/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030901.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, September 1, 2003, Vol. 4, No. 172 Headlines C Z E C H R E P U B L I C UNION BANKA: Bankruptcy Accelerates Loan Maturities F I N L A N D BENEFON OYJ: Launches Personal Protection Product F R A N C E ALSTOM SA: Bailout Row Shows E.U.'s Disjointed Insolvency Laws G E R M A N Y DEUTSCHE TELEKOM: Rivals to Eat up 20% Market Share this Year DEUTSCHE TELEKOM: Fitch Changes Outlook from Stable to Positive DEUTSCHE TELEKOM: Takeover Plans in Poland Hit Legal Snag EM.TV & MERCHANDISING: First-half Net Loss Down 18% MOBILCOM AG: Debitel Mum Over Rumored Takeover Plans H U N G A R Y IKARUSBUS RT: Reaches Nothing in Talks with Employees N E T H E R L A N D S KONINKLIJKE AHOLD: Names Peter Wakkie to Executive Board UNITED PAN-EUROPE: Amends Articles of Association N O R W A Y PAN FISH: Reports Massive Losses Due to Ongoing Restructuring P O L A N D NETIA SA: Plans to Reduce Workforce by 300 POLSKA TELEFONIA: Moody's Reviews Ratings for Possible Upgrade S W E D E N SCANDINAVIAN AIRLINES: Postpones Launch of Basra Flights S W I T Z E R L A N D SWISS INTERNATIONAL: Confirms Offer from OneWorld, Star Alliance SWISS INTERNATIONAL: Launches New Lower European Fares U N I T E D K I N G D O M A. MEREDITH: Payment of Final Dividend September 17 AMP LIMITED: Cicutto Postpones Takeover Until Demerger AMP LIMITED: NAB Stake Acquisition Proof of Support for Demerger BRITISH AIRWAYS: Passengers Brand Compensation Offer a Fiasco BRITISH AIRWAYS: Enters Codeshare Deal with American Airlines BRITISH ENERGY: Not Complying with NYSE Listing Standard KERESFORTH THREE: High Court Sanctions Scheme of Arrangement LA METROPOLE: High Court OKs Scheme of Arrangement LONDON FORFAITING: Offer Declared Unconditional MARCONI CORPORATION: On Track to Meet Operational Targets ROYAL MAIL: Negotiations Suspended; Union Edges Toward Strike ROYAL MAIL: Postal Strike Could Hurt Small Businesses, Says BCC STODDARD INTERNATIONAL: Restructuring Progressing Well ********* =========================== C Z E C H R E P U B L I C =========================== UNION BANKA: Bankruptcy Accelerates Loan Maturities --------------------------------------------------- Some 5,000 Union Banka clients who took out loans before the bank filed for bankruptcy on May 29 are required to pay up at once, bank Spokesman Robert Korselt told Czech Happenings last week. According to Mr. Korselt, their loans became due on the day the bank declared bankruptcy. He says failure to pay the loan as soon as possible will subject the outstanding amount to punitive interest. The bank is now sending statements of accounts to clients. Loans will have to be paid to accounts opened at ING Bank, he adds. Czech Happenings says before its bankruptcy, Union Banka offered up to CZK200 million in commercial loans. It closed its branches after the state refused to provide majority stakeholder, Invesmart, with CZK1.7 billion in state aid. With its banking license revoked by the Czech National Bank, Union Banka was sent into liquidation and declared bankrupt soon after due to insolvency and high debts. The bankruptcy was proposed by 33 of Union Banka's creditors, including the state's deposit insurance fund. ============= F I N L A N D ============= BENEFON OYJ: Launches Personal Protection Product ------------------------------------------------- Benefon Oyj, the Finnish telematics company, has launched the new Benefon Seraph NT product for personal protection. The Benefon Seraph NT is ideally suited for professional worker protection and dispatching, where the control center can track the position of the field operator to facilitate accurate job dispatches or to organize timely assistance in case of emergency. In personal safety the Benefon Seraph NT is a versatile and easy to learn personal safety device for active seniors, small children and outdoor sportsmen. Benefon Seraph NT has a unique graphical-only user interface with two buttons for easy operation and a dedicated emergency button as well as a speakerphone functionality providing two-way communications. Main functions of the Benefon Seraph NT include emergency and assistance calls to configurable predefined numbers, GPS location information, advanced tracking capabilities and remote configuration. The unique fully graphical user language of Benefon Seraph NT makes it easy to use in multinational environment and with dyslexic user groups such as small children. Large, simple icons instructing the user benefit also workers in demanding field conditions or users with impaired vision like the elderly. The Benefon Seraph NT is available internationally through Benefon distributors and is developed for easy integration into safety services and control center systems. One of the first services to deploy the Benefon Seraph NT is in Finland the Safe Line Plus service by Oy Esperi Ab (Esperi), the care services provider wholly owned by the Finnish Red Cross. "There are already customers using our alarm centre services who are interested in purchasing a mobile safety device instead of a fixed one they have been using this far. I think easy to use Benefon Seraph NT will be an interesting option for our clients in the elder care and other care services", tells Pekka Ala-Jaakkola, Managing Director of Oy Esperi Ab. The Safe Line Plus service is developed by 4 Technology Solutions (4TS) and is available through select retailers of Esperi, 4TS and Benefon. Safe Line Plus service enables the user of Benefon Seraph NT to send alarm messages and make alarm calls that are then directly connected to Oy Esperi Ab's alarm centre via 4TS's tracking software. The Benefon Seraph NT is optionally available as part of the Benefon Life Line control center solution for safety and field management. For command and control applications with exceptional mobility requirements, the Benefon Seraph NT can be configured to use a Benefon Esc! as a pocket-sized mobile control center. "There is a great demand for a simple-to-use but powerful personal safety device for many private people as well as for professional use. The recent lone worker protection legislation requires companies and authorities to take a greater responsibility over their field workforces and the Benefon Seraph NT helps them to do exactly that", says Jouko Laine, Director for Mobile Telematics Terminals at Benefon. "An important aspect to our customers is that the Benefon Seraph NT can be used with the existing alarm center services around the world that are compatible with Benefon devices." About Benefon Benefon is the leader in GSM/GPS mobile telematics terminals and solutions. Headquartered in Salo, Finland, Benefon has designed and manufactured wireless terminals for GSM and NMT systems since 1988. Benefon Seraph NT official product page can be found on http://www.benefon.com/products/seraph CONTACT: BENEFON OYJ Jouko Laine, Director, Mobile Telematics Terminals Phone: + 358 2 77 400 E-mail: jouko.laine@benefon.fi =========== F R A N C E =========== ALSTOM SA: Rescue Row Shows E.U.'s Disjointed Insolvency Laws ------------------------------------------------------------- The French government's support of engineering giant Alstom highlights the failure of the E.U.'s members to keep pace with market developments in establishing a consistent regulatory framework, Fitch Ratings said in a statement. The developing uniformity in European financial markets is driven by professional arrangers and investors keen to establish capital market efficiency through common international best practice. Yet, as the furore over French insolvency laws illustrates, separate member states' legal and regulatory frameworks are not keeping pace with professional capital markets In the comment, entitled "Failing to Keep Pace: Wider Lessons for the E.U. from the Alstom Affair," Fitch notes the reluctance of Alstom's international lending syndicate to provide interim financial support to the company due to concerns over having to assume added legal and financial liabilities particular to French insolvency laws. The agency argues that this aspect of the Alstom affair underscores the fact that Europe remains a collection of separate and often conflicting regulatory regimes, which do not adequately reflect and support the single market environment in which most large European companies and capital providers currently operate. Fitch notes that France is not alone in Europe in having an insolvency regime that does not reflect or support current professional market practices. The U.K. and many continental regimes are having difficulty accommodating the trend towards international disintermediation in European capital markets and the increased layering of corporate capital structures with multiple instruments of varying rights and ranking. The agency notes that the financial markets in the United States contrast favorably with those in Europe, insofar as large and efficient capital markets are supported by a uniform regulatory and legal infrastructure. Specifically, the comment discusses the difference between Europe's multiple insolvency regimes and Chapter 11 of the U.S. Bankruptcy Code. Despite criticisms about its own deficiencies, the agency notes that Chapter 11 has at least established clear expectations concerning the rights of investors and creditors in each layer of the corporate capital structure. Financial market constituents can, therefore, approach solutions for companies in financial distress with greater confidence than exhibited in the Alstom affair. A copy of the full comment is available from the agency's Web site at http://www.fitchratings.com Contact: Ed Eyerman, London Phone: +44 (0)20 7862 4056 Janet Fisher, London Phone: +44 (0)20 7417 6334 ============= G E R M A N Y ============= DEUTSCHE TELEKOM: Rivals to Eat up 20% Market Share this Year ------------------------------------------------------------- Stiffer competition brought about by the liberalization of the local phone-call market will further erode the market share of erstwhile phone monopoly, Deutsche Telecom, a company official disclosed recently. Dow Jones Newswire recently quoted at a news conference Board Member Josef Brauner, who heads the fixed-line unit T-Com, saying the phone company will lose as much as 20% of its market share by year's end. In April, competitors successfully wrestled away 10% of the firm's share by introducing call-by-call services, which enable consumers to use an alternative operator simply by dialing a prefix. "The amount of market share lost by the end of the year will depend on whether rivals raise prices. Many competitors are selling local call services at below cost, to steal share away from Deutsche Telekom in a market it used to dominate," Dow Jones said citing Mr. Brauner. Told of Mr. Brauner's disclosure, Merck Finck analyst Theo Kitz said: "The figure [projection for lost market share] looks high. It's already significantly more than I'd expected." He had expected Deutsche Telekom to lose around 10% of the local call market this year. He told Dow Jones he expects recent price increases in Deutsche Telekom's monthly basic charge to offset the impact of heightened competition in the local arena. Already the effects of the liberalization are beginning to be felt. Fixed-line unit T-Com, which generates half of Deutsche Telekom's earnings, saw revenue from domestic local calls tumble 15% to EUR1.2 billion in the first half. DEUTSCHE TELEKOM: Fitch Changes Outlook from Stable to Positive --------------------------------------------------------------- Fitch Ratings, the international rating agency, has changed the Outlook on Deutsche Telekom AG's to Positive from Stable. At the same time, the agency has affirmed DT's Long-term rating at 'BBB+' and Short-term rating at 'F2'. This rating action reflects DT's improving credit profile, based on the group's positive free cash flow position before asset sales. It also reflects Fitch's expectation that the group will be fully funded going forward as it has covered its debt maturities till 2005 and is likely to be in a position to service debt with pre-dividend free cash flow thereafter. While management has announced its intention to reinstate dividend payment for FYE04 (cash payment in 2005) and beyond, and is expected to adopt an opportunistic approach to acquisitions, Fitch believes DT will maintain a strong investment grade profile. The agency notes management's intention to maintain a ratio of net debt to EBITDA in the 2x to 3x range. Fitch has also reviewed DT's pension and lease-adjusted leverage, and considers that current levels remain consistent with the assigned ratings. The Positive Outlook reflects Fitch's view that DT's business will be in a position to improve its leverage beyond its FYE03's targeted net debt to EBITDA ratio of 3x in FYE04 and thereafter. Going forward the agency expects DT not to exceed the 3x leverage multiple. Given the group's capacity to generate free cash flow from its operations, DT would be in a position to reduce net debt reasonably quickly. Fitch would expect any acquisition to contribute positively to group EBITDA almost immediately. The Positive Outlook is also based on Fitch's expectation that the group will adopt a prudent approach to dividends. The agency would review its rating stance if the group were to establish a distribution policy that is inconsistent with Fitch's expectations for DT's leverage. CONTACT: FITCH RATINGS Raymond Hill, London Phone: +44 (0)20 7417 4314 DEUTSCHE TELEKOM: Takeover Plans in Poland Hit Legal Snag --------------------------------------------------------- Deutsche Telekom AG's offer for the remaining 51% stake in Polska Telefonia Cyfrowa could hit a legal barrier, as owners of the Polish mobile telephone company are still locked in a legal battle. Online news agency AFX News, citing a report from the Financial Times Deutschland, said Elektrim SA has sued U.S.-French company Vivendi Universal for breaching the Polska Telefonia holding contract. Vivendi answered back with a countercharge, the paper said. Elektrim head Piotr Nurowski said: "From our point of view, the sale is blocked until the end of the arbitration process." However, a Vivendi spokesman told the French newspaper that "the takeover is not in danger." Deutsche Telekom announced a EUR1 billion cash offer Monday to buy out the remaining shares held in top Polish cell firm Polska Telefonia by telecom holding ET, owned by both Vivendi and Elektrim. The French have supported the bid, while Elektrim had shown hostility, saying it won't be pushed around by the telecom giants and will prevent a sale of its key telecom assets should it so choose. Interfax news agency quoted Elektrim CEO Piotr Nurowsky as saying: "Our first investment agreement is absolutely valid and thus any decision concerning a transaction of Polska Telefonia shares must be consulted with Elektrim as a shareholder of ET." Analysts suspect Elektrim is trying to force Deutsche Telekom to hike its offer. The German carrier, which recently revealed it had clawed its way out of the red in the second quarter, declined to comment on the legal dispute between Elektrim and Vivendi. It already owns 49% of Polska Telefonia, and its offer is valid until September 5. Polska Telefonia is Poland's largest mobile operator and is profitable. It has 5.6 million subscribers as of the end of June, and is expected to post EUR100 million in net profit this year. Poland is also one of the most populous states in Eastern Europe, and only has a mobile phone penetration rate of 40%, leaving plenty of space for growth. EM.TV & MERCHANDISING: First-half Net Loss Down 18% --------------------------------------------------- The media company EM.TV & Merchandising AG listed in the SDax, made great progress in its restructuring process and strategic reorientation in the second quarter 2003. Earnings improved, yet still reflect the weak market environment and the high ongoing write-offs and interest charges. The highlights in the restructuring process in the second quarter were: (a) Sale of The Jim Henson Company to the children of the company founder Jim Henson and, as a result, the securing of the group's liquidity well into 2004; (b) Sale of the 16.4 percent stake in Constantin Film AG to Highlight Communications AG; (c) Approval of the US banks (JP Morgan Chase Bank and Lehman Brothers) to sell the remaining interest in the Formula One Group to Bayerische Landesbank, thus ending the legal dispute with the Formula One banks. At the same time, it was possible to expand the second business unit, sports marketing, in the reporting period through: (a) The acquisition of an interest of 40.7 percent in the TV station DSF (still subject to the approval of the BLM) and 40.7 percent in the online platform Sport1 via an intermediate company in which EM.TV holds a majority interest; (b) The acquisition of a 100 percent shareholding in PLAZAMEDIA, the leading German TV-production company for sports. The profit and loss statement and the balance sheet of the EM.TV Group for the first half of 2003 still include The Jim Henson Company the sale of which was closed in the third quarter. The new sports activities are already shown in the balance sheet as of June 30, 2003. On the other hand, the profit and loss statement only includes PLAZAMEDIA for a proportionate period of time from June 1 to June 30, but not yet DSF and Sport1. The operating business of the EM.TV Group in the first six months of 2003 developed in an unchanged adverse market environment as expected. Group sales increased from EUR 94.3 million by 10.9 percent to EUR 104.6 million. In the second quarter sales amounted to EUR 37.1 million (previous year's period: EUR 52.5 million). In the first quarter a remaining receivable to Jim Henson from Sesame Workshop had been prepaid by a lump sum resulting in an increase in sales. As in the previous quarters, the performance of the operating results was affected by various special effects. Among ordinary items is the expense for the convertible bond of approximately EUR 11 million per quarter as well as the ordinary amortization of the Tele Munchen Gruppe amounting to about EUR 6 million per quarter. Furthermore, extraordinary effects amounting to EUR 11.2 million are included in other operating expenses of the second quarter. In particular, the entire costs of EUR 7.9 million for the successful sale of The Jim Henson Company that was closed in the third quarter were already posted in the books. Additional expenses accrued, for example, through the acquisition of DSF. Without these extraordinary effects, the group would have achieved positive earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 4.3 million in the second quarter in accordance with IFRS accounting standards. The EBITDA reported for the quarter amounted to minus EUR 6.9 million (Q2 2002: EUR 7.8 million). For the first half year of 2003, the group reports an EBITDA of minus EUR 11.3 million (same period in the previous year: EUR 8.2 million). Net loss after minority interests, however, was reduced - due to a significantly improved financial result - from EUR 70.2 million by 18.2 percent to EUR 57.4 million. Net loss after minority interests decreased in the second quarter from EUR 45.7 million by 39.8 percent to EUR 27.5 million. Cash flow increases to EUR 53 million Cash flow for the group from operating activities increased significantly in the first half year from EUR 2.0 million to EUR 52.6 million. After accounting for the flow of funds arising from investments and financing, cash flow for the period amounted to EUR 37.7 million for the first six months (first half of the previous year: EUR 3.0 million). Liquid funds of the group amounted to EUR 83.0 million as of June 30, 2003 and thus fell EUR 7.6 million under the level at the end of December 2002. The cash inflow arising from the sale of The Jim Henson Company is not yet included in this amount. Group's equity totaled EUR 64.4 million (December 31, 2002: EUR 129.9 million). Equity of the parent company (according to the provisions of the German Commercial Code - HGB) amounted to EUR 199.8 million (December 31, 2002: EUR 237.5 million) or 27.7 percent of the balance sheet, thus still exceeding the subscribed capital of EUR 146.1 million significantly. Unchanged outlook For the entire year of 2003, the Management Board expects group sales of EUR 250 million, thus at the level of the previous year. The sales contribution generated by the new sports activities that will flow into the profit and loss statement completely as of the third quarter, will compensate roughly for the sales decrease due to the sale of The Jim Henson Company (deconsolidation as of July 31). Based on the high interest charges, write-downs and other operating expenses also incurred this year, the group will once again show a substantial net loss. Werner E. Klatten, Chairman of the Management Board: "The new EM.TV became reality in the first half of 2003. We have concluded the group's restructuring process to a large extent and established a strong second business unit. The planned acquisition of the remaining 50 percent of the Junior.TV joint-venture and the restructuring of the convertible bond, due in 2005 remain the most important final restructuring tasks." To view financials: http://bankrupt.com/misc/EMTV_Important_financial_ratios.pdf CONTACT: EM.TV & MERCHANDISING AG Frank Elsner Kommunikation fur Phone: +49 (0)5404-919 20 Sabine Lais Phone: +49 (0)89-99 500 461 MOBILCOM AG: Debitel Mum Over Rumored Takeover Plans ---------------------------------------------------- A Debitel AG spokesman declined to comment on a report in the Financial Times Deutschland that it is in concrete talks to buy a stake of about 70% in MobilCom AG. According to FT Deutschland, MobilCom Chairman Thorsten Grenz expects to sign a deal with Debitel in October. Industry sources, however, believe the timetable is unlikely since negotiations have not yet reached the stage where interested parties take a closer look at MobilCom and its Internet unit, Freenet. Debitel is the German unit of Swisscom AG. It currently holds a 73% stake in MobilCom's Freenet. MobilCom was saved from bankruptcy last fall via a US$389 million bailout from Gerhard Schroder, the German chancellor. It was able to turn in a profit of EUR3.6 million (US$4 million) in the second quarter. The company posted a EUR172.8 million (US$188 million) loss in the same period last year. ============= H U N G A R Y ============= IKARUSBUS RT: Reaches Nothing in Talks with Employees ----------------------------------------------------- Talks between management and employees of troubled bus maker Ikarusbus Rt. have been concluded without reaching any definitive agreement. Ikarusbus previously announced it would close its manufacturing plant in Szekesfehervar due to lack of domestic demand and declining Russian market. According to the Budapest Business Journal, workers' representatives have worked out a bunch of proposals, consisting of 13 points. One major point cited is a pledge from the management that eligible employees would allow pension with reduced age limit. Another is that housing credits taken up from the company are to be paid back incrementally. Istvan Vass and Janosne Toch, representatives of unions and employees, told the news agency layoffs are scheduled to begin in October. Negotiations between management and employees will continue on the first day of September. TCR-Europe recently reported Ikarusbus minority owner, Ikarus Rt, might be able to rescue the Szekesfehervar-base bus manufacturer. Ikarus Rt President Gabor Szeles has offered to buy the shares of Ikarusbus from the majority owner Irisbus. ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: Names Peter Wakkie to Executive Board -------------------------------------------------------- Ahold's Supervisory Board announced Thursday its proposal to nominate Peter Wakkie as Chief Corporate Governance Counsel and member of the Corporate Executive Board. He will assume his position at Ahold starting October 15, 2003. Mr. Wakkie will supervise the legal discipline within Ahold worldwide. He will supervise the legal aspects of organizational transactions and the preparations of legal reports and statements. He will also play a leading role in the process of improving corporate governance throughout the company. In this he will be responsible for reviewing internal governance, policies and practices for legal compliance as well as conformance to ethical and social standards. Additionally, he will be tasked with developing and implementing initiatives on corporate social responsibility. Moreover, he will be responsible for all operating policies together with the other members of the Corporate Executive Board. Mr. Wakkie, 55, joined leading Dutch legal firm De Brauw Blackstone Westbroek in 1972, specializing in mergers and acquisitions and corporate litigation. He became partner at the firm in 1979 and was managing partner from 1997 until 2001. Between 1978 and 1982 he served as resident partner of De Brauw Blackstone Westbroek in New York. Acting CEO Anders Moberg commented on the nomination: "The board is very pleased that Peter, as a leading expert in the Netherlands on corporate governance, has decided to join Ahold. He has a long-standing reputation as a talented negotiator and highly competent legal corporate advisor both within the legal profession and in the retail industry. We are confident that Peter will make an important contribution toward ensuring solid corporate governance throughout the organization." The Ahold Corporate Executive Board will comprise the following members once Mr. Wakkie joins the company: Anders Moberg, Acting President & CEO; Hannu Ryopponen, Acting CFO; Dudley Eustace, interim CFO; Bill Grize, Jan Andreae, Theo de Raad and Peter Wakkie. Chairman Jaap de Keijzer of De Brauw Blackstone Westbroek commented that he respects Mr. Wakkie's decision to join Ahold. "It is a wonderful challenge for Peter and an excellent choice by Ahold. He is not only a gifted lawyer but a charming and honest man with his heart in the right place. Peter worked at De Brauw for 31 years, 4 of which he served as chairman. He has contributed a lot to the company and his colleagues will miss him." UNITED PAN-EUROPE: Amends Articles of Association ------------------------------------------------- United Pan-Europe Communications N.V. (EURONEXT Amsterdam: UPC) announced Thursday at the Extraordinary General Meeting held on the same day that shareholders had voted in favor of the proposed amendment to the company's articles of association to allow holders of the company's ordinary shares C to convert one or more of their ordinary shares C into ordinary shares A on a one-for-one basis. The purpose of the conversion is to facilitate the delisting of the ordinary shares A from the Euronext Amsterdam Stock Exchange. It is expected that, as previously highlighted, the last day of trading for UPC ordinary shares A on the AEX (ticker UPC) will be September 4, 2003. United Pan-Europe Communications N.V. is one of the leading broadband communications and entertainment companies in Europe. Through its broadband networks, UPC provides television, Internet access, telephony and programming services. UPC's shares are traded on Euronext Amsterdam Exchange (UPC) and in the United States on the Over The Counter Bulletin Board (UPCOY). UPC is majority owned by UnitedGlobalCom, Inc. (NASDAQ: UCOMA). CONTACT: Claire Appleby UPC Investor Relations Phone: + 44 (0) 207 838 2004 Email: ir@upccorp.com =========== N O R W A Y =========== PAN FISH: Reports Massive Losses Due to Ongoing Restructuring ------------------------------------------------------------- The results for the 2nd quarter (Q2) for Pan Fish (OSE: PAN) are significantly affected by the company's ongoing restructuring phase. Despite this, the company has turned the negative operational trend and achieved an operating profit before depreciation (EBITDA) of NOK 55.5 million in the second quarter, compared with a loss of NOK 64 million for the corresponding period last year. Total write-downs and provisions for Q2 are NOK 1,480.8 million, principally related to licenses, goodwill, stock and Pan Pelagic. The company consequently had a negative equity of NOK 471.4 million as of June 30, 2003. (a) Pan Fish continue operations. Based on the discussions between the company and its banks, the Board of Directors finds that the company has access to sufficient cash reserves in order to achieve continued operations and the planned restructuring of the company.- Refinancing established in the autumn. The Board of Directors is in negotiations with the banks for refinancing of Pan Fish. It is most likely that debt will be converted to a satisfactory equity level, but the conversion price or level still remains to be settled. "Pan Fish is currently facing a critical situation, but we are convinced that the company will emerge much stronger from this phase also. We can see that the measures implemented are producing positive results for operations, and this makes me optimistic on behalf of the company. However, continued operations, require a satisfactory refinancing for Pan Fish. We are in close dialogue with our owners and banks who are taking a conscientious and constructive approach to this difficult process and are confident that refinancing will be established during the autumn," explains CEO Atle Eide. Operations and outlook Aquaculture: The operating loss before special items for aquaculture activities totaled NOK 20.4 million in the second quarter compared with NOK 90.6 million for the same period last year. During the second quarter, 26,031 tonnes round weight of salmon were harvested compared with 24,473 tonnes last year. Over this period, a number of initiatives have been introduced which will reduce the company's expenses over time. The persistently low salmon prices have resulted in full production costs for Pan Fish exceeding market price for salmon in Q2. Based on this fact and after an evaluation of the company's stock within the individual areas of activity, total write-downs of NOK 166 million have been implemented for the quarter. Processing: The operating profit before special items for processing activities totaled NOK 1.8 million compared with a loss of NOK 16.9 million last year. Processing had a positive growth during the 2nd quarter, with regards both volume and profit. Certain product groups are still subject to pressure on prices, but this is compensated by improved operations and lower raw material costs. Norway and France have shown a positive growth during the first six months of 2003, and in the 2nd quarter, Denmark has managed to turn around the negative trend from the 1st quarter. Prospects: "In the short-term, we need to reduce production to re-establish market balance. Pan Fish is playing an active role in this move,` says CEO Atle Eide.Pan Fish will also focus on achieving a further reduction of operating expenses in order to strengthen the company's relative competitive standing, and will also work towards establishing satisfactory refinancing. "Once refinancing has been established, we are positive towards the long-term development. We are therefore maintaining our target to become one of the companies producing at the lowest cost in all our regions," informs Mr. Atle Eide. CONTACT: PAN FISH ASA Atle Eide, Chief Executive Officer Phone: +47 911 52 977 Homepage: http://www.panfish.no =========== P O L A N D =========== NETIA SA: Plans to Reduce Workforce by 300 ------------------------------------------ Netia S.A. (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, announced Thursday it informed the Local Employment Office in Warsaw of its plan to reduce headcount by up to 300 employees countrywide by March 31, 2004. The planned headcount reduction is a part of the ongoing process of Netia's reorganization, focused on simplifying its organizational structure and internal processes and aimed at a continuous effort to increase Netia's competitiveness through, among others, cost optimization. CONTACT: NETIA S.A. Anna Kuchnio (IR) Phone: +48-22-330-2061 POLSKA TELEFONIA: Moody's Reviews Ratings for Possible Upgrade -------------------------------------------------------------- The cash offer by major shareholder, Deutsche Telekom, for 100% of Polska Telefonia Cyfrowa Sp. z.o.o. (PTC) has prompted Moody's to review for possible upgrade its ratings on the firm and its subsidiaries. Moody's currently gives the company a senior implied rating of Ba1 and an issuer rating of Ba3. Its senior subordinated bond rating is Ba3. Deutsche Telekom, which currently owns 49% of PTC through its mobile division T-Mobile and subsidiaries, wants to consolidate its holdings by buying the other 51% stake held by Elektrim and Vivendi through Elektrim Telekomunikacja. The transaction is still subject to certain conditions, including among others, corporate and regulatory approvals as well as a final share purchase agreement between the parties, Moody's said. The review, according to the rating agency, will take into consideration PTC's strategic position within Deutsche Telekom, its funding strategy going forward and the position of PTC's debt within the overall capital structure of Deutsche Telecom. Moody's notes that with respect to PTC's senior implied rating, PTC's rating is currently only one notch below DT's senior unsecured rating. Based in Warsaw, Poland, Polska Telefonia Cyfrowa provides nationwide dual band GSM 900 and 1800 mobile services. The company is also a UMTS license holder in Poland. At year-end 2002, PTC reported revenues and EBITDA of PLN4,930 million and PLN2,061 million respectively. =========== S W E D E N =========== SCANDINAVIAN AIRLINES: Postpones Launch of Basra Flights -------------------------------------------------------- Scandinavian airline, SAS, which recently said it expects cash flow to be positive in the second half of the year, has decided to postpone launch of its service to Basra, Iraq, originally scheduled last Friday. According to Kiplinger.com, citing travel business online news provider boarding.no, SAS spokesperson Siv Meisingseth said the airline recently sent a team to Basra to evaluate security arrangements. The spokesperson added the new launch date would be announced after the team's report had been carefully evaluated. SAS had planned to launch twice-weekly flights from Copenhagen in Denmark to Basra, Iraq. SAS is one of the three foreign carriers authorized by the U.S.-led Iraqi administration to fly to Iraq, each being allowed one operation a week. Lot Polish Airlines and British Airways have also cancelled their flights due to security concerns in the country following the bombing of the U.N.'s mission in Baghdad and continuing attacks on coalition soldiers. ===================== S W I T Z E R L A N D ===================== SWISS INTERNATIONAL: Confirms Offer from OneWorld, Star Alliance ---------------------------------------------------------------- Swiss International Airlines is reportedly mulling over two alliance offers, as the ailing carrier battles to find its niche in the overcrowded airline industry. Citing chief commercial officer Bill Meaney, AFX News said Swiss has received and is examining at least two alliance offers. "The air alliance offers came sooner than expected... the board is evaluating at least two options," he said. Mr. Meaney added Swiss needs to be part of an alliance within a three-year period. He made the comment at the end of a news conference presenting the airline's new European strategy. For months media has been speculating on the future of the ailing carrier. It is currently in talks with British Airways-led OneWorld alliance and with Lufthansa AG, which is part of the Star Alliance. Swiss, which was formed in April 2002 from the remains of failed Swissair and the regional carrier Crossair with a CHF2.7 billion private-public cash drive, is going through its biggest restructuring ever. It is slashing its fleet and workforce by about a third and cutting route network by over a quarter. SWISS INTERNATIONAL: Launches New Lower European Fares ------------------------------------------------------ Swiss International Air Lines introduces its new "SWISS in Europe" fare system today, offering attractive low fares to all 41 of its European destinations. The permanently low fares are available in both Business Class and Economy Class. SWISS customers will find the most attractive fares of all online at http://www.swiss.com. SWISS is the first traditional air carrier to offer both a premium Business Class and an attractively priced Economy Class. The SWISS long-haul product remains unchanged. SWISS is launching its new European product in response to its customers' changed and changing needs. Attractive prices, good connections to Europe's key centers and their own choice of inflight service are what customers today seem to want most of all. A new fare system Under SWISS' new fare system, the level of the fare will be determined by demand. So customers who book early or are flexible in terms of their day or time of travel will tend to be offered a lower fare. These attractive fares will continue to be available only as round-trip tickets; but it will now be possible to book the outward and return journeys in different classes of travel, and thus at different fares. The new system also features a new user-friendly booking machine which enables customers to put their air trip together on the SWISS website and thereby benefit from the best web fares available. The new machine allows customers to search for flights by fare, date, departure time or class of travel - whichever they prefer. Needless to say, customers can continue to obtain their SWISS tickets from travel agencies, SWISS call centers or SWISS Air Travel Offices, too. Inflight service SWISS will continue to offer a high-quality inflight service on its European flights. Business Class will retain its popular premium product, including access to lounges before departure or when transferring between flights, a wide range of newspapers and complimentary food and drink on board. Economy Class passengers, meanwhile, can now decide for themselves what kind of inflight service they prefer: they will be able to purchase from a seasonally-adjusted range of small and large meals, along with a choice of beverages. On shorter flights, passengers can buy their inflight fare from snack bars in the gate area before they embark. During the introductory phase of the new service concept, food and beverages in Swiss Economy will be offered to customers free of charge until the end of September 2003. Further benefits In addition to the attractive new fares, passengers using the new SWISS in Europe product will continue to enjoy all the benefits of a true network carrier: coordinated timetables, centrally-located airports, several frequencies a day on popular routes and the opportunity to earn frequent flyer miles. CONTACT: SWISS Corporate Communications P.O. Box, CH-4002 Basel Phone: +41 848 773 773 Fax: +41 61 582 3554 E-mail: communications@swiss.com Homepage: http://www.swiss.com =========================== U N I T E D K I N G D O M =========================== A. MEREDITH: Payment of Final Dividend September 17 --------------------------------------------------- A. Meredith Jones & Company Limited (In Liquidation); trading from offices in Liverpool, England, Tashkent in Uzbekistan, Ashgabad in Turkmenistan, Ilychevsk in the Ukraine, China and Ivanovo and Moscow, both in Russia. I hereby give notice a first and final dividend to the unsecured creditors is intended to be declared in the above matter. Anyone who believes that they have a claim should contact me with proof of their claim. If you do not prove your debt and submit your claim to me at the address shown below by September 17, 2003 you will be excluded from this dividend, which is to be declared within four months from the last date for proving. Simon James Michaels, Joint Liquidator CONTACT: Simon James Michaels BDO Stoy Hayward 8 Baker Street, London W1U 3LL, England Phone: +44 (0)20 7893 2248 Fax: +44 (0)20 7935 3944 AMP LIMITED: Cicutto Postpones Takeover Until Demerger ------------------------------------------------------ The National Australia Bank (NAB), who has identified itself as the mystery buyer that recently launched a raid on AMP Limited's shares, is ruling out any takeover of the ailing insurer while problems in its U.K. operations remain unresolved. Press reports say NAB, Australia's largest bank and owner of the Clydesdale and Yorkshire networks, is waiting for AMP to dispose of its troubled British life operations, Pearl NPI, London Life and fund manager, Henderson. According to The Guardian, NAB CEO Frank Cicutto would wait for AMP to publish documents detailing its plan to split itself into separate U.K.-listed and Australian-listed companies before proceeding further. "The National has no interest in acquiring AMP while AMP owns its U.K. Business," he said. Earlier, Mr. Cicutto asked brokers Citigroup and JBWere to scour the market to fill an institutional bookbuild for up to 174 million shares. The move, however, suffered an embarrassing setback as the brokers were able to acquire only 34.3 million, forcing the bank to admit it had broken cover without taking control of the situation. Mr. Cicutto, who has been savaged for the flawed raid, remains determined to take AMP in Australia. He described the non-lethal 5.4% stake it had amassed in the insurer as a "strategic investment." Old Mutual, the Anglo-South African insurer, is believed to have expressed an interest in the U.K. business even before the current assault on AMP by NAB. AMP LIMITED: NAB Stake Acquisition Proof of Support for Demerger ---------------------------------------------------------------- AMP Limited Chief Executive Officer Andrew Mohl responded to the announcement that National Australia Bank had acquired 34.3 million AMP shares at AU$6.00 per share, taking its relevant interest to 5.4%. "We believe the purchase of a strategic investment is an endorsement of the demerger strategy that the Board and management is pursuing," Mr. Mohl said. He said that the demerger is progressing to plan and AMP would continue to follow its tight implementation timetable. He said shareholders should receive substantial information about the demerger in the coming weeks. By mid-October, a detailed Explanatory Memorandum outlining the demerger is expected to be available for AMP's almost one million shareholders. "AMP believes it is important that shareholders carefully consider the demerger documentation to ensure they are fully informed about the Board and management's proposals to enhance the value of AMP," Mr. Mohl said. "The demerger will create two regionally focused companies with clear strategic objectives, which will appeal to a broader group of investors. If the demerger is approved, the underlying value of AMP is more likely to be reflected in the share prices of the two new entities." Mr. Mohl acknowledged National Australia Bank's comments on AMP's UK operations. "This confirms to us the enormous strategic value of AMP's Australasian franchise," he said. "AMP's Australian Financial Services business is the jewel in the crown and its recent results show just how resilient and high performing this business is. There is no doubt that AMP' s Australasian franchise has unique value." AMP's interim results last week reported embedded value of GBP1.34 billion (AU$3.3 billion) in its U.K. Life businesses at 30 June 2003, following its writedowns and risk reduction initiatives. "Our U.K. business is now operating on a much sounder footing. It is well provisioned and is being tightly managed within a much lower risk environment," Mr. Mohl said. CONTACT: AMP LIMITED Level 24, 33 Alfred Street Sydney NSW 2000 Australia ABN 49 079 354 519 Mark O'Brien, Investor inquiries Phone: +61 2 9257 7053 BRITISH AIRWAYS: Passengers Brand Compensation Offer a Fiasco ------------------------------------------------------------- Angry passengers seeking compensation for the debilitating strike at Heathrow, which rendered hundreds of clients stranded for days, has branded British Airway's offer a fiasco and accused the company of incompetence over its handling of the offer. According to the Evening Standard, despite the company's pledge that everyone caught up in the delays at Heathrow would be compensated, only a fraction of the 70,000 economy class passengers affected have received anything. Specifically, just 3,000 economy class passengers have received compensation in the form of GBP80 British Airways discount vouchers rather than cash. British Airways said that all 70,000 economy passengers could not be tracked down because they booked through travel agents and their addresses were not available. Hence, it is up to the passengers to contact them to claim compensation. Passengers can call the airline on 0845 600 8154. However, for the 17,000 Executive Club Card holders who were affected, British Airways has contacted them offering vouchers, free air miles and refunds for any expenses incurred. Hannah Peckham, 22, whose break to Egypt with boyfriend Paul Weedon, 27, was delayed by 24 hours, told the Evening Standard: "I think BA has behaved appallingly. What we had to put up with at the airport was horrendous. We spent hours on a dirty floor and lost a day of our first proper holiday together. We've applied for compensation from BA but haven't heard a thing. It's ridiculous." "We are being treated as second-class citizens. BA's attitude is just insulting," Patricia Warrender said. "We eventually had to pay GBP640 to get the whole family home on the train and were assured by a BA help line that we would be refunded. However, when we did apply for the refund we were told 'no way'. We've applied for the vouchers but got nothing so far. In any case, these vouchers are only valid on BA flights and we won't be traveling with them again in the near future." Iain Pringle, who was hit by the strike while returning from a break in Australia, said: "It's the lack of communication that annoys me. I've not even had a letter of acknowledgement." A British Airways spokesman said: "We have contacted everyone who we had details for to tell them about the deal. Another 15,000 are still being processed and will receive money soon." Consumer groups, however, said the airline should have pulled out all the stops to make sure customers knew about the GBP80 voucher on offer. Holidaywatch head Brenda Wall said: "BA should have been handing out forms for people to claim compensation during the strike. Even if BA did not have the details of all of the passengers caught up in the strikes it should have asked travel agents with this information to contact passengers on its behalf." Last month hundreds of British Airways workers at Heathrow airport walked out in opposition to the introduction of a new electronic swipe card clocking-in system that they feared would lead to dramatic changes in working practices, including the possibility of employees being sent home at slack periods and recalled at busier times. The walkouts affected flights all week. BRITISH AIRWAYS: Enters Codeshare Deal with American Airlines ------------------------------------------------------------- American Airlines and British Airways will begin a long-awaited worldwide codeshare on September 17, allowing customers to fly to hundreds of destinations in the United States, Europe, Africa, the Middle East, Asia, Mexico, the Caribbean and Latin America. The arrangement allows American Airlines customers to book codeshare flights on British Airways beyond London Heathrow to destinations in Europe, Asia, Africa and the Middle East. British Airways, in turn, will place its code on American and American Eagle flights beyond American's six United States gateways at Dallas-Fort Worth, New York Kennedy, Boston, Chicago O'Hare, Miami and Los Angeles to cities in the United States, Canada, Mexico, the Caribbean and Latin America. "This codeshare creates new opportunities for American's customers to travel around the world," said Henry Joyner, senior vice president - Planning for American. The American-British Airways codeshare offers customers easier booking opportunities, improved transfer and check-in processes, and the ability to earn and redeem frequent flyer miles. The codeshare will be phased in from September 17 through October 26. American customers can begin booking on August 31 for September 17 flights beyond Heathrow to Rome and Milan in Italy; Copenhagen, Denmark; Amsterdam, the Netherlands; Stockholm; Sweden; Munich, Germany; Brussels, Belgium; Abu Dhabi and Dubai, United Arab Emirates; Bahrain, Bahrain; and Accra, Ghana (Accra codeshare flights begin September 21). On September 7, tickets will go on sale for American Airlines codeshare service beyond Heathrow to Muscat, Oman, and Doha, Qatar. On August 31, British Airways customers will be able to book codeshare flights on American commencing September 17 from Dallas/Fort Worth International Airport to New Orleans and San Antonio; from Chicago O'Hare to Nashville, Cincinnati, Indianapolis, Minneapolis/St. Paul, New Orleans, San Antonio and Pittsburgh and from Miami to Panama City, Panama. Once this phase-in is complete in October, American Airlines customers will be able to book codeshare flights to Paris; Cape Town and Johannesburg in South Africa; Berlin, Munich, Duesseldorf, Frankfurt, Hamburg, Cologne and Stuttgart in Germany; Edinburgh and Glasgow, Scotland; Manchester, England; Helsinki, Finland; Lisbon, Portugal; Nice, France; Oslo, Norway; Prague, Czech Republic; Vienna, Austria; and Warsaw, Poland. Additional cities will be added beginning January 2004. In time, American will offer codeshare service on British Airways to up to 110 worldwide destinations. British Airways will offer codeshare service on American to up to 187 destinations in the United States, Mexico, Caribbean and Latin America. Although American and British Airways will not codeshare on each other's North Atlantic flights to London, American will codeshare on British Airways ' daily nonstop between New York JFK and Manchester. British Airways will do the same on American's flights from Chicago O'Hare to Manchester and Glasgow, Scotland. American Airlines and British Airways are founding members of OneWorld, the world's most international global alliance, serving more than 560 cities in 136 countries. The OneWorld global alliance also includes Aer Lingus, Cathay Pacific, Finnair, Iberia, LanChile and Qantas airlines. To book your codeshare or OneWorld flight, visit http://www.aa.comor call AA Reservations. OneWorld information is available at http://www.oneworld.com. About American Airlines American Airlines is the world's largest carrier. American, American Eagle and the AmericanConnection regional carriers serve nearly 275 cities in 50 countries and territories with approximately 4,300 daily flights. The combined network fleet numbers more than 1,100 aircraft. American's award-winning Web site, http://www.AA.com,provides users with easy access to check and book fares, and to personalized news, information and travel offers. American Airlines is a founding member of the OneWorld Alliance. BRITISH ENERGY: Not Complying with NYSE Listing Standard -------------------------------------------------------- The Board of British Energy has been notified by the New York Stock Exchange (NYSE) that British Energy does not currently comply with the NYSE's continued listing standard relating to the minimum market capitalization and shareholders' equity. The NYSE requires that the average global market capitalization of a listed company during any 30-day consecutive trading period shall not fall below U$50 million and that the total shareholders' equity shall not be below US$50 million. In the 30 day consecutive trading period ended 8 August 2003, British Energy's average global market capitalization was US$49.2 million. British Energy is currently in discussions with the NYSE with respect to its ability to meet the minimum market capitalization criteria and is reviewing the options available to the Company going forward. With effect from 29 August, the NYSE will transmit the indicator 'BC' along with the trading information relating to British Energy to indicate that the company is currently below the minimum market capitalization and shareholders' equity criteria for continued listing. CONTACT: Andrew Dowler Financial Dynamics, Media Phone: 020 7831 3113 Paul Heward British Energy, Investor Relations Phone: 01355 262 201 KERESFORTH THREE: High Court Sanctions Scheme of Arrangement ------------------------------------------------------------ Notice is hereby given that by an Order dated July 30, 2003 made in the High Court of Justice in the above matters by Mr. Justice Jacob, the Scheme of Arrangement between Keresforth Three Limited (formerly Enron Metals Group Limited) (in Administration) and its Scheme Creditors, which was sent to persons believed to be Scheme Creditors of the company on or shortly after June 24, 2003, was sanctioned without modification, pursuant to Section 425 of the Companies Act 1985. A copy of the Scheme was delivered for registration to the Registrar of Companies under Section 428(3) of the 1986 Act on July 31, 2003. Accordingly, for the purposes of the Scheme the Effective Date is July 31, 2003. Under the terms of the Scheme MJ A Jervis, D M Ghosh, S A Pearson and A V Lomas of PricewaterhouseCoopers LLP of Plumtree Court, London, EC4A 4HT were appointed the Scheme Supervisors. All persons who claim to be creditors of the Company must notify the Scheme Supervisors of their interest by submitting a Notice of Claim to the address noted below on or before the Bar Date of September 15, 2003. This is not withstanding the fact that they may have given earlier notification of claim. CONTACT: MJ A Jervis, Joint Supervisor Keresforth Three Limited (formerly Enron Metals Group Limited) c/o PricewaterhouseCoopers LLP Cornwall Court, 19 Cornwall Street Birmingham B3 2DT LA METROPOLE: High Court OKs Scheme of Arrangement -------------------------------------------------- Notice is hereby given that, by an Order dated July 29, 2003 made in the High Court of Justice in England and Wales in the matter of La Metropole S.A. to be made between the Company and its Scheme Creditors (as defined in the Scheme) pursuant to section 425 of the Companies Act 1985, which was voted on and unanimously approved by Scheme Creditors during the meeting held on July 21, 2003, was sanctioned. A copy of the Scheme was lodged with the registrar of companies on July 31, 2003, and the Scheme became effective on that date. It is requested that Scheme Creditors submit completed Claim Forms by October 31, 2003. Returned Claim Forms must reach PricewaterhouseCoopers on or before this date. Should you have any questions regarding this Notice, please address them to Baljit Goraya at: PricewaterhouseCoopers LLP, Plumtree Court, London EC4A 4HT; Phone: +44 (0)20 7804 5339 or Fax: +44 (0)20 7212 6316. LONDON FORFAITING: Offer Declared Unconditional ----------------------------------------------- On July 22, 2003, the Boards of London Forfaiting and FIMBank (U.K.) announced a recommended cash offer for the entire issued and to be issued share capital of London Forfaiting. The Offer was made by WestLB on behalf of FIMBank (U.K.) by means of the Offer Document, which was posted on July 22, 2003. FIMBank (U.K.) announces that as at 3.00 p.m. (London time) on Wednesday August 27, 2003 valid acceptances of the Offer had been received from the holders of, in aggregate, 68,234,824 London Forfaiting Shares, representing approximately 65.1% of the London Forfaiting Shares to which the Offer relates. Prior to making the Offer, FIMBank (U.K.) had received irrevocable undertakings to accept (or procure the acceptance of) the Offer in respect of, in aggregate, 38,970,897 London Forfaiting Shares, representing approximately 37.2% of the issued share capital of London Forfaiting. Valid acceptances of the Offer have been received in respect of all of the London Forfaiting Shares that were the subject of such irrevocable undertakings and are included in the total number of valid acceptances referred to above. All conditions to the Offer have now been satisfied or, where permitted, waived. Accordingly, the Offer is declared unconditional in all respects. The Offer will remain open for acceptance until further notice. FIMBank (U.K.) has entered into new financing arrangements and amended its existing financing arrangements in order to permit it to declare the Offer unconditional in all respects at this stage. Further details will be set out in a circular to London Forfaiting Shareholders. London Forfaiting Shareholders who have not yet accepted the Offer are urged to do so as soon as possible. London Forfaiting Shareholders, holding London Forfaiting Shares in certificated form, who wish to accept the Offer, and who have not yet done so, should complete the Form of Acceptance enclosed with the Offer Document and return it, together with supporting documents, to the receiving agents to the Offer, Capita IRG Plc, at Corporate Actions, PO Box 166, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TH as soon as possible. Additional Forms of Acceptance are available from Capita IRG Plc, by telephoning 0870 162 3100 (if calling from within the U.K.) or +44 20 8639 2157 (if calling from outside the U.K.). London Forfaiting Shareholders, who hold their London Forfaiting Shares in uncertificated form, wishing to accept the Offer should do so using the procedure set out in the Offer Document. Consideration Consideration to which any London Forfaiting Shareholder is entitled under or in consequence of the Offer will be paid within 14 days of today's date in respect of acceptances received by that date which are valid and complete in all respects, and within 14 days of the date of receipt in respect of any further acceptances which are received after today's date and which are valid and complete in all respects. De-listing If FIMBank (U.K.) receives sufficient further acceptances under the Offer, it is probable that the listing of London Forfaiting Shares on the Official List will be cancelled and that such shares will cease to be admitted to trading on the London Stock Exchange's market for listed securities. A decision in relation to the de-listing will be made by the Board of Directors of London Forfaiting at the appropriate time in light of the then prevailing circumstances, when London Forfaiting Shareholders will be informed of that decision. De-listing would significantly reduce the liquidity and marketability of any London Forfaiting Shares not assented to the Offer. Save as disclosed above, neither FIMBank (U.K.) nor any person acting, or deemed to be acting, in concert with FIMBank (U.K.) held any London Forfaiting Shares (or rights over any London Forfaiting Shares) prior to the commencement of the Offer Period nor has any such person since the commencement of the Offer Period acquired or agreed to acquire any London Forfaiting Shares (or rights over any London Forfaiting Shares). CONTACT: FIMBANK Margrith Lutschg-Emmenegger Phone: +356 23 280 180 MARCONI CORPORATION: On Track to Meet Operational Targets --------------------------------------------------------- Marconi Corporation released this latest financial result recently. These are the highlights: (a) Cost savings on track to achieve FY04 target run-rates but Q1 operational performance hindered by lower sales volumes (b) Sales GBP367m (Q1 03 GBP533m; Q4 03 GBP429m) (c) Adjusted Gross margin* 22.6% (Q1 03 18.2%; Q4 03 24.5%) (d) Adjusted Operating Loss* GBP43m (Q1 03 GBP127m; Q4 03 GBP28m) (e) Strong progress in Group cash management (f) Third consecutive quarter of positive operating cash flow before exceptional items (GBP32m) driven by GBP53m contribution from improvements in working capital (g) Operating cash inflow and proceeds from IT outsourcing deal (GBP26m) more than sufficient to fund cash costs of operational restructuring (GBP36m) (h) GBP14m cash inflow before restructuring drives return to net cash position (GBP5m at 30 June 2003) (i) Next Junior Notes coupon payment due 31 October 2003 to be paid in cash (j) First partial redemption of Junior Notes completed on 31 July 2003 GBP41m ($66m), reducing principal amount to GBP262m ($421m) as at 31 July 2003 (k) Sale of 33% stake in Easynet (l) Release of escrow monies following disposal of UMTS (m) Q1 Group Key Figures: (n) Financial restructuring complete and fully reflected in Q1 results; net assets GBP303m (o) Group Operating Loss GBP95m; Group Loss after Taxation GBP88m; Group Loss per Share 4.4p (p) Q2 Outlook confirmed (q) Sales in Q2 expected to be flat to slightly up - maintain a cautious view of near term market environment (r) Cost saving programs should lead to sequential improvement in Q2 operational performance * Continuing operations before goodwill amortisation and exceptional items. Marconi Corporation plc (MONI) Thursday provided full results for the three months ended June 30, 2003. Commenting on the results, Mike Parton, Chief Executive, said: "We completed the period under review with a balance sheet that reflects better the size and scale of the business we are today. We remain on track to meet our year-end operational targets, and we have been operating cash positive now for three straight quarters. We had net cash at the end of June and have made a start to redeem our new notes. "These, we believe, are the measures of a business that has successfully completed its financial reconstruction and of an organization that can be optimistic for the medium term." Important Notice This news release should be read in conjunction with Marconi Corporation Group Non-Statutory Accounts and Operating and Financial Review for the Quarter ended June 30, 2003. Marconi Corporation plc US GAAP accounts for the same period will be filed with the SEC later and made available on Marconi's web site at around 4pm. Throughout the period of restructuring which has spanned the two financial years ended March 31, 2002 and 2003, the Group incurred significant exceptional items and recorded a significant impairment of goodwill. In order to present more clearly the underlying business in this Press Release and in the accompanying Operating and Financial Review, management also presents and focuses its commentary on adjusted gross margins, operating losses and cash flows after removing the impact of these material items. Analyst Presentation and Conference Call Management will host a conference call for analysts and investors at 4:00 p.m. (UK time) on Thursday, August 28, 2003. The conference call can be accessed on Marconi's web-site or by dialing +44 (0) 20 8996 3900 (in the UK), +1 888 339 2688 (US Toll Free Number) or +1 617 847 3007 (US International Dial-In Number) and quoting 'Marconi Q1 Results'. A replay facility will be available for 14 days by dialing +44 (0) 1296 618 700, access code 421519 (in the UK) or +1 888 286 8010, access code 82132735 (in the US). To view full report and financials: http://bankrupt.com/misc/MARCONI_CORPORATION.htm ROYAL MAIL: Negotiations Suspended; Union Edges Toward Strike ------------------------------------------------------------- Postal workers in the U.K. began voting Thursday on whether to strike after talks, aimed at resolving pay disputes at Royal Mail, got suspended. The Evening Standard said ballot papers were sent out to 160,000 postal workers after Royal Mail managers and officials from the Communication Workers Union failed in their efforts to head off the first national walkout for seven years. Discussions ended with the two sides appearing to be further apart than ever. Both groups blamed each other for the lack of resolution and warned each other that the future of the business could be put at risk by the action. Royal Mail CEO Adam Crozier said there was no sign the union was prepared to be realistic, while union chief negotiator Ray Ellis claimed management had shown "complete contempt" for the union and its members. It is noted that the CWU rejected an offer of a 14.5% wage increase over 18 months, saying the deal carried too many conditions, such as job losses, new delivery patterns and performance targets. The union claimed there was only 4.5% hard cash on offer, with the rest tied to productivity improvements. Royal Mail Chairman Allan Leighton sent a letter to employees emphasizing that the company had made its "final" offer, which he described as "incredibly good" given the group's losses of GBP611 million and the need to put GBP100 million a year into the pension fund. Ballot results are expected next month, although the union has to give seven days' notice of any industrial action. Royal Mail warned a strike could last beyond Christmas; a prolonged strike would be catastrophic. ROYAL MAIL: Postal Strike Could Hurt Small Businesses, Says BCC --------------------------------------------------------------- The British Chambers of Commerce (BCC) warns many small businesses could fail if a postal strike would ensue after talks between Royal Mail and Communication Workers Union broke down last Wednesday. U.K.'s Financial Times said BCC was "very concerned" at the threat of a national postal strike, the first in seven years. The warning comes as new data showed that first class mail reliability has reached the highest levels since the summer of 1998. The proportion of letters arriving on time rose through the first quarter of the year to 93.2% in June. BCC policy adviser Mathew Knowles said: "A cheque arriving in the mail on time can mean the difference between life and death for a company, especially a small firm. We hope that a stoppage can be averted and, if not, the Royal Mail's contingency plans can take up the slack." Royal Mail has offered workers a 14.5% increase over 18 months, which it says would bring the weekly wage up to GBP300. CWU rejected the offer, claiming that the real rise only equates to 3% since the extra money is linked to changes in working practices, including altered shifts and productivity targets. CWU is calling for an upfront, unconditional wage rise of 8%. Earlier, Royal Mail chairman Allan Leighton warned postal workers they will be committing "commercial suicide" if they vote to strike over pay. He said a strike would cost the company up to GBP20 million a day and would ensure that the business could not recover from past losses, "putting everyone's future at risk." "If you vote with the activists amongst the union against the deal - or don't vote at all - we begin the process of commercial suicide," he maintained. Mr. Leighton sent a letter to employees making it clear the business could not improve its "final" offer, given the group's losses of GBP611 million and the need to put GBP100 million a year into the pension fund. He said: "In this context, the 14.5% on the table is an incredibly good offer - the best for 10 years. It's important that everyone understands that a vote to strike will result in a strike and that the company will not, at any stage, be able to improve its offer." STODDARD INTERNATIONAL: Restructuring Progressing Well ------------------------------------------------------ On Thursday's annual general meeting, Alan Scott, chairman of Stoddard International PLC made the following statement. "My statement in the 2002 annual report explained the conditions confronting the company as it competes in a particularly tough market while undertaking a major restructuring exercise. "The very major relocation of the entire business over the last 18 months to one site in Kilmarnock will be completed by the year-end. The significant efficiencies of this will represent a major element of the company's recovery strategy. "Throughout 2003 trading has been difficult in all markets. Inevitably there has been short-term operational disruption during this transitional period that has affected our business however the worst of this is now behind us. "The property disposal program is progressing well with outline planning consent for residential development being granted in June for the major part of the Elderslie site. We expect to complete the disposal of the Mill St site to Safeway by the end of this year. The proceeds from surplus properties will substantially reduce our debt burden." CONTACT: STODDARD INTERNATIONAL PLC Alan Scott, Chairman Alan Lawson, Chief Executive Phone: 01505 577000 ********* 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 * * *