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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

             Monday, August 06, 2001, Vol. 2, No. 152


                            Headlines


A U S T R I A

LIBRO AG: Faces Union Criticism Re Opening Hours


B E L G I U M

BRIDGE INFORMATION: Forms Joint Venture With Internaxx
LERNOUT & HAUSPIE: Bowne & Co Inks Deal to Buy Mendez
LERNOUT & HAUSPIE: SLT Product Available for Playstation 2


G E R M A N Y

BANKGESELLSCHAFT BERLIN: Commerzbank Considers Acquisition
EM.TV: Haffa Faces Shareholders Criticism
KABEL MEDIA: Company Founder Subject Of Investigation
KINOWELT MEDIEN: Unzeitig Resigns as CFO
MAN AG: Share Buyback Nears Completion
MB SOFTWARE: Board Members Resign From Company
ROLF DITTMEYER: Advertising Costs Scare Off Buyers
TELDAFAX AG: Faces Trading Exclusion In September


I T A L Y

ALITALIA-LINEE: Transport Minister Says Alliance Not Enough
ALITALIA LINEE: Presents Business Plan to Cover Losses


S P A I N

SINTEL: Spain Approves Redundancy Plan
SINTEL: Telefonica Suppliers to Hire Sintel Workers


S W E D E N

BOLIDEN LIMITED: Invests in Ronnskar Smelter


U N I T E D   K I N G D O M

BRITISH TELECOM: Earthlease Discusses Plans With Watchdog
CAMMELL LAIRD: Management Bids for Birkenhead Yard
CORUS GROUP: Names Tony Pedder as New CEO
EQUITABLE LIFE: PPA May Not Provide Guaranteed Return
FUTURE NETWORK: Shares Fall as Talks Collapse
KNIGHT WILLIAMS: Directors Sue FSA For 10MM Pounds In Damages
MARCONI PLC: Cuts Jobs in Italian Subsidiaries
SCOOT.COM: Posts Supplementary Listing Particulars
VERSAILLES GROUP: SFO Charges Black In Versailles Collapse

     -  -  -  -  -  -  -  -

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


LIBRO AG: Faces Union Criticism Re Opening Hours
------------------------------------------------

Karl Durtscher of the private employees' union has criticized
insolvent book and media retailer Libro AG for introducing
earlier opening times, Die Presse & Financial Times reported on
Thursday. Employees of Libro AG are angry at the company's
decision to introduce earlier operating hours for its stores.

The union argues the new business hours do not attract more
customers and are merely an attempt by the company to
decrease employees' motivation and encourage them to
resign. It is also reported shoplifting is increasing due
to understaffing.


Libro said it would announce in mid-August which outlets are to
be closed. It is believed that banks may show willingness to
clear the debts of e-commerce subsidiary Lion.cc, but difficulty
is expected in finding an investor or co-operation partner.



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


BRIDGE INFORMATION: Forms Joint Venture With Internaxx
------------------------------------------------------

Bridge Information Systems, one of the world's leading providers
of financial information services, and Internaxx, has announced
an agreement whereby Internaxx will use BRIDGE's financial tools
and data to power the new multi-market, multi-currency direct
share dealing service.

Internaxx's extensive research facilities, such as quotes,
charts, analytics and market news, are provided by BRIDGE, and
add real value to the firm's customers when making their self-
directed investment choices.

Internaxx utilizes the Bridge Internet Toolkit to offer access to
international markets NASDAQ, NYSE, Amex, Toronto Stock
Exchanges, as well as London, Frankfurt, Neuer Market, Paris,
Madrid and Amsterdam markets to its active investors.

According to Internaxx managing director Angus Rigby, investors
now have the freedom to invest at any time, from anywhere around
the world, making the company the premier international brokerage
service of choice for affluent Europeans looking for an
international diversification of their investments.

Internaxx will efficiently serve international investors and
BRIDGE is proud to contribute its data, news and technology to
this joint venture. (Bridge Bankruptcy News, Issue No. 19;
Bankruptcy Creditors' Service, Inc., 609-392-0900)


LERNOUT & HAUSPIE: Bowne & Co Inks Deal to Buy Mendez
-----------------------------------------------------

Financial documents printer Bowne & Co. has signed a definitive
agreement to buy Lernout & Hauspie Speech Products NV's Mendez SA
and related assets for $44.5 million, Dow Jones Newswires
reported on Thursday.

The agreement to buy Mendez is subject to the approvals of the
U.S. Bankruptcy Court in Delaware and the Commercial Court in
Ieper, Belgium. The U.S. Bankruptcy Court has scheduled a hearing
on August 7.

Bowne has outbid Lionbridge Technologies Inc., which had offered
to buy Mendez for $27 million in early July.

Mendez, which provides localization, translation technology and
technical translation services, was put on sale after L&H seek
bankruptcy protection last year.


LERNOUT & HAUSPIE: SLT Product Available for Playstation 2
----------------------------------------------------------

Lernout & Hauspie Speech Products NV, a world leader in speech
and language technology, products and services, on Thursday
announced that its Speech and Language Technologies Division
(SLT) has made the L&HT Speech Recognition ASDK (Application
Software Development Kit) for PlayStationr2 generally available.

The ASDK allows developers to easily integrate speech recognition
features into games and edutainment titles. Employing speech
recognition in adventure, role-playing or strategy games
increases player interaction and enhances the overall gaming
experience.

The L&HT Speech Recognition ASDK for PlayStationr2 is based on
L&HT ASR1600 V2.0, a phoneme-based, medium vocabulary speech
recognition engine. The ASDK is speaker independent, which allows
a player to use a speech-enabled PlayStationr2 game without
training or enrolment of the system.

L&H has been holding training courses to acquaint PlayStationr2
games developers with the L&HT Speech Recognition ASDK and its
benefits.

According to Robert Bury, L&H's director of product management,
the Speech Recognition ASDK gives developers the opportunity to
create the ideal interface mechanism for games: the player's own
voice.



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


BANKGESELLSCHAFT BERLIN: Commerzbank Considers Acquisition
----------------------------------------------------------

Commerzbank AG has held preliminary talks with the German federal
state of Berlin over the possible acquisition of parts of
Bankgesellschaft Berlin, Suddeutsche Zeitung & Financial Times
reported August 2.

Commerzbank CEO Klaus-Peter Muller would not say in which parts
of Bankgesellschaft his bank was interested, but banking industry
experts believe Commerzbank may be interested in Bankgesellschaft
subsidiary Weberbank.

Bankgesellschaft Berlin posted a net loss of 1.65 billion euros
in 2000. The bank attributed the loss to bad property loans and
dealings in real-estate funds.


EM.TV: Haffa Faces Shareholders Criticism
-----------------------------------------

The small shareholders of media company EM.TV & Merchandising AG
accused former management board chairman Thomas Haffa, who
resigned last week, of 'cowardice' for not facing shareholders,
Frankfurter Allgemeine Zeitung & Financial Times reported
Thursday.

The shareholders also accused the supervisory board and advisors
of mismanagement during the general shareholders' meeting, where
management board chairman Werner Klatten was questioned regarding
his role and the company's future.


KABEL MEDIA: Company Founder Subject Of Investigation
-----------------------------------------------------

The public prosecutors' office in Hamburg, Germany, has launched
an investigation on the founder of Internet agency Kabel New
Media AG, according to the August 1 edition of Financial Times
Deutschland.

A spokesperson close to the investigation said there are
suspicions of the criminal law violation. However, it is too
early to tell whether the accusations can be substantiated.

It is thought the investigation is connected to Kabel's
insolvency proceedings.


KINOWELT MEDIEN: Unzeitig Resigns as CFO
----------------------------------------

CFO Eduard Unzeitig of film-rights company Kinowelt Medien AG  
resigned Thursday amid growing pressure to find a partner to
alleviate the company's debt burden, the Wall Street Journal
reported.

Kinowelt Medien declined to comment on the resignation, but
people familiar with the situation say Unzeitig was probably
forced out by pressure from the company's creditors.

CEO Michael Koelmel will take over the duties of chief financial
officer until a replacement is named to the post.

Kinowelt has a short-term debt of 600 million marks and total
debt of 750 million marks. Its situation became dire when it
failed to find buyers for a package of films it bought from
Warner Bros. for $300 million.


MAN AG: Share Buyback Nears Completion
--------------------------------------

MAN AG has almost completed the share buyback program it launched
in January, Handelsblatt reported Friday.

The industrial conglomerate company has so far bought back 7.09
million shares to a total value of 162 million euros. In total,
it plans to buy back 7.16 million shares representing a total
4.6% of equity capital.

At that point the desired ratio of 3 ordinary shares per 1
preference share will have been attained.

In December of last year, shareholders authorized the group to
buy back up to 10% of equity capital. The supervisory board then
approved a buyback of up to 5% of the capital.


MB SOFTWARE: Board Members Resign From Company
----------------------------------------------

The two management board members and founders of mb Software AG,
Dipl.-Ing. Bernhard Mursch and Prof. Dr.-Ing. Klaus Wassermann,
resigned from the management board on August 1, effective
immediately, the Frankfurt Stock Exchange reported Thursday.

Bernd-Wolfgang Diekmann has been appointed the sole member of the
new management board.

Since the beginning of the year, Diekmann has been responsible
for all commercial and administrative activities of the company.
Together with preliminary insolvency practitioner RA Helge
Wachsmuth, he will continue negotiations already in progress with
prospective investors and parties looking for takeover
opportunities, and pursue the implementation of relevant
restructuring concepts.

The management board of MB Software filed insolvency procedures
with the county court in Hamlin in July.


ROLF DITTMEYER: Advertising Costs Scare Off Buyers
--------------------------------------------------

Potential buyers for troubled fruit-juice producer Rolf Dittmeyer
KG are being scared off by the high advertising budget the
company is demanding for its Valensina brand, Handelsblatt said
in its August 2 edition.

According to Becker's Bester GmbH marketing head Peter Muehlaus,
they have to invest 30 to 50 million marks annually in
advertising, which is nearly equal to Dittmeyer's annual sales.

Talks have also broken down with juice company Sportfit
Fruchtsaft GmbH & Co, which owns the rights to Gatorade brand
fruit drinks, Spa mineral water and Movenpick fruit juices.

Juice producer Eckes-Granini GmbH is now seen as the most likely
suitor. Eckes-Granini declined to comment.

Rolf Dittmeyer filed for insolvency on Tuesday, as their banks  
called in loans after the company's efforts to find a buyer
appeared unsuccessful.


TELDAFAX AG: Faces Trading Exclusion In September
-------------------------------------------------

Insolvent telecommunications services provider TelDaFax AG will
be excluded from trading on the Neuer Markt on September 1,
following a decision by stock exchange company Deutsche Borse AG,
Borsen-Zeitung & Financial Times reported Thursday.

TelDaFax will not appeal the decision.

TelDaFax is the only company on the Neuer Markt which has yet to
publish an annual business report for 2000.



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


ALITALIA-LINEE: Transport Minister Says Alliance Not Enough
-----------------------------------------------------------

Italy transport minister Pietro Lunardi said the commercial
alliance agreement signed on July between Alitalia and Air France
and Delta Air Lines Inc is not enough, according to La Stampa &
Financial Times' August 2 edition.

The partnership deals with Air France and Delta Airlines cover
the sharing of flights and frequent flyer programs.

Lunardi added that alliances are necessary but not sufficient to
relaunch the airline and resolve all of its strategic weaknesses.

The airline's new plan will be presented to shareholders in
October.


ALITALIA LINEE: Presents Business Plan to Cover Losses
------------------------------------------------------

The Italian Treasury has received a draft business plan from
Alitalia. The plan proposes the government inject more than two
trillion lire in capital to cover some of its losses, expand its
fleet and fund its part in the Sky Team alliance, led by Air
France and Delta, Reuters reported Thursday.

Alitalia CEO Francesco Mengozzi handed the draft plan to the
Treasury, which holds 53% of the flag carrier, to be studied
before the airline's board meets in September.

The business plan also includes a project to move some flights to
Rome's Fiumicino airport from Milan's Malpensa, close some
offices around the world and restructure its ground staff.

Alitalia officially joined the Sky Team alliance late last month,
linking with Air France, Delta, Aeromexico, Korea Air and Czech
Aerline.



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


SINTEL: Spain Approves Redundancy Plan
--------------------------------------

The Spanish government has approved a redundancy plan that will
affect 960 Sintel employees. The former telecom installer is
undergoing liquidation, El Mundo & World Reporter said in its
August 1 edition.

All of the company's workers are unemployed and may claim
benefits. The government's proposal includes the transfer of
Sintel's workers to other companies, early retirements and
voluntary redundancies.

Sintel's workers have camped on a Madrid street for the last six
months demanding the 11 months' back pay they are owed and a
solution to their job situation.


SINTEL: Telefonica Suppliers to Hire Sintel Workers
---------------------------------------------------

Telecom operator Telefonica has asked its main suppliers to
incorporate between 800 and 1,000 workers of former subsidiary
telecom equipment company Sintel into their workforce as part of
a plan agreed upon by the Spanish government and unions to employ
part of the bankrupt company's workforce.

Based on the August 2 report of Gaceta de los Negocios &
Financial Times, the directors of Dyctel, Cobra, Abentel,
Avanzit, Elecnor and Montreal met Telefonica representatives to
discuss the proposal.

Although the companies involved have yet to make any announcement
on the plan, unions hope the contracts offered to Sintel's
workers will be permanent.



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


BOLIDEN LIMITED: Invests in Ronnskar Smelter
--------------------------------------------

Mining company Boliden has succeeded in raising 2.64 billion
Swedish kronas in two share issues after struggling financially,
the Dagens Industri & Financial Times reported Thursday.

According to the newly appointed managing director Jan Johansson,
Boliden will increase capacity of its smelter in Ronnskar in
Sweden by 800 million Swedish krona.

The Ronnskar smelter has been one of the few profitable
operations of Boliden and a total of 2 billion Swedish krona has
been invested in the smelter over the last few years.

Major investments are also planned for copper mine Aitik, where
production will be increased by 50%. The increased investment
activities are the result of the successful rescue program.



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


BRITISH TELECOM: Earthlease Discusses Plans With Watchdog
---------------------------------------------------------

Chiefs at the Earthlease consortium met industry watchdog Oftel
to discuss their plans to buy British Telecom's "local loop"
assets, BBC News reported on Thursday. Earthlease bid 8 billion
pounds for the key part of line network.

Earthlease is said to be proposing an investment of 500 million
pounds a year for up to 10 years to develop the equipment, but BT
said its local loop assets are not for sale.

Observers believe Earthlease, backed by investment giants JP
Morgan Chase, Deutsche Bank and UBS Warburg, is determined to
pursue its bid.


CAMMELL LAIRD: Management Bids for Birkenhead Yard
--------------------------------------------------

Senior management at Cammell Laird's Birkenhead yard in the U.K.,
led by managing director Dave Gillam and financial and commercial
director Steve Brookfield, has listed a multi-million-pound bid
to receivers PriceWaterhouseCoopers, raising hopes of selling the
yard as a going concern.

The team, according to the Thursday edition of the Financial
Times, wants to return the site to its core ship-repair activity
and avoid the higher-risk shipbuilding work that brought the
yard's downfall in April.

Lloyds TSB, the Department of Trade and Industry, and Mersey
Docks & Harbour back the offer.

Directors Brett Martin and John Syvrett were also reported to be
on the verge of bidding for the Birkenhead yard.


CORUS GROUP: Names Tony Pedder as New CEO
-----------------------------------------

Steelmaker Corus Group Plc has named Tony Pedder as its new CEO,
effective September 1, replacing Sir Brian Moffat, the Thursday
edition of Bloomberg said.

Pedder joined British Steel, the state-owned predecessor of
Corus, in 1972 and became managing director of its stainless
steel business in 1986. In 1989, he was appointed managing
director of the general steels business.

Pedder's experience selling steel reflects a familiarity with
Corus's markets. His primary challenge will be to complete the
reduction of the U.K. workforce announced during the last two
years.

Corus lost 1.35 billion pounds in the 15 months through the end
of last year because of declining orders from U.K. manufacturers,
the pound's strength against the euro and costs to eliminate
jobs.

About 1,300 workers are gone. The rest are scheduled to leave by
2003.


EQUITABLE LIFE: PPA May Not Provide Guaranteed Return
-----------------------------------------------------

Equitable Life policyholders have learned that the Policyholders'
Protection Act could not provide them with a guaranteed return of
90% if the insurer is declared bankrupt, The Daily Telegraph &
Financial Times said in its August 2 report.

According to Independent's financial adviser Charles Levett-
Scrivener of Towry Law, "the provisional liquidator must first
complete a review to decide if the policy values as they stand
are reasonable, and only then does the 90% protection apply."


FUTURE NETWORK: Shares Fall as Talks Collapse
---------------------------------------------

Shares in Future Network were down 14p, or 26%, at 40p in early
trading on Thursday after the struggling magazine publisher said
talks about a possible sale of the company have been terminated,
the Financial Times reported.

The news comes less than 24 hours after media group, which
publishes the official PlayStation and Manchester United
magazines, first revealed it was in discussions about a possible
sale of the company.

Future has continued to review its options, including a disposal
of assets, a rights issue or placing to existing shareholders,
renegotiation of banking facilities or external investment from a
new partner.

This year, the company has taken steps to stabilize its position.
In June, the group sold its Business 2.0 title to publisher Time
Inc for 48.8 million pounds.


KNIGHT WILLIAMS: Directors Sue FSA For 10MM Pounds In Damages
-------------------------------------------------------------

The directors of collapsed retirement adviser Knight Williams &
Co have lodged claims for 10.7 million pounds in damages against
the Financial Services Authority in the High Court, according to
the Friday edition of The Times.

Directors Robin Knight Bruce, John Williams and Stephen Prescott
are also seeking an unquantified sum for damage to their
reputations, resulting from the actions of City regulators.

Knight Williams went into voluntary liquidation in August 1995,
after the Securities and Investments Board told it to set aside
2.78 million pounds to recompense clients who were the victim of
misselling. The directors took the action on the recommendation
of accountant Grant Thornton.

The directors were upset that their company was forced into
liquidation and that the SIB acted in bad faith in trying to
force the compensation provisions.

A spokeswoman for the FSA said the regulator would defend the
action vigorously.


MARCONI PLC: Cuts Jobs in Italian Subsidiaries
----------------------------------------------

Italian subsidiaries Marconi Communications and Marconi Mobile of
communications and IT group Marconi PLC will lay off 165
employees at their headquarters in Genoa, Italy.

In a report dated August 2, Il Sole 24 Ore & Financial Times said
the British group intends to cut up to 8,000 jobs in order to
reduce costs.

The crisis facing the group is due to a drop in orders from the
US market.


SCOOT.COM: Posts Supplementary Listing Particulars
--------------------------------------------------

On Thursday Online directories company Scoot.com said the
Supplementary Listing particulars, in relation to the Potential
Issue of up to 154,921,535 New Ordinary Shares of 2 pounds each
in connection with the debentures, were posted to shareholders on
August 1.

A copy of the document has been submitted to the UK Listing
Authority and will be available for inspection at the UK Listing
Authority Document Viewing Facility, which is located: Financial
Services Authority, 25 North Colonnade, Canary Wharf, London E14
5HS, Tel. No. 020 7676 1000.

Late last month, Scoot.com said it is selling its 50%
shareholding in Scoot Europe NV to its partner Vivendi Universal
as it is unable to continue its funding obligations.


VERSAILLES GROUP: SFO Charges Black In Versailles Collapse
----------------------------------------------------------

The Serious Fraud Office has charged John Black in connection
with last year's collapse of trade finance group Versailles, the
Financial Times reported Thursday.

The SFO has charged Black with helping Versailles' former finance
director Frederick Clough launder crime proceeds through
companies HSPO, Premium Selections and Optel Technology.

The SFO charged Clough and Versailles' former chairman and CEO
Carl Cushnie with fraudulent trading.

Versailles went into receivership in January last year after the
discovery of accounting irregularities.

According to Versailles' receiver PriceWaterhouseCoopers, the
group booked 69 million pounds of false transactions alongside
its genuine business of lending money to sustain small companies
while they waited for customer payments.






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. Lyndsey Resnick,
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
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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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