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          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, April 20, 2000, Vol. 0, No. 8
  
                              Headlines


           [CAUTION: This Newsletter Contains Unedited Text]

* B E L G I U M *

UNION MINIERE: To Sell Cadmium Unit

* G E R M A N Y *

ATECS AG:  Sale to be Carried Out in Two Stages
DEBITEL: Need Strategic Alliance
DEUTSCHE TELECOM:  Net Profits Fell by 82%
NOVOLABS GMBH: Acquired by Heyde AG

* S P A I N *

COCA-COLA: Lost 10,092 Million Pesetas in the First Trimester
IBERDROLA: Will Not But Florida Power & Light

* U N I T E D   K I N G D O M *

AB FOODS: Hit by Tough Trading Conditions
BRITISH NUCLEAR: Two Year Action Plan to Get Its Business Back on Track
DOLLAR LAND: Collapsed of 2 Companies with Debts of More than �11 Mln.
NISSAN CAR:  Seeks 30 pct Cost Custs in UK
SEET: To Scale Down Fashion Clothing Div. After Bad Year's Trading
UPTON & SOUTHERN: Sale of Its Retailing & Property Division
VERSAILLES: Little Left for Creditors
WALKER GREENBANK: Faced Difficult Trading in 1999
WH SMITH: Hit by Declining Music Sales


           [CAUTION: This Newsletter Contains Unedited Text]

=============
B E L G I U M
=============


UNION MINIERE: To Sell Cadmium Unit
-------------------------------------------

Reuters   April 18, 2000

Belgian non-ferrous metals producer Union Miniere SA said on Tuesday it
had agreed to sell its cadmium composites unit to conglomerate
Floridienne SA .
Union Miniere said in a statement it would sell Produits Chimiques Wiaux
to Floridienne Chimie, a unit of the Belgian conglomerate.
Under the terms of the deal, the value of which was not disclosed,
Floridienne would produce cadmium oxyde and powder, while Union Miniere
would sell the composites on the rechargeable battery market.


=============
G E R M A N Y
=============


ATECS AG:  Sale to be Carried Out in Two Stages
-------------------------------------------

HANDELSBLATT ENGLISH SUMMARY, Wednesday, 19 April 2000

Atecs sale to be carried out in two stages The sale of Mannesmann AG's
engineering and automotive unit Atecs AG to a consortium of Siemens AG
and Robert Bosch GmbH is to be carried out in two stages. Initially the
buyers will take a combined stake of 50% plus two shares for which they
will pay 3.116bn euros by September 30. By the end of 2003, the
consortium will pay the remainder of between 3.657bn euros and 3.087bn
euros, "depending on the economic performance" of Atecs. The IG Metall
metals and electronics union, whose president Klaus Zwickel is deputy
chairman of Mannesmann's supervisory board, said it believed Atecs'
future had been secured. It said the buyers had given guarantees that
the company would be managed as one unit for at least three years.
Operational redundancies had been ruled out under an integration
agreement which runs until the end of 2003, it said. Siemens and Bosch
had further pledged to continue operations at all of Atecs' production
sites and maintain an independent headquarters in D�sseldorf.


DEBITEL: Need Strategic Alliance
-------------------------------------------

Financial Times   April 18, 2000

Debitel, the German mobile phone company owned by Swisscom, said on
Tuesday it was in talks with several potential strategic partners.
However, in an interview with CNBC, Herbert Kauffman, Debitel's chief
financial officer, would not be drawn on the identity of the companies.
Reports have suggested the group is in talks with one or two US
carriers, including SBC Communications, and NTT of Japan.
A strategic alliance would help Debitel in its bid to secure a licence
in the German third generation mobile auction. Debitel had agreed
originally to apply jointly for a licence with MobilCom, but the
agreement collapsed when France Telecom took a stake in MobilCom.
< summer. this begin to set is auction The bidding. 3G finance shares
Debitel some shedding consider may it previously said officer,
Swisscom's Schnell, David However, partners. strategic possible the of
identities reveal also refused has Debitel, cent per 74 owns that
carrier Swiss Swisscom,
With prices predicted to rise as high as those in the ongoing UK
auction, where individual bids are now worth between �3.7bn and �5.65bn,
Swisscom and Debitel will need to look for ways to fund their
participation. Last week Swisscom announced its intentions to float part
of its Swiss mobile arm.
Debitel's comments on strategic partners came on the same day as it
reported revenues of E1.96bn ($1.88bn) for 1999, a 34 per cent increase
on the previous year. Net income rose 42 per cent to E34m, and earnings
before interest and tax rose to E72m, up 12 per cent.
Its number of subscribers increased by 53 per cent in 1999, bringing the
total to about 4.7m. Of these, 3.1m customers were in Germany and 1.6m
abroad.
Debitel is the third-largest mobile operator in Germany, and its
customer base has been expanding by about 10 per cent each month. The
company has activities in the mobile, fixed-line and internet areas, but
its main focus is in mobile telephony.



DEUTSCHE TELECOM:  Net Profits Fell by 82%
-------------------------------------------

Financial Times   April 18, 2000

Deutsche Telekom's net profits fell by 82 per cent from DM652m to DM115m
(E59m, $56m) during the first two months of this year compared with the
same period in 1999, despite an 11 per cent rise in turnover to
DM12.2bn.
Deutsche Telekom declined to comment on the figures, obtained by
Financial Times Deutschland from an internal Telekom document. J�rgen
Kindervater, director of communications at Telekom, confirmed that
profits had fallen during January and February, but added that the drop
"was due in large part to the regulations governing the German
telecommunications market".
Joeri Soels, analyst at Bank Julius B�r, said that the price war in
German fixed-line telecoms was forcing Telekom to "massively lower
prices on fixed-line to wireless and on international calls, just to
limit the loss of market share".
The group's costs increased by 60 per cent during the first two months
of this year. Higher write-offs on goodwill incurred in the takeover of
One-2-One, the UK mobile telephony group, added to the negative effect.
Write-offs on fixed assets also rose.
Telekom's worsening performance is reflected in its figures for 1999,
due to be released today. These show pre-tax earnings dropping from
DM5.1bn to DM2.9bn on flat turnover of DM35.5bn.
Pre-tax profit from fixed-line communications dropped from DM4.8bn in
1998 to DM2.3bn. Outside Germany, the group incurred losses of DM300m
last year compared with a DM200m profit.
Activities in which Telekom improved its performance included wireless
communications, where pre-tax profits rose from DM600m to DM1bn, radio
and broadband communications, where losses were reduced from DM300m to
DM100m, and sales of handsets and phones, where the company broke even,
after posting losses of DM100m.
Staffing costs fell from DM2.97bn to DM2.94bn. The company exceeded
internal projections, which had budgeted for losses of DM153m in 1999.


NOVOLABS GMBH: Acquired by Heyde AG
-------------------------------------------

European Investors   April 18, 2000

BRUSSELS -- German system integrator Heyde AG (HEY.FNM) announced on
Tuesday the acquisition of software company novolabs GmbH based in
Dusseldorf.
Financial details about the deal were not disclosed.
Novolabs developed the Web-sharing platform dice 4, the first integrated
teamwork- and e-business portal. The program is based on profile- and
policy management that determines "what, when, to whom and with which
rights" information is distributed. Dice 4 contains a wide range of
content management, as well as collaborations- and e-commerce functions
for personalized Web pages.
On the Neuer Markt Heyde shares were last up 1.8% at 168.99 euros


=========
S P A I N
=========

COCA-COLA: Lost 10,092 Million Pesetas in the First Trimester
-------------------------------------------

Cinco Dias   April 19, 2000  

Coca-Cola lost 58 million dollars (about 10,092 million pesetas) in the
first trimester. The numbers, are not only the result of the
extraordinary provisions made by the multinational to reduce their group
and to come off themselves assets since before these exceptional loads,
the benefits fell a 28% by the smaller demand of Coca-Cola Light and
Sprite. This is the second consecutive quarterly loss of the company of
refreshments and for the first time the sales, of 4,390 million dollars,
backed down a 0,2%.


La Coca-Cola perdi� 10.092 millones de Pesetas en el primer trimestre
La Coca-Cola perdi� 58 millones de d�lares (cerca de 10.092 millones de
Pesetas) en el primer trimestre.  Los n�meros, son no solamente el
resultado de las provisiones extraordinarias hechas por la multinacional
para reducir a su grupo y para salir s� mismos los activos puesto que
antes de estas cargas excepcionales, las ventajas cayeron un 28% por la
demanda ms peque�a de la luz y de Sprite de la Coca-Cola.  �sta es la
segunda p�rdida trimestral consecutiva de la compa��a de refrigerios y
para la primera vez que las ventas, de 4.390 millones de d�lares,
movieron hacia atrs abajo de un 0.2%.


IBERDROLA: Will Not But Florida Power & Light
-------------------------------------------

La Gaceta delos Negocios   April 19, 2000

The president of Iberdrola, I6nigo de Oriol, the past announced Monday
to his advice who will not send the OPA anticipated on Florida Power &
Ligth (FPL) in order not to break the unamimity in the decisions of the
maximum device of administration of the company.
With the announcement, Oriol avoided to put under the proposal voting in
the advice and that such voting generated divisions internal, although,
according to informed sources affluent, the proposal of acquisition of
FPL had obtained most of the votes.
However, the president emphasized that Iberdrola will maintain the
future in all the plans of growth designed by its executives and who
will preserve the independence of Iberdrola as opposed to any particular
interest of some of its shareholders.
Opposition
The option to buy FPL provoked the interest opposed from the advice,
specially of the named administrators to proposal of the BBVA,
proprietor of 10% of the titles and historical shareholder of the
electrical company with seat in Bilbao.
According to sources next to the company, Oriol shuffled its decision in
terms to heft the possibilities of growth by means of the mentioned
acquisition, on the one hand, and the effect that on the price of the
quotation of the electrical one could have a division in the advice, on
the other hand.
Finally, and in the unfavorable stock-exchange surroundings that live
the assembly on the electrical sector, the president of the company
chose to preserve his shareholders of risks associated to internal
frictions, although, in fact, already he counted on the financing
necessary to acquire the American company.
Concretely, the Chasse Manhattan led a union of moneylenders that made
available of the president of Iberdrola more of a trillion of pesetas to
take upon maturity the acquisition of FPL.
Peculiarly, between the banks that comprised of the union of
moneylenders that reunited the American financial organization appeared
the BBVA, although it was against to the operation in the advice of the
electrical one.
The evaluated expectations of success in the executive body of the
company extended, a priori, to the general meeting whose call would be
necessary to approve an extension of capital that made possible the
payment leaves from the price of the titles of FPL in actions of
Iberdrola.
In this surroundings, the own Oriol represented 52.3% of the present
votes and represented in the last ordinary meeting of Iberdrola,
combining therefore 26.1% of the share capital, according to it pointed
out the secretary of the advice, Ignacio Pinedo, of public form during
the celebration of the together referred one of shareholders.
Additionally, the rest of the present institutions in the capital of
Iberdrola - the Basque box BBK and power lusa EdP- framed the operation
within the reasonable ambitions of internationalization of a company
and, in any case, a reagent for the quotation of their titles in stock-
market.
Both adhesions and the expectations formed around the publicitada
purchase located the opposition of the Basque organization of credit in
a complex position that, in extremis, the president of Iberdrola has
saved to them, when not putting under these plans the voting of the
administration advice.


El presidente de Iberdrola, I�igo de Oriol, anunci� el pasado lunes a su
consejo que no lanzar la OPA prevista sobre Florida Power & Ligth (FPL)
en orden a no romper la unanimidad en las decisiones del mximo �rgano
de administraci�n de la compa��a.
Con el anuncio, Oriol evit� someter la propuesta a votaci�n en el seno
del consejo y que tal votaci�n generase divisiones internas, pese a que,
seg�n fuentes bien informadas, la propuesta de adquisici�n de FPL
hubiera obtenido la mayor�a de los votos.
No obstante, el presidente puntualiz� que Iberdrola mantendr en el
futuro todos los planes de crecimiento dise�ados por sus ejecutivos y
que preservar la independencia de Iberdrola frente a cualquier inter�s
particular de alguno de sus accionistas.
Oposici�n
La opci�n de comprar FPL suscit� el inter�s opuesto de parte del
consejo, especialmente de los administradores nombrados a propuesta del
BBVA, propietaria del 10% de los t�tulos e hist�rico accionista de la
compa��a el�ctrica con sede en Bilbao.
Seg�n fuentes pr�ximas a la empresa, Oriol baraj� su decisi�n en
t�rminos de sopesar las posibilidades de crecimiento mediante la citada
adquisici�n, por un lado, y el efecto que sobre el precio de la
cotizaci�n de la el�ctrica pudiera tener una divisi�n en el seno del
consejo, por otro.
Finalmente, y en el entorno burstil desfavorable que vive el conjunto
del sector el�ctrico, el presidente de la compa��a opt� por preservar a
sus accionistas de riesgos asociados a fricciones internas, aunque, de
hecho, ya contaba con la financiaci�n necesaria para adquirir la empresa
estadounidense.
Concretamente, el Chasse Manhattan lideraba un sindicato de prestamistas
que puso a disposici�n del presidente de Iberdrola ms de un bill�n de
pesetas para llevar a t�rmino la adquisici�n de FPL.
Curiosamente, entre los bancos que formaban parte del sindicato de
prestamistas que reuni� la entidad financiera americana figuraba el
BBVA, pese a que se opuso a la operaci�n en el consejo de la el�ctrica.
Las expectativas de �xito evaluadas en el seno del cuerpo ejecutivo de
la empresa se extend�an, a priori, a la junta general cuya convocatoria
ser�a necesaria para aprobar una ampliaci�n de capital que posibilitase
el pago parte del precio de los t�tulos de FPL en acciones de Iberdrola.
En este entorno, el propio Oriol represent� el 52,3% de los votos
presentes y representados en la �ltima junta ordinaria de Iberdrola,
aunando as� el 26,1% del capital social, seg�n hizo constar el
secretario del consejo, Ignacio Pinedo, de forma p�blica durante la
celebraci�n de la referida junta de accionistas.
Adicionalmente, el resto de las instituciones presentes en el capital de
Iberdrola -la caja vasca BBK y la energ�tica lusa EdP- enmarcaron la
operaci�n dentro de las razonables ambiciones de internacionalizaci�n de
una empresa y, en todo caso, un reactivo para la cotizaci�n de sus
t�tulos en la bolsa.
Ambas adhesiones y las expectativas formadas en torno a la publicitada
compra situaban la oposici�n de la entidad de cr�dito vasca en una
compleja posici�n que, in extremis, el presidente de Iberdrola les ha
ahorrado, al no someter estos planes a la votaci�n del consejo de
administraci�n.

Cinco Dias  April 19, 2000

The company threatens do without the bank to make an investment of 1.8
trillions
The radical opposition of the BBVA to the purchase by Iberdrola of the
Flowery American Power, an operation valued in 1,8 trillions of pesetas,
does not seem to restrain the plans of the electrical Basoue. Iberdrola
has threatened doing without the support of the bank, partner of
reference - with a participation of 9% - and looking for other allies to
remove ahead the purchase. In the last meeting of the commission
delegated of the electrical one, celebrated day 12 the past, patent
became the shock between both parts. The BBVA considers that the
acquisition of Florida Power contributes size benefits, only is
expensive and would make difficult the financing attainment, when
getting worse the qualification of the electrical Spanish. The president
of Iberdrola, I6nigo de Oriol, recriminated to the bank his attitude
during the meeting, with bitter expressions, and he got to him to accuse
to have extracted strong benefits of the electrical one. Oriol
reproached to Jose Domingo Ampuero, representative of the bank, its "
systematic rejection " to operations raised by Iberdrola. The
acquisition of Florida Power would imply an extension of capital valued
in a trillion of pesetas, since it would finance to 50% with the
transmission of actions and the rest in cash. The premium for the
shareholders of the electrical American would suppose 28% of the value
of quotation at the moment of the announcement.




===========================
U N I T E D   K I N G D O M
===========================


AB FOODS: Hit by Tough Trading Conditions
-------------------------------------------

Financial Times    April 18, 2000

Associated British Foods, one of Europe's largest food companies, said
on Tuesday that interim profits had been hit by tough trading conditions
and that it expected difficult market conditions to persist "for the
foreseeable future".
The company on Tuesday reported profits before tax up 53 per cent to
�167m ($264m) for the 24 weeks ending March 4 2000, compared with �68m
last year. However, these figures were distorted by an exceptional cost
for the same period last year of �74m.
Adjusting the figure for exceptional items and amortisation of goodwill,
the company's profit before tax declined by 8 per cent from �185m to
�170m.
The company, whose brands include British Sugar, Ryvita crispbread and
Twinings tea, said: "Our operating assumption is that difficult market
conditions in most of our sectors will be with us for the foreseeable
future and this has reaffirmed our intent to focus on businesses in
those areas that can best provide growth."
Analysts had expected a dip in performance. The group has been hit by
the strength of sterling, while investment income has fallen. However,
prior to the results appearing, analysts were optimistic that these
figures might mark a low point.
Group turnover increased by 4 per cent to �2.07bn (�1.99bn) while
operating profit rose from �68m to �149m. Earnings per share grew from
5.8p last year to 14.7p. The board has declared a first interim dividend
of 4.25p per share, the same amount as last year, which will be paid on
September 1.
Associated British Foods has businesses in Australia, New Zealand, China
and the United States. Its businesses range from agricultural processing
and services, to ingredients and oils as well as grocery products and
clothing retail.
AB Foods' shares fell 3 per cent to 378p at the close of trading on
Tuesday.


BRITISH NUCLEAR: Two Year Action Plan to Get Its Business Back on Track
-------------------------------------------

The Times    April 19, 2000

THE management and safety of the troubled Sellafield nuclear
reprocessing plant were radically overhauled yesterday as British
Nuclear Fuels (BNFL) announced a two-year action plan to get its
business back on track.
BNFL called the shake-up, which followed a damning report by the nuclear
watchdog in February, a "fresh start". An entire raft of top-level
management was swept out by the changes, which will see more than half
of the board replaced.
All six non-executive directors are to leave the company - four in
August, one by the end of the year and the last by the end of 2001. Ross
Chiese, board member and finance director, is also to leave, along with
the directors of both human resources and safety.
BNFL detailed how it intended to address safety deficiencies at its
Sellafield facility. Norman Askew, newly appointed chief executive,
said: "This is a defining moment, the beginning of the recovery
process." Mr Askew added that 70 new safety-related jobs were being
created. An organisational change that would ensure "clear and
unambiguous accountability".
Brian Watson, Sellafield site head, becomes director of operations for
the Sellafield plant, while a new expanded safety director's job has
also been created.
Helen Liddell, Trade and Industry Minister, welcomed the plan. "I
believe [the changes] represent the kind of positive response that is
needed."




DOLLAR LAND: Collapsed of 2 Companies with Debts of More than �11 Mln.
-------------------------------------------

The Times    April 19, 2000

WILLIAM STERN, the property developer who was once Britain's biggest
bankrupt, was yesterday disqualified from acting as a director for 12
years, following the collapse of two companies involved in his latest
business venture with debts of more than �11 million.
A High Court judge held that Mr Stern traded at the risk of creditors,
continued trading when the companies were insolvent and drew substantial
undue remuneration and benefits from the companies' funds.
Mr Justice Lloyd, who said Mr Stern had lied in parts of his evidence
and in other respects had displayed "arrogance" and a fundamentally
irresponsible attitude to his duties, ruled that he was plainly unfit to
be concerned in the management of a company.
Mr Stern's son, Mark, 39, a director of both companies, was barred from
directorship for four years after the judge held he failed to have
proper regard to his duties and wrongly abdicated his responsibilities
to his father. The judge said Mark Stern, an honest and frank witness,
knew little of what was going on.
The companies, Dollar Land Management (later called Kensington
Management Services) and Westminster Property Management, were part of
the Dollar Land Group which Mr Stern helped to set up after his
discharge from bankruptcy in 1985.


NISSAN CAR:  Seeks 30 pct Cost Custs in UK
-------------------------------------------

Reuters   April 19, 2000

The Nissan car company's British chief said components manufacturers
would have to cut prices by 30 percent if it were to keep making its
Micra model in the UK, newspapers reported on Wednesday.
John Cushnaghan, managing director of Nissan Motor Manufacturing (UK)
Ltd, also called on the government to move closer to the euro to lift
"severe and imminent" threats to the UK motor industry.
"We can only expect to continue with the next-generation Micra if we
demonstrate a cost base that is better than our global competitors," he
said at a car conference near the company's factory in Sunderland,
northeast England, the Daily Telegraph reported.
"I have suggested internally that we achieve 30 percent cost savings,
and we are asking components suppliers to do the same."
His comments mean Nissan in the UK will have to outdo by 10 points the
20 percent cost savings target set by Nissan worldwide in its "global
revival plan", the newspaper said.
Nissan companies all over the world are competing for the new Micra
contract, which runs from 2003, it added.
Cushnaghan reiterated Nissan's complaints about the level of the pound
versus the euro, saying this was a "heavy burden" for Nissan and its
components suppliers.
"UK manufacturing is trying to compete globally with an unsupportable
burden on its back," The Times quoted him saying. Competitors were able
to make better strategic use of their currencies, Cushnaghan said.
"The dice are heavily loaded against UK-based companies and the dangers
are both severe and imminent."
The warning follows BMW AG's claim that Britain's indecision on joining
the euro was a reason why it decided to sell Rover.


SEET: To Scale Down Fashion Clothing Div. After Bad Year's Trading
-------------------------------------------

CityWire   April 18, 2000

Seet to scale back fashion retailing arm Clothing supplier Seet scaled
down its fashion clothing division after a bad year's trading which hit
profits.

Turnover was marginally up to �32.6 million from �31.3 million, but pre-
tax profits dropped by over a quarter to �660,000 from �903,000. This
profit figure included a receipt from a discontinued business of
�75,000.

Seet's (SEET) schoolwear operations made steady progress. Ballycare
Special Products, which makes specialist and protective clothing, saw
sales growth of 18% though competition has put pressure on margins.
However, the fashion clothing division was affected by problems in the
High Street with competition high and demand low. The group scaled back
the operation which incurred staff and development costs.

The group managed to increase net assets per share to 37.28p, up from
35.65p. The dividend remained unchanged at 0.6p per share.

Chairman Neil Stevenson said he saw no indications that the problems in
the clothing industry would diminish. The group is therefore focusing
its activities on sourcing capabilities and investing in new technology.

The shares were down 1.5p to 19.5p on the day. This represents a year
low, down from 28p in late January. c2000 CityWire.co.uk


UPTON & SOUTHERN: Sale of Its Retailing & Property Division
-------------------------------------------

CityWire   April 18, 2000

Upton & Southern closer to sale Retailers Upton & Southern said the sale
of its retailing and property division could be complete by May 2000 and
its human resources consultancy business has seen eight-fold growth in
the six months to 29th January 2000.

Citywire.co.uk reported in January that shrewd investor Bob Morton had
taken a stake in the company and advised profit-taking at the 11p level
due to the risk that the strategy and the sale of the retail and
property business may not come off. The shares were unchanged at 6p this
morning.

Upton & Southern (UPTN) has stated that it is to exit retailing and
property investing to concentrate on its human resources business Garner
International. It has received an approach from a private investor which
may or may not lead to the sale of the retail side of the business E
Upton & Sons and the property company Uniquegrid. The group said today
that the sale and purchase agreement should be concluded in early May.

Garner International has seen pre-tax profits improve more than eight
fold over the period. The group is developing good relationships with
some of the UK's largest listed companies and are now recruiting for e-
commerce positions at the top level. Chairman, Andrew Garner believes
this growth will continue.

Pre-tax profits were �7,000 up on last year at �179,000. Though like for
like sales increased by 3.25% over the period, the department stores to
whom Upton & Southern supplies are experiencing real difficulty with
volume and margin. Innovations in product sourcing have been introduced
to compensate for margin slippage in a difficult retailing environment.
The group did not recommend a dividend for ordinary shareholders.
c2000 CityWire.co.uk



VERSAILLES: Little Left for Creditors
-------------------------------------------

Reuters    April 18, 2000

British trade finance company Versailles booked 69 million pounds
($109.2 million) of fictitious transactions before its collapse this
year, the group's receiver found, Wednesday's Financial Times said.
The receiver, PcW, is expected to tell a meeting of creditors on
Wednesday that it will be able to collect five million pounds or less of
100 million pounds of debts owed to Versailles, the FT said.
"It was a bit of a shocker," the FT quoted a person close to the case as
saying. "There has been a misrepresenatation of the business over a
substantial period of time."
PcW concluded Versailles had been the subject of a fraud and issued a
writ against Finance Director Frederick Clough alleging conspiracy to
defraud and other charges, the paper said.
Trading in Versailles shares was suspended in December, a Serious Fraud
Office enquiry began in January and the group was placed in receivership
two days later. ((Richard Baum, London newsroom, +44 020 7542 3214,
richard.b.baum@reuters.com)) ($1=.6319 Pound)


WALKER GREENBANK: Faced Difficult Trading in 1999
-------------------------------------------

CityWire  April 18, 2000

Walker Greenbank up against it Walker Greenbank faced difficult trading
in 1999, compounded by the strength of sterling compared to the euro.

The group was forced to close its Dutch, French and German businesses in
the period at a significant cost to the company.

Still, Walker (WGB) delivered a reasonably robust financial performance
with pre-exceptional profits to 31 January of �1.72 million against
�670,000 the previous year. An exceptional gain of �1.04 million was
realised from the sale of property but this was offset by a �2.53
million restructuring charge.

Earnings per share fell to 1.3p from 3.33p. The final and total dividend
is 2p, unchanged on the previous year.

Aiden Connolly, chief executive at the wall coverings and fabrics group,
says: `The improvement in the performance of our underlying business is
very encouraging given the difficult circumstances in which we had to
operate this year'.

`Restructuring will continue and I am confident the recovery in our
performance will continue as well'.

Walker's shares were 1p higher at 37p this morning, having risen from
yesterday's 12-month closing low of 36p. They stood at 67.5p last
August. c2000 CityWire.co.uk



WH SMITH: Hit by Declining Music Sales
-------------------------------------------

CityWire  April 18, 2000

WHSmith hit by declining music sales WH Smith has been hit by poor
record and video sales as the Internet offered cheaper goods, reporting
interim profits below market expectations.

Pre-tax profits for the six months to 29 February 2000 were �101
million, down from �105 million last year and below Warburg Dillon
Read's forecast of �102.5 million. Sales in books, stationary and
magazines were all up, but margins were squeezed in the music and video
markets and sales dropped 13% and 8% respectively. This reduced profits
by �8 million.

WHSmith (SMWH) profits were also brought lower by �2 million of
investment to develop on-line trading. Earnings per share were 29.2p,
down from 30.1p last year. The group declared an increased dividend of
6p, an increase of 4% though analysts had hoped for around 6.3p.

WHSmith has seen a 60% growth in online sales to �4 million. The group
secured a number of strategic alliances in order to increase the number
of online users; these included deals with BT Easicom and BT WAP. There
is also an online offer through Carlton which provides online
transactions, this will reach Carlton's �20 million viewers. It will
also be the bookseller on Telewest's broadband interactive TV services.

Supply problems in 'Beanie Babies' affected results in the US. Changes
in store format and buying procedures in hotels have also caused some
disruption. Comparable sales were flat with profits down by �3 million
to �3 million. Sales in Asia grew 20% and the group has just opened
stores at Sydney International Airport.

Chief Executive Richard Handover said that he had 'enormous confidence'
in the potential for WHSmith. The group is moving away from its music
and video business; Handover believes the group have a 'strong consumer
brand and robust retailing business'.

WHSmith shares have dropped dramatically over the past 12-months, though
have performed reasonably well this year. The shares closed yesterday at
374.75p, having hit rock bottom in February at 288p.

Gilbert Elliot and Seymour Pierce, the most recent broker comments on
the stock, see WHSmith as a buy and a strong buy respectively. c2000
CityWire.co.uk




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