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/raid1/www/Hosts/bankrupt/TCREUR_Public/021003.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, October 3, 2002, Vol. 3, No. 196 Headlines * C Z E C H R E P U B L I C * SKODA HOLDING: Must Find Partner to Stave Off Collapse * F R A N C E * ALCATEL: Systems Secure New Managed Broadband Services for Korea ALCATEL: Announces Employee Reductions in Canada FIMATEX SA: Announces First-Half 2002 Results INFOGRAMES: Mulls Job Reduction in European Business VIVENDI UNIVERSAL: Sells Italian Operation for EUR900 Million * G E R M A N Y * DEUTSCHE TELEKOM: Cable Assets Attract Four Bidders - Reports INTERSHOP COMMUNICATIONS: Announces Reduced Revenue Expectations * I R E L A N D * ELAN CORPORATION: Sells North American Rights to Abelcet * I T A L Y * FIAT SPA: May Reacquire Stake in Ferrari * P O L A N D * ELEKTRIM SA: Offer for Repayment of Debt to Polish Creditors * S W E D E N * SONG NETWORKS: Receives Payment for Sale of NOLs * S W I T Z E R L A N D * SWISS LIFE: To Issue 11.75 Million New Shares to Raise Cash * U N I T E D K I N G D O M * ABERDEEN ASSET: Cuts Cost, Postpones Bonuses to Director ANTISOMA PLC: Reaches Patient Recruitment Target ANTISOMA PLC: Notice of Annual General Meeting BRAINSPARK PLC: Appointment of Nominated Adviser CORUS GROUP: Disclosure of Interest in Shares GULF INTERNATIONAL: Fitch Downgrades Individual Rating to 'C/D' INVENSYS PLC: Warns Profits for First Half to Hit Rock Bottom MARCONI PLC: Advances Multiservice, High-Speed Communications NEC COMPUTERS: Denies Scottish Operation Will Be Closed NORTEL NETWORKS: Inks License Pact With Extreme Networks P&O PRINCESS: Liner Damaged in Shipyard Fire in Japan RAILTRACK PLC: Court Discharges Railtrack Out of Administration TELEWEST COMMUNICATIONS: Announces Restructuring Agreement WORLDCOM INC: Proposes to Pay $3-Million Pentagon Break-Up Fee =========================== C Z E C H R E P U B L I C ============================ SKODA HOLDING: Must Find Partner to Stave Off Collapse ------------------------------------------------------ Holding engineering company Skoda Holding has to find a strong partner within the year to ensure its continued operation, says Access Czech Republic Business Bulletin. The report says the holding's operation is in danger of being stopped due to a lack of operating capital. The holding company has an obligation to redeem by the end of March 2003, CEK3.6-billion loan granted to finance restructuring in 2000. Skoda's largest creditor, Czech Consolidation Agency, meanwhile, is maneuvering its own survival from the sinking boat. It is currently trying to speed up the sale of its 48% stake in the company, which consolidated net proceeds of CEK13.83 billion in 2001. Trades unionist, on the other hand, wants to sell the company to a solid investor. A consortium led by Atlantik FT together with Bonatrans and Kovosvit entered the tender in the middle of 2002. U.S.-based Appian Group and the international risk capital fund Advent and Swiss-based Merona are allegedly interested in the company. =========== F R A N C E =========== ALCATEL: Systems Secure New Managed Broadband Services for Korea ---------------------------------------------------------------- Alcatel (http://www.alcatel.com),the world leader in optical networking, and Powercomm, a leading Korean telecommunications carrier and a subsidiary of Korea's National Electric Power Corporation, announced today the signature of a frame contract to expand Powercomm's metropolitan and backbone networks in Korea. Leveraging Alcatel's next-generation optical synchronous digital hierarchy (SDH) multi-service systems, the expansion project will allow Powercomm to quickly and efficiently provide Korean business customers with a broader range of high-speed services including leased-lines and Ethernet services. Alcatel will deploy its data-aware SDH Optical Multi-Service Node (OMSN) systems, which address both metropolitan and long-distance applications, to expand Powercomm's metropolitan network in the country's capital, Seoul, and to upgrade Korea's national backbone. The implementation will enable Powercomm to significantly enhance the capacity and multi-service capability of its SDH transmission platform across the Korean peninsula. In addition, Alcatel will supply its advanced network management platform that ensures integrated management of metropolitan and backbone infrastructures, as well as optimizes overall network control and operational efficiency. "Over the past year, Powercomm has been operating its network services through Alcatel's OMSN systems, which secured the performance grade needed to extend our service boundary," said Moon-Young Park - Director of Powercomm's Network Construction Department. "We believe that this expansion will further enable us to enrich our broadband service offering and to increase our enterprise customers' satisfaction level." "We are pleased that Powercomm has again selected Alcatel's technology and expertise for its transmission network upgrade, which represents a new step in the build-out of Korea's new- generation network architectures," stated Jean-Marie Vansteenkiste, President of Alcatel's optical networks activities. "Alcatel's optical SDH systems offer a scalable multi-service solution that supports legacy and new-generation services, while securing operators' investments in already installed bases." As the recognized world leader in optical networking*, Alcatel has supplied its solutions to major operators and service providers in the Asia-Pacific area. In Korea, Alcatel is successfully expanding its positioning, working closely with Powercomm and SK Telecom to further advance their telecom infrastructures. The frame agreement follows Alcatel's contract win in 2001 to build Powercomm's 2.5 Gbit/s SDH regional transmission network in the Southern region of Korea. *According to RHK and Infonetics Research reports in 2Q02 About Alcatel's Optical Multi-Service Nodes (OMSN) Designed for both metro and core applications, Alcatel's Optical Multi-Service Nodes provide world-class next-generation SDH functionality and capacity through aggregation of broadband multi-protocol traffic patterns. Their deployment allows operators of optical transport networks to achieve the optimal balance between new competitive service offerings and traditional revenue-generating services by introducing a wide variety of data managed services - including top-level differentiated QoS capabilities, variable service rates and traffic congestion management. Supporting STM-4c, STM-16c and STM-64c concatenated payloads, OMSNs deliver integrated ATM switching, Packet Ring and IP/MPLS routing capabilities, as well as LAN interfaces (Ethernet, Fast Ethernet and Gigabit Ethernet) by integrating ISA plug-in modules. Although configurable as ADMs (Add-Drop- Multiplexers), OMSNs have full cross-connect capability thanks to their symmetrical and scalable architecture. OMSNs are flexible for use in all network topologies - i.e.: point-to-point, linear chains, multiple rings, meshed networks - and ensure complete synergistic use of hardware items across the systems, from common parts to traffic ports. Additionally, they all have fully non- blocking SDH matrices (HO/LO) and support all standard PDH interfaces About Alcatel According to leading telecom market research firm RHK, Alcatel was the 2001 world leader in global optical transport - encompassing terrestrial and submarine applications - with 17% market share, in terrestrial optical transport with 14.2% market share and in submarine optical transport with 41% market share, an unprecedented achievement in the telecom industry. Alcatel's optics business comprises optical components, optical fibers, SDH/SONET and DWDM systems, cross-connects, microwave radio links, network intelligence, and services for both terrestrial and submarine applications. 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, Alcatel operates in more than 130 countries. ALCATEL: Announces Employee Reductions in Canada ------------------------------------------------- To address the continuing economic slowdown in the telecommunications networking industry, Alcatel Canada today announced an acceleration of its cost management initiatives in Canada. The initiatives are designed to gain efficiencies in Alcatel's overall Canadian operating budget, and include a reduction of approximately 400 positions or about 12 percent of the overall workforce. Employees affected by the reduction will receive separation packages and outplacement services. About Alcatel 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, Alcatel operates in more than 130 countries. 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. 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 FIMATEX SA: Announces First-Half 2002 Results --------------------------------------------- Launch of the new commercial offer Steep reduction in net loss In a stock-market still making difficult going for all players in on-line finance, BOURSORAMA-FIMATEX has reduced its net loss by 89.4% to ? 2.9 million, compared with a net loss of ? 27.4 million the previous half-year. On comparable consolidation scope, the reduction is 88.7%. The success of the ambitious policy of reducing general expenses During the first half of 2002, BOURSORAMA-FIMATEX stepped up its cost-reduction policy begun back in early 2001. Operating expenses went down from ? 35,1 million in the second half of 2001 to ? 20.5 million in the first half of 2002 (a drop of 41.7%), falling twice as much as the fall in activity over the same period. Among the expense items concerned, the marketing budget was cut back by 81.1%, while IT costs and personnel expenses were reduced by 27.5%. The Group held up well during the 1st and 2nd quarters and activity turned sharply upwards in the 3rd quarter Operating income came to ? 24.2 million in the first six months of the year, compared with ? 28.7 million the previous half-year, making a contained fall of 15.7% (20.9% on constant consolidation scope). On-line savings BOURSORAMA-FIMATEX is gaining a firm foothold as the leader in France, with a 3-point gain in market share to 23% for the months of July and August 2002, and has maintained its 6% market share in Germany. This performance is due to a high-quality clientele, with distinctly greater activity than the industry average. In the third quarter, activity grew 25% compared with the previous quarter, with almost 672,000 orders transacted - and by 16% compared with the first quarter of 2001. The number of orders per account also saw a proportionate growth, to 23 orders per account per year in France, and 33 in Germany. Media During the second quarter of 2002, BOURSORAMA-FIMATEX earned ? 1.5 million in operating income from the Media activity, more than 60% of it from on-line advertising. Despite the decidedly lack-lustre climate in the on-line advertising market, the site succeeded in diversifying its advertising earnings by strengthening the budgets from general-purpose advertisers (AGF, IBM, Mercedes, French Railways' travel-package offer Voyages SNCF.). Furthermore, the financial communication offer (financial announcements, press releases, content broadcasting), launched in late 2001, is enjoying marked success among quoted companies: today, more than 80 of them - of which 20 are included in the CAC 40 index - have subscribed to this offer. The leading financial site by audience size (1.4 million different visitors per month and 200 million viewed pages per month - sources: DART/Cyberm,trie/Webalizer July 2002), and the leading site in terms of affinity for men aged 25/49 in the upper income brackets (source: Carat Interactive, September 2002), the www.boursorama.com site represents the ideal medium for advertisers seeking targeted communication. BOURSORAMA-FIMATEX: launch of the new commercial offer On 7th October, the Group will launch its new, innovative and competitive joint commercial offer. This will offer the private investor a single, comprehensive space for investment on-line: on the same screen, the websurfer will be able to view in a single click information, quotations, recommendations, and make transactions (see press release attached). Goals and prospects By the end of the year, the Group intends to finalise the joining of forces between Fimatex and Boursorama, by drawing the fullest benefit from all cost synergy, merging the two companies and renaming the merged company BOURSORAMA S.A. In this context, and as previously announced, Fimatex is acquiring the 50% of shares held by Soci,t, G,n,rale in Fimatex- Soci,t, G,n,rale for a total sum of ? 4.7 million. Formed in July 2000, Fimatex-Soci,t, G,n,rale was designed to take on the Soci,t, G,n,rale customers wishing to manage their investments on-line and actively using the Fimatex offer. At 30th June 2002, the joint venture held a total of 11,800 accounts. In the on-line investment activity, BOURSORAMA-FIMATEX's objective is to hold 30% of the market in 2004 while earning 45% of its operating income in non-brokerage activity. The objective in the Media activity is to increase advertising revenues by increasing the number of advertisers and developing new advertising formats, as well as widening the sources of revenue (direct marketing, premium corporate services and unbranded products). BOURSORAMA-FIMATEX enjoys a healthy financial situation: a highly positive cash position (? 120 at 30th June 2002), no indebtedness and a positive operating cash flow since July. The Group's financial objective remains unchanged: a net result close to break-even at the end of 2002, and positive net income in 2003. To view table of activity indicators, please refer to this link: http://bankrupt.com/misc/Fimatex2.pdf CONTACTS: Richard Avramovic Communication Manager Tel.: 00 33 1 56 33 55 12 E-mail: ravramovic@fimatex.fr INFOGRAMES: Mulls Job Reduction in European Business ---------------------------------------------------- French computer games company Infogrammes plans to launch job cuts that could raise annual cost savings of EUR25 million. The move is to halve the company's workforce, affecting 280 employees in the division, which posted a 20% fall in full-year sales. The company will also revamp its U.S. businesses, according to the Financial Times. The job slash, a restructuring of the Infograms' underperforming European operations, is in addition to the 160 cuts previously made, mainly in U.K. and Germany. According to the report, the computer games developer reported net loss of EUR79.4 million last month. Its net debt fell by EUR7.8 million in the twelve months to June, but the obligation is still more than three-times its market capitalization of EUR219 million. Analysts are said to doubt the company's ability to meet its EUR125 million and EUR312 million convertible bonds maturing in 2004 and 205, respectively. Shares in Infogrames have fallen more than 85% this year. VIVENDI UNIVERSAL: Sells Italian Operation for EUR900 Million ------------------------------------------------------------- Vivendi Universal SA is selling its Italian pay-television business, Telepiu SpA, to News Corp. for a price that is 40% less than it was offering. According to Bloomberg, News Corp. and Vivendi agreed to a EUR900 million (US$888) sell-off price for the asset, which has been losing money since it was created in 1991. News Corp. chairman Rupert Murdoch said the deal involves EUR470 million cash and EUR423 Million in assumed debt. 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. According to the report, News Corp. expects the customers of the merged company, which is to be named Sky Italia SpA, to climb to 3.2 million by 2005. In June, Telepiu and Stream estimated subscribers to number 2.3 million. Both operations have been unprofitable because of rising cost of buying sports and movie broadcasting rights. The venture is expected to break even in 2004, according to Mr. Murdoch. Vivendi shares rose 55 cents, or 4.9 percent, to 11.90 euros on the Paris stock exchange. The American depositary receipts, each equaling one ordinary share, rose 86 cents to $12.25 at 4:19 p.m. in New York Stock Exchange composite trading. ============= G E R M A N Y ============= DEUTSCHE TELEKOM: Cable Assets Attract Four Bidders - Reports ------------------------------------------------------------- Four bidders are interested in acquiring Deutsche Telekom's six regional cable-television operators, according to reports. The bidders include: a consortium of Goldman Sachs Group, Primera, Providence Equity and Apax Partners & Co.; CVC Capital Partners with Warburg Pincus; Hicks, Muse, Tate & Furst; and Liberty Media with Blackstone Group and Apollo. The group's offer is in the EUR2 billion level, an amount below the EUR2.5 billion to EUR3.5 billion sought by the company. Liberty Media offered a EUR5.5 billion bid for the assets last year before regulators blocked the moved. Europe's biggest phone company is unloading its cable systems and other assets to trim a EUR64.2 billion debt. INTERSHOP COMMUNICATIONS: Announces Reduced Revenue Expectations --------------------------------------------------------------- Intershop Communications AG (Nasdaq: ISHP; Neuer Markt: ISH), a leading provider of e-commerce software for enterprises, today announced reduced revenue expectations for the third quarter of 2002, ended September 30, 2002. Intershop expects third quarter 2002 revenue will be approximately Euro 9 million. The Company had previously expected third quarter 2002 revenue to be flat with the second quarter 2002 revenue of Euro 12.1 million. Stephan Schambach, Intershop Chief Executive Officer commented: "Due to continued weakness in the global economy during the third quarter of the year, companies continued to postpone spending on information technology. Unfortunately, despite its unique solutions offering, Intershop is not immune to these industry trends. As a result, the closing of certain deals was not achieved as we had originally expected in the third quarter of 2002. We do, however, expect significant third quarter 2002 business to materialize in the fourth quarter of 2002." Full financial results for the third quarter of 2002 and for the first nine months of 2002 will be reported on October 30, 2002. ============= I R E L A N D ============= ELAN CORPORATION: Sells North American Rights to Abelcet -------------------------------------------------------- Elan Corporation, plc has agreed to sell its United States, Canadian and any Japanese rights to Abelcet (TM), Elan's injectible amphotericin B lipid formulation, and certain related assets to Enzon, Inc. (NASDAQ: ENZN). Under the terms of the agreement, which is subject to shareholder approval, Elan will receive a cash payment of $370 million which may be subject to certain price deductions at closing, which are not expected to exceed $10 million. As there are no outstanding payment obligations with respect to Abelcet, the entire proceeds from the sale will form part of Elan's targeted proceeds from the divestment of assets as outlined in its recovery plan. 'This transaction represents an important step in Elan's recovery plan and enhances our overall cash position,' said Dr. Garo Armen, chairman of Elan. 'We continue to promote our hospital products, Maxipime(TM) and Azactam(TM), through the remaining hospital sales force of approximately 100 representatives. We will retain our existing rights to market Abelcet in territories outside of the United States, Canada and Japan. This will be managed through our European commercial infrastructure and distributors. I am pleased to note that individuals who have contributed to the success of Abelcet, from manufacturing through to commercialisation, will have an opportunity to continue to contribute as employees of Enzon.' Included in the transaction is related intellectual property (carrying value of $200 million), Elan's manufacturing facility in Indianapolis, Indiana (carrying value of $12 million) and inventory (estimated at $8 million at time of closing). The Indianapolis facility manufactures Abelcet and Myocet(TM) and the two companies will enter into a long-term manufacturing and supply agreement whereby Enzon will continue to manufacture Elan's requirements for these two products. The 94 employees associated with the manufacturing facility and a hospital sales force of approximately 60 individuals will be offered employment by Enzon. In 2001, Elan recorded net revenue and gross profit for Abelcet in the United States and Canada of $69.1 million and $56.4 million, respectively. For the first half of 2002, Elan recorded net revenue and gross profit for Abelcet in the United States and Canada of $44.1 million and $35.1 million, respectively. The product has yet to be launched in Japan. To comply with the listing requirements of the Irish Stock Exchange and the U.K. Listing Authority, the transaction is subject to the approval of Elan's shareholders at a special meeting. A circular, setting out in more detail the terms of the proposed transaction and the resolution to be put at the special meeting will be sent to shareholders as soon as practicable. The transaction is also subject to regulatory approvals, third party consents and other customary conditions, and is expected to close during the fourth quarter of 2002. Abelcet is a polyene antifungal agent indicated for serious invasive fungal infections in patients who are refractory to or intolerant of conventional amphotericin B therapy. Abelcet was developed by The Liposome Company, Inc., (which was acquired by Elan on May 12, 2000) and was approved by the U.S. Food and Drug Administration, first for aspergillosis in November 1995, and was expanded in October 1996 to include all invasive fungal infections. Elan was advised on this transaction by Morgan Stanley & Co. Incorporated. Elan is focused on the discovery, development, manufacturing, selling and marketing of novel therapeutic products in neurology, pain management and autoimmune diseases. Elan shares trade on the New York, London and Dublin Stock Exchanges. CONTACT: Elan Corporation Investors: (U.S.) Jack Howarth Phone: 212/407-5740 800/252-3526 or Investors: (Europe) Emer Reynolds Phone: 353-1-709-4000 00800 28352600 ========= I T A L Y ========= FIAT SPA: May Reacquire Stake in Ferrari ---------------------------------------- Fiat SpA may reacquire 21.5% of luxury sports car maker Ferrari SpA from Mediobanca SpA, reports say. Although the option is included in a draft of the bank's first-half accounts, the timing and price of the move were not stated. The company's sell-off of its 34% stake in Ferrari to Mediobanca- led consortium is considered a key development in the company's first-half results. Mediobanca acquired the stake to help Fiat cut its EUR6.6 billion net debt. Mediobanca, however, has sold 6.5% of the stake to Lehman Brothers Holdings Inc., to keep below the 15% regulated limit of holding in an industrial company. Fiat Spa earlier had reportedly planned to dismiss as many as 6,000 employees in its auto unit in the coming months to cut costs. The bank is also selling assets after creditors imposed a restructuring plan to decrease debt. CONTACT: FIAT SPA 250 Via Nizza 10126 Turin, Italy Phone: +39-011-686-1111 Fax: +39-011-686-3798 Toll Free: 800-804027 Home Page: http://www.fiatgroup.com/e-index.htm =========== P O L A N D =========== ELEKTRIM SA: Offer for Repayment of Debt to Polish Creditors ------------------------------------------------------------ The Management Board of Elektrim S.A. announces that on 30 September 2002 it presented an offer for the repayment of the Company's debt to all Polish creditors as per the balance sheet whose receivables from the Company exceed PLN 10,000. The Company's Management Board has informed creditors that in its estimation the repayment of the whole debt is not possible and that it cannot be estimated to what degree and when the satisfaction of the Company's creditors would be possible, if bankruptcy is declared. With regard to the above the Management Board decided to present two alternative proposals to the aforesaid creditors of the Company. The first proposal provides for immediate repayment of half of the debt, including principal and interest and a simultaneous amortisation of the remaining debt. The alternative proposal provides for immediate repayment of 20% of the present debt, including principal and interest, while the repayment of the remaining 80% of the debt would be deferred until 30 June 2005 and the debt would be adjusted by the inflation ratio published by the Central Statistical Office for relevant periods for which the repayment has been deferred. The yearly inflation rate, as published, would be the basis for adjustment for the period until 31 December 2003. The Company's offer is binding until 3 October 2002 inclusive. CONTACT: Jacek Dabrowski Director of Investor Relations Phone: (+48 22) 432 87 75 Fax: (+48 22) 432 84 75 Email: jacek_dabrowski@elektrim.pl =========== S W E D E N =========== SONG NETWORKS: Receives Payment for Sale of NOLs ------------------------------------------------ Song Networks Holding AB (www.songnetworks.net) announced that it has now timely received payment for the previously announced sale of Net Operating Losses (NOLs). The NOLs were sold for SEK 150 million (USD 16 million). Song Networks is a data and telecommunications operator with activities in Sweden, Finland, Norway and Denmark. The company's business concept is to offer the best broadband solution for data communication, internet and voice to businesses in the Nordic region. This means that Song Networks supplies communication solutions that are attractively customized for each corporate customer. Song Networks is currently the only pan Nordic operator investing in local access networks with broadband capacity. The Company has built local access networks in the largest cities in the Nordic region. The access networks, which are linked by a long-distance network is one of the fastest data and internet super-highways in Europe, with an initial capacity for customers of up to one gigabit. The Company was founded in 1995 in Sweden and has approximately 1,000 employees. The head office is located in Stockholm and there are an additional 34 offices located in the Nordic region. CONTACT: Song Networks Holding AB Tomas Franz,n Chief Executive Officer Tel: +46 8 5631 0111 Mobile: +46 701 810 111 E-mail: tomas.franzen@songnetworks.net Song Networks Holding AB Jenny Moquist Investor Relations Manager Tel: +46 8 5631 0219 Mobile: +46 701 810 219 E-mail: jenny.moquist@songnetworks.net ===================== S W I T Z E R L A N D ===================== SWISS LIFE: To Issue 11.75 Million New Shares to Raise Cash ----------------------------------------------------------- Troubled life and pension insurer, Swiss Life, is considering selling up to 11.75 million new shares to raise cash to counter investment losses, Reuters say. The group, however, did not set an issue price for the new shares. The firm's investment funds had been hit by the slump in stock markets. Swiss Life's shares lost more than 80% in value this year. The firm plans to raise between CHF900 million (US$610.6 million) and FHF1.2 billion in new capital and is also seeking to sell non-core businesses, cut costs and shed some 1,500 jobs, according to the report. The issuance of all the stock will double the number of its shares in issue, says the report. A shareholder meeting is scheduled on October 23 to approve an issue of at most 5,873,500 ordinary shares and the same number of shares in conditional capital - involving equity-backed issues such as convertible bonds or bonds with warrants. Analysts are still wary about the risk of the issuance, citing high stock market and exposure and diminished profits outlook. The October 23 meeting is also set to decide on a new corporate set-up for a new holding company to carry out its new strategy of refocusing on core life insurance. The creation of the new company is also aimed to create transparency to investor. Shares in Swiss Life Holding are due to replace current stock in Swiss Life at a one-for-one ratio. Banks in the syndicate led by Credit Suisse First Boston and JP Morgan will formally underwrite the issue. =========================== U N I T E D K I N G D O M =========================== ABERDEEN ASSET: Cuts Cost, Postpones Bonuses to Director -------------------------------------------------------- Directors in Aberdeen Asset Management, a firm whose four split capital trusts went into receivership recently, will not receive bonuses as the firm reduces cost by as much as GBP30 million. According to The Scotsman, some of the directors are also postponing bonuses due to them from last year and are taking a 33% pay cut. The fund management company has been under pressure from investors to stem the decline in the company's stock due to the receivership. The firm's shares plunged 77% on the report. According to analysts, investors are currently urging the firm to devise a scheme that would reduce debt, compensate holders of a fund that invested in split capital trusts. In July, the firm's chief executive, Martin Gilbert, was summoned by lawmakers to explain the collapse of some trusts as stock markets decline. Mr. Gilbert is among the executives whose pay was cut by up to one-third recently. The firm's net sales for the year to date fell 37 per cent to o1.25 billion before the repayment of debt by the split capital trusts that AAM oversees. Funds under management fell 9.6 per cent to o24.8bn from March 31, compared with a 12.6 per cent decline in the FTSE All Share Index. 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 ANTISOMA PLC: Reaches Patient Recruitment Target ------------------------------------------------- Antisoma plc, the U.K.-based biopharmaceutical company, announces that it has reached the target for patient recruitment in its pivotal phase III study of pemtumomab in ovarian cancer. Four hundred and twenty patients have been enrolled into the SMART (Study of Monoclonal Antibody Radioimmuno-Therapy) trial, which examines whether women with ovarian cancer who receive pemtumomab in addition to standard treatment survive longer than those receiving standard treatment alone. Patient recruitment into SMART began in 1998, and a recent independent analysis showed that the trial is likely to be completed in the second half of 2004, with an interim analysis expected in approximately 12 months' time. The precise timing of the interim analysis and final results will depend on the overall death rate in the trial. If SMART confirms the survival benefit seen with pemtumomab in an earlier phase II trial, the study will form the basis of applications for marketing licences. Glyn Edwards, CEO of Antisoma, said 'Completing recruitment into this substantial phase III trial is a major achievement for Antisoma, and underlines our strengths as a drug development company. We can now look forward to the results in 2004, and we remain optimistic that pemtumomab will provide new hope to patients with ovarian cancer as well as delivering substantial rewards to our shareholders.' CONTACT: Antisoma plc Glyn Edwards Chief Executive Officer Tel: +44 (0)20 8799 8200 Financial Dynamics Jonathan Birt/Ben Atwell Tel: +44 (0)20 7831 3113 Notes on Antisoma Antisoma plc is a biopharmaceutical company specializing in the pre-clinical and clinical development of products for the treatment of cancer. In difficult market climate, Antisoma never had enough cash to see it through to profitability. The biotech company needed to raise an additional GBP5 million in February this year after U.S. healthcare group Abbott cut funding for Antisoma's lead drug. ANTISOMA PLC: Notice of Annual General Meeting ---------------------------------------------- The Board of Directors is pleased to invite the shareholders of Antisoma plc to attend the Annual General Meeting of the Company which will take place on Wednesday 20 November 2002 at 2.00 pm at the offices of CMS Cameron McKenna, Mitre House, 160 Aldersgate Street, London EC1A 4DD. Agenda - to receive the Financial Statements for the year ended 30 June 2002 together with the Directors' report and independent auditors' report; - to receive the report of the Board on directors' remuneration for the year ended 30 June 2002; - to re-appoint Grahame Cook and Michael Pappas, who retire by rotation, as Directors; - to confirm the appointment of Ann Hacker, who was appointed by the Board on 2 July 2002, as an additional Director; - to re-appoint the auditors and give the Directors authority to fix their remuneration; Special Business - to increase the limit contained in the Articles of Association on the amount which may be paid as fees to non-executive Directors; and - to renew disapplication of certain pre-emption rights on the allotment of shares. Persons who acquired their interest in shares through the book entry systems of Intersettle, Cedelbank and/or Euroclear and/or Clearstream at or following the listing of Antisoma shares on EASDAQ (now NASDAQ Europe) on 17 December 1998 must make appropriate arrangements through Euroclear or Clearstream in order to exercise the votes attached to the underlying shares in the Company in which they are interested. Shareholders who appear on the register of members of the Company can vote in person or by proxy using documents drawn up by the Company and which can be obtained at no cost from the Company Secretary (Tel: +44 (0)20 8799 8200) at the registered office of the Company. CONTACT: Antisoma plc Glyn Edwards Chief Executive Officer Tel: +44 (0)20 8799 8200 Financial Dynamics Jonathan Birt/Ben Atwell Tel: +44 (0)20 7831 3113 BRAINSPARK PLC: Appointment of Nominated Adviser ------------------------------------------------- Brainspark is pleased to announce that Evolution Beeson Gregory Limited has been appointed as the company's Nominated Adviser with immediate effect. 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 CORUS GROUP: Disclosure of Interest in Shares ---------------------------------------------- Corus Group plc has received a notification from The Capital Group Companies, Inc. on behalf of its affiliates, including Capital Guardian Trust Company, Capital International Limited, Capital International S.A., Capital International, Inc. and Capital Research and Management Company, pursuant to Section 198 of the Companies Act 1985. On 27 September 2002 The Capital Group Companies, Inc. was interested for the purposes of the Act in 251,939,492 ordinary shares of 50p each representing 8.05% of Corus Group plc's issued capital. These holdings form part of funds managed on behalf of investment clients by the Companies. CONTACT: Burson-Marsteller, New York Mark E. Bonacci, 212/614-4124 Fax: 212/598-5377 mark_bonacci@nyc.bm.com GULF INTERNATIONAL: Fitch Downgrades Individual Rating to 'C/D' --------------------------------------------------------------- Fitch Ratings downgraded Gulf International Bank (UK) Ltd's Short-term rating to 'F2' from 'F1' and Individual rating to 'C/D' from 'B/C'. The bank's support rating is unchanged at '3'. According to the international rating agency, the action reflects the vulnerability of the bank's performance in the currently difficult market environment. Fitch also warns of asset quality problems, especially within the high-yield portfolio. The rating agency notes that Gulf International has a weak revenue structure, as it is dependent on income from proprietary trading and investment activities. As high-yield bonds accounts for a significant proportion of its assets, Fitch warns that the bank is at risk of being exposed to further deterioration in the credit environment. Efforts in improving the quality of earnings of the London-bas ed bank, on the other hand, are being hampered by weak market conditions. The bank is formerly Saudi International bank before it merged with Gulf International Bank. INVENSYS PLC: Warns Profits for First Half to Hit Rock Bottom ------------------------------------------------------------- British engineering and electronics group Invensys warns that first-half profit would be at the lowest bracket of expectations, says Reuters. The announcement sent the group's share down by 4.6%. The firm admits it has not yet recovered from a 41% drop in profit last year due to the weakness of the U.S. dollar, and does not see a turnaround until the second half. Analysts expect operating profit before exceptionals and goodwill amortization of between GBP201 million (US$324 million) and GBP238 million. Invensys was hit by a slump in demand for its software and electrical products. As a counter-measure, the group shed thousands of staff and sold assets. The company has recently unloaded its U.S. car-parts units, Rexnord for US$913 million, and achieved the aimed debt reduction months ahead of schedule. The proceeds of the sale netted US$880 million according to the Reuters source. MARCONI PLC: Advances Multiservice, High-Speed Communications ------------------------------------------------------------- U.S. Government's Naval Research Lab Demonstrates Transport of Multiple Streams of High-Definition Video with Marconi's New OC- 192c/STM-64c ATM Port Card Advancing the vision of an ultra high-speed multiservice communications infrastructure, Marconi (MONI) today announced the successful demonstration of its 10 Gbps (OC-192c/STM-64c) Asynchronous Transfer Mode (ATM) port card. Marconi believes it is the first company to achieve and demonstrate through a third party 10 Gbps ATM transmission, thereby creating a new benchmark in networking technology. The demonstration involved passing multiple 1.6 Gbps streams of high-definition video through the new OC-192c/STM-64c interface on Marconi's industry-leading switch-router, the BXRr-48000, at the U.S. Naval Research Laboratory in Washington,D.C. The BXR-48000, in demonstration by the Naval Research Lab since early this year, was recently purchased by the U.S. Department of Defense (DoD). "With the delivery of an OC-192c ATM port card for its 480 Gbps multiservice switch-router, the BXR-48000 dramatically raises the bar for networking performance," said Dr. Hank Dardy, Navy Chief Scientist at NRL's Center for Computational Science. "Data transport at OC-192c rates provides DoD networks with the capability for moving encrypted information at the highest feasible speeds under the most stressful real world conditions, such as transport of real-time high-definition video streams, the integration of large data archive assets to decision support centers, remote collaborative visualization and distributed high productivity supercomputing." Numerous government agencies - at national, regional and local levels - are currently engaged in planning mission-critical network upgrades in response to various security initiatives. The capability to transport multiservice traffic at 10 Gbps ATM speeds on Marconi's BXR-48000 will give the service providers being called upon to support these agencies new options for meeting those demands. "Once again, Marconi is delivering new technology that provides real benefits to our customers, whether they are in the Government sector or are operating in commercial environments," said Joe Pajer, executive vice president and general manager of Marconi's Broadband Routing & Switching group. "The pragmatic result of Marconi's technological leadership assures network operators they are deploying networking platforms that will help them reduce operating costs and protect traditional revenue sources while earning new revenues as markets continue to develop for newer, IP-based services." Potential Commercial Applications When configured in the BXR-48000 with its unique payload- and protocol-agnostic features, Marconi's new OC-192c ATM port card will enable commercial network operators to offer new services that can efficiently manage huge volumes of data traffic. Further, service providers with large DSL (Digital Subscriber Line), Frame Relay and ATM networks now have new options for evolving their networks. With Marconi's new 10Gbps ATM interface, they are no longer limited to MPLS (Multi-Protocol Label Switching) and 10 Gbps POS (Packet-over-Sonet) links to address network scalability issues. The BXR-48000's IP and MPLS capabilities, coupled with Marconi's new OC-192c ATM interface, will allow service providers to evolve their networks with a platform that enables a smooth migration from ATM to IP/MPLS without risking the implementation of premature technological standards. Anticipated application environments for these new carrier offerings include: Financial markets: improved records efficiency and transaction precision facilitated by real-time transfers of massive amounts of financial data; Public security: high-speed integration of surveillance video with data archives for security monitoring and recognition; Earth sciences and geologic industries: improved weather forecasting and more efficient oil and gas exploration via real- time integration of bandwidth-intensive data and video imagery from satellite and ground sensors linked to large-scale supercomputing sites. Technical Notes The introduction of OC-192c/STM-64 ATM interfaces continues Marconi's history of introducing industry-leading technology, including the BXR-48000 multiservice switch-router, with its leading 40 to 480 Gbps of capacity in just two standard equipment racks. Marconi was also first to introduce OC-48c/STM-16 ATM interfaces with the release of the ASXT-4000 in 1998. Marconi's new OC-192c ATM interface provides the necessary bandwidth and quality of service (QoS) guarantees for mission-critical applications. In its 480 Gbps configuration (960 Gbps in router terminology), the BXR-48000 can accommodate up to 48 OC-192c interfaces at full, line-rate performance. The BXR-48000 employs carrier-class, single-stage, output buffered, deterministically non-blocking architecture to ensure full performance at that line rate. The BXR-48000's patent- pending architecture delivers protocol- and payload-agnostic performance to help network operators both reduce operating costs and roll out new IP-based services on the same platform, while insuring against stranded technology investments. Marconi plc is a global telecommunications equipment and solutions company headquartered in London. The company's core business is the provision of innovative and reliable optical networks, broadband routing and switching and broadband access technologies and services. The company's aim is to help fixed and mobile telecommunications operators worldwide reduce costs and increase revenues. The company's customer base includes many of the world's largest telecommunications operators. The company is listed on the London Stock Exchange under the symbol MONI. NEC COMPUTERS: Denies Scottish Operation Will Be Closed ------------------------------------------------------- Computer manufacturer NEC revealed it is currently planning a sale or leaseback of the site, and not a closure of its Livingston plant, which manufactures allof NEC's PCs for the U.K. market. According to The Scotsman, the president and chief executive of NEC Computers International, Michel Fromont, denied that there are no plans to transfer the operation's 200 employees from Livingston to the Far East or Eastern Europe. Without giving names, the company admitted it is instead negotiating with two separate parties for a possible sell-off of the company's building and land in order to free up cash. The asset, a 180,000 sq. ft. of real property, is estimated to be worth between GBP7.5 million and GBP10 million, although the final price is still dependent on other conditions. Mr. Fromont said, "We will sell it if we have a good opportunity at the right price". It was only the "miscommunication" between NEC CI and senior executives in Japan over the plan to sell and lease back the site that triggered the rumors of the closure, says Mr. Fromont. The proceeds of the tentative sale is to finance NEC's acquisitions in Europe. Mr. Fromont also cleared that NEC CI is totally a different company from NEC Semiconductor, which closed a plant in Livingston last year. NORTEL NETWORKS: Inks License Pact With Extreme Networks -------------------------------------------------------- Nortel Networks Limited (NYSE:NT) (TSX:NT.) and Extreme Networks, Inc., (Nasdaq:EXTR) have entered into a patent cross license agreement, the terms and conditions of which are confidential. The pending lawsuit between Nortel Networks Limited, Nortel Networks, Inc., the U.S. subsidiary of Nortel Networks Limited, and Extreme Networks in the United States District Court for the District of Massachusetts, Civil Action No. 01-10443, has been dismissed. Extreme Networks provides the most effective applications and services infrastructure by creating networks that are faster, less complex and more cost-effective than conventional solutions. Headquartered in Santa Clara, Calif., Extreme Networks sells its award-winning switching solutions in more than 50 countries. For more information, visit http://www.extremenetworks.com Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at http://www.nortelnetworks.com Nortel Networks Corp.'s 7.875% bonds due 2026 (NT26CAR1) are trading at 34 cents-on-the-dollar, DebtTraders reports. See http://www.debttraders.com/price.cfm?dt_sec_ticker=NT26CAR1for real-time bond pricing. P&O PRINCESS: Liner Damaged in Shipyard Fire in Japan ----------------------------------------------------- A liner of P&O Princess Cruises PLC, Diamond Princess, caught "significant" fire during a construction in Japan, the Financial Times reports. The casualty is a result of a major fire at the Mitsubishi Heavy Industries shipyard in Nagasaki. The cruise ship operator said, however, that the incident would not affect its 2003 earnings considering there are contractual arrangements and insurance policies to cover the damage. The vessel is due to be delivered in May 2003 and start sailing the following month. P&O Princess is currently the subject of a rival merger bid of Royal Caribbean Cruises ASA, and Carnival Corp. The US Federal Trade Commission is expected to decide on the matter within the next two weeks. P&O Princess Cruises has approximately 20,000 employees worldwide and carried over one million passengers in 2001, generating a revenue of approximately USD2.5 billion (approximately GBP1.7 billion). Headquartered in London, P&O Princess Cruises' ordinary shares are quoted on the London Stock Exchange and as ADSs on the New York Stock Exchange (under the symbol 'POC'). CONTACT: P&O Princess Cruises plc Caroline Keppel-Palmer Telephone: +44 20 7805 1214 RAILTRACK PLC: Court Discharges Railtrack Out of Administration --------------------------------------------------------------- A high court has released Railtrack from administration with the belief that the move would enhance the company's operation and ability to pay debts. According to the Financial Times, the move is expected to trigger the sell-off of the company's operating business to Network Rail. Railtrack is selling its troubled U.K. train track and station unit, Railtrack Plc, to Network Rail Ltd. for a GBP500 million deal that includes taking on its GBP7.1 billion debt. Network Rail Ltd. was granted by the government a EUR37.5 billion (US$36.5 billion) package to acquire the unit. The new owner is scheduled to take-over Railtrack on Thursday, leaving Railtrack Group, the parent company, with some o1.3bn in cash. An extraordinary meeting was scheduled October 18 to decide on putting the company into voluntary liquidation According to the report, the administration order discharge came just in the nick of an opposition filed by St. Paul International Insurance company, which is posting around GBP52 million claims against the railway operator. The insurer, through John Brisby QC, declared Railtrack "balance sheet insolvent," and held that solvency can only be attained by accounting adjustments, a matter which had not been explained to the court. The insurance company also warned that the financial situation at Railtrack, and its successor could deteriorate over the next few years. TELEWEST COMMUNICATIONS: Announces Restructuring Agreement ---------------------------------------------------------- Telewest Communications plc announces that it has reached an agreement relating to a restructuring with an ad hoc committee of bondholders. The principal terms of the agreement are as follows: - all outstanding notes and debentures issued by Telewest and Telewest Finance (Jersey) Limited, representing approximately o3.5 billion of indebtedness, and certain other unsecured obligations of Telewest will be cancelled and exchanged for ordinary shares representing 97 per cent. of the issued ordinary share capital of the Company immediately following the restructuring; - the current ordinary shareholders will receive the remaining 3 per cent. of Telewest's issued ordinary share capital; and - the senior secured credit facility, all vendor financing, trade debt and other obligations of Telewest Communications Networks Limited and its subsidiaries will be unimpaired. This preliminary agreement is non-binding and is subject to various conditions, including the reaching of an agreement between Telewest, the Bondholder Committee and Telewest's senior lenders with respect to the detailed terms of the restructuring and the process for its implementation. Telewest now intends to seek support for this agreement from its other stakeholders. Further announcements relating to the restructuring process will be made in due course. In view of this agreement, the Board has determined, after consultation with certain of its stakeholders, that it will defer payment of interest under certain of the Notes and the settlement of certain Telewest currency unwind contracts pending the completion of the Company's restructuring negotiations. Charles Burdick, managing director said: "Today's announcement represents an important first step towards completing a financial restructuring that carefully balances the interests of all stakeholders. I am confident we will be able to conclude a final agreement that will put the Company on a sound financial footing, allowing us to build on our operational strength and extend our leadership in the broadband market. All customers and suppliers should be reassured that Telewest will continue to meet its operational commitments." This announcement has been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000 by Salomon Brothers International Limited, trading as Schroder Salomon Smith Barney ("Schroder Salomon Smith Barney") of Citigroup Centre, 33 Canada Square, Canary Wharf, London E14 5LB. Schroder Salomon Smith Barney is acting for Telewest and no one else in connection with the transaction and will not be responsible to any other person for providing the protections afforded to customers clients of Schroder Salomon Smith Barney or for providing advice in relation to the transaction. 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: Telewest Charles Burdick, Managing Director Phone: 020 7299 5000 Richard Williams, Investor Relations Phone: 020 7299 5479 Brunswick John Sunnucks/Craig Breheny Phone: 020 7404 5959 Schroder Salomon Smith Barney David Kirshenbaum/Matthew Smith Phone: 020 7986 4000 Gleacher & Co Rob Engel/Michael Pescod Phone: 020 7484 1150 WORLDCOM INC: Proposes to Pay $3-Million Pentagon Break-Up Fee -------------------------------------------------------------- Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, in New York, notes that as a stalking horse bidder, TST/Pentagon City LLC has established a guaranteed return for Worldcom Inc., and its debtor-affiliates' estates and creditors. Even if the Purchaser ultimately is not the successful bidder, the Debtors and their estates will have benefited from the higher purchase price established by the improved bid. The proposed Auction Procedures require that Competing Offers exceed the Purchase Price by a minimum of $4,042,750. Thus, if an alternative transaction ultimately is approved and consummated, the Break-Up Fee will only be payable after the sale proceeds have been received by the estates and from amounts that are in excess of the Purchase Price. Consequently, there is no diminution in value to the Debtors' estates. The Debtors ask the Court to approve the proposed Break-Up Fee of $3,042,750, representing 3% of the Purchase Price. Ms. Goldstein points out that approval of break-up fees and other forms of bidding protections in connection with the sale of significant assets pursuant to Section 363 of the Bankruptcy Code has become an established practice in Chapter 11 cases. Bankruptcy courts have approved bidding incentives similar to the bidding protections under the "business judgment rule," which proscribes judicial second-guessing of the actions of a corporation's board of directors taken in good faith and in the exercise of honest judgment. Ms. Goldstein asserts that the proposed bidding protections meets the "business judgment rule" standard. The Break-Up Fee is reasonable because: -- it is not excessive compared to fees and reimbursements approved in other cases in this Circuit, and -- it will not diminish the Debtors' estates. Ms. Goldstein explains that break-up fees enable a debtor to assure a sale to a contractually committed bidder at a price the debtor believes is fair and reasonable, while providing the debtor with the opportunity of obtaining even greater benefits for the estate through an auction process. (Worldcom Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., 609/392- 0900) Worldcom Inc.'s 11.25% bonds due 2007 (WCOM07USR4), DebtTraders reports, are trading at 16 cents-on-the-dollar. See http://www.debttraders.com/price.cfm?dt_sec_ticker=WCOM07USR4for real-time bond pricing. ************ 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. 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. 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