/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030313.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, March 13, 2003, Vol. 4, No. 51 Headlines * C Z E C H R E P U B L I C * SROUBARNA LIBCICE: Prague Regional Court Declares Bankruptcy * F R A N C E * AIR LIB: Potential Bidders Visit Transport Ministry Office * G E R M A N Y * BAYER AG: Wolf Popper Files Fraud Class Action Complaint BREMER LANDESBANK: Moody's Downgrades Financial Strength Rating GERLING-KONZERN: Projects EUR300 Million Loss for 2002 GERLING RE: Involved in Rumor Involving Nonpayment of Claims KIRCHMEDIA GMBH: Saban Takes the Lead in Bidding Race for Assets * I R E L A N D * RHODE POWER: To Be Shuttered by the End of Next Month * I T A L Y * ALITALIA SPA: To Adjust Fares in Accordance With Oil Price Hike FIAT SPA: Completes Sale of Consumer Finance Arm to Creditors TELECOM ITALIA: Chairman to Cut Short Chain of Companies * N E T H E R L A N D S * KONINKLIJKE AHOLD: Schiffrin & Barroway Files Class Action KONINKLIJKE AHOLD: Rabin, Murray & Frank Commences Class Action * N O R W A Y * SPONSOR SERVICE: Bidder Withdraws Bid on Lack of Common Grounds * R U S S I A * MOSNARBANK: Fitch Places Long-term Rating on Watch Negative SURGUTNEFTEGAZBANK LT: Standard & Poor's Raised Rating to 'CCC+' * S W I T Z E R L A N D * SWISS LIFE: Agrees to Extend Amendment to Credit Facility SWISS LIFE: Announced Loss Still Holds Down Shares * U N I T E D K I N G D O M * ABBEY NATIONAL: Plans To Offer GBP2.35 Billion of Bonds AMEY PLC: Plans to Withdraw From Ministry of Defense PFI Contract AMP LIMITED: Presents Board Candidates for 2003 General Meeting BRITISH AIRWAYS: Faces Ejection From FTSE 100 Index This Week BRITISH ENERGY: Future Still Unclear Despite U.K.'s Rescue Plan CARLTON COMMUNICATIONS: Hewitt Refers Carlton/Granada Merger CARLTON COMMUNICATIONS: Submits Merger Reference to Regulator CORUS GROUP: Board Rejects Sale of Aluminum Unit to Pechiney CORUS GROUP: Moody's Places Senior Debt Ratings on Review EMI GROUP: Moody's Downgrades Ratings of Group and Subsidiary EMI GROUP: Issues Response to Moody's Statement of Downgrade SCOTIA HOLDINGS: Doctor Accused of Fraud in Clinical Trials SLOMAN ENGINEERING: Receivers Offer Business for Sale THISTLE HOTELS: Plan to Dispose Hotels Considered Sensible THOMAS POTTS: Issues Chairman's Letter of General Meeting Outcome THOMAS POTTS: Announces Appointment of New Group Finance Director UNIQLO: Owner to Downsize United Kingdom Store Chain =========================== C Z E C H R E P U B L I C ============================ SROUBARNA LIBCICE: Prague Regional Court Declares Bankruptcy ------------------------------------------------------------ The Regional Court in Prague on Friday declared Traditional European producer of fasteners Sroubarna Librice bankrupt at the request of six minor creditors. Bankruptcy assets administrator Jirina Luzova said the court "speedily declared bankruptcy," since those at the screw producer have embarked on siphoning off assets and liquidating material and machines. "My task will be to prevent the company from being plundered," Luzova told the Czech Happenings, adding that the plant should remain in operation and then be sold. The procedure could take another eight months. There are no possible suitors for the company, which belonged to major screw producers and employed 590 people as of the middle of last year. Debts of the company amount to some Kc700 million, half of which are administered by the Czech Consolidation Agency. Last year's floods caused CZK10 million worth of damage to the company's equipment and CZK20 million worth of losses caused by fines and lost profits. CONTACT: SROUBARNA LIBCICE SPOL. S R.O. Vltavska 40 252 66 Libcice nad Vltavou Phone: 00420-2-33004- Fax: 0042-2-33930738, 0042-2-33930744 E-mail: zoc@sli.cz Homepage: http://www.sli.cz/ Contact: Petr Cizek, Manager =========== F R A N C E =========== AIR LIB: Potential Bidders Visit Transport Ministry Office ---------------------------------------------------------- Executives of maritime transport company CMA CGM, Virgin Express and Eurocopter NV visited the transport ministry Tuesday regarding an offer for Air Lib, France's No. 2 airline. A ministry official said the head of CMA CGM, Jacques Saade, Richard Branson of the Virgin group and Jean-Francoies Bigay of Eurocopted NV, who was reportedly invited by Saade to go along in his capacity as air consultant to CMA CGM, were scheduled to meet Jean-Claude Jouffroy, director of the office of Transport Minister Dominique Bussereau. The parties are understood to be interested in making a proposal for some of the assets of the Air Lib group, including an offer to hire some Air Lib employees. Air Lib, which flew to the French Antilles, Algeria, Cuba and a number of European and French destinations, was forced to ground its fleet earlier this month after loosing its operating license. Founded in 2001 out of the ashes of Swissair's insolvent French operations, Air Lib struggled to stay afloat after the government made clear it would no longer subsidize the debt-laden company. CONTACT: AIR LIB 42 Rue F. Forest Imm. Le Sommet 97122 Jarry-Baie Mahault Phone: +590-(0)5.90.32.56.00 Fax: +590-(0)5.90.26.64.02 Home Page: http://www.air-liberte.fr/ ============= G E R M A N Y ============= BAYER AG: Wolf Popper Files Fraud Class Action Complaint -------------------------------------------------------- Wolf Popper LLP has filed a securities fraud class action complaint against Bayer (AG) Aktiengesellschaft, and certain present and former members of its Board of Management, on behalf of purchasers of Bayer AG American Depositary Shares (ADRs) from May 26, 1999 through February 21, 2003 (the Class Period). (Prior to January 23, 2002, Bayer AG ADRs traded on the NASDAQ under the symbol BAYZY.) A copy of the complaint is available from the U.S. District Court for the Southern District of New York (Docket No. 03 CV. 1546 (SWK)). The complaint alleges, among other things, that throughout the Class Period defendants misrepresented Bayer AG's success in marketing it's Baycol cholesterol lowering drug. Defendants' statements were materially false and misleading because Bayer AG's own scientists were stating internally that Baycol, when administered with other popular medications or at high dosages, caused unacceptable risk of serious side effects. In fact, throughout the Class Period Bayer AG was informed that patients taking Baycol were experiencing serious and life threatening side effects. Baycol was belatedly withdrawn from the market in August 2001 after the FDA raised serious concerns about the safety of Baycol in light of reports of Baycol patients dying. The true facts concerning defendants' knowledge of the dangers of Baycol and the Company's potential liability to Baycol patients were not completely disclosed until February 22, 2003, in connection with court filings in various personal injury actions commenced against Bayer AG by persons who had been prescribed Baycol and had suffered severe side effects. These court documents demonstrated defendants' early knowledge of the risk of serious or life threatening side effects to patients taking Baycol, including the knowledge that patients taking Baycol were found to have 5 to 10 times the chance of developing a life threatening illness -- rhabdomyolysis -- as patients taking other similar medicines. The price per share of Bayer AG ADRs fell approximately 17% when Baycol was withdrawn from the market in August 2001. Following the February 22, 2003 disclosure of the true state of defendants' knowledge of the dangers of Baycol, Bayer AG ADRs declined an additional 27%, from $17.15 per share to $12.58 days after the revelation -- more than 68% below the trading price at the beginning of the Class Period ($39.75). Members of the proposed class who desire to be appointed lead plaintiff in this action must file a motion with the Court no later than May 12, 2003. Information regarding investors' rights in the class action, including the right to be designated a lead plaintiff, should be addressed to: Wolf Popper LLP, Michael A. Schwartz, Esq. 845 Third Avenue, New York, NY 10022-6689 Tel.: 212.451.9668, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704, Email: mschwartz@wolfpopper.com website: http://www.wolfpopper.com CONTACT: Wolf Popper LLP James A. Harrod, Esq. (212) 451-9642, (877) 370-7703 (toll free) BREMER LANDESBANK: Moody's Downgrades Financial Strength Rating --------------------------------------------------------------- Moody's downgraded from C+ to C Landesbank Kreditanstalt Oldenburg -- Girozentrale's Financial Strength Rating in the light of continued difficulty in the operating environment of German banks. The action was also taken in the context of the bank's regionally limited franchise. Bremer's debt and deposit ratings remain unchanged at Aa1/P-1. The rating agency said that the persistent difficult conditions in the sector further pressure the Bremen-based bank's comparatively low profitability. It warns of strategic challenges in the coming years due to the expected fall off of its current support mechanism after 2005. The rating has a stable outlook that incorporates the recent measures the bank has taken to strengthen its franchise and profitability. Bremer Landesbank had assets of EUR33.5 billion at year-end 2002. CONTACT: MOODY'S INVESTORS SERVICE LTD. London Samuel S. Theodore Managing Director Financial Institutions Group Phone: 44 20 7772 5454 London Johannes Wassenberg, Vice President - Senior Analyst Financial Institutions Group Moody's Investors Service Ltd. Phone: 44 20 7772 5454 GERLING-KONZERN: Projects EUR300 Million Loss for 2002 ------------------------------------------------------ Cash-strapped German insurer Gerling-Konzern Allgemeine Versicherungs AG revealed that it expects to post a loss of EUR300 million in the financial year 2002. According to Dow Jones International, the projected loss stems mainly from the company's weak stock market performance. A write down of more than EUR150 million was generated from this area. Gerling also noted a more than EUR110 million write down of claims arising from its "passive" reinsurance business. Insurance-claims ratio fell to below 80% last year from 95.8% the year before, the company said. Gerling previously assured markets that it is disbursing outstanding claims to customers, following a research note published by Williams Capital of the U.S. saying Gerling might be unable to meet its claims. Moody's earlier downgraded its rating for Gerling to Baa1 from A2 after Gerling Group's announcement that the German regulator BAFin has blocked the proposed sale of Gerling Globale Re to Lago Achte group. Gerling Globale Rueck, which revealed EUR583 million in losses in 2001 as a result of the September 11 terrorist attacks in the U.S., is currently being sold by its parent company. CONTACT: GERLING VERSICHERUNGS-BETEILIGUNGS-AG Gereonshof 50670 Cologne, Germany Phone: +49-221-144-1 Fax: +49-221-144-3319 Homepage: http://www.gerling.com Contacts: Heinrich Focke, Chief Executive Officer Immo Querner, Chief Financial Officer GERLING RE: Involved in Rumor Involving Nonpayment of Claims ------------------------------------------------------------ Analysts have narrowed their search for a major reinsurer that the chairman of Berkshire Hathaway has said failed to pay a billion dollar claim. According to the Wall Street Journal, analysts speculated that Warren Buffet might have referred to Gerling Re when he said in Berkshire's annual shareholder letter that "one of the world's largest reinsurers -- a company regularly recommended to primary insurers by leading brokers -- has all but ceased paying claims, including both valid and due." According to him, "This company owes many billions of dollars to hundreds of primary insurers who now face massive write-offs." An emerging issue in the property-casualty insurance industry right now is on whether companies can collect on policies issued by reinsurers following the Sept. 11, 2001 terrorist attacks and weak financial markets. While a number of major reinsurers, including Munich Re and Swiss Reinsurance Co., have also been hit by big losses in the past two years, most analysts and investors conclude that the unnamed company was likely Germany's Gerling Re. According to the report, Chris Winans, a property-casualty insurance analyst at Williams Capital Group wrote: "We recognize that Mr. Buffett isn't referring to Gerling by name...However, a simple process of elimination points to no other likely reinsurer, in our view." A spokesman for Gerling Re, a firm which began winding down its reinsurance operations last year, assured that the company was paying all outstanding claims Investment bank Fox-Pitt, Kelton issued a research report by Michael Hallett on Monday enumerating which insurance companies were owed reinsurance payments by Gerling as of the end of 2001. The chairman of one company mentioned in the report, Willian R. Berkley of property-casualty insurer W.R. Berkley Corp, said Fox- Pitt's report overstated his company's exposure. He also noted that "Gerling has been paying." KIRCHMEDIA GMBH: Saban Takes the Lead in Bidding Race for Assets ---------------------------------------------------------------- U.S. media billionaire Haim Saban obtained a lead in the bidding for insolvent German television group KirchMedia, sources close to the matter said. The majority of a committee of KirchMedia's creditors, who are currently evaluating offers for the company, reportedly prefer Saban's bid to German publisher Heinrich Bauer Verlag's. With similar offers of about EUR1.2 billion for the library assets, Haim Saban gained an edge in its offer for the ProSieben stake. "Saban is bidding around EUR500 million for that now," said one source. Another source added: "Saban has been more flexible in his offer, and the momentum is currently behind his bid." Bauer will have to improve its offer in last-minute negotiations if it is to regain the lead in bidding for the assets, which include Germany's largest TV broadcaster and a vast library of film rights, sources say. One source close to the deal said, "Bauer has to move significantly to get back into the race," which is expected raise more than EUR2 billion (USD2.2 billion). Declining to comment on the state of the talks, KirchMedia said a decision will be announced "by the end of the week." The transaction involves the company's 52.5% stake in broadcaster ProSiebenSat1 and a film library business that German publisher Bauer Verlag and HVB Group AG is interested in acquiring. Managers of the German media company provisionally agreed to sell the asset to the consortium in December, but glitches in unloading the film rights beckoned U.S. media billionaire Haim Saban and French broadcaster Television Francaise 1 SA into bidding. KirchMedia was put in administration after the collapse of its parent Kirch Group under a mountain of debt load accumulated during a failed venture into pay television. ============= I R E L A N D ============= RHODE POWER: To Be Shuttered by the End of Next Month ----------------------------------------------------- The Electricity Supply Board in Ireland announced plans to close Rhode power station on April 7, almost two years after production in the plant was suspended due to an explosion that seriously injured one worker in May 2001. The plant's more than 100 employees in County Offaly have been offered a voluntary redundancy package worth up to GBP170,000 (EUR250,000) each. They have until Friday to decide, after which the offer would be withdrawn. But workers have rejected the terms of redundancy on three separate occasions, according to UTV Internet. According to Business Plus One, ESB said such refusal would also forfeit the worker's tenth month retainer payment with holiday pay and a EUR5,000 special award. Despite the opposition, the workers are understood to be reballoting by postal vote. The Business Plus report also said that employees who chose to remain in the company will be retained and redeployed to other ESB locations. About 100 workers have turned up for work every day since the closure. This had cost the company EUR60,000 a week. ========= I T A L Y ========= ALITALIA SPA: To Adjust Fares in Accordance With Oil Price Hike --------------------------------------------------------------- Alitalia SpA plans to increase fare for domestic flight by EUR6 (US$6.60), international flight by EUR8, and intercontinental flight by EUR12 to compensate for cost increases resulting from the oil prices hike. Alitalia said fuel prices have risen by 30% in the past six months. Tensions over the possible break out of war between U.S. and Iraq, which produces about 3% of the world's oil, shoots up oil prices to their highest levels since 1990. Alitalia said the surcharges "are to be considered temporary and strictly linked to contingent international events." The carrier suffered financial problems and has reported a net loss of $200 million in 2000. It has been seeking a new partner since KLM Royal Dutch Airlines pulled out of an alliance last year. CONTACT: ALITALIA - LINEE AEREE ITALIANE S.P.A. Viale A. Marchetti 111 00148 Rome, Italy Phone: +39-06-6562-2151 Fax: +39-06-6562-4733 Toll Free: 800-223-5730 Homepage: http://www.alitalia.it Contacts: Fausto Cereti, Chairman Francesco Mengozzi, Managing Director Giovanni Lionetti, Director Finance FIAT SPA: Completes Sale of Consumer Finance Arm to Creditors ------------------------------------------------------------- Troubled Fiat SpA sold its 51% stake in consumer finance arm Fidis to its four chief creditors, Banca Intesa SpA, Sanpaolo IMI SpA, Capitalia SpA, and UniCredito Italiano SpA, for EUR370 million. The transaction enabled the industrial group to deconsolidate the consumer finance arm from its accounts, and cut gross debt by about EUR6 billion. The deal was agreed last May when Fiat obtained a loan of EUR3 billion from the banks. Under the deal, Fiat said it had the right to buy back the stake by January 31, 2006. The sell-off was earlier delayed on concerns regarding the legality of the transaction in relation to Fiat's put option to sell its 80% stake in Fiat Auto to General Motors Corp., which already has 20% ownership of the unit. The banks are worried that it might violate the terms of the option, and accordingly sought legal advice. Meanwhile, Fiat assured that the sale of the stake in Fidis would not affect the company's current relationship with Fiat Auto's dealer network. Fidis, with a debt-servicing portfolio of around EUR10 billion, helped finance the sale of 30% of all cars produced by Fiat last year. The transfer of ownership to the banks, which have better credit ratings than Fiat, is expected to give Fidis better access to financial markets. 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 Contact: Giovanni Maggiora, Vice President - Investor Relations Phone: +39-011-686-3290 Fax: +39-011-686-3796 E-mail: Investor.relations@geva.flatgroup.com TELECOM ITALIA: Chairman to Cut Short Chain of Companies -------------------------------------------------------- Telecom Italia chairman Marco Tronchetti Provera is expected to announce the elimination of the six holding companies in the phone group by Wednesday, according to the Financial Times. The shortening of the chain, intended to be done through mergers, is aimed at improving the cash flow and reducing the company's net debt of EUR38.5 billion (US$42.4 billion). The chairman's move is expected to put him in hot waters with investors, according to analysts. It was exactly the second move by Roberto Colaninno, Mr. Provera's predecessor, to cut the chain that set his removal. Shareholders are believed strongly not amenable to any merger that doubles its debt without strong compensation. The plan is expected to involve the merger of Telecom Italia and Olivetti, a shell company with EUR15.2 billion in debt. Mr Tronchetti Provera will have to balance the demands of investors in at least five publicly traded companies in the chain that includes Telecom Italia, Olivetti, Pirelli, Pirelli & C, and Camfin, according to the report. ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: Schiffrin & Barroway Files Class Action ---------------------------------------------------------- The following statement was issued Tuesday by the law firm of Schiffrin & Barroway, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of Koninklijke (translated as Royal) Ahold, N.V. between March 6, 2001 and February 21, 2003, inclusive (the Class Period). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299- 7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com The complaint charges Koninklijke Ahold, N.V. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that defendants issued numerous statements and filed annual reports with the SEC which described the Company's increasing income and financial performance. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the Company had materially overstated its income by improperly including far higher promotional allowances -- provided by suppliers to promote their products -- than the company actually received in payment; (ii) that the Company's Disco unit had engaged in certain transactions which were possibly illegal and were improperly accounted for; (iii) that the Company was experiencing a slowdown in consumer demand and that, contrary to defendants' representations, the Company's financial performance was not "very solid" and its fundamental business was not really "quite robust"; (iv) that, contrary to defendants' representations, the Company was having difficulty integrating its numerous acquisitions; (v) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (vi) as a result of the foregoing, the Company's financial statements issued during the Class Period were materially false and misleading. The Class Period ends on Friday, February 21, 2003. On Monday morning, February 24, 2003, before the opening of regular trading, Ahold shocked the market by announcing that it: (i) would be reducing its earnings expectations for 2002; (ii) would be restating its financial results for 2000, 2001 and its interim results for 2002, primarily due to overstatements of income, which may exceed $500 million, related to promotional allowance programs at U.S. Foodservice in the past two years; (iii) will deconsolidate its interests in three subsidiaries -- ICA Ahold, Jeronimo Martins Retail and Disco Ahold International Holdings; and (iv) has been investigating the legality of certain transactions and their accounting treatment at the Company's Argentine subsidiary Disco; and (v) as a result of all of this, the Company's CEO and CFO, defendants van der Hoeven and Meurs would be resigning. Later in the day, when the market opened for trading, shares of Ahold's American Depositary Receipts fell $6.53 per share, or more than 61%, to close at approximately $4.16 per share, a far cry below their Class Period high of $32.65 per share, on extremely heavy trading volume of more than 16.2 million shares traded. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which prosecutes class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi. If you are a member of the class described above, you may, not later than April 28, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. CONTACT: SCHIFFRIN & BARROWAY, LLP Darren J. Check, Esq. Phone: (888) 299-7706 (toll free) or Phone: (610) 667-7706 E-mail: info@sbclasslaw.com KONINKLIJKE AHOLD: Rabin, Murray & Frank Commences Class Action --------------------------------------------------------------- A class action complaint has been filed in the United States District Court for the Southern District of New York, case number 03 Civ. 1640, on behalf of all persons or entities who purchased Koninklijke Ahold, N.V. securities during the period from March 6, 2001 through February 21, 2003, both dates inclusive (the Class Period). The Complaint names Ahold, Hendrikus de Ruiter, Cees H. van der Hoeven, Adriaan Michiel Meurs, James L. Miller, William John Grize, and Deloitte Touche Tohmatsu as defendants. To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Sharon Lee at Rabin, Murray & Frank LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com The Complaint alleges that defendants violated the Securities Exchange Act of 1934 by making a series of materially false and misleading statements concerning the Company's financial results during the Class Period. In particular, it is alleged that during the Class Period the Company had overstated the earnings of its U.S. Foodservice unit by over $500 million and now has to restate its financial statements for 2001 and 2002. The Complaint alleges that as a result of these false and misleading statements the price of Ahold securities were artificially inflated throughout the Class Period causing plaintiff and the other members of the Class to suffer damages. Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. If you purchased Ahold securities during the Class Period described above, you may, no later than April 28, 2003, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at http://www.rabinlaw.com Contact plaintiff's counsel Eric J. Belfi or Sharon Lee of Rabin, Murray & Frank LLP to further discuss this action, this announcement, or your rights or interests. CONTACT: RABIN, MURRAY & FRANK LLP Eric J. Belfi Sharon Lee Phone: (800) 497-8076 (212) 682-1818 Fax: (212) 682-1892 E-mail: email@rabinlaw.com =========== N O R W A Y =========== SPONSOR SERVICE: Bidder Withdraws Bid on Lack of Common Grounds --------------------------------------------------------------- U.S.-based media company Clear Channel has withdrawn its bid to take over Norwegian Sponsor Service, which collapsed last month as a result of poor investments and years of income reporting for contracts that never existed. Clear Channel's Norwegian chief, Toivo Moeller Pettersen, said in a statement that its bid was met by a counter-offer from Sponsor Service's administrators that he didn't think was serious. Mr. Pettersen said the two sides were simply too far apart that there was no reason to negotiate further, although Clear Channel's bid was "good," conceding that it reflected a "risk premium" because of uncertainty surrounding the bankruptcy estate. It is known that Sponsor Service's founder Terge Bogen is the target of an investigation by Norway's white-collar crime unit known as Oekokrim. Initial audits already have uncovered as much as NOK125 million in worthless, fictional contracts on Sponsor Service's books, according to newspaper Dagens Naeringsliv, which first reported potential trouble at Sponsor Service late last year. Mr. Bogen is appealing the bankruptcy and trying to block any sale. However, administrators contend they have the legal right to sell Sponsor Service assets despite Bogen's legal action. They hope to sell off remains of the firm quickly and have cited that another bid has been received from investor Svein Erik Bakke. CONTACT: SPONSOR SERVICE AB Birger Jarlsgatan 26 S-114 34 Stockholm Sweden Phone: +46 8 407 53 00 Fax: +46 8 407 53 50 E-mail: info@sponsorservice.se Homepage: http://www.sponsorservice.se =========== R U S S I A =========== MOSNARBANK: Fitch Places Long-term Rating on Watch Negative ----------------------------------------------------------- Fitch Ratings, the international rating agency, has placed the 'BB-' ('BB minus') Long-term rating of Russia's Mosnarbank on Rating Watch Negative, removing its Positive Outlook. Mosnarbank's other ratings remain unchanged as follows: Short- term 'B', Individual 'D' and Support '4T'. The rating action follows the recent announcement that the shareholders of Mosnarbank, Moscow Narodny Bank, the U.K. subsidiary of the Central Bank of Russia, and Russia's Evrofinance have taken a decision in principle to combine the businesses of the two banks. Mosnarbank's Long-term rating has, thus far, been constrained by the Russian sovereign ceiling, driven by the bank's 100% ownership by, and support from, Moscow Narodny Bank (Long-term rating of 'BB+' from Fitch). The rating action reflects Fitch's expectation that the proposed change in ownership would result in a lower level of support being available to it than is currently the case. Fitch comments that, were Russia's 'BB-' ('BB minus') Long-term rating, which is on Positive Outlook, to be upgraded before the transaction takes place, the continuing appropriateness of the Negative Rating Watch would be reviewed, as the level of support from its new combined shareholders is assessed. The amalgamation of Mosnarbank and Evrofinance is, subject to the relevant legal and regulatory approvals, scheduled to be completed later in 2003. A merger of the two banks would result in Moscow Narodny Bank retaining a 19.9% stake in the combined business. In the absence of any interim changes in the ownership structure of Evrofinance (see below), the combined group would be majority owned by Russian state bodies. Mosnarbank was founded in 1995, but only became operational in 1997. The bank ranks among the 60 largest Russian banks by assets, and is involved in commercial lending and deposit taking, inter-bank operations and securities and FX trading. Its assets totalled c.RUB7 billion at end-September 2002. Evrofinance's most important shareholders include BCEN-Eurobank in Paris (9.95%), Vnesheconombank (19.98%) and Vneshtorgbank (19.07%), all of which are owned, or majority-owned, either by the Central Bank of Russia or the Russian government. It ranks among the 30 largest banks in Russia by assets (c.RUB18bn at end- September 2002). CONTACT: FITCH RATINGS James Longsdon Natasha Page London Phone: +44 (0)20 7417 4222 SURGUTNEFTEGAZBANK LT: Standard & Poor's Raised Rating to 'CCC+' ------------------------------------------------------------------------- Standard & Poor's Ratings Services said it raised its long-term counterparty credit rating on Russia-based bank Surgutneftegazbank (SNGB) to 'CCC+' from 'CCC'. At the same time, Standard & Poor's affirmed its 'C' short-term counterparty credit rating on SNGB. The outlook is stable. "The upgrade is based on the continuing close relationship between the bank and its parent, Surgutneftegaz (SNG; not rated), one of the five largest vertically integrated oil companies in Russia, which continues to direct significant cash settlement business volumes and deposit flows through the bank," said Standard & Poor's credit analyst Irina Penkina. The ratings also reflect SNGB's good liquidity and satisfactory asset quality compared with its Russian peers. Constraining factors include weak profitability, a relatively high concentration in lending exposures and liabilities, and low capitalization. "In addition, although the macroeconomic prospects in Russia have improved lately, the banking sector is still subject to high operating risks," said Ms. Penkina. The direction of the ratings on SNGB will depend on the continuance of the bank's close relationship with SNG, particularly in respect of providing capital to support SNGB's independent commercial banking activities. Although SNGB considers these activities to be a means to improving profitability, they will raise the risk profile of SNGB, and in particular subject the bank to higher asset quality risks in the future. ===================== S W I T Z E R L A N D ===================== SWISS LIFE: Agrees to Extend Amendment to Credit Facility --------------------------------------------------------- Private Equity Holding AG and Swiss Life agreed to extend the amendment to the credit facility in the amount of CHF 325 million, which was originally due to expire on March 10, 2003. The liquidity of Private Equity Holding AG is accordingly secured. Furthermore, the extension provides the company with the necessary time to find a solution for its financing needs, which is in the interest of the company and its shareholders. Besides comprehensive financing solutions, alternative options pursued include a refinancing of the credit facility of Swiss Life, a securitization of investments or the sale of portfolio participations with the objective to achieve a better alignment of the maturity of the financing solution with the long-term nature of private equity investments. The extension of the amendment to the credit facility allows Private Equity Holding AG to evaluate the existing options with the appropriate diligence. By means of the extension of the amendment to the credit facility the liquidity of Private Equity Holding AG is secured. Private Equity Holding AG (SWX: PEHN), managed by Swiss Life Private Equity Partners, offers investors the opportunity to invest, within a simple legal and tax optimized structure, in a broadly diversified and professionally managed private equity portfolio. As of December 31, 2002, the company held fund investments in 85 funds and direct investments in 23 companies. Contact: Eva Kalias, Investor Relations and Communications (phone +41 41 726 79 80). CONTACT: PRIVATE EQUITY HOLDING AG Innere Guterstrasse 4 CH-6300 Zug Phone: +41 41 726 79 80 Fax: +41 41 726 79 81 SWISS LIFE: Announced Loss Still Holds Down Shares --------------------------------------------------- Shares in Switzerland's biggest personal pension provider, Swiss Life, continued to dip after its announcement of a CHF1.7 billion (US$1.3 billion) loss. The shares CHF72.80 value before the announcement fell 20% to CHF44, valuing the company at less than the CHF1.1 billion it raised in last December's emergency rights issue, the Financial Times noted. But Swiss Life, through spokesman Andreas Hildebrand denied troubles in the company saying, "We do not have a solvency problem and we do not need to take up more capital." He also noted that Swiss Life's exposure to the equity market had been cut to less than 2%. By comparison, the European insurance sector fell 5.5%. The report also noted that Swiss Life is vulnerable to market sell-off due to its heavy exposure to the officially regulated and unprofitable Swiss group pensions business. Despite major restructuring in its management and ambitious expansion strategy, the company is still deemed likely to be constrained since its already liquidated most of its profit potential. The current low level of interest rates is also expected to depress future profitability. The firm has also used up the proceeds of last December's CHF1.1 billion emergency rights issue. =========================== U N I T E D K I N G D O M =========================== ABBEY NATIONAL: Plans To Offer GBP2.35 Billion of Bonds ------------------------------------------------------- Abbey National is preparing to launch its seventh issue of bonds, backed by its U.K. mortgages and sold through its Holmes Financing mortgage trust, through its planned offering of GBP2.35 billion of bonds, according to Standard & Poor's. Abbey plans to sell GBP1.66 billion (US$2.66bn) of dollar- denominated bonds, 597 million (GBP410 million) of bonds denominated in the common European currency, and GBP285 million of securities in the U.K. currency. Abbey recently posted its first annual loss of GBP984 million before tax as a result of an extremely difficult market. Chairman Lord Burns said: "The decline in equity markets has affected our Life businesses, and the trading climate facing the Wholesale Bank has worsened in terms of defaults and credit spreads." Abbey National is U.K.'s second-biggest mortgage lender. AMEY PLC: Plans to Withdraw From Ministry of Defense PFI Contract ----------------------------------------------------------------- Amey might withdraw its equity investment in a GBP3 billion Ministry of Defense PFI contract to build a massive new Army barracks in the south of England, an unsourced report of The Scotsman says. The troubled support services group had reportedly discussed with partner Bovis Lend Lease its planned withdrawal from the long- term financial burden. Amey, though, would still continue with the work on the contract. The plan recalls a similar strategy employed in its new arrangement on the Glasgow and Edinburg schools PFI projects. Meanwhile, analysts are said to be worried that Amey might not be able to attract new contracts after issuing several profit warnings and changing its accounting to effect a GBP18.3 million loss. Shares in Amey went down more than 90% in 2002 as investors gradually lose confidence in the company. The drop in share value resulted to the resignation of Chief Executive Brian Staples in December. Two finance directors of the company also departed from the company's board, further aggravating the situation. CONTACT: Anthony Cardew, Nadja Vetter CardewChancery Phone: 020 7930 0777 Mobile: 07941 340436 AMP LIMITED: Presents Board Candidates for 2003 General Meeting --------------------------------------------------------------- The date for receipt of director nominations for the 2003 Annual General Meeting has now closed, AMP Chairman Peter Wilcox said today. Current AMP Directors standing for election at the AGM are: - Peter Wilcox; - Andrew Mohl; and - Roger Yates. Current AMP Directors standing for re-election are: - Lord Killeam; and - Richard Grellman. There is one external shareholder nomination for the Board: - Stephen Mayne. Details of all candidates will be outlined in the Notice of Meeting, which will be sent to shareholders around mid-April 2003. Current AMP Director Paul Mazoudier, who was due for re-election, has decided not to stand. Mr Mazoudier had already indicated his intention to leave the Board by the end of August 2003 and it would therefore not make sense for shareholders to elect him for a period of only three months. Mr Mazoudier will leave the Board before the AGM. Mr Wilcox said that the Board process for identifying additional candidates, announced on February 25, 2003, had only been underway for two weeks and was progressing well. The AGM will be held on May 15, 2003. CONTACT: AMP LIMITED Level 24, 33 Alfred Street Sydner NSW 2000 Australia Phone: ABN 49 079 354 519 Contact: Mark O'Brien Phone: 61 2 9257 7053 BRITISH AIRWAYS: Faces Ejection From FTSE 100 Index This Week ------------------------------------------------------------- British Airways stands to lose its membership in the prestigious FTSE 100 index this week as worries of a possible war in Iraq continue to hold down the airline's shares. The timing should have marked the third month of the carrier's comeback in the elite group after it lost the status it enjoyed since 1987 following the September 11, 2001 terrorist attack in the U.S. The review will be based on Tuesday night's closing share prices and confirmed to the London market the following evening. The changes will then take effect from the close of trading on March 21. In September, The chief executive of British Airways warns that war in Iraq could have a more deleterious impact on the business than the September 11 terrorist attacks in the US. As the launching of a military campaign against Saddam Hussein is fast approaching, Rod Eddington, BA's chief executive, sees the company preparing for a conflict that would be staged longer than the Gulf War. Mr. Eddington expects the impending conflict not as deep but more prolonged than the September 11 attacks. BRITISH ENERGY: Future Still Unclear Despite U.K.'s Rescue Plan --------------------------------------------------------------- The British government was able to meet the deadline for filing a restructuring plan for British Energy, but the future of the nuclear generator could still take months to materialize, the European Union Commission said. EU Commission spokesman Tilman Lueder denied that the regulator had come up with a decision on the restructuring plan as suggested by reports that it is about to approve a GBP2.1-billion rescue package for the power company. The figure would allegedly cover liabilities extending to 2086, including clean-up costs. Despite the government's extension of British Energy's GBP650 million emergency loan, the long-term future of the company is still uncertain as the Commission traditionally attaches tough conditions to any approval of restructuring plans, according to Dow Jones. It usually sets as condition the restoration of the company's long-term health within a reasonable time, and the abandonment of all loss-making activities. CONTACT: BRITISH ENERGY Paul Heward Phone: 01355 262 201 (Investor Relations) CARLTON COMMUNICATIONS: Hewitt Refers Carlton/Granada Merger ------------------------------------------------------------ Trade and Industry Secretary Patricia Hewitt on Tuesday referred to the Competition Commission the proposed merger of Carlton Communications Plc and Granada Plc. This decision is in accordance with the advice of the Director General of Fair Trading (DGFT). Patricia Hewitt said: "The DGFT has advised me that the proposed merger of Carlton and Granada raises competition concerns principally relating to the sale of TV advertising. The merger would greatly increase concentration in TV advertising, leaving one firm with more than half of national TV advertising revenue. The DGFT therefore considers that the case requires further examination by the Competition Commission to assess whether this increase in concentration is likely to lead to a substantial lessening of competition." The DGFT also concluded that the merger raises secondary competition questions in relation to potential competition for ITV licences and the supply of studio facilities in Northern England. The decision to make a reference to the Competition Commission (CC) does not in anyway prejudge the question of whether or not the merger would be against the public interest. It is for the CC to report on this after investigation. The CC will report by June 25, 2003. ***** Carlton Communications posted a full-year loss of GBP156 million, including a GBP98.8 million loss from failed ITV Digital venture last year. The figure is down from losses of GBP390 million a year ago. The group is showing signs it is recovering from the failure of ITV Digital, the Scotsman says. The group has agreed to merge with another broadcaster, Granada. It said it is continuing to make progress to push through with the proposed GBP1-billion takeover. CONTACT: DEPARTMENT OF TRADE AND INDUSTRY Public Enquiries Phone: 020-7215 5000 Home Page: http://www.dti.gov.uk CARLTON COMMUNICATIONS: Submits Merger Reference to Regulator ------------------------------------------------------------------------ Terms of Reference Whereas it appears to the Secretary of State that it is or may be the fact that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a merger situation qualifying for investigation, as defined in section 64(8) of the Fair Trading Act 1973, in that: (a) enterprises carried on by or under the control of Granada plc (at least one of which is carried on in the United Kingdom) will cease to be distinct from enterprises carried on by or under the control of Carlton Communications plc; and (b) the value of the assets to be taken over exceeds GBP70 million. Now, therefore, the Secretary of State, in exercise of her powers under sections 64, 69(2) and 75 of the Act, hereby refers to the Competition Commission, for investigation and report within a period ending on 25 June 2003, the following questions: (i) whether arrangements are in progress, or in contemplation as described in paragraph (a) above, which, if carried into effect, will result in the creation of a merger situation qualifying for investigation; (ii) if events so require, whether the actual results of those arrangements are the creation of such a situation; and (iii) if so, in either case, whether the creation of that situation may be expected to operate or (if events so require) operates against the public interest. In relation to the questions in paragraphs (i) and (ii) above the Commission shall exclude from consideration one of paragraphs (a) and (b) of section 64(1) of the Act if they find the other satisfied. CORUS GROUP: Board Rejects Sale of Aluminum Unit to Pechiney ------------------------------------------------------------ On October 23, 2002, Corus Group plc announced that it has agreed in principle to the sale of its aluminium rolled products and extrusion businesses to Pechiney S.A., and intended that a definitive sale and purchase agreement would be entered into following the completion of internal consultation, advice and approval processes by both Corus and Pechiney. The Board of Corus regrets to announce that following a meeting last evening of the Supervisory Board of Corus Nederland BV, the Supervisory Board has decided to reject the Management Board's recommendation to proceed with the Sale. It is the view of the Board of Corus that the Supervisory Board has acted irresponsibly and unreasonably in rejecting the Sale. In light of this and having made far-reaching efforts to achieve the approval of the Supervisory Board for many months, the Board of Corus feels compelled to consider its rights of redress in respect of the decision of the Supervisory Board and will be filing a request before the Enterprise Chamber of the Amsterdam Court of Appeal this morning to allow the Sale to proceed. Pechiney have been informed of the situation. Corus anticipates the decision from the Court on Thursday, 13 March 2003, and Corus will inform shareholders as soon as it is available. In parallel with the approval process for the Sale, the Board of Corus has considered the Group's broader strategy for carbon steel. This strategy is focused on eliminating the Group's losses, which continue to emanate from the U.K. despite the steps that have been undertaken in recent years to reduce capacity and increase competitiveness in the U.K. It is clear that Corus' U.K. losses have got to be reversed and, given the economic outlook, this will inevitably lead to significant further capacity reductions and concentration of operations onto fewer sites. A review by the Board is currently in progress and an announcement will be made on its findings as soon as possible. It is intended that the proceeds of the Sale will provide the capacity to finance the measures needed in the U.K. Should the Sale not proceed, the Group will need to look afresh for finance from equity and debt providers and may include proceeds from disposals of non-core assets. In the meantime, discussions are well advanced to extend the Group's current banking facilities until 31 May 2004, and discussions are also taking place to renew these facilities for the medium term. In anticipation of the decision from the Court on 13 March 2003, the Group's preliminary results for the twelve months ended 28 December 2002 will now be issued on Friday, March 14, 2003. The underlying operating results will be in line with market expectations with an underlying Group operating loss of o393m (2001: GBP377m) prior to a net charge for exceptional items for the period amounting to o53m which includes non-cash impairment charges of o109m relating to carbon steel operations. Note on Governance Corus Nederland, a wholly-owned subsidiary of Corus Group plc, is required by the Dutch statutory mitigated structure regime to have a Supervisory Board to advise the Management Board. That Supervisory Board is also responsible for supervising the policies of the Management Board of Corus Nederland and the general course of business of the company. When exercising its duties, it must act in the best interests of Corus Nederland and its business enterprise. Certain decisions are reserved for approval by the Supervisory Board, including the issue of shares, the entering into or termination of long-term cooperation arrangements with third parties, the alteration of the articles of Corus Nederland, and certain significant acquisitions and disposals. The Supervisory Board may extend the range of decisions of the Management Board that are subject to its approval. The Supervisory Board may suspend members of the Management Board. Members of the Supervisory Board are appointed for a minimum of four years, and any vacancies are filled by appointments made by the current members of the Supervisory Board, subject to a right of recommendation by the general meeting and the Management Board and rights of objection by the general meeting and the competent works council. The Supervisory Board must consist of a minimum of three members. CORUS GROUP: Moody's Places Senior Debt Ratings on Review --------------------------------------------------------- Moody's Investors Service placed Corus Group plc's Ba2 senior debt ratings on review for possible downgrade to reflect additional challenges resulting from the recent turn of events in the company. The recent developments refer to the rejection of the Dutch supervisory board of the plan to sell the unit's aluminum assets, and the continued weakness in the group's performance in the UK. The latter was highlighted by the group's announcement of additional restructuring measures necessary to turn around the group's U.K. steel assets. In connection, Moody's indicated to review Corus Finance's Ba2 EUR400 million debt maturing 2006, and BA2 GBP200 million debt maturing 2008. The review will focus on the strategy regarding the sale of the aluminum assets; progress and plans regarding extension and renegotiation of financing arrangements including extension of the EUR 1.4 billion syndicated loan facility beyond the expiry date of January 2004; operating performance trends; and strategic positioning of the group. Moody's advises that although the delay in the sale of the aluminum asset is unlikely to affect the group's liquidity position, the management will have to secure bank support for the time beyond the expiry of the group's main bank loan facility in January 2004. Corus Group plc is headquartered in London and was created through the merger of British Steel plc and Koninklijke Hoogovens NV. The group is one of the world's largest steel producers with annual 2001 sales of approximately GBP 7.7 billion. CONTACT: MOODY'S INVESTORS SERVICE Frankfurt Dr. Juergen Berblinger, Managing Director European Corporates Group Moody's Deutschland GmbH Phone: +49 69 707 30 700 Frankfurt Renate Labak, Vice President - Senior Analyst European Corporates Group Moody's Deutschland GmbH Phone: +49 69 707 30 700 EMI GROUP: Moody's Downgrades Ratings of Group and Subsidiary ------------------------------------------------------------- Moody's Investors Service downgraded the ratings for EMI Group on expectation of continued softness in the world recorded music markets. Moody's believes that the continuation of the weakness through 2003 and beyond is likely to put renewed pressure on EMI's profits and debt protection measurements. The ratings downgraded are for EMI Group's Eurobonds due 2008 and Capitol Records Inc.'s senior notes due 2009 (guaranteed by EMI Group plc). The rating, which was previously at Baa2, was lowered to Ba1. The outlook is stable to reflect "the relative resilience of EMI's market-leading music publishing business, the company's improved cost structure and management's ongoing commitment to debt reduction through asset sales." The rating agency is concerned about the ability of the company, and the whole music industry, to curve the problem of music piracy. It is also skeptical that the company will be able to build its own Internet distribution services. Moody's as well doubts the group's capability to support an investment grade rating for the next two years due to these cash flow limiting factors. It predicts a further revenue decline in 2003/2004. EMI Group plc, one of the world's leading music recording and publishing companies is headquartered in London, England. Capitol Records Inc. is its indirectly wholly owned subsidiary. EMI GROUP: Issues Response to Moody's Statement of Downgrade ------------------------------------------------------------ EMI Group plc has today been informed of the decision of Moody's Investors Service to reduce its debt ratings from Baa2 with a negative outlook to Ba1 with a stable outlook, based on concerns regarding the dynamics of the recorded music market. EMI is pleased that Moody's has acknowledged that palpable progress is now being made in the fight against piracy, through actions that have been and are being taken by EMI, by the wider music industry and by government agencies. We have confidence that these actions will create the basis for meaningful improvement in recorded music market conditions. We are also pleased that Moody's has acknowledged the resilience of EMI's market-leading music-publishing business, the improved cost structure, and management's ongoing commitment to debt reduction. The decision has no impact on EMI's liquidity, which remains strong, nor does it trigger any renegotiation clauses or advance repayments of bank credit lines. At this rating, the impact on EMI's interest charge for the current fiscal year will be negligible, with a maximum annualised increase in interest charges thereafter of GBP8 million, before tax relief. CONTACT: EMI GROUP Siobhan Turner, Investor Relations Phone: +44 20 7667 3234 BRUNSWICK GROUP Patrick Handley Phone: +44 20 7404 5959 SCOTIA HOLDINGS: Doctor Accused of Fraud in Clinical Trials ----------------------------------------------------------- Scotia Holdings, a company whose interests ranged from fish oils to a cancer treatment activated by light, was accused of fraud in clinical trials conducted by Kurdish-born doctor Goran Jamal. According to the Times, Dr. Jamal is currently being accused of manipulating results of trials into Tarabetic, a drug he helped to invent, and whose phase three clinical trial he heads as principal investigator at Glasgow's Southern General Hospital. The case is seen as another blow to the Scottish company, which has suffered a series of financial setbacks, strategic difficulties, and drug development problems. According to the report, the General Medical Council is accusing Mr. Jamal of "serious professional misconduct." Dr. Jamal stands to lose his license as a doctor once the allegations are proven in the hearing, which runs until the end of this month. Andrew Collender, QC, counsel for the GMC, said during a hearing last week: "It became clear that the data from the Southern General Hospital could not have been properly compiled. In short they must have been falsified to suggest the effects were superior to placebo in patients." The results from the Glasgow hospital allegedly differs from those collected at other research centers in the U.K., Germany and Sweden. Dr. Jamal was promised a 0.5% royalty on the sales of Tarabetic, a transaction perceived with skepticism by observers. Scotia experienced the early phase of troubles relating to Tarabetic, a drug developed from evening primrose oil for treating nerve damage in diabetics, when the U.K.'s Medicines Control Agency refused to approve the drug in 1997. Millions of pounds had been pumped into Tarabetic's development and it had been steered through all three phases of clinical trials. CONTACT: SCOTIA HOLDINGS PLC Scotia House Castle Business Park Stirling FK9 4TZ United Kingdom Phone: +44 (0)1786 895100 Fax: +44 (0)1786 895450 E-mail: IRC@scotia-holdings.com Home Page: http://www.scotia-holdings.com SLOMAN ENGINEERING: Receivers Offer Business for Sale ----------------------------------------------------- South West Durham firm Sloman Engineering is being offered for sale as part of the plan to unload the automotive division of Birmingham-based engineering group L Gardner. Richard Voice, senior manager for KPMG, the receivers called to find a buyer for the division, said: "The business is still trading and customers have been very supportive. "There has been a moderate amount of interest in the company." Sloman provides components for the automotive industry, and machine parts from raw castings from foundries. Mr. Voice said that as the business was continuing to trade, no staff had been laid off, although 100 of Sloman's 140 employees are under threat. He also revealed that no decision has yet been taken with regards to the future of the company, and as such, interested buyers can still bid for the company at no specific timetable. L Gardner's five loss-making automotive subsidiaries were placed under receivership as a result of the general downturn in the engineering industry. At the end of last year, the firm said that competitors going into administration or receivership had given the 14-year old Sloman some business opportunities, but not enough to avoid redundancies. The engineering company, which operates from a 42,000sq factory located on the Aycliffe Industrial Park, has Cummins of Darlington as one of its biggest customers. CONTACT: SLOMAN ENGINEERING LTD St. Andrews Way, Aycliffe Ind Estate, Newton Aycliffe, County Durham DL5 6NH, England. Phone: +44 (0)1325 312 313 Fax: +44 (0)1325 311 415 E-mail: mail@sloman.co.uk or L. GARDNER GROUP PLC, Whitacre Road Nuneaton Warwickshire CV11 6BP Phone: +44 (0)2476 321 320 Fax: +44 (0)2476 321 321 E-mail: mail@lgardner.co.uk THISTLE HOTELS: Plan to Dispose Hotels Considered Sensible ---------------------------------------------------------- Experts approve Thistle Hotels' plan to dispose three top London hotels to thwart a GBP554 million takeover bid by BIL International, according to AFX News. The report says the sources deemed the move as the next possible solution to giving the assets as much value and at the same time block the bid of the Singaporean firm. The hotelier reportedly declined to comment. Earlier, the Business said the hotels that could go are the 801- ed Tower Hotel by Tower Bridge, the 280-bed four-star Royal Horseguards Hotel near the Houses of Parliament, and the 692-bed Marble Arch near Hyde Park and Oxford Street. Thistle Hotels expects to raise GBP500 million from the disposals. Proceeds of the transaction are to be distributed as a special dividend to shareholders, whose majority decision is crucial to the success of the plan. BIL International already has a 46% stake in the company, yet, according to the report, shareholders, who deemed BIL's offer as too low, could still outvote the bidder. The Board of Thistle had earlier unanimously rejected the offer saying, "BIL's offer of 115 pence per Thistle share is wholly inadequate." Thistle has long been considered a takeover target, with its management coming under fire for poor performance, and a reluctance to return cash to investors. CONTACT: THISTLE HOTELS PLC Phone: 020 7895 2304 Ian Burke, Chief Executive Officer THOMAS POTTS: Issues Chairman's Letter of General Meeting Outcome ----------------------------------------------------------------- Cancellation of AIM listing I am writing to inform you that trading in the Company's shares on the Alternative Investment Market of the London Stock Exchange plc will end at close of business on April 11, 2003. At the Extraordinary General Meeting of the Company held on February 27, 2003 shareholders approved the resolution authorizing the Board to cancel the listing. As a result, there will be no market for your shares after close of business on April 11, 2003. This date was chosen by the Board in order to allow any shareholders wishing to sell their shares to do so on either side of 5th April, the last day of the UK tax year (which this year falls on a Saturday). Shareholders who are in any doubt as to any action to take are recommended to consult immediately their stockbroker, bank manager, solicitor, accountant or other professional adviser authorised under the Financial Services and Markets Act 2000. STEPHEN HARGRAVE Chairman CONTACT: Stephen Hargrave, Chairman Phone: 020 7242 0735 Adrian Povey, Finance Director Phone: 020 7517 0200 Mark Scanlon, Chief Executive Phone: 020 7517 0200 Mobile: 07720 296515 THOMAS POTTS: Announces Appointment of New Group Finance Director ----------------------------------------------------------------- The Company is pleased to announce the appointment of Richard Charles Fookes ACA as Group Finance Director with effect from 1 April 2003. He succeeds Adrian Povey. Mr Fookes, age 34, has been Finance Director of two of the Group's subsidiaries: CCS Potts Limited since 1 August 2001 and Fairway PSD Limited since 15 April 2002. Prior to joining the Group, he was Finance Director and then General Manager of Label Converters Limited. Statutory disclosures Mr. Fookes holds or has held the following directorships or partnerships within the last five years: Current: CCS Potts Limited Fairway PSD Limited Past: Label Converters Limited ***** In the six months to the end of September the Group made a pre- tax loss of GBP988,000, including GBP233,000 of exceptional charges. CONTACT: THOMAS POTTS Mark Scanlon, Chief Executive Phone: 07720 296 515 Richard Fookes Phone: 029 2036 5900 UNIQLO: Owner to Downsize United Kingdom Store Chain ---------------------------------------------------- Fast Retailing (U.K.) Ltd. has decided, at the meeting of its Board of Directors on March 7 2003, to downsize its store operating areas in the U.K. market by closing down 16 stores out of 21 by August 2003. Fast Retailing (U.K.) Ltd. opened its first store in London in September 2001 and expanded its store chain to suburban area of London, Midlands, and North West. However, due to the low recognition of UNIQLO brand name, some stores located in such areas failed to achieve the targeted sales and profits. FRUK decided to change its direction to improve profitability rather than expansion by concentrating on its business at the following five stores. By August 2003, total of 16 stores will be closed: seven stores in London suburban area, five stores in Midlands, and four stores in North West. Store Name Address Knightsbridge 163/169 Brompton Road London SW3 1PY Regent Street 84-86 Regent Street London W1 5RR Wimbledon Victoria Crescent/The Broadway Wimbledon London SW19 Richmond 1 Lower George Street Richmond Surrey TW9 1HU Uxbridge The Chimes shopping Center Uxbridge UB8 1GA We still believe there is great market potential in the U.K. market. Therefore FRUK will re-start its business from five stores and improve profitability. The restructuring plan is believed to make FRUK to be profitable for the next fiscal year ending May 2004. Fast Retailing (U.K.) Ltd. currently estimates extra-ordinary losses related to the closure of 16 U.K. stores which will total around 3 billion yen. This loss will impact on current fiscal year's consolidated results (ending August 2003). CONTACT: UNIQLO, Store Support Centre Information 24 Britton Street, London EC1M 5UA Phone: 0845 1000390 E-mail: info@UNIQLO.co.uk Homepage: http://www.uniqlo.co.uk/ ************ 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 be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *