/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020326.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 Tuesday, March 26, 2002, Vol. 3, No. 60 Headlines * B E L G I U M * UBIZEN NV: Notification of Interests (COBRA nv) * G E R M A N Y * EM.TV: Delays 2001 Results as Auditors Review Kirch Tie-ups KINOWELT MEDIEN: To Sell Entire Cinema Business Next Month KIRCHGRUPPE: Banks Want Leo Kirch's 'Baby' in Return for Cash MAN AG: Notification of Director's Interests MOBILCOM: CEO Threatens FT With Court Order to Enforce 'Option' PHILIPP HOLZMANN: Petitions Frankfurt Court for Insolvency PHILIPP HOLZMANN: Company Profile * I R E L A N D * AER LINGUS: Faces Criticism on Plans to Cut Dublin-Cork Flights AIB: Announces Appointment of Forde as Managing Director BEESON GREGORY: Nears Flotation With Southampton University Deal HARLAND & WOLFF: Plan Faces Rejection as PwC Finds it Unviable * I T A L Y * ALITALIA LINEE: Unions Back Labor Deal That Saves Jobs, EUR 142MM * N E T H E R L A N D S * KPN NV: Invites 5.75% of Noteholders to Tender Holdings for Cash * S W E D E N * ICON MEDIALAB: WM-data Acquires IconMedialab Norway * S W I T Z E R L A N D * ABB LTD: Denies Financial Unit Sale and Market Flotation * U N I T E D K I N G D O M * BIOGLAN PHARMA: Quintiles Acquires Bioglan's U.S. Operations COOKSON GROUP: Notification of Director's Interests (Sharpe) COOKSON GROUP: Notification of Director's Interests (Millard) COOKSON GROUP: Notification of Director's Interests (Howard) COOKSON GROUP: Notification of Director's Interests (Cozzani) CONSIGNIA: To Cut 40,000 Employees, Close 3,000 Offices in 3 Yrs. ENODIS PLC: Notification of Director's Interests (Schmidt) INVENSYS PLC: Inks 10-year Outsourcing Agreement With IBM Corp. MARCONI PLC: Cancels Loan Facilities MARCONI PLC: S&P Hits Weak Financial Footing, Pulls Down Ratings MARCONI PLC: Eurobonds Slide Further as Talks With Banks Fail ============= B E L G I U M ============= UBIZEN NV: Notification of Interests (COBRA nv) ----------------------------------------------- Ubizen N.V. -- http://www.ubizen.com/--, managed security systems provider, announced last week that Concentra Broadcasting Agency (COBRA nv) holds 900,000 ordinary voting shares of the company. The names of the shareholders, number of shares, with the corresponding equivalent percentage is listed as follows: Cobra 6,318,320 17.94 % R2I 1,434,858 4.08 % Stijn Bijnens 2,711,812 7.70 % Wouter Joosen 1,682,580 4.78 % Christophe Huygens 1,021,612 2.90 % KUL 1,004,480 2.85 % ------------------ ---------- ------- Total 14,173,662 40.25 % Further information regarding this notification may be obtained by contacting Ina Suffeleers of Ubicenter at Philipssite 5 - B- 3001 Leuven at telephone number +32 16 28 70 60 or fax +32 16 28 70 77. ============= G E R M A N Y ============= EM.TV: Delays 2001 Results as Auditors Review Kirch Tie-ups ----------------------------------------------------------- A re-evaluation of its ties with insolvent KirchGruppe will delay by at least a month the release of EM.TV & Merchandising AG's 2001 results, Dow Jones Newswires said recently. Instead of March, the 2001 accounts will be bared on April 29. Accordingly, auditors are reviewing the valuation of Junior.TV GmbH, the joint venture of EM.TV and KirchGruppe. In addition, the auditors will also look into the appraisal of EM.TV's remaining stake in Formula One motor racing, which the company is planning to sell to Kirch in exchange of assets. An EM.TV spokesman confirmed that question marks over Kirch Group's future were behind the move. It is not yet certain whether write-downs are needed, he said. Junior.TV operates a channel on Premiere, the unprofitable pay-TV platform run by Kirch. In recent weeks, many analysts said that Kirch must close the losing unit or find a partner. During its last report, EM.TV booked a pretax loss of EUR59 million in the first nine months of the year on sales of EUR634 million. Its stock had fallen EUR0.1, or 6.3%, to EUR1.5 by 1305 GMT. Its shares have dropped 73% in the last 12 months. KINOWELT MEDIEN: To Sell Entire Cinema Business Next Month ---------------------------------------------------------- Insolvent Kinowelt Medien AG took a big step Friday on a plan to completely withdraw from its cinema operations, selling its Kinopolis cinema chain to an unnamed Frankfurt investment firm. Dow Jones Newswires says another sale involving the company's 25.2% stake in Village Roadshow multiplex cinemas is forthcoming before April. The transaction will completely detach the company from this particular venture. In a separate deal, the company also sold a 51% majority holding in TV production company DREFA Produktion und Lizenz GmbH to an existing shareholder, DREFA Media Holding GmbH. No financial details were disclosed, the report says. Meanwhile, Wolfgang Ott, provisional insolvency administrator of Kinowelt Medien AG and Kinowelt Lizenzverwertungs GmbH, said the company will be able to meet its current liabilities, including wages and salaries from its own resources even after the end of March. The company filed for insolvency in December after creditor ABN Amro Holding NV refused to extend it a loan. A former high-flyer on the Neuer Markt, Kinowelt Medien fell victim to over-ambitious expansion that caused it to run out of cash due to losses in ventures outside its traditional rights trading business. KIRCHGRUPPE: Banks Want Leo Kirch's 'Baby' in Return for Cash ------------------------------------------------------------- A "now or never" situation was reportedly presented to Leo Kirch Sunday, as he met with creditors who were expected to offer money with one condition: He relinquishes control over prized asset Kirch Media. The Wall Street Journal yesterday said that the rescue plan approved by four of its biggest creditor banks involved a cash injection of up to EUR800 million of fresh capital. In return, Mr. Kirch has to let go of his 60% interest in Kirch Media, the group's core rights-trading unit. It is not yet certain whether Mr. Kirch accepted the offer, but many believe that the proposal is his last chance to negotiate a rescue package with HVB Group, Commerzbank AG, and Bayerische Landesbank Girozentrale. Absent the salvage plan, the media conglomerate could be forced to file for insolvency as early as next week, the paper said. Analysts interviewed by the paper said the cash injection could keep the group afloat at least for six months, enough time to sell a basketful of assets, including stakes in local and foreign broadcasters and other media holdings. The report said the rescue package was spearheaded by Werner Schmidt, chairman of public-sector regional lender Bayern LB. The bank, 50%-owned by its home state of Bavaria, has lent nearly EUR2 billion to Kirch, making it the creditor with the greatest exposure to Kirch's financial fiasco. The package had the backing of HVB, DZ Bank and Commerzbank. As of Sunday, the creditors were still trying to get Dresdner Bank AG on board, the report said. Deutsche Bank AG, whose loan to Kirch is backed by Kirch's 40% stake in Axel Springer, appeared to be unwilling to participate in the rescue plan, the paper said. The plan requires the approval of Kirch Media executives and major Kirch shareholders Rewe Group, Italian Prime Minister Silvio Berlusconi, Rupert Murdoch and Lehman Brothers Holdings Inc. MAN AG: Notification of Director's Interests -------------------------------------------- Man AG -- http://www.man.de/-- , the commercial vehicle manufacturing group based in Muenchen, was informed Friday, March 22, 2002, that Mr. Harvey McGrath, Chairman of the Company, donated 150,000 Man Group plc shares for nil consideration to charity. Following the donation, Mr. McGrath now holds 7,336,800 shares in the Company representing 2.75% of the issued share capital. In addition, Mr. McGrath holds awards in respect of 209,521 shares under the Performance Share Plan. MOBILCOM: CEO Threatens FT With Court Order to Enforce 'Option' --------------------------------------------------------------- MobilCom CEO Gerhard Schmid is standing his ground against France Telecom and will even seek a court order to enforce the "put option" he exercised last week. According to the Associated Press, Mr. Schmid intends to seek the decree in order to force France Telecom to buy his 33% stake in the company and gain majority control. Mr. Schmid has been at odds with the French firm, which holds a 28.5% in MobilCom, over the latter's objection to spend EUR1.3 billion on new wireless services in Germany. France Telecom, however, is opposed to the plan preferring, instead, a link-up with rivals to keep down cost. The French investor said MobilCom had "no chance" against larger operators like Deutsche Telekom and Vodafone unless it joins forces with one of three other smaller companies that hold German licenses. But Mr. Schmid would have none of this. "If Telecom wants a change in strategy it should take over immediately," Mr. Schmid was quoted by Frankfurter Allgemeine Sonntagszeitung as saying. The exercise of the "put option" has place the company under threat of bankruptcy. France Telecom had earlier warned that such a move will trigger a legal dispute that will force it to suspend financial support. PHILIPP HOLZMANN: Petitions Frankfurt Court for Insolvency ---------------------------------------------------------- It's back to the bankruptcy court for Philipp Holzmann. The 150-year-old German construction icon booked another date with the court Thursday evening after its creditor banks refused to back a second salvage plan in as many years. Handelsblatt says Dresdner Bank, Commerzbank and HypoVereinsbank denied Thursday approval of the rescue package drawn up by the group's main creditor and shareholder, Deutsche Bank, despite urgent appeals by management. "On March 21 Philipp Holzmann AG filed a motion for initiating insolvency proceedings because of inability to pay," the company, which built the Reichstag parliament building and many of Germany's most famous landmarks, said in a statement. According to Frankfurt's lower district court, the company will be put under administration with Holzmann's management still retaining a say in running the company. Frankfurt-based lawyer Ottmar Hermann is to be appointed as administrator. The court also said that management is expected to present creditors with an insolvency plan to prevent the pure liquidation of the company. Chancellor Gerhard Schroder, who brokered the first rescue plan two years ago, said he regretted the collapse of the firm. "I would have wished for a different outcome from the bank talks," the paper quoted a statement from the chancellor. The salvage plan brokered by Chancellor Schroder involved a US$2 billion bailout package that successfully aborted the company's first date with a bankruptcy court in November 1999. The present plan calls for creditors to inject EUR86 million into the company and in return get Holzmann's HSG building services division, whose output and order backlog each amounted to about EUR145 million in 2000. On top of that, the creditor banks would also be handed the company's EUR500 million real estate assets, including debt and rental guarantees. But in addition to the cash injection, creditors would have to waive EUR114 million in debt, and some of them would have to reopen their credit lines. The firm currently has EUR1.5 billion in bank liabilities. It posted a loss of EUR237 million last year, exceeding the company's equity of EUR126 million, according to newspaper reports. PHILIPP HOLZMANN: Buyers Try to Get a Piece of Erstwhile Icon ------------------------------------------------------------- Investors, buyers and a host of other players are now lining up to get a piece of Philipp Holzmann, the German construction firm icon that filed for bankruptcy last week. The biggest among them, according to the Financial Times, is Bilfinger Berger, Germany's second largest construction group, which reiterated Friday that it is in talks with Deutsche Bank on making a sizeable investment in the insolvent rival. The Mannheim-based firm is known to be eyeing Holzmann's U.S. subsidiary J.A. Jones for a while now. Until recently, Holzmann has ruled out any sale of individual divisions. J.A. Jones churned out a total of US$2.9 billion output in 2000, making it an attractive asset for Bilfinger, who if successful in acquiring it, will make a big expansion leap. Already Bilfinger's U.S. subsidiary Fru-Con Holding Corporation grossed EUR580 million in the U.S. and Mexico in 2000. Estimates put the value of Holzmann's US units J.A. Jones and Lockwood Green at up to EUR500 million. But aside from these U.S. assets, the paper says Bilfinger is also interested in the group's German facilities management businesses, which are worth about EUR80 million. Germany's biggest builder, Hochtief, on the other hand, said on Friday it was "interested in parts" of Holzmann but ruled out taking over the whole firm. It insisted that it was not in any current negotiations, the report says. The Essen-based group, one of Holzmann's joint venture partners on several projects, is thought to be most interested in the HSG services unit, another of Holzmann's profitable and attractive division. Meanwhile, Holzmann's European road building company, Deutsche Asphalt, has reportedly drawn interest from Cologne-based builder Strabag. It could be worth up to EUR150 million, some analysts told the paper. Investment bankers told the Financial Times that several continental European companies, "mainly Spanish and French", were also taking a close look at some of Holzmann's operations. Spanish builder Dragados, one of Europe's biggest construction groups, recently acquired Dutch firm HBG, which has strong interests in Germany. Bankers are speculating that it might also be eyeing some of Holzmann's German businesses, although the dire state of the German construction market remains a strong deterrent, the paper said. The 150-year-old Holzmann filed for insolvency Thursday last week. PHILIPP HOLZMANN: Company Profile --------------------------------- Name: Philipp Holzmann Group Taunusanlage 1 D - 60329 Frankfurt am Main Phone: 0049-69-262-1 Fax: 069-262-433 Email: info@hlzm.de Website: http://www.hlzm.de/ SIC: Construction and Civil Engineering Employees: 23,659 (2000) Net Loss: EUR124.3 million (US$108.9 million) (09-30-01) Total Assets: EUR3.8 billion (US$3.3 billion) (09-30-01) Total Liabilities: EUR2.8 billion (US$2.4 billion) (09-30-01) Type of Business: Philipp Holzmann's construction and civil engineering activities are divided into four major operations. General Construction involves housing, office and commercial buildings, bridges and roads, and tunnels construction. Road Construction and Building Materials Extraction includes roads, bridges and runways construction; sand and gravel and quarry operations; cement production and distribution; asphalt mixers; poured asphalt and insulation activities. Engineering Project Development activities include the development of plants for water and gas supply, sewage disposal and soil treatment; Other services include integrated planning, real estate and asset management and development, environmental services and plant maintenance. Trigger Event: On March 21, a press statement from the company said it will file a motion to initiate insolvency proceedings after its key creditors Commerzbank and Dresdner Bank turned down a proposed rescue package after finding it could not back the plan drawn up by Deutsche Bank (Holzmann's biggest shareholder with around 20% stake) for the long-term future of the construction group. Holzmann needs cash from banks after its debt stood at EUR1.6 billion (US$1.4 billion). According to a report obtained from the Handelsblatt on its March 14 issue, the group recorded a loss of EUR237 million. A seven-year recession in the country's building industry also contributed to the failure of Holzmann's efforts to return to profit after its first two billion dollar bailout. Chairman of Supervisory Board: Prof. Dr.-Ing. E.h. Gerhard Neipp Management Board Chairman: Senator e.h. Prof. Konrad Hinrichs Member of Management Board: Jorg Eschenbach Member of Management Board: Dr.-Ing. Herbert Lutkestratkotter Member of Management Board: Dr. Johannes Ohlinger Member of Management Board: Dr. Joachim Manke Auditors: Ernst & Young Deutsche Allgemeine Treuhand AG Contact Information in Germany: Branch Office Berlin Heerstrabe 16 D -14052 Berlin-Charlottenburg Phone: 0049-30-30062-0 Fax: 0049-30-30062-148 Berlin@hlzm.de ============= I R E L A N D ============= AER LINGUS: Faces Criticism on Plans to Cut Dublin-Cork Flights --------------------------------------------------------------- Politicians and the business community in Cork are expected to barrage Aer Lingus with criticism if it goes ahead with a plan to cut flights between Cork and Dublin by half, Online.ie says. The airline wants to reduce flights between the two cities from six times a day to three in order to increase capacity on the more lucrative European market. The move comes despite warnings to the government that regional tourism is facing a bleak stage if development at Cork and Shannon airports is sacrificed to fund the controversial Pier D in Dublin, the online paper says. Ryanair or Aer Arann will likely fill the spot Aer Lingus will leave, the report says. AIB: Announces Appointment of Forde as Managing Director -------------------------------------------------------- Allied Irish Banks has announced the appointment of Donal Forde as the new Managing Director of AIB Bank, Republic of Ireland. He was formerly General Manager of AIB Bank's Strategic Development Unit (SDU). Donal, 41, succeeds Eugene Sheehy, who was recently appointed Chief Executive Officer, AIB USA Division and Executive Chairman Designate of Allfirst Financial Inc and Allfirst Bank. A native of Newmarket, Co Cork, Donal joined AIB in September 1978. He worked in AIB Capital Markets becoming Head of AIB Corporate and Commercial Treasury in 1995 and Head of Treasury Services in 1998. In September 1999, he was appointed General Manager of the Strategic Development Unit, AIB Bank. The role of the SDU is to initiate and co-ordinate strategic activities throughout the bank with a focus on the long-term health and positioning of the business. Michael Buckley heads the AIB Group as chief executive. For further information regarding Corporate Relations, please contact Catherine Burke at telephone number +353-1-6413894, with address at AIB Group, Bankcentre, Ballsbridge, Dublin 4. For inquiries regarding Group Investor Relations, contact Alan Kelly, Head of Capital at telephone number +353-1-6412162, with address at AIB Group, Bankcentre, Ballsbridge, Dublin 4. BEESON GREGORY: Nears Flotation With Southampton University Deal ---------------------------------------------------------------- Beeson Gregory subsidiary IP2IPO heads closer to flotation as it inked early this week a deal with Southampton University, the Times of London reported yesterday. Under the terms of the pact, IP2IPO will invest GBP5 million in spin-out companies from Southampton in the next five years in return for equity stakes in the spin-outs. IP2IPO will get a 20% stake in Southampton Asset Management, a company that holds the university's equity involvement in spin-outs. The report says IP2IPO is raising up to GBP3 million of new money, valuing it at GBP40 million and moving it closer to flotation even though it constitutes a substantial part of Beeson Gregory's valuation of almost GBP65 million. Sixteen months ago IP2IPO also invested GBP20 million in Oxford University's chemistry department in return for a slice of equity in any spin-out companies from the department, the report said. The Beeson unit invests in intellectual property business as well as in UK science. HARLAND & WOLFF: Plan Faces Rejection as PwC Finds it Unviable -------------------------------------------------------------- The future of Northern Ireland's Harland & Wolff shipyard turned gloomy Friday as PricewaterhouseCoopers concluded that there was insufficient data to support its rescue plan. The accounting firm told cross-party executives late last week that there's just not enough basis to conclude that the plan would work. The rescue blueprint envisages the shipyard closing down its steel workshops to focus on ship repair, technical services and engineering work for offshore wind farms. But in doing so, it would have to seek approval to change the terms of its long-term lease on the 160-acre Queen's Island site. Harland's lease, which runs to 2114, stipulates that the land can only be used for shipbuilding or heavy engineering. According to the Financial Times, the idea is to parcel off 72 acres of the site for development, which hopefully will raise the cash to fund the company's business plan. A senior partner of a leading Belfast surveyors puts the value of the site at GBP500,000 (US$712,000) an acre. However, the supply of similar brownfield sites in Belfast could make it hard to find a buyer, the surveyor said. If given approval, company officials say the most likely outcome is that Harland would sell the revalued lease to the parent company, which would provide the cash injection. Meanwhile, the company issued Friday a 90-day notice of its intention to lay off 144 core employees - 100 from among the steel workers or metal bashers associated with traditional shipbuilding. Harlan said the move was "compatible with the reduction required under the business plan." A final decision is on the salvage package is not expected before the 12-member cabinet of the regional government meets on Thursday. But short of a last-minute cash injection by the yard's Norwegian parent - Fred Olsen Energy - officials told the paper that Harland will likely close, with the loss of about 500 jobs. ========= I T A L Y ========= ALITALIA LINEE: Unions Back Labor Deal That Saves Jobs, EUR 142MM ----------------------------------------------------------------- Alitalia management successfully forged Friday a new labor agreement with unions ahead of a scheduled board meeting this week, which is set to tackle a crucial re-capitalization plan. According to Dow Jones Newswires, eight trade unions readily accepted the deal, as it merely proposes a cut in work hours, not jobs. Union sources told the newswire that the deal will be officially ratified tomorrow, the day before the board meeting. Earlier, in a statement, Alitalia said the board will discuss the EUR1.4 billion re-capitalization only if the agreement with unions has been signed. The board meeting is also expected to approve the 2001 results. The report says the re-capitalization will almost entirely be through a convertible bond issue to be launched before the summer. With the new labor agreement, the cash-strapped airline is expected to save EUR142.8 million over two years, union sources told the newswire. Almost half of the planned savings will come from cutting the work hours of 12,700 ground personnel. Meanwhile, the report says the unions are also expected to give its nod to a planned closer integration between Alitalia and Air France. Last year, the two airlines agreed to code share on a number of routes and sell seats for each other's flights. They also said the alliance could be strengthened by having the two companies buy small stakes in each other's capital. Speculations are rife that Air France is interested in acquiring 14% of Alitalia. ===================== N E T H E R L A N D S ===================== KPN NV: Invites 5.75% of Noteholders to Tender Holdings for Cash ---------------------------------------------------------------- Royal KPN N.V. -- http://www.kpn-corporate.com/-- on March 18, 2002 invited holders of the EUR1.5 billion 5.75% Step-up Notes 2000 due June 2003 (currently paying 6.05%) with maturity June 13, 2003 to tender their notes for cash. In relation to this invitation KPN is now giving notice that the Maximum Spread (which will result in a minimum price) over the gross redemption yield of the Benchmark Government Bond that will be paid for all tendered Notes accepted for purchase is 0.90%. The Invitation to Tender will expire today, March 26, 2002 at 17:00 hours, Central European time, unless earlier terminated, extended or amended. The Gross Redemption Yield of the Benchmark Government Bond as of 17:30 hours, Central European time, on Thursday, March 21, 2002 was 3.945%. If the Gross Redemption Yield does not change, the sum of the Maximum Spread and the Gross Redemption Yield would be 4.845%, which would result in a hypothetical Purchase Price of EUR101.344 per EUR100 principal amount of the Notes. The invitation to tender is not being made within the United States or to U.S. persons. Additional information concerning the terms of the invitation to tender, including all questions relating to mechanics, may be obtained by contacting the Dealer Manager, Credit Suisse First Boston (Europe) Limited at +44 (0) 207 883 5423/6748. Noteholders will be able to participate in the invitation to tender via CSFB's web site, http://primedebt.csfb.com/KPNtender. The Tender Agent is Deutsche Bank AG London and may be contacted at +44(0) 20 7547 1082. Copies of the Information Memorandum can be obtained free of charge at Allen & Overy, Apollolaan 15, 1077 AB Amsterdam at +31 20 674 1635. =========== S W E D E N =========== ICON MEDIALAB: WM-data Acquires IconMedialab Norway --------------------------------------------------- Icon Medialab International/Lost Boys group -- http://www.iconmedialab.com/-- recently merged international eBusiness and IT professional services company, announced Friday that WM-data, one of the leading computer services companies in the Nordic region, will acquire IconMedialab Norway. On March 5 IconMedialab/Lost Boys announced that the company has developed steps to strengthen its strategic, multi-national position, and at the same time ensure an effective integration. The company will also eliminate existing overlap between the two merged companies as well as improve the expected financial performance. One of the actions was to seek to divest its office in Norway. Today IconMedialab/Lost Boys announced that WM-data will acquire IconMedialab Norway, terms of the transactions were not disclosed. Robert Pickering, IconMedialab/Lost Boys' CEO, said through the acquisition, the company will continue to focus on sales growth and profitability in its core activities and markets. IconMedialab and Lost Boys merged in January 2002. The group operates with 1,500 employees in 15 countries throughout Europe and the U.S. For details regarding this announcement, contact Kathryn Adamson, IconMedialab/Lost Boys at telephone number Tel: +31-20-535 6161, +31 615 051 243or email at Kathryn.adamson@lostboys.com. ===================== S W I T Z E R L A N D ===================== ABB LTD: Denies Financial Unit Sale and Market Flotation -------------------------------------------------------- ABB Ltd. Chief Financial Officer Peter Voser has denied recent reports that the company is experiencing short-term liquidity problems, Dow Jones Newswires reported recently. Mr. Voser also ruled out the sale of the firm's entire financial arm as has been speculated by market observers who based their cue from earlier statements of the group's chairman. Meanwhile, a spokesman also told the newswire that the company is not seriously considering suggestions to float some equity in the market to raise cash for its day-to-day operations. "We currently have no plans for an equity issue, nor do we currently plan to issue a convertible bond," ABB spokesman Thomas Schmidt told the news agency. Last week, J.P. Morgan and Merrill Lynch said in research notes that ABB could tap the capital markets to boost its capital base. Mr. Schmidt said the Swiss engineering group plans to reduce debt by US$1.5 billion by the end of 2002 through the sale of assets and real estate. He said the firm is now assessing its portfolio to see which assets do not conform to the company's margin target. Zuercher Kantonalbank analysts expect ABB to announce asset sales in the third quarter of 2002 at the latest, the newswire said. The company's net debt was US$4.1 billion at the end of 2001. The rise in debt was due to an increase in provisions to US$1 billion for asbestos-related lawsuits in the U.S. ABB posted a net loss of US$691 million in 2001, a first in years. =========================== U N I T E D K I N G D O M =========================== BIOGLAN PHARMA: Quintiles Acquires Bioglan's U.S. Operations ------------------------------------------------------------ Quintiles Transnational Corp. announced Friday that it has acquired certain assets of Bioglan Pharma Inc., the U.S. subsidiary of U.K.-based Bioglan Pharma Plc -- http://www.bioglan.com/--, in a transaction valued at approximately US$26.7 million (GBP18.5 million). As part of the agreement, Quintiles also has acquired Bioglan Pharma Inc.'s rights to certain dermatology products now on the market in the United States, including the prescription product ADOXA(TM) (doxycycline) for the treatment of severe acne. These products complement Quintiles' purchase of the North America commercialization license for Solaraze(TM) (diclofenac sodium) Gel, formerly held by Bioglan, in December 2001. Solaraze is a new class of topical treatment for the pre-cancerous skin condition actinic keratosis. Bioglan Pharma's US arm, is based in Malvern, Pensylvannia and has about 45 employees in the United States. Robert Moccia heads its US operations as president. He will report to Ron Wooten, president of Quintiles' PharmaBio Development group. Quintiles Transnational is the world's leading provider of information, technology and services to bring new medicines to patients faster and improve healthcare. Headquartered near Research Triangle Park, North Carolina, Quintiles is a member of the S&P 500 and Fortune 1000. For more information visit the company's Web site at www.quintiles.com. For further details regarding this announcement, please contact Pat Grebe of Media Relations through email at media.info@quintiles.com or Greg Connors of Investor Relations invest@quintiles.com or call 919 998 2000. COOKSON GROUP: Notification of Director's Interests (Sharpe) ------------------------------------------------------------ Cookson Group plc -- http://www.cooksongroup.co.uk/--, announced last week that on March 20, 2002, it granted options to Raymond Sharpe, the company's director. The options involve over 429,714 ordinary shares of 50 pence each and will be equivalent to 93.5 pence each excercisable between March 20, 2005 to March 19, 2012. Following this notification, total number of shares he holds become 3,056,073 shares. Cookson Group plc, with headquarters in London, is engaged in the manufacture of electronics, ceramic and precious metals, equipment, processes and services for use in the technology and electronics industry. For inquiries regarding this announcement, please contact Alan Wallwork, assistant company secretary of Cookson Group plc at telephone number 020 7766 4537. COOKSON GROUP: Notification of Director's Interests (Millard) ------------------------------------------------------------- Cookson Group plc, announced last week that it granted options to Dennis Millard, its company director, March 20, 2002. The options involve 336,898 ordinary shares of 50 pence each in Cookson Group plc, exercisable between March 20, 2005 to March 19, 2012. The options will be equivalent to 93.5 pence each as fixed at time of grant. Following this notification, total number of shares he holds become 2,084,086 shares. For inquiries regarding this announcement, please contact Alan Wallwork, assistant company secretary of Cookson Group plc at telephone number 020 7766 4537. COOKSON GROUP: Notification of Director's Interests (Howard) ------------------------------------------------------------ Cookson Group plc, announced last week that on March 20, 2002, it granted options to Stephen Howard, its company director. The options involve over 741,015 ordinary shares of 50 pence each in Cookson Group plc, exercisable between March 20, 2005 to March 19, 2012. It will be equivalent to 93.5 pence each as fixed at the time of grant. Following this notification, total number of shares he holds become 5,061,087 shares. For inquiries regarding this announcement, please contact Alan Wallwork, assistant company secretary of Cookson Group plc at telephone number 020 7766 4537. COOKSON GROUP: Notification of Director's Interests (Cozzani) ------------------------------------------------------------- Cookson Group plc, announced last week that it granted on Wednesday options to Gian Carlo Cozzani, its company director. The options involve over 300,921 ordinary shares of 50 pence each in Cookson Group plc, exercisable between March 20, 2005 to March 19, 2012 and will be equivalent to 93.5 pence each. Following this notification, Mr. Cozzani's will have 1,990,633 options and stock appreciation rights, the notification adds. For inquiries regarding this announcement, please contact Alan Wallwork, assistant company secretary of Cookson Group plc at telephone number 020 7766 4537. CONSIGNIA: To Cut 40,000 Employees, Close 3,000 Offices in 3 Yrs. ----------------------------------------------------------------- As much as 40,000 jobs at Consignia will be guillotined in the next three years to cut costs that now total GBP1.5 million a day, BBC News said Sunday. According to the television channel, the company hopes to save GBP1.2 billion a year from the measure and remain viable despite the government's plan to open postal deliveries to competition in a three-stage process starting this year. The news channel said most of the cuts will come from Parcel Force, which is currently losing GBP15 million a month and has not made a profit for a decade now. Some jobs are also expected to go from the Post Office administration and central management, the news outfit said. BBC said Consignia is losing GBP1.5 million a day on operating the Royal Mail, Parcel Force and the Post Office network. Consignia's profits have suffered from increasing use of email, a one-penny loss on every first class letter delivered in Britain and major losses at Parcel Force's international division, said BBC. As part of a three-year plan to drag the business into profit, more than 3,000 urban post offices are also likely to be closed and the name will be changed back to Royal Mail, BBC added. ENODIS PLC: Notification of Director's Interests (Schmidt) ---------------------------------------------------------- ENODIS PLC -- http://www.enodis.com/-- , the London-based food equipment manufacturer, announced Friday the shareholdings of Waldemar Schmidt, the company's director. He purchased 10,000 oridary shares of stocks (50p) at 86p per share. Following this notification, he shall have a total of 12,300 ordinary shares. For inquiries regarding this announcement, contact R. Syms at telephone number 020 7304 6000. INVENSYS PLC: Inks 10-year Outsourcing Agreement With IBM Corp. --------------------------------------------------------------- Cash-strapped automation and controls firm Invensys Plc, which recently bared the sale of its flow controls unit to Flowserve, has again inked a deal with another American company. This time it is with the International Business Machines Corp., which agreed to manage the company's computing systems under a dozen countries in an outsourcing contract worth US$100 million a year for 10 years. According to Dow Jones Newswires, IBM will manage Invensys' applications, as well as its technology, and provide helpdesk and support services for about 29,000 workstations. Some 600 employees from Invensys' information technology division will also join IBM worldwide. MARCONI PLC: Cancels Loan Facilities ------------------------------------ After Marconi's discussions with bank lenders, the London-based telecoms equipment manufacturer announced through a statement Friday it has agreed to cancel the undrawn commitments under its two syndicated loan facilities. Further, Marconi has also agreed to place on demand the approximately GBP2.2 billion drawn portion of the EUR4.5 billion facility, the final maturity date of which remains unchanged at March 2003. Marconi and its banks consider that the cancellation of the undrawn commitments was appropriate due to Marconi's cash position arising from its successful disposal program. Barclays and HSBC as joint coordinators for the bank group have confirmed that the banks are supportive in principle to continue to work with Marconi to achieve a refinancing proposal that is acceptable to all stakeholders. Marconi is listed on both the London Stock Exchange and NASDAQ under the symbol MONI. Additional information about Marconi can be found at www.marconi.com. For public relations matters regarding this announcement, please contact David Beck or Joe Kelly at telephone number + 44 (0) 20 7306 1771; or email at joe.kelly@marconi.com. For investor relations, contact Heather Green at telephone number + 44 (0) 20 7306 1735 or email at investor.relations@marconi.com for more details. MARCONI PLC: S&P Hits Weak Financial Footing, Pulls Down Ratings ---------------------------------------------------------------- A weakening financial position and a possible restructuring of balance sheet on terms detrimental to bondholders were cited by Standard & Poor's in downgrading Marconi Plc recently. The ratings agency lowered last week the company's long-term corporate credit rating to B- from B+ while placing all the company's ratings on CreditWatch with negative implications. The senior unsecured debt ratings on guaranteed subsidiary Marconi Corp Plc were also lowered to CCC from B-, Ananova said. "The downgrade reflects Marconi's extremely weak funding position, and the group's unsuccessful negotiations of a new bank facility to replace its current facility maturing in March 2003," S&P credit analyst Leandro De Torres Zabala told Ananova. S&P also said that there is "a high probability that the group's balance sheet will be restructured on terms that are detrimental to bondholders. Moreover, further deterioration of market conditions is expected, and these are likely to persist longer than previously expected, beyond fiscal year to March 2003." The ratings agency says the company has in excess of GBP1 billion in available cash from recent asset disposals. "However, the group has agreed to cancel the undrawn commitments under its two syndicated loan facilities and to place on demand the approximately GBP2.2 billion drawn portion of the uncovenanted EUR4.5 billion facility maturing in March 2003. "Given the trend of cash consumption over the past few quarters, much reduced financial flexibility following the last round of asset disposals, and strong dependence on bank support to continue running its business, Marconi's short-term funding position is deemed extremely weak," S&P said in a statement. MARCONI PLC: Eurobonds Slide Further as Talks With Banks Fail ------------------------------------------------------------- Marconi Plc's bonds became the hottest units to be traded in the European bond market Friday last week, but not because they were promising better yields. On the contrary, brokers went on a wild frenzy disposing the firm's bonds after it emerged that it had walked out of talks with banks over its main financing facility. The company's 6.375% 2010 bonds plunged as low as 25% of face value after the news emerged, down from 38% to 40% on Thursday. Late in the trading day, the bonds were quoted at 28% to 30%. "A debt-for-equity swap is almost a fait accompli now," Societe Generale analyst Suki Mann told Dow Jones Newswires. ************ 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, Larri-Nil Veloso and Maria Lourdes Reyes, 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. 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