/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020514.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, May 14, 2002, Vol. 3, No. 94 Headlines * B E L G I U M * FLV FUND: Reporting and Trading Currency Switch to Euro * F I N L A N D * SONERA CORPORATION: Subsidiary Secures Extension of Loan Maturity * G E R M A N Y * DEUTSCHE TELEKOM: Reduces Earnings Forecast on Bond Auction ISION INTERNET: BT Group Interested in Troubled Energis Arm * I T A L Y * BLU SPA: Mobile Operator Will Sell Assets to Competitor BLU SPA: Expects No Hitches in Liquidation of Assets, Licenses FIAT SPA: To Bare Huge Q1 Losses in Annual General Meeting Today * N E T H E R L A N D S * LETSBUYIT.COM NV: Announces 30MM Authorized Capital Increase * N O R W A Y * KVAERNER ASA: Members of Committee of Inquiry Appointed * P O L A N D * ELEKTRIM SA: Announces Initial Agreement With Bondholders ELEKTRIM SA: Discloses Shareholders With Over 5% Interests * S W E D E N * CELLPOINT INC.: To Seek Reversal of Bankruptcy Ruling on Unit * U N I T E D K I N G D O M * BRITISH TELECOM: Ignite to Shed 2,200 as Part of New Chief's Plan CONSIGNIA: To Negotiate Return of GBP1.8 BB Extra Remittances CONSIGNIA: Harassment Costs GBP 15MM a Year, Says Amicus CORUS GROUP: To Buy Brazilian Rival to Sidestep U.S. Tariffs EIDOS PLC: French Counterpart Admits to Mulling Takeover Bid ENERGIS PLC: Ex-Asda Chief Leading CSFB-Permira Bid, Says Report INVENSYS PLC: Sells Compressed Air Business to Alchemy for GBP1 MARCONI PLC: Appointment of David James Divide Creditors, Mgmt. MARCONI PLC: Rescue Plan Not Expected This Month NTL Incorporated Sign Agreement to Deliver Broadband ============= B E L G I U M ============= FLV FUND: Reporting and Trading Currency Switch to Euro -------------------------------------------------------- FLV Management, the statutory manager of FLV Fund -- http://www.flvfund.com-- announces that the company's financial reporting and trading currency will change from USD to EUR. In accordance with the Nasdaq Europe Rule Book (Rule 47.5.0 and 101.5.2) FLV Fund has applied for changing its financial reporting and trading currency from USD to EUR since FLV Fund maintains its books and records in EUR. Nasdaq Europe has agreed with the proposed change in currency. This implies that quarterly and yearly results for the period starting as from January 1, 2002 will be reported in Euro instead of USD. In order to facilitate the transition FLV Fund will make historical financial information in Euro available on its website (http://www.flvfund.com)for the years 1999, 2000 and 2001. In future earning releases historical financial information in Euro will be provided for comparative purposes. Nasdaq Europe will change the trading currency of the financial instruments of FLV Fund from USD to EUR on May 20, 2002 the date following the announcement of the Q1 results in EUR. FLV Fund was incorporated on December 1995 as a global venture capital fund dedicated to companies developing applications on intelligent interfaces. FLV Fund was introduced on the Nasdaq Europe stock exchange in July 1998. FLV Fund's objective is the maximization of the shareholder Value and gradual refund of its shareholders through realization of its portfolio. The gradual and orderly realization of the portfolio will be organized through regular exits and/or, if estimated opportune, through a controlled auction of whole or a part of the portfolio. The target date for the winding-up of FLV Fund's activity is set at December 31, 2004. For more information on this press release, contact: FLV Fund: Cyriel Baeyens CFO + 32 57 22 94 30 +32 476 22 85 50 cyriel.baeyens@flvfund.com Below is a copy of the company's lastes balance sheet and statement of income. FLANDERS LANGUAGE VALLEY FUND C.V.A. BALANCE SHEETS (in thousands of EURO) December 31, 2001 2000 1999 ASSETS Investments in subsidiaries - 1,000 - Venture capital investments 67,457 88,770 79,067 Financial assets held for trading 482 - - Debt securities and loans 2,565 14,437 11,803 receivable Trade and other receivables 1,734 5,358 13,730 Cash and cash equivalents 45,515 48,939 27,952 Total assets 117,753 158,504 132,552 EQUITY AND LIABILITIES Capital and reserves Issued capital 44,282 135,56 93,140 Share premium 84,743 73,258 24,113 Accumulated profit/(deficit) -40,957 -51,772 14,278 Legal reserve 357 357 357 88,425 157,405 131,888 Labilities Trade and other payables 29,328 1,099 664 Total equity and liabilities 117,753 158,504 132,552 FLANDERS LANGUAGE VALLEY FUND C.V.A. STATEMENT OF INCOME (in thousands of EURO, except share data) Year ended Year ended Year ended December 31 December 31 December 31 2001 2000 1999 Management fee and other income - 59 55 Recurrent administrative expenses -5,371 -4,749 -2,559 Incurred restructuring costs -2,000 - - Other operating expenses -124 -248 -411 Total administrative expenses -7,495 -4,938 -2,915 Profit/(loss) on sale on non listed venture capital investments 1,285 - - Change in fair value on non listed venture capital investments-39,980 - - Profit/(loss) on sale on listed venture capital investments 586 - - Change in fair value on listed venture capital investments -25,181 - - Profit/(loss) on sale on financial assets held for trading 7 - - Change in fair value on financial assets held for trading 374 - - Change in fair value on equity conversion rights -2,032 - - Profit/(loss) on sale on other derivative rights 12 - - Change in fair value on other derivative rights -2,643 - - Net realized losses on debt securities and loans -1,156 - - Net unrealized losses on debt securities and loans -8,601 - - Net realized profits on investments, debt securities and loans - 147 10,937 Net realized losses on investments, debt securites and loans - -2,357 - 1,039 Net unrealized losses on investments, debt securities and loans - -60,639 -708 Net realized losses on trade and other receivables -25 - -71 Net unrealized losses on trade and other receivables -3,589 -9,172 -13 Operating profit/(loss) before other (expense)/income and taxation -88,438 -76,959 6,191 Other income and expense Interest income 2,240 3,541 2,059 Interest expense -4 -6 -19 Other expenses -17 -540 -5 Profit on sale of marketable securities - 1,573 1,833 Exchange gains/(losses), net -524 6,338 2,851 Other income/(expense), net 1,695 10,906 6,719 Total profit/(loss) before taxation -86,743 -66,053 12,910 Taxation - - - Total profit/(loss) after taxation -86,743 -66,053 12,910 Movement in reserves Total profit/(loss) for the year -86,743 -66,053 12,910 Transfer to legal reserve - - -301 Total movement in reserves for the year-86,743-66,053 12,609 Earnings/(loss) per share - basic -4.21 -3.73 0.92 Earnings/(loss) per share - diluted -4.21 -3.73 0.91 Weighted average number of existing shares outstanding - basic 20,604,495 17,698,358 14,074,720 Weighted average number of existing and potential shares - diluted 20,604,495 17,698,358 14,168,852 ============= F I N L A N D ============= SONERA CORPORATION: Subsidiary Secures Extension of Loan Maturity ----------------------------------------------------------------- Turkcell Iletisim Hizmetleri AS, an affiliate of Sonera Corporation, announced recently that it had successfully gained a one-year extension for the repayment of its loan from Akbank. The two tranches of loan were supposed to mature on May 9 and June 5. The credit lines are worth US$50 million and US$12.5 million, respectively. All other terms and conditions of the loan will remain the same, the company said. The subsidiary said it will meet the remaining US$150 million trade payables to Ericsson in two equal installments in May and June this year. The company had already paid US$75 million of this obligation in April. This trade obligation was supposed to mature last year but was extended for another year, says the company. ============= G E R M A N Y ============= DEUTSCHE TELEKOM: Reduces Earnings Forecast on Bond Auction ----------------------------------------------------------- Deutsche Telekom has revised its forecast on a planned bond auction due to the current less-than-ideal market conditions for the sale, says Bloomberg citing the Business. The German telecom giant had earlier hoped to raise EUR8 billion from the sale, but now thinks it can only manage less than EUR5 billion, says the report. The company's EUR3.5 billion of 6.625 percent bonds maturing in 2011 yield about 7.75 percent, or 2.56 percentage points more than the government's debt of equivalent maturity. That spread has risen from about 1.87 percentage points in the last month, according to Morgan Stanley prices, says Bloomberg. The gloomy conditions have caused the interest rates on phone- company bonds to jump as investors seek larger returns for risking money on said securities. The company only expects a modest response from the market when it auctions the bonds soon. The telecom giant plans to use the proceeds to refinance existing debts. ISION INTERNET: BT Group Interested in Troubled Energis Arm ----------------------------------------------------------- BT Group Plc, the incumbent British telecom operator, is reportedly eyeing Ision Internet AG, the German unit of troubled network operator Energis Plc, says Bloomberg. Citing The Observer, the news outfit says the British telecom giant will snatch Ision the moment it begins bankruptcy proceedings. Last week, Energis announced that it had cut financial support to the German subsidiary, necessitating the filing of a bankruptcy petition shortly. Energis, which is also teetering on the verge of bankruptcy, bought Ision for EUR1 billion (US$912 million) last year, says Bloomberg. ========= I T A L Y ========= BLU SPA: Mobile Operator Will Sell Assets to Competitor ------------------------------------------------------- Blu SpA, Italian mobile operator, announced Friday it has filed with the Communications Ministry to seek regulatory approval for a plan to sell Blu's separate assest to its primary cellphone rival. According to a Blu statement, the plan calls for the group to break up its assets to be sold to Telecom Italia Mobile, Omnitel, Wind, and third-generation cellphone entrant H3G, a report obtained from Reuters and Telecom Paper said. Blue has been up for sale for a year and half, since it failed to win an Italian UMTS licence at the auction in October 2000. The plan, which protects 1, 700 jobs at Blu, would become operational as soon as Italian and European regulators give their go signal. No financial figures were disclosed regarding the company's asset sale as well as plan, which has been implemented since the beginning of the year. BLU SPA: Expects No Hitches in Liquidation of Assets, Licenses -------------------------------------------------------------- Blu SpA, the Italian telecom operator providing voice and data services over mobile phone networks, is expecting the Italian government and the European Union to approve the sale of its radio frequencies, says Bloomberg. In Europe, mobile phone companies need regulatory authorization from both the EU and the home country when they sell their licenses, says the report. The company's assets and radio frequencies will be shared by Telecom Italia Mobile SpA, Wind SpA, Omnitel Pronto Italia SpA and H3G SpA. TIM, Omnitel and Wind, Italy's Big 3 cellular companies, will get the frequencies, while the transmission towers and Blu's retail stores will be sold to H3G. The Blu brand and its 2 million client contracts, on the other hand, will be purchased by Wind, the report says. BT Group Plc, the Benetton family, Banca Nazionale del Lavoro SpA and other Blu shareholders have been trying to unload the losing company since 2000, when Blu failed to buy a permit for high- speed phone access. The players are expected to complete the sale by summer. FIAT SPA: To Bare Huge Q1 Losses in Annual General Meeting Today ---------------------------------------------------------------- Fiat SpA, the leading industrial group in Italy, is expected today to reveal between EUR275 million and EUR350 million in operating losses for the first quarter, the Financial Times says. The group is scheduled to hold its annual shareholders meeting today, which honorary Chairman Giovanni Agnelli will skip for health reasons. The paper says the absence could not come at a more delicate time. The group's auto division, which includes the high-end Ferrari cars, is losing grip on key markets, including Italy. The paper says Fiat Auto will account for most of the losses, although a weak operating profit from the truck division will soften the impact of the drop. CNH, its US-based farm and construction equipment company, will account for the US$49 million net loss in the first-quarter, the paper says. The group has already announced a restructuring plan that calls for the full or partial closure of 18 assembly plants and 6,000 job cuts. This plan was first announced in December and has since then been revised twice, the paper says. The latest change came last month after Standard & Poor's said it might slash Fiat's debt ratings. The paper says the group is expected to give an update on the plan later this week. "The group could tell them that it is close to a sale of its Teksid foundries business for about EUR500 million, and that a partial flotation of Ferrari, the sports car group worth an estimated EUR2 billion, is in the pipeline," says the paper. This is not the first time that Fiat faced troubled times and many analysts believe it can weather the latest storm. However, it may come at a steep price. The paper says Fiat holds an option to sell 80% of Fiat Auto to General Motors, which already owns the other 20%. The option can be exercised in 2004 and a few have suggested this as a possible exit route. So far, however, Mr. Agnelli has ignored the suggestion. ===================== N E T H E R L A N D S ===================== LETSBUYIT.COM NV: Announces 30MM Authorized Capital Increase ------------------------------------------------------------ On May 9, LetsBuyIt.com N.V., the Amsterdam-based online service retail business, issued 30 million bearer ordinary shares using its authorized capital. The issue was subject to the condition precedent that such shares are admitted without prospectus to the Regulated Market for trading on the New Market of the Frankfurt Stock Exchange. The new shares are subscribed by a private investor at an issuance price of EUR 0.01 per share. This investor is now making his second investment in LetsBuylt.com N.V. stating his confidence in the management and his belief in the buying model as the key reasons behind his long-term relationship with the company. =========== N O R W A Y =========== KVAERNER ASA: Members of Committee of Inquiry Appointed ------------------------------------------------------- The Board of Kvaerner, the international oil services, engineering and construction, and shipbuilding Group, said in a statement released Friday that it has appointed the last two members of the Committee which will investigate the administration of the Company and compliance with the disclosure requirements to shareholders and the market. The Committee of Inquiry will begin work immediately and its final report is due by summer 2003. The final two members of the Committee are business economist - Tore J Fjell, and lawyer - Carl J Hambro. Fjell, who now works at Hartmark Consultants, was previously a director of the Oslo Stock Exchange responsible for listed companies. Hambro, a partner in the law firm Hambro og Garman, is an expert in securities. Professor Kare Lilleholt of the law faculty at the University of Bergen was previously appointed to head the Committee of Inquiry. In accordance with the agreement made with Invitt AS, the shareholder which originally required an official investigation, all the members of the Committee of Inquiry fulfill the competence requirements laid down in the Act on Public Limited Companies, paragraphs 5-26, no. 3, point 2. The reports from the Committee of Inquiry will be made public in an appropriate manner when they become available. The Committee of Inquiry will investigate the administration of the Company from 1 July 1998. To the extent that it considers it expedient, it may also take into account the period prior to this date. The Committee is to concentrate its inquiries on important questions and events that can explain developments and/or provide indications of possible breaches of the law or regulations. Kvaerner is a world-class international oil services, engineering and construction, and shipbuilding Group, with the capability and resources to undertake the world's most challenging projects. The Group's activities are organized in four core business areas: Oil & Gas, E&C (Engineering & Construction), Pulp & Paper, and Shipbuilding. Following the merger between Aker Maritime and Kvaerner's Oil & Gas business, the Kvaerner Group expects to have revenues in 2002 approaching US$6 billion, with some 42,000 permanent staff located in more than 30 countries throughout Europe, Africa, Asia and the Americas. For further information, contact: Paul Emberley, Vice President, Group Communications, Kvaerner ASA: +44 (0)20 7339 1035 or +44 (0)7768 813090 or paul.emberley@kvaerner.com or visit the website at www.kvaerner.com. =========== P O L A N D =========== ELEKTRIM SA: Announces Initial Agreement With Bondholders --------------------------------------------------------- The Management Board of telecom and power conglomerate Elektrim S.A. announces that on May 10 2002, Elektrim executed an initial agreement with bondholders of Euro 440 million Exchangeable Bonds due 2004 issued by Elektrim Finance B.V. The bondholders were represented by a committee appointed by the bondholders of Exchangeable Bonds who hold approximately 50% of the aggregate face principal value of bonds. Elektrim has been engaged in discussions with the bondholders for several months. The agreement, which is the result of those discussions, provides for the issue of new bonds ("Restructured Bonds") that will replace the existing 1999 bonds on the following terms and conditions: - The amount of Euro 200 million is to be redeemed by 15 June 2002. This amount will be used to redeem the current interest and part of the Restructured Bonds. It is anticipated that following this initial redemption approximately Euro 274.1 million face value of the Restructured Bonds will remain outstanding. - Further redemption schedule is subject to sourcing funding by Elektrim. It is assumed that the financing will be sourced from disposing of certain assets of Elektrim S.A. and credits. The agreement provides that a further payment of Euro 100 million will be made on 15 December 2002. It is anticipated that after this date, approximately ?189 million face value of the Restructured Bonds would remain outstanding. If Elektrim sources funding, it will have the right to redeem the bonds at any time, upon 30 days notice. - The cash coupon payable on 15 June 2002 will be at a rate of 7% p.a. The cash coupon for the remainder of the issue will be 3.75% payable semi-annually. - The redemption price of the bonds redeemed on 15 July 2002 will be 111.3% as provided for in the existing terms and conditions of Exchangeable Bonds for that date. Thereafter, the redemption price will accrete at 11.25% per annum, an increase over the 4% annual rate currently applicable. - The bonds will be secured with Elektrim's stake in Elektrim Telekomunikacja and certain other assets equally and ratably with the credits sourced by Elektrim for the redemption of Restructured Bonds, current operations and obligations, in particular, PAK investments. The pledge will be released on a pro rata basis upon redemptions of bonds and credits. - Final maturity of the bonds has been extended to July 2005. (Previous redemption date - June 2004). - The agreement does not provide for the possibility of converting Restructured Bonds into shares of Elektrim S.A. - The initial payment will be sourced from the Company's existing funds together with a Euro100 million loan to be syndicated by BRE Bank S.A. If sufficient dispositions are not completed this year, a Euro100 million mandatory redemption in December 2002 is proposed to be financed through an additional indebtedness. The agreement provides that Elektrim will obtain a Senior Facility from BRE Bank S.A. enabling the Company to meet the redemption schedule. The facility will be secured with Elektrim's assets equally and ratably with the Restructured Bonds. At signing of the agreement, Elektrim confirmed that the agreement becoming effective was subject to receiving a firm credit offer from BRE Bank S.A. In particular, it is necessary to satisfy the condition of maintaining an equal level of security on the BRE Bank Facility and the Restructured Bonds. In the opinion of Elektrim's Management Board the advance of funds would be subject to a final determination by the Vienna Arbitration Tribunal denying Deutsche Telekom's claims of Elektrim's economic impairment. The agreement is governed by English law and becomes effective upon final approval of the documentation by parties and subject to approval by the formal meeting of bondholders. The parties are working intensively to agree on the legal documentation, details and the schedule of further actions. For the company's latest key financial results, visit: http://bankrupt.com/misc/Q1_2002_bal_sheet_profit_loss_elektrim.p df and http://bankrupt.com/misc/30_key_financials_elektrim.pdf. ELEKTRIM SA: Discloses Shareholders With Over 5% Interests ---------------------------------------------------------- Merrill Lynch & Co. Inc. 20 Farrington Road P.O. Box 293 London EC1M 3NH United Kingdom Announcement on April 9, 1998 that it held 3,481,125 shares, i.e. 5.20% of share capital and voting rights. Owing to the fact that by April 23, 2002 total number of the Company's shares increased from 72,749,078 as at the end of 1998 to 83,770,297 as a result of the conversion of bonds into shares. Thus, Merrill Lynch's adjusted stake now represents 4.16% of share capital and voting rights. Schroder Investment Management Limited 31 Gresham Street London EC2V 7QA Announcement on August 11, 1999 that it held 3,709,496 shares, i.e. 5.05% of share capital and voting rights. After the above- described share capital increase, the stake has declined and currently represents 4.43% of share capital and voting rights. Vivendi Universal S.A. France Paris (75008) 42 avenue de Friedland Announcement on April 13, 2001 that it held, together with Societe Nouvelle D'Investissements et de Gestion and other subsidiaries listed below, 8,416,183 shares, i.e. 10.04% of share capital and voting rights, of which: - Vivendi Universal S.A. held 4,079,683 shares, i.e. 4.87% of share capital and voting rights; - Societe Nouvelle D'Investissements et de Gestion held 1,036,500 shares, i.e. 1.24% of share capital and voting rights; - Societe Nouvelle D'Etudes et de Gestion held 1,100,000 shares, i.e. 1.31% of share capital and voting rights; - Compagnie Nouvelle D'Etudes Industrielles et Commerciales held 1,100,000 shares, i.e. 1.31% of share capital and voting rights; - Societe Parisienne D'Investissements et de Gestion held 1,100,000 shares, i.e. 1.31% of share capital and voting rights. BRE Bank S.A. ul. Senatorska 18 00-950 Warsaw Poland On April 11, 2002, BRE Bank S.A. informed Elektrim that together with its subsidiary - Drugi Polski Fundusz Rozwoju - BRE Sp. z o.o. it held a total of 14,624,552 shares of Elektrim S.A. which represented 17.46% of the share capital and entitled to 14,624,552 votes at the general meeting (17.46%) of the total number of votes at the meeting of shareholders of Elektrim S.A. of which: - BRE Bank S.A. held 13,694,552 shares of Elektrim S.A. representing 16.35% of the company's share capital and the same number of votes at the meeting of shareholders of Elektrim S.A., - Drugi Polski Fundusz Rozwoju - BRE Sp. z o.o. held 930,000 shares of Elektrim S.A. representing 1.11% of share capital and the same number of votes at the meeting of shareholders of Elektrim S.A. Ryszard Opara Piaseczno, Poland On January 4, 2002, Mr. Ryszard Opara announced that he held 4,891,055 shares representing 5.84% of share capital and voting rights. Multico Sp. z o.o. ul. Ciasna 6 00-232 Warszawa, Poland On March 15, 2002 the company disclosed that it held 4,250,057 shares of Elektrim S.A. representing 5.07% of Elektrim's share capital and the same number votes at the shareholders' meeting of Elektrim S.A =========== S W E D E N =========== CELLPOINT INC.: To Seek Reversal of Bankruptcy Ruling on Unit ------------------------------------------------------------- CellPoint Inc. will appeal a decision by a Swedish lower court, which forced the company's subsidiary CellPoint Systems AB into bankruptcy, reports Dow Jones Newswires. The firm argues that it can reorganize business under the Swedish reconstruction act and that it qualifies for creditor protection afforded by said law. "The end result will be similar and we expect our subsidiary to emerge from reconstruction more quickly this way than under the formal composition since settlements had already been agreed to by the creditors," said Chairman Jan Rynning in a press release Friday. During the reconstruction, the unit will continue normal operations. The company hopes to reduce CellPoint's payables by more than US$2.5 million after it emerges from the process. In March, the provider of mobile location software technology eliminated all of its short-term debt by swapping half, or about US$5.5 million, to equity and the rest to long-term debt. The company's long-term financing is now under process through Cofima Finanz AG in Switzerland, the press statement said. The company got about US$1 million of bridging loan from customer payments, investors and a lawsuit settlement, the same statement added. Company shares closed Nasdaq trading Friday at 23 cents, down 4 cents, or 14.9%, on volume of 41,100 shares. Average daily volume is 41,350. The stock set a 52-week low of 20 cents Monday, and CellPoint is appealing the exchange's April delisting warning, says the newswire. As of December 31, the company's liabilities amounted US$14.6 million, the newswire said. =========================== U N I T E D K I N G D O M =========================== BRITISH AIRWAYS: New Pension Arrangements for New U.K. Staff ------------------------------------------------------------ British Airways is to change the pension provision it makes for future U.K. employees, moving from a defined benefit final salary basis to a defined contribution basis from autumn 2002. The decision will not affect the pension benefits of the 65,000 members of NAPS, the New Airways Pension Scheme, or the 36,000 members of APS, the original Airways Pension Scheme, which was available to employees who joined before 1984. The decision follows a thorough internal review of the company's U.K. pension arrangements taking into account the changing competitive environment, new accounting rules (FRS17), volatile markets and rising life expectancy. Under FRS17, APS/NAPS taken together generate a company accounting shortfall of GBP394 million as at March 31, 2002. APS/NAPS have investments together valued at nearly GBP10 billion. Both schemes meet the statutory Minimum Funding Requirement (MFR). The FRS17 valuation does not have any impact on cash flow. John Rishton, British Airways' Chief Financial Officer, said: 'The change to a defined contribution pension arrangement for future U.K. staff is a measured and necessary response to the competitive environment in which British Airways operates. It does not affect the pensions of existing APS/NAPS members.' BA has two main U.K. pensions schemes. NAPS was set up in 1984. It has roughly 65,000 members of whom 40,000 are existing staff, fewer than10,000 are pensioners and about 15,000 deferred pensioners. APS has 36,000 members of whom 4,000 are serving staff, 26,000 pensioners in payment and 6,000 deferred pensioners. It was set up in 1948 when the airline was state owned and was open to new members until 1984. In a final salary defined benefit pension scheme, the scheme provides members with a pension in retirement calculated as a proportion of their final salary. In a defined contribution pension scheme, employees have an individual account to which they and the employer contribute. The level of pension paid on retirement depends on the value of contributions made, the investment returns achieved, and the value of the individual's account at retirement. The Minimum Funding Requirement (MFR) is a Government measure that determines the minimum level of contributions that must be made into a pension scheme. BRITISH TELECOM: Ignite to Shed 2,200 as Part of New Chief's Plan ----------------------------------------------------------------- The business shakeup pledged by newly appointed CEO Ben Verwaayen recently will claim 2,200 jobs at the Ignite unit, says Bloomberg citing the Independent. According to the report, the voluntary redundancy will hit most of Ignite's administrative staff, who will be replaced by 1,200 individuals to beef-up the sales and marketing unit of the business. Consultancy firm Reach has been commissioned to help make the cuts, the report says. The IT unit used to be the group's precious jewel and was even hinted as a spin-off candidate with up to GBP15 billion market capitalization during the Internet boom. But last year the business lost GBP380 million as demand for many of its e-commerce and Internet services declined, the report says. Mr. Verwaayen singled out the unit last month as among those subsidiaries that need to shape up or ship out. The new chief said that if any of Ignite's businesses were losing money by March 31, 2003, they would be closed down. Ignite employs 17,000 people and has offices in the U.K., continental Europe and the U.S. CONSIGNIA: To Negotiate Return of GBP1.8 BB Extra Remittances ------------------------------------------------------------- Hemorrhaging British postal operator Consignia will reportedly negotiate with the government for the return of some GBP1.8 billion it has pitched into the treasury the past 20 years. Citing the Sunday Telegraph, Bloomberg says the money will be used by the company to cover losses and restructuring costs. Chairman Allan Leighton is expected to transmit the request this month. The report says the amount represents the money paid by Consignia over the years beyond taxes. The appeal for the refund will come as the company report losses of GBP1.2 billion last year and announce the closure of at least 3,000 of 17,500 post offices. Consignia spokesman Patrick O'Neill wouldn't confirm the report, but told Bloomberg that the company is in talks with the government on a three-year "renewal" program. He did not give further details. The state-owned postal service is currently struggling to stem its financial hemorrhage, which is believed to be at a rate of GBP1.5 million a day. It is currently restructuring Parcelforce, its unprofitable package-delivery business, which is expected to shed almost 7,000 jobs. In September, the company admitted GBP281 million losses for the first half due to a substantial write-down related to Parcelforce. CONSIGNIA: Harassment Costs GBP 15MM a Year, Says Amicus -------------------------------------------------------- Amicus, the union for 15,000 managers and professionals in Consignia, published Monday a survey, which reveals an institutional culture of bullying and harassment within the post office. Addressed industrial and political editors, The survey said 80% of staff say they had experienced bullying in the past year, 33% had experienced uninvited sexual teasing, and verbal abuse and 60% had witnessed another colleague being bullied within the past year. Respondents reported an average 51 days sick leave taken by those suffering bullying and harassment, the union calculates that the full cost to Consignia could be as high as GBP15 million per year. This does not include compensation payments to victims. Speaking at the CMA section conference in Southport today, Amicus National Secretary Peter Skyte said: "Amicus is calling for a zero tolerance crackdown by Consignia management to eliminate bullying and sexual harassment from the postal service. "We demand a public commitment at the most senior levels of Consignia to work with us to stamp out bullying and harassment. "The time for further navel gazing internal reviews on these issues is over. Consignia has policies but these are clearly ineffective. Consignia must act now and act fast to change the bullying culture in the post office." Over 16,000 employees have told Consignia they have suffered harassment and bullying in the last 12 months according to the organization's Employee Opinion Survey. As a result of the survey, Amicus will seek agreement from Consignia management for: - a zero-tolerance crackdown on bullying and harassment in Consignia workplaces - a complete overhaul of the existing Consignia policies and practices and the creation of a a more effective Consignia-wide Dignity at Work policy and training programme in partnership with its unions - a review of workloads of managers and an end to unachievable and unrealistic targets which sustain an environment where bullying and harassment Is tolerated Amicus General Secretary Roger Lyons said: "All working people deserve dignity at work, human rights do not stop at the office door. "That's why Amicus is sponsoring the Dignity at Work Bill which is going through parliament right now, it will give all workers legal protection against the evil of bullying and harassment in their workplace and force Consignia to confront the problem head on." The Amicus CMA section represents 15,000 managers and senior managers working for Consignia, formerly the Post Office. The survey was carried out through a representative sample of 265 members across Consignia business units and locations Personal Profile Gender/Ethnic Origin: 80% of respondents were men. Of these, 92% were of white ethnic origin and 7% were of Asian ethnic origin and 1% 'Other' ethnic origin. 18% were women and of these, 96% were of white ethnic origin and 2% in each Asian and 'Other' ethnic origin. Location: London was the most frequent location mentioned (12%). Other locations mentioned more than once included: Anglia; Birmingham; Bristol; Carlisle; Chesterfield; Cornwall; Croydon; Dartford; East; Edinburgh; Exeter; Glasgow; Leeds; Liverpool; Manchester; Midlands; Milton Keynes; North; North East; North West; Nottingham; Peterborough; Reading; Scotland; Sheffield; South; South East; South West; Southern; Stockport; Swindon; Watford; West. Business: The majority (nearly two-thirds) work for Consignia/Royal Mail. The rest were spread fairly consistently over: Business Systems; Cash Handling & Distribution; Corporate Clients; Counters; Customer Management; E-Enterprise; Group Centre; International Services; Letters; Logistics Solutions; Packages & Express; ParcelForce; POSG; Post Office; Processing; Property Holdings; Research & Consultancy; Sales & Customer Support; Transaction Services; TVL. In summary, the CMA Bullying and Harassment Survey 2002 reveals the following: BULLYING A representative sample of 265 members was covered by the questionnaire. - The majority (nearly two-thirds) work for Consignia/Royal Mail. - Nearly two-thirds of respondents covered ML grades. - 80% of respondents were men and 20% were women. - 58% found immediate colleagues supportive. - 36% said they found their line manager supportive, 33% said no and 31% sometimes. - 80% (4 in 5 people) said they had experienced what they perceived as bullying in the past year - 65% experienced bullying in the form of undue pressure of work and 65% (72% of ethnic minority respondents) as undervaluing their efforts - 64% did not report the bullying. - 87% said that lack of motivation and 81%, loss of confidence were primary emotional problems - 85%, said the overall health problem was sleeplessness - 79% of respondents said that the bullying had affected the way they performed their duties - 38% took sick leave due to the problems they encountered, with an average of 51 days lost - 80% of respondents stated that their personal life/relationship had been badly affected. - 60% of respondents had witnessed a colleague being bullied within the past year. - 82% know what Consignia's policy on bullying is. HARASSMENT - 45% of total sample respondents had experienced harassment in some form The following figures are based on the whole sample: - 33% had experienced uninvited sexual teasing, jokes, remarks or questions - 18% uninvited sexually suggestive looks or gestures - 16% uninvited pressure for dates - 15% uninvited and deliberate touching, leaning over, cornering or pinching - 12% uninvited letters, telephone calls or materials of sexual nature - 5% uninvited pressure for sexual favours - 52% said this had occurred either once, once a week, once a month, 2-4 times a month. - 83% said their immediate supervisor was male and 17% female - 64% work with more men than women - 85% are aware of Consignia's policy on sexual harassment The following figures are based on the respondents answering this part of the survey: - 66% had experienced uninvited sexual teasing, jokes, remarks or questions, rising to 78% amongst ethnic minority respondents - 35% uninvited sexually suggestive looks or gestures - 32% uninvited pressure for dates - 30% uninvited and deliberate touching, leaning over, cornering or pinching - 24% uninvited letters, telephone calls or materials of sexual nature - 9% uninvited pressure for sexual favours - 90% said this had occurred either once, once a week, once a month, 2-4 times a month. - 82% said their immediate supervisor was male and 18% female - 63% work with more men than women - 78% are aware of Consignia's policy on sexual harassment While Consignia has well established policies on bullying and sexual harassment, and members responding to the survey appeared to be aware of these, there is as yet little evidence that such policies are having much effect on day-to-day practices and culture within the organization. CORUS GROUP: To Buy Brazilian Rival to Sidestep U.S. Tariffs ------------------------------------------------------------ British steel-maker Corus Group Plc is allegedly planning to annex a Brazilian rival to avoid the tariff currently imposed by the U.S. government on steel imports, says Bloomberg. Citing The Observer, Bloomberg says CEO Tony Pedder was recently in Brazil to hold talks with steel producers CSN, Cia. Siderurgica de Tubarao and Usinas Siderurgicas de Minas Gerais SA. CSN, Latin America's second-largest steel-maker, is the most likely target, the British paper said. This firm has a market value of BRL3.08 billion (US$1.24 billion). Brazil is allowed to export 2.5 million tonnes into the U.S. without paying tariffs, says Bloomberg. The expansion to this country is likely fueled by this tariff exemption. But Corus spokesman Mike Hitchcock refuses to confirm Mr. Pedder's reason for the trip. He only said that the company is currently approaching other suppliers for steel slab. He says this has been going on since the fire at its Port Talbot plant last year gutted its furnace. The plant will not be functional until January next year. EIDOS PLC: French Counterpart Admits to Mulling Takeover Bid ------------------------------------------------------------ Ubi Soft Executive Chairman Yves Guillemot admitted over the weekend that his company is looking to take over British computer game rival Eidos Plc this year, says the Financial Times. "We are certainly going to grow by acquisitions this year. Within that framework, Eidos could be a target for us. Whatever happens, I think that company will be bought in the course of the year," Mr. Guillemot told the paper. The struggling British computer game-maker has seen its stocks shed 54% this year after a series of forecast revisions and profit warnings. Its market capitalization now stands at GBP195 million. The company is not expecting sales to reach GBP120 million this year and in March it also admitted that operating loss will tally GBP9 million by year's end. But analysts say Ubi Soft should move quickly if it hopes to annex the company. ING Barings analyst Bruno Hareng says Ubi Soft should seal a deal before November 15, the target launch of the next Lara Croft game developed by Eidos for PlayStation 2. After this date, the price of Eidos shares is likely to go back up, he says. Mr. Hareng believes Eidos is too big a target for Ubi Soft, with EUR77.2 million cash on hand and an expected savings later this year from cost-cutting measures currently implemented. But if a takeover deal is sealed swiftly and decisively, Ubi Soft might just be successful, says the analyst. The French game developer is not the first company to have launched a bid for Eidos. Two years ago Infogrames, the independent games company headed by Bruno Bonnell, also offered but failed to takeover the British counterpart. Ubi Soft has a EUR522 million market capitalization. Fourth quarter sales published recently showed a 14% improvement in revenues to EUR90.5 million, lifting the full year total by 42% to EUR369 million, the paper says. ENERGIS PLC: Ex-Asda Chief Leading CSFB-Permira Bid, Says Report ---------------------------------------------------------------- Former Asda chief Archie Norman is reportedly leading the charge of Credit Suisse First Boston and venture capitalist Permira for Energis Plc, the troubled network operator, says The Times. Mr. Norman is believed to have visited several of the group's offices lately to consult with senior management and get a feel for the business, the report says. Neither the bank nor Permira is willing to confirm the report. The pair is expected to face tough competition from Apax Partners and Carlyle Group, which recently pooled resources to secure the race for Energis. The near-bankrupt network operator is in desperate need of investors or buyers to revive its sagging finances. It is currently buried under a GBP1.2 billion debt- pile and currently capitalized at just GBP38 million. INVENSYS PLC: Sells Compressed Air Business to Alchemy for GBP1 --------------------------------------------------------------- Loss-making engineering group Invensys Plc has shipped its CompAir subsidiary to Alchemy Partners for a token price of GBP1 only, says the Telegraph. Shareholders, however, are expected to welcome the sale on May 30, when the company holds its annual general meeting, the report says. CompAir, the third-largest compressed air specialist, has been up for sale for over a year now without takers. The unit generates sales of around GBP300 million, but is believed to have booked losses close to GBP20 million last year. "They are selling it because it is no longer part of the core business going forward. Invensys is now very tightly focused on manufacturing technology and energy management. To fix CompAir would have required large-scale restructuring and that is not something Invensys wanted to do," one person close to Invensys told the Telegraph. The subsidiary employs 3,000 worldwide, but redundancies will trim this as Alchemy, run by Jon Moulton, is likely to radically shake up the business in an attempt to slash costs and return it to profitability as quickly as possible, the paper says. CompAir is the third business to be sold off by Rick Haythornthwaite, who took over the reins at Invensys after a string of profit warnings triggered a loss of investor confidence and forced the exit of Allen Yurko as chief executive last summer. In March, the group's battery arm went to Enersys of the U.S. for US$425 million. The non-core flow control business followed next for US$535 million, the paper says. MARCONI PLC: Appointment of David James Divide Creditors, Mgmt. --------------------------------------------------------------- Creditors and the management led by Chairman Derek Bonham and CEO Michael Parton are allegedly divided over the appointment of David James to Marconi's board, says Bloomberg citing the Independent. Creditors are reportedly keen on pushing for Mr. James, who gained prominence for his leading role in saving the Millennium Dome from financial ruin. The chairman and CEO, on the other hand, are allegedly looking for a new director that has more exposure in the telecoms industry. Among those backing Mr. James' appointment are creditor banks Barclays Plc and HSBC Holdings Plc, says the report. Aside from the Millennium Dome, Mr. James also helped resurrect Dan Air, a chartered airline that was patched up and sold to British Airways Plc, the report says. MARCONI PLC: Rescue Plan Not Expected This Month ------------------------------------------------ A debt-restructuring plan for the ailing telecom equipment maker Marconi Plc is not expected this month, even if substantial discussions with creditors begin this week, says the Financial Times. People privy to the situation say the most that can be had by month's end is an agreement in principle with bondholders or banks. The company could also be put in administration, but few believe this is likely. "Administration is still a possibility, it always is in cases like this, but it does not seem to be in anybody's interests to put this company into administration," a person close to the talks told the Financial Times. The company will release full-year results this Thursday. Many believe the highlight of the report will be the details of the revised business plan, which creditors had already seen weeks ago. The two sets of creditors currently in talks with management are being asked to concur or reject the firm's revised operational strategy, which will become the basis for deciding whether to keep the company as a going concern or not. Marconi owes banks and bondholders GBP4 billion. NTL Incorporated Sign Agreement to Deliver Broadband ---------------------------------------------------- NTL Incorporated, the U.K.'s leading broadband communications company, today announced that NTL Business and Freeserve have signed a non-binding Memorandum of Understanding to deliver Freeserve Broadband via NTL's cable network. This is the first time a U.K. ISP and broadband cable network operator have worked together to develop a wholesale broadband cable proposition. The agreement will enable Freeserve to offer a 512kbps broadband cable modem service. Customers will take NTL Home's telephony service and will also have the opportunity to subscribe to its digital cable TV product. Today NTL also announced that it had exceeded its 200,000th broadband customer milestone and is selling on average over 7,000 connections a week. Its broadband penetration rate in NTL homes with Internet access is 20% - well ahead of national averages. As OFTEL recently reported, the UK now has over half a million high-speed broadband connections. NTL estimates that over 70% of broadband homes use a cable modem - a clear indication that cable modem is the broadband connection of choice. Stephen Carter, Managing Director of NTL said: `The quality of our service has clearly caught the attention of Freeserve, who we welcome on board. The building of Broadband Britain is well under way and we are leading from the front.' Six million homes can access NTL's broadband services today. Existing customers wishing to register in advance should call 0800 052 2000. Further information is also available on www.ntl.com. NTL has the largest residential broadband user base in the U.K. NTL is unique in having an entry broadband product - a 128kbps service priced at pound sterling14.99 a month, and in having the fastest residential internet service available - a 1 Megabit (1Mb) service priced at pound sterling 49.99 a month. NTL's 512kbps broadband service is priced at GBP24.99 a month. NTL offers a wide range of communications services to homes and business customers throughout the U.K., Ireland, Switzerland, France, Germany and Sweden. Over 20 million homes are located within the NTL's group franchise areas, covering major European cities including London, Paris, Frankfurt, Zurich, Stockholm, Geneva, Dublin, Manchester and Glasgow. NTL and its affiliates collectively serve over 8.5 million residential cable telephony and Internet customers. In the U.K. over 11 million homes are located within NTL's fibre- optic broadband network, which covers nearly 50% of the U.K. including, London, Manchester, Nottingham, Oxford, Cambridge, Cardiff, Glasgow and Belfast. NTL Home now serves around 3 million residential customers. NTL Broadcast has a 47-year history in broadcast TV and radio transmission and helped pioneer the technologies of the digital age. 22 million homes watch ITV, C4 and C5 thanks to NTL's broadcast transmitters. With over 2300 towers and other radio sites across the U.K., NTL also provides a full range of wireless solutions for the mobile communications industry. For further information: In the US: Investor Relations: John F. Gregg, Senior Vice President - Chief Financial Officer Bret Richter, Vice President - Corporate Finance and Development Tamar Gerber, Investor Relations Tel: (001) 212 906 8440, or via e-mail at investor_relations@ntli.com In the UK: Media: Justine Parrish, Media Relations, +44 (0) 207 746 4096 / 07979 601 993 Buchanan Communications - Richard Oldworth, Mark Edwards or Bobbie Swanson Tel: +44 (0) 20 7466 5000 Investor Relations: Virginia McMullan, +44 (0) 207 909 2144, or via e-mail at investorrelations@ntl.com *********** 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. The TCR Europe subscription rate is US$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 US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *