/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030925.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, September 25, 2003, Vol. 4, No. 190 Headlines ALSTOM SA: Higher Restructuring Cost Means More Job Losses ALSTOM SA: Faces Class Action for Cover-up in Marine Segment FRANCE TELECOM: Ratings Outlook Changed to Positive VIVENDI UNIVERSAL: Ex-Chairman Agrees Firm Lacks Focus G E R M A N Y HVB GROUP: Outlook of 'C-' Financial Strength Changed to Stable INFINEON TECHNOLOGIES: Appoints New Investor Relations Chief MANNHEIMER AG: Officers Probed for Alleged Breach of Trust MOBILCOM AG: Founder's Shareholding Reduced to Less than 5% WESTLB AG: Loses Board Seat in Retailer Bhs H U N G A R Y K&H EQUITIES: Brokerage Scandal Sets off Political Mud-slinging N E T H E R L A N D S KLM ROYAL: Urged to Secure Future of Schiphol Airport KONINKLIJKE AHOLD: Results to Bare Financing Needs, Schemes ROYAL KPN: Earmarks EUR25 Million for Free Internet Offering N O R W A Y STATOIL: Chief Executive Resigns in Wake of Bribery Scandal P O L A N D BANK PRZEMYSLOWO-HANDLOWY: Financial Strength Upgraded to D+ DAEWOO-FSO: MG Rover Undeterred by Possible Bankruptcy P O R T U G A L JERONIMO MARTINS: Posts EUR17.1 Million First-half Profit S W I T Z E R L A N D SGA SOCIETE GENERALE: S&P Ratings on Credit-Linked Notes Lowered SWISS INTERNATIONAL: Picks British Airways as Strategic Partner ZURICH FINANCIAL: Obtains E.U. Clearance for Threadneedle Sale U N I T E D K I N G D O M ABBEY NATIONAL: Appoints Ian Jenkins Chief Risk Officer BRITISH AIRWAYS: Moves to Reinvigorate Premium Accommodation CANARY WHARF: Reuters Rents Office Space in South Colonnade EUROTECH FIRES: Receivers Sell Business as Going Concern GLAXOSMITHKLINE PLC: CEO Okays Modifications to Pay Package NETWORK RAIL: Slashes GBP5 Billion off Budget for Next 5 Years NETWORK RAIL: Regulator Urged to Issue 'Enforcement Order' ROYAL & SUNALLIANCE: Investors OK Rights Issue, But Assail Cost SCOTTISH WIDOWS: Sacks Long-time CEO; Parent Wants New Face * Dewey Ballantine Launches Italian Practice ********* =========== F R A N C E =========== ALSTOM SA: Higher Restructuring Cost Means More Job Losses ---------------------------------------------------------- Debt-laden French engineering group Alstom admitted it may have to increase the number of its redundancies to help finance its restructuring program. Initially, the group estimated restructuring cost to reach EUR110 million only to admit recently the plan may cost more. Alstom is cutting 7,000 out of its 110,000 workforce, the Guardian said. Commenting on the possibility that the group would have to cut jobs further due to increased costs, a spokesman said it was a "deduction that could be made." On Monday, Alstom obtained a restructuring agreement with the French state and the European Commission, but investors are slowly beginning to realize Alstom's future is not yet entirely guaranteed as the regulator's definitive verdict on the deal is still six months away. ALSTOM SA: Faces Class Action for Cover-up in Marine Segment ------------------------------------------------------------ Scott + Scott, LLC announced a class action it commenced on September 2, 2003, on behalf of an institutional investor in the United States District Court for the District of Connecticut on behalf of purchasers of ALSTOM S.A. (NYSE:ALS) or (Paris: ALSO. PA) securities after November 17, 1998. Securities Violations Alleged by United Brotherhood of Electrical Workers Local 269 The complaint, filed in the United States charges Alstom and certain of its officials and directors with violations of the securities laws (Securities Exchange Act of 1934). Alstom is engaged in power generation, power transmission, power distribution and ship construction in France. The complaint alleges that during the Class Period, the individual defendants engaged in a scheme to conceal Alstom's problems growing its Marine segment in order to prevent the decline in the price of Alstom securities for reasons including to protect and enhance executive positions and substantial compensation, raise EUR387 million in a share offering on June 19, 2001, as well as EUR630 million in a rights offering on June 4, 2002 and enhance the value of their personal Alstom securities holdings and options. It was important to Alstom to be perceived favorably and to minimize the risks associated with its liquidity so that it could raise the necessary financing to fund its business. Alstom's bank borrowings increased from EUR839 million at March 31, 1999, to EUR2.7 billion at March 31, 2000, to EUR4.5 billion at March 31, 2001. The complaint alleges defendants concealed the off-balance-sheet risk associated with guarantees on debt incurred by customers, including Renaissance Cruises, Inc., making purchases from Alstom's fastest growing segment. The true facts, which the complaint alleges were known to the defendants but concealed from the shareholders, were that the Company's first half financials results for FY 2000, were grossly overstated; that the disastrous problems associated with the Company's GT24B and FT26B turbines was causing customers to back out of their prior turbine orders; that the Company had failed to timely and adequately account for the liabilities associated with the company's gas turbines (customers requesting compensation payment rather than a correction of the turbines) and transport problems totaling in excess of EUR1 billion and plunging the Company into a loss of EUR1.4 billion in FY 2003; that the company's "under funding" of its pension liabilities was materially "under stated" by in excess of EUR500 million; and that the company failed to timely disclose its liabilities associated with vendor financing and Renaissance cruise ships. The complaint also alleges that until November 2002, the company concealed its exposure to 60 separate asbestos lawsuits involving 6,500 plaintiffs. The company failed to account for these liabilities and thus overstated its financial statement by as much as EUR60 million. The company's asset disposal program was well behind schedule and that its projected goal of raising proceeds of EUR1.4 billion by March 2003 was a fallacy. Even the company's November 2002 revised guidance associated with restructuring the company's Transport business was grossly in excess of EUR51 million; the company had materially understated its losses associated with a rail car contract by guarantees to banks that had loaned money to cruise lines so they could purchase ships from the company and thereby inflate the company's revenue via ship sales; and the company actually understated the Company's net debt by EUR2 billion via its vendor financing scheme. CONTACTS: SCOTT + SCOTT, LLC David R. Scott Phone: 800-404-7770 E-mail: drscott@scott-scott.com or Neil Rothstein Phone: 800-404-7770 E-mail: nrothstein@aol.com FRANCE TELECOM: Ratings Outlook Changed to Positive --------------------------------------------------- Moody's Investors Service changed the outlook for the Baa3 long-term debt ratings of France Telecom, and its subsidiary Orange SA, from stable to positive. The action was prompted by the rating agency's belief that France Telecom is proceeding successfully in its efforts to reduce debt, and improve operational cash generation of the group. France Telecom intends to reduce debt by EUR15 billion from operational cash flow during a three-year period starting at the beginning of 2003. Moody's believes that further debt reduction will be achieved by the recently announced additional non-core asset sales as well as from an improvement in underlying operating cash flow. The ratings may be upgraded if the company generates sustainable free cash flow of EUR4 billion or more, while resisting debt financed acquisitions or other potentially significant cash flow negative activity, the rating agency said. Moody's also expects the company to continue to focus on driving cost down, and possibly factor resume dividend payments, albeit at moderate levels. VIVENDI UNIVERSAL: Ex-Chairman Agrees Firm Lacks Focus ------------------------------------------------------ Former Vivendi Chairman Edgar Bronfman Jr., whose family remains one of the company's largest shareholder, expressed concern over the diversity of the French company's interest even after a possible sale of its U.S. entertainment assets. "It seems to me that after the sale of Vivendi Universal Entertainment, the diversity of Vivendi's assets constitutes a problem for investors interested in the stock," Mr. Bronfman told French newspaper Liberation. "It is because the activities belong to too many different industries that don't necessarily have any connection: Cegetel, Canal Plus, Universal Music, Maroc Telecom." Investors are currently calling on Chief Executive Officer Jean-Rene Fourtou to narrow the conglomerate's focus to its phone businesses. Bloomberg quoted investor Patrick Wollenberg, who helps manage US$15 billion at Robeco Groep in Amsterdam, saying: "Fourtou has done the right things -- he brought the company into stability... But it doesn't make sense to have those different businesses together. I would rather have the choice to own the parts I like." Mr. Fourtou himself posed the question whether Vivendi should separate the phone and the entertainment assets, during a press conference on September 2: "I give myself several months to find an answer." ============= G E R M A N Y ============= HVB GROUP: Outlook of 'C-' Financial Strength Changed to Stable --------------------------------------------------------------- Moody's Investors Service changed the outlook for the C-financial strength rating of HVB from negative to stable. The rating agency recalled that it assigned a negative outlook for HVB's financial strength in April 2003 due to some uncertainties that exist related to the financial impact of its planned separation from its mortgage bank subsidiaries. At present, it said: "these uncertainties have been considerably mitigated." HVB was able to successfully float a minority holding in Bank Austria-Creditanstalt, and sell further assets, including the consumer finance specialist Norisbank. With the continuing reduction in risk-weighted assets, Moodys now expects HVB to be able to provide the substantial increase in the capitalization and the ring-fencing of the new real estate banking group, and likely improve its own capitalization. But Moody's says HVB's fundamentals remain structurally affected by the group's persistently weak recurring profitability. It also warned that reducing credit risk concentration and boosting revenues in the German market will continue to be difficult. INFINEON TECHNOLOGIES: Appoints New Investor Relations Chief ------------------------------------------------------------ Dominik Asam, 34, has taken over as Head of Investor Relations at Infineon Technologies. Previously this division was under the temporary stewardship of Matthias Poth, Director of the Corporate Center. As well as Investor Relations, Mr. Asam's remit will include the Mergers & Acquisitions and Infineon Ventures. Before moving to Infineon, Mr. Asam was with Goldman Sachs, working since 1996 in its Investment Banking Division in Frankfurt, New York and, most recently, London, where in 2000 he was appointed Executive Director in charge of investment banking for semiconductor companies in Europe. He holds qualifications as a Master of Science in Engineering from Technical University of Munich and Ecole Centrale Paris, as well as a Master of Business Administration from INSEAD in Fontainebleau, France. About Infineon Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the U.S. from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In the fiscal year 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at http://www.infineon.com ***** Europe's second largest semiconductor company, Infineon Technologies, hopes to abandon nine straight quarters of losses when it reports results in the three months to the end of September, according to the Financial Times. Chief Financial Officer Peter Fischl told investors in Munich during a conference Monday the German chipmaker is "well on the way" to profit. He said he wants to meet consensus estimates of analysts regarding its return to black for the current fiscal fourth quarter. After reporting losses of EUR2.4 billion over the last nine quarters due to the slump in the D-Ram chips market, the product that accounts for 40% of its sales looked set to improve. MANNHEIMER AG: Officers Probed for Alleged Breach of Trust ---------------------------------------------------------- Prosecutors in Mannheim, Germany, are currently investigating certain officers of Mannheimer AG Holding for suspected breach of trust in relation to failed stock investments that led to the collapse of its life unit, Bloomberg news agency reported. An e-mailed statement from the prosecutors' office disclosed Chief Financial Officer Ulrich Lichtenberg; head of the supervisory boards, Hans Schreiber; and the supervisory board head of Mannheimer Lebensversicherung AG have been charged with making unsafe financial decisions that caused the demise of the unit. "They are charged with making risky investments, primarily in stock-dominated special funds, and expanding them even as share prices were falling without taking the appropriate hedging measures," the prosecutors said in the statement. Mannheimer's life insurance unit, Mannheimer Lebensversicherung AG, was badly hit by a high percentage of stock market investments. It ceased writing new business in June and has put an asset management and an Internet unit up for sale to help replenish reserves. The business was transferred to Protector, a bailout company funded by competitors. Protector will take over all of the life insurance contracts next month under the same conditions after completing negotiations on their transfer on September 18, the statement said. Germany's BAFin financial-services regulator is expected to approve the transfer of the contracts by the end of the month, Guenter Himstedt, who heads Protector, said in the statement. MOBILCOM AG: Founder's Shareholding Reduced to Less than 5% ----------------------------------------------------------- Prof. Dr. Helmut Thoma notified MobilCom AG that the amount of shares administered by him for Gerhard Schmid and the Millenium GmbH in a fiduciary capacity fell below the 10 and 5% threshold subject to reporting. Furthermore Mr. Thoma notified to hold just an insignificant stake of share capital. The original stake amounted to 42.42%. ***** Professor Dr. Helmut Thoma remained the legal owner of the MobilCom shares previously owned by Gerhard Schmid and Millenium GmbH following the insolvency of Gerhard Schmid, founder and former chairman of MobilCom. Mr. Thoma was appointed trustee for the 42% stake Mr. Schmid and his wife hold in the company as part of an agreement for the restructuring of the ailing German mobile telecommunications group. There were warnings in January that Mr. Schmid and his wife would lose some of their stake in the company if they do not pay money they owe the group. As a stipulation of the EUR7.6 billion bailout of MobilCom last year, the trustee overseeing a 50% stake for the couple could sell an 8% stake held by Millenium GmbH, if they do not repay EUR71 million (US$74 million) of borrowings by March 31. WESTLB AG: Loses Board Seat in Retailer Bhs ------------------------------------------- Peter Green, the owner of retailer Bhs, plans to make an early payment to WestLB for the money it loaned from the bank to purchase the company. Mr. Green owes WestLB GBP120 million when it acquired Bhs for GBP200 million in 1999. The loan was arranged through the principal finance unit, which gave WestLB a seat on the retailer's board. The position is occupied by Robin Saunders, the head of the German bank's principal finance unit. The development necessitates Ms. Saunders' resignation. "We are paying down our debt early which means we will repay WestLB early. Robin had a seat on the board in relation to the loan which is no longer necessary," Mr. Green said. The principal finance unit, which is now closed to new business, was responsible for the refinancing of BoxClever -- an investment mainly responsible for the EUR1.67 billion (GBP1.1 billion) loss of WestLB in 2002. ============= H U N G A R Y ============= K&H EQUITIES: Brokerage Scandal Sets off Political Mud-slinging --------------------------------------------------------------- The ongoing investigation into the brokerage scandal involving K&H Equities triggered a political mud-throwing in Hungary last week, according to Budapest Business Journal. The report said Gabor Simon, an MP of governing Socialist Party, asked the opposition Fidesz to clarify its ties with K&H Bank, as he alleged that Fidesz politician Lajos Simicska had a secret business relationship with K&H Bank. According to him, Mr. Simicska had an agreement entered in behalf of Fidesz to lease its Budapest party headquarters from K&H Bank for HUF50,000 per month. The transaction dates as far back as 1996. Fidesz denied any ties with either K&H Bank or K&H Equities, and countered that its party members must also clarify their link with Inter-Europa Bank Rt, where the proceeds of the fraud are alleged to have been laundered. He was referring to Prime Minister Peter Medgyessy and Finance Minister Csaba Laszlo. Right-wing daily Magyar Nemzet earlier suggested Mr. Medgyessy may have had involvement in the illegal cash flows in Inter-Europa Bank Rt. The Magyar Nemzet report referred to a copy of the official minutes of an IEB extraordinary general meeting held October 1, 1998 saying Dr. Peter Medgyessy was elected as member of the board from October 1, 1998, for a three-year period. Records in the Court of Registration, however, show that Mr. Medgyessy had already left this position prior to the establishment of K&H Equities. ===================== N E T H E R L A N D S ===================== KLM ROYAL: Urged to Secure Future of Schiphol Airport ----------------------------------------------------- The Dutch government is not opposed to an alliance between KLM Royal Dutch Airlines and Groupe Air France, but it is demanding that the plan guarantee the future of Amsterdam Schiphol Airport, according to AFX. Prime Minister Jan Peter Balkenende said: "Schiphol is a fantastic airport with a big international reputation. That must not change." According to him the interests of KLM and Schiphol may not be squandered due to their role as major employers and their economic importance to the Dutch economy. "We are demanding expressly that attention be paid to the future of the airport," he said. The state, which holds a 14.1% stake in KLM Royal, is actively helping carve out a deal with Air France. KLM Royal started negotiating with Air France regarding the tie-up and a possible entry into the latter's SkyTeam alliance late August. "Airlines are having a hard time making it on their own. That's why we are positive about cooperation," Mr. Balkenende said. The Amsterdam-based carrier reported a EUR416 million ($470 million) loss for the year ended in March. KONINKLIJKE AHOLD: Results to Bare Financing Needs, Schemes ----------------------------------------------------------- Troubled Dutch retailer Ahold is likely to unveil a large financing package when it publishes its restated 2002 results next week, according to Reuters. "There will be a mix of funding sources: cash flow, asset sales, a convertible bond and a rights issue," the report quoted a banker saying. An Ahold spokesman declined to comment for the time being other than to say the retailer is concentrating on delivering its 2002 audited results to its syndicate of banks. Ahold has to meet the September 30 deadline for the delivery of its results to the bank, or lose access to the first part of a EUR2.65 billion (US$3.04 billion) credit line arranged after a US$1 billion accounting scandal was discovered at its U.S. Foodservice unit. ROYAL KPN: Earmarks EUR25 Million for Free Internet Offering ------------------------------------------------------------ KPN is offering schools in the Netherlands 3 years' free broadband Internet through its subsidiary XS4ALL. KPN believes that the development of advanced learning methods based on the latest communication technologies is essential for society, and wants to contribute to the growth of the knowledge economy in the Netherlands. A well-educated working population will reinforce the country's competitive position in the long term. It is also in the interest of KPN that employees and customers of the future make maximum use of ICT at work and at home. To that end, KPN is investing EUR25 million. KPN is also calling for other companies to make similar essential investments in the country's future, and sees this as the first step towards co-operating with other parties to support the Dutch knowledge economy. Schools in primary, secondary, vocational and adult education qualify for KPN's free Internet offer. Until 2001, when all sponsoring activities were suspended in view of the financial circumstances of the time, KPN was an active sponsor, principally of football. KPN has instead consciously chosen to invest in the Dutch knowledge economy. From January 1, 2004, institutions in primary, secondary, vocational and adult education in the Netherlands will have their own Internet budget. KPN will provide fast broadband connections and access to advanced Internet services, free of charge. XS4ALL, a subsidiary of KPN, will supply the technology for the services. KPN will offer an alternative to schools in areas where ADSL is not available at this moment. KPN's offer of free Internet access will allow schools to use their full budget for introducing new ICT-based learning methods and training teachers. ICT is becoming increasingly important in education and is driving many innovations. The Internet is opening the door to many new forms of learning, as well as providing schools and students with a convenient way to communicate and share information. Schools use ICT-based methods in different ways and to varying degrees. This can be seen in primary, secondary, occupational and adult education, where the needs of the various types of institution are at different levels. KPN is therefore offering modules with a variety of services: Internet access, e-mail, web hosting and virus filters. KPN has put together tailor-made packages for each type of school and will ensure a seamless transfer from current providers, free of charge. ***** KPN's troubles stemmed from debts of EUR22 billion (US$25.5 billion) acquired during a buying spree at the height of the telecoms boom. It returned to profit in the first quarter of 2003 after cutting costs and restructuring. It plans to trim down debts to EUR10 billion by end of 2003. =========== N O R W A Y =========== STATOIL: Chief Executive Resigns in Wake of Bribery Scandal ----------------------------------------------------------- Statoil CEO Olav Fjell stepped down Tuesday, bringing the total number of resignations in the oil company to three in just a week. His departure follows that of former chairman Leif Terje Loeddesoel, and head of exploration, Richard Hubbard. The resignations came in the wake of a US$15.2 million Iranian bribery scandal involving the son of Iran's former president, Hashemi Rafsanjani. Police is currently investigation the US$15.2 million contract the Norwegian company entered with a group of Iranian consultants. Statoil admitted paying consultancy group Robert Horton US$5.2 million before canceling the contract last year. But police raided the Statoil offices last week acting on suspicions that some of the money may have been used to bribe Iranian oil officials, including the son of Iran's former president. The Telegraph said it is not clear what prompted Mr. Fjell's resignation, but he is believed to have been aware of the consultancy fees. The amount Statoil had paid to consultants in other oil-developing countries is not yet established. Statoil said it hired Ernst & Young to review these contracts. =========== P O L A N D =========== BANK PRZEMYSLOWO-HANDLOWY: Financial Strength Upgraded to D+ ------------------------------------------------------------ Moody's upgraded to D+ from D the financial strength rating of Poland's Bank Przemyslowo-Handlowy PBK SA, reflecting of improving trends in the bank's financial fundamentals since end-2002. The outlook is stable. After conducting a review to possibly upgrade the rating in August, Moody's said the "management has been quickly and successfully restructuring the bank since the legal merger between Bank Przemyslowo-Handlowy SA and Powszechny Bank Kredytowy SA at end-2001." It reported that the bank's cost reductions are on track, and expects cost efficiency to continue to improve as planned in 2003/2004. "Profitability will also be supported by much reduced credit related provisioning charges and the disposal of non-core assets," Moody's said. It also acknowledged the management's progress in strengthening its risk management, and reducing risk profile. The rating agency retained the bank's A3/P-2 deposit ratings. DAEWOO-FSO: MG Rover Undeterred by Possible Bankruptcy ------------------------------------------------------ Bankruptcy won't hinder MG Rover from investing in troubled Polish carmaker Daewoo-FSO, Warsaw Business Journal reported Tuesday. Insolvency looms for the Zeran-based plant after its Korean shareholder recently blocked a plan to increase capital and execute a debt to equity swap. The British car producer has been negotiating the terms of investment in Daewoo-FSO for over a year and a half now. MG Rover's Deputy Head Nick Stephenson was quoted as saying: "We are ready to search for any solution in cooperation with the Polish side to enter the plant." In case of a bankruptcy, Daewoo-FSO will file for papers in September, since a new law that would put the employees and the State Treasury in a less favorable situation would come into force in October. Daewoo-FSO has suffered losses and laid off workers after South Korea's Daewoo Motor, one of the Polish company's owners, went belly up in 2001. CONTACT: DAEWOO-FSO MOTOR CORPORATION Ul. Jagielloivska 88 03-215 Warszawa Phone: +48-22-676-3955 Fax: +4822-676-1501 Homepage: http://www.daewoo.com.pl =============== P O R T U G A L =============== JERONIMO MARTINS: Posts EUR17.1 Million First-half Profit --------------------------------------------------------- Jeronimo Martins released these latest financial highlights recently: (a) Confirming the recovery registered during the first half of the year, the Group's profits surpassed EUR17 million and the cash flow per share doubled in relation to the same period of 2002. (b) Operating results quadrupled when compared to those of the first half of 2002, greatly influenced by the sale of the less profitable businesses, decided during the restructure carried out in 2002. (c) Sales grew by 2.4% (on a comparable basis), reaching EUR1.6 billion, during a period marked by a sharp slowdown of the economy of the countries where the Group operates. (d) As a result of the financial debt reduction, achieved through the abovementioned restructure, interest expenses decreased by 43%. Jeronimo Martins's Group ended the first half of 2003 with a net profit of EUR17.1 million and with most economic and financial indicators performing quite favorably. Consolidated sales grew by 2.4% (on a comparable basis, i.e. without the businesses sold in the meantime) as against the same period of 2002, which can be considered a favorable performance, particularly bearing in mind the poor economic scenario affecting the countries where the Group operates (Portugal and Poland). Worthy of pointing out is the Group's excellent performance in terms of operating results, which grew fourfold in relation to the first half of 2002, as a direct result of the restructure carried out. On a comparable basis, EBIT increased by 7.6% against the same period of 2002, although a little jeopardized by the strong devaluation of the zloty and the deterioration of the macroeconomic scenario during the first half of 2003. The great effort shown by all areas of the Group to control and increase operating efficiency significantly contributed to this good performance. Portugal: Pingo Doce shows the success of its repositioning strategy and Recheio continues achieving excellent results The turnover of the retail chains rose by 6.3% as against the previous year, revealing a remarkable performance if the recessive climate of the Portuguese economy is taken into consideration, particularly as far as private consumption is concerned. Although the economic slowdown motivated a higher pressure on selling prices, the improvement achieved in terms of operating costs allowed the EBITDA retail margin to remain stable. The Pingo Doce chain experienced a turnover increase of over 7% (taken into account the implicit deflation of 2% in all main products) and a 4% growth on the like-for-like, revealing the success of the brand's strategy. Compared to the previous one, the second quarter allowed for a significant recovery of Feira Nova's sales, thanks to the impact of the Easter season and the opening of a hypermarket at Odivelas. However, accumulated sales as of the end of June showed a negative variation of 1.2% due to the market's increasing competitiveness, the slowdown in consumption and the deflation of approximately 1%. Recheio recorded an excellent performance. Sales surpassed EUR277 million, corresponding to a 4.8% increase in relation to the same period of the previous year. A 6.2% growth in the Horeca channel, along with an improvement in the Traditional Retail channel, allowed for a significant rise in operating results. Despite Madeira's highly competitive environment and its economic background, this business area improved its sales by 1.8%. Industry and Services areas' sales grew by 4% (on a comparable basis, i.e. excluding from 2002 the contribution of the businesses sold in the meantime). The recovery in Fima oil exports, Iglo/Ola ice creams' good 2nd quarter and the good performance of Jeronimo Martins Distribuicao de Produtos de Consumo, very much contributed to this promising evolution. The favorable growth levels experienced by products with higher margins lead to the increase of these business areas' operating cash flow (EBITDA). Poland: Biedronka keeps shining with its two digit growth rates Biedronka's sales continue to evolve at a remarkable pace. This chain posted a like-for-like growth of 12.5%, having the local currency turnover grown by 15.2%. This growth is even more significant if compared in terms of volume, since market basket's prices have suffered a considerable deflation. However, Biedronka's relevant operating growth had no impact on the Group's consolidated sales due to the Zloty's 13,9% devaluation against the Euro. The EBITDA margin of the Polish business was in line with the estimates, nearly 3% of the first half of 2003 sales, despite the continuous competitive pressure experienced by the Polish market. Debt was stabilized and interest expenses fell steeply (-43%) The Group's debt stood close to EUR900 million, having experienced a slight increase in relation to December 2002, as a result of the business seasonality. It should be pointed out that the distribution of dividends by JMR - Gestao de Empresas de Retalho, SGPS, SA had, in consolidated terms, an impact of EUR32 million on the debt. Following the debt's decrease, the interest expenses fell by nearly 43% in relation to the same period of the previous year. Clear recovery in net profit and cash flow Confirming the remarkable recovery of the Group's profitability, Jeronimo Martins's net profits reached EUR17.1 million. This figure includes EUR1.4 million of non recurrent losses related to financial investments and EUR2 million relative to Eurocash (sold in the meantime) operating losses during the first two months of the year. Cash flow per share (before investment) recorded a remarkable development, having doubled in relation to the same period of the previous year. Jeronimo Martins Group's results return to normal The 1st half of 2003 results confirm the success of the restructuring measures followed by the Group's Management in 2002/03. Jeronimo Martins is confident that the current year will mark the return to normal profit levels, and the strengthening of the Balance Sheet. It is common knowledge that prospects for the Portuguese and Polish economies in the second half of the year are not so favorable. This fact is all the more relevant bearing in mind that, due to the seasonality of the retail business, the second half of the year is absolutely decisive. Notwithstanding the difficulties, the Group believes that all business areas will know how to adjust to market conditions and will achieve the goals set forth for 2003. Jeronimo Martins will continue to bank on rationalization viewing to definitely improve efficiency and productivity levels. To view financials: http://bankrupt.com/misc/Jeronimo_Martins_Financials.pdf * * * * * According to a report by Food Production Europe, Jeronimo Martins has struggled to reduce its high debt level. Over the last two years, it disposed numerous under-performing businesses that helped the company narrow its indebtedness considerably. Ahold bought its Jumbo hypermarket business in Poland, while a management buyout gobbled up its Eurocash business. In South America, the company sold its Se and Apoio stores in Brazil, and in the U.K. disposed of its Lillywhites business. ===================== S W I T Z E R L A N D ===================== SGA SOCIETE GENERALE: S&P Ratings on Credit-Linked Notes Lowered ---------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its credit ratings on the series 3482 and 3546 credit-linked notes issued by SGA Societe Generale Acceptance N.V., an SPE. The notes were issued under Societe Generale's (AA-/Stable/A-1+) EUR32 billion European MTN program. The reference portfolios for the series 3482 and 3546 notes have experienced negative credit migration. As a result, expected net losses now exceed available credit enhancement. The ratings on the notes reflect the credit support in the form of subordination provided by the first-loss piece for each series, the credit risk of the reference portfolios, a review of the mechanics of the allocation of losses, and the rating on the existing European MTN program. The rating on the notes is dependent on the long-term rating on Societe Generale because Societe Generale, as credit default swap counterparty, is a senior creditor under the transaction. Repayment of the notes is also linked to the performance of the revolving reference portfolio of reference entities. Therefore, the ratings on the notes are equal to the lower of the rating on Societe Generale and the rating that reflects the credit enhancement available to the notes. RATINGS LIST SGA Societe Generale Acceptance N.V. Class Rating To From Ratings Lowered PLZ35 Million Credit-Linked Notes Series 3482 BB BBB- PLZ80 Million Credit-Linked Notes Series 3546 BBB- BBB SWISS INTERNATIONAL: Picks British Airways as Strategic Partner --------------------------------------------------------------- British Airways and Swiss International Airlines signed a legally binding memorandum of understanding under which the two airlines envisage entering into a commercial agreement. British Airways and Swiss plan joint operations between the U.K. and Switzerland with codesharing on London Heathrow Swiss routes from October 26 that will give both airlines' customers convenient access to worldwide destinations via London and Zurich. The Swiss frequent flyer scheme will be gradually integrated into the British Airways' Executive Club. Miles already earned with Swiss will retain their current validity. In addition, British Airways will enter into a slot exchange agreement for eight Heathrow daily slot pairs from Swiss. Swiss will also enter the OneWorld alliance, of which British Airways is a founder member. This will provide the grouping with an additional high-quality carrier and an important additional airport hub in central Europe, serving one of the world's most important financial centers and providing customers with greater choice of destination, airline and global alliance. (See separate press release from OneWorld for further details). Rod Eddington, chief executive of British Airways, said: "I am delighted to welcome Swiss into the OneWorld alliance. This commercial deal will benefit both British Airways and the new Swiss, which has a quality product, network and hub in Zurich which makes it a logical fit to OneWorld in Central Europe." Andre Dose, chief executive officer of Swiss said: "We are proud to be a member of OneWorld, the world's leading international alliance. Swiss as well as OneWorld clients will benefit from the enhanced network and the joint frequent flyer programs." ***** The codeshare destinations on London Heathrow Swiss routes are Geneva, Basle, and Zurich. British Airways will support a CHF50 million credit facility for Swiss to be secured against slots at London Heathrow airport. British Airways Swiss Destinations 220 71 Daily departures 1,385 388 Employees 44, 612 6, 500 Fleet 312 79 Operating revenue GBP7,688 million CHF4,395 million Operating profit GBP295 million -CHF5,304 million Frequent flyer program Executive club Swiss TravelClub Airport lounges 222 76 Chief Executive Rod Eddington Andre Dose Headquarters London, U.K. Basle, Switzerland Year of formation Traces its origins 2002 back to 1919 Ownership Publicly quoted company, Owned by Swiss shares Federal traded government on the London and (20.5%), cantons, New York Stock Exchanges institutional and small private investors Website address Ba.com Fly-swiss.com CONTACT: BRITISH AIRWAYS Investor Relations Waterside (HCB3) P.O. Box 365 Harmondsworth UB7 OGB Phone: + 44 (0) 20 8738 6947 ZURICH FINANCIAL: Obtains E.U. Clearance for Threadneedle Sale -------------------------------------------------------------- The European Commission said it cleared the sell-off of Zurich Financial Services' U.K. asset management unit Threadneedle to American Express Co., according to AFX. This means the transaction, valued at approximately GBP340 million (US$570 million) in cash, could close as expected in the last quarter of the year. Zurich Financial is selling the division to restore the group's profitability. Under the terms of the agreements, Threadneedle will continue to manage certain assets for Zurich Financial Services U.K. for an initial term of up to eight years, subject to standard performance criteria. Furthermore, Threadneedle will maintain its distinctive investment process and brand name. Zurich and American Express have also agreed that Threadneedle will maintain its close working relationship with Zurich's U.K. distribution network, distributing its investment products through both the Zurich Advice Network, and the Zurich Independent Financial Advisors Group. =========================== U N I T E D K I N G D O M =========================== ABBEY NATIONAL: Appoints Ian Jenkins Chief Risk Officer ------------------------------------------------------- Abbey National has appointed Ian Jenkins as Chief Risk Officer responsible for managing the bank's credit, market and operational risk. He joins the company on September 22, 2003 and will report to Stephen Hester, Chief Operating Officer. Ian joins Abbey National from Credit Suisse First Boston (CSFB) where he was Managing Director, Global Head of Product Control (1999 - 2003). He was responsible for reviewing, controlling and independently validating the risk and market value of all the firm's business. During Ian's 12 years at CSFB his other roles included Head of the Back Office for Asia Pacific and Regional Head of Asia Pacific Operations, both based in Hong Kong (1997-1998). Prior to this he was Head of Product Control and Market Risk for Credit Suisse Financial Products (1994-1996). ***** U.K.'s sixth largest bank, Abbey National posted GBP1 billion in losses last year. It is now in the process of restructuring its ailing finances. BRITISH AIRWAYS: Moves to Reinvigorate Premium Accommodation ------------------------------------------------------------ British Airways is hiring 300 cabin crew to again open its first-class service on some flights, according to the Times. It will also hire an additional 100 staff for check-in desks. This was after it cancelled first-class return services from Heathrow to both Miami and Cairo on the weekend of September 13, angering passengers who had brought tickets for the premium accommodation but were transferred into economy class. The first-class cabin was closed on the outward journey from Heathrow to Tokyo. British Airways suffered a series of rostering problems during summer, and even resorted to hiring planes and crew to maintain services. A rise in social sickness -- skiving -- had exacerbated the problem, Mike Street, British Airways' operations director said during the airlines' annual meeting in June. British Airways, which has lost almost 12,000 jobs over the last two years, cannot afford to "upset" premium passengers after a wildcat strike of workers in summer, the report said. CANARY WHARF: Reuters Rents Office Space in South Colonnade ----------------------------------------------------------- Canary Wharf Group plc has agreed to terms of a lease contract with Reuters over approximately 281,000 sq. ft of space in the building at 30 The South Colonnade, Canary Wharf. Reuters, the global information company, will take over the entire building in the Spring of 2005. Reuters will lease 237,000 sq. ft on a 15-year lease. The additional 44,000 sq. ft will be leased on a separate lease with a 5th-year break exercisable upon payment of a substantial rental penalty as well as a further break at the 10th year. In lieu of granting a rent-free period Canary Wharf Group will agree to take over three of Reuters' leasehold properties with a total exposure equivalent to 2.5 years rent free at 30 The South Colonnade and acquire the freeholds of Reuters' current Head Quarters at 85 Fleet St and the adjoining building at a price of GBP32.3 million with a short leaseback until moving to Canary Wharf in May 2005. Tom Glocer, Reuters CEO, comments: "The proposed new site at Canary Wharf represents an exciting move for Reuters, with our London staff all being housed under one roof for the first time. The new building offers fantastic branding opportunities that will reflect our company culture. A similar move in the U.S. to one key site in Times Square for our New York employees has had a tremendously positive impact on both staff and clients, which we want to replicate in London. In Fast Forward we set out our commitment to deliver great service and create a more efficient company, and by moving to Canary Wharf we can deliver on both those objectives." George Iacobescu, Chief Executive, Canary Wharf Group added: "Reuters is one of the world's and U.K.'s best-known brand names and we are very pleased to be welcoming such a prestigious and innovative company to Canary Wharf. In the era of 24-hours news coverage and real-time information, which is so crucial for many of our tenants, we look forward to welcoming them to our growing list of major media services providers." Paul Reichmann, Executive Chairman, Canary Wharf Group commented: "Reuters' decision to consolidate into one building is further evidence of a continuing consolidation trend by major corporates; their choice of Canary Wharf again illustrates the Estate's popularity and ability to accommodate leaders in business in close proximity to each other." Canary Wharf Group's prime business function is the leasing of Grade A office and retail space at its 86 acre estate some three miles to the East of the Bank of England in the City of London. The estate is synonymous with fine architecture and design - the offices have been built to the highest standards and are set in a approximately 20 acres of landscaped open spaces. Canary Wharf also offers over 600,000 sq ft of shops, bars and restaurants, two Docklands Light Railway stations, a Jubilee Line station and car parks. The estate currently has a daily population of over 55,000, expected to increase to 65,000 by early 2005 as Lehman Brothers, The McGraw-Hill Companies and Bank of America move in. In addition, Clifford Chance have recently started taking occupation of their new headquarters building, whilst Allen and Overy and Skadden Arps Slate Meagher & Flom LLP are moving into new offices within the estate. ***** Canary Wharf, which is currently suffering from the slowdown in the real property market, fell down during the stock market crash of 1987. It was bailed out by a group of banks and then sold. It recovered during the late 1990s but encountered difficulties after the September 11 attacks discouraged interest in skyscrapers. CONTACT: CANARY WHARF GROUP PLC Wendy Timmons Phone: 020 7537 5025 E-mail: Wendy.timmons@canarywharf.com Yasmeen Khan Phone: +44 20 7542 0496 EUROTECH FIRES: Receivers Sell Business as Going Concern -------------------------------------------------------- The joint administrative receivers, Kerry Bailey and Philip Long, offer for sale as a going concern the business and assets of Fibrelux Limited, trading as Eurotech Fires (In administrative receivership). Features: (a) Leading specialists in domestic gas fire technology; (b) 3 acre freehold site incorporating offices, workshop and showrooms, situated in Holywell, North Wales; (c) Innovative new product under development; (d) Turnover currently GBP1.1 million pa (production capacity exceeds GBP3 million pa); Interested parties (principals only) should contact Kerry Bailey or Paul Ashworth at: PKF Sovereign House Queen Street Manchester M 5HR Mobile: 0777 553 2759 Phone: 0161 832 5481 Fax: 0161 832 6307 GLAXOSMITHKLINE PLC: CEO Okays Modifications to Pay Package ----------------------------------------------------------- GlaxoSmithKline Chief Executive Jean Pierre Garnier has agreed to a number of changes to his employment terms, including cuts in his severance package, according to reports. The chief executive's potential GBP22 million pay-off met shareholders revolt at the company's annual meeting in May, forcing the company to drastically change the contract. Mr. Garnier, who will be retiring in four years, is understood ready to cut his two-year notice period, if ousted, to one year, and reduce the level of his compensation. He also accepted stiffer performance targets for his share options. Under the new contract, the clause that overstates his own and his wife's age by three years to enhance pension entitlements will also be revised. Mr. Garnier and John Coombe, finance director, are the only executives at the drug company. Shareholders were asking the CEO to appoint more executive directors, but Mr. Garnier reportedly rejected the idea. NETWORK RAIL: Slashes GBP5 Billion off Budget for Next 5 Years -------------------------------------------------------------- Network Rail has published its Cost Submission to the interim review of track access charges currently being undertaken by the Office of the Rail Regulator. The submission -- effectively Network Rail's request for funding for the next five years -- analyzes the likely impact on costs and performance of the recent proposals from the Rail Regulator and the SRA. The paper, which takes on board the combined impact of implementing certain proposals from the ORR and SRA, concludes that Network Rail should spend GBP24.5 billion over the next five years, a reduction of GBP5 billion compared to the previous forecast published in June. Today's Cost Submission confirms that train punctuality will reach 90% at the end of this period. The GBP5 billion expenditure saving is in addition to the GBP5.5 billion efficiency savings announced in June. This means that, in total, Network Rail has reduced April 2004 - March 2009 projected expenditure by GBP10.5 billion, or 30%. The new spending reductions are primarily achieved in two ways: (a) A two-year deferral of some renewals, in line with the emerging conclusions of the Rail Regulator. (b) A differentiated approach to network outputs which allows for savings to be made in both maintenance and renewal expenditure on the more lightly-used routes, in line with the Strategic Rail Authority's draft Network Output Specifications document. Discussions with both the ORR and SRA concerning the West Coast Mainline Upgrade project are ongoing. Speaking upon publication of the Cost Submission, Network Rail Chief Executive John Armitt, said: "Network Rail publishes our funding request for the next five years, delivering savings of GBP1bn a year compared to the previous forecast. The new forecast takes on-board many of the recent proposals from the SRA and ORR. This consensus on the way in which we might achieve affordable spending is indicative of the constructive way in which the whole interim review process is being managed. "The cost proposals we publish today represent value for money and demonstrate Network Rail's commitment to efficiency and affordability on the railway." For illustrative purposes, the Cost Submission also models the impact of deferring renewals beyond two years. The paper concludes that this would begin to have a significant negative impact on performance, roughly halving the rate of performance improvement. Under this model, 90% punctuality would not be achieved until 2012/13, rather than 2008/09 under Network Rail's proposed 'base plan'. ***** Operations Maintenance Renewals West Total (non-West Coast Coast) March 03 plan GBP6.3bn GBP6.6bn GBP17.8bn GBP4.3bn GBP35.0bn June 03 plan GBP5.2bn GBP5.5bn GBP13.9bn GBP4.9bn GBP29.5bn Cost SubmissionGBP5.2bn GBP5.6bn GBP10.0bn GBP3.7bn GBP24.5bn Network Rail is the 'not for dividend' operator of Britain's rail network. Our objective is to provide safe, reliable and efficient rail infrastructure. We own and maintain the tracks, signals, tunnels, bridges, viaducts, and level crossings. We also own the network's 2,500 stations, and manage the largest and busiest. We provide access to the tracks for every passenger and freight train, timetable their journeys, and operate the signaling, which controls their movements. Network Rail is a company limited by guarantee with members instead of shareholders. It is run as a commercial organization, but any operating surplus is re-invested in the rail network. Our core focus is the operation, maintenance and renewal of existing rail infrastructure, with the Strategic Rail Authority taking the lead on enhancement projects. We have set clear targets to improve performance and reduce costs, but safety is always at the forefront of our activities as we rebuild Britain's railway. Details about the Company can be found on the Network Rail web site: http://www.networkrail.co.uk CONTACT: NETWORK RAIL Phone: 020 7557 8292/3 NETWORK RAIL: Regulator Urged to Issue 'Enforcement Order' ---------------------------------------------------------- The Association of Train Operating Companies is planning to ask rail regulator Tom Winsor to impose an "enforcement order" on Network Rail to force it to improve performance. The Telegraph quoted Graham Eccles, head of rail at Stagecoach, the operator of South West Trains, saying: "A year in, there is no real sign of visible progress. At the moment we are bending over backwards to help Network Rail, but if they don't deliver, we are going to come after them." Statistics show only 79% of Network Rail trains run on time. An enforcement order could cancel bonuses for Network Rail's directors, and bring embarrassment to the company, the report noted. Mr. Winsor, who brought the same enforcement order against Railtrack, Network Rail's predecessor, is believed to be aware of the discussions, but declined to comment. Network Rail agreed recently to cut its planned spending by GBP5 billion over five years, but this heightened concerns that it could further jeopardize performance. ROYAL & SUNALLIANCE: Investors OK Rights Issue, But Assail Cost --------------------------------------------------------------- Shareholders of Royal & SunAlliance overwhelmingly approved the planned rights issue at a special meeting Monday. A total of 97% of the shareholders voted to authorize the GBP1 billion-capital increase, and also gave the directors authority to allot shares. About GBP800 million of the new funds will be pumped into reserves to cover spiraling asbestos and environmental claims. However, The Telegraph said the U.K. company came under fire at the meeting as shareholders questioned the rescue rights issue and criticized the "enormous" commissions being paid to underwriters. It quoted shareholder saying: "Why should shareholders give you more money, only to let you fill up holes caused by mismanagement?" Royal & Sun is paying investment banks Merrill Lynch, Goldman Sachs and Cazenove commissions of up to GBP35 million to fully underwrite the issue. The basic commission represents 3% of the funds being raised, with an additional commission of 0.5% payable under undisclosed conditions. The total is more than double the usual rate of 1.5% and comes despite the issue being heavily discounted at 70p, the report noted. SCOTTISH WIDOWS: Sacks Long-time CEO; Parent Wants New Face ----------------------------------------------------------- Lloyds TSB, the bank that bought Scottish Widows in 2000, axed the insurer's CEO Mike Ross Tuesday. Mr. Ross, who became Scottish Widows' chief executive in 1991 and Lloyds TSB deputy chief executive in March 2000, will leave on September 30 bringing with him compensation of GBP430,000 and a share of this year's bonuses. Scottish Widows has been in dire straits for the past three years, weighing down on Lloyds TSB's dividend all the while. A Lloyds TSB spokesman said: "We have terminated his contract. We believe it is time to have a new person. This is about putting in place a strategy for Scottish Widows that is going to go on for the next five years." Lloyds TSB's director of information technology and operations, Archie Kane, will replace Mr. Ross. He will also be acting as group insurance and investments director. * Dewey Ballantine Launches Italian Practice -------------------------------------------- International law firm Dewey Ballantine LLP announced that, as the next stage in its planned European expansion, it will open offices in Milan and Rome and an Italian desk in the Firm's London office. The launch of the Italian practice, which will take effect on October 1, 2003, follows the hiring of leading Italian partners Bruno Gattai from Simmons & Simmons in Milan, Stefano Speroni from Linklaters allied Milan firm Gianni, Origoni, Grippo and Partners, and Ugo Giordano, formerly with Merrill Lynch. In addition, Nicola Brunetti, former partner in the Milan office of Simmons & Simmons, Giovanbattista Santangelo, former partner of the Rome office of Simmons & Simmons, and Stefano Catenacci, formerly of Simmons & Simmons in Milan, will join the Firm's Italian offices. Approximately 20 lawyers will initially staff Dewey Ballantine's Italian practice. Dewey Ballantine's Italian practice will further strengthen the Firm's capabilities in Europe by providing clients with transactional advice in the Firm's core practice areas of mergers and acquisitions (M&A), private equity, project finance, corporate finance, structured finance, capital markets, securities and tax. "The launch of our Italian practice, a fundamental part of our European strategy, will increase our global presence and will enable us to capitalize on the many legal service opportunities existing in the burgeoning Italian market," said Morton A. Pierce, chairman of Dewey Ballantine's Global M&A Group. "Bruno, Stefano and Ugo are recognized as top practitioners in their respective fields and will be a tremendous asset to our corporate and investment banking clients." Bruno Gattai, one of Italy's top M&A and private equity lawyers, will head Dewey Ballantine's Italian Practice and will become the managing partner of the Milan office. While at Simmons & Simmons in Milan, Mr. Gattai served as managing partner and as a member of the Management Committee. His practice has included the representation of financial institutions such as ABN AMRO, BNP Paribas, Permira, Centrobanca, 21 Investmenti and Meliorbanca, Italian insurance company RAS and corporate clients such as Barilla and Falck. Stefano Speroni joins Dewey Ballantine as the partner responsible for the Rome office and will divide his time between the Milan and Rome offices. Mr. Speroni, another top M&A specialist, has represented clients such as Italian communication company Wind, Treasury-owned conglomerates Finnmecanica (Defence) and Enel (Energy), leading Italian bank Banca IMI and private equity house 3i. Mr. Speroni has a wide and diversified practice also covering equity capital markets, banking and securitization. Based in the London office, partner Ugo Giordano will manage the Firm's Italian desk in London. Mr. Giordano, as one of the leading lawyers advising on the first issuances of foreign structured debt in Italy, brings cutting-edge experience in securitization, structured finance and sophisticated financial products to Dewey Ballantine. He has worked for Italian law firm Chiomenti and for Clifford Chance and, prior to joining Dewey Ballantine, spent two years with Merrill Lynch in London. Mr. Giordano's practice has involved the representation of financial institutions such as ABN AMRO, BNP Paribas, Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, Lehman Brothers and Morgan Stanley. Nicola Brunetti, an M&A and energy lawyer, and Stefano Catenacci, a private equity, bankruptcy and general corporate lawyer, will be based in Dewey Ballantine's Milan office. Giovanbattista Santangelo, whose practice focuses on M&A and capital markets, will be based in the Rome office. James D. Simpson, Dewey Ballantine's London-based Management Committee member and head of the European Project Finance Group said, "The opening of the Italian offices underlines the Firm's commitment to Europe and builds on the successful path we took in 2002 with the launch of our German desk and Frankfurt office, the acquisition of Hunton & Williams' Warsaw office and the continued expansion of our London office. The vast expertise and client experience brought to the Firm by the new Italian partners offer us an exceptional opportunity to develop our growing European business." Bruno Gattai said, "Dewey Ballantine is a firm with a clear strategy and a sophisticated international presence. This major new venture allows us to move forward aggressively in Europe and service the needs of our clients in an evolving and dynamic Italian market. Dewey Ballantine's global strength in the investment banking and finance communities will enable the Italian practice, from the outset, to be one of the leading U.S. law firms in Italy." About Dewey Ballantine Dewey Ballantine LLP, founded in 1909, is an international law firm with more than 550 attorneys located in New York, Washington, D.C., Los Angeles, East Palo Alto, Houston, Austin, London, Warsaw, Milan, Rome, Budapest, Prague and Frankfurt. Through its network of offices, the Firm handles some of the largest, most complex corporate transactions, litigation and tax matters in such areas as M&A, private equity, project finance, corporate finance, corporate reorganization and bankruptcy, antitrust, intellectual property, sports law, structured finance, and international trade. Industry specializations include energy and utilities, healthcare, insurance, media, consumer and industrial goods, technology, telecommunications and transportation. ********* 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 * * *