/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/000821.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, August 21, 2000, Vol. 1, No. 74 Headlines E S T O N I A TAUPOMASIS: Estonia's Hansapank Studying Privatization Terms F R A N C E SOCIETE DES TRANSPORTS: To Revive Ailing Abidjan Bus Company G E R M A N Y DEUTSCHE TELEKOM AG: CEO Sommer Plans Radical Restructuring VIAG INTERKOM: British Telecom to Takeover WANKEL-ROTARY: Files for Insolvency I R E L A N D SIMMONSCOURT HOLDINGS: Four Seasons Developer Out of Funds I T A L Y BAYERISCHE VITA: 70% Stake Sold for E644m P O L A N D POLSKIE LOTNICZE: Posts $16.8 Million H1 Pretax Loss POLISH STATE RAILWAYS: Banks Grant Zl. 300 Million Loan ZESPOL ELEKTROCIEPLOWNI: Tender for a Privatisation R O M A N I A ARCTIC: Posts ROL 28 Billion H1 Net Loss CLUJANA: Progress on Privatization to Be Finalized R U S S I A KUZBASSUGOL: Property Ministry to Examine Bidding Terms U N I T E D K I N G D O M ABN AMRO: Restructuring May Cost Up to $729m ANTHONY BRIDGE LTD: Liquidation Proceedings ASHCROFT BUILDING CO LTD: Notice of Creditors Meeting AUTOMATRON LTD: Notice of Creditors Meeting BOOTS: To Dispose of Dutch Chain to Royal Ahold B F T FREIGHT SERVICES LTD: Liquidation Proceedings BRITISH TELECOMMUNICATIONS: May Shed Mobile Units BRITISH TELECOM: Borrowing to Rise to ?30bn after Viag Deal BRITAX: Plunges after Accounting Irregularities BROADMAX COMPUTERS LTD: Notice of Creditors Meeting BUCCANEER ADVERTISING LTD: Notice of Creditors Meeting CENTURY LITHO (HORSHAM) LTD: Notice of Creditors Meeting COLWICK BUILDERS LTD: Liquidation Proceedings COMPCELL LTD: Notice of Creditors Meeting CUBIC EGG: Being Laid to Rest DANIEL GREEN MANTELPIECES LTD: Notice of Creditors Meeting FUTURE INTEGRATED: Posts ?3.3 Million Full-Year Pre-Tax Loss FUTURE INTEGRATED TELEPHONY: Full-year Losses Triple HOUGHTON: Entire Workforce to Quit Factory After Lottery Win HYDER: Nomura Loses Appeal HYDER: Nomura Concedes Defeat in Battle KUDOS DRYWALL LTD: Liquidation Proceedings M J HAWKRIDGE & CO LTD: Liquidation Proceedings MEDWAY FLEXO LTD: Liquidation Proceedings MULBERRY: Unveils ?7.6m Buy-out Deal, Posts Loss of ?666,000 MULBERRY: Seng and Ong Agree on Rescue Package PACIFIC SOFTWARE DEVELOPMENT LTD: Liquidation Proceedings ROVER: Former Bidder Says Company Might Be in Trouble by March SCAFFOLDING ENGINEERING LTD: Liquidation Proceedings SEAGRAM: Regulators Clear Way for Seagram Merger STAR LETTINGS LTD: Liquidation Proceedings STORRS WEST COMMUNICATIONS LTD: Liquidation Proceedings SURFCONTROL: Reports Growing Losses of $24.56 Million TELESCAN: GlobalNet in $103m Takeover THREE ARCHES GARAGE LTD: Liquidation Proceedings ============= E S T O N I A ============= TAUPOMASIS: Estonia's Hansapank Studying Privatization Terms -------------------------------------------------- August 17,2000 Indrek Neivelt, board chairman of Hansapank, said the bank intended to study the privatization terms, issued as of Wednesday, of Lithuania's Taupomasis Bankas (Savings Bank) and would take out the privatization documents, BNS & FT report. "We will certainly take out the privatization documents and analyze them from the aspect how the deal would suit us strategically," Neivelt told BNS. Privatization documents of Taupomasis Bankas are issued as of August 16, and the period for the filing of bids for the privatization of the state-owned bank is from September 11 to October 2. "But I would not like to comment at present how Taupomasis Bankas could suit our strategic plans," Neivelt said. "We will make the decision within this very tight schedule." Taupomasis is the biggest Lithuanian bank. =========== F R A N C E =========== SOCIETE DES TRANSPORTS: To Revive Ailing Abidjan Bus Company ------------------ European Investor Online & Reuters August 17, 2000 The number of buses serving Ivory Coast's business capital, Abidjan, has halved in the past 15 years despite a soaring population and public bus firm SOTRA is technically bankrupt, its managing director said on Thursday. Philippe Attey, appointed by the military government in June with a new chairman, told a news conference that SOTRA badly needed a capital increase. The state owns 60 percent of SOTRA and Renault Vehicules Industriels the balance. After 31 billion CFA francs ($43.3 million) of accumulated losses in recent years, "The company has eaten up its capital six times over," Attey said. Given the state's budgetary problems, he said, there could be a further opening up to private capital. He gave no details. Abidjan, the seat of government as well as the main port in the world's top cocoa producer, is home to three million people. Attey said Societe des Transports Abidjanais (SOTRA) transported around 900,000 of them each day, but up to two million might use buses if they were available. The slack is taken up by taxis and minibuses -- some of them illegal, all of them contributing to snarl-ups around the city. A private sector operator was given a mandate to run services in two populous suburbs over a year ago but is not yet operational, Attey said. In the 1980s, SOTRA had around 1,200 vehicles. Now it has 765, including 19 water buses that crisscross the lagoon around which Abidjan is built, but 215 of these are in need of major repair and 50 others are off the road with smaller problems. Attey aims to get the 50 running by the new school year in September and wants to have 600 buses in service by January. Two sturdy Karosa buses constructed by a Renault subsidiary in the Czech Republic are being used on one route and are performing well on the city's deteriorating roads, Attey said. ============= G E R M A N Y ============= DEUTSCHE TELEKOM AG: CEO Sommer Plans Radical Restructuring ----------------------------- August 17, 2000 Financial Times reports Deutsche Telekom, Germany's former state telecommunications monopoly, is about to undertake what a high ranking Telekom manager called "the most radical restructuring since Ron Sommer's arrival in 1995". Ron Sommer, chief executive, plans to remove and redeploy an entire layer of hierarchy comprising about 2,000 employees at Deutsche Telekom AG, the heart of the German telecoms group. The move is intended by Mr Sommer to remove the remaining traces of state bureaucracy and turn Telekom into a more customer-orientated operation. Deutsche Telekom's partial privatisation began in 1996. The German state still controls about 56 per cent of the group but has pledged to keep strictly out of management issues. Deutsche Telekom AG's three levels of management - Headquarters, Directors and Branch offices - will be folded into two. The directors and their teams, organised into six centres across Germany, exercise comptrolling and auditing functions, which have become superfluous in their current form and will be taken over by headquarters in Bonn, according to Financial Times. VIAG INTERKOM: British Telecom to Takeover ------------------ YAHOO FINANCE UK & REUTERS August 17, 2000 British Telecommunications on Thursday agreed to buy control of Germany's Viag Interkom for 7.3 billion euros (4.46 billion pounds), further swelling its debt pile to bolster its third- generation mobile strategy. BT, which already has a 45 percent stake in Interkom, said it would exercise an option to buy another 45 percent of Germany's fourth largest mobile operator from E.ON, the German energy group created by the merger of utilities Veba and Viag in June. Interkom, which also has a fixed line and Internet business was one of six winners of third-generation mobile licences in the German auction that ended on Thursday. But concern about the cost of the acquisition and the 16.52 billion marks ($7.67 billion) Interkom bid for its licence sent BT shares tumbling to 20-month lows at one point. BT's gearing will rise to 190 percent after the company pays cash for the stake in the first half of 2001 and finances the UMTS (Universal Mobile Telecommunications System) licence, said Pat Gallagher, BT's group director of strategy and development. "We are determined to get it (the debt level) down," he said. "But am I sitting here worried about it? No." The market was worried, though, and BT's already weak share price fell below eight pounds for the first time since December 1998. The stock closed 1.3 percent lower at 812 pence after bottoming out at 780p. E.ON, which offered to sell BT the stake on Sunday after reviewing its non-core assets, dropped 2.02 euros to 57.08 euros. WANKEL-ROTARY: Files for Insolvency ---------------------- August 16, 2000 Frankfurter Allgemeine Zeitung reports, Wankel-Rotary, the German patent holder for the Wankel engine, has filed an insolvency petition after the German foreign trade office disallowed an export order worth over DM4m. Eighty-five patents and trademark rights linked to the Wankel engine are now for sale. ============= I R E L A N D ============= SIMMONSCOURT HOLDINGS: Four Seasons Developer Out of Funds ---------------------------- NEWSWIRE August 17, 2000 A British Virgin Islands company forms part of the complex legal structure put in place for the Four Seasons Hotel in Ballsbridge, Dublin. The hotel was due to open in February, but when it will open is now unclear. The company developing the property, Simmonscourt Holdings, has run out of funds. The directors of Simmonscourt Holdings are Mr Sean Dillon, a Dublin estate agent, and two US businessmen, Mr Robert Radovan and Mr William Criswell. The company's annual return for the year to December 31st, 1999, filed in the Companies Office earlier this month, shows total indebtedness as ?100,426 (euro 127,515). The company was incorporated in December 1996. Mr Criswell and Mr Radovan work for Criswell Radovan LLC, of Los Angeles, which was paid ?549,242 in fees in the year to December 31st, 1998, the latest year for which accounts are available. The balance sheet for the year shows the company had creditors who were owed ?987,323 at the end of 1998. The company has significantly exceeded its target budget of ?51 million. A charge created by the company shows a credit facility of ?3 million with ACCBank and a further ?50 million credit facility to Harvard Properties Ltd, another company linked to the development. The charge includes the hotel building, situated on land which is the subject of a lease between the RDS and The Nollaig Partnership. The Nollaig Partnership is scheduled to take over ownership of the hotel when it is complete. The hotel will be managed by the Four Seasons group. As part of the deal, the partnership was to buy the completed hotel for ?59 million. How much has already been invested by the partners is not known. The RDS was to earn ?390,000 per annum in rent. The partnership was put together by Mr Derek Quinlan, a successful accountant and tax adviser, and Mr Niall McCormack, a former property adviser to Bank of Ireland. The role of Harvard Properties in the overall scheme is not clear, though money advanced for the project seems to have gone via Harvard, and Harvard has a charge over Simmonscourt Holdings. The Harvard Properties annual return to December 31st, 1999 shows the company as having an indebtedness of ?13.6 million. The directors are the former chairman of ACCBank, Mr Dan McGing, and financial adviser Mr Barry Kenny. A charge created by Harvard and registered in the Companies Office secures "any amount in excess of ?9 million which may be received by Harvard Properties Ltd" pursuant to a December 1997 agreement between Harvard and Stoneyview Ltd. Mr Quinlan was a director of Stoneyview, which is now dissolved. The entity entitled to the charge created by Harvard is Marlast Ltd. Files in the Companies Office show the shares in Marlast are owned by Rhea Investments Ltd, a company in the British Virgin Islands. ========= I T A L Y ========= BAYERISCHE VITA: 70% Stake Sold for E644m ----------------- August 17 2000 Financial Times reports Ergo, the primary insurance subsidiary of Munich Re, the world's biggest reinsurer, it had purchased a 70 per cent stake in Italian life insurer Bayerische Vita for E644m ($589m). Up until now, Ergo has only been represented in Italy in the legal expenses insurance sector. The German company said it also expected to offer independent shareholders E9.67 per share, based on Bayerische Vita's average share price over the past 12 months, to buy 100 per cent of the company. The bid values Bayerische Vita at E861.57m, a premium of 18 per cent to its value based on Wednesday's closing share price of E9.7. Munich Re has for some time wanted to bolster the position of Ergo, which is a leader in health and legal insurance. However, analysts have expressed doubt that the reinsurer will fully achieve this goal, as it has missed out on a number of acquisitions, and market consolidation has reduced the number of targets. Ergo bought the 70 per cent stake from the Bayerische Beamten Insurance Group (BBV), based in Munich. As part of the deal, Ergo will also acquire Bayerische Assicurazioni, an Italian property and casualty insurer, as well as participations in sales and financial services enterprises in Italy, Spain, France and Poland. It also plans to acquire the Italian intermediate holding company of BBV. Ergo said the acquisition was an important step towards its European expansion. "Bayerische Vita fits exceedingly well with the Ergo strategy, which focuses on (personal) insurance and business with private customers in strongly growing markets." Ergo will use its own funds to finance the deal, which still requires regulatory approval. =========== P O L A N D =========== POLSKIE LOTNICZE: Posts $16.8 Million H1 Pretax Loss ------------------------------- CENTRAL EUROPE ONLINE INVESTOR & REUTERS August 17, 2000 Poland's national air carrier Polskie Linie Lotnicze LOT said its pre-tax loss for the first half of 2000 narrowed to PLZ 72.4 million ($16.76 million) from the 82.9 million reported for the same period of 1999. The state-controlled LOT , in which Swiss aviation group SAir Group holds 37.6 percent, said on Thursday its six-month revenues jumped almost 30 percent to PLZ 1.4 billion over the same period. The firm did not release its net financial result, but said it expects to report a net profit for the entire year. LOT's bottom-line result this year will be capped by plans to expand its fleet by five short-hop Embraers and three Boeing 737 planes, it said. The carrier's results may also be hurt by high fuel prices. LOT also said that it carried almost 1.3 million passengers in the January-June period, showing a 9.5 percent increase over the same period in 1999. The airline's seat load factor was unchanged between January and June and stood at 67 percent. According to LOT's audited annual results, the company had PLZ 3.5 million in net profit at the end of 1999, while its operating profit, including interest on leasing credits, stood at PLZ 63.8 million. POLISH STATE RAILWAYS: Banks Grant Zl. 300 Million Loan ------------------------------- POLAND AM August 17, 2000 There is every indication that consortium of banks - Bank Rozwoju Eksportus (BRE), Commerzbank and Pekao S.A. - is about to grant the cash-stricken Polish State Railways (PKP) a loan of up to zl. 300 million. A page 4 story in Puls Biznesu indicates the transaction could be completed as early as next week. Unlike past loans, the latest would not be guaranteed by either the Treasury Ministry or a commercial bank but by PKP assets set aside as collateral. The money would be used to pay off a fraction of PKP's arrears to the Social Insurance Company (ZUS). The payment is crucial as it is a condition ZUS has set before negotiations to defer the remaining payment can start. It appears this is the first of a number of loans that PKP will required to implement the Railway Act, which calls for restructuring, then commercialization and finally privatization of the railways. The consortium has lent money to PKP before, the most notable loan being the zl. 650 million that PKP was to use to buy 50 locomotives from Adtranz Pafawag. ZESPOL ELEKTROCIEPLOWNI: Tender for a Privatisation ------------------------------------------------- August 17,2000 Polish News Bulletin & News Now reports the Treasury Ministry has announced the tender for a privatisation advisor to Zespol Elektrocieplowni Poznanskich (ZEC), the Poznan-based energy and heat producer. Up to 30 percent of shares in the company are planned to be floated on the Warsaw Bourse. Additionally, the ministry wants to sell a 15 percent stake to financial investors, for which the next share issue will be aimed. The advisor chosen by the ministry will have to prepare a pre- privatisation analysis of the company and then service the entire process. ZEC's privatisation prospectus is supposed to be ready in the first half of 2001. The tender closes on 29 September, the reports says. ============= R O M A N I A ============= ARCTIC: Posts ROL 28 Billion H1 Net Loss ----------------- August 17, 2000 Central Europe Online Investor & Reuters reports, Romanian refrigerator maker Arctic ended the first half of this year in the red, after posting net profit in the equivalent period of 1999, company results showed on Thursday. Arctic had some ROL 28 billion ($1.25 million) in net loss at the end of June, from a net profit of 22.2 billion in the first six months of last year. Operating profit was down at ROL 19.3 billion from 38.6 billion in the first half of last year, with turnover rising to ROL 408.4 billion from 271.2 billion. The results are in line with Romanian accounting standards. A company statement accompanying financial results tied six-month lower operating profit and net loss to the company's strategy of creating provisions. It said Arctic had set up provisions for product service in the warrantee period amounting to some ROL 10.3 billion, as well as provisions for losses from exchange rate fluctuations standing at 25.6 billion, according to the report. CLUJANA: Progress on Privatization to Be Finalized -------------------- PRIVATIZATION IN ROMANIA August 17, 2000 The British consulting company RES Co submitted the final privatization report for Clujana at the State Ownership Fund (SOF) with some delay. The delay of the submission deadline was due to the SOF's complaints related to the preliminary report of the British company. The complaints were mainly concerned with the maximization of the company's value with a view to its sale on share stocks. "The final report includes a diagnosis of the company and of all its assets. It also includes the arguments in favor of the impossibility to sell it the way it is now", said the manager of the company, Mihail Maties. The final report will be added the evaluation of the company's assets, drafted by Velur International, which should give the exact value of Clujana. The list of the Romanian and foreign companies interested in buying Clujana will be finalized in September, when the publicity campaign will also be started. It is estimated that the auction will take place at the end of October. Up to now, 36 companies sent letters of intent, while other 45 have been contacted by the privatization agent. Their number will increase after the beginning of the privatization procedures. At least 120 companies will be interested in taking over the main share stock (64%) which is held by the SOF at present. Clujana was closed in August 1999 on account of its debts and of the delicate financial situation. The personnel (130 employees) insure the preservation of the patrimony. The actual situation of the combine will be known by September 31st 2001, the deadline for the PSAL 1 program. A privatization, reorganization or liquidation plan must be drawn up until then. =========== R U S S I A =========== KUZBASSUGOL: Property Ministry to Examine Bidding Terms --------------------------------- August 17,2000 Prime Tass News & News Now reports, Russia`s ministry of government property will examine within a week the terms of sales of a 77.9% stake of the company Kuzbassugol operating in the Kuznetsk coal fields, a source close to the ministry has told Prime-TASS. The terms the Kuzbassugol management has given approval to envision an investment of USD 17.3 mln. The reconstruction and purchases of equipment for the enrichment factory at the Belovskaya mine will demand USD 3 mln. The mine Chertinskaya will take up USD 6 mln, the mine Pervomaiskaya, USD 6.3 mln, and the mine Anjerskaya-Yuzhnaya, USD 2 mln. Sources indicate the Kuzbassugol largest stockholder is the Ministry of Property Relations (77.9%). The OJSC Belovskaya`s largest stakes belong to Kuzbassugol (35%), the OJSC Belon and its affiliated companies (63.1%). Kuzbassugol and Belon also have respective stakes of 60% and 30.35% in the OJSC Mine Chertinskaya. Experts believe the supplies of equipment under the investment program will be feasible only if the potential bidders have such equipment. =========================== U N I T E D K I N G D O M =========================== ABN AMRO: Restructuring May Cost Up to $729m ------------------------ August 17 2000 ABN Amro on Thursday set itself a series of demanding financial targets as part of a restructuring that the Dutch bank said would cost up to E800m ($729m). The pre-tax charge, to be taken this year, would be recouped within two years by savings, it said. By 2004, the savings would be running at an annual level of E600m, Financial Times reports. Rijkman Groenink, ABN Amro's new chairman, said the bank's main external measure from next year would be its performance in total return to shareholders - stock price rise plus dividend yield - compared with a 20-strong peer group. This includes Barclays, Citigroup, Credit Suisse, Deutsche Bank and ING, its domestic rival. Its biggest presence outside those regions is in Thailand, where it controls Bank of Asia, but smaller operations elsewhere are thought more likely to be on the block. "In the Far East, one or two markets might become strategic to us," Mr Groenink added. He said any exits would be from consumer or commercial banking units. Mr Groenink also expressed an interest in a 22 per cent stake held by Royal & Sun Alliance, the UK insurer, in Rothschilds Continuation Holdings, which controls NM Rothschild, the investment bank. "If we were invited by the Rothschild people to pick up that stake we would certainly do it," he said. The Rothschild family has pre-emption rights over the holding and Mr Groenink said they had not approached him about it, per report. ANTHONY BRIDGE LTD: Liquidation Proceedings --------------------------- Company Name: Anthony Bridge Ltd Company No: 662307 Com. Business: Snooker Goods Distributor Appointed on: 04/08/00 Type: Members Appointed by: Members Liquidators: A H Tomlinson IPno: 6585 Firm Name: A H Tomlinson & Co Address: St Johns Court 72 Gartside Street City Postcode: Manchester M3 3EL ASHCROFT BUILDING CO LTD: Notice of Creditors Meeting ------------------------------- Company Name: Ashcroft Building Co Ltd IA 1986 Section: 98 Creditors Meeting Time: 01.00 pm Meeting date: 09/08/00 Meeting address: Virgin 1st Class Passenger Lounge Euston Station Meeting City Code: London Authorised by: C Constandi Director 06/07/00 Liquidators: G N Ratcliffe Firm Name: Ratcliffe & Co Address: 7 Chorley New Road Bolton BL1 4QR AUTOMATRON LTD: Notice of Creditors Meeting ------------------------------- Company Name: Automatron Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.30 am Meeting date: 09/08/00 Meeting address: 1 Winckley Court Chapel Street Meeting City Code: Preston PR1 8BU Authorised by: I Thompson Director 19/07/00 Last day for proxy: 08/08/00 Proxy address: 1 Winckley Court Chapel Street Preston PR1 8BU Firm Name: Begbies Traynor Address: 1 Winckley Court Chapel Street Preston PR1 8BU BOOTS: To Dispose of Dutch Chain to Royal Ahold -------------------- August 17, 2000 Boots, the high street chemist, its ambitions to be a continental European retailer with the disposal of its Dutch chain to Royal Ahold, the supermarket and drug store company. Although Boots said it "remained committed to international expansion", it said the focus for store openings would now be in Asia, according to Financial Times. The failure of most European countries to liberalise the pharmaceutical retailing sector had caused Boots to rethink its plans. Boots said it would now rely on a mixture of retailing in Asia and the distribution of own-brand products through other health and beauty chains in Europe. Under the agreement with Ahold, Boots would distribute six of its private-label brands through the Dutch company's 412-strong drug store chain. Boots said it was in discussions with other retailers about similar distribution arrangements. Boots is paying Ahold Fl 3.5m ($1.5m) as part of the deal to cover obligations, including staff costs, arising from the transfer of its 17 stores to the Dutch retailer's Etos chain. It will also write off ?14m ($21m) in assets, and receive no proceeds from Ahold. Analysts estimated that Boots had invested more than ?30m in its four years as a Dutch retailer, including trading losses. Expansion in the Dutch market had been hampered by a lack of premium sites, as well as the structure of the pharmaceutical market. Although the Boots format represented an improvement on pharmaceutical retailing there, customers were generally tied to specific pharmacies, which made trading more difficult for Boots. "It is a disappointment to the grand plans they had," said an analyst. In effect, Boots was turning itself into a consumer products company in Europe, which would attract lower margins than a retailer. But Boots said the own-label distribution strategy would offer more potential given the restrictive regulation that remained in Europe. Sales through Etos of the brands was expected to equal the total ?11m sales achieved last year through the 17 Dutch stores. B F T FREIGHT SERVICES LTD: Liquidation Proceedings --------------------------- Company Name: B F T Freight Services Ltd Company No: 1688285 Com. Business: Hauliers Appointed on: 04/08/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Paul Barrett IPno: 5459 Firm Name: Radford Sons & Co Address: 12 Portland Street City Postcode: Southampton SO14 7EB BRITISH TELECOMMUNICATIONS: May Shed Mobile Units ------------------ August 17 2000 British Telecommunications will consider floating its mobile phone units to cut its looming debt burden of nearly ?30bn after the company on Thursday gained control of its German joint venture - thus securing a third-generation mobile phone licence, according to Financial Times. BT confirmed that it would double its stake in Viag Interkom to 90 per cent. The purchase from Eon, the energy group, will cost about E7.3bn (?4.4bn). The 3G licence will cost it E8.5bn. With these two transactions increasing BT's debt by about 50 per cent, it admitted it would have to shed some of its valuable subsidiaries, including mobile phone operations. "The board is going to take a view on whether we IPO any of these businesses," Sir Peter Bonfield, chief executive, said. "We have got some significant value here and we need to unlock it." BT is already preparing a flotation of Yell, its telephone directories business, the report says. BT shares on Thursday fell 11p to 812p on concerns that the Viag Interkom deal, to be completed next year, would threaten its debt rating. Although BT and Eon had originally negotiated a price of E6.65bn for the shareholding, this was revised up after Thursday's end to Germany's 3G auction. Viag Interkom won a licence with a bid of DM16.5bn (?5.1bn) - lower than its owners had first expected. The deal strengthens BT's portfolio of telecoms assets in continental Europe, which have previously consisted mostly of minority stakes. Eon was continuing with its plan to dispose of non-core assets. But the company, Europe's biggest listed utility, also said it had been prompted to sell its Viag Interkom stake because of the escalating cost of bidding for 3G licences, according to the reports. "The process was initiated by the UMTS auction and the foreseeable high cost. We had to question whether it made sense for us to invest several billions into a business that is not core to us," Eon said. The deal is structured to allow Eon to take advantage in a reduction of corporate tax in January 2001. Eon said it would use the proceeds to finance acquisitions, although it was also considering buying back some of its shares. It said it had no immediate plans to sell its remaining non-core telecommunications interests in Austria and Switzerland. Analysts estimate that they are together worth E3bn-E4bn. Telenor, the Norwegian telecom group, is initially expected to retain its 10 per cent shareholding in Viag Interkom. However, under the terms of the shareholder agreement it has the option to either sell its stake or increase its shareholding in the business. BT was advised by NM Rothschild. Eon's adviser was J.P. Morgan, accordingly. BRITISH TELECOM: Borrowing to Rise to ?30bn after Viag Deal ----------------------- THE TIMES August 18, 2000 Borrowings at British Telecom will rise by ?10 billion to ?30 billion after taking control of Viag Interkom, the German mobile phone group, yesterday. The deal, which will involve BT buying an extra 45 per cent stake in Viag for about ?4.4 billion, caused its shares to fall 12p to a 20-month low of 812p. Nearly ?48 billion has been wiped off BT's stock market value since December. BT is buying the stake from E.ON, the German energy group created through the merger of the utilities Veba and Viag. Although glad to see BT increase its presence in the fast-growing European mobile phone industry, some analysts suggested that the company had paid a high price for the stake. "I think it was a very full price given that E.ON didn't have much choice as to who they sold to," one analyst said. BT already owned 45 per cent of Viag, which is headed by Maximillian Ardelt, before yesterday's deal. Norway's Telenor owns the other 10 per cent. Other analysts said the Viag deal represented good value on a per-subscriber basis. Sir Peter Bonfield, BT's chief executive, said the deal was part of a new risk-taking strategy that would see BT expand its mobile and fixed-line business abroad - away from the eyes of the UK's telecoms regulator. He said BT's traditionally conservative investors were "very supportive" of its move into higher growth areas. "[The] transformation is going to cost money, and we'll have to take more risks, but I think that we're starting to see the results already," he said. "We have no option in a declining circuit-switched UK market. But we have to make sure we manage the balance sheet and don't overpay." Sir Peter confirmed that BT would push ahead with flotations of divisions such as Yell.com, the online verson of the Yellow Pages, to reduce the company's ?30 billion debt. However, he refused to say whether or not BT would consider spinning off its mobile phone division, or whether it would merge it with the mobile phone business of AT&T, its US partner. BT does not have to pay for the 45 per cent stake in Viag until 2001. Sir Peter added that the Viag deal would knock about 8p off the company's earnings per share over the next two or three years. Some analysts speculated that Sir Peter could eventually spin off BT's network business, which generates cash but is facing increasing competition and declining margins. Viag is Germany's third largest mobile phone business, behind Deutsche Telekom's T-Mobile and Vodafone's Mannesmann. The company has more than two million mobile phone subscribers and expects to have 3.5 million by the end of 2000. Its Internet business, Interkom Online, has 590,000 customers. The acquisition of Viag follows deals by BT to take control of Telfort in The Netherlands and Esat in Ireland. BT is likely to face a credit rating downgrade because of the Viag deal. Both Moody's and Standard & Poor's are thought to be reviewing the company's rating. City criticism of BT is also unlikely to be stopped by the Viag deal. Analysts argue that BT's "sum of the parts" valuation is far in excess of its current stock market value. Some believe that BT's mobile phone business is now worth 800p of BT's 812p share price. BRITAX: Plunges after Accounting Irregularities ---------------------------- August 17 2000 Financial Times reports, Shares in Britax, the group contracted to refit British Airway's Concordes, fell 30 per cent on Thursday after it revealed accounting irregularities would damage reported profits. The news delivered a sharp blow to the credibility of the group, also known for its car seats for children. Its shares had risen close to their high for the year at 134-1/2p in response to a restructuring which included the sale of its car mirrors business. An engineering analyst said: "My view was this was a great company, but now I'm not so sure. They are vulnerable to takeover as a result of this." Richard Marton, chief executive, said the problems had first come to light at Britax Rumbold, the UK aircraft parts business. Earlier this year Deloitte & Touche was commissioned to audit the balance sheet of the division as at June 30. It found the assets of the business - primarily stocks and work in progress - had been overstated. Britax expects to take a ?20m exceptional charge against profits, which had been forecast by analysts at ?61m in the year to March 2001. Mr Marton said the professional services firm was continuing its investigation, but the accounting irregularities did not appear to be deliberate. He said: "Our view is this is the result of incompetence and weak management - there will be changes." He said that too much profit had been accounted for early on in the life of a series of seating contracts, and this had inflated assets. Britax said there was no evidence of similar problems in other businesses in the group. The shares ended the day at 102p Investors in Britax had been enjoying the climb in price since the beginning of March. On Thursday it all went sour. Mr Marton's strategy was a good one: get out of unsexy businesses such as car mirrors. Concentrate on aircraft interiors where a service element supports margins. And hang on to child car seats - logically redundant in the new scheme of things but adding lustre to the brand. Strategy, however, is useless if your subordinates are building up a tail of losses you are unaware of. Past experience suggests that barring further blunders it will take upwards of six months for management to rebuild its credibility. Valuing the shares is tough until Britax makes a full statement on the accounting failures with interim results on September 19. Meanwhile the group, at ?400m, would make a tempting morsel for an opportunistic bidder. This reflection should underpin the share price. But it is not the kind of value Mr Marton had been aiming to provide. BROADMAX COMPUTERS LTD: Notice of Creditors Meeting ------------------------------- Company Name: Broadmax Computers Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 09/08/00 Meeting address: Tameway Tower PO Box 30 Bridge Street Meeting City Code: Walsall WS1 1QX Authorised by: B A Peters Director 24/07/00 Liquidators: Maurice W Russell Firm Name: BDO Stoy Hayward Address: Tameway Tower PO Box Bridge Street Walsall WS1 1QX BUCCANEER ADVERTISING LTD: Notice of Creditors Meeting ------------------------------- Company Name: Buccaneer Advertising Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 09/08/00 Meeting address: Pearl Assurance House 319 Ballards Lane Meeting City Code: London N12 8LY Authorised by: N Ricketts Director 24/07/00 Last day for proxy: 08/08/00 Proxy address: Pearl Assurance House 319 Ballards Lane London N12 8LY Liquidators: Paul Appleton Firm Name: David Rubin & Co Address: Pearl Assurance House 319 Ballards Lane London N12 8LY CENTURY LITHO (HORSHAM) LTD: Notice of Creditors Meeting ------------------------------- Company Name: Century Litho (Horsham) Ltd IA 1986 Section: 98 Creditors Meeting Time: 03.30 pm Meeting date: 09/08/00 Meeting address: One Bridewell Street Meeting City Code: Bristol BS1 2AA Authorised by: D C R Taylor Director 05/07/00 Last day for proxy: 08/08/00 Proxy address: One Bridewell Street Bristol BS1 2AA Firm Name: Ernst & Young Address: One Bridewell Street Bristol BS1 2AA COLWICK BUILDERS LTD: Liquidation Proceedings --------------------------- Company Name: Colwick Builders Ltd Company No: 1658227 Com. Business: Building/Decorating Contractors Appointed on: 07/08/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Paul Barrett IPno: 5459 Firm Name: Radford Sons & Co Address: 12 Portland Street City Postcode: Southampton SO14 7EB COMPCELL LTD: Notice of Creditors Meeting ------------------------------- Company Name: Compcell Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.15 am Meeting date: 09/08/00 Meeting address: 1 City Square Meeting City Code: Leeds LS1 2ES Authorised by: D J Bagnall Director 26/07/00 Last day for proxy: 08/08/00 Proxy address: 1 City Square Leeds LS1 2ES Firm Name: Kroll Buchler Phillips Address: 1 City Square Leeds LS1 2ES CUBIC EGG: Being Laid to Rest ---------------- NET IMPERATIVE August 16, 2000 Cubic Egg, an Amazon style site said to have approach liquidators Kroll Buckler Phillips (KBP) by the Sunday Times, is in a "meeting of creditors", one of the stages of liquidation. KBP partner Lee Manning said he was also helping another b2c business to wind down its operations. Having had around ?2m of funding put into it since it was founded 2 years ago, Manning said Cubic Egg is expected to fetch around ?20,000. Manning explained that the figure was low because the company carried very little stock and had fulfilled all of the few orders it had received through its retail site cubicworld.com launched in April. The company, which also provides e-commerce services to other companies via a company called Cubic Egg Services, employs 20 staff. DANIEL GREEN MANTELPIECES LTD: Notice of Creditors Meeting ------------------------------- Company Name: Daniel Green Mantelpieces Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 09/08/00 Meeting address: The Guildhall Meeting City Code: Abingdon OX13 3JE Authorised by: D Green Director 13/07/00 Last day for proxy: 08/08/00 Proxy address: 5 The Chambers Vineyard Abingdon OX14 3PX Firm Name: Peter Edwards & Co Address: 5 The Chambers Vineyard Abingdon OX14 3PX FUTURE INTEGRATED: Posts ?3.3 Million Full-Year Pre-Tax Loss ----------------------------------- THE TIMES August 18, 2000 Telecoms company Future Integrated Telephony reported a full-year pre-tax loss of ?3.3 million (?1.2 million loss). There is no dividend. FUTURE INTEGRATED TELEPHONY: Full-year Losses Triple ------------------------------------ YAHOO FINANCE UK & UK August 17, 2000 Future Integrated Telephony on Thursday posted pre-tax pre- exceptional losses of 1.98 million pounds in the year to end May, which it said reflected costs of recruitment, division creation and expansion. The company warned last month its losses for the period would be higher than market expectations. Losses in the comparable period last year were 638,000 pounds. Turnover increased 15 percent to 8.22 million pounds in the period. "This year has been one of transformation and development. FIT is now leading the field as a one-stop telecoms provider to small businesses," Chairman Ted Stocker said in a statement. Shares in the company closed on Wednesday at 307-1/2p. HOUGHTON: Entire Workforce to Quit Factory After Lottery Win ---------------------------- August 17,000 ANANOVA reports a council is battling to save a south Wales factory forced to announce its closure after its entire workforce won the National Lottery jackpot. Councillors say the area will suffer if the oil company carries out its decision to close and relocate to its other plant in Manchester. The two production operatives quitting the American-owned firm Houghton Vaughan are among 17 syndicate members - the firm's entire workforce - who scooped ?4.4 million last week. The majority of the Lottery-winning employees say they will continue working for the company but Houghton Chief Executive Paul Miller says pulling out of the Cynon Valley was a necessity, as it will be impossible to find anyone in Wales to fill the operative's jobs. He denies the move will have a negative effect on the area, saying everyone working for the factory will have the chance to relocate or work from home. Rhondda Cynon Taff County Borough councillor Jonathan Huish said: "At the end of the day if one factory goes employment opportunities migrate out of the area. "We are happy that all the employees at the factory have won the Lottery. However, we want to protect and retain employment and will find any way we can help to keep the factory open. We are trying to find out the facts and we want to be of assistance to the company." Two highly-skilled production operatives handed in their notice and are due to leave the oil company's Hirwaun plant in Aberdare at the end of the month. Mr Miller said: "The two that want to leave have been running a specialist operation and we can't just fetch people off the street to replace them. We've decided to close the operation and move production to Manchester. We have about 15 people in Hirwaun, we are retaining two and the others are natural wastage or are being retained." Mr Miller added that staff who want to remain working for Houghton will be offered redeployment or the chance to work from home. HYDER: Nomura Loses Appeal ---------------------- August 15 2000 The UK Takeover Panel has dismissed an appeal by Nomura, the Japanese investment bank, against a ruling made in favour of Hyder bid rival, Western Power Distribution, Financial Times reports. The full panel committee's decision was made public on Wednesday after it met on Tuesday to consider Nomura's appeal. Nomura argued WPD's 365p a share, or ?565m ($847.5m), bid for the Welsh utility should be disqualified as it failed to announce its victory at the required time. The US joint venture's revised bid topped Nomura's offer of 360p a share, the report says. Both companies were asked to submit sealed offers by 1300BST last Friday stating the highest price they were prepared to pay for Hyder. The committee is due to publish the full reasons for its decision on Friday. WPD said it was "pleased some certainty has been provided for Hyder shareholders." Nomura would not comment directly on the decision but said the group was reviewing its options, with an appeal still a possibility. In a statement on Wednesday morning, WPD said it was extending its revised offer for Hyder until Wednesday August 30 and that it had purchased 7.2 per cent of Hyder shares since its original offer was made. Shares in Hyder were down 3p at 363p in early trading in London. HYDER: Nomura Concedes Defeat in Battle ----------------- THE TIMES August 18, 2000 Nomura International conceded defeat in the four-month battle for Welsh utility Hyder, saying it would not challenge the Takeover Panel's decision to allow Western Power Distribution's bid to stand. Nomura had previously maintained that US-owned WPD's 365p broke the Takeover Panel's sealed bid rules because it was not announced by the panel's deadline. "We have decided not to prolong the period of uncertainty for Hyder's stakeholders, particularly the employees, who have been through a great deal over the last few months," said Guy Hands, managing director of Nomura International's Principal Finance Group. "Unfortunately Hyder was always going to be more valuable to someone willing to carry out a break-up strategy, something which, as we made clear all along, was never our intention." Nomura's advisers are understood to believe that backing down is the most sensible course, despite speculation that the bank was considering calling for a judicial review of the Takeover Panel's decision. Mr Hands's team stands to make about ?30 million out of the WPD deal as the largest shareholder in the group with a 16.2 per cent stake. However, a spokesman said that the group did not go into this deal to make money from arbitrage. "We would prefer to have Hyder. We're about buying companies up and building them up," he said. The battle for Hyder ended in controversy with the Takeover Panel's unusual decision to introduce sealed bids to end the bidding war in an orderly fashion. The step backfired when Nomura failed to submit a sealed bid, and WPD missed the deadline, but was still deemed the winner by a margin of just 5p over Nomura's last highest bid. KUDOS DRYWALL LTD: Liquidation Proceedings --------------------------- Company Name: Kudos Drywall Ltd Company No: 3326527 Com. Business: Wall Cladding Building Appointed on: 04/08/00 Type: Creditors Appointed by: Creditors and Members Liquidators: D Lewis IPno: 4744 Firm Name: D Lewis & Co Address: 7 Nunappleton Way Hurst Green City Postcode: Oxted RH8 9AW M J HAWKRIDGE & CO LTD: Liquidation Proceedings --------------------------- Company Name: M J Hawkridge & Co Ltd Company No: 2660491 Com. Business: Buy/Sell Printing Machinery Appointed on: 04/08/00 Type: Creditors Appointed by: Creditors Liquidators: Peter O'Hara IPno: 6371 Firm Name: O'Hara & Co Address: Wesley House Huddersfield Road City Postcode: Birstall WF17 9EJ MEDWAY FLEXO LTD: Liquidation Proceedings --------------------------- Company Name: Medway Flexo Ltd Company No: 3084882 Com. Business: Engravers/Flexographic Platemakers Appointed on: 04/08/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Graham P Petersen IPno: 8325 Firm Name: Benedict Mackenzie Address: 5-6 The Courtyard East Park City Postcode: Crawley RH10 6AG MULBERRY: Unveils ?7.6m Buy-out Deal, Posts Loss of ?666,000 ----------------------- August 18, 2000 Independent News reports Mulberry, the British luxury leather goods maker, is passing into foreign control after unveiling details yesterday of a ?7.6m deal with Christina Ong, the Singapore-based fashion and hotel tycoon, and her husband, Ong Beng Seng, the oil magnate. Under the terms of the agreement, the Ongs will take an initial 41.7 per cent stake in Mulberry through their wholly owned vehicle, called Challice. They will subscribe in cash for 15,000,000 new shares in the UK company at a price of 32p, and for a further 8,000,000 new preference shares at 35p. In addition to the initial investment, the Ongs have entered into a joint venture agreement with Mulberry to set up five stores in the United States. Each party will contribute $1m (?667,000) to the business and all additional funding required will be lent to the joint venture by the Ongs. After two years, if the agreement has proved successful, the Ongs will have the right to covert their preference shares to take a final 52.3 per cent stake in Mulberry. Roger Saul, Mulberry's chairman and chief executive, said: "Over the last three years, we have been really very hard hit by the strength of the pound, being an international design company with our manufacturing base in the UK.... This is the best dream we could have hoped for." Mulberry yesterday posted results for the year to 31 March, showing a pre-tax loss of ?666,000, down from ?1.779m the previous year, on turnover down 4 per cent at ?26.4m. Shares in the company closed up 8p at 41p. Mr Saul said the deal with the Ongs was part of a wider strategy of building Mulberry into a world brand, following on from existing partnerships with Kravets in the US to license its home furnishings, and Toray Industries in Japan. The Ongs already have a strong presence in the UK, where they own the Metropolitan Hotel and the Armani fashion franchise. In the US, their biggest source of revenue is Armani Exchange, a discounted designer clothing range. Consolidation in the luxury goods sector has been gathering pace as cash-rich companies seek to transform themselves into international conglomerates. Last year, Prada, the Italian fashion house, bought Helmut Lang, Jil Sander and Church & Co, and teamed up with LVMH to acquire Fendi. Meanwhile, Gucci took control of Yves Saint Laurent, and LVMH acquired Tag Heuer, the luxury watch brand. Claire Kent, an analyst at Morgan Stanley Dean Witter, said: "The barriers to entry in the luxury goods sector are huge. It is much quicker to make acquisitions than to try to invent your own brands." She added that the recovery in the Asian economy after the near collapse in 1997 had contributed to a feeling of optimism that has helped fuel growth. MULBERRY: Seng and Ong Agree on Rescue Package ----------------- THE TIMES August 18, 2000 The Singaporean entrepreneurs Ong Beng Seng and Christina Ong have agreed a rescue package for Mulberry which could give them control of the luxury goods group at a knockdown price compared with its float valuation four years ago. The couple, who own London's Metropolitan hotel and Armani franchises worldwide, are also to enter into a joint venture with Mulberry to open five Mulberry outlets in the US, including a flagship store in Manhattan. The Ongs are to put ?7.6 million into Mulberry, which has bank debts of ?7.7 million, and will receive ?4.8 million worth of new ordinary shares at 32p and ?2.8 million worth of new preference shares at 35p. The ordinary shares will give them 41.7 per cent control, diluting the founding Saul family's stake from 73 to 42 per cent. After two years, if the joint venture has opened the five stores in the US, the preference shares will be converted into ordinary shares, giving the Ongs 52.3 per cent control. Mulberry's shares, which started life on Aim in 1996 at 153p, and touched 214�p early in 1997, closed up 8p at 41p. Roger Saul, chief executive, who set up Mulberry in 1971 with a ?500 21st birthday present from his parents, said he was "relieved" to have done the deal. It was unveiled with Mulberry's results for the year to March 31, which saw losses cut to ?666,000 from ?1.78 million, on turnover down from ?27.4 million to ?26.4 million. PACIFIC SOFTWARE DEVELOPMENT LTD: Liquidation Proceedings --------------------------- Company Name: Pacific Software Development Ltd Company No: 3067824 Com. Business: Software Consultancy Appointed on: 04/08/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Michael Ioannou IPno: 6895 Firm Name: Gregory Michaels & Co Address: 6 Southwick Mews Paddington City Postcode: London W2 1JG SCAFFOLDING ENGINEERING LTD: Liquidation Proceedings --------------------------- Company Name: Scaffolding Engineering Ltd Company No: 3548849 Com. Business: Scaffolding Engineers Appointed on: 04/08/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Gary Stones IPno: 6609 Firm Name: Stones Jones Address: 63 Walter Road City Postcode: Swansea SA1 4PT SEAGRAM: Regulators Clear Way for Seagram Merger ---------------------------------- August 17,2000 Financial Times reports Seagram's three-way merger with Vivendi and Canal Plus of France has been cleared by US regulators, the Montreal-based entertainment and spirits group said on Thursday. Edgar Bronfman Jr, Seagram chief executive, said that barring surprises from other regulators, "we're hopeful we'll be able to close the transaction some time in the month of November". The statutory period in which US competition authorities could have requested further information had passed without any such requests having been made, Mr Bronfman said. Although European regulators asked Vivendi to supply additional information on the merger last week, the French group was optimistic that its phase-one review would be completed by the end of September, Mr Bronfman said. A review by Canadian ministers should conclude at about the same time, he added. Mr Bronfman promised investors more details of Vivendi Universal's financial profile at a meeting in October. He added that Seagram, Vivendi and Canal Plus had already begun integration work, aimed at finding sales growth and cost savings, and had established 22 integration teams. He gave few details of the progress of Seagram's auction of its spirits business, the report says. The group's advisers are expected to send the prospectus for the division within weeks to a large group of potential buyers, including Allied Diageo. Mr Bronfman said Seagram's fourth-quarter results, announced on Thursday, had been "exceptional". He predicted low double-digit growth for the music business next year, coupled with gains in market share. STAR LETTINGS LTD: Liquidation Proceedings --------------------------- Company Name: Star Lettings Ltd Company No: 2730149 Com. Business: Property Lettings Appointed on: 07/08/00 Type: Members Appointed by: Members Liquidators: Andreas G Kakouris IPno: 4691 Firm Name: Kakouris & Michaelides Address: 43 Blackstock Road City Postcode: London N4 2JF STORRS WEST COMMUNICATIONS LTD: Liquidation Proceedings --------------------------- Company Name: Storrs West Communications Ltd Com. Business: Advertising Appointed on: 04/08/00 Type: Creditors Appointed by: Creditors Liquidators: Mervyn E Smith IPno: 2450 Firm Name: Mervyn E Smith & Co Address: 294a High Street City Postcode: Sutton SM1 1PQ SURFCONTROL: Reports Growing Losses of $24.56 Million -------------------- NET IMPERATIVE August 16, 2000 SurfControl, the Easdaq and London listed provider of internet access control software, formerly named JSB Software, reported growing losses of $24.56m on a turnover of $14.28m for the year to 31 May 2000, against losses of $2.12m in 1999, made on a turnover of $6.41m. The increase in losses, which translates into a 122.8 cents loss per share, up from 22.1 cents in 1999, reflects operating expenses of $39.63m, largely due to an increase in administration costs as well as a hefty $13.85m charge for amortisation of goodwill relating to acquisitions. The figures, however, do not include the $100m acquisition of Cyber Patrol, from US toy company Mattel in June, and the $17.3m acquisition of CSM Security Management in August - both outside of the period under review. SurfControl, which provides companies with software enabling them to monitor employees access to the web, last year bought US domestic internet access control company SurfWatch for $33m, and raised $55m via an IPO on Easdaq. During the period the company also moved on to the official list of the LSE and was one of the technology companies that caused uproar when it was admitted to the FTSE 250 in June, pushing out traditional profit-making corporations. The company, which operates in the UK, mainland Europe, and the US, has seen the bulk of its revenue growth derived from the US, where sales reached $10.45m, up from $3.3m in 1999, representing 73.2% of the total. Sales in the UK over the year were almost flat, increasing by just 2.7%, while in Europe they grew by 49.9% to $1.29m. The group reported cash of ?31.69m as at 31 May 2000. TELESCAN: GlobalNet in $103m Takeover ------------------- August 17 2000 Financial Times reports GlobalNetFinancial.com, the online financial information provider, on Thursday sought to bolster its product range through a $103m (?68.6m) takeover of Telescan, which develops and hosts corporate websites. The group will be chaired by William Savoy, president of Vulcan Ventures - the venture capital fund owned by Paul Allen, co- founder of Microsoft. Vulcan was an early investor in Telescan. GlobalNet runs financial sites in Europe and North America. It has developed a strong consumer following, particularly with UK-iNvest in the UK, and has tried to diversify its business away from advertising and subscription revenues towards earning commissions on customer transactions - such as trading shares online and buying insurance. The company has also started to run websites on behalf of third party companies. It offers them the use of relevant GlobalNet content in return for a share of revenues. Telescan, which is focused on the US, should strengthen the company in this area. It hosts websites for a range of customers including American Express, CNBC and Fidelity. Tom Hodgson, chief operating officer of GlobalNet, said: "There is little overlap between the companies now, but there is a big overlap in our future aims." Under the terms of the deal, each Telescan share will be exchanged for half a share in GlobalNet. GlobalNet's Nasdaq-listed shares fell 14 per cent to $11.25 by midday on Thursday in New York - valuing the company at about $210m - while its Aim-listed shares rose 1p to 61-1/2p in London. Telescan shares rose 4 per cent to $5.38, valuing it at about $92m. Both companies had seen their shares slump by about 80 per cent from the highs in the first quarter of the year, as investors turned against internet-related companies. Telescan made a loss of $2.8m on revenues of $18.7m in the six months to June 30. In the same period GlobalNet made a loss of $21.8m, from turnover of $1.6m. The deal is expected to bring forward GlobalNet's move into profitability by about six months to the second half of 2001. Robertson Stephens advised Telescan, while Paine Webber advised GlobalNet. THREE ARCHES GARAGE LTD: Liquidation Proceedings --------------------------- Company Name: Three Arches Garage Ltd Previous Name: Sectormedia Ltd Company No: 0316877 Com. Business: Garage Appointed on: 04/08/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Peter R Dewey IPno: 7806 Firm Name: KTS Dewey Address: 17 St Andrews Crescent City Postcode: Cardiff CF10 3DB ROVER: Former Bidder Says Company Might Be in Trouble by March --------------- THE TIMES August 18, 2000 So now we know: Jon Moulton, managing partner of Alchemy, believes Rover could be in trouble by March. Moulton, who tried unsuccessfully to buy Rover, has been stunning the Marketing Society with his pronouncements. But his forecast is probably not worth a ?10 bet. Moulton has not proved a good tipster in the past. Just six days before his bid collapsed he was predicting that Rover would be his by the end of the week. 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. Lexy Mueller, Mercy Villacastin and Cristina Pernites Editors. Copyright 2000. 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 $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 $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *