/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030623.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, June 23, 2003, Vol. 4, No. 122 Headlines C Z E C H R E P U B L I C KTP QUANTUM: Clients Slam Failure to Return Cash; To Stage Rally TRINECKE ZELEZARNY: Government Insists on State Assistance UNION BANKA: Squabble with Slovensky Over 'Ducky Bills' Revived F I N L A N D BENEFON OYJ: Plans to Raise EUR1-2 Mln in Limited Share Issue F R A N C E ARCELOR GROUP: Sells Creusot Forge Industrie to France-Essor METALEUROP SA: Hearing on Extension of Liquidation Postponed VIVENDI UNIVERSAL: Gets US$190 Million for L.A. Office Tower I T A L Y FIAT SPA: Redundancy Plan Affecting 10,000 Jobs Out this Week TELECOM ITALIA: Buys e.Biscom to Beef up Publishing Business N E T H E R L A N D S FORTIS N.V.: Denies Inclusion in Industry-wide Antitrust Probe KONINKLIJKE AHOLD: Argentine to Buy Back Bonds to Attract Bids N O R W A Y PETROLEUM GEO-SERVICES: CGG Supports Financial Workout Plan R U S S I A BELARUSSKAYA DELOVAYA: Court Rejects Motion to Resume Printing NATIONAL RESERVE BANK: Fitch Upgrades Long-term Rating to 'CCC-' S P A I N AUNA TELECOMUNICACIONES: Sells Television Masts Business TERRA LYCOS: Spanish Regulator OKs Telefonica's Bid S W I T Z E R L A N D CABLECOM: Creditors Accept Terms of Financial Restructuring SWISS RE: Expects Narrower First-half Write-downs UBS AG: To Cut Hundreds of Investment-banking Jobs Worldwide ZURICH FINANCIAL: Denies Plans to Layoff Thousands of IT Staff U N I T E D K I N G D O M AVINGTRANS PLC: Cancels Share Premium Account; Issues EGM Notice CFA CAPITAL: Withdraws from Execution-only Broking Business CORDIANT COMMUNICATIONS: Issues Statement on Share Suspension CORDIANT COMMUNICATIONS: WPP Reaches Deal to Acquire Group CORUS GROUP: Completes Acquisition, Sale of 50% of Lusosider FINANCIAL OBJECTS: Cautious on ActiveBank Sales Prospects GLAXOSMITHKLINE PLC: Faces U.S. Lawsuits for Insulin Drug GLAXOSMITHKLINE PLC: U.S. Drug Regulator Issues Warning on Paxil GLAXOSMITHKLINE PLC: Responds to FDA's Pronouncement on Paxil HAMLEYS PLC: Posts Details of Soldier Offer HEYWOOD WILLIAMS: Asset Disposal in U.S. to Gross US$60 Million JASMIN PLC: Revises Accounting Method to Reflect Losses LE MERIDIEN: U.S. Investment Firm Eyes Flagship London Hotels LING SYSTEMS: Joint Administrators Offer Business for Sale MYTRAVEL GROUP: Pursues Case that Just Might Stave Off Collapse PACKING SHOP: Administrative Receivers Sell Business PPL THERAPEUTICS: Strikes 'Fibrin' Deal with Instituto Grifols STREAM GROUP: Cancels Plan to Delist from AIM ********* =========================== C Z E C H R E P U B L I C =========================== KTP QUANTUM: Clients Slam Failure to Return Cash; To Stage Rally ---------------------------------------------------------------- Clients of bankrupt KTP Quantum plan to stage a public rally to express their disappointment on the failure of the brokerage firm to return their money promptly as provided for by law. The Brokers' Guarantee Fund failed to pay them before June 21 as mandated and so they will demonstrate at Prague's Small Town Square on Wednesday, Czech Happenings said. "The aim is to call attention to the failure to observe laws, their evading and further abuses occurring in our country," says association Jistota a Budoucnost (Safety and Future), with which most of KTP Quantum clients are affiliated. KTP Quantum faces claims worth CZK3.8 billion from 30,000 clients in what is known as the biggest bankruptcy of a domestic brokerage. "The fund cannot pay the compensations in full and, so as not to break the law, it will pay at least CZK1,000 to the ten oldest clients of KTP Quantum," the guarantee fund said. According to the report, the Brokers' Guarantee Fund does not have sufficient money even to finance its own activities and the government has yet to decide on a state loan. The matter is also not on the agenda of the coming cabinet meeting. TRINECKE ZELEZARNY: Government Insists on State Assistance ---------------------------------------------------------- Industry and Trade Minister Milan Urban is pushing plans to obtain state assistance for steelmaker Trinecke zelezarny, whose existence he considered greatly under threat. "Trinecke zelezarny by no means meets the European Commission criteria for viability," Mr. Urban told a news conference, according to Czech Happenings. Trinecke is scheduled to submit its restructuring plan to the anti-monopoly office in July. Authorities will then decide whether the steelmaker needs outside assistance to survive. The Czech Republic will then draw up an official application to the European Commission once the agency rules positively, according to Mr. Urban. "The official application could be filed in September... After accession to the European Union, such assistance would be impossible," Mr. Urban said. The report noted that Prague did not ask for permission to grant aid to Trinecke during last year's talks with the European Union. Last year, the European Commission insisted the company was not in crisis and ruled out any aid. UNION BANKA: Squabble with Slovensky Over 'Ducky Bills' Revived --------------------------------------------------------------- The Supreme Court in Bratislava has ordered the resumption of the "Ducky bills of exchange" case between Union Banka and Slovensky plynarensky priemysel. Lawyer Ernest Valko, who represents the Slovak gas company, confirmed the information, according to Czech Happenings. The argument relates to 5 of the 30 bills of exchange -- signed by Slovensky's former director Jan Ducky -- that surfaced after he was shot dead in January 1999. Mr. Ducky had reportedly signed blank bills issued exclusively to Czech companies, including the Sezooz Group. Sezooz CEO Roman Zubik then used the bills signed in 1998 as collateral for a loan from Union Banka. Mr. Zubik is now facing a suit in relation to the manipulations of the Ducky bills. Slovensky challenged the validity of the bills of exchange, and filed a recourse and complaint with the constitutional court. In a recent development, the senate dealing with the recourse cancelled all previous court decisions, as it recognized Slovensky's arguments, rewinding the status of the case to the very beginning. This decision effectively annulled the Supreme Court's November 2001 decision ordering Slovensky to pay Union Banka CZK350 million for the five bills. The decision is binding for all courts, Mr. Valko told Czech Happenings. ============= F I N L A N D ============= BENEFON OYJ: Plans to Raise EUR1-2 Mln in Limited Share Issue ------------------------------------------------------------- Related with the application for corporate reorganization, about which the decision is to be expected soon, and the offered on-going equity issue for creditors, the Board of Directors has decided to commence preparations of a limited share issue to be offered to all shareholders. The objective of the share issue, according to President Jukka Nieminen in a statement, is to strengthen the financial position of the company and thus support the realization of the reorganization plan but also to offer the shareholders an opportunity according to their normal pre-emptive right to make an additional investment in the company. The tentative target is to raise EUR1-2 million of additional funding and capital. The targeted schedule is to realize the share issue in August. The company will report on the matter with the progress of the preparations. =========== F R A N C E =========== ARCELOR GROUP: Sells Creusot Forge Industrie to France-Essor ------------------------------------------------------------ Industeel France (Arcelor Group) and France-Essor, one of the leading French constructors of large mechanical parts and cylinders for heavy industry, have just concluded a sale agreement in order to constitute a new industrial unit in the field of heavy mechanical construction, offering its customers value-added products in the nuclear, petrochemical and offshore sectors. This agreement concludes the sale to France-Essor of: (i) 100% of Creusot Forge Industrie/CFI (Arcelor Group), employing 85 staff for a 2002 turnover of EUR20 million. The new unit will be composed of CFI and the two main France-Essor units in Montchanin-Le Creusot, SFAR and CIVAD, specialized in the design and assembly of heavy mechanical components, as well as in forming and joining operations. Significant modernization and diversification investments (EUR6 million over 3 years) are planned to expand CFI's product range. This activity will be managed by David Guillon (ii) 25% of the Creusot Metal steelshop (Arcelor Group), one of the leading steelshops in the world qualified for the nuclear sector, in order to secure the supply of heavy ingots from the steelshop and to offer the customers of France-Essor a guarantee of quality for their products Reorganized as a profit center, the steelshop will continue to supply Industeel France's plate mill and, in this new configuration, will also serve the European ingot market. This agreement will come into effect beginning July 31, 2003. The relevant staff representatives have been informed and consulted on this project. CONTACT: ARCELOR GROUP Investor Relations Martine Hue Phone: +352 4792 2151 00 800 4792 4792 +33 1 41 25 9898 FRANCE ESSOR David Guillon Phone: +33 3 85 73 09 20 METALEUROP SA: Hearing on Extension of Liquidation Postponed ------------------------------------------------------------ At request of the public prosecutor, the Douai Court of Appeals postponed to September 3, 2003, the hearing on the request by the official receivers of Metaleurop Nord to extend the liquidation procedure of the company. The Bethune Court of First Instance, according to a company statement, had rejected this request in a decision on April 11, triggering the appeal. The company is being liquidated in favor of Metaleurop SA and Metaleurop Commercial SAS. "As a consequence of the different events, which affected the Metaleurop group during the last months, the Board of Directors of Metaleurop SA cannot approve the statutory and consolidated accounts of Metaleurop SA for the financial year 2002 before the second half of June 2003. Consequently, the accounts cannot be published in BALO before this time period," a company statement reads. "The Annual General Meeting should take place in September 2003. Following Metaleurop SA's request, The Trade Court of Paris has granted the group an extension until September 30, 2003, to hold its Annual General Meeting, which has to give a ruling on the accounts of the financial year 2003 ending on December 31, 2002," the company said. CONTACT: METALEUROP Pascal Ragot Phone: 33 1 42 99 47 73 Mobile: 33 6 85 72 35 43 VIVENDI UNIVERSAL: Gets US$190 Million for L.A. Office Tower ------------------------------------------------------------ Vivendi Universal has agreed to sell 10 Universal City Plaza for US$190 million to CarrAmerica Realty Corp. and Beacon Capital Partners LLC, according to CarrAmerica. The Los Angeles office tower is a 35-story, 774,240 square foot skyscraper. Washington, D.C.-based CarrAmerica Realty Corp. holds a 20% ownership stake in the building via a joint venture with Boston's Beacon Capital. The building is adjacent to the Universal Studios theme park and movie studio that Paris-based Vivendi is also trying to sell to pay debts. It has set a June 23 deadline for accepting bids. Vivendi Universal Chief Financial Officer Jacques Espinasse recently said Vivendi has gross debt of EUR17 billion. CONTACT: VIVENDI UNIVERSAL Investor Relations Paris Daniel Scolan Phone: +33 (0) 171 71 32 91 Laurence Daniel Phone: +33 (0) 1 71 71 12 33 New York Eileen McLaughlin Phone: +(1) 212.572.8961 ========= I T A L Y ========= FIAT SPA: Redundancy Plan Affecting 10,000 Jobs Out this Week ------------------------------------------------------------- The restructuring plan of troubled industrial group, Fiat, will involve up to 10,000 job-cuts worldwide, the Financial Times reported citing people close to the company. Fiat CEO Giuseppe Morchio, who was appointed February, will announce this Thursday the redundancies together with the group's commitment to focus on research and development spending. The plan will mainly affect workers at CNH, the US maker of farm and construction equipment that currently employs 28,500 workers in 45 factories. Around 1,000 employees in Italy will also be dismissed, but this will be done through early retirement in order to avoid the same strikes that happened when the group announced redundancies at Fiat Auto. Fiat made 8,500 long-term job suspensions last autumn at Fiat Auto, its loss-making car division. The recent job-cuts in Italy are expected to affect Fiat's other operating units, including CNH, truck division Iveco, components-maker Magneti Marelli, and robotics unit Comau, according to the report. Fiat has 190,000 strong workers, half of whom are based in Italy. The soon-to-be unveiled restructuring plan will accelerate by one year more job-cuts and plant closures that were planned until 2005. TELECOM ITALIA: Buys e.Biscom to Beef up Publishing Business ------------------------------------------------------------ Telecom Italia has reached an agreement with e.Biscom for the acquisition of the AP.Biscom press agency. This move is targeted at consolidating publishing operations by expanding Telecom Italia Media, the new company founded after hiving off Seat Pagine Gialle. Antonio Calabro will be the new editor. Following the disposal, the e.Biscom Group will focus operations on core broadband telecommunications businesses. This acquisition of AP.Biscom, which has run successful publishing operations in its initial phase, enables Telecom Italia to take a major step into the international news arena, in partnership with the prestigious Associated Press. Telecom Italia is poised to leverage all of the major opportunities for complete synergy in the various new media markets (television, Internet, press agencies) in which it now has a presence. Telecom Italia has a television presence through Telecom Italia Media with La 7 and MTV, and an Internet presence with Virgilio and Tin.it. Acquisition of a 100% equity stake in e.BisNews, which currently operates under the AP.Biscom brand, is an expression of the Group's strategies in this sector. The Company will be able to exploit original news content ideal for the Internet and television. Major synergies with other Group companies will be realized as the press agency grows, particularly in regard to mobile telephony. Acquisition of a 100% equity stake in e.BisNews, publisher of the AP.Biscom press agency, which is currently in the start-up phase, is being undertaken at a symbolic price of one euro. The company, whose revenues for 2003 are forecast at EUR3.5 million, has no debt. Completion of the deal is conditional upon approval by the relevant authorities. ===================== N E T H E R L A N D S ===================== FORTIS N.V.: Denies Inclusion in Industry-wide Antitrust Probe -------------------------------------------------------------- Fortis N.V. is not involved in the antitrust probe in the Dutch insurance industry conducted by the Dutch competition authority Nederlandse Mededingingsautoriteit, online news agency AFX News Feed reported. Fortis confirmed that it is a member of the association, but denied any part in the investigation. "Neither Fortis nor any of its companies are involved in this issue," Fortis told AFX. Earlier the regulator raided the offices of the Dutch Association of Insurers, which represents some 275 non-life and life insurance companies active in the Netherlands. Investigators are looking into possible competition concerns within the insurance industry and the raids are just the first step of the process. No concrete reasons, however, were provided for the move, according to the report. Meanwhile, Delta Lloyd Insurance, part of Aviva PLC unit Delta Lloyd Groep NV, has announced it is currently under investigation by the regulator. KONINKLIJKE AHOLD: Argentine to Buy Back Bonds to Attract Bids -------------------------------------------------------------- Royal Ahold's Argentinean unit, Disco, is planning to buy back bonds with a face value of US$250 million to facilitate its sale, according to just-food.com. The buyback, expected to be completed July 22, will leave the buyer of Disco with only bank debts to worry about. "[It is meant to] clean up liabilities on Disco's balance sheet as much as possible so that its sale is more attractive," a trader told Reuters. Ahold, which holds between 75% and 80% of Disco's bonds, is selling its operations in Argentina, Brazil, Chile, Paraguay and Peru, after admitting it had overstated profits by more than US$900 million. The unit, together with Ahold's Chilean operation, Santa Isabel, is currently under scrutiny following the discovery of irregularities inside their books. CONTACT: KONINKLIJKE AHOLD P.O. Box 3050 1500 HB Zaandam Netherlands Corporate Communications Phone: +31.75.659.5720 Fax: +31 (0)75 659 83 02 Home Page: http://www.ahold.com =========== N O R W A Y =========== PETROLEUM GEO-SERVICES: CGG Supports Financial Workout Plan ----------------------------------------------------------- As a significant shareholder of PGS since September 26, 2002 with a 7.5% equity stake, CGG (NYSE: GGY; SRD: 12016) has given its support to the financial restructuring plan presented Wednesday at the Company's annual shareholders meeting in Oslo. This support is materialized by the participation of CGG to the group of "supporting shareholders" who have committed to jointly acquire 30% of the post-restructuring equity of PGS for a global amount of $85 million (of which $22 million for CGG and $60 million for UMOE). Seventy-five percent of this 30% tranche will be proposed to the PGS Shareholders pro-rata their share ownership, therefore potentially reducing the amount guaranteed to the "supporting shareholders" to a minimum 25% of this tranche (corresponding to $5.5 million for CGG). Upon completion of this process anticipated by fall 2003, CGG's stake in PGS will therefore be comprised between 2.7% and 8.1%. The Compagnie Generale de Geophysique group is a global participant in the oilfield services industry, providing a wide range of seismic data acquisition processing and geoscience services and software to clients in the oil and gas exploration and production business. It is also a global manufacturer of geophysical equipment. =========== R U S S I A =========== BELARUSSKAYA DELOVAYA: Court Rejects Motion to Resume Printing -------------------------------------------------------------- A second attempt by Belarusskaya Delovaya Gazeta to resume publication was thwarted after a court in Belarus rejected its appeal to lift the sanction imposed upon it, on charges that it had unlawfully printed information about two high-profile cases. The first independent publication in Belarus was told to stop printing last month for at least three months on grounds that it violated media laws in relation to its report concerning President Alexander Lukashenko and the director of the Minsk Tractor Factory. Belarusskaya Delovaya Gazeta published an article in April saying that the president had sent home a Russian woman, crowned Miss Europe in 2002, using his plane after meeting with him in Belarus. The publisher of the independent newspaper appealed to the nation's highest civil court, but the authority rejected it Tuesday. The newspaper also appealed a second suit in relation to its publication of alleged uncertified information on a case involving the director of the Minsk Tractor Factory. It claimed that it had official permission to print the information, but the court ruled against it Thursday. "The judge was simply executing a political order and [the] decision had nothing to do with justice," Dow Jones quoted Editor in Chief Svetlana Kalinkina as saying. The report also said that according to a Ministry of Information official, the government now has the right to initiate the complete closure of the newspaper. This pronouncement has spawned fears that other non-government newspapers could be shut down following the paper's permanent closure. NATIONAL RESERVE BANK: Fitch Upgrades Long-term Rating to 'CCC-' ---------------------------------------------------------------- Fitch Ratings, the international rating agency, has upgraded the Long-term rating of National Reserve Bank to 'CCC-' ('CCC minus') from 'CC'. At the same time, the agency has removed the Positive Outlook assigned to the Long-term rating and placed it on Rating Watch Positive. National Reserve Bank's other ratings have been affirmed as follows: Short-term 'C', Individual 'D/E' and Support '5T'. The rating action follows the recent announcement by National Reserve Bank that it had settled its long-lasting dispute with Credit Agricole Indosuez over claims raised against the bank under forward FX contracts entered into before the 1998 Russian crisis. Fitch understands that, as a result of the settlement, all of National Reserve Bank's arrested assets have been unfrozen and all legal suits and counter-suits have been terminated. The settlement presents National Reserve Bank with an opportunity to develop its business again, having been severely restricted in its ability to function as a commercial/investment banking business over the past four years. National Reserve Bank's 2001 IAS financial statements had included a provision of RUB3.6 billion (US$119 million) for claims made against it by Credit Agricole Indosuez. The agency anticipates resolving the Positive Rating Watch within the coming months, following meetings with the bank's management to determine, among many other issues, the strategic direction of the bank and to assess its core financial strength and prospects in an increasingly competitive banking environment. Dependent on the outcome of Fitch's review, National Reserve Bank's Long-term rating could benefit from a material upgrade, potentially to the single 'B' range. Were this to be the case, National Reserve Bank's Short-term rating would also be upgraded to 'B'. Following its acquisition by Gazprom, Russia's largest gas conglomerate, in 1995, National Reserve Bank focused largely on investment banking, a strategy that served it well until the 1998 crisis, but resulted in substantial financial distress thereafter. In mid-2002, Gazprom sold its 35% voting stake and all of its convertible preference shares to National Reserve Bank's other shareholders, including the bank's senior management. A further, substantial share-issue of US$484 million is anticipated in the near-medium term, to be purchased by existing shareholders. Strategically, National Reserve Bank is presently forming a new Financial Industrial Group, headed by the bank's president. The aviation sector (the group has stakes in Aeroflot and the Ilyushin Finance aircraft leasing company) will be the core of the group, which will also have interests in banking (through National Reserve Bank), energy, real estate, agriculture, the mass media and telecommunications. ========= S P A I N ========= AUNA TELECOMUNICACIONES: Sells Television Masts Business -------------------------------------------------------- Spanish telecommunications holding company Auna Telecomunicaciones has agreed to sell Retevision Audiovisual, its television masts business, for EUR423 million, according to Dow Jones Newswires. The new owner of the operation is Tradia, a unit of highways operator Abertis Infraestructuras SA. Tradia will assume Retevision Audiovisual's EUR341 million- net debt. The sale still requires the approval of Spanish competition authorities. Tradia indicated it might also invite an industrial partner to take minority stake in Retevision Audivisual, according to the report. Retevision Audiovisual owns 2,400 masts that broadcast television and radio across Spain in both analog and digital formats. Its operating revenue in 2002 was EUR187 million, with earnings before interest, taxes, depreciation and amortization of EUR58 million. Auna, which is owned by bank Santander Central Hispano SA and electricity companies Endesa SA and Union Fenosa, initiated a major restructuring program in January. The plan includes divesting assets, implementing a redundancy plan for its employees, and changing its management structure. Auna's holdings include the No.2 fixed line telecom after Telefonica SA, and Amena, the No.3 mobile telecom player. TERRA LYCOS: Spanish Regulator OKs Telefonica's Bid --------------------------------------------------- Spanish stock market regulator CNMV has approved Telefonica SA's EUR1.73 billion- bid for its very own subsidiary, Terra Lycos SA, Dow Jones Newswires reported. The company wants to acquire the 61.6% of Terra it doesn't own. It is offering EUR5.25 per Terra share, valuing the company EUR3.26 billion or less than half the EUR13 price tag at the initial public offering in November 1999. The Internet business has cash reserves of EUR1.73 billion, equivalent to EUR3.09 a share. A condition pegged for the acquisition is that Telefonica must achieve acceptances from 75% of Terra's capital. However, Telefonica has declared it may still go through with the bid even if it fails to make that level, Dow Jones said. Telefonica expects to complete the buyout in August. Terra Lycos failed to turn in a profit partly because of the slump in the online advertising and the strong competition it endures with Telefonica in delivering high-speed Internet access. Telefonica, on the other hand, is expecting EBITDA of EUR269 million in the 2003 to 2006 period after absorbing Terra Lycos. ===================== S W I T Z E R L A N D ===================== CABLECOM: Creditors Accept Terms of Financial Restructuring ----------------------------------------------------------- Cablecom on Thursday announced that its Board of Directors have been advised that 100% of its lenders and other holders of economic interests in Cablecom 's CHF3.8 billion of bank debt have agreed upon the principal terms and parameters for the restructuring of that debt. Cablecom's Board and management believe the financial restructuring will provide the Company with a stable, long-term capital structure and strengthen the company's ability to compete in its core markets. The principal terms for the financial restructuring are: (a) The outstanding principal amount of the debt would be reduced from approximately CHF3.8 billion to approximately CHF1.7 billion. (b) The facility would be split into two tranches, one with a final maturity date of December 31, 2009 and one with a final maturity date of June 30, 2010. (c) The company's lenders would acquire control of substantially all of the company's share capital, with NTL Europe's remaining interest being acquired by certain members of the new shareholder group. (d) At the time of the consummation of the restructuring, the additional equity capital would be raised through a rights offering to the new shareholder group. Cablecom's management issued this statement: "Management is of the view that the terms of the restructuring will strengthen the company's balance sheet and will provide Cablecom with a lasting financial solution and the flexibility to assert its long-term, competitive position in the Swiss telecommunication and media markets. The company can once again focus all of its attention on and invest in its core businesses -- radio and television, cablecom high-speed internet and the introduction of Cablecom digital phone service, as well as being even better positioned to address the key concerns of our business customers. Cablecom has invested approximately CHF1.5 billion in its infrastructure over recent years. Once the restructuring is completed, the company will continue that expansion and position itself as the leading provider of competitive telecommunication and media services in Switzerland. Further, the restructuring will not alter or modify the company's current positive relationship with its employees, customers, partners and suppliers." The proposed restructuring is subject to various closing conditions, including the negotiation, completion and execution of definitive documentation. Although no assurance can be given that such documentation will be completed, as a result of the recent agreement on principal terms, Cablecom's Board of Directors remains optimistic that a definitive restructuring will be completed shortly. In that regard, the company also announced that its lenders have agreed to a moratorium on the payment of interest on the facility. That moratorium should permit the company to operate on a positive cash flow basis while definitive documentation is completed. The interest moratorium currently runs through June 30, 2003 (the current maturity date of the facility) but, along with the maturity date, is expected to be extended to at least July 31, 2003. Cablecom currently supplies approximately 1.5 million households, and has approximately 1400 staff, making it the leading cable network provider in Switzerland. As a multi-service provider, Cablecom offers solutions in the areas of analogue and digital cable TV and radio, broadband Internet, telephone services and business applications. SWISS RE: Expects Narrower First-half Write-downs ------------------------------------------------- Swiss Re, which is hoping to return to profit this year after posting a net loss of CHF91 million in 2002, is expecting first-half write-downs to be narrower than the impairment charges carried into the current business year. AFX News Feed cited a spokesman for the world's largest reinsurer saying investment write-downs will impact first half results but at a lower level than SFR1.4 billion. There is no current need for a capital increase as well, and no acquisitions are planned. The spokesman further revealed that the reinsurer expects foreign exchange fluctuations to have a neutral impact on its results going forward, considering that premiums in each major currency are expected to balance out. In 2002, Swiss Re posted a net loss of CHF91 million due to declining equity markets. Impairment charges, primarily on equities, of CHF3.9 billion ultimately led to the loss, it said. Swiss Re, which operates from 70 offices in 30 countries, has three business groups: Property & Casualty, Life & Health and Financial Services. It has been in the reinsurance business since 1863. UBS AG: To Cut Hundreds of Investment-banking Jobs Worldwide ------------------------------------------------------------ Switzerland's largest bank, UBS, will cut 500 investment-banking jobs worldwide to adjust to the downturn in equity trading and merger activities. "When we were looking at market conditions we felt we had to adjust our headcount to the market," Christof Meier, a UBS spokesman, told swissinfo. Mr. Meier explained: "UBS reviews regularly its staffing levels and its cost structure." Without specifying the countries affected, UBS said the cuts will affect some 3% of the bank's 16,000 employees at its investment-banking unit. The move did not surprise analysts who had previously observed bigger job-cuts on UBS rivals. The bank, which reported a fall in investment banking revenues of 6% to CHF894 million (US$685 million) in the first quarter, warned in January it would cut some 800 positions in 2003. UBS plans, however, to continue adding staff in some of its well-performing operations, such as the fixed income segment. ZURICH FINANCIAL: Denies Plans to Layoff Thousands of IT Staff -------------------------------------------------------------- Switzerland-based insurer Zurich Financial denied a newspaper report that 3,000 jobs will be made redundant as part of the restructuring plan for its IT network, according to Dow Jones Newswires, citing spokeswoman Stella Zeco. Ms. Zeco said it is far too early to estimate potential job losses related to the new IT strategy, but in any case, the number will be significantly below this figure. She also told Dow Jones that the figure, which appeared in Swiss weekly business paper Cash, is "made up." Earlier in May, Zurich Financial announced plans to simplify its global IT network to increase efficiency. At the time, the company said that this "may result in a reduction in IT staff in certain areas." The company further revealed in the announcement that detailed numbers of the staff reductions can't be given yet because local managers need to make proposals for implementation first. CONTACT: ZURICH FINANCIAL Mythenquai 2 P.O. Box 8022 Zurich Switzerland Contact: Media and Public Relations Phone: +41 (0)1 625 21 00 Fax: +41 (0)1 625 26 41 Home Page: http://www.zurich.com =========================== U N I T E D K I N G D O M =========================== AVINGTRANS PLC: Cancels Share Premium Account; Issues EGM Notice ---------------------------------------------------------------- The Board of Avingtrans plc announced a proposal to cancel the share premium account of the company. The company also gave notice of an Extraordinary General Meeting of the Company, to be held at 11:00 a.m. at the Ramada Jarvis Hotel, Bostock Lane, Long Eaton, Nottinghamshire, NG10 5NL on July 17, 2003, at which a special resolution to approve the Proposal will be put to shareholders. A circular, outlining the background to the Proposal and giving formal notice for the Extraordinary General Meeting has on Thursday been sent to shareholders. Ken Baker, Chairman, commented: "The history of Avingtrans prior to the acquisition of the Jena Group has left the Company with a deficit of distributable reserves and hence unable to pay dividends. In the 2002 annual report, the Board announced a strategy to build Avingtrans over the next few years with the objectives of generating long-term earnings per share growth, cash generation and a sustainable dividend policy. The passing of this resolution will allow Avingtrans to propose dividends at an earlier date and as such is integral to our strategy." Background to the Proposal Section 263 of the Companies Act provides that a company can only make a distribution out of profits available for that purpose. The effect of this is that the Company is unable to pay any dividends whilst its profit and loss account shows a deficit. The Board therefore proposes to eliminate the accumulated deficit on the Company's profit and loss account and thereby bring forward the date on which the Company will be able to pay dividends to its shareholders. The last audited accounts of the Company for the year ended 31 May 2002 show an accumulated deficit of GBP515,000 on the profit and loss account of the Company (this figure has been rounded up to the nearest GBP1,000, the precise deficit being GBP514,372). This deficit has arisen as a result of losses made since 31st May 2000. The table set out below illustrates this fact and shows the amount of profit or loss made by the Company in the last three accounting periods and the resultant accumulated credit or deficit on the Company's profit and loss account at the end of those periods. These figures are taken from the Company's audited accounts for the periods in question: Period (Loss)/Profit Accumulated in Period (deficit)/credit GBP GBP Year ended 31 May 2002 (309,000) (515,000) Year ended 31 May 2001 (1,781,000) (206,000) Year ended 31 May 2000 88,000 1,575,000 The majority of the loss incurred in the year ended 31 May 2001 came about as a result of the disposal of the Company's operating subsidiaries: Frank Usher Limited; Frank Usher (Canada) Limited and GMB Contracts Limited. This loss was exacerbated by the fact that Frank Usher Limited subsequently went into receivership at a time when GBP503,000 was still owed to the Company which resulted in the Board taking the decision to write off this sum in full. In addition a smaller loss was also made in the period as a result of the fact that the Company's trading activities were discontinued following the sale of the Subsidiaries. In respect of the year ended 31 May 2002 the Company did not carry on any trading activities and the losses were incurred as a result of the operating and professional costs associated with running a listed public limited company. In this period the Company also incurred two exceptional costs which further increased its losses. One of these was in connection with the receivership of Frank Usher Limited mentioned above. The other related to the compensation paid to an executive director in respect of the termination of his contract of employment with the Company which was part of the arrangements for the acquisition by the Company of the Jena Group (being Jenaer Gewindetechnik GmbH, Jena Rotary Technology Limited, Jena-Tec Inc., and C&H Precision Finishers Limited). Cancellation of the share premium account The Company currently has GBP3,610,903 standing to the credit of the share premium account. This amount has arisen as a result of the issue of shares in the capital of the Company at a premium during the course of the Company's history. The Board propose that the Company should cancel the share premium account and thereby eliminate the accumulated deficit on the profit and loss account of the Company and to the extent that the cancellation creates a surplus above the amount needed to eliminate the deficit create distributable reserves which are available to the Company for all purposes for which distributable reserves could normally be used, in particular for the payment of dividends to shareholders. The cancellation of the share premium account in the manner proposed will require the approval of the High Court of Justice Chancery Division and will only be effective once this approval has been obtained and registered by the Registrar of Companies. When the Court is asked to approve a cancellation of the share premium account of a company it will often require that protection be given to the creditors of the company whose debts remain outstanding at the date of the cancellation. The Company will therefore put in to place such form of creditor protection as it may be advised. The circular to shareholders has been sent to the London Stock Exchange and is available for inspection, free of charge, at the Company's registered address, Precision House, Derby Road Industrial Estate, Derby Road, Sandiacre, Nottingham NG10 5HU. CONTACT: AVINGTRANS PLC Ken Baker, Steve Lawrence Phone: 01159 499020 CFA CAPITAL: Withdraws from Execution-only Broking Business ----------------------------------------------------------- Further to the announcement on May 6, 2003, CFA Capital Group Plc announces that its wholly owned subsidiary, CFA Securities Limited, has completed the transfer of the assets and goodwill of its execution-only broking business to Jarvis Investment Management Plc. In addition to an initial cash consideration of GBP100,000 received, a further sum of GBP125,000 is now due as consideration. A further earn-out consideration is payable and is determined by reference to dealing commissions received by Jarvis from the transferred business in the two years from Thursday, subject to certain minimum commissions. The completion of the withdrawal from the loss making execution-only broking business represents a step by the group to concentrate on investment banking business through its wholly owned subsidiary, City Financial Associates Limited (CFA). The sale proceeds will be used as additional working capital. CFA is now a member of the London Stock Exchange and will take over the corporate broking business currently carried out by CFA Securities Limited and excluded from the sale to Jarvis. CONTACT: Stephen Barclay Phone: 020 7090 7800 CORDIANT COMMUNICATIONS: Issues Statement on Share Suspension ------------------------------------------------------------- On June 16, 2003, Cordiant's (NYSE:CDA) (LSE:CRI) ordinary shares were suspended pending clarification of the Company's financial position. The Company had been subject to uncertainty with regard to its position with its lenders in the context of negotiations for a possible offer for the Company. Cordiant's ordinary shares recommenced trading with effect from 8 a.m. Thursday following resolution of the Company's position with regard to its lenders in the context of the proposed acquisition of Cordiant by WPP, announced Thursday. ***** The troubled group admitted last week it did not have enough working capital for the next 12 months, despite the success of its two recent disposals. CONTACT: CORDIANT College Hill Phone: +44 (0) 20 7457 2020 Alex Sandberg Adrian Duffield CORDIANT COMMUNICATIONS: WPP Reaches Deal to Acquire Group ---------------------------------------------------------- The boards of WPP and Cordiant announced the terms of a recommended proposed acquisition of Cordiant by means of a scheme of arrangement under section 425 of the Companies Act 1985. (a) WPP is to offer New WPP Shares in exchange for Cordiant's issued share capital. The Proposal values the entire issued share capital of Cordiant at approximately GBP10.0 million and each Cordiant Share at approximately 2.4 pence, based on the closing mid-market price of 491 pence per WPP Share on June 2003. (b) WPP has acquired the majority of Cordiant's Debt at par value from all but one of Cordiant's Former Lenders. No payment has been or will be made to these Former Lenders who have sold their debt to WPP in respect of their entitlement to make-whole and certain other payments, currently estimated to be approximately GBP20 million. The par value of the total Cordiant Debt, comprising both the Acquired Debt and the Remaining Debt, is approximately GBP256 million. (c) The Proposal is unanimously recommended by the board of Cordiant, the directors of which have irrevocably undertaken to vote in favor of the resolutions required to give effect to the Scheme in respect of their own beneficial holdings of 656,294 Cordiant Shares. (d) The board of WPP expects the transaction to be earnings enhancing in the first full financial year following completion of the Acquisition[*]. (e) The Scheme Document is expected to be posted to Cordiant Shareholders before the end of June 2003. The Cordiant shareholder meetings are expected to be held in late July 2003 and the Scheme to become effective in early August 2003. (f) WPP intends, subject to market conditions, to raise approximately GBP100 million through a placing of new WPP shares. (g) Cordiant will issue a circular to Cordiant Shareholders notifying its intention to cancel the listing of the Cordiant Shares with effect from 8.00 a.m. on July 16, 2003. (h) Goldman Sachs International and HSBC are advising WPP in connection with the Proposal. (i) UBS Investment Bank is advising Cordiant in connection with the Proposal. [*] This statement should not be interpreted as meaning that the earnings per share of WPP, following the Acquisition, will necessarily exceed those for the year ended December 31, 2002. Commenting on the Proposal Sir Martin Sorrell, Group Chief Executive of WPP, said: "The acquisition of Cordiant will make an important contribution to our long-term strategic goals -- particularly in marketing services and expansion in Asia. Given that our approach has been widely welcomed by Cordiant's clients, we also believe that a merger with WPP promises both stability and opportunity to Cordiant's clients and people." David Hearn, Chief Executive Officer of Cordiant, said: "The directors of Cordiant believe that Cordiant will have a sound future under the ownership of WPP. In the light of current circumstances, Cordiant believes that this Proposal provides the best outcome that is capable of being achieved for shareholders." This summary should be read in conjunction with the full text of the attached announcement. A conference call briefing for investment analysts will be held at 10.30 a.m. on June 19, 2003. Dial-in details are available from Buchanan Communications on 020 7466 5000. Goldman Sachs International is acting for WPP and no one else in connection with the Proposal and will not be responsible to anyone other than WPP for providing the protections afforded to clients of Goldman Sachs International or for providing advice in relation to the Proposal. HSBC is acting for WPP and no one else in connection with the Proposal and will not be responsible to anyone other than WPP for providing the protections afforded to clients of HSBC or for providing advice in relation to the Proposal. UBS Investment Bank is acting for Cordiant and no one else in connection with the Proposal and will not be responsible to anyone other than Cordiant for providing the protections afforded to clients of UBS Investment Bank or for providing advice in relation to the Proposal. To See Proposed Acquisition: http://bankrupt.com/misc/Proposed_Acquisition_of_Cordiant.htm CONTACT: CORDIANT Phone: 020 7262 4343 David Hearn Andy Boland UBS INVESTMENT BANK Phone: 020 7567 8000 Jonathan Rowley John Woolland COLLEGE HILL Phone: 020 7457 2020 Alex Sandberg Adrian Duffield WPP Phone: 020 7408 2204 Sir Martin Sorrell Paul Richardson Chris Sweetland GOLDMAN SACHS INTERNATIONAL Phone: 020 7774 1000 Richard Campbell-Breeden Stuart Cash HSBC Rupert Faure Walker Phone: 020 7992 2101 Nigel Medhurst Phone: 020 7992 2317 BUCHANAN COMMUNICATIONS Phone: 020 7466 5000 Richard Oldworth Mark Edwards CORUS GROUP: Completes Acquisition, Sale of 50% of Lusosider ------------------------------------------------------------ Further to its announcement of April 22, 2003, Corus Group plc has completed the purchase of Sollac Mediterranee's 50% share in Lusosider Projectos Siderugicos S.A. for EUR10.84 million (GBP7.59 million approx) in cash. Lusosider is a Portuguese 50/50 joint venture between Corus and Arcelor S.A. producing hot dipped galvanized steel sheet and electrolytic tinplate. Sollac is a subsidiary of Arcelor. Simultaneously, Corus has completed the sale of this 50% share to Banco Espirito Santo de Investimento, S.A. of Portugal for the same consideration. Espirito Santo Investment has also completed the sale of this 50% share to Companhia Siderurgica Nacional of Brazil. Corus will retain its current 50% holding. The completion of the purchase from Sollac follows confirmation by the European Commission that this meets Arcelor's undertaking to divest its stake in Lusosider. Both sales have received Portuguese regulatory approval. FINANCIAL OBJECTS: Cautious on ActiveBank Sales Prospects --------------------------------------------------------- At the time of the Company's AGM in early May 2003, we highlighted the difficult trading conditions as a result of the slow decision processes and pricing pressure which continued to affect our ActiveBank business. Since then, these conditions have significantly worsened and sales are proving even more difficult to close. Accordingly, the Board is adopting a cautious approach towards its ActiveBank sales prospects and associated services for the remainder of the year. The IBIS business continues to trade well and is performing in line with our expectations for the year. The Company's cash balance remains strong and of May 31, 2003 amounted to GBP7.9 million. The Board has also decided to rationalize the properties occupied within the Group by consolidating its London operations. This will result in making in this financial year a property provision of the order of GBP0.6 million against an onerous property lease. Against the background of difficult and uncertain trading conditions, the Board has been carrying out a strategic review of its business. The Board currently expects that this review will result in, among other matters, a further investment in ActiveBank and a further announcement will be made in due course. CONTACT: FINANCIAL OBJECTS David Carruthers, Chief Executive Officer Phone: 020 7836 3010 FINANCIAL DYNAMICS James Melville-Ross/Juliet Clarke Phone: 020 7831 3113 GLAXOSMITHKLINE PLC: Faces U.S. Lawsuits for Insulin Drug --------------------------------------------------------- GlaxoSmithKline is facing a product liability lawsuit in Texas, and Los Angeles in relation to its best-selling insulin drug Avandia, according to Reuters. Texas attorney Michael Schmidt filed the suit in behalf of 24 Avandia patients in Los Angeles Superior Court on Wednesday. He also filed a similar suit in Texas on behalf of eight patients who took the drug to control Type 2 diabetes. The patients claimed they were not warned of the serious side effects of Avandia, and had suffered serious complications, including heart and liver failure. In extreme cases, several patients underwent liver transplants after using the drug for just weeks, according to the allegations. "We believe that GlaxoSmithKline failed to adequately warn of serious cardiac and liver complications and we further believe that Glaxo was slow in reacting and responding appropriately with additional warnings once reports of these adverse events became available to them after the drug was put out on the market," Mr. Schmidt said, according to the report. But a spokeswoman for the pharmaceuticals company contend GlaxoSmithKline provided a warning of the drug's U.S. label saying the drug alone or in combination with other anti-diabetic agents can cause fluid retention that can exacerbate or lead to congestive heart failure. Avandia is of the same class of drugs, called glitazones, as Warner-Lambert's Rezulin, which was recalled in 2000 after it was linked to about a hundred cases of deaths and complications necessitating liver transplants. The drug accounts for US$1.36 billion (GBP809 million) in GlaxoSmithKline's revenues last year. GLAXOSMITHKLINE PLC: U.S. Drug Regulator Issues Warning on Paxil ---------------------------------------------------------------- Pharmaceuticals firm GlaxoSmithKline received another blow when the U.S. Food and Drug Administration (FDA) issued warnings against its antidepressant drug just nine days after British regulators issued similar precautions on the medicine. The FDA warned that patients under age 18 should not take Paxil-- Seroxat in Europe because of the suicidal impulses that the drug stimulates on individuals. The public has become concerned regarding the effects of the drug, which generated global sales of about US$3.4 billion last year, due to reported cases of adverse reactions from persons taking it. According to Reuters, new data from various clinical trials showed episodes of self-harm and potentially suicidal behavior were between 1.5 and 3.2 times higher in patients under 18 taking the drug than in those receiving a placebo. The drug is officially approved only for adults, but doctors have had discretion to prescribe Paxil/Seroxat to young people on a so-called "off-label" basis, the report said. Paxil also faces the prospect of generic competition in the United States within the next 18 months. GLAXOSMITHKLINE PLC: Responds to FDA's Pronouncement on Paxil ------------------------------------------------------------- The following is a response by GlaxoSmithKline to a U.S. Food and Drug Administration (FDA) talk paper recommending that Paxil (paroxetine hydrochloride) -- which is not approved for pediatric use -- should not be used in children and adolescents under 18 years for the treatment of major depressive disorder. The agency said it has not yet completed a review of the safety data, and has not definitively determined if there is an increased risk of suicidal behavior in pediatric patients with major depressive disorder. "The FDA is communicating with patients and physicians while they continue to review the data on Paxil in children and adolescents," said Dr. David Wheadon, GSK's senior vice president of regulatory affairs. "We have been working with the FDA as they review the data in what is an important and difficult to treat population." As the FDA has acknowledged, there is no evidence that Paxil is associated with an increased risk of suicidal thinking or behavior in adults. In the company's pediatric trials, which included more than 1,000 patients treated with Paxil, not a single person committed suicide. It is important that Paxil not be abruptly discontinued. Patients should not discontinue use of Paxil without first consulting their physicians. GlaxoSmithKline, one of the world's leading research-based pharmaceutical and healthcare companies, is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For company information, visit GlaxoSmithKline on the World Wide Web at http://www.gsk.com HAMLEYS PLC: Posts Details of Soldier Offer ------------------------------------------- In connection with the recommended cash offer by KPMG Corporate Finance on behalf of Soldier of 205 pence per Hamleys Share, the board of Soldier announces that the Offer Document and Form of Acceptance relating to the Offer were posted on Thursday to the Hamleys Shareholders and, for information only, to participants in the Hamleys Share Schemes. Terms defined in the announcement dated June 17, 2003 relating to the Offer have the same meaning in this announcement. To See Recommended Cash Offer: http://bankrupt.com/misc/Recommended_Cash_Offer.htm CONTACT: GAVIN ANDERSON & COMPANY (PR adviser to Baugur) Phone: 020 7554 1400 Neil Bennett Halldor Larusson SOLDIER Phone: 020 7479 7313 John Watkinson KPMG CORPORATE FINANCE (financial adviser to Soldier) Phone: 020 7311 1000 David McCorquodale Michael McDonagh HEYWOOD WILLIAMS: Asset Disposal in U.S. to Gross US$60 Million --------------------------------------------------------------- Heywood Williams Group PLC is pleased to announce that Heywood Williams USA, Inc. has entered into a conditional agreement for the sale of the Creation Group to Dura Automotive Systems, Inc. for a consideration of US$60.0 million (GBP35.7 million). The consideration comprises an initial US$57 million payable in cash on completion and a further consideration of up to US$3.0 million which would become payable if the Creation Group achieves certain revenue targets during the twelve months following completion. The disposal is conditional, inter alia, upon the approval of Heywood Williams' shareholders and upon clearance by the relevant U.S. anti-trust authorities. A document containing a notice convening an extraordinary general meeting of shareholders to approve the disposal is being dispatched to shareholders on Thursday. The Creation Group is a leading manufacturer of windows, doors and aluminum fabricated parts to the recreational vehicle market and to the automotive aftermarket for light truck caps in the U.S. It is headquartered in Elkhart, Indiana, operates ten manufacturing and warehouse facilities in Indiana, Ohio and Pennsylvania, and has around 1,100 employees. For the year ended 31 December 2002, the Creation Group generated operating profit of US$8.7 million (GBP5.4 million) on turnover of US$145.4 million (GBP96.9 million). EBITDA for the year ended 31 December 2002 was US$11.6 million (GBP7.7 million). The net assets of the Creation Group at 31 December 2002 were US$27.7 million (GBP17.3 million). The disposal of the Creation Group is consistent with Heywood Williams' strategy to focus the Group on organic development in the core UK windows, doors and conservatory market. The disposal will also strengthen Heywood Williams' balance sheet as the Group continues to focus on a turnaround driven by the restructuring program in the UK. Against the background of the difficult trading conditions for Heywood Williams referred to in the Group's AGM statement, the loss of earnings from the Creation Group following its disposal is expected to have a material impact on earnings per share in the short term. The net proceeds on completion from the disposal of the Creation Group will amount to approximately GBP32.2 million and will be used to reduce general corporate borrowings. Taking into account the strengthening of the Group's balance sheet that will result from the disposal, it is the Board's intention, in the absence of unforeseen circumstances, to maintain the full year dividend for the year ending December 31, 2003 at the previous year's level of 15 pence per share. Commenting on the proposed disposal of the Creation Group, Ian Stuart, Heywood Williams' Group Chief Executive, said: "This disposal sharpens the Group's focus on our core businesses. It strengthens our balance sheet and reduces the complexity of the Group. Selling Creation at an attractive price advances the Group's strategy and enhances its ability to deliver a successful turnaround. The Board unanimously recommends that shareholders vote in favor of this disposal." CONTACT: HEYWOOD WILLIAMS Ian Stuart, Group Chief Executive Phone: 01484 487 200 Laurence Campbell, Group Finance Director Financial Dynamics Jon Simmons Phone: 020 7831 3113 JASMIN PLC: Revises Accounting Method to Reflect Losses ------------------------------------------------------- Following the trading up date statement released on June 13, Jasmin wishes to further clarify certain matters. The shortfall in profitability, which was announced in the update statement, is expected to result in a loss for the period to March 31, 2003 in the order of GBP1 million. This is primarily the result of a revision to the methodology of the application of the Group's existing accounting policies. Under the revised methodology, a number of contracts on which the Company had anticipated recognizing both turnover and profits during the year were not at a sufficiently advanced stage of completion to enable expected levels of turnover and profits to be recognized. The effect of these changes will be to shift a significant amount of profit into periods after the accounting period ended March 31, 2003. It is not anticipated that these adjustments will have a material effect on the cash flow of the Group. The preliminary announcement for the year ended March 31, 2003 is expected to be made in July. LE MERIDIEN: U.S. Investment Firm Eyes Flagship London Hotels ------------------------------------------------------------- U.S. investment company Blackstone said two weeks ago it is interested in acquiring Le Meridien's flagship London hotels, Le Meridien Waldorf and Le Meridien Grosvenor House. Hotels of Le Meridien became subject to takeover speculations after the hotel operator was put into the hands of bankers upon breaching bank covenants. The 137-hotel group also fell below the value of its GBP1 billion debts in May this year. U.S. hotel firms Marriott International and Hilton, and French hotel group, Accor, are reportedly interested in a management takeover, according to Hospitality magazine. City analysts said the group could be broken up, taken over or subject to a combination of both. Marriott is said to have approached Royal Bank of Scotland, which owns the Waldorf and the Grosvenor House, about possibly taking over the leaseholds of both hotels. Guy Hands, who led the group's acquisition in 2001 is said to be considering injecting GBP10 million in the hotel chain. A consortium of banks and private investors, including Alchemy Partners, Nomura, Royal Bank of Scotland and Abbey National, bought Le Meridien for GBP1.9 billion in 2001. Co-chairman Jurgen Bartels personally invested GBP10 million in the business. Le Meridien said last month it was in discussions with banks and shareholders to revise its business plan. LING SYSTEMS: Joint Administrators Offer Business for Sale ---------------------------------------------------------- Inbsolvency Rules 1986 Ling Systems Limited Registered number: 966693 Nature of business: Manufacture of Air and Mechanical Conveying Systems Trade classification: 2922 - manufacture of lift & handling equipment Administration Order made: June 11, 2003 CONTACT: Simon Peter Bower and Micahel Jonathan CHRISTOPHER OLDHAM, Joint Administrators (office holder nos 8338 and 7817) of RSM Robson Rhodes, 186 City Road, London EC1V 2NU MYTRAVEL GROUP: Pursues Case that Just Might Stave Off Collapse --------------------------------------------------------------- MyTravel wants to claim more than EUR500 million in damages from the European Commission's blocking of its proposed merger with rival First Choice Holidays, reports say. The company said it had filed a legal suit with the European court of first instance in Luxembourg to claim EUR518 million in damages comprising loss of profits, loss of synergy savings and abortive bid costs. The Court of First Instance overturned three rulings by the Commission last year, including that of MyTravel, but this is the first time that a company is seeking damages for being blocked by the Commission. The case is also important to the group that is currently trying to find ways to avoid a collapse after making a GBP617 million- loss over the six months to March. The case, however, could be long, unless MyTravel is granted "an expedited procedure," according to The Guardian One London-based legal expert, who asked not to be named reportedly said: "If they can show that there is real urgency about this case because they are in dire financial straits, they might be able to get the court to make an early ruling." But legal experts say the proceedings could take at least three years, by which time the firm may have already gone bankrupt. PACKING SHOP: Administrative Receivers Sell Business ---------------------------------------------------- The Packing Shop Limited Registered number: 2137702 Trading name: The Packing Shop Nature of business: Fine Arts Carriage and Storage Trade classification: 6312, 5212 Date of appointment of Joint Administrative Receivers: June 6, 2003 Name of appointer: The Governor and Company of the Bank of Scotland CONTACT: Geoffrey Paul Rowley Michael Jonathan Christopher Oldham Joint Administrative Receivers (office holder nos 8919 and 7817) of RSM Robson Rhodes, 186 City Road, London EC1V 2NU PPL THERAPEUTICS: Strikes 'Fibrin' Deal with Instituto Grifols -------------------------------------------------------------- Following last week's announcement regarding PPL's restructuring and the Company's focus on Fibrin I, PPL Therapeutics plc (PPL) is pleased to announce that it has on Friday signed Heads of Agreement with Instituto Grifols S.A. (a company member of the holding Probitas Pharma) to manufacture Fibrin I using Grifols plasma derived fibrinogen. Under the agreement Grifols will scale up the Fibrin I manufacturing process to industrial scale and supply Fibrin I to PPL for clinical development and marketing. This agreement represents a critical step forward in PPL's development of Fibrin I as a surgical tissue sealant. Products in this class are used to seal tissue during surgery to prevent fluid or air leaks and in particular to stop bleeding. Fibrin I will offer a distinct competitive advantage in the rapidly growing market for tissue sealants as it is being developed as a liquid, which is ready for the surgeon to use from the refrigerator, in contrast to existing fibrin sealants which require significant preparation before use. Grifols is a plasma products manufacturing company dedicated to the research, development and production of therapeutic proteins from human plasma according to the highest standards of quality and safety. Grifols uses the latest technology for protein purification. Its modern facilities are organized according to Good Manufacturing Procedures (GMP) and have been certified under the FDA 'Establishment License' since 1995. Grifols has a fractionation capacity of over two million litres annually and is in the process of expansion, which will result in the company taking its place amongst the largest plasma derivative companies in the world. PPL and Grifols expect to announce the signing of the full agreement based on these non-binding Heads of Agreement in the near future. The commercial terms of the agreement remain confidential. Geoff Cook, PPL's CEO said: "We are delighted to be able to announce this agreement with one of the world's leading and most respected plasma fractionators. Grifols quality standards and regulatory record together with their technology capability mean that they are the best possible partner for us in this area. In bringing any product to market, which is based on a component of human plasma, the rigorous application of regulatory standards on quality and safety is critical. PPL, working together with Grifols on Fibrin I, will be able to put together a world class dossier for the regulatory authorities in Europe and the US." ***** Fibrin I is based on a fibrin monomer that is mixed with a neutralizing buffer at the site of surgical application by means of a dual chamber syringe, where it polymerizes to stop bleeding and seal tissue. It will be supplied as a liquid in pre-filled syringes and stored in the refrigerator, from where it is ready to be used. It is at least as effective as traditional fibrin sealants in sealing tissue and promoting haemostasis. Preclinical data suggests that the product may promote a more natural and rapid wound healing process than traditional fibrin sealants, which may reduce the potential for the formation of post surgical adhesions. An extensive patent portfolio provides comprehensive protection for the product in major markets until 2015 in the fields of haemostasis, tissue sealing, adhesion prevention and other biosurgery indications. Further information about PPL, its products and technologies can be found at: http://www.ppl-therapeutics.com Further information about Grifols, its products and technologies can be found at: http://www.grifols.com CONTACT: PPL THERAPEUTICS Geoff Cook, Chief Executive Officer Lindsay Dunsmuir, Chief Financial Officer Phone: 0131 440 4777 E-mail: ppl@hspr.co.uk Alistair Mackinnon-Musson Philip Dennis Hudson Sandler Phone: 020 7796 4133 STREAM GROUP: Cancels Plan to Delist from AIM --------------------------------------------- On May 29, 2003, shareholders were issued a notice to vote by way of Ordinary Resolution to authorize the Board of Directors to cancel the admission of the ordinary shares of the Company on the Alternative Investment Market of the London Stock Exchange. The executive directors have consulted with those shareholders who expressed concerns about the illiquidity of their holdings following a delisting and as a result, and with the agreement of a majority of shareholders, have decided to withdraw the Resolution and retain the Company's AIM listing for the foreseeable future. **** In a letter to shareholders, the company warned its market capitalization has dropped significantly in recent years and trading in its shares is minimal. CONTACT: STREAM GROUP PLC Phone: 020 7969 2723 Gordon Robson, Chairman Paul Tuson, Finance Director TEATHER & GREENWOOD Phone: 020 7426 9000 Jeff Keating/David Galan BIDDICKS Phone: 020 7448 1000 Katie Tzouliadis/Kathryn Burn ********* 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. 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 * * *