/raid1/www/Hosts/bankrupt/TCREUR_Public/010614.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Thursday, June 14, 2001, Vol. 2, No. 116


                            Headlines

* A U S T R I A *

RSL AUSTRIA: Irish Group Acquires RSL

* B E L G I U M *

SABENA SA: Swissair Has No Comment on Capital Injection
SPECTOR PHOTO: Narrows Operating Loss to 6.66MM Euro

* C Z E C H   R E P U B L I C *

MORAVSKA SLADOVNA: French Group to Buy Moravska for Kc50MM

* F R A N C E *

BATA: May Close French Factory
INTEGRA SA: Suspended in Paris and Frankfurt
SYNCHRONY LOGISTIQUE: Mory Will Not Participate in Rescue Plan

* G E R M A N Y *

BANKGESELLSCHAFT BERLIN: Insurer Aims to Buy Weberbank
DAIMLERCHRYSLER AG: EU Clears Continental Acquisition of Temic

* I R E L A N D *

EIRCOM PLC: O'Reilly Won't Cause Competition Issues

* I T A L Y *

LIMA COLLECTION: French Workers Fight Factory Closure

* N E T H E R L A N D S *

KPN NV: Sells KPN Lease Stake to De Lage Landen for 150MM Euro
KPN NV: Set for Share Sale

* S W E D E N *

SWEDISH STEEL: Unit Sells Part of Business

* S W I T Z E R L A N D *

CARRIER1 INTERNATIONAL: Sees Recovery in 2002
SWISSCOM AG: Grapes to Acquire Swisscom Unit

* U N I T E D   K I N G D O M *

BRITISH TELECOM: Chief Set to Quit Post
BRITISH TELECOM: Seals 3G Cost-Share Deal With Telekom
CAMMELL LAIRD: PwC in Talks on Cammell Bid
MARKS & SPENCER: Asks UK Staff for Inputs
MARKS & SPENCER: Galeries Lafayette Shows Interest in Assets
RAILTRACK GROUP: Gets 40MM-Pound Ultimatum From Firstgroup
RAILTRACK GROUP: Admonished to "Put Away Begging Bowl"
REDSTONE: Set to Post Results Next Week
SAVE GROUP: Foreign Group to Rescue Petrol Retailer


=============
A U S T R I A
=============


RSL AUSTRIA: Irish Group Acquires RSL
-------------------------------------

Ireland-based eTel Group has completed the acquisition of
troubled telecom firm RSL COM Austria AG for an undisclosed
amount, the Irish Independent reported yesterday.

The acquisition should push eTel's turnover to 100 million euro a
year, adding over 10,000 corporate customers and 76 staff.

Operations will still remain in Eisenstadt, Austria and will
continue to operate under its current name.

RSL's parent company, US-based RSL COM, filed for chapter 11 in
mid-March.


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


SABENA SA: Swissair Has No Comment on Capital Injection
-------------------------------------------------------

Swissair Group had no comment on a radio report about a new
capital injection into its Belgian affiliate, Sabena, according
to a Reuters report Tuesday.

RTBF said Christoph Mueller of Sabena airline would present on
Monday a business plan to shareholders Swissair Group and the
Belgian state. The radio report added that the two shareholders
were asked to inject at least another 16 billion Belgian francs.

"We have no comment on any reports about when the Sabena business
plan will be presented and we have even less comment on rumors
about a capital injection," Swissair spokesman Jean-Claude Donzel
said Tuesday.

Sabena spokesman Wilfried Remans and Belgium's ministry for
public works and state enterprises made no comment, either.


SPECTOR PHOTO: Narrows Operating Loss to 6.66MM Euro
----------------------------------------------------

Spector Photo Group posted an operating loss of 6.66 million euro
for the first four months of 2001, narrowing slightly from 6.98
million euro in the same period last year, Dow Jones Newswires
reported on Tuesday.

The result is an effect from last year's operational
restructuring measures.


===========================
C Z E C H   R E P U B L I C
============================


MORAVSKA SLADOVNA: French Group to Buy Moravska for Kc50MM
----------------------------------------------------------

French group Malteire Soufflet will buy Moravska Sladovna for
Kc50 million, Hospodarske Noviny & World Reporter said in its
June 11 edition.

Moravska Sladovna went bankrupt in November 1999 when the
conflict between its large shareholders culminated.

Moravska Sladovna's biggest creditor is Tchecomalt Group, with a
claim of Kc728 million.


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


BATA: May Close French Factory
------------------------------

Canadian shoe group Bata has confirmed it would not inject the 20
million French francs necessary to keep its shoe factory in
Moussey, France afloat, La Tribune & World Reporter said in its
June 11 edition.

Trades unions representing staff at the factory say that a
declaration of bankruptcy is likely in mid-July.

The French site, which employs 875 people, generates an average
monthly loss of 4 million French francs. It has been unable to
escape the downward spiral of the shoe market.

In 2000, it registered a production deficit of about 15% on the
break-even point.


INTEGRA SA: Suspended in Paris and Frankfurt
--------------------------------------------

Shares in the troubled French web agency Integra SA were
suspended from trade in Paris and Frankfurt from Tuesday until
further notice, according to Dow Jones Newswires' report.

The share suspension follows a notification of the 125 million
euro takeover bid by U.S. company Genuity Inc to French financial
authorities, a spokeswoman for French stock exchange operator
Euronext said.

Dow Jones added Integra's shares would be delisted from Frankfurt
once the deal is completed.


SYNCHRONY LOGISTIQUE: Mory Will Not Participate in Rescue Plan
--------------------------------------------------------------

Logistics operator Mory will not participate in the rescue plan
of Synchrony Logistique, according to Les Echos' June 11 report.

Under the terms of an agreement signed on April 25, which is now
null and void, the two parties were to team up to present a
business continuation plan. Mory has said would continue to
examine the matter and it might make an offer to acquire certain
assets.

Synchrony, which has shown a disappointing performance for two
and a half years, went into receivership on April. It posted a
net loss of 13.8 million euro last year on turnover of 56 million
euro.


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


BANKGESELLSCHAFT BERLIN: Insurer Aims to Buy Weberbank
------------------------------------------------------

Parion insurance group is in talks with Bankgesellschaft Berlin
to buy the bank's private banking arm Weberbank, according to
Reuters' report on Tuesday. The insurer had not yet decided on
the size of the stake it could acquire in Weberbank.

Bankgesellschaft, which has put Weberbank up for sale to help it
solve its financial crisis, requires around 2 billion euros to
prop up its capital base. It was hit by billions of euros of real
estate related losses and a probe by banking watchdog BAKred.

Parion holds 7.5% of the stake in Bankgesellschaft. The city-
state of Berlin has a 57% stake and state-owned bank Norddeutsche
Landesbank has around 20%.


DAIMLERCHRYSLER AG: EU Clears Continental Acquisition of Temic
--------------------------------------------------------------

The European Commission has cleared Continental AG's acquisition
of DaimlerChrysler AG's Temic unit, active in electronic systems
for autos. Financial details were not disclosed.

In a report dated June 12, AFX News said that the integration
does not give Continental a dominant position in the market as
Bosch is market leader in most of the braking and electronic
products involved in the merger.


=============
I R E L A N D
=============


EIRCOM PLC: O'Reilly Won't Cause Competition Issues
---------------------------------------------------

Independent News & Media PLC chairman Tony O'Reilly's role in the
Valentia consortium's 2.88 billion euro bid for Eircom PLC won't
cause competition issues.

Dow Jones Newswires on Tuesday reported that O'Reilly's
shareholding in Valentia is minor and neutral, as described by
the consortium lawyers.

Besides O'Reilly, Valentia comprises Goldman Sachs, Warburg
Pincus, Providence Equity and George Soros.

On Monday, Eircom chose Valentia as its bidder for the company.
The offer involves an all-cash bid of 1.27 euro a share or 1.32
euro a share plus a three-year warrant of 7 cents a share.


=========
I T A L Y
=========


LIMA COLLECTION: French Workers Fight Factory Closure
-----------------------------------------------------

Lima Collection plans to close model train production from the
Jouef factory in France at the end of June as part of its
restructuring scheme, according to Monday's Les Echos edition.

Workers at the French factory have appointed representatives to
study the accounts and management of the company, in the hope
that the group will file for creditor protection for Jouef and a
recovery package can then be put into place.

Fifty-eight of the 61 jobs at the factory will be lost. Three at
managerial level will be kept within the group, while 12
positions may be transferred to Italy.


=====================
N E T H E R L A N D S
=====================


KPN NV: Sells KPN Lease Stake to De Lage Landen for 150MM Euro
--------------------------------------------------------------

KPN has has signed a letter of intent to sell a 70% stake in its
KPN Lease BV unit to financial service provider De Lage Landen
for 150 million euro. Proceeds for the stake sale would be used
to reduce its 23.3 billion euro debt.

In a June 12 statement, KPN said the signing of the LOI is a
further step by KPN in the outsourcing of non-core assets. Once
the deal is closed, KPN will still give advice on and the selling
of lease solutions in the field of data and telecommunications
equipment and services to its customers.

De Lage Landen will be responsible for the management, as well as
the funding of the existing and future lease portfolios.


KPN NV: Set for Share Sale
--------------------------

KPN plans to sell up to 5.5 billion euros of shares to help
relieve its debt burden, CNN reported on Tuesday.

KPN, which has $19.4 billion of debts because of high spending on
third-generation (3G), or high-speed, mobile networks, will sell
the shares to its existing shareholders at a discount.

The telecom operator believes the share sale is the only way it
can quickly access cash.

KPN is also expected to proceed with the sale of non-core assets
to pay down its debt.


===========
S W E D E N
===========


SWEDISH STEEL: Unit Sells Part of Business
------------------------------------------

Tibnor, 85%-owned by steel group SSAB (Swedish Steel AB), said in
its Tuesday press release it has decided to sell its Industrial
Supplies Group to Swedish company Ahlsell.

The sale will lead to a capital gain of over 100 million Swedish
krona and reduce net debt by some 400 million Swedish krona.

The Swedish Competition Authority must approve the deal.


=====================
S W I T Z E R L A N D
=====================


CARRIER1 INTERNATIONAL: Sees Recovery in 2002
---------------------------------------------

Communications services company Carrier1 International SA do not
expect a recovery in its financial or operational markets until
the second half of 2002, reported Reuters on Tuesday.

The company, which made a net loss of $45.2 million in the first
quarter to the end of March, expects to break even at the EBITDA
(earnings before interest, tax, depreciation and amortisation)
level by the end of 2001, although Carrier1 chief financial
officer Alex Schmid said a net profit would take a few more years
to show up.

Schmid also expected to enjoy a gross margin of around 30% and a
net profit, with more revenue coming from data services.


SWISSCOM AG: Grapes to Acquire Swisscom Unit
--------------------------------------------

Telecommunications group Swisscom AG said in its Tuesday press
release that it would sell its Italian unit Swisscom S.p.A. to
Holland-based company Grapes Communications N.V.

Financial details were not disclosed.

Swisscom said it would divest the business to focus on carrier
wholesale activities in Italy, which are provided by its Swisscom
Carrier Services S.p.A. unit.

Recently, Swisscom engaged in job cuts and restructuring measures
to reduce its debt burden.


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


BRITISH TELECOM: Chief Set to Quit Post
---------------------------------------

British Telecom chief executive Sir Peter Bonfield is expected to
leave the company towards the end of this year, according to This
Is London's Monday edition.

His departure will possibly follow the demerger of BT's mobile
phone arm BT Wireless in autumn. By that time, new chairman Sir
Christopher Bland will be in place for six months.

Bonfield, whose contract ends on December 2002, may still receive
820,000 pounds in lieu of salary and benefits. He also has long-
term awards of up to 3 million pounds, a deferred bonus of
481,000 pounds and an annual pension of about 250,000 pounds.

Although Bonfield said he would leave when his contract expires
next year, those close to BT suggest it would be appropriate for
him to depart once BT Wireless has been demerged.


BRITISH TELECOM: Seals 3G Cost-Share Deal With Telekom
------------------------------------------------------

British Telecom and Germany's Deutsche Telekom will together save
at least 3 billion pounds over the next decade after sealing a
far-reaching agreement to share third-generation (3G) mobile
network costs, according to the Times' report yesterday.

The two companies said they would share mast sites and antennae
in urban areas, cutting the number of new phone masts needed for
the 3G network by at least 10,000 in the UK alone. BT expects to
save up to 2 billion.

British and German telecom regulators Oftel and RegTP will wait
for the groups' documents before deciding whether to approve the
deal.


CAMMELL LAIRD: PwC in Talks on Cammell Bid
------------------------------------------

Cammell Laird receiver PriceWaterhouseCoopers is still in talks
with several companies to bid for the group's UK shipyards
despite the withdrawal of venture capitalist group Alchemy, the
Financial Times reported on Tuesday.

Alchemy said they pulled out because they were unable to reach
agreement with A&P for a joint bid for Cammell Lair. Alchemy
offered a nominal 1 pound to A&P shareholder Royal Bank Private
Equity and intended to merge it with Cammell.

More than 1,000 workers at Cammell's Birkenhead and Tyneside
yards in the UK will lose their jobs once outstanding orders are
completed, unless a buyer is found.


MARKS & SPENCER: Asks UK Staff for Inputs
-----------------------------------------

After spending millions on management consultants and set of
advisers, Marks & Spencer has started asking its UK staff ideas
on how to reinvent its struggling business, Namnews reported on
Tuesday.

The six-page staff survey was sent out two months ago and was
returned early in May. The results have been collated and
presented to the board. Findings will be revealed to its staff
very soon.


MARKS & SPENCER: Galeries Lafayette Shows Interest in Assets
------------------------------------------------------------

SA des Galeries Lafayette is interested in several Marks &
Spencer outlets along with their staff in France, the Tuesday
edition of AFX News said.

Galeries Lafayette co-chairman Philippe Lemoine said Marks &
Spencer's staff has a reputation of being very well trained.

Marks & Spencer announced in April it would sell its European
branches, with more than 4,000 jobs affected.


RAILTRACK GROUP: Gets 40MM-Pound Ultimatum From Firstgroup
----------------------------------------------------------

Train operator Firstgroup has issued an ultimatum to Railtrack to
settle an outstanding compensation claim of more than 40 million
pounds by the end of the month, or face legal action, according
to the Times' report yesterday.

Firstgroup is suing the rail operator to recover lost revenues
after the disruption to its services caused by the Hatfield
disaster in October.


RAILTRACK GROUP: Admonished to "Put Away Begging Bowl"
------------------------------------------------------

The rail regulator told Railtrack to "put away the begging bowl"
and concentrate on running the business better.

According to Tom Winsor, recent changes to Railtrack's regulation
and financial structure, and to the company's own management,
could improve the business.

However, Winsor hinted that he would not grant on the company's
appeal for a 2-billion-pound capital increase of public money.
First, he appears to believe some of the increase is to pay for
Railtrack's own mistakes. Second, he thinks greater efficiency
could raise much of the increase.

Railtrack was also to blame on its current problems as it often
neglected its customers and put the interests of the city before
engineering quality. The rail operator was involved in a fatal
Hathfield crash in October.


REDSTONE: Set to Post Results Next Week
---------------------------------------

Telecom and broadband services provider Redstone will announce
its full year results by the end of next week, Net Imperative
reported on Monday.

The announcement came after the company saw its shares crash to
an all-time low last week after media speculation over its cash
position and the timing of its results.

Redstone will also announce the details of its talks with a
number of providers of both debt and equity by the end of next
week.

In early May, Redstone's finance director resigned after the
company was forced to put out a second trading statement to
clarify a 3.4-million-pound discrepancy in its cash.


SAVE GROUP: Foreign Group to Rescue Petrol Retailer
---------------------------------------------------

Save Group Plc administrators Ernst & Young has entered into
exclusive talks with a potential buyer for the Britain's largest
independent petrol retailer.

Ernst & Young did not reveal the identity of the bidder, but the
Financial Times in its Tuesday report cited an observer close to
the talks who said a foreign oil company had bid between 65
million pounds and 75 million pounds for the company.

Possible bidders could include the Libyan National Oil
Corporation, Russia's Lukoil or Dutch oil company Petroplus.

Save Group collapsed in March after failing to agree refinancing
terms with its main banks, Barclays, NatWest and Lloyds TSB.


                           **************

      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. Kimberly MacAdam,
Salve M. Mordeno and Ma. Cristina D. Pernites, Editors.

Copyright 2001.  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.


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