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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

                Friday, April 28, 2000, Vol. 0, No. 12
  
                              Headlines

* F I N L A N D *

UPM KYMMENE: International Paper Upsets Champion's Exclusive Bidding

* F R A N C E *

HACHETTE FILIPACCHI: Lagardere Spends $1Bln For Full Control of Co.
SANOFI SYNTHELABO: Record Losses & Fears Totalfina will Sell 35% Stake
WAVECOM SA: 26.6% Loss in Revenues for the First Qtr

* G E R M A N Y *

BASF AG: To Cut 3,900 Jobs
ISION INTERNET: Reports First Quarter Loss of 6.4m Euros

* S P A I N *

HIDROELETRICA CANTABRICA: Shareholders Leave Acquisition Hurdle in Place
ZABALBURU: Need Contributor to Liquidity

* U N I T E D    K I N G D O M *

AMAZON: Losses Increase 5 Folds to $308 million (œ195 million)
BANK OF SCOTLAND: Shares Sank, Wiping Almost œ750Mln Off the Co's Value
BARCLAYS BANK: Shareholders Angry at Slump Share Price & Huge Closures
CARADON PLC: To Sell Bathroom Division
HSBC HOLDINGS: Being Sued for More Than $1 Billion by Japanese Investors
LIMELIGHT GROUP: Possible Management Buyout
ROVER CARS: Workers Visit Germany in Bid to Save Jobs
SOTHEBY'S: Investigation Continues for Possible Price Fixing
TOLWORTH HOSPITAL: In A Major Shake-up of Management


=============
F I N L A N D
=============

UPM KYMMENE: International Paper Upsets Champion's Exclusive Bidding
--------------------------------------------------------------------
Reuters reports that Finnish forest industry group UPM-Kymmene said on
Tuesday it was reviewing its plans to buy U.S. Champion International
(CHA) after a rival bid from International Paper (IP) (IP).

Analysts tell Reuters that UPM-Kymmene (UPM) -- Europe's second biggest
paper and board maker -- must now raise its offer for Champion after
IP's higher bid, or see its plans to grab a big slice of the U.S. paper
market crumble.

U.S. firm IP on Tuesday offered to buy Champion at $64 per share -- $43
in cash and $21 worth of stock -- well above the share's closing price
of $51-7/16 on Monday, and topping the current value of UPM's February
bid.

Champion said its board would consider the new proposal.

UPM-Kymmene was virtually silent, saying only that it was "considering
the situation" in the wake of the unsolicited $6.2 billion bid a day
before UPM reports first-quarter earnings.

"IP has now made a bid that is clearly more attractive than UPM's," said
analyst Antti Suttelin at Handelsbanken. "But I would think that UPM may
be willing to raise its bid within certain limits."

Analysts were divided over the likelihood a new UPM bid to carry out the
paper industry's first major transatlantic merger.

"UPM will probably raise its offer because IP's bid is close to the $66
per share that it originally bid for Champion," said Denis Christie,
analyst at SBC Warburg Dillon Read.

"Management has spent a lot of time on this acquisition, and the number
of other alternative candidates (to be bought) is getting less and
less," he said.

Others were more doubtful about a counter bid.

"This high of a price may be beyond UPM's expectations...The market
seems to think UPM will not raise ts bid and that's why the share price
has reacted positively," said Thomas Saarinen at Aktia Bank.
UPM's share surged on the news of IP's bid, adding as much as 9.5
percent to a session peak of 30.30 before settling back to close up 5.5
percent at 29.20 euros.

While the jump immediately made UPM's offer more valuable, the gains
looked fragile as a counter bid could spoil the rise.

"It's a Catch-22," one analyst said.

                       VALUE OF UPM BID HAS FALLEN

UPM launched its bid for Champion on February 17, offering 1.99 of its
shares for every Champion share and valuing the group at around $6.5
billion at the time, but the value of the bid has fallen as UPM shares
have been dented since then.

UPM's share had lost about 18 percent by its close at the end of last
week.

The UPM bid, originally worth around 67.26 euros per share ($66) based
on its February 16 closing price, is now at around 58.10 euros ($54.05)
per Champion share.

UPM's offer for Champion was the still-fragmented paper industry's first
big proposed transatlantic merger. It was followed just days later by
Finnish-Swedish rival Stora Enso's offer for U.S. Consolidated Papers
(CDP).

The Nordic groups are determined to be among the global leaders, and a
UPM-Champion merger would create the world's third-biggest paper and
board maker after the combined Stora Enso and Consolidated and second-
biggest IP.

Shareholders of UPM and Champion were due to endorse the merger at
extraordinary general meetings on June 14, and analysts said the ball
was now in the court of Champion's board to decide whether it would
abandon or stick with UPM.


===========
F R A N C E
===========

HACHETTE FILIPACCHI: Lagardere Spends $1Bln For Full Control of Co.
-------------------------------------------------------------------
From The Daily Deal, April 25, 2000:

LagardŠre Group SCA, a French defense-to-media group, announced Tuesday
it would spend $1 billion to take full control of magazine publisher
Hachette Filipacchi M‚dias SA.

In a statement, LagardŠre, which already owns 66.4% of Hachette
Filipacchi M‚dias, said it would offer minority shareholders 11 of its
own shares for every 10 shares of Hachette. The offer represents a 17.7%
premium over Hachette's pre-Easter holiday closing price Thursday and a
premium of 20% above the company's average share price for the past
three months. Hachette's board backed the offer.

Arnaud LagardŠre, son of the group's founder, Jean-Luc LagardŠre, said
100% of Hachette would mean "accelerated development in magazines,
notably for external operations."

Lehman Brothers International advised Hachette Filipacchi and Cr‚dit
Agricole Indosuez and Cr‚dit Lyonnais advised LagardŠre.

Lagardere, which has been moving out of the defense sector and investing
in media, seeks to use Hachette's large editorial operations for such
projects as Internet sites and digital TV theme channels. In January,
LagardŠre paid $1.15 billion for a blocking minority stake of 34% in
Canal Satellite, the digital arm of France's Canal+ SA, Europe's largest
pay-TV operation, and also 27.4% of Multithematiques, a program producer
which is also part of Canal+.

In February, LagardŠre obtained more outlets for its editorial content
in Germany, following a share swap with Deutsche's Telekom's T-Online,
an Internet service provider with 4.2 million subscribers. LagardŠre
swapped 99.9% of its third-ranking French ISP, Club Internet, for 6.5%
of T-Online.

In its statement Tuesday, LagardŠre described the purchase of Hachette
as part of an industrywide shift away from traditional broadcasting to
such digital forms as the Internet, digital TV and mobile phones that
would enable Hachette to widen distribution channels for its magazines.
These include Elle, a leading women's magazine, and Paris Match, a mass
circulation European photo news magazine. Other titles include George
and such specialized publications as Car and Driver.

LagardŠre claims a presence in 35 countries, making it among the largest
magazine groups in the world. Canal+ is watched in 11 European and
African countries, while Multithematiques has 25 channels in 14
countries and is linked with AT&T's Liberty Media Corp.

"This second move within a few months will enable the LagardŠre group to
create celebrity, sports and health channels and Internet sites based on
Elle, Car and Driver and others," said Herman Coster, independent media
consultant and analyst in Paris.

Hachette, which had 1999 net profits of $116 million, has announced
plans to increase non-French sales from 60% to 80% of the total.


SANOFI SYNTHELABO: Record Losses & Fears Totalfina will Sell 35% Stake
----------------------------------------------------------------------
Reuters reports that shares in French drugs company Sanofi Synthelabo
(SAN.PAR) posted the biggest losses on the CAC-40 on Wednesday amid
fears that TotalFinaELf (FP.PAR) will shortly sell part of its stake in
the firm.

Earlier this week, the shares had lost 5.36 percent to trade at 41.64
euros.  Shares in Sanofi Synthelabo are close to their year high of
45.05 euros set on April 20.

One fund manager said traders had told him that a placement could be
imminent by TotalFinaElf, which holds 35.33 percent of Sanofi Synthelabo
shares.  

TotalFina Elf has a pact with L'Oreal (OR.PAR), the other main Sanofi
shareholder, giving TotalFina the right to sell 15 percent of the
capital whenever it likes, but keep the rest until 2004.  

TotalFinaElf made no comment.


WAVECOM SA: 26.6% Loss in Revenues for the First Qtr
----------------------------------------------------
From Brussles, European Investor relates that French telecom company
Wavecom SA (N07306.PAR) reported a 26.6% loss in revenues as it
published its unaudited results for the first quarter of 2000 ended
March 31, 2000.  In the first quarter of 2000, the company's total
revenues amounted to 7.2 million euros, down from 9.8 million euros in
the first quarter of last year. The company attributes the decrease to
the completion of a contract with automotive giant Mitsubishi last July.
Wavecom also said it sold no mobile telephones during the first quarter
of 2000.  Compared to the last quarter of 1999 Wavecom claims revenues
increased 9.4%. However, net loss also increased to 4.7 million in the
first quarter of 2000, compared to a net loss of 4.0 million euros in
the fourth quarter of 1999. Loss per share was 35 cents, greater than
the 30 cents loss per share reported in the fourth quarter of 2000.

The greatest part of the company's revenue comes from product sales,
which amounted to 7.1 million euros in the first quarter of 2000. The
sale of 'wismos' (wireless standard modules) increased 75% from 2.0
million euros in the first quarter of 1999 to 3.5 million euros in 2000.
Wireless modem sales were 3.6 million euros in the first quarter of 2000
up 123% from 1.6 million euros in the same period last year.

"I am very pleased with Wavecom's results for the first quarter of this
year," said Wavecom's chairman, Michel Alard in a prepared statement.
"We have continued to execute our strategy of targeting high growth new
and emerging markets and developing new applications for our 'wismo'
modules."

On the Nouveau March‚, Wavecom's shares were down 1.0% trading at 89.10
euros.


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

BASF AG: To Cut 3,900 Jobs
--------------------------
HANDELSBLATT reports that German pharmaceuticals and chemicals group
BASF AG is, over the next three years, to make annual job cuts of some
1,300 at its Ludwigshafen site.  No redundancies are planned.  An
agreement to this effect was signed Wednesday by employee and management
representatives. The main reason for the measure was technological
advances in production processes, BASF board member Helmut Becks
explained.


ISION INTERNET: Reports First Quarter Loss of 6.4m Euros
--------------------------------------------------------
Ision reports increased loss Ision Internet AG, which has been listed on
the Neuer Markt for growth shares since March, on Wednesday reported
that its loss for the first quarter of 2000 exceeded that posted a year
earlier.  According to preliminary figures reviewed by HANDELSBLATT, the
loss before interest and taxation increased to 6.4m euros, from 2m euros
a year earlier. Sales were reported to have risen 29.3% to 16.3m euros.



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

HIDROELETRICA CANTABRICA: Shareholders Leave Acquisition Hurdle in Place
------------------------------------------------------------------------
From Daily Deal, April 25, 2000:

Shareholders of Spanish electric utility Hidroelectrica del Cantbrico
on Tuesday chose not to lift a voting cap in the company's bylaws,
leaving in place an obstacle to a takeover by another utility, Uni¢n
Fenosa.

Hidrocantbrico's bylaws limit voting rights to 10% for any shareholder,
and are therefore a hindrance to any takeover bid. At the utility's
shareholders' meeting, 69% voted to lift the cap, just below the 75%
necessary for the measure to pass.

The bid for Hidrocantbrico by Spain's third-largest electric utility,
Uni¢n Fenosa, has been put into question because it will need to acquire
at least 80% of shares for its bid to go through. Hidrocantbrico's
board supports Uni¢n Fenosa's bid and set another meeting for May 22.
Uni¢n Fenosa may try to gain support of a larger majority shareholders
for a change of the bylaws at the next meeting. In a statement issued
after the Tuesday's vote, Fenosa expressed its "satisfaction that the
broad majority of shareholders approve its takeover bid" and said the
shareholders' meeting "does not modify Uni¢n Fenosa's position on its
bid to acquire 100% of Hidrocantbrico."

At Hidrocantbrico's board meeting last Saturday, the majority of
members approved Fenosa's bid of 24 euros ($22) per share, an offer
considered generous by most analysts. However, U.S.-based TXU, which
controls 10% of Hidrocantbrico, abstained, and Cajastur, a Spanish
regional savings and loan, with 10.5% of Hidrocantbrico's shares,
opposed the offer.

Cajastur appeared to approve Fenosa's offer but has recently said that
any majority acquisition of Hidrocantbrico must take into account its
importance to the regional economy. Cajastur would not like to see
Hidrocantbrico absorbed by another company, but maintain its identity
and its headquarters in the region.

TXU withdrew its own bid for Hidrocantbrico on March 28 after it failed
to gather enough support from shareholders to change the voting-cap
bylaws. TXU in March bid for 21.25 euros per share for Hidrocantbrico,
but Fenosa later came out with a higher bid, at 24 euros per share.
Hidrocantbrico officials could not be reached for comment.


ZABALBURU: Need Contributor to Liquidity
----------------------------------------
From LaGaceta delos Negocios, April 27, 2000:

Joaquin Rivero, president of Bami, showed yesterday in press conference
that the intention of the OPA is to contribute liquidity to Zablburu so
that it does not leave the stock market and it does not mortgage his
patrimony in rent, since thus it would stall.
  
Jose Grace, advisor of Bami, affirmed that they do not consider to take
100% from Zablburu but to collaborate with Altadis in the management of
the real estate one, since the tabaquera did not go to the OPA of
exclusion and it remains with 41,2%.

Bami believes in the success of the OPA, although it has maintained
conversations neither with Zablburu nor with its shareholders, and
augurs to duplicate in a year the benefit of this real estate one.
Rivero trusts that the boxes support their plans, since all went to the
OPA that presented/displayed Altadis in November.

On the other hand, as much Altadis calculates that as Ibercaja will
maintain their participation in Zablburu, that, added to the
autocartera, goes up to around 51%.

However, the president of Bami considers that, although instead of 40%
he supports 25% to him, the OPA will be a success.

The price of Bami is of 12.25 euros, superior to the one of the OPA of
exclusion - between 11.45 and 12 euros -.

The OPA supposes for Bami a payment of 24,139 million, by means of a new
extension of capital in which already three savings banks have been
interested, among them Box of Towns.



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


AMAZON: Losses Increase 5 Folds to $308 million (œ195 million)
--------------------------------------------------------------
AMAZON, the Internet retailer, saw losses increase fivefold to $308
million (œ195 million) in the first three months of the year, The Times
reports.  Sales nearly doubled, however, to $574 million and Amazon
claimed it has accumulated 20 million customers.  Amazon has lost $1.2
billion since it was founded.


BANK OF SCOTLAND: Shares Sank, Wiping Almost œ750Mln Off the Co's Value
-----------------------------------------------------------------------
From This is London, April 26, 2000:

Bank of Scotland shares sank by more than 10% today, wiping almost œ750
million off the company's value as the market expressed disappointment
with the group's full-year results and growth prospects. The share price
fell from 64412p to 585p on fears about margin pressure and lending
focus.

Group margins fell from 2.88% to 2.7% and there was an increase in
commercial lending, considered riskier than the personal sector. 'Bank
of Scotland's growth story has been undermined,' said Mark Thomas of
Fox-Pitt, Kelton.

In the year to 29 February, profit before tax and exceptional items rose
14% to œ965 million. Fully diluted earnings per share rose 6% to 43.6p
after accounting for œ54 million of costs relating to the failed NatWest
bid. The total dividend rises 16% to 13.5p.

Cost-income ratio fell from 49.1% to 47.6% and operating profit per
employee before provisions and exceptionals climbed 21% to œ62,650.
Expenses were up by almost 12%, thanks mainly to an extensive IT
programme. Income growth outpaced costs but margins suffered. Provisions
against bad debts rose 18% to œ317 million.

'I think the current year will be good but I am not sure that the laws
of economics have been repealed yet. Sooner or later, there will be a
downturn,' said chief executive Peter Burt. Despite City reaction, Burt
remains confident about the future.

'The NatWest bid was opportunistic and opportunities can never be part
of a strategy. Our strategy, our plan A, remains one of organic growth.
We want to deliver more of the same but a little bit better,' he said.
Burt admitted to intense disappointment over the failure of the bid. 'As
Adlai Stevenson said when he lost the US Presidential election to
Eisenhower - I'm too old to cry but it hurts too much to laugh,' he
said.

Burt remains open-minded about further takeovers. 'We are always looking
for opportunities. You never quite know when they will arise. Who knows,
there may be one tomorrow. I don't see any today though,' he said.
BoS believes the internet offers particular potential to smaller banks.
It also expects to benefit from the ongoing fracas over cash machine
charges. 'Anything that creates change in the industry or upsets the
status quo is good for us,' said Burt.

BoS is strengthening its board with the promotion of three top managers.
Sir John Shaw and Sir Bob Reid will be standing for re-election as
governor and deputy governor.


BARCLAYS BANK: Shareholders Angry at Slump Share Price & Huge Closures
----------------------------------------------------------------------
From The Times, April 27, 2000:

BARCLAYS shareholders - angry at the slump in the bank's share price,
fat executive salary packages and huge branch closures - were
effectively muzzled yesterday at what was to be their once-a-year chance
to quiz the board.

The investors packed the annual meeting in the hope of at least
expressing their frustration at a string of controversial decisions
taken by their company in recent months.

But Barclays's use of a pre-registration process restricted the
questions to those considered appropriate by its executives, ensuring
that the bank did not add to a rapidly deteriorating image.
Shareholder frustration was highlighted by one pensioner, who stormed
out of the meeting with the appropriate observation that "this is all a
bloody waste of time".

A former employee sought to stress the need for Barclays to improve its
image on the street. But his somewhat understated remark that "the
health of the bank is dependent on good PR" smacked of a set-up. At the
very least, it could not have been among the more damaging questions
unfettered shareholders might have posed.

Sir Peter Middleton, the Barclays chairman, who was obviously keen to
show that he was worth his œ1.79 million salary, seized the carefully
crafted opportunity. "I do not think the execution of bank closures was
of the first quality and I apologise for it," he said.

But Sir Peter's confession, itself appearing to lack sincerity, did not
end there. Responding to shareholder criticism over delays in getting
through to Barclays stockbrokers, he said: "We have had a huge surge in
business. Other share dealing services, such as Charles Schwab, have
also been affected by problems."

But, in an action which showed who really controls public companies, all
resolutions were passed by overwhelming majorities, including the the
re-election of Matthew Barrett, the bank's recently appointed chief
executive.


CARADON PLC: To Sell Bathroom Division
--------------------------------------
Reuters reports that British building products maker Caradon Plc is to
sell its bathroom equipment and boilers division in order to focus on
its core businesses, citing an article appearing in the Financial Times.
It said the subsidiary -- whose brands include Mira Showers, Rada
Controls, Twyford and Ideal Boilers -- should fetch over 350 million
pounds ($552.5 million).  A formal announcement that the unit, which has
4,000 employees and last year posted a turnover of 338.3 million pounds,
was for sale was expected later on Thursday, the Financial Times said.
It said Credit Suisse First Boston was preparing a sales memorandum and
a sale was expected to take at least three months.

The newspaper said Caradon might also announce the acquisition of
Columbia, a Californian aluminium extruder business, for about $120
million.  The extrusions business is one of Caradon's three core areas
alongside its electrical ansd security printing operations.
The Financial Times said Chief Executive Jurgen Hintz was looking for
further acquisitions in all the three core markets.



HSBC HOLDINGS: Being Sued for More Than $1 Billion by Japanese Investors
------------------------------------------------------------------------
Bloomberg relates that HSBC Holdings Plc, Europe's largest bank, said
it's being sued by Japanese investors for more than $1 billion over the
alleged involvement of newly acquired Republic New York Corp. in a
fraud.  HSBC, detailing the litigation in its 1999 annual report,
said two of the litigants are seeking 24.4 billion yen ($229
million), with others seeking a total of $799 million. Inclusive
of punitive damages, the bank is being sued for a total of $2.6
billion, according to the South China Morning Post.

"It is not possible to assess the outcome of these
proceedings at present," HSBC said in its report.  "The Republic
parties intend to defend vigorously against the claims arising
from the Princeton note matter."  Officials wouldn't comment
further on the suits.  The actions are connected with an alleged fraud
by Princeton Global Management Ltd. and chairman Martin Armstrong in
selling Japanese investors promissory notes with a face value of $3
billion.  Princeton and Armstrong were customers of the futures
division of Republic New York.  Some of the proceeds of the notes were
supposedly invested and traded through the accounts Princeton had with
the futures arm and HSBC said Armstrong is alleged to have caused
employees of the unit to issue statements inflating the value of these
accounts, hurting investors in the notes, $1 billion of which has yet to
be repaid.

Aside from the 11 civil actions outstanding against Republic, HSBC said
it has been told by one of the defendants in the Princeton note affair,
World Nichei Securities Co. Ltd. of Japan, that it will seek to hold
Republic and its affiliates liable for any losses it incurs.
There is also a "purported" class action suit outstanding against
Republic on behalf of some investors who bought stock in Republic last
year.  Details of the alleged fraud emerged last year, nearly
derailing HSBC's takeover of Republic New York and affiliate Safra
Republic Holdings SA. The takeover was delayed because of
the investigation, and Edmond Safra, Republic's founder, agreed to
accept about 19 percent less for his stakes in Republic and Safra
to save the $9.9 billion sale after the problems.


LIMELIGHT GROUP: Possible Management Buyout
-------------------------------------------
From London, Reuters reports that Britain's Limelight Group Plc, which
makes fitted kitchens, bathrooms and bedrooms, said on Thursday that
talks were continuing over a possible management buyout, and said sales
for the year so far were up.

It said in a statement sales for the year to April 23 were up three
percent on the same period a year ago. It said this figure was adversely
affected by the late Easter holiday, an important trading period, for
which results had not yet been included.

Overall, it said, the group continues to perform in line with
expectations.

Of the possible management buyout, Limelight said a preliminary approach
had been made by members of the management team, which may or may not
lead to an offer being made for the entire share capital of the company.
A further announcement would be made as soon as it is appropriate, it
added.


ROVER CARS: Workers Visit Germany in Bid to Save Jobs
-----------------------------------------------------
From Annanova, April 27, 2000:

A group of Rover car workers are travelling to the head office of German
car giant BMW in a last-ditch mission to save jobs.

The workers are pleading with BMW to give more time for a rival bid for
Rover to be put together in the hope that thousands of jobs can be
rescued.

They are supporting a bid being made by former Rover executive John
Towers, who has already met with BMW officials.

The last-minute lobbying was going ahead despite confidence by venture
capitalists Alchemy Partners that they can agree to buy Rover by this
weekend.

BMW has denied that a deadline for the sale has been set for Friday but
the German firm is believed to be keen to tie-up a deal within days.
The company's annual shareholders' meeting will be held in Munich on May
16 and BMW will want the controversial Rover sale agreed by then.
Birmingham social historian Dr Carl Chinn, who is leading the delegation
by Rover workers, said the mission aims to show BMW the strength of
feeling at the huge Longbridge factory in Birmingham.

If necessary they will walk the streets of the German city demanding
that the factory be kept open.

The Government has unveiled a multi-million pound aid package for firms
hit by the crisis at Rover after a report warned that the sale of the
car giant would cause a "major shock" to the economy.

Up to œ10 million will be offered to companies which supply Rover to
help them find new customers after the sale is finalised.


SOTHEBY'S: Investigation Continues for Possible Price Fixing
------------------------------------------------------------
From The Times, April 27, 2000:

SOTHEBY'S, the auction house being investigated for possible price
fixing, has postponed today's annual meeting in London at the last
minute after a row between its two largest shareholders.

The postponement of the shareholder meeting, due to be held at its Bond
Street offices in London, was announced late on Tuesday night.
Sotheby's is still controlled by Alfred Taubman, a property developer
who resigned as chairman in February after news broke of the
investigation into alleged price fixing. He retained 63.6 per cent
voting control over the company by virtue of owning an overwhelming
majority of "class B" shares.

Mr Taubman's lingering influence over the company is now being
challenged by Ronald Baron, head of Baron Capital Management, a US
investment firm. Baron Capital controls the majority of "class A"
shares, which give it 11.4 per cent of the overall votes.

Mr Baron has hired Wasserstein Perella, the investment bank, to advise
on Baron Capital's course of action, prompting speculation that the
auction house might be sold.

Now Baron Capital is understood to be demanding that there should be
changes at board level. The Sotheby's board includes Henry Kravis, the
financier, Conrad Black, the Canadian businessman who controls The Daily
Telegraph, Lord Blakenham, the former chairman of Pearson, Sharon
Rockefeller, a member of the Rockefeller dynasty, and the Marquess of
Hartington. One source said yesterday that Baron wanted to reduce the
influence of what it claimed were "Taubman's friends", without
identifying any individuals.

Sotheby's said in a statement: "Discussions have recently been under way
regarding the composition of Sotheby's board of directors, and the
company and its two principal shareholder groups have mutually agreed
that the annual meeting should be postponed to permit these discussion
to be finalised."

It added: "Both shareholder groups have confirmed their strong support
for Sotheby's current executive officers." Sotheby's said the
shareholder meeting "will be rescheduled in the near future" but refused
to be more specific.

A spokeswoman added that Sotheby's hoped that all shareholders will have
heard of the change before travelling to London.


TOLWORTH HOSPITAL: In A Major Shake-up of Management
----------------------------------------------------
From This is Local London, April 27, 2000:

Control of mental health services in Kingston and Richmond is likely to
be stripped from Tolworth Hospital chiefs in a major shake-up of
management later this year.

Responsibility for mental health services is set to be transferred from
managers at Kingston and District Community NHS Trust (KDCT) to an
outside trust.

Options that will shake-up management of mental health services locally
are being discussed by the trust, Kingston and Richmond Health
Authority, Kingston and Richmond Councils and doctors from both
boroughs.

The option considered most viable would see a single specialist body,
the South West London and St George's Mental Health Trust, take
responsibility for mental health services from the trust.

The trust's managers were held largely responsible for a "seriously
flawed" culture of care on Fuchsias Ward in Tolworth Hospital by an
independent inquiry into the abuse of Alzheimer's patients.

Moves already underway towards specialist mental health trusts were
speeded up by the evolution of Primary Care Trusts, who will take on
much responsibility for community health.

And proposals from East Elmbridge Primary Care Group to withdraw its
mental health patients from Kingston and District Community Trust also
contributed.

But Kingston and Richmond Health Authority chairman Julie Reay said
health agencies were keen to protect strong local co-operation between
community trusts and social services.

She added that front line staff will have their pay and conditions of
service protected by TUPE, the regulations guaranteeing workers' rights
and pay during the transfer of a business.

"No final decision has been made but what's becoming clear is that
within the larger specialist mental health service, we need local
responsibility and a sensitive management structure. That's what we are
in the process of doing," she said.

She said: "We have to protect specialist services and the very good
partnership approach being developed between the users and community
psychiatric nurses, mental health and social workers and nurses on the
wards. We have to protect the fantastic relationship we have built up."
June Haswell, chief officer at Kingston's Community Health Council,
said: "I think the time is right for change and right for a new start."
KDCT will discuss the different options for mental health service
provision at its public board meeting on April 10.

KDCT's chief executive Fred Little said: "In considering the different
options, the board will focus on what is best for patients, not what is
best for senior managers."


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, and Beard Group, Inc.,
Washington, DC.  Peter A. Chapman and Sharon Cuarto, Editors.

Copyright 2000.  All rights reserved.  ISSN 1529-2754.

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