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/raid1/www/Hosts/bankrupt/TCREUR_Public/021001.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, October 1, 2002, Vol. 3, No. 194 Headlines * B E L G I U M * GIB SA: Belgian Bidders Finally Agree to Joint Takeover * F R A N C E * ALCATEL: Wins 5th GSM Expansion Contracts With Guangxi Unicom ALCATEL: Signs Contract With China Academy of Space Technology ALCATEL: Alcatel Bell Plans New Restructuring Measures FRANCE TELECOM: Thomson's Breton Likely Candidate to Replace Bon VIVENDI UNIVERSAL: Telepiu Deal May Need EU Notification VIVENDI UNIVERSAL: Set to Control Majority of UGC Capital * G E R M A N Y * MOBILCOM AG: Creditors Extend Repayment Deadline for a Month * I R E L A N D * JEFFERSON SMURFIT: Notification of Major Interests in Shares * N E T H E R L A N D S * VERSATEL TELECOM: Comes Out of Suspension of Payments Procedure * P O L A N D * ELEKTRIM SA: Chief Executive Plans to Renegotiate With Creditors POLISH STEEL: Privatization Plan Encounters Glitches * S W E D E N * LM ERICSSON: Loses Bid to Supply Equipment to Vodafone Ireland * U N I T E D K I N G D O M * ABERDEEN ASSET: Cuts Executive Pay and Freezes Boardroom Bonuses BEDE: Notice of Notifiable Interest in Ordinary Shares BIOCOMPATIBLES INTERNATIONAL: Declares Directors Interest BRAINSPARK: Interim Results for the Six-Month Period BRITISH ENERGY: S&P Comments on Recovery Prospect of Bondholders BRITISH ENERGY: Fitch Downgrades Ratings to 'B-' From 'B+' BRITISH ENERGY: S&P Lowers Senior Unsecured Debt Rating to 'CCC+' BRITISH ENERGY: Notification of Interests of Director BRITISH ENERGY: US Rival Complains of Favoritism Over Bailout COLT TELECOM: Moves Into New Pan-European Structure CORDIANT COMMUNICATIONS: Notification of Interests of Directors CORDIANT COMMUNICATIONS: Notification of Interests CORUS GROUP: Announces Director Shareholding EQUITABLE LIFE: Quells Rumors of Possible Insolvency FILTRONIC PLC: Releases Annual General Meeting Statement GALLERY HOMES & COUNTRY DECOR: Goes Into Receivership GLOSSOP THERMOPLASTICS LTD: Notice of Sale of Business and Assets INVENSYS PLC: Notifies Interests of Director Sir Philip Beck INVENSYS PLC: Sells Rexnord Business for US$880 Million INVENSYS PLC: Notifies Interests of Director Rolf Borjesson LANCASHIRE DAIRIES: Notice of Sale of Business and Assets MARCONI PLC: Plans Early Payment of Interest on Bonds MARCONI PLC: May Sell Founder's Records Amidst Financial Woes MOTHERCARE PLC: Extends Contract to Operate Safety-Net Warehouse NICHOLSON INTERIORS: Administrators Offer Business For Sale OTIS VEHICLE: Administrators Offer Assets for Sale RAILTRACK: State Secretary Seeks Discharge Administration Order TELEWEST COMMUNICATIONS: Announces Change in ADS Ratio ============= B E L G I U M ============= GIB SA: Belgian Bidders Finally Agree to Joint Takeover ------------------------------------------------------- Two Belgian bidders for GIB Group SA have agreed to a joint takeover of the retail giant, ending the battle over GIB. Holding company Ackermans & Van Haaren NV and Compagnie Nationale a Portefeuille SA said they are willing to pay EUR43 per share for GIB and split control, a report from Wall Street Journal Europe says. Last April, GIB's management announced its plans to liquidate. The company's assets had been sold off for the past few years, leaving a holding company flush with cash and some EUR1.3 billion that interested the owners of the two Beligian bidders. It was Ackermans that first made a bid for GIB with the support of Fortis NV. The offer was 41 euros a share for the retail giant's outstanding shares. The said offer valued GIB at EUR1.3 billion. Compagnie Nationale's Mr. Frere followed suit. He is backed of Franco-Belgian bank Dexia Securities and French bank BNP Paribas SA. CONTACT: GIB SA Avenue des Olympiades 20 B-1140 Brussels, Belgium Phone: +32-2-729-21-11 Fax: +32-2-729-18-18 Home Page: http://www.gib.be Compagnie Nationale a Portefeuille 12 rue de la Blanche Borne 6280 Loverval BELGIUM Phone: +32 71 60 60 60 +32 71 60 60 70 ACKERMANS & VAN HAAREN NV Begijnenvest 113 2000 Anvers BELGIUM Phone: +32 3 231 87 70 +32 3 225 25 33 Home Page: http://www.avh.be =========== F R A N C E =========== ALCATEL: Wins 5th GSM Expansion Contracts With Guangxi Unicom ------------------------------------------------------------- Alcatel, a leading telecom infrastructure vendor, announced that it has signed two separate contracts with Guangxi Unicom, for its 5th GSM network expansion contract and marginal network contract worth over US$10 million. Under the terms of these two contracts, Alcatel will supply, install and commission the industry-leading EvoliumT GSM/GPRS solutions, including base stations (BTS) and mobile switching equipment around Guangxi Nannin, Fuyang, Guilin, Liuzhou, Hechi, Yulin and the Guigang region. It will also provide MBO (Mutli- standard Outdoor Base station) to cover marginal areas of Guangxi Unicom's GSM network improving the entire Guangxi Unicom's GSM network's capability and quality. As one of China's five autonomous regions, Guangxi is located in the southern part of the country with 92,700 square miles and a population of about 43 million people. Both projects are expected to be completed by November of this year. By that time, Alcatel's system in Guangxi Unicom will then reach 280,000 subscribers. In Guangxi Unicom's GSM marginal network market, Alcatel becomes the largest supplier in China with a 60% market share. Liu Weisheng, general manager of Guangxi Unicom, declared, "We have established stable and strong co-operative relations with Alcatel. What we look for in Alcatel is not just the brand name, but most importantly, its ready "at all time" services. These two projects will allow us to continue our leadership position bringing true benefits to our customers." Marc Rouanne, President of Alcatel's Mobile Networks activities, added, "These two contracts reinforce our long-term partnership with Guangxi Unicom and prove we have the advanced technology that our customers need, offering our services and experience to help them succeed". Recent news on Alcatel: The Troubled Company Reporter in its September 24, 2002 issue reported that Alcatel had recently planned to cut its workforce by 10,000 as its target return to profitability by 2003 is clouded by a steep fall in second-half sales. The move follows the 10,000 job cuts announced in June. The redundancies will reduce the company's headcount to around 60,000 employees at the end of next year, Telegraph says. Around EUR500 million (GBP315 million) was provisioned for the slash. In July, S&P cut Alcatel's long-term corporate credit and senior unsecured debt ratings to 'BB+/B', after the company released its profit warning. S&P said the rating shows the worsening market conditions of the telecom equipment industry and the continuing lack of trading visibility. One of France's largest industrial companies, Alcatel is a leading global supplier of high-tech equipment for telecommunications. Core network switching and transmission systems for wireline and wireless networks for carriers and enterprises account for most of its sales. The company also manufactures cell phones, communications cable, and satellite equipment and provides network services including consulting, integration, design, planning, operation, and maintenance. Clients include Orange and Deutsche Telekom. Half of Alcatel's sales are made in Europe; the company continues to seek a larger share of the equipment markets in North America and China. CONTACT: Alcatel 54, rue La Bo,tie 75008 Paris, France Phone: +33-1-40-76-10-10 Fax: +33-1-40-76-14-00 Toll Free: 800-777-6804 Home Page: http://www.alcatel.com ALCATEL: Signs Contract With China Academy of Space Technology -------------------------------------------------------------- Alcatel announces the signature of a contract with the China Academy of Space Technology (CAST) for the development and construction of a new telecommunications satellite. This partnership will allow both contractors to develop the first high capacity Chinese telecommunications satellite. The contract will be signed in the presence of China's Premier Zhu Rongji, the French Prime Minister Jean-Pierre Raffarin, Alcatel's President and Chief Executive Officer Serge Tchuruk, the President of China Aerospace Corporation (CASC, parent company of CAST) Zhang Qingwei and the President of Asia Pacific Telecom (APT), Chen Zao Bing. Alcatel will provide the payload module - meaning the electronic equipment which specifies the satellite mission - to CAST for the integration of the first China made high capacity communication platform DFH4 into a complete satellite. The new satellite that will be delivered to APT (Hongkong), is tailored to provide communication, radio and TV broadcasting services to telecom operators and to radio and TV stations. "For Alcatel Space, this new contract, after the deal signed in December 2001, is a great success in the growing market of the Asia Pacific region" said Pascale Sourisse, CEO of Alcatel Space. "CASC trusts Alcatel's satellite technology and products, because China has been working with Alcatel for a long time in this field. China's Sinosat1, which has been operating well for many years, was provided by Alcatel. Last year, APT also purchased a whole satellite AP Star VB from Alcatel Space" said a Senior executive from CASC. The satellite is to be launched by China Long March launcher in 2005. China Premier Zhu Rongji will go to Toulouse to visit Alcatel Space on Saturday September 28. Alcatel Space ranks among the world's leading space systems prime contractors. Leveraging its dual expertise in civil and military applications, Alcatel Space develops satellite technology solutions for telecommunications, navigation, optical and radar observation, meteorology, and scientific applications. The company is also Europe's number one prime contractor for Earth observation, meteorology and navigation ground segments, as well as space systems operations. A fully-owned subsidiary of Alcatel (100%), Alcatel Space generated 2001 revenues of 1.4 billion Euros. Alcatel is established in China since the early 80s with a full portfolio of telecom equipment activities. In 2000, Alcatel made history as the first multinational to set up its Asia Pacific headquarters in Shanghai. Also in 2001 China's Ministry of Information Industry and Alcatel signed an agreement to create a Company Limited by Shares, Alcatel Shanghai Bell (ASB) integrating Alcatel's key operations in China with Shanghai Bell. Alcatel Shanghai Bell was officially launched at the end of May 2002 and is expected to be number two telecommunication players in China with revenues of around US $ 2 billion. Recent news on Alcatel: The Troubled Company Reporter in its September 24, 2002 issue reported that Alcatel had recently planned to cut its workforce by 10,000 as its target return to profitability by 2003 is clouded by a steep fall in second-half sales. The move follows the 10,000 job cuts announced in June. The redundancies will reduce the company's headcount to around 60,000 employees at the end of next year, Telegraph says. Around EUR500 million (GBP315 million) was provisioned for the slash. In July, S&P cut Alcatel's long-term corporate credit and senior unsecured debt ratings to 'BB+/B', after the company released its profit warning. S&P said the rating shows the worsening market conditions of the telecom equipment industry and the continuing lack of trading visibility. One of France's largest industrial companies, Alcatel is a leading global supplier of high-tech equipment for telecommunications. Core network switching and transmission systems for wireline and wireless networks for carriers and enterprises account for most of its sales. The company also manufactures cell phones, communications cable, and satellite equipment and provides network services including consulting, integration, design, planning, operation, and maintenance. Clients include Orange and Deutsche Telekom. Half of Alcatel's sales are made in Europe; the company continues to seek a larger share of the equipment markets in North America and China. CONTACT: Alcatel 54, rue La Bo,tie 75008 Paris, France Phone: +33-1-40-76-10-10 Fax: +33-1-40-76-14-00 Toll Free: 800-777-6804 Home Page: http://www.alcatel.com ALCATEL: Alcatel Bell Plans New Restructuring Measures ------------------------------------------------------ Alcatel Bell, Alcatel's Belgian telecom subsidiary, has notified the works council that it intends to restructure its activities, due to the continuing weakness of the telecom market. This announcement is part of the restructuring measures recently announced by the group. As part of this plan, Alcatel Bell estimates redundancies of 1073 employees of different levels in several branches and departments. As an element of this restructuring, the management has announced its intention to close its production plant in Ghent. The market for printed circuit boards, which Ghent manufactures, specifically suffers from the economic downturn and the competitive disadvantage against low cost countries. In parallel, Alcatel keeps looking for potential buyers. Today's announcement starts the procedure for collective layoff required by law. In keeping with its tradition of good labour relations, Alcatel Bell will make every effort to carry through this restructuring in the most socially responsible manner. Alcatel designs, develops and builds innovative and competitive communications networks, enabling carriers, service providers and enterprises to deliver any type of content, such as voice, data and multimedia, to any type of consumer, anywhere in the world. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimizing their service offerings and revenue streams. With sales of EURO 25 billion in 2001 and 99,000 employees, Alcatel operates in more than 130 countries. In Belgium, Alcatel employs 4500 people. FRANCE TELECOM: Thomson's Breton Likely Candidate to Replace Bon ---------------------------------------------------------------- The chairman of Thomson Multimedia, Thierry Breton, is likely the candidate to emerge as the new boss of France Telecom when the board announces the replacement for Michel Bon next Wednesday. According to a Financial Times report, the French prime minister, Jean-Pierre Raffarin, has asked the candidates for a turnaround business proposal for the state-controlled group mired in a EUR70 billion (US$68.4 billion) debt. Other candidates include Noel Forgeard, chief executive of Airbus, Louis Schweitzer, chairman of Renault, Michel de Rosen, head of US biotechnology group Viropharma, and Christian Blanc, former chairman of Air France. Mr. Breton's track record included turning back to health the business of computer group, Bull, and the operation of Thomson itself. The government, which owns 5.66% of France Telecom, had earlier denied the appointment of Mr. Breton following reports that Mr. Breton had agreed to replace Mr. Bon. According to sources, Mr. Breton declined the first proposal, as he wanted to first complete the job he started at Thomson. The company's shareholders funds are now negative after posting EUR12.2 billion first-half loss. France Telecom's near term obligations include a EUR15 billion debt payment next year. CONTACT: FRANCE TELECOM 6, Place d'Alleray 75505 Paris Cedex 15, France Phone: +33-1-44-44-22-22 Fax: +33-1-44-44-95-95 Home Page: http://www.francetelecom.fr VIVENDI UNIVERSAL: Telepiu Deal May Need EU Notification -------------------------------------------------------- European Competition Commissioner Mario Monti said that Rupert Murdoch's News Corp. might be asked to get European regulatory approval to buy the Italian television business, Telepiu, from Vivendi Universal. According to a Bloomberg report, Mr. Monti upholds that the European regulator must be notified, as the transaction "is likely to have a European dimension." The commission's consent is in addition to the Italian antitrust approval needed for the transaction. Merger involving companies with combined global sales of EUR5 billion and European sales of EUR250 million requires the commissioner's approval, even if the companies are based outside the 15-nation European Union. Vivendi and News Corp. are currently negotiating the terms of the EUR1-billion (US$980 million) sell-off, which is expected to lower Vivendi's debt by EUR920 million. Vivendi and News Corp had earlier agreed to a EUR1.5 billion price for the asset, but News Corp.'s Rupert Murdoch balked at the price. Murdoch plans to merge Stream SpA, an Italian pay-TV, with Telepiu, a money-losing business, which accounted for most of Europe's biggest pay-TV company, Canal Plus's EUR370 million loss last year. CONTACT: VIVENDI UNIVERSAL 42 avenue de Friedland 75380 Paris Cedex 08, France Phone: +33-1-71-71-10-00 Fax: +33-1-71-71-11-79 Home Page: http://www.vivendiuniversal.com VIVENDI UNIVERSAL: Set to Control Majority of UGC Capital --------------------------------------------------------- French media conglomerate, Vivendi Universal is gears up to takeover majority of French distributor UGC's capital, the Financial Times says. Earlier in July, Paribas Affaires Industrielles (PAI), the investment arm of BNP Paribas, exercised an option to sell its 16% stake in UGC to Vivendi Universal. This came two days after Vivendi's former CEO Jean-Marie Messier was ousted from his seat, as the company struggles to avoid bankruptcy. BNP Paribas is one of Vivendi's main creditors. The paper says the transaction is estimated at around EUR50 million, which values UGC at about EUR300 million. If the deal will be finalized, it will raise Vivendi's stake from 39.3% to 55.3%. UGC's family shareholders, who own the remaining shares still has control over the company despite of the activation of the option. The shareholders pact stipulates that the Verrechia family will keep the majority of the board, the chairmanship and the management of UGC as long as it keeps its shares. Guy Verrecchia is currently the chief executive of the group, the daily reports. Moreover, Vivendi Universal in fact, has a choice to buy 20% of UGC shares from the family shareholders. But UGC has been reported to be one of the assets set for disposal by Vivendi Universal as part of its efforts to reduce its debt pile. UGC considers itself as the leading distributor of cinema in Europe. It owns 92 cinema theaters in six countries and a web of 43 theater with 405 screens in the UK. Its turnover climbed 24% to EUR526 million in 2001. In 1999, it bought the 34 theatres Richard Branson's Virgin had acquired from MGM four years sooner. French media empire Vivendi Universal is currently looking to raise Eur12 billion through the sale of non-core assets, mostly outside France. Among the assets set for disposal is a minority stake in Vivendi Universal Games, the world's second-largest producer of PC games, and overseas telecommunications assets such as Maroc Telecom. Vivendi Universal also raised the prospect of a new partnership structure for Vivendi Universal Entertainment, the US studios, theme parks and cable TV division led by Barry Diller, the US media entrepreneur. CONTACT: VIVENDI UNIVERSAL 42 avenue de Friedland 75380 Paris Cedex 08, France Phone: +33-1-71-71-10-00 Fax: +33-1-71-71-11-79 Home Page: http://www.vivendiuniversal.com ============= G E R M A N Y ============= MOBILCOM AG: Creditors Extend Repayment Deadline for a Month ------------------------------------------------------------ Troubled German telecommunications company, MobilCom has been granted a one-month deadline extension for the repayment of loans worth EUR4.7 million by its creditors, reports say. According to the Telecom.paper, MobilCom's creditors will cease charging interest during the extended time, which is said to be until the end of October. MobilCom will be able to use the EUR50 million rescue facility given by the German government, in ensuring the continuation of the company's operations and in proceeding with its restructuring plan, which will be presented this week. The company's chief executive officer Thornsten Grenz plans to freeze its UMTS operations and cut 1,000 staff at the unit. He further hopes to keep the 3G license until a buyer for the company emerges, Telecom.paper reports. CONTACT: MOBILCOM AG Hollerstra�e 126 D-24782 B�delsdorf, Germany Phone: +49-43-31-69-11-73 Fax: +49-43-31-69-28-88 Home Page: http://www.mobilcom.de ============= I R E L A N D ============= JEFFERSON SMURFIT: Notification of Major Interests in Shares -------------------------------------------------------------- Name of company: Jefferson Smurfit Group plc Name of shareholder having a major interest: 1) MDCP Acquisitions I 2) MDCP Acquisitions plc 3) MDP Acquisitions plc (each with their registered offices at Earlsfort Centre Earlsfort Terrace Dublin 2) 4) MDCP IV Offshore Investments LP 5) MDP IV Offshore GP, LP 6) MDP Offshore Investors Limited (with their registered offices at M&C Corporate Services Limited PO Box 309GT Ugland House South Church Street George Town, Grand Cayman CAYMAN ISLANDS) Name of the registered holder(s) and, if more than one holder, the number of shares held by each of them: 6,379,026,073 (All shareholders in the company who had by 1.00 pm, Dublin time, on 3rd September 2002 accepted the offer dated 5 July 2002 by MDCP Acquisitions I to acquire the entire issued share capital of the Company.) Percentage of issued class: 96.37% Class of security: New Ordinary shares of EUR 0.03 each Date of transaction: September 20 2002 Date company informed: September 27 2002 Total holding following this notification: 6,379,026,073 Total percentage holding of issued class following this notification: 96.37% Name of contact and telephone number for queries: Cathy Smith Tel: +353-1-202 7162 Name and signature of authorised company official responsible for making this notification: Cathy Smith Date of notification: September 27 2002 ===================== N E T H E R L A N D S ===================== VERSATEL TELECOM: Comes Out of Suspension of Payments Procedure --------------------------------------------------------------- Versatel Telecom International N.V. announced that no appeals had been filed against the judgement of the Dutch court of 18 September 2002, approving Versatel's financial restructuring plan. Since the appeals period has lapsed, Versatel is officially out of the suspension of payments procedure and will execute its financial restructuring plan to convert all of its outstanding high yield and convertible bonds into a combination of equity and cash. As of today, Versatel's administrator, Mr. Deterink, has stepped down and Versatel's Executive Board is fully responsible for managing the company again. Under the plan, holders of approximately ? 1.7 billion of debt will receive approximately 365.4 million new ordinary shares and approximately ? 343 million in cash. It is anticipated that the distribution of cash and shares will be completed on or around 9 October 2002. On Monday, 30 September 2002, a prospectus with regard to the issuance of the new shares to the bondholders and distribution of warrants to the existing shareholders will be made available on the website of Euronext Amsterdam. Existing shareholders will retain a 20 percent interest in the company and receive warrants, at no cost, that are exercisable during a two year period following the restructuring, to purchase an additional 4 percent of the company's shares at a price of ? 1.50 per share. Versatel will return to a significant positive equity position of approximately ? 1 billion, and Versatel will therefore ask Euronext Amsterdam to be removed from the so-called "strafbankje," or penalty bench. Raj Raithata, Chief Executive Officer of Versatel, stated: "We are very pleased that we have successfully completed our financial restructuring. Versatel and the telecom industry have experienced a lot of turmoil over the past few years and we are now in a strong financial and operational position to capitalize on our commercial strengths. We are in a unique position being one of the few, if any, debt free carriers in our markets and we will fully leverage our dense broadband local access network by providing high-quality voice, data and Internet services for the business market." Versatel Telecom International N.V. based in Amsterdam, is a competitive communications network operator and a leading alternative to the former monopoly telecommunications carriers in its target market of the Benelux and northwest Germany. Founded in October 1995, the Company holds full telecommunications licenses in The Netherlands, Belgium and Germany and has over 81,000 business customers and 1,168 employees. Versatel operates a facilities-based local access broadband network that uses the latest network technologies to provide business customers with high bandwidth voice, data and Internet services. Versatel is a publicly traded company on Euronext Amsterdam under the symbol "VRSA". CONTACT: AJ Sauer Manager Investor Relations and Corporate Development Versatel Telecom International N.V. Tel: +31-20-750-1231 E-mail: aj.sauer@versatel.nl =========== P O L A N D =========== ELEKTRIM SA: Chief Executive Plans to Renegotiate With Creditors ---------------------------------------------------------------- Elektrim Chief Executive Officer Wojciech Janczyk plans to reopen negotiations with creditors after the former CEO, Maciej Radziwill, cut the company's previous debt repayment agreement with creditors. According to The Warsaw Voice, the company's fourth CEO this year thinks that a transaction to save the business is possible with the belief that "the market value of the company's assets is higher than its debt." A new agreement with creditors will enable Mr. Janczyk to withdraw a bankruptcy motion filed by Mr. Radziwill in a Warsaw court on September 13. A bankruptcy hearing is set for October 7. Earlier, Mr. Radziwill, being unable to sell the company's telecommunications assets, believed Elektrim could not afford to pay back 200 million euro by the end of the year and issue high- coupon bonds for the rest of the debt. Meanwhile, creditors proposed to the new management to sell the assets for EUR1.3 billion. According to The Warsaw Voice report, after subtracting the company's more than EUR500-million-debt, the sale would mean EUR700 million for a 100% stake. Elektrim and Vivendi, the shareholder of ET, to which the telecommunications assets belong, will share equally in the net proceeds. The creditors' offer, however, is conditional on the withdrawal of the bankruptcy filing and carrying a "due diligence" financial audit for ET. Mr. Jancyzk is also foreseen to divest its 38% stake in the PAK power plant group. Without giving further details, the CEO said the proposals could involve a modification of the privatization agreement. POLISH STEEL: Privatization Plan Encounters Glitches ---------------------------------------------------- The Economy Ministry's plan to convert Polish Steel Mills' (PHS') liabilities into shares met oppositions from both creditors and the Treasury Ministry, according to The Warsaw Business Journal. Under the privatization plan, the group's liabilities would be sold to an investor from the steel sector, which would then convert the debts into shares. PHS representatives claim the scheme could raise more money than a bankruptcy would. Meanwhile, TCR-Europe earlier reported that steel maker LNM Group has expressed interest in buying shares of the troubled business. Representatives are reportedly in negotiations about a possible deal with the government in Warsaw. The Polish company is currently undertaking extensive restructuring that is expected to close the company's three sections at the Sendzimira Steel Mill. =========== S W E D E N =========== LM ERICSSON: Loses Bid to Supply Equipment to Vodafone Ireland -------------------------------------------------------------- Telecom equipment maker Ericsson loses the bid to supply Vodafone with equipment for its 3G services in Ireland. Rival Nokia Corp. won the WCDMA 3G network order. According to the Irish Examiner, Vodafone signed a letter of intent for the contract, which is reportedly worth around EUR100 million. The contract also includes installation, commissioning, integration and project management services for network ramp-up, and a wide range of care services. LM Ericsson is the world's leading maker of wireless telecom infrastructure equipment. Network operators and service providers use Ericsson's antennas, transmitters, and other wireless and optical infrastructure gear to build and expand networks. The company has teamed up with Sony in a cell phone joint venture. Ericsson's other products include corporate networking gear, cable, defense electronics, and software for mobile messaging and commerce. The Wallenberg family and holding company Industrivarden, each owns about 42% in the telecom equipment provider. CONTACT: TELEFONAKTIEBOLAGET LM ERICSSON Telefon AB LM Ericsson, Telefonv"gen 30 SE-126 25 Stockholm, Sweden Phone: +46-8-719-0000 Fax: +46-8-18-40-85 Home Page: http://www.ericsson.com =========================== U N I T E D K I N G D O M =========================== ABERDEEN ASSET: Cuts Executive Pay and Freezes Boardroom Bonuses ---------------------------------------------------------------- Aberdeen Asset Management announced pay cuts of up to one-third for its chief executive, Martin Gilbert, and senior executives, and a freeze on all boardroom bonuses, says The Scotsman. AAM will also surprise investors by the announcement that the group has continued net investment inflow of funds over the year just ended. The group is also expected to reveal growth in fixed interest businesses particularly in its property investment arm. The declarations are aimed at restoring confidence in the company after its Aberdeen Preferred Income Trust, had appointed receivers as a result of continuing deterioration in the value of the company's portfolio assets. The fund management company's shares plunged 77% as four of its split capital trusts went into receivership. As a result, six directors, including Martin Gilbert and Christopher Fishwick, executive director in overall charge of investment, were in line for bonuses held over from last year. Gilbert's potential bonus was stated in the accounts as o650,000, while Fishwick stood to receive o1.45 million. CONTACT: ABERDEEN ASSET MANAGEMENT PLC 1 Albyn Place Aberdeen, Grampian AB10 1YG United Kingdom Phone: +44-1224-631-999 Fax: +44-1224-647-010 Home Page: http://www.aberdeen-asset.com BEDE: Notice of Notifiable Interest in Ordinary Shares ------------------------------------------------------- The Company received notification on that in accordance with sections 198-202 of the Companies Act 1985, as amended, the following companies have a notifiable interest in the ordinary 2p shares of the Company as shown below: Registered Holders: Shares Held % Shareholding BriTel Fund Nominees Limited 1,340,629 4.634 PossFund Nominees Limited 910,771 3.148 The above percentages are based on 28,933,167 Bede plc shares in issue at the date of this announcement. BIOCOMPATIBLES INTERNATIONAL: Declares Directors Interest --------------------------------------------------------- Bicompatibles International plc is making the following declaration with regard to interests held in the Company by Peter Stratford upon his appointment as a director of the Company on 26 September 2002. Shares: Number of Ordinary Shares Held Peter Stratford 1,475 Victoria Stratford (Spouse) 1,129 Total 2,604 Share Options: Date of Grant No. Of Options Exercise Price Period during or date on on which exercisable 13/4/1995 22,306 153.3p 13/4/1998 - 13/4/2005 15/4/1999 76,050 107.4p 15/4/2002 - 15/4/2009 11/8/1999 48,000 118p 11/8/2002 - 11/8/2009 16/8/1999 12,588 126p 16/8/2002 - 16/8/2009 22/9/2000 20,000 384p 22/9/2003 - 22/9/2010 24/9/2001 30,000 59p 24/9/2004 - 24/9/2011 Total number of shares over which options held: 208,944 BRAINSPARK: Interim Results for the Six-Month Period ---------------------------------------------------- Chairman's statement In my statement issued with Brainspark's financial statement for the year ended 31 December 2001, I explained that owing to the current negative market conditions Brainspark had invested in fewer businesses and for a longer period than originally envisaged. At its inception, Brainspark was conceived to participate in the initial stages of financing new and young companies to assist in their development and then take its profit by a trade sale or flotation in due course. The changing investment climate made this plan impossible to achieve. In order to address the issues presented during this difficult climate, I proposed the following actions: * to reduce significantly the Brainspark headcount during 2002 - retaining just two employees by March 2002 and reducing expenses in general; * to evolve Brainspark's business model, from the sole incubator approach through new sources of revenues, consistent with the Company's and new Board's know-how. The first areas of intervention were identified, which include, among others: IT portfolio management, private placements, mergers and acquisitions, fund raising through advanced financial instruments; and * to evaluate asset acquisition, which would involve the transfer of certain investments from Infusion S.p.A, the AISoftware 99.9 per cent. controlled investment vehicle, to Brainspark, in order to create a portfolio covering a geographic area ranging from UK, to Italy and Israel. The first point was implemented as scheduled bringing down the monthly cash burn rate to under GBP80k per month in the second quarter from GBP97k per month in the first quarter 2002 and GBP147k per month in the second half 2001; the second is in progress with two deals formally approved and awaiting sign off. As for the last point, on 20 May 2002 it was announced that the Boards of Infusion S.p.A. and Brainspark plc had entered into discussions with a view to assessing the potential acquisition by Brainspark of certain assets and liabilities of Infusion for a consideration to be satisfied by cash and an issue of Brainspark ordinary shares. Such a transaction would be treated as a related party transaction under the AIM Rules, but would be intended to be structured so that it would not constitute a reverse takeover under these Rules. The two Boards appointed Ernst & Young to conduct an independent valuation of the assets of both companies. On 24 July 2002, the Annual General Meeting of Brainspark gave the Board the authority to allot authorised but unissued Brainspark ordinary shares, to be used in connection with the acquisition of Infusion's assets and for other similar transactions. It is envisaged that the acquisition of Infusion's assets will not be contracted until the value of Brainspark's shares returns to a level of at least 3.75p per share, which was its listed price on 20 May 2002. The 3.75p value per share is considered by the Board to be below the value per share of the Company - an opinion reinforced by the independent evaluation commissioned by Infusion and carried out by Ernst & Young LLP of London referred to above. Financial Summary In the six months ended 30 June 2002, the Company incurred a loss before taxation of GBP811k, compared to a loss for the comparative period last year of GBP8.32 million. The consolidated net asset value at 30 June 2002 was GBP6.2 million - down from GBP7.0 million at 31 December 2001. Of the fall of GBP800k, GBP200k is attributable to depreciation of fixed assets and the remainder principally represents operating costs. Investments Review To date, Brainspark has made investments in eight companies during 2000 and 2001. The Brainspark portfolio comprises a range of businesses including Web service businesses and application service providers. Our decision not to continue supporting businesses that were not attracting new third party funding was prudent and has proved to be correct. This has been the case for the last few months and it will certainly continue if sentiment does not change. Most of the companies in which Brainspark has invested have not made progress as originally envisaged, but all them are concentrating on improving their businesses over a longer time frame. EasyArt and The Usability Company should reach a positive cashflow from the fourth quarter this year. As stated above in May 2002, following the takeover of Brainspark by AISoftware, the Board announced it had entered into negotiations with Infusion S.p.A. - an Italian investment vehicle 99.9 per cent owned by AISoftware, which holds eight minority holdings in advanced technology companies - with a view to the acquisition of certain of Infusion's trade and assets. Outlook At 30 June 2002, Brainspark's mid-market price per share of 2.75p valued the Company's issued capital at GBP3.4 million against a consolidated net asset value of GBP6.2 million. The Board believes that this insufficiently values the Company's future potential based upon the companies in Brainspark's portfolio and from the new business opportunities following the redirection of Brainspark's revenue. The Board remains committed to looking for value creation opportunities and with the new cost structure, which we plan to reduce even further by the end of 2002, Brainspark remains well positioned to withstand the extremely difficult market environment. Following the Infusion/Brainspark transaction, Brainspark will be able to rationalise the operational infrastructure and leverage the knowledge and market potential of the whole investment portfolio. When sentiment in the technology market improves, the company's prospects will also improve, since the most important measures to achieve this will already be in place. In addition to that, I am pleased to confirm that a few of the investee companies in which the company has invested will be ready for flotation once market conditions improve. Prof. Francesco Gardin Chairman Notes to the interim financial statements: a) Basis of preparation Principal accounting policies The financial statements have been prepared under the historical cost convention modified to include certain investments at valuation, and in accordance with applicable accounting standards. Fixed annual charges are appointed to the interim period on the basis of time elapsed and other expenses are accrued in accordance with the same principles used in the preparation of the annual accounts. The financial information contained in this interim statements is unaudited and does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The comparative information for the year ended 31 December 2001 is an unabridged version of the statutory accounts for that year and those accounts, upon which the auditors issued an unqualified opinion, have been filed with the Registrar of Companies. b) Ultimate parent company The immediate and ultimate parent company and controlling party from 1 March 2002 is AISoftware S.p.A., a company registered in Italy. Copies of the ultimate parent company's consolidated financial statements can be obtained from Camera di Commercio di Milano, Via Meravigli 11/b, 20123 Milan, Italy. To view complete balance sheet and report on profit and loss, please refer to the date sourced from UK-Wire: http://bankrupt.com/misc/Brainspark2.pdf CONTACT: Brainspark plc The Lightwell 12/16 Laystall Street Clerkenwell London EC1R 4PF Tel: +44 20 78 43 66 00 Fax: +44 20 78 43 66 01 E-mail: email@brainspark.com BRITISH ENERGY: S&P Comments on Recovery Prospect of Bondholders ---------------------------------------------------------------- Standard & Poor's Ratings Services warns that bondholders of troubled nuclear electricity generator British Energy PLC (B/Watch Dev/--) face uncertainty to recover investment even if the company is saved from going into administration. The rating agency presented two worst-case scenarios for bondholders in the form of British Energy losing its Canada-based Bruce Power LP assets, and the possibility that the company's nuclear power stations might close. British Energy is in danger of losing its Canadian assets due to its inability to provide sufficient credit support to satisfy the Canadian Nuclear Safety Commission. On the other hand, the closure of the UK power stations, although unlikely, is expected to require very high decommissioning costs. S&P also noted that in addition to the GBP408 million (US$634 million) bonds that mature in March 2003, March 2006, and March 2016, British Energy has a number of other liabilities that could influence bondholders' recovery prospects. These include nuclear liabilities, power purchase contracts, pension liabilities, lease commitments, and other business creditors. Bondholders may, however, have to consider restructuring the bonds to improve their chances of recovery. CONTACT: BRITISH ENERGY PLC Redwod Crescent, Peel Park East Kilbride, Strathclyde G74 5PR, United Kingdom Phone: +44-135-526-2000 Fax: +44-135-556-5656 Phone: http://www.british-energy.com BRITISH ENERGY: Fitch Downgrades Ratings to 'B-' From 'B+' ---------------------------------------------------------- Fitch Ratings has downgraded the Senior Unsecured rating of British Energy plc to 'B-' from 'B+' after clarification of the structure of the short-term funding which the British government has extended for two more months. According to the international rating agency, the new facility is guaranteed strongly than the debt to existing senior unsecured creditors. As the new GBP650 million facility is larger than the previous GBP410 facility, the secured debt comprises a higher proportion of overall debt in the group. According to Fitch, the security package to the new loan and the ability to create material security weakens the position of unsecured creditors. The ratings remain on Rating Watch Evolving depending on the changes in the nuclear generator's cashflow. British Energy's short-term rating, meanwhile, remains unchanged at B (speculative). CONTACT: BRITISH ENERGY PLC 3 Redwood Crescent, Peel Park East Kilbride, Strathclyde G74 5PR, United Kingdom Phone: +44-135-526-2000 Fax: +44-135-556-5656F Home Page: http://www.british-energy.com BRITISH ENERGY: S&P Lowers Senior Unsecured Debt Rating to 'CCC+' ----------------------------------------------------------------- Standard & Poor's Investors Service has lowered the senior unsecured debt ratings on British Energy's GBP410 bonds from 'B' to 'CCC+', following the company's granting of charges over its primary assets to the British government. The ratings remain on CreditWatch with developing implications. The troubled nuclear generator has granted the fixed and floating charge as trade-off for the extension of the support for two months. According to an AFX report, Paul Lund, S&P's Infrastructure Finance credit analyst, the action "subordinates the claims of the existing bondholders over the assets of the company". British Energy's corporate credit ratings, meanwhile, was not affected by the extension of credit support. This places the debt ratings for the lower priority or unsecured creditors two notches lower. The position implies a lower chance for unsecured creditors to ultimately recover investments. BRITISH ENERGY: Notification of Interests of Director ----------------------------------------------------- Name of company: British Energy Plc Name of director: Dr Robin Jeffrey Number of shares/ amount of stock acquired: 119 Class of security: ordinary shares Price per share: 17.55p Date of transaction: September 24 2002 Date completion: September 26 2002 Name of contact and telephone number: Paul Heward Tel: 01355 262201 Date of notification: September 27 2002 CONTACT: BRITISH ENERGY PLC 3 Redwood Crescent, Peel Park East Kilbride, Strathclyde G74 5PR United Kingdom Phone: +44-135-526-2000 Fax: +44-135-556-5656F Home Page: http://www.british-energy.com BRITISH ENERGY: US Rival Complains of Favoritism Over Bailout ------------------------------------------------------------- AES, British Energy's rival and US owner of Britain's biggest power station has asked lawyers to investigate if it could possibly file a suit against the government's GBP650 million bailout of the nuclear generator, the Financial Times reports. Garry Levesley, director of Drax Power and an AES vice-president said: "The support granted to British Energy singles out that company for favorable treatment with significant detriment to the rest of the industry." AES owns the 4000 MW Drax coal-fired power station in Yorkshire, which it acquired for GBP1.87 billion in 1999. Earlier, American Electric Power, owner of two large coal-fired power stations in northern England, also warned of the "serious repercussion" that the bailout would bring to future foreign investment. A previous TCR-Europe report cited Financial Times saying AEP fears that the help would prevent a much-needed reduction in UK power station over-capacity. AEP shares British Energy's financial woes brought down by a 40% fall in wholesale prices since 1998. In a letter to the government's energy minister, Stuart Staley, UK managing director of AEP, told the minister that a solution to British Energy's problem should apply to all generators. Mr. Staley holds that "Any government decision to grant concessions to a private company would therefore have a direct distortionary impact on the market by forcing competing plant to withdraw from the market." He added that, "arbitrary change in favour of a competitor decreases confidence in such market." He also warns that the ultimate impact of the repercussions would eventually be passed on to customers. COLT TELECOM: Moves Into New Pan-European Structure ---------------------------------------------------- COLT Telecom Group plc, the European provider of business communication services, said that it is moving to a pan-European organisational structure following the completion of the construction of its core network infrastructure. This will enable it to improve pan-European sales and operating efficiency while reducing employee numbers by up to 800 over the next twelve months. These actions are expected to achieve full year cost savings of up to GBP40 million in addition to the estimated full year savings of GBP20 million resulting from the workforce reduction plan announced in February. A provision of approximately GBP25 million will be made in the results for the quarter ending 30 September in respect of the expected cost of this programme. COLT also said that given the recent downturn in the telecommunications industry and in the overall economic environment that it is prudent to take further action to ensure that its asset base remains aligned with the realities of the market. As a result, it is taking an impairment charge to write down the book value of certain assets. This action will result in a non-cash exceptional charge of approximately GBP550 million in the results for the quarter ending 30 September. COLT added that it expects EBITDA for the quarter ending 30 September to improve to approximately GBP17 million compared with the GBP14.7 million reported for the quarter ended 30 June. Turnover is expected to be at a similar level to the GBP258.3 million reported for the quarter ended 30 June and increase by approximately 12% over the third quarter of 2001. COLT has continued to win higher margin corporate customers during the current quarter. Despite a further decline in the wholesale market turnover has been maintained and COLT has achieved improved gross margins and growth in EBITDA. Capital expenditure for the quarter is expected to be less than the GBP111 million reported for the second quarter with cash and liquid resources expected to be approximately GBP1 billion at the end of the quarter. Steve Akin, COLT President and Chief Executive said: 'My priority at COLT has been to ensure that we have the right organisation in place to support our next phase of growth. We have completed the construction of our core network infrastructure and are now in a position to manage the business differently. 'While trading performance is encouraging, in today's business environment it is important that we continue to achieve improvements in revenue mix, employee expenses and other operating expenses. We have identified further opportunities to achieve our revenue growth expectations at lower cost. By operating as one pan-European company, we can continue to develop our local, pan-European and eBusiness capabilities from a lower cost base. 'COLT is taking these actions from a position of strength. We continue to win high quality corporate business from current and new customers. EBITDA is growing, capital expenditure is reducing and we have cash and liquid resources of approximately GBP1 billion. These initiatives are specific and focused. They will be implemented in a way that is consistent with our objectives and reputation for excellence in customer service and they reinforce our confidence that we will achieve our target of being free cash flow positive during 2005.' COLT's financial results for the quarter ending 30 September are scheduled for release on 30 October. COLT Telecom Group plc is a leading European provider of business communication services. COLT has over 14,000 network services and eBusiness customers with high bandwidth local networks in 32 European cities in thirteen countries supported by a series of Internet Solution Centres and inter-linked by a 15,000 route kilometre high capacity fibre-optic long distance network. COLT Telecom Group plc is listed on the London Stock Exchange (CTM.L) and Nasdaq (COLT). Information about COLT and its products and services can be found on the web at www.colt.net CONTACT: John Doherty Director Investor Relations Tel: +44 20 7390 3681 CORDIANT COMMUNICATIONS: Notification of Interests of Directors --------------------------------------------------------------- Name of company: Cordiant Communications Group plc Name of director: David Hearn Date of grant: September 20 2002 Period during which or date on which exercisable: September 20- September 20 19. Total amount paid (if any) for grant of the option Nil 20. Description of shares or debentures involved: class, number 416,667 Ord Shares of 50p Exercise price (if fixed at time of grant) or indication that price is to be fixed at time of exercise: 49.5p Total number of shares or debentures over which options held following this notification: 416,667 Name of contact and telephone number for queries: Denise Williams Tel: 020 7479 0383 CORDIANT COMMUNICATIONS: Notification of Interests -------------------------------------------------- Name of company: Cordiant Communications Group plc Name of director: Peter Schoning Date of grant: September 20 2002 Period during which or date on which exercisable: September 20- September 20 2002 Total amount paid (if any) for grant of the option: Nil Description of shares or debentures involved: class, number 50,000 Ord Shares of 50p Exercise price (if fixed at time of grant) or indication that price is to be fixed at time of exercise: 49.5p Total number of shares or debentures over which options held following this notification: 470,684 Name of contact and telephone number for queries: Denise Williams Tel: 020 7479 0383 CORUS GROUP: Announces Director Shareholding -------------------------------------------- The following Directors of the Company purchased Corus Group plc shares at 38.75 pence per share on 25 September 2002 under the Corus Group Employee Share Ownership Plan. No of Shares Purchased A P Pedder 323 D M Lloyd 323 Following this notification, the directors shareholdings are: No of Shares Held A P Pedder 100,427 D M Lloyd 2,985 EQUITABLE LIFE: Quells Rumors of Possible Insolvency ---------------------------------------------------- Equitable Life denied reports it was secretly planning for possible insolvency, as rumors came out that the troubled company has contacted accountants Deloitte & Touche as possible administrators. According to The Scotsman, Equitable Life's chief executive Charles Thomson told his board a month ago of the "need to prepare to appoint an administrator" and that the group's chief financial officer, Charles Bellringer, had opened talks with Deloitte & Touche. A spokesman for the assurer, however, denied that the firm is considering administration, saying that it is only undertaking "responsible contingency planning on a periodic basis". The spokesman reiterated that the company had always been solvent. According to the Scotsman report, a review of the firm's business strategy showed that Deloitte did not think HBOS, who manages some of Equitable Life's funds and administrative functions, was providing good service to Equitable. An HBOS spokesman, meanwhile said, "We have a good working relationship with Equitable. Clearly this third party does not know the situation." In August, Moody's upgraded Equitable Life Finance's subordinated debt rating to Caa2 from Caa3, and assigned a developing outlook. The rating agency, at the same time, "withdraws its Ba2 insurance financial strength rating on Equitable Life Assurance Society, the parent and guarantor of Equitable Life Finance". Equitable Life serves 1.5 million Britons through pensions, endowments and savings plans. FILTRONIC PLC: Releases Annual General Meeting Statement -------------------------------------------------------- Filtronic plc, a leading global designer and manufacturer of customised microwave electronic subsystems, held its Annual General Meeting at the Marriott Hollins Hall Hotel, Hollins Hill, Baildon, Shipley at 11.00am on September 27, 2002. Prior to the formal proceedings, Professor J David Rhodes, CBE FRS FREng, Executive Chairman, made the following statement to shareholders regarding current trading and outlook: Current Trading 'In my annual results statement on 29 July 2002, I gave a detailed statement on outlook. Current trading is in line with the guidance given in that statement. The overall level of activity in the Wireless Infrastructure business has been as then indicated without any material change in demand for 3G WCDMA products. Demand for our handset antennas has increased, driven by the new generation of GSM phones. Overall profitability will be weighted towards the second half of the financial year due to the cost reductions currently being carried out, including the closure of the Santa Clara compound semiconductor fabrication facility.' Trading Outlook 'Whilst the short term global market conditions for our major businesses still remain uncertain, the current level of business indicated above is expected to be maintained for the foreseeable future and the Board expects both the Wireless Infrastructure and Cellular Handset Products business segments to remain strongly profitable and cash generative. Improved financial performance is expected for the current financial year from both the Electronic Warfare and Broadband Access businesses. With production of RF switches for M/A-COM, Inc. now underway at Newton Aycliffe and with the closure of the Santa Clara fabrication facility, operating losses in the Compound Semiconductor division will now reduce. The promising outlook for further orders through the Strategic Alliance with M/A-COM remains unchanged since the announcement on 16 September 2002. With regard to gallium arsenide based power amplifier modules, customer evaluation continues to be positive and the Board believes that these products will play a significant role in future GSM EDGE and 3G WCDMA base stations.' Financing 'Filtronic has continued to generate cash since 31 May 2002. This has enabled the company to buy back more than US$21m of the 10% Senior Notes during August and September. Over US$50m of these Notes has been bought in since February of this year. The amount of Notes outstanding has been reduced to US$119.2m and the company has no other borrowings. The company's GBP31m bank overdraft facility remains unutilised. The Board expects that the company will continue to generate cash during the current financial year.' CONTACT: Filtronic plc Professor J David Rhodes Tel: 01274 530622 CBE FRS FREng Executive Chairman & CEO Filtronic plc GALLERY HOMES & COUNTRY DECOR: Goes Into Receivership ----------------------------------------------------- Wallcoverings Manufacturer Gallery Home Fashion Limited and Country Decor Limited specialise in the design and manufacture of wallcoverings. Modern 56,000 sq ft freehold factory Up to date equipment Full range pf processes (Gravure, Flexographic and Rotary Screen) Combined annual turnover cGBP6.8 million Significant export markets in Europe and North America Skilled workforce For further details please contact: Richard Hawes and Nigel Morrison Grant Thornton 11-13 Penhill Road Cardiff CF11 9UP Tel: 029 2923 5591 Fax: 029 2038 3803 E-mail: sharon.m.bradley@gtuk.com GLOSSOP THERMOPLASTICS LTD: Notice of Sale of Business and Assets ----------------------------------------------------------------- William K Dawson and Ian Brown, Joint Administrators, offer for sale the business and assets of this plastic injection moulding company. Custon Moulders and Tool Makers Suppliers of Products to Textile and Cosmetic Industries GBP5.3 million turnover Management accounts disclose year to date operating profit Order book of circa GBP700,000 28 injection moulding machines ranging from 35 Ton to 380 Ton Highly skilled and experienced workforce Please contact the Joint Administrators: Deloitte & Touche 201 Deansgate Manchester M60 2AT Tel: 0161 455 8318 Fax: 0161 829 3806 Brookfield Industrial Estate Glossop Derbyshire SK13 6JF Tel: 01457 866111 Fax: 01457 861802 INVENSYS PLC: Notifies Interests of Director Sir Philip Beck ------------------------------------------------------------ Name of company: Invensys plc Name of director: Sir Philip Beck Number of shares / amount of stock acquired Total of 4,457 acquired comprising: 1) 664 (September 2002) 2) 445 (March 2002) 3) 3,348 (September 2001) Percentage of issued class: 0.000127% Class of security: Ordinary shares 25p Price per share: 1) GBP0.775 2) GBP1.1186 3) GBP0.741 Date of transaction: 1) September 26 2002 2) March 5 2002 3) September 14 2001 Date company informed: September 26 2002 Total holding following this notification: 52,653 Total percentage holding of issued class following this notification: 0.0015% Name of contact and telephone number for queries: Victoria Scarth Senior Vice President Corporate Marketing & Communications Tel: 020 7821 3712 Name and signature of authorised company official responsible for making this notification: Emma Sullivan Assistant Secretary Date of Notification: September 26 2002 INVENSYS PLC: Sells Rexnord Business for US$880 Million ------------------------------------------------------- Invensys plc, the international production technology and energy management Group, announces that it has agreed to sell its Rexnord business1 to The Carlyle Group, a US based private equity firm, for a gross consideration of USUS$913 million, less US$33 million in respect of working capital, giving net proceeds of US$880 million. The sale proceeds will be used by Invensys to continue to reduce its level of indebtedness. Rexnord is a leading global supplier of power transmission components, conveying equipment, bearings, chains, couplings, drives, motor brakes and idlers for industries worldwide. For the twelve months ended March 31, 2002, the business generated revenues of USUS$724 million and operating profit of USUS$104 million. Net assets, which are the subject of the transaction are approximately USUS$410 million. Goodwill written off to reserves, relating to the businesses being sold, amounts to approximately USUS$860 million. The impact on Group shareholders' funds will be an increase of approximately US$470 million. The sale of Rexnord is consistent with Invensys' previously stated objectives to divest non-core assets as part of its overall plan to improve capital strength and increase strategic focus. The transaction is expected to complete by the end of November 2002 and is subject to customary regulatory approvals and the completion of financing by The Carlyle Group. Rick Haythornthwaite, CEO of Invensys, said: "This net price of around GBP575 million for Rexnord takes our total proceeds for the disposal group to our target of GBP1.5 billion with two businesses still to sell. The remaining businesses, Invensys Drives and Fasco Motors, have total sales over GBP350million and the disposals are in progress and in line with timetable. We are delighted at the speed with which we have reached this target, and will continue to focus on completing the remaining disposals and realizing the best possible value for our shareholders." Trading Update Trading through the first few weeks of September, traditionally one of our strongest trading months, indicates that our trading performance should meet market expectations - a market range of between GBP207 million and GBP238 million for operating profit before exceptionals and goodwill amortisation. The continuing weakness of the U.S Dollar through September will affect the translation of our largest profit region into GBP sterling for our reported results. This is expected to bring our performance towards the lower end of market expectations. As noted in our Trading Update at the end of July, the economic environment continues to be fragile. The US commercial building market and IT services market have continued to track downward and the Telecoms market remains weak. In other areas we have experienced declines in line with current market trends. The businesses we identified as improving, which included certain of our consumer-driven and industrial businesses, together with Rail Systems and Power Components, still show signs of greater activity. Our change management programme and our major performance initiatives for customer development, services, project management and lean supply chain are well underway with over GBP20 million costs charged to operating profit before exceptionals in the first six months relating to these areas. Initial signs of improvement are being seen in the areas we are targeting, but the real benefits are not expected until the second half. Other areas such as interest, restructuring, amortisation and tax rate are in line with market expectations, and the company is expected to comfortably exceed its banking covenant at the half year. The company will announce its Interim Results during November 2002. Rexnord is headquartered in Milwaukee, Wisconsin and has over 5,000 employees located at more than 30 manufacturing facilities worldwide. Rexnord products are sold around the world by over 200 direct sales representatives through a network of multiple service centres and warehouses backed by hundreds of independent stocking distributors. Invensys plc is a global leader in production technology and energy management. The group helps customers improve their performance and profitability using innovative services and technologies and a deep understanding of their industries and applications. CONTACT: Invensys plc Victoria Scarth/Duncan Bonfield Tel: +44 (0) 20 7821 3529 Brunswick Simon Holberton/Ben Brewerton Tel: +44 (0) 20 7404 5959 INVENSYS PLC: Notifies Interests of Director Rolf Borjesson ----------------------------------------------------------- Name of company: Invensys plc Name of director: Mr Rolf Borjesson Number of shares / amount of stock acquired: Total of 1,571 acquired comprising: 1) 208 (September 2002) 2) 143 (March 2002) 3) 1,053 (September 2001) 4) 167 (September 2000) Percentage of issued class: 0.000045% Class of security: Ordinary shares 25p Price per share: 1) GBP0.775 2) GBP1.1186 3) GBP0.741 4) GBP1.5367 Date of transaction: 1) September 26 2002 2) March 5 2002 3) September 14 2001 4) September 15 2000 Date company informed: September 26 2002 Total holding following this notification: 16,571 Total percentage holding of issued class following this notification: 0.00047% Name of contact and telephone number for queries: Victoria Scarth Senior Vice President Corporate Marketing & Communications Tel: 020 7821 3712 Name and signature of authorised company official responsible for making this notification: Emma Sullivan Assistant Secretary Date of Notification: September 26 2002 LANCASHIRE DAIRIES: Notice of Sale of Business and Assets --------------------------------------------------------- The Joint Administrators, Dermot Power of BDO Stoy Hayward and Michael Horrocks of PricewaterhouseCoopers, offer for sale the business and assets of this manufacturer and distributor of a range of added value dairy products. Principal features of the business include: Prominent national brand Blue-chip customer base Processing of fresh milk and manufacture and supply of ambient flavoured milk drinks Overall turnover of co90m For further information please contact: Michael Horrocks PricewaterhouseCoopers 101 Barbirolli Square Lower Mosley Street Manchester M2 3PW Tel: 0161 245 2000 Fax: 0161 245 2828 MARCONI PLC: Plans Early Payment of Interest on Bonds ----------------------------------------------------- Marconi Plc scheduled a bondholders meeting on October 14 to approve early payment of interest due in March 2003, The Scotsman reports. Investors called to the meeting are holders of Marconi's 500 million (GBP313 million), 5.625 per cent bond due 2005 and its 1 billion (GBP627 million), 6.375 per cent bond due 2010. The convention aims to reach a quorum of two-thirds of the face value of the bonds and 75% voting in favor of the accelerated payment. If the company's announced financial restructuring is completed, the bond will cease to exist in January, according to the report. As announced at the end of August, Marconi's restructuring is likely to involve a debt for equity swap for a significant proportion of Marconi's indebtedness. The prospective capital structure being discussed has been designed to provide flexibility for Marconi Group's ongoing success, maximize cash and overall recovery for creditors and allow existing Marconi shareholders to maintain an ongoing economic interest in the Group. It is currently expected that Marconi will have pro forma net debt following the restructuring of approximately GBP300 million. CONTACT: Heather Green, Investor Relations Marconi plc Telephone: +44 (0) 207 306 1735 E-mail: heather.green@marconi.com MARCONI PLC: May Sell Founder's Records Amidst Financial Woes ------------------------------------------------------------- Marconi Plc may resort to selling the record of founder Guglielmo Marconi's work, including messages sent from the Titanic, to raise cash, says Bloomberg. Princess Elettra Marconi, the inventor's 72-year old daughter, is open to the possibility, according to the report. The plan, however, encountered oppositions from historians and other famility members, who believe such move would break up a unique resource for the public and researchers interested in early radio technology. The records, which was valued in 1997 by auctioneer Christie's International Plc at GBP3 million, holds wireless equipment from Marconi's first experiments in 1895, messages sent by Queen Victoria and thousands of photographs, as well as duplicates of the Titanic's radio equipment. The company, which struggles in the weight of a GBP4 billion-debt load, is yet to transfer ownership of the records to a trustee. After accumulating a loss of GBP5.9 billion due to drop in demand for phone equipment, the company agreed to hand over management control to creditors last month. The company's shares have fallen from 12.5 pounds in September 2000 to 1.5 pence Friday. MOTHERCARE PLC: Extends Contract to Operate Safety-Net Warehouse ---------------------------------------------------------------- Troubled UK baby products retailer, Mothercare Plc has recently extended a contract to operate a safety-net warehouse showing that it does not trust its distribution systems, a report from the Telegraph says. Mothercare chose to hold on to its distribution safety-net in the hope to ensure that it can deliver enough products to its stores during peak periods after the company experienced problems with its supply chain. The problems paved the way to three profit warnings within a year. The company's shares also plunged from 250p last October to 120p last week. The daily further reports that Mothercare, in its effort to solve its distribution woes, had initially planned to deliver all of its products through one central warehouse located in Daventry. But following a series of "teething problems," the company was obligated to set up a temporary warehouse near Coventry. The contract has recently expired but Mothercare's finance director and acting chief executive Mark McMenemy has extended the contract for another year. A spokesman for the company said the Daventry warehouse is still running to its targets despite the problems. Mothercare refused to disclosed the cost of the contract, which stood at GBP3 million the last time. It said it will give detail at its results, which would be released this November, the Telegraph reports. NICHOLSON INTERIORS: Administrators Offer Business For Sale ----------------------------------------------------------- By order of the Joint Administrators, Edward T Head and Dermot B Coakley of BDO Stoy Hayward, in the matter of Nicholson Interiors Ltd in administration, offers are invited for the business and assets of a specialist interior manufacture for land, sea and air projects. Interior manufacture and design specialists for super yachts and fast ferries Highly skilled workforce Contracts Range of mainly Wadkin joinery machine equipment 30,000 sq ft leasehold premises For further details please contact: Edward T Head BDO Stoy Hayward Park House 102-108 Above Bar Southampton SO14 7NH Tel: 023 8035 6126 E-mail: edward.head@bdo.co.uk OTIS VEHICLE: Administrators Offer Assets for Sale -------------------------------------------------- The Joint Administrators, W J Kelly and J M Wright offer for sale the business and assets of: Otis Vehicle Rental Ltd. Established vehicle rental business trading for 10 years Operating from a single site in Hull, North Humberside A fleet of approximately 160 vehicles Long term and spot hires For further information please contact: John Kelly Kroll Buchler Phillips Aspect Court 4 Temple Row Birmingham B2 5HG Tel: 0121 212 4999 Fax: 0121 212 4944 RAILTRACK: State Secretary Seeks Discharge Administration Order --------------------------------------------------------------- The Secretary of State has applied to the High Court seeking a court hearing for the discharge of the administration order. It is expected that the High Court will be in a position to hear the application at 10.00 am on Tuesday, October 1 2002 at the Royal Courts of Justice. Any material change to these arrangements will be notified on the Railtrack website at www.railtrack.co.uk as soon as possible. The Administrators do not intend to object to the Secretary of State's application. CONTACT: Michael Henman Edelman Public Relations Tel: 020 7344 1345 TELEWEST COMMUNICATIONS: Announces Change in ADS Ratio ------------------------------------------------------ Telewest Communications plc announced that, as of the opening of trading on Nasdaq on 30 September 2002, each of Telewest's American Depositary Shares will represent two hundred of its ordinary shares. Before 30 September 2002, Telewest's ADS-to- ordinary shares ratio was one-to-ten. The change in the ADS-to- ordinary shares ratio has been effected without charge to investors. For the first 20 trading days following the ratio change, the Nasdaq ticker symbol for Telewest ADSs will be 'TWSTD'. After expiration of these 20 trading days, the symbol will revert to TWSTY. Telewest Communications, the broadband communications and media group, currently passes 4.9 million homes and provides multi- channel television, telephone and internet services to around 1.8 million UK households, and voice and data telecommunications services to around 74, 300 business customers. Its content division, Flextech, is the biggest provider of basic channels to the UK pay-TV market and is the BBC's partner in UKTV, which has a portfolio of pay-TV channels based on the corporation's programming, including UK Gold. CONTACT: Jane Hardman Telewest Tel: 0207 299 5888 Mary O'Reilly Telewest Tel: 0207 299 5888 ************** 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, Ma. Cristina Canson and Jean Claire Dy, Editors. Copyright 2002. All rights reserved. ISSN 1529-2754. 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