Hong
Kong's biggest telecom company to clarify its intentions
regarding a takeover approach.
PCCW earlier said in a statement to the stock exchange in Hong
Kong it will not make an offer for the struggling telecom group,
having concluded that it is not in the company's interests for
the continuing uncertainty regarding any possible take over offer
for C&W to continue.
However, PCCW has since hinted that it is still interested in the
U.K. group.
The Hong Kong stock exchange has since asked Richard Li, the
chairman of PCCW, to make clear his intentions, while the U.K.
Panel has yet to act.
Cable & Wireless' divisions include C&W Regional in the Caribbean
and Asia, and the struggling C&W Global corporate telecom unit.
C&W Regional, which has a steady cash flow, is sustaining C&W
Global towards its anticipated break-even in early 2004.
CONTACT: CABLE AND WIRELESS PLC
124 Theobalds Rd.
London WC1X 8RX, United Kingdom
Phone: +44-20-7315-4000
Fax: +44-20-7315-5000
Homepage: http://www.cwplc.com
Contacts: Richard D. Lapthorne, Chairman
Graham M. Wallace, Chief Executive
CORUS GROUP: Holds Negotiations Over Refinancing With Banks
-----------------------------------------------------------
Anglo-Dutch steelmaker Corus is holding negotiations concerning a
GBP1.2 billion refinancing with its banks, according to Times
Online. The loan is half of Corus' GBP2.3 billion banking
facilities.
According to the report, Corus is asking the group of banks, led
by HSBC, ABN Amro, and CSFB, to extend the syndicated loan that
expired last year.
CSFB is believed to have remained in the talks and to continue
its guarantee on the loan despite Standard & Poor's downgrade of
Corus' debt to junk status.
The report of the negotiations comes amid fears of potential
problems with the crucial sale of its aluminium business, with
which the reduction of the company's gearing depends.
Corus's gearing stands at 45% after the company used sales last
year to reduce the level from 59%.
The sell-off could face legal challenge from employees on the
Dutch works council who are allowed of such move under the rules
in Netherlands.
If the sale is successfully blocked it would make the revival of
the company difficult, says the report.
The negotiations also come amid fears about continued losses at
the company. Corus is expected to announce for last year analyst
expect to be about GBP400 million.
CONTACT: Corus Corporate Relations
Phone: +44 (0) 20 7717 4502/4505
Corus Investor Relations
Phone: +44 (0) 20 7717 4503/4504
Credit Suisse First Boston
Stuart Upcraft/Hugh Richards
Phone: +44 (0) 20 7888 8888
HSBC Holdings plc
10 Lower Thames St.
London EC3R 6AE, United Kingdom
Phone: +44-020-7260-0500
Fax: +44-020-7260-0501
Hompage: http://www.hsbc.com
Contacts: Sir John R. H. Bond, Group Chairman
Sir Brian Moffat, Deputy Chairman
ABN AMRO HOLDING N.V.
Foppingadreef 22
1102 BS Amsterdam, The Netherlands
Phone: +31-20-628-9393
Fax: +31-20-629-9111
Homepage: http://www.abnamro.com
Contacts: Jonkheer Aarnout A. Loudon, Chairman,
Supervisory Board
Rijkman W. J. Groenink, Chairman, Managing
Board
CREDIT SUISSE FIRST BOSTON (USA), INC.
11 Madison Ave.
New York, NY 10010
Phone: 212-325-2000
Fax: 212-538-3395
Homepage: http://www.csfb.com
Contacts: John J. Mack, President
David C. Fisher, Chief Executive Officer
EDINBURG FUND: Fired 17 More Employees as Part of Shake-Up
----------------------------------------------------------
Embattled Edinburgh Fund Managers axed 17 employees more as part
of a thorough and comprehensive review of the company's plan to
return to profitability, joint managing director Anne Richards
revealed.
The fund manager said the job losses included three employees in
the investment division, nine in administration and five staff in
marketing.
The job cuts are part of new management team's "strategic
review," which was announced in early December.
Last year, EFM's woes, which stemmed from falling equity markets
and a share price collapse, were aggravated when it lost the
mandate for the EUR1.1 billion Edinburgh Investment Trust to
Fidelity Investments.
It was thought that closure was the only option left for the
group by then.
However, a new management team, which followed the mass boardroom
resignation in November, led by Rod MacRae and Richards have been
attempting to rebuild the firm.
The appointment of Charles Nunneley, a former chairman of
Nationwide, as non-executive chairman, also is not seen to
guarantee the group's future, according to The Scotsman. It is
still likely that the group will report only a moderate pre-tax
profit for the year ended January 31.
Nunneley reportedly wants to transform the company into a
"boutique" operator, which might mean the sale of the firm's
private client arm and venture capitalist division.
Hawkpoint, the London-based group which was formed following
Royal Bank of Scotland's takeover of NatWest, is the fund
manager's new advisers.
EQUITABLE LIFE: Lunges Second Attempt to Fine Ernst & Young
-----------------------------------------------------------
Investors criticized Equitable Life's second attempt at its suing
former auditor, Ernst & Young, for GBP2.6 billion in compensation
for alleged negligence.
According to Times Online, Equitable Life as accused of "gambling
with policyholders' money."
Paul Braithwaite, of Equitable Members' Action Group said: "The
insistence on gambling by going to a higher court is a cause for
grave concern to the remaining policyholders and the annuitants."
Mr. Justice Langley last week gave the insurer leave for the
pursuit of a smaller claim for "hundreds of millions of pounds".
He also gave a leave to appeal his decision to strike out the
bulk of the claim against Ernst & Young.
Equitable Life previously charged that the auditor's failure to
include a provision of GBP1.6 billion to cover the cost of
guarantees had prevented the directors from selling the business
ahead of its near-collapse in 2000.
In considering that his judgment could be wrong, Judge Langley
gave Equitable a two-deadline to produce an amended claim on the
remaining part of the case, which relates to over-inflated
bonuses paid to policyholders in the 1990s.
Equitable is pursuing the case, with Equitable chairman Vanni
Treves believing they "have a strong and valid claim against
Ernst & Young." It is launching the action amid policyholders
fear that the move is draining the firm's resources.
Equitable Life is due to submit the case in the Court of Appeal
by early May.
If Equitable loses the appeal and the case is definitely closed,
it will be forced to pay the auditor's costs, which are believe
to have topped GBP250,000 already.
FRANCE TELECOM: To Axe Thousands of Jobs This Year - Sources
------------------------------------------------------------
Around 13,000 jobs will be axed out of France Telecom's 220,000
total workforce this year, union sources saY.
The information came out after chairman Thierry Breton told
French radio Europe 1 of the company's plans to cut 7,500 jobs in
France in 2003.
Mr. Breton, who expects to cut the company's debt by EUR30
billion in 2 years, also revealed France Telecom's plans for a
capital increase worth EUR15 billion as soon as possible.
"We'll implement a capital increase as soon as we can. We've
resolved out liquidity crisis and prospects remain good for the
next two years," he said.
He, however, declined to give further details of the plan.
The French government provided the telecom company a EUR9-billion
loan in December to keep the company solvent and help it cut debt
in the medium term to EUR40 billion.
CONTACT: FRANCE TELECOM
6, Place d'Alleray
75505 Paris Cedex 15, France
Phone: +33-1-44-44-22-22
Fax: +33-1-44-44-95-95
Homepage: http://www.francetelecom.fr
Contacts: Thierry Breton, Chairman
Michel Combes, Executive Committee, Finance
INFINEON TECHNOLOGIES: Decides to Reorganize Corporate Center
-------------------------------------------------------------
Infineon Technologies AG, the Munich-based technology and
semiconductor group, has decided to streamline operations of its
Corporate Center (CPC) and integrate its existing communications
division into CPC. With immediate effect, Matthias Poth (37)
assumes responsibility for CPC and its 250 employees worldwide
and is in charge for the reorganization and integration of the
new division. To date, CPC includes the following areas: Business
Development, Center of Organizational Excellence, Strategy,
Security, Mobility and Service, Processes and Culture,
Relationship Management as well as Intellectual Capital. The
communications divisions Communications, Branding & Marketing as
well as Investor Relations are now being integrated into the
Corporate Center.
Two new divisions are created by the restructuring of the
communications divisions: All global internal and external
communications activities, including executive communications,
will be integrated into the CPC Communications division now
headed by Christoph Sieder (32). CPC Communications is organized
in the segments Public Affairs, Media Relations and Internal
Communications. The segment CPC Branding & Marketing
Communications is headed by Birgit Fischer-Harrow concentrating
on customer-oriented tasks, including corporate sponsoring.
Matthias Poth will continue to be directly responsible for
Investor Relations for the time being.
"The strategic development of Infineon as a leading solution
provider with even greater customer orientation must be supported
by a service-oriented administrative architecture," says Matthias
Poth in explaining the reorganization of CPC. "The new Corporate
Center structure will create additional synergies and enable more
efficient cooperation to the benefit of all our target groups -
shareholders, media, and employees. It is our goal to act and
react even faster, more flexibly for lasting, long-term success."
About Infineon
Infineon Technologies AG, Munich, Germany, offers semiconductor
and system solutions for the automotive and industrial sectors,
for applications in the wired communications markets, secure
mobile solutions as well as memory products. With a global
presence, Infineon operates in the US from San Jose, CA, in the
Asia-Pacific region from Singapore and in Japan from Tokyo. In
fiscal year 2002 (ending September), the company achieved sales
of Euro 5.21 billion with about 30,400 employees worldwide.
Infineon is listed on the DAX index of the Frankfurt Stock
Exchange and on the New York Stock Exchange (ticker symbol: IFX).
Further information is available at http://www.infineon.com
CONTACT: INFINEON TECHNOLOGIES AG
P.O. Box 80 09 49
D-81609 Muenchen
Germany
Corporate Investor Relations
Phone: ++49 89 234-26655
Fax: -26155
E-mail: investor.relations@infineon.com
INVENSYS PLC: Announces Result of Business Performance Review
-------------------------------------------------------------
Invensys yesterday completed a business-by-business performance
review and as a result issues an update on current trading.
Production Management
In the Production Management Division, the strong performance
improvements delivered in the first half by the process system
businesses have continued in the second half, taking into account
increased investment in software development. We are encouraged
by this continued progress.
The exception to this is Baan. Whilst we indicated at our Interim
results in November that the business was suffering substantial
decline in demand, the full year outcome is likely to be
materially worse than our expectations at that time, although
significant management action has reduced cost and improved
customer service. We will be reviewing the carrying value of our
investment in Baan at the year-end.
Energy Management
The trends in the Energy Management Division outlined at the time
of the Interim results have remained broadly similar. However,
trading in Climate Controls has been particularly weak in both
Japan and Building Systems. Volumes in Powerware have continued
to remain depressed as a result of the lack of recovery in end
user markets, notably IT and Telecoms. Appliance Controls
continues to make good progress in line with the trends of the
first half and Metering Systems has remained in line with our
expectations.
Development
Overall, the performance is in line with expectations, with the
primary divisional contributor, Rail Systems, remaining strong.
Foreign Exchange
Since the half year, there has been further movement in foreign
exchange rates, especially in the US dollar. Should these rates
continue to the year-end, the negative translation impact would
be in the order of GBP10million, which we have factored into our
guidance.
Banking Covenants
We remain confident of our ability to meet our banking covenants
comfortably.
Summary
The final out-turn for the current year remains dependent upon a
number of important factors: in particular, the uncertainty in
the current economic environment, the pace at which the new
management team can deliver the performance improvement
initiatives and the significant weighting of March trading to our
results. Taking into account these factors, the Board believes
that it should take a cautious view of the second half core Group
operating profit*, which could be up to 25% below the first half.
Rick Haythornthwaite, Group CEO, comments:
'This is clearly disappointing. It masks the substantial efforts
and progress that we are making in the businesses to deliver a
sustainable recovery. Many areas are showing significant
performance improvement; overall progress, however, is being
damaged by certain specific problems identified at the Interim
results, which we are dealing with.'
* before exceptional items and goodwill amortization
About Invensys plc
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 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
Services, 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 specialised 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 60 countries, with its
headquarters in London.
For more information, visit http://www.invensys.com
*****
The Dutch-based loss-making Baan, which employs around 3,000
staff, has been a major headache for the group since it was
bought in May 2000 for GBP 474 million in cash. The firm has
undergone radical restructuring, while hundreds of jobs have been
axed in an effort to restore profitability. The latest round of
job cuts will see another 250 staff go.
CONTACT: INVENSYS PLC
Duncan Bonfield
Phone: +44 (0) 20 7821 3529
Brunswick
Ben Brewerton
Phone: +44 (0) 20 7404 5959
INVENSYS PLC: To Write Down Carrying Value of Dutch Unit
--------------------------------------------------------
Invensys will make a massive write-down in the carrying value of
its troubled IT software subsidiary Baan on its year-end accounts
to March 2003 after carrying a review.
Dutch-based Baan has a book value of GBP 650 million, including
goodwill, but the general decline in the IT services market lead
analysts to expect a sharp downward revision in its value.
Invensys group spokesman Duncan Bonfield told AFX News: "Baan
suffered a 17% decline in first half licence sales and this
downward trend has continued into the second half. There is no
sign of any bottoming out."
Invensys bought the loss-making firm in May 2000 for GBP474
million in cash. The firm, which employs around 3,000 staff, has
undergone radical restructuring involving hundreds of job cuts,
the latest numbering 250.
Further losses may be expected in the future, says Bonfield.
"It's very difficult to say. Baan's cost base has already been
pared down, but we will ensure that its current cost base matches
the size of the market," he said.
CONTACT: INVENSYS PLC
Invensys House, Carlisle Place
London SW1P 1BX, United Kingdom
Phone: +44-20-7834-3848
Fax: +44-20-7834-3879
Home Page: http://www.invensys.com
Contact:
Lord (Colin) Marshall, Chairman
Richard Haythornthwaite, CEO
Dan Leff, COO, Energy Management
INVENSYS PLC: S&P Places Ratings on CreditWatch Negative
--------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on U.K.-
based engineering group Invensys PLC on CreditWatch with negative
implications. The action, which follows the company's
announcement of a profit warning, included its 'BBB-' long-term
corporate credit rating on CrediWatch.
Standard & Poor's credit analyst and director Bob Ukiah said:
"The CreditWatch placement reflects the fact that Invensys'
results for the year to March 31, 2003, are now likely to be
below the levels previously expected for the ratings on the
company, and that visibility regarding future results remains
low."
Mr. Ukiah says prospects for Invensys for the year to March 31,
2004, are uncertain. As a consequence, Moody's needs to reassess
the rating to reflect factors not considered previously.
"Any lowering of the ratings would likely be limited to one
notch," he said.
Invensys warning that second-half financial 2002 core operating
profit could be as much as 25% less than that of the first half
is expected to put the company's credit measures for the full
year below expected levels.
MOXY TRUCKS: Shutters Operations Due to Rise of Krone's Value
-------------------------------------------------------------
Norway's Moxy Trucks AS shut down operations after a rise in the
value of the Norwegian krone versus the US dollar resulted in a
currency exchange loss of NOK50 million (US$7.1 million).
Producing dump trucks since 1972, Moxy Trucks, has offices at
Fraena and has ranked as the biggest firm in the Molde area.
However, strong Norwegian currency spelled out trouble for the
group.
Moxy's pre-tax loss for the year ending December 31 landed at
NOK23.7 million (USD3.375 million), and its operating loss at
NOK9.5 million (USD1.352 million).
Last year, Spilka Group of Aalesund took over 51% of the shares
in Moxy Trucks from the state and was preparing to take over the
remaining 49% for just NOK 1 each.
The state wasn't willing to pump in more capital. A total of 230
employees were thrown out of work by the company's latest move.
"We didn't have a chance," union leader Harry Nerland said.
CONTACT: MOXY TRUCKS AS
N-6440 Einesv†gen
NORWAY
Phone: +47 71 258550
Fax: +47 71 258550
Homepage: http://www.moxytrucks.com/
ROYAL DOULTON: Posts Operating Loss Before Exceptionals
-------------------------------------------------------
Summary
- Group turnover GBP138 million (2001: GBP166 million), with like
for like sales down 8% year on year;
- Gross margin (before exceptionals) 42.8% (2001: 43.8%)
- Operating costs (before exceptionals) down 13% to GBP73.8
million (2001: GBP85.1 million)
- Operating loss (before exceptionals) GBP14.7 million (2001:
GBP12.4 million loss)
- Net exceptional items of GBP9.0 million (excluding finance
charges), consisting of GBP13.2 million of exceptional charges,
partially offset by GBP4.2 million of exceptional credits;
- Stocks reduced by 21% to GBP34.3 million
- Net indebtedness at year end GBP11.0 million, representing
balance sheet gearing of 33% (2001: GBP24.3 million - 58%)
- Group headcount reduced by 23% to 3,600.
Group Chief Executive, Wayne Nutbeen, commented
'2002 has been a tough year for the business, with major
restructuring and closures, and a deteriorating market
background, but nevertheless results for the year were in line
with expectations at the time of the rights issue. Despite an
uncertain economic outlook, we look forward to a material
improvement in performance in 2003, as the benefit of measures
taken starts to flow, but it is too early to say whether the
group will return to profit during the course of this year'
Royal Doulton plc
Preliminary results for the year to 31 December 2002
At the beginning of 2002, the group set out the second stage of a
detailed plan designed to complete the group's recovery, along
with an underwritten rights issue which raised GBP18.7 million
(net of costs) to fund the necessary restructuring measures.
Despite testing trading conditions and continuing pressure on
sales and margins, the trading results for 2002 were in line with
expectations at the time of the rights issue. Net debt at the
year-end was lower than expected, primarily as a result of being
ahead of timetable on asset disposals and working capital
reductions.
During 2002 the transfer of the Royal Albert branded production
to the group's factory in Indonesia was successfully completed
and the purchase of most of the minority interest in the
Indonesian subsidiary successfully carried out, increasing Royal
Doulton's interest to 95%; the closure of factories at Baddeley
Green and Beswick were completed, reducing the number of group
factories to three; a start was made in reducing the number of
group retail outlets; costs were reduced at a faster rate than
previously; a substantial sum was realized from the disposal of
surplus assets in the U.K. and North America; and stocks, net
working capital and debt were all markedly reduced. The benefits
of all these measures are expected to contribute to an
improvement in performance in 2003.
Results
In the year to December 31, 2002, group sales totalled œ138m, a
reduction of 17% over last year, reflecting a planned withdrawal
from certain products and sales channels and a like for like
decline in sales of 8%. Gross margin was 42.8% for the year as a
whole, compared with 43.8% in 2001, reflecting increasingly
difficult market conditions as the year progressed and stock
clearance. Group operating costs (excluding exceptionals) were
reduced by 13% in 2002, following on from a 12% fall in 2001.
Consequent to the measures taken during 2002, costs are again
expected to fall significantly in 2003.
The group operating loss, before exceptional items, was GBP14.7
million. Exceptional charges totalled GBP13.2 million, of which
œ11.5m related to redundancies, GBP1.6 million to lease
terminations, and the remainder to other minor items. This was
partially offset by exceptional credits of GBP4.2 million, mainly
profits on disposal of surplus assets.
Net exceptional charges therefore amounted to GBP9.0 million,
resulting in a loss before interest of GBP23.7 million.
Progress on restructuring
At the end of 1998, Royal Doulton operated 11 factories with all
but one in the U.K., and had a total workforce of over 7,000,
with high fixed costs and stocks, uncompetitive pricing and a
wholly vertically integrated business. By the end of 2003 the
group expects; less than 30% of its products to be manufactured
in the U.K. with the balance being split between sourced product
and the group's lower cost factory in Indonesia; a much smaller
workforce; a higher proportion of variable cost; competitive
pricing and a much more responsive and flexible business
structure. Substantial progress was made towards these objectives
in 2002.
The transfer of Royal Albert production from the U.K. to
Indonesia was successfully completed in the last quarter of the
year, and consequently the Baddeley Green factory was closed by
the year's end. The decision to outsource certain smaller
sculptural ranges resulted in the closure of the Beswick factory
at the year's end. Average cost of production is now 20% lower
than a year ago. The Regent factory is also in the process of
closing. In the single remaining U.K. site, Nile Street,
approximately œ0.4m was invested in new manufacturing technology.
The brownfield section of the site at Baddeley Green has since
been sold for housing development for up to GBP6.5 million in
cash, generating a profit on disposal of approximately GBP2.5
million, which will be accounted for in 2003.
The warehouse in New Jersey, USA was closed, and operations
outsourced, achieving major reductions in costs. This, and the
Canadian warehouse were sold during 2002 for a total of GBP4.4
million in cash, generating a profit on disposal of GBP2.1
million.
A start was made on the planned reduction in the number of under-
performing retail outlets. During the year 42 units were shut,
reducing the total to 356 worldwide.
The total workforce at the beginning of the year was
approximately 4,700. During the year the workforce was reduced by
23% to approximately 3,600.
Sales and Marketing
The climate for sales deteriorated during the year, with falls in
most markets, and like for like sales, having been 6% down in the
first half, were 8% down for the year as a whole.
Despite the more difficult climate, sales of the Royal Albert
brand grew by value and by volume. The benefits of lower pricing,
and the introduction of giftware contributed to this. The Royal
Doulton and Minton brands both experienced a fall in sales. As
planned, the greatest decline was in non-group brands.
A new range of contemporary glassware was launched, as was the
Provence range of casual tableware to follow the substantial
success of the Carmina range, all at competitive price points.
The prestige limited editions and annual collectable figures did
well. Royal Doulton classic bone tableware had a poor year, but
the pricing of group products in this category is expected to
become more competitive in 2003.
Financial position
The group commenced the year with net assets of œ42.9m and net
debt of GBP24.3 million, and balance sheet gearing of 58%. Rights
issue proceeds amounted to GBP18.7 million (after expenses) and
new three year bank facilities were successfully completed
consequent to the raising of fresh capital. The following table
summarizes the cash inflows and outflows and the change in net
debt during 2002.
GBPM GBPM
Opening net debt (24.3)
Rights issue 18.7
Cash outflow from trading (9.9)
Working capital reduction 6.0 (3.9)
Cash outflow from restructuring costs (6.2)
Disposal of surplus assets 9.5 3.3
Purchase of minority interest (inc. debt) (2.1)
Capital expenditure (2.5) (4.6)
Interest, currency and other (0.2)
Closing net debt (11.0)
Pensions
Since April 1999, all pensionable service in the group in the UK,
and the substantial majority overseas, has been pensionable on a
money purchase basis only. The group has excellent control over
the growth in liabilities in relation to service prior to that
date, which was on a defined benefit basis. At December 31, 2002,
on an MFR basis, the assets of the main UK plan covered 101% of
liabilities.
As reported previously, assessed on an FRS17 basis, the pension
schemes show a deficit. Had this been reflected in the group
balance sheet at December 31, 2002, there would have been a net
reduction in net assets of GBP14.7 million. Equities account for
under one third of pension scheme assets. The group continues to
make additional contributions to the schemes with a view to
reducing the deficit over time.
Dividends
The Directors do not intend to pay or recommend any interim or
final dividends until the group returns to a position where net
free cashflow is being generated on a consistent basis and the
group's financial position allows such payments to be combined
with a continuing reduction in net indebtedness.
Outlook
Sales in the first few weeks of the current financial year have
continued the pattern established in the second half of last
year. The sales climate remains challenging and overcapacity in
the industry continues to exert pressure on margins. Conversely,
there are modestly encouraging signs in those product categories
where lower costs have enabled the group to achieve more
competitive price points whilst maintaining margins.
The weakening economic background and the uncertain international
outlook are likely to result in lower demand from the tabletop
and giftware markets in the immediate future. Notwithstanding
this, we expect a material improvement in performance during 2003
as the benefit of measures already taken starts to show through
in results and cost reductions continue, although it is too early
in the year to predict whether the group will return to profit
during the course of this year.
Hamish Grossart
Chairman
To see Royal Doulton's Financial Statement:
http://bankrupt.com/misc/RoyalDoulton.htm
CONTACT: ROYAL DOULTON
Sir Henry Doulton House
Forge Lane, Etruria
Stoke-on-Trent
ST1 5NN
Phone: (01782) 404040
Telex: 36502
Fax: (01782) 404000
E-mail : ENQUIRIES@royal-doulton.com
Contact:
Wayne Nutbeen, Group Chief Executive Officer
Phone: 01782 404040
Geoff Martin, Group Finance Director
Phone: 01782 404040
Lesley Allan
Hudson Sandler
Phone: 0207 796 4133
STANDARD LIFE: Endowment Policies to Be Predominantly Amber, Red
----------------------------------------------------------------
Standard Life projects that cut in surrender value will change
its warnings about endowment policies from predominantly green
and amber to predominantly amber or red.
Amber letters mean the policy is unlikely to pay off the mortgage
while a red letter means it certainly will not without extra
savings.
The admission came just as a demutualization of the firm is being
launched by policyholder David Stonebanks, who posted a campaign
in the Internet rallying for support from 1000 other
policyholders.
Sandy Crombie, deputy chief executive responsible for Standard
Life Investments, is worried there had yet been no countermeasure
to the threat.
Certain media reports criticized Standard Life's mutual status,
accusing the management of "destroying assets" through over-
exposure to equities.
But Standard Life, in an interview with The Herald, insisted it
could withstand a fall in the FTSE-100 to a level of 2100, or 30%
below the regulator's estimated crunch level, without being a
forced seller of equities.
Mr. Crombie said, "We think the big bet would be to sell 15% or
20% of the fund. We think that it is dangerous for the long-term
to get off the roller-coaster when it is going full pelt. We
think it is better to stay on it."
The criticisms came just as a report claiming that Standard
Life's three senior executives were set to receive bonus and
incentive payments totaling GBP1 million a year came out.
Yet policyholders will face another shock when Standard Life's
annual report show that executives were paid bonuses at a time
when policyholders suffered bonus cuts and lower fund values.
Mr. Crombie confirmed that the firm is likely to reflect that
executives were paid bonuses for 2002.
The pending bonuses would be around half 2001 levels, reflecting
the fall in the with-profits fund.
Defending the incentive, Mr. Crombie said: "We would have to be
at it for 10 years to get to these levels. Our packages are below
the average for the financial services industry."
The deputy chief executive admitted that the criticisms are
potentially damaging, particularly while the demutualization of
the firm is being launched.
He said, "I am worried for the company...Frankly we need a
distraction like that like a hole in the head."
He maintained, though, "there isn't any insurance company out
there in any better position."
CONTACT: THE STANDARD LIFE ASSURANCE COMPANY
30 Lothian Rd.
Edinburgh EH1 2DH, United Kingdom
Phone: +44-131-225-2552
Fax: +44-131-220-1534
Homepage: http://www.standardlife.com
Contacts: John Trott, Chairman
Iain Lumsden, Group Chief Executive
John Hylands, Group Finance Director
TWR GROUP: Placed Under Administrative Receivership
---------------------------------------------------
Car manufacturer and racing-engines specialist TWR Group has been
placed in administrative receivership, and is currently seeking a
buyer for its U.K. businesses.
The troubled group appointed PricewaterhouseCoopers as receivers
after it suffered a loss of more than EUR20 million on its
investment in the Arrows Formula One team, which was also placed
in administration in December last year. The loss was compounded
with a general downturn in the industry.
Although the appointment of PwC raised fears for the company's
estimated 500 U.K.-based employees, PwC partner Rob Hunt said
TWR was "confident that with the support of customers and employees,
the business can continue to trade whilst a purchaser is found."
TWR Automotive Engineering, TWR International Holdings, TWR
Automotive Contracts and Crailglade have also been placed in
receivership.
The Oxfordshire-based company has debts of more than EUR35
million.
CONTACT: TWR GROUP
Leafield Technical Centre
Leafield, Witney, Oxon
OX29 9PF
Phone: (01993) 871000
Fax: (01993) 871100
************
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 Laedevee
Gonzales, Editors.
Copyright 2003. 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
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The TCR Europe subscription rate is US$575 per half-year,
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or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
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