/raid1/www/Hosts/bankrupt/TCREUR_Public/021011.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
Friday, October 11, 2002, Vol. 3, No. 202
Headlines
* F I N L A N D *
SONERA CORP: FCA Continues to Examine Deal With Telekolmio
* F R A N C E *
ALCATEL: Radio Systems to Support GSM/UMTS Mobile Communications
ALCATEL:to Expand Q-Tel's GSM/GPRS Network in the Middle East
FRANCE TELECOM: Equant Interconnects Locations of Allianz Group
RHODIA SA: Reduces Debt by EUR190 MM Through Sale of Rhodia-Ster
RHODIA SA: Thierry Breton Resigns From Company Board
RHODIA SA: Selects Kaidara to Streamline Delivery of Service
VIVENDI UNIVERSAL: May Sell Shares of U.S. Entertainment Asset
* G E R M A N Y *
COMMERZBANK AG: Regulator to Investigate Liquidity Rumors
COMMERZBANK AG: S&P Lowers Rating on Residence 2000-1 B Notes
KIRCHGRUPPE: Friede Springer Acquires Axel Springer Stake
SCHNEIDER TECHNOLOGIES: TCL Acquires Schneider for EUR8.2 Million
* I T A L Y *
FIAT SPA: Announces Proposed Plan to Resolve Fiat Auto Crisis
TELECOM ITALIA: Employs IP 'VoIP' With Cisco Systems and Italtel
* N E T H E R L A N D S *
ROYAL PHILIPS: To Dissolve Components Division
* P O L A N D *
GDYNIA SHIPYARD: Considers Unpaid Salaries Small Glitch
* S W I T Z E R L A N D *
CREDIT SUISSE: Fitch Affirms CSFB's 1997-C2 P-T Certificates
* U N I T E D K I N G D O M *
ABERDEEN ASSET: Regulator to Launch Formal Investigation
ABERDEEN ASSETS: Bond Fund Proposes Transferable Rights Offering
ABERDEEN ASSET: Asia-Pacific Fund Proposes Transferable Offering
CABLE & WIRELESS: Ensures Round Round the Clock Availability
CABLE & WIRELESS: Deploys Inktomi Information Retrieval
COLT TELECOM: Highberry Limited to Petition For Administrator
GLOBAL CROSSING: Europeans Pioneer New Internet Protocol
GLOBAL CROSSING: Mr. Pascazi Whines About Exclusivity Again
INDIGOVISION: Announces Initial Results for Year Ended July 31
JOHN LAING: Notification of Major Interests in Shares
KINGFISHER PLC: Notification of Major Interests in Shares
KINGFISHER PLC: Announces Director Shareholding
LIFE COMPANIES: A.M. Best Downgrades Five U.K. Life Companies
NAVAN MINING: Signs Settlement With Enron Metals
PACE MICRO: CEO's Resignation Adds Injury to Business
P&O PRINCESS: Cancels Diamond Princess Cruise Program
ROYAL & SUNALLIANCE: Employs Saba to Train Employees Worldwide
ROYAL SUNALLIANCE: Canada Life Completes Acquisition
SODEXHO UK: Sodexho Alliance Reports Revenues for Fiscal Year
TXU EUROPE: Moody's Downgrades Ratings From Baa1 to Baa3
TXU EUROPE: Parent to Prioritize U.S. Operation
WORLDCOM INC.: Proposes Procedures to Resolve Utilities Dispute
=============
F I N L A N D
=============
SONERA CORP: FCA Continues to Examine Deal With Telekolmio
----------------------------------------------------------
Sonera Corporation has received a decision from the Finnish
Competition Authority according to which the Finnish Competition
Authority continues to examine the deal between H"meen Puhelin Oy
and Sonera Corporation. In the deal, Sonera bought a 40% minority
holding in Telekolmio Oy from H"meen Puhelin Oy, belonging to the
HPO Group. In addition to this deal, HPO and Sonera have agreed
on extensive cooperation, applying for the Finnish Competition
Authority's permission for it.
-We hope the Finnish Competition Authority will issue a final
decision as soon as possible. Sonera, Telekolmio and the whole
HPO Group want to provide competitive services for the customers
of HPO and Telekolmio. Our aim is to combine Sonera's nationwide
services and the HPO Group's regional operations, says Sonera's
Business Function Executive Jaakko Nevanlinna.
HPO and Sonera have agreed on cooperation related to mobile
communications and broadband business, for example, and to
provision of data network services, marketing and product
development.
- The deal on Telekolmio shares is a separate business
transaction and not a prerequisite for HPO's and Sonera's
business cooperation. The cooperation is based on the principle
that H"meen Puhelin and Telekolmio will continue to carry
responsibility for the development of their operations and for
their customers. The agreements are not based on exclusive right,
and both parties are free to cooperate with other partners as
well, says Jaakko Nevanlinna.
Telekolmio Oy is a subsidiary of H"meen Puhelin, serving business
customers. H"meen Puhelin acquired the company's entire share
capital in a deal with ElisaCom Ltd last summer. After the deal
with Sonera, H"meen Puhelin Oy owns 60% of Telekolmio. The
company operates in the H"meenlinna, Lohja and Riihim"ki regions.
Sonera Corporation (HEX: SRA, NASDAQ: SNRA) is a leading provider
of mobile and advanced telecommunications services. Sonera is
growing as an operator, as well as a provider of transaction and
content services in Finland and in selected international
markets. The company also offers advanced data solutions to
businesses, and fixed network voice services in Finland and
neighbouring markets. In 2001, Sonera's revenues totaled EUR 2.2
billion, and profit before extraordinary items and taxes was EUR
0.45 billion. Sonera employs about 7,400 people.
CONTACT: Jaakko Nevanlinna
Business Function Executive
Sonera Corporation
Tel. +358 2040 60662
E-mail: jaakko.nevanlinna@sonera.com
Website: http://www.sonera.com
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F R A N C E
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ALCATEL: Radio Systems to Support GSM/UMTS Mobile Communications
----------------------------------------------------------------
Alcatel (Paris: CGEP.PA and NYSE: ALA), the world leader in
point-to-point microwave radio systems, and O2 Germany, a
subsidiary of mmO2 plc (NYSE: OOM) - a leading provider of
mobile communications in Europe, today announced the signature of
a frame agreement to build up a part of O2 Germany's nationwide
backhaul transmission network infrastructure in Germany.
Alcatel's microwave radio systems will connect the mobile base
stations (Node B) and radio network controllers (RNC) of the O2
Germany third-generation (3G) universal mobile telecommunication
system (UMTS) network. Their implementation will enable 02
Germany to deliver a wide range of broadband and UMTS-based
services quickly and efficiently.
Under the terms of the frame agreement, Alcatel will supply its
plesiochronous digital hierarchy (PDH) low-to-medium capacity
microwave radio systems, and synchronous digital hierarchy (SDH)
radio equipment, suitable for deployment in both urban and
regional areas. The network will be managed by Alcatel's network
management platform to ensure cost-effective traffic control
throughout the UMTS backhaul.
"O2 Germany is happy to have signed this contract and is sure to
fully benefit from Alcatel`s transmisson solution while providing
the highest technical quality and reliability", said Karl-Wilhelm
Rohrsen, CTO O2 Germany.
"We are delighted to cooperate with O2 in Germany in expanding
its network capability to deliver 3G UMTS services in Germany by
placing our turnkey experience and end-to-end microwave solutions
at its service" stated Bruno Piacentini, President of Alcatel's
wireless transmission activities. "As microwave radio systems are
playing a key role in today's backhaul transmission for UMTS
infrastructures, this award further confirms Alcatel's expertise
in this technology."
The Alcatel point-to-point microwave radio solution is perfectly
suited for all new mobile communication standards, also including
general packet radio service (GPRS) and enhanced data GSM
environment (EDGE). Beside its leading edge broadband access
capabilities, it offers a wide range of transmission capacities,
thus representing the preferred technology for connecting Node Bs
over regional, urban and sub-urban areas.
Alcatel's mobile backhaul family includes point-to-point
microwave, high capacity SDH and LMDS radio solutions. It
highlights Alcatel's technology leadership, as well as Alcatel
commitment to helping operators around the world build and
operate cost-efficient 2, 2.5 and 3G mobile networks.
Alcatel's strategy covers all aspects of mobile network
deployment, from radio and core network systems, services
platform and terminals, to a suite of applications, services,
portals and content. That allow operators to migrate efficiently
from GSM to the next generation of value added services,
minimizing the migration costs and protecting their investment.
About mmO2
mmO2 has 100% ownership of mobile network operators in four
countries - the UK, Germany, the Netherlands and Ireland - as
well as a leading mobile internet portal business. All of these
businesses have now been re-branded as O2. Additionally, the
company has operations on the Isle of Man (Manx Telecom). mmO2
was the first company in the world to launch and rollout a
commercial GPRS (or 2.5G) network and has secured third
generation mobile telephony ("3G") licences in the UK, Ireland,
the Netherlands, and Germany. mmO2 has approximately 17.75
million customers and some 14,000 employees, with revenues for
the year ended 31 March 2002 of o4.276 million. Data
represented 14.6% of total service revenues in the quarter ending
30 June
2002.
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.
Note:
The Troubled Company Reporter in its October 3, 2002 issue
reported that Alcatel's unit, Alcatel Canada, recently announced
employee reductions of over 400 positions or about 12% of the
overall workforce. This was to address the continuing economic
slowdown in the telecommunications networking industry.
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:to Expand Q-Tel's GSM/GPRS Network in the Middle East
-------------------------------------------------------------
Qatar Telecom (Q-Tel), the fixed and mobile operator of Qatar,
has selected Alcatel's (Paris: CGEP.PA and NYSE: ALA)
GSM900/1800MHz solutions to expand its GSM/GPRS-based mobile
network nationwide, through the signature of three expansion
contracts for a total value of US $30 million. Thanks to
Alcatel's complete GSM/GPRS end-to-end solution, Q-Tel will
ensure a natural migration path to enhanced mobile data services.
Under these agreements, Alcatel will provide Q-Tel with its
powerful EvoliumT solution including base transceiver stations
(BTS), base station controllers (BSC), mobile switching centers
(MSC), a home location register (HLR), operation & maintenance
controllers-radio (OMC-R) as well as a full range of professional
services. Alcatel will also supply an Intelligent Network (IN)
platform for value-added services and revenue-generating
applications such as prepaid (PPS).
To carry high-capacity traffic amongst the base stations, the
network will utilize Alcatel's microwave radio systems managed by
an efficient and powerful network management platform. Along with
the infrastructure equipment, Alcatel will ensure the entire
management of the project, including network planning and
implementation.
"Mobile communications are developing fast around the Middle
East, and Alcatel is fully committed to provide Q-Tel with best-
in-class mobile network solutions in order to offer their
subscribers unsurpassed quality of service. This will lay the
foundations for the introduction and launch of next generation
multimedia services in the region", said Marc Rouanne, President
of Alcatel's Mobile Networks.
"Alcatel has our trust and we are confident that they will
successfully conduct this new network expansion and upgrade."
added Dr. Nasser Marafih general manager of Q-Tel.
Today, one out of four operators trusts Alcatel for the supply of
its GSM 900, 1800 and 1900 networks in all five continents.
About Q-Tel
Q-TEL is the exclusive telecommunications provider in Qatar until
2013 and is one of the largest public companies in the country
with 1,700 employees. It was successfully launched on the Doha
Securities Market (DSM), Abu Dhabi and Bahrain stock markets in
1998.
Q-TEL's strategic priority is to create value for its
shareholders through superior customer service and new products
and services demanded by the rapidly growing and modernizing
Qatari economy. Q-TEL is undergoing an extensive transformation
program to develop its already advanced telecommunications
network, achieve world-class operational efficiency and seek
international investment opportunities.
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.
About Alcatel's EvoliumT solutions
Alcatel is now the world's fastest growing GSM/GPRS supplier.
Currently, over 110 mobile operators worldwide rely on Alcatel's
EvoliumT GSM/GPRS core and radio solutions. By creating Evolium
SAS, an Alcatel-Fujitsu company, Alcatel clearly reinforces its
position in both mobile infrastructure and mobile Internet.
Evolium SAS combines Alcatel's expertise in GSM, GPRS, and EDGE
as well as in ATM and IP technologies, with the advanced
experience of Fujitsu as supplier of NTT DoCoMo. NTT DoCoMo is
the world's leading mobile communications company with more than
40 million customers. The company provides a wide variety of
leading-edge mobile multimedia services. These include i-modeT,
the world's most popular mobile Internet service, which provides
e-mail and Internet access to over 32 million subscribers, and
FOMA, launched in 2001 as the world's first 3G mobile service
based on W-CDMA.
Alcatel's UMTS solutions are a reality today, with 20 UMTS field
trials networks in operation or planned to be delivered by
Alcatel in Europe and in Asia this year. Alcatel's strategy
covers all aspects of UMTS deployment, from radio access and core
network to terminals. Evolium SAS delivers a radio infrastructure
that is 3GPP-compliant, field-proven and capitalises on Japanese
3G technical and field experience. Alcatel, which played a vital
part in developing the mobile Internet market, in particular
through the successful roll out of GPRS commercial networks
world-wide, has today a timely UMTS offering.
Note:
The Troubled Company Reporter in its October 3, 2002 issue
reported that Alcatel's unit, Alcatel Canada recently announced
employee reductions of over 400 positions or about 12% of the
overall workforce. This was to address the continuing economic
slowdown in the telecommunications networking industry.
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>
FRANCE TELECOM: Equant Interconnects Locations of Allianz Group
---------------------------------------------------------------
Equant, an industry leader in IP and data services to
multinational businesses, has completed a major portion of its
recent multimillion dollar contract to provide Allianz Group an
IP Virtual Private Network interconnecting 100 corporate sites on
five continents.
Allianz Group is a global leader in property and casualty
insurance, life and health insurance, and asset management.
Equant already has integrated 75 Allianz locations with its
customized Equant IP VPN solution, which supports several
corporate applications, including an intranet with a corporate
directory, Lotus Notes and other groupware such as an application
for stock and bond trading. In addition, Allianz is using managed
firewalls, remote access with IPSec encryption as well as project
and service management.
The network will carry all Allianz Group financial reporting to
Munich-based Allianz Holding. Allianz Group selected Equant for
its extensive geographic coverage. Equant offers network
availability in more than 220 countries and territories, while
Allianz has sites in 68 countries across the globe.
The new contract expands the successful relationship begun in
1999 between Equant and Allianz Group, which includes Equant LAN
Access with Dial on Demand routing and Private Dial for mobile
computing.
"We needed a service provider who could give us a seamless,
reliable, secure network around the world," said Markus Schr"der,
manager of Infrastructure Development and Operations of Allianz.
"Equant not only gives us the coverage we needed, but it also
offers the best technology in the market and the service plans to
back it up."
"Equant is very pleased that a prestigious, blue-chip
multinational like Allianz Group is placing its trust in Equant,"
said Michel Picaud, senior vice president of Central and Eastern
Europe, Middle East and Africa, Equant. "We believe an agreement
of this size and scope exemplifies Allianz's confidence in
Equant's stability and our ongoing ability to provide reliable
and secure high-speed connections to leading global companies."
Equant IP VPN offers unmatched geographic coverage with unlimited
any-to-any connectivity in a private and secure network with
guaranteed quality of service. Equant IP VPN is implemented with
transmission speeds of up to 155 Mbps at the highest quality
level. The service is protected by Service Level Agreements for
transit delay, packet loss and jitter. Five classes of service,
the most in the industry, are available for the transport of
different types of applications, including both on-net and off-
net voice and video transmission via IP.
About Equant
Equant (NYSE: ENT) (Euronext Paris: EQU) is a recognized industry
leader in global data and IP network and integration services for
multinational businesses. The Equant network has unmatched
seamless reach, connecting key business centers in 220 countries
and territories, with local support in 191 countries and
territories. Building on more than 50 years of experience in data
communications, Equant serves thousands of the world's top
companies with the industry's most extensive portfolio of managed
network services, including the market-leading IP VPN used by
more than 600 global businesses. Equant, a member of the France
Telecom Group, consistently leads industry surveys in corporate
user satisfaction.
About Allianz
Allianz Group is a global leader in property and casualty
insurance, life and health insurance, and asset management. The
Group has more than 180,000 employees in 68 countries around the
world.
CONTACTS: Equant Investor Relations
Jim Armstrong
Tel: +1 678 346 3754
E-mail: james.armstrong@equant.com
Europe
Ashley Rayfield
Tel:+44 208 321 4581
E-mail:ashley.rayfield@equant.com
France
Isabelle Guibert
Tel: +33 1 46 46 99 53
E-mail: isabelle.guibert@equant.com
Website: http://www.francetelecom.com
RHODIA SA: Reduces Debt by EUR190 MM Through Sale of Rhodia-Ster
----------------------------------------------------------------
Rhodia announced the closing of the divestiture of its entire
88.4% interest in Rhodia-ster, to the Italian Gruppo Mossi &
Ghisolfi. As a result of the sale, Rhodia will reduce its debt by
approximately 190 million euros.
This sale is part of Rhodia's strategy to divest non-core
businesses. As of today, Rhodia has herewith achieved a
substantial portion of its 2002 EUR500 million divestiture
program. This divestiture completes the withdrawal of Rhodia from
the polyester business.
Rhodia announced a first agreement to sell Rhodia-ster to Gruppo
Mossi & Ghisolfi on July 22. Since that time, the deteriorated
economic situation in Brazil has reduced the enterprise value of
Rhodia-ster compared to the conditions at the time, causing
Rhodia to concede new terms. Because of these factors, this
operation will negatively affect Rhodia's net results for 2002 by
about 70 million euros ; results in the second quarter of 2002
reflected an accrual for part of this amount.
Bear Stearns International Ltd has acted as acted as financial
advisor in this transaction.
With sales of US$337 million in 2001, Rhodia-ster is the largest
producer of polyester fiber products and PET resin in Brazil and
South America. Rhodia-ster is listed on the Sao Paulo stock
exchange.
Rhodia is one of the world's leading manufacturers of specialty
chemicals. Providing a wide range of innovative products and
services to the automotive, healthcare, food, cosmetics, apparel,
new technology and environmental markets, Rhodia offers its
customers tailor-made solutions based on the cross-fertilization
of technologies, people and expertise. Rhodia subscribes to the
principles of Sustainable Development communicating its
commitments and performance openly with stakeholders. Rhodia
generated net sales of EUR7.2 billion in 2001 and employs 27,000
people worldwide. Rhodia is listed on the Paris and New York
stock exchanges.
Gruppo Mossi & Ghisolfi is a leading producer of PET Resin in the
U.S., Italy and Mexico and also has packaging and cellulose
acetate divisions. Gruppo Mossi & Ghisolfi had sales of
approximately EUR1 billion in 2001.
CONTACTS: Investor Relations
Marie-Christine Aulagnon
Tel: +33 1 55 38 43 01
Fabrizio Olivares
Tel: +33 1 55 38 41 26
RHODIA SA: Thierry Breton Resigns From Company Board
----------------------------------------------------
Following his appointment as Chairman and Chief Executive Officer
of France Telecom, and in order to devote his full attention to
his new responsibilities, Thierry Breton has decided to resign
from Rhodia's Board of Directors. His replacement will be
nominated at a forthcoming board meeting.
Rhodia is one of the world's leading manufacturers of specialty
chemicals. Providing a wide range of innovative products and
services to the automotive, healthcare, food, cosmetics, apparel,
new technology and environmental markets, Rhodia offers its
customers tailor-made solutions based on the cross-fertilization
of technologies, people and expertise. Rhodia subscribes to the
principles of Sustainable Development communicating its
commitments and performance openly with stakeholders. Rhodia
generated net sales of 7.2 billion euros in 2001 and employs
27,000 people worldwide. Rhodia is listed on the Paris and New
York stock exchanges.
CONTACTS: Investor Relations
Marie-Christine Aulagnon
Tel: +33 1 55 38 43 01
RHODIA SA: Selects Kaidara to Streamline Delivery of Service
------------------------------------------------------------
Kaidara Software, a leading supplier of advanced service and
support solutions, today announced that its Kaidara Advisor
product has successfully completed a pilot deployment at Rhodia
(NYSE:RHA), a world leader in specialty chemicals.
Rhodia chose the Kaidara solution to power its Virtual Advisor
project: to provide superior on-line technical problem solving to
customers and distributors. After a successful pilot phase, the
Virtual Advisor is currently under deployment by the Personal
Care business, a unit of Rhodia's Home, Personal Care &
Industrial Ingredients (HPCII) Enterprise, and is expected to be
live by the end of the year.
Kaidara's service automation solution is expected to enhance and
automate customer interactions, reduce costs and optimize
existing customer-facing resources, while accelerating self-
service access to technical product information and application
advice for Rhodia Personal Care's customers and partners. Rhodia
plans to extend the deployment of the Kaidara Advisor to other
business units, as soon as the solution has fully demonstrated
its success within the Personal Care business.
Driven by a need to provide product information and support for a
highly technical family of specialty chemical products, Rhodia
chose Kaidara's Advisor software to enable delivery of
consistent, validated product advice to chemical engineer
customers through a self-service customer support website.
Kaidara's solution simulates the type of interaction a customer
would have with a PhD-level chemist. Delivered over the Internet,
Kaidara Advisor retrieves only highly relevant product
information and provides assurance that only accurate responses
will be presented. The Kaidara solution, developed to meet
Rhodia's specific needs, serves as a "virtual chemist,"
presenting customers with information that is both personalized
and relevant to their specific interests.
"Continually searching for innovative products, Rhodia is pleased
with the pilot results of our new Kaidara-based solution within
the Personal Care business and believe that it will become an
invaluable component to our world-class customers' research and
the purchasing of Rhodia's products," said Jacques-Benoit Le
Bris, e-Business Director at Rhodia. "Kaidara's advanced
retrieval capabilities ensure that our user community is always
presented with information appropriate to their specific request,
quickly and efficiently. Kaidara demonstrated that Rhodia can
provide customers a high-quality experience, answering detailed
technical questions online with elevated confidence in the
accuracy of the response, while allowing the user flexibility to
state questions in their own terms."
Completing a successful pilot phase, Kaidara was able to meet a
number of strict requirements and unique challenges presented by
Rhodia. Tasked with delivering a solution that went far beyond
traditional search engines and knowledge systems, Kaidara
developed a customized application that acts as an automated
"chemist," responding accurately to highly technical product
application questions. Using the natural language processing and
advanced retrieval technologies of Kaidara Advisor, Rhodia's
customers can present a question in their own choice of terms and
receive accurate information that is appropriate to the specific
request. Rhodia required the Kaidara system to consider technical
product specifications and application information when
responding to inquiries. Rhodia saw that Kaidara Advisor's
ability to provide conceptual context to the user's request and
apply related terms and synonyms, along with tolerance for
misspellings, were key to overcoming the limitations of other
automated service models.
"Rhodia has captured the expertise of its internal staff and
developed a powerful solution that will be available at any hour
of the day to answer highly complex customer questions
accurately," said Michel Manago, CEO of Kaidara. "Rhodia's
commitment to providing superior customer service now extends to
this online customer resource where chemists can find accurate
and relevant product information. Kaidara is proud to have
participated in building this valuable customer resource."
About Kaidara Advisor
Kaidara Advisor is the leading tool for enabling high-value
customer service interactions to answer customer questions,
resolve problems and troubleshoot repairs. Kaidara Advisor brings
expertise forward in an organization to the customer contact
points to reduce service escalations, callbacks and incorrect
repairs. Advanced retrieval technology delivers the correct
response at the first inquiry, based on the user's own choice of
terms. Using Kaidara Advisor, both self-service and assisted
service channels are more effective at responding to customer
requests.
About Rhodia
Rhodia is one of the world's leading manufacturers of specialty
chemicals. Providing a wide range of innovative products and
services to the automotive, healthcare, food, cosmetics, apparel,
new technology and environmental markets, Rhodia offers its
customers tailor-made solutions based on the cross-fertilization
of technologies, people and expertise. Rhodia subscribes to the
principles of Sustainable Development communicating its
commitments and performance openly with stakeholders. Rhodia
generated net sales of EUR 7.2 billion in 2001 and employs 27,000
people worldwide. Rhodia is listed on the Paris and New York
stock exchanges.
About Kaidara
Kaidara is the leading provider of advanced service and support
solutions for manufacturers of complex products. By accelerating
the resolution of customer service requests, Kaidara solutions
enable Global 2000 firms to drastically reduce the cost of
customer service delivery. Kaidara enables immediate and accurate
first-time responses to customer requests through both self-
service and assisted interaction channels. Call center agents,
online service centers, email, and other service channels
correctly direct repairs, answer questions and solve difficult
service problems using Kaidara solutions. Through any interaction
channel, and in any language, Kaidara is the only platform proven
to accelerate the delivery of customer service in the most
complex support environments. Customers include CFM
International, DaimlerChrysler, Ford, Freightliner, General
Motors, Legrand, National Semiconductor, PSA Peugeot Citroen,
Rhodia, Schneider Electric, Solectron-Ericsson, and Wartsila NSD.
Kaidara is located in Los Altos, California and Paris. For more
information, visit www.kaidara.com.
CONTACTS: Investor Relations
Marie-Christine Aulagnon
Tel: +33 1 55 38 43 01
VIVENDI UNIVERSAL: May Sell Shares of U.S. Entertainment Asset
--------------------------------------------------------------
Vivendi Universal may put its U.S. entertainment assets in a
future stock offering in order to attract new American investors,
says CNN citing a source familiar with the company's plans.
Vice Chairman Edgar Bronfman, Jr. reportedly told the Los Angeles
Times of the plan for an initial public offering--a move long
speculated by observers.
The unidentified source, however, said the public offering may
not happen soon due to the low valuations of the media companies,
which include moviemaker Universal Studios.
Financial analysts have speculated that a spin-off of companies
that could include the movie studio, Universal Music Group, theme
parks and cable TV networks like USA may come at least one or
possibly two years still.
Vivendi is raising EUR12 billion from asset sales over the next
18 months in order to reduce debts. S&P, the rating agency
ealier said, the disposals of Telepiu and Canal+ Technologies did
not help much in easing the group's tight liquidity position.
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G E R M A N Y
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COMMERZBANK AG: Regulator to Investigate Liquidity Rumors
---------------------------------------------------------
Germany's financial regulator--reacting to rumors of cash
shortages in the country's banks--plans to investigate whether
rumors are being maliciously spread in order to manipulate stock
prices, says The Scotsman.
The report came after the stock of Germany's third-largest bank,
Commerzbank, dropped to a 10-year low of more than 9% on rumors
of liquidity crisis.
According to CNN, Commerzbank's shares, which have fallen more
than 70 percent from a high of EUR 21.29 in March, were down 6.5
percent to EUR5.65 in mid-morning Frankfurt trading on Monday.
The shares only recovered after BAFin regulator assured that it
had found no basis for concern.
The bank denied rumors of financial crisis after reports came out
that it has sustained large trading losses in credit derivatives.
COMMERZBANK AG: S&P Lowers Rating on Residence 2000-1 B Notes
-------------------------------------------------------------
Standard & Poor's Rating Services said today that it lowered its
credit rating on the class B floating-rate notes issued by
Commerzbank AG under its Residence 2000-1 securitization and
placed the notes on CreditWatch with negative implications.
At the same time, the ratings on the class A-1, A-2, and C notes
were affirmed (see list below).
The downgrade is a consequence of the lowering of the long-term
credit rating on Commerzbank AG to 'A-' from 'A' on Oct. 8, 2002.
The outlook on Commerzbank AG's long-term rating remains
negative.
Unlike in other residential mortgage-backed securitizations,
Residence 2000-1 is a partially funded synthetic residential
mortgage transaction, and Commerzbank AG itself has issued the
notes.
The class B and class C notes are direct unsecured obligations of
Commerzbank AG as issuer. Commerzbank AG is responsible for the
final repayment (subject to the reference portfolio) of the
principal and for the timely payment of interest on these
classes.
Therefore, Commerzbank AG's senior unsecured rating is a
supporting rating, and a lowering of Commerzbank's long-term
rating below the rating on the class B notes may lead to a
further downgrade of the class B notes. Similarly, a lowering of
Commerzbank's long-term rating below the rating on the class C
notes may lead to a downgrade of the class C notes.
The class A-1 and class A-2 notes are secured by 'AAA' rated
Pfandbriefe originated by Hypothekenbank in Essen AG, a related
entity of Commerzbank AG. The Pfandbriefe were affirmed at 'AAA'
on Oct. 8, 2002.
A copy of the related press release on Commerzbank AG, dated Oct.
8, 2002, can be found on RatingsDirect, Standard & Poor's Web-
based credit analysis system, at www.ratingsdirect.com.
OUTSTANDING RATING LOWERED Residence 2000-1 EUR1 Billion
Floating-Rate Amortizing Credit-Linked Notes
Class Rating
To From
B A-/Watch Neg A
OUTSTANDING RATINGS AFFIRMED Residence 2000-1 EUR1 Billion
Floating-Rate Amortizing Credit-Linked Notes
Class Rating
A-1 AAA
A-2 AAA
C BBB
CONTACT: Standard & Poor's
Sean Hannigan, London
Phone:(44) 20-7826-3783
Brian Kane, London
Phone:(44) 20-7826-3530
KIRCHGRUPPE: Friede Springer Acquires Axel Springer Stake
---------------------------------------------------------
Deutsche Bank, which acquired a 40% stake in Axel Springer Verlag
AG, has sold 10% of the shares to the publisher's main
shareholder Friede Springer, says AFX.
Deutsche Bank acquired the EUR667.3 million-worth holdings as
collateral for a loan, which the bank had extended to Kirch
group. The asset was offered for sale because Kirch group failed
to repay the loan.
KirchGruppe succumbed to bankruptcy early this year due to a debt
pile of EUR5 billion or so. The stakes are one of the priced
assets of KirchGruppe, the once mighty German media empire.
According to a previous report, Deutsche Bank will ask the German
Financial Supervisory Authority (BAFin) to be excused from the
obligation to make a takeover bid for all outstanding shares.
Deutsche Bank does not intend to use the voting rights of its
temporary financial investment.
SCHNEIDER TECHNOLOGIES: TCL Acquires Schneider for EUR8.2 Million
-----------------------------------------------------------------
China TV manufacturer TCL, through its subsidiary, Schneider
Electronics GmbH, has agreed to buy the bankrupt German TV maker
Schneider Electronics AG for EUR8.2 million, says Xinhua News.
Included in the package are the production line, inventory and
trademarks of Schneider and Dual Schneider Electronics AG.
Tukheim-based consumer electronics group Schneider Technologies
filed for insolvency in January in a local court in Memmingen
Swabia.
According to a previous TCR-Europre report, Schneider, which
employs around 700 people, had been in trouble for years and came
close to collapse in 1998. The latest crisis came about after the
banks refused to supply any further funds.
=========
I T A L Y
=========
FIAT SPA: Announces Proposed Plan to Resolve Fiat Auto Crisis
-------------------------------------------------------------
The European automobile market remains in the grips of a severe
downturn in demand, which fell approximately 4% in the first nine
months of 2002 with respect to the same period a year earlier.
Although government incentives for the purchase of new vehicles
softened the slump in demand, new car registrations declined by
nearly 11% in Italy between January and September, as compared
with the previous year.
Considering the low rate of growth in the European economy and
uncertainty over its development, substantial changes in these
trends are not foreseen over the short and medium term.
Fiat Auto in particular is suffering from the negative impact of
these unfavorable trends. The market downturn has impacted the
company just at the time it was making a major effort to overcome
problems that caused its sales decline and poor earnings
performance and to become more competitive.
This effort is aimed at:
-- updating its product line to improve its presence in more
profitable market segments, including entry in segments where
Fiat Auto currently does not have a presence
-- increasing sales on European markets, thereby reducing its
dependence on the Italian market
-- increasing sales through more profitable channels.
In view of these goals, Fiat Auto undertook a tough, detailed
plan of action at the beginning of 2002 based on developing new
models, strengthening its sales operations, and cost cutting.
In the area of product innovation, Fiat Auto has a capital
spending and research and development program underway calling
for average annual investments of 2.5 billion euros between 2002
and 2005. These investments are aimed at creating new products,
which will be used to gain a foothold for the company in growing
market segments where it currently does not have a presence. At
the end of this process, Fiat Auto models will have an average
age of less than four years.
Programs for the joint development of common components as part
of the industrial alliance between Fiat Auto and General Motors
will make a significant contribution to competitiveness. In 2005,
50% of components will be shared. The cooperation with General
Motors will also lead to substantial streamlining of their
respective powertrain and transmission output. Introduction of a
new generation of powertrains will start in 2003.
In the area of sales operations, Fiat Auto plans call for
investing 150 million euros a year between 2002 and 2005 to
strengthen its distribution network; increasing sales of vehicles
to fleet customers through the hiring of 200 specialized sales
representatives; focusing on marketing activities, including the
hiring of top-level marketing specialists; and overhauling dealer
network sales and technical assistance processes to build up
customer loyalty.
The planned investments in products and the sales network will
lead to a stronger position in various segments and, at the same
time, greater and more profitable penetration in various markets.
As for costs, Fiat Auto has already undertaken major programs
both to reduce its inventories and contain its operating and
overhead expenses.
The company is also preparing a staff reduction plan that calls
for placement of employees under the long-term unemployment
benefits program, in accordance with the agreement signed with
the Italian Ministry of Labor and Social Policy on July 24, 2002.
In addition, production has been cut back through recourse to the
Government's Layoff Benefits Fund, which is close to being
exhausted in some industrial areas.
***
The large, permanent difference between production capacity and
sales volumes has undermined the effectiveness of the cost
cutting measures taken thus far, severely impacting the
profitability of Fiat Auto.
It is absolutely necessary for the company to return to
profitability in order to finance the development of new
products, reposition itself on the market, and improve its
competitiveness. This will make it possible to launch a positive
cycle of growth that could be further strengthened by recovery in
the domestic and international economy. Thus, a more rigorous
plan for comprehensive cost cuts must be adopted, including
reorganization of management structures.
In order to reduce a major portion of its costs, the company will
request a "declaration of corporate crisis" at Fiat Auto and some
Comau and Magneti Marelli plants, whose activities are closely
linked with the performance of Fiat Auto.
The declaration of corporate crisis will involve laying off
approximately 5,000 Fiat Auto workers and 600 component workers
for one year starting in December 2002, with recourse to the
Government's Special Layoff Benefits Fund ("Cassa Integrazione a
Zero Ore").
Approximately 2,000 other workers will be laid off with recourse
to the Government's Special Layoff Benefits Fund starting in July
2003, when production of the Panda model will be terminated.
Furthermore, at other Group Companies plans envisage long-term
unemployment programs for workers who will, during the period,
become eligible to retirement benefits. Said programs will
involve 300 component workers and 200 employees belonging to
Service companies and Parent Company businesses for a total of
500 people (300 of whom in the Turin area).
Overall, recourse to the Government's Special Layoff Benefits
Fund and long-term unemployment programs will involve
approximately 8,100 Fiat Group employees.
***
Recourse to the Government's Special Layoff Benefits Fund for one
year, starting in December 2002, will be made in the main areas
as follows:
-- in Turin:
for 1,000 Fiat Auto workers and 350 Comau and Magneti Marelli
workers, who represent less than 5% of Fiat Group employees in
the Turin area.
In July 2003, recourse will be made to the Government's Special
Layoff Benefits Fund for another 2,000 employees (1,700 at Fiat
Auto and 300 at Comau Service) due to termination of the
production of the Panda model.
It is expected that production line workers will generally be
able to return to work when production of new models starts and
volumes increase.
In the case of other workers, a plan will be set up to provide
them with training for new jobs and possible additional use of
pre-retirement allowances.
-- in Arese:
for approximately 1,000 employees (about 25% of employees in the
hub and 50% of Fiat Auto employees in the area) upon transfer of
low environmental impact vehicles and experimental production to
Turin. Plans call for employing these workers in new activities
to be locally started up by the buyers of the area; preparation
of a plan to retrain workers for new jobs; and possible
additional use of pre-retirement allowances.
-- in Cassino:
for approximately 1,200 workers, or 25% of employees, who may
return to work during 2003 according to increases in production
of the Stilo Station Wagon.
-- in Termini Imerese:
for all workers at Fiat Auto, Comau, and Magneti Marelli,
totaling approximately 1,800 workers. The resumption of
production will depend on increases in volumes for the Punto
model.
In Pomigliano, the requested state of crisis may involve a few
dozen workers engaged in support activities. The Melfi plant is
not affected by the declaration of crisis.
The industrial reorganization and turnaround plans prepared by
Fiat Auto will allow the company to respond to market trends with
greater speed and flexibility, giving new impetus to the earnings
necessary for development.
***
The situation of Fiat Auto and Fiat Group Companies affected by
automobile market trends was discussed today at a meeting between
the Company and national trade union representatives. The Company
has expressed its willingness to discuss the measures illustrated
in this announcement under the auspices of the Ministry of Labor
and Social Policy, as part of the October review envisaged in the
agreement signed on July 24, 2002.
CONTACT: Fiat Group Investor Relations
Marcello Ledda, +39 011 006 3290
or
Taylor Rafferty London
Bernard Compagnon, +44 (0)20 7936 0400
TELECOM ITALIA: Employs IP 'VoIP' With Cisco Systems and Italtel
----------------------------------------------------------------
As of Wednesday, 100% of Telecom Italia's telephone calls made
between Italy's capital city, Rome, and its industrial capital,
Milan, as well as 50% of all Telecom Italia's International
European telephone calls, travel over the Internet Protocol (IP)
network. This represents over 3 billion minutes of telephone
calls a year running over a Voice over IP (VoIP) solution based
on technology from Cisco Systems and implemented by Italtel.
Operating expenses savings, improved return on assets and the
ability to quickly roll-out new services were the main reasons
that Telecom Italia decided to merge its voice and data networks
onto an IP backbone. The IP network uses MPLS "Class of Service"
features (ie. the ability to prioritize network traffic) to give
different priorities to voice and data so that the highest
quality of service can be ensured. The project will allow Telecom
Italia to save two thirds of its transit operating expenses over
the forthcoming years.
Similar to most incumbent carriers, Telecom Italia has been
running a network based on traditional circuit switched
connections in parallel with another one for data/Internet
traffic based on the Internet protocol (IP). With the newly
deployed Cisco MGX 8000 Voice Gateways and Italtel's Multiservice
Solution (converged VoIP and data services), both voice and
data/Internet traffic will now be based on standard IP protocol.
Telecom Italia will be able to maximize its capital expenditure
more effectively through the newly converged IP data and voice
network. The old circuit switched network used for voice is based
on 66 national transit switches. In contrast, the new Cisco
Systems and Italtel's VoIP solution allows Telecom Italia to
drive all of its transit traffic with only 24 new IP Exchanges.
These IP Exchanges use the flexibility and resiliency of the
IP/MPLS national infrastructure and enable Telecom Italia to
operate the network and launch new revenue generating voice,
video and data services much more easily. Based on the same
concepts, the Telecom Italia Multiservice Pan-European Backbone
supports the integrated transport of both voice (wholesale,
carrier, etc.) and data services, across the main European cities
and North America.
"We chose VoIP because we could save two thirds of our transit
operating expenses and give our customers and shareholders a
better service. By the end of 2003, we estimate that 80% of
Telecom Italia's transit voice traffic will travel over the Cisco
Systems and Italtel Multiservice solution. We chose Cisco Systems
and Italtel because they had the most reliable solution. Cisco
Systems has more experience in IP technology and VoIP than any
other infrastructure company and the partnership with Italtel
provides additional expertise in the switching carrier
environment. Cisco Systems and Italtel also used our existing
infrastructure, which meant we didn't have to reinvent the wheel
and could save money on implementation," said Stefano Pileri,
head of Telecom Italia's domestic network.
Cisco's Vice-President for Technology Solutions for Europe,
Middle East and Africa, Mark De Simone said, "Our work with
Telecom Italia and Italtel demonstrates that a single converged
IP network makes economic sense. It also shows that Cisco
System's and Italtel's VoIP solution scales to meet the needs of
a country(2). Cisco is committed to helping service providers
evolve their business to more efficient and profitable packet
based networks and we are totally focused on providing high
availability and highly resilient 'carrier' class technology."
"The national backbone," -- added Patrizia Grieco, Italtel's
Chief Operating Officer -- "is the consequence of a major
investment by Cisco Systems and Italtel in VoIP technology
started in 2000 that has brought together voice and data
expertise to implement carrier grade solutions, strongly
supported by Telecom Italia, true to its traditions of
innovations in leading edge network solutions and services."
As outlined at the "Technology Day" meeting with the Financial
Community, held on July 19th, Telecom Italia is proceeding with
the roll-out of this project as part of its overall strategy.
Over the next year, Cisco Systems and Italtel will work on the
implementation of local switches connecting the edge of the
Telecom Italia network (telephone lines) to the core. This will
enable local calls to share a single IP network with data traffic
and allow Telecom Italia to benefit from further operating
expense savings.
About Telecom Italia
The Telecom Italia Group is Italy's ICT leader, with more than
27.3 million fixed lines and over 24.1 million mobile lines (39.7
million worldwide) at year-end 2001. The Group is focused upon
leveraging technological innovation, customer loyalty
enhancement, cost control and operating efficiencies. Telecom
Italia is consolidating its leadership position in the domestic
market, as well as its mobile unit, TIM's (Telecom Italia Mobile)
presence beyond Italy. TIM currently has 39.7 million mobile
lines worldwide. In Latin America, TIM is building the first ever
Pan-American GSM network.
In the first half of 2001 domestic wireline and wireless
telecommunications accounted for 73% of turnover. Alongside these
businesses the Group operates in Internet services, satellite
telecommunications, information technology and research and
development. The Group is currently present in 19 countries
through the fixed line and mobile telephony, information
marketing and directories sectors. At year-end 2001 the Group
recorded revenues of 30.8 million euros and a gross operating
result of 13.6 million euros.
About Cisco Systems
Cisco Systems, Inc. (Nasdaq:CSCO) is the worldwide leader in
networking for the Internet. Cisco news and information are
available at http://www.cisco.com.Cisco equipment in Europe is
supplied by Cisco Systems International BV, a wholly owned
subsidiary of Cisco Systems, Inc.
Note to Editors: Cisco, Cisco IOS, Cisco Systems, the Cisco
Systems logo are registered trademarks of Cisco Systems, Inc.
and/or its affiliates in the U.S. and other countries. All other
trademarks mentioned in this document are the property of their
respective owners.
About Italtel
Italtel designs, develops and installs new-generation integrated
multi-service networks (voice/data/video), with a systems
integration capability that ensures tlc fixed and mobile
operators and ISPs infrastructure that is reliable and open to
networking and future technological developments. In the last ten
years, on average, Italtel has invested 13% of its revenues in
innovation. Revenues for 2001 totalled 924,8 million euro. 49% of
employees (1600 people) work in the innovation area. Since 2000,
Italtel shareholders are Clayton, Dubilier & Rice -- the majority
shareholder -- Telecom Italia, Cisco Systems, Advent
International, Brera Capital and the employees.
(1) MPLS is a protocol that enables network traffic (voice,
data and video) to prioritize.
(2) Telecom Italia has over 25 million customers in Italy.
Note: While chairman Marco Tronchetti Provera said it has already
achieved objectives for reducing debts, the company still has
ongoing projects on the property front that is expected to help
in their drive to trim down owings.
CONTACT: Cisco Systems
Emma Bluck
Phone: (33) 1 58046069 (Press)
E-mail: ebluck@cisco.com
Roberta de Tata
Phone: 408/527-6388 (Investor Relations)
or
Telecom Italia
Maurizio Abet
Phone: +3906-3688-2023 - 2066
E-mail: Maurizio.abet@telecomitalia.it
or
Italtel
Alessandro Ferrari
Phone: +39-02-43885427
E-mail: alessandro.ferrari@italtel.it
=====================
N E T H E R L A N D S
=====================
ROYAL PHILIPS: To Dissolve Components Division
----------------------------------------------
Royal Philips Electronics (AEX: PHI, NYSE: PHG) today made public
the conclusions of a previously announced review of its Components
division.
A plan will now be implemented to reduce costs and simplify the
structure and organization of Philips' electronics activities,
dissolving the Philips Components division, and bringing Philips
Optical Storage back to profitability.
The new structure will streamline innovation and create more
value through alignment of related businesses currently lying in
different divisions. As a result, Philips' telecom speaker
activity will be combined with Mobile Display Systems (MDS) and
moved to Philips Semiconductors, offering customers a single
source for complete and integrated solutions for the telecom and
PDA markets. In the same way, certain digital display and
wireless connectivity activities, including the Pronto remote
controls group, will move to Philips Consumer Electronics. Again,
this move will reduce organizational complexity and duplication,
and maximize synergies both for branded and OEM solutions. A
stand-alone new business initiative group will also be formed in
order to give more focus and attention to new high-growth display
opportunities, including Liquid Crystal on Silicon (LCoS)
technology.
A comprehensive restructuring program for Philips Optical Storage
will be carried out to bring the activity back to profitability.
Options are currently being considered and final plans will be
announced in the coming eight weeks. The Optical Storage business
model will be redesigned to better tackle the market, and further
drive the adoption of the DVD+RW standard. Both Philips Optical
storage and the new business initiative group will appear in the
Miscellaneous sector in Philips' financial reporting, as of 2003.
The action plan also includes next steps in Philips' ongoing
portfolio management program to bring focus on digital
technologies and de-emphasize more mature analog businesses. A
small number of businesses, with a combined annual turnover of
approximately EUR 400 million, will therefore be transferred to
the Corporate Investments group for potential sale or merger.
Given the above changes, a divisional structure for Components is
not required, and the organization will be discontinued,
including the closure of the Components headquarters in
Sunnyvale, California, USA, Matt Medeiros, currently CEO of
Philips Components, is unable to relocate, and will therefore
leave the Company as of November 1. Theo van Deursen will lead
the transition process, based in Eindhoven, the Netherlands.
The overall plan is expected to be implemented as of January 1,
2003, and will involve restructuring charges and reorganization
costs totaling approximately EUR 175 million, to be taken in the
fourth quarter.
Commenting on the plan, Matt Medeiros said: "These actions
demonstrate our strategic commitment to innovation, leveraging of
the strengths of Philips' electronics cluster and bringing our
businesses back to sustainable profitability."
"This program will enhance our customer focus even further,
ensuring they can expect more from Philips in terms of innovative
solutions," said Arthur van der Poel, Executive Vice President
and Philips board member responsible for Components. "Our
customers remain our highest priority and we will work directly
with them over the coming period to assure the quality and supply
of our products. We will also work with all affected employees to
make the transition as smooth as possible. Given the current
market conditions, we are accelerating the process to heighten
the cooperation between the businesses in our electronics cluster
and focus on higher growth activities. With this program we will
also deliver considerable cost savings."
Royal Philips Electronics of the Netherlands is one of the
world's biggest electronics companies and Europe's largest, with
sales of EUR 32.3 billion in 2001. It is a global leader in color
television sets, lighting, electric shavers, medical diagnostic
imaging and patient monitoring, and one-chip TV products. Its
184,000 employees in more than 60 countries are active in the
areas of lighting, consumer electronics, domestic appliances,
components, semiconductors, and medical systems. Philips is
quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam
and other stock exchanges. News from Philips is located at
www.philips.com/newscenter
CONTACT: Philips Corporate Communications
E-mail: Jeremy Cohen
Phone: +31 20 59 77 213
E-mail: jeremy.cohen@philips.com
Andre Manning
Phone: +31 20 59 77199
E-mail: andre.manning@philips.com
===========
P O L A N D
===========
GDYNIA SHIPYARD: Considers Unpaid Salaries Small Glitch
-------------------------------------------------------
Shipyard representatives assured that several dozens of Gdynia
Shipyard workers who have been sent on holiday due to a lack of
materials to build ships will be paid soon, according to the
Warsaw Business Journal.
Spokesman Miroslaw Piotrowski guaranteed that the business is
going on normally despite the small glitch and went on to narrate
that the shipyard has completed 12 ships and is in the process of
completing another one. He projected that by the end of 2002 the
shipyard will have built 17 vessels, which all in all are worth
over US$540 million.
He admitted, though, that the firm is short of money and that the
company's own financial resources, and suppliers support its
operation. Out of the 12 ships built by Gdynia only three have
guaranteed financing.
The management has been waiting for US$250 to US$300 million
loans guaranteed by the government.
The Polish government, in September, had offered state-owned PKO
BP banks and BPH-PBK guarantees for a total of US$52 million
loans.
The government said in a statement that it would offer US$25.5
million in loan guarantees for PKO BP and US$26.7 million for
BPH-PBK.
The guarantees for PKO BP are due to expire on April 30, 2003,
and for BPH-PBK, a unit of Germany's HVB Group, on May 31, 2003.
The Infrastructure Ministry had also said the shipyard, which
owes $100 million to banks and a similar amount to suppliers, may
also obtain additional $40 million in guarantees form the Export
Guarantee Fund.
The State Treasury owns 24.8 percent of Gdynia, banks own 25
percent, insurers 15.2 percent, a private investor group 16.3
percent, the city Gdynia 1.4 percent and others 17.3 percent.
=====================
S W I T Z E R L A N D
=====================
CREDIT SUISSE: Fitch Affirms CSFB's 1997-C2 P-T Certificates
------------------------------------------------------------
Credit Suisse First Boston Mortgage Securities Corp., commercial
mortgage pass-through certificates, series 1997-C2, US$73.3
million class F currently at 'BB', and the US$14.7 million class
G currently at 'BB-', have been affirmed and taken off Rating
Watch Negative. The US$57.9 million class A-1, US$322.3 million
class A-2, US$523.3 million class A-3 and interest-only class A-X
are all affirmed at 'AAA'. In addition, the following classes are
affirmed: the US$95.3 million class B at 'AA', the US$80.6
million class C at 'A', the US$95.3 million class D at 'BBB-',
the US$29.3 million class H, and the US$14.7 million class I at
'CCC'. The US$25.7 million class E and the US$36.1 million class
J certificates are not rated by Fitch. In March 2002, Fitch
downgraded classes H and I and placed classes F and G on Rating
Watch Negative due to the large exposure to Kmart and the
expected losses on the specially serviced loans. The rating
affirmations follow Fitch's annual review of the transaction,
which closed in December 1997.
The removal of classes F and G from Rating Watch Negative is
primarily due to the improved outlook on three of the five loans
with Kmart exposure and a clearer estimate of the expected losses
on the specially serviced loans. 14 loans representing 7% of the
overall pool balance are currently in special servicing including
four REOs, two foreclosures and one 60 days delinquent loan. Five
of the loans (4.4%) in special servicing have Kmart exposure.
However, only two of the loans (1.4%) with Kmart exposure are
delinquent; significant losses are expected. No losses are
expected on two cross-collateralized and cross-defaulted hotels
(1.1%) that are being specially serviced while one of the
properties undergoes a change in franchise to Best Western from
Holiday Inn. Three of the REO loans and one loan in foreclosure
are retail properties all of which are expecting losses. One loan
secured by a hotel property is 60 days delinquent. Additionally,
17 loans have DSCRs below 1.00 times (x), representing 4.7% of
the pool balance.
As of the September distribution date the pool's aggregate
balance has been reduced by 6.7% to US$1.37 billion from US$1.47
billion at issuance. Wachovia Securities, the master servicer,
collected year-end (YE) 2001 operating statements for 83% of the
loans by outstanding balance. The comparable weighted average
debt service coverage ratio (DSCR) for these loans is 1.47x for
YE 2001 versus 1.59x at YE 2000 and 1.36x at issuance. Five loans
(11%) have been defeased, including the largest loan in the pool,
MGM Plaza.
Fitch applied various hypothetical stress scenarios taking into
consideration the expected losses on the specially serviced
loans, the increased risk of default on the other loans of
concern, and the defeased loans. Even under these stress
scenarios, subordination levels remain sufficient to affirm the
ratings. Fitch will continue to monitor this transaction, as
surveillance is ongoing.
Note:
Rating agency, Fitch, which changed the outlook on Credit Suisse
Group's 'AA-'Long-term rating to Negative from Stable, earlier
warned that any further deterioration in the performance of the
main operating subsidiary within at least the next year may
downgrade the entity's Long-term rating one-notch.
Fitch explains that changes in the performance of one Credit
Suisse group translate to the financial strength of the others
due to the degree of integration within the group.
===========================
U N I T E D K I N G D O M
===========================
ABERDEEN ASSET: Regulator to Launch Formal Investigation
--------------------------------------------------------
The Financial Services Authority has launched a formal
investigation into Aberdeen Asset Management in relation to the
so-called "magic circle" of trusts investing in each other, says
the Financial Times.
According to the report, FSA's action suggests it has enough
evidence of market abuse to file the case. The regulator
reportedly has handed the evidence to its enforcement division.
FSA earlier conducted informal probes in the matter. In May, John
Tiner, managing director of FSA, announced that FSA was to take
appropriate legal sanction to companies that mis-sell split
trusts by issuing misleading promotional literature.
Fund management companies violating the rules are fined, whereas,
individuals are banned from working in the City.
Fund managers apply the "magic circle" scheme of buying shares in
each other's trusts in order to prop up share prices and boost
management fees. However, those trusts invested in high-risk
sectors, such as technology, media, and telecoms, also creates a
spiral of decline in shares and asset levels as the stock market
fell. These trusts also took on high level of bank debt, says
the report.
According to the Financial Times, more than 40 trusts in the fund
management sector have been force to cut dividends or stop paying
them completely, nineteen have asked for their shares to be
suspended, and seven have called in the receivers. Out of the
seven, which went into receivership, four are managed by
Aberdeen.
Aberdeen is a leading manager of split capital investments, with
19 out of 138 trusts. FSA had reportedly informed Aberdeen of
the investigation and had asked the company for more information
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
ABERDEEN ASSETS: Bond Fund Proposes Transferable Rights Offering
----------------------------------------------------------------
Aberdeen Global Income Fund, Inc. (NYSE: FCO), a closed-end bond
fund, (the Fund) announced that yesterday it filed a registration
statement with the Securities and Exchange Commission in
connection with a proposed transferable rights offering to common
shareholders. The determination of the ratio of rights to common
shares and the applicable subscription price will be made prior
to the effectiveness of the registration statement. The
subscription period is anticipated to begin in late November 2002
and be completed prior to the end of December 2002. The
transferable rights and the underlying shares, when issued, are
expected to trade on the New York Stock Exchange. The Fund cannot
assure that a market for the rights will develop.
The Fund is a non-diversified, closed-end management investment
company. The Fund's investment objective is to provide high
current income by investing primarily in fixed-income securities
denominated in the currencies of Australia, Canada, New Zealand
and the United Kingdom. In March 1999, the Fund's Common and
Preferred shareholders approved a series of amendments to the
Fund's principal investment objective, investment policies and
investment restrictions, including amendments to enable the Fund
to invest up to 35% of its total assets in Global Debt
Securities. The term Global Debt Securities includes securities
of issuers located in, or securities denominated in the currency
of, countries other than Australia, Canada, New Zealand and the
United Kingdom. To date, repositioning the Fund's current
investment portfolio has resulted in the realization of
significant currency losses. The purpose of this offering is to
enable the Fund to increase its investments in Global Debt
Securities and to increase the Fund's net investment income by
taking further advantage of the relatively high level of interest
rates currently available in global debt markets, without
necessitating the realization of such significant currency
losses.
The Fund's Investment Manager is Aberdeen Asset Managers (C.I.)
Limited.
The registration statement relating to the rights and the
underlying shares, when issued, has been filed with the
Securities and Exchange Commission but has not yet become
effective. These securities may not be sold, nor may offers to
buy be accepted prior to the time the registration statement
becomes effective. This communication shall not constitute an
offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities in any State in which such
offer, solicitation or sale would be unlawful prior to
registration or qualification under the laws of any such State.
CONTACT: Aberdeen Asset Management, Investor Relations
Phone: +1-800-522-5465,
E-mail: InvestorRelations@aberdeen-asset.com
Home Page: http://www.aberdeen-asset.com
ABERDEEN ASSET: Asia-Pacific Fund Proposes Transferable Offering
----------------------------------------------------------------
Aberdeen Asia-Pacific Income Fund, Inc. (Amex: FAX; PSE: FAX), a
closed-end bond fund, announced today that it has filed a
registration statement with the Securities and Exchange
Commission in connection with a proposed transferable rights
offering to common shareholders. The determination of the ratio
of rights to common shares and the applicable subscription price
will be made prior to the effectiveness of the registration
statement. The subscription period is anticipated to begin in
late November 2002 and be completed prior to the end of December
2002. The transferable rights are expected to trade on the
American Stock Exchange. The underlying shares, when issued, will
trade on the American Stock Exchange and the Pacific Stock
Exchange. The Fund cannot assure that a market for the rights
will develop.
The Fund is a non-diversified, closed-end management investment
company, whose investment objective is to seek current income. In
June 2001, the Fund's Common and Preferred shareholders approved
a series of amendments to the Fund's principal investment
objective, investment policies and investment restrictions,
including amendments to enable the Fund to invest up to 80% of
its total assets in Asian debt securities. To date, repositioning
the Fund's current investment portfolio has resulted in the
realization of significant currency losses. The purpose of this
offering is to enable the Fund to increase its investments in
Asian debt securities and to increase the Fund's net investment
income by taking further advantage of the relatively high level
of interest rates currently available in Asian debt markets,
without necessitating the realization of such significant
currency losses.
The Fund's Investment Manager is Aberdeen Asset Managers (C.I.)
Limited.
The registration statement relating to the rights and the
underlying shares, when issued, has been filed with the
Securities and Exchange Commission but has not yet become
effective. These securities may not be sold, nor may offers to
buy be accepted prior to the time the registration statement
becomes effective. This communication shall not constitute an
offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities in any State in which such
offer, solicitation or sale would be unlawful prior to
registration or qualification under the laws of any such State.
CONTACT: Aberdeen Asset Management
Investor Relations
Phone: +1-800-522-5465,
E-mail: InvestorRelations@aberdeen-asset.com
CABLE & WIRELESS: Ensures Round Round the Clock Availability
------------------------------------------------------------
New phone system, based on Cable & Wireless Intelligent Network,
cuts engaged tone on national helpline from up to 20 to less than
one per cent
Cable & Wireless, the global telecommunications group, on
Wednesday announced a three-year agreement with Samaritans to
supply the telephone system for its national helpline. During a
one-year pilot, Cable & Wireless has dramatically improved the
availability of Samaritans' telephone helpline by better
distributing calls around the charity's 189 branches in the U.K.
Before Samaritans moved to Cable & Wireless, up to 20 per cent of
callers received an engaged tone, but this has been reduced to
less than one per cent. It is anticipated that Samaritans will
also reduce its operating costs by more than o250,000 over the
next three years through adoption of the new system.
Samaritans receives over 4.8 million contacts a year, of which 93
per cent are made by phone. The Cable & Wireless telephony
platform will ensure that confidential emotional support is
available to those in distress 24 hours a day via a single
national number. As a caller is more likely to get through the
first time, this eases the pressure on volunteers in the busiest
branches.
Cable & Wireless is providing LocalCall telebusiness and indirect
voice services with web based reporting tools to Samaritans using
its U.K.-wide Intelligent Network. The web reporting tools enable
Samaritans to monitor call patterns more closely than before to
ensure resources are available to meet increasing demand. Cable &
Wireless' experience in both voice and IP networks also gives its
customers the option of migrating smoothly to IP, when and if
required.
"It's vital for everyone who calls us in distress to know that
they will be able to access Samaritans' emotional support service
when they need it. The Cable & Wireless solution has increased
the numbers of calls that can be connected to a Samaritans
volunteer straight away, helping us to reach out to even more
people at risk of dying by suicide," said Simon Armson, chief
executive, Samaritans.
"Using our Intelligent Network, we have been able to deliver
tangible business benefits to Samaritans and our web-based
reporting tools enable them to manage the service more
efficiently," said Gareth James, president, sales & marketing,
Europe, Cable & Wireless. "We are committed to supporting their
invaluable work and look forward to a long-standing
relationship."
About Cable & Wireless
Cable & Wireless is a major global telecommunications business
with revenue of over o5.9 billion (US$8.6 billion) in the year to
31 March 2002 and customers in 80 countries. The company consists
of two core and complementary divisions: Cable & Wireless
Regional and Cable & Wireless Global. Cable & Wireless Regional
offers a full range of telecommunications services in 33
countries around the world. Cable & Wireless Global's focus is on
IP (internet protocol) and data services and solutions for
business customers. It has developed advanced IP networks and
value-added services in the US, Europe and the Asia-Pacific
region in support of this strategy. With its financial strength
and the capability of its global IP infrastructure, Cable &
Wireless holds a unique position in terms of global coverage and
services to business customers. For more information about Cable
& Wireless, go to www.cw.com.
About Samaritans
Samaritans is a registered charity, founded in 1953, which offers
24-hour confidential emotional support to anyone in emotional
distress. Samaritans' vision is for a society where fewer people
die by suicide because people are able to share feelings of
emotional distress openly without fear of being judged.
Samaritans believes that offering people the opportunity to be
listened to in confidence, and accepted without prejudice, can
alleviate despair and suicidal feelings. It is the aim of
Samaritans to make emotional health a mainstream issue. The
service is offered by 18,300 trained volunteers and is entirely
dependent on voluntary support.
Across the U.K., you can call Samaritans on 08457 90 90 90 (1850
60 90 90 in the Republic of Ireland) for the price of a local
call. You can also write to Samaritans at Chris, PO Box 9090,
Stirling, FK8 2SA, send an e-mail to jo@samaritans.org or if you
are deaf or hard of hearing use the single national minicom
number 08457 90 91 92 (1850 60 90 91 in the Republic of Ireland).
CONTACT: Katherine Smailes
Cable & Wireless
Tel: +44 (0)20 7315 3564
Email: katherine.smailes@cw.com
Henny Valder
Brodeur Worldwide (for Cable & Wireless)
Tel: +44 (0)1753 790 700
Email: hvalder@uk.brodeur.com
CABLE & WIRELESS: Deploys Inktomi Information Retrieval
-------------------------------------------------------
Inktomi Corp. (NASDAQ:INKT), a leading provider of information
retrieval solutions, announced that Cable & Wireless, the global
telecommunications group, has selected Inktomi to provide
comprehensive information retrieval capabilities across its
global intranet. Delivering on a corporate-wide initiative to
create a seamlessly integrated global organization, Cable &
Wireless has deployed Inktomi(R) Enterprise Search across its
worldwide corporate intranet for an organized and holistic view
of enterprise-wide information from a single search box. Inktomi
Enterprise Search enables Cable & Wireless employees across the
globe to more efficiently find content that is relevant to their
business function and region for increased productivity.
Employing more than 25,000 worldwide, Cable & Wireless is based
in London with 75 percent of its workforce residing outside the
U.K. Additionally, the company provides telecommunications
services to customers in 80 countries. To streamline the exchange
of information throughout its organization, Cable & Wireless
initiated a global intranet project to provide employees with
more efficient access to more than 100,000 documents within its
worldwide corporate intranet. The global intranet project
required a powerful information retrieval solution that was
capable of finding and returning content across many
applications, languages and formats, eliminating the need for
users to perform repeated searches using multiple search engines.
"As we continue to build-out our global intranet, we are
committed to providing employees across the globe with solutions
that help them more easily find corporate resources and
facilitate interactions with customers and partners," said Andy
Caddy, Intranet Program Manager, Cable & Wireless. "After a
thorough evaluation of the leading search vendors, we selected
Inktomi for its proven performance and usability as well as its
ability to easily integrate with our existing mission-critical
applications."
Internal tests at Cable & Wireless found the Inktomi solution to
be faster, more accurate and easier to manage than the
competition and that it best addressed the rigorous requirements
of the company's global intranet. Inktomi Enterprise Search
provides Cable & Wireless with a highly configurable information
retrieval solution that can be deployed rapidly and scale
effectively. Additionally, Inktomi Consulting is working closely
with Cable & Wireless to ensure Inktomi Enterprise Search works
seamlessly with applications already deployed within the
corporate intranet.
"We are pleased that Cable & Wireless has selected Inktomi as the
information retrieval solution for its global intranet," said
Dominic Gattuso, senior vice president and general manager,
Enterprise Search Solutions at Inktomi. "Cable & Wireless' vision
to provide integrated, personalized search results for its
employees worldwide aligns with our strategy to deliver access to
enterprise-wide information through a single search box, helping
users find the content they are seeking more efficiently."
Inktomi information retrieval solutions, including search and
classification technology, have been deployed by thousands of
enterprises, public Web sites, universities and government
entities. The software has a low total cost of ownership due to
its rapid installation, powerful administration tools and open
architecture. Providing unconstrained information access across
the network, Inktomi's natural language search is compatible with
hundreds of file formats, multiple languages and both structured
and unstructured repositories such as databases, portals, content
management systems, collaboration applications, security systems,
file systems and Web servers.
About Inktomi
Based in Foster City, Calif., Inktomi is a leading provider of
information retrieval solutions. More than 2,500 global customers
depend on Inktomi to rapidly find the right information within
applications, portals, databases and networks. Organizations
using Inktomi products and solutions increase profitability and
reduce costs by accelerating customer-facing operations and other
mission-critical business systems. The company that pioneered Web
search, Inktomi is also the market-leading OEM provider of search
services for leading consumer portals, Internet destinations and
e-commerce sites worldwide. Inktomi's customer and strategic
partner base includes such leading companies as America Online,
BEA Systems, Documentum, Hewlett-Packard, IBM, Microsoft, Sun
Microsystems and Yahoo! The company has offices in North America,
Europe and Asia. For more information, visit
http://www.inktomi.com.
Inktomi, and the tri-colored cube logo are trademarks or
registered trademarks of Inktomi Corporation in the United States
and other countries. All other trademarks and company names
referenced herein are the property of their respective holders.
Note:
On September 26, TCR-EU reported that Cable and Wireless chief
executive Graham Wallace may face pressure from shareholders if
his strategic review does not meet expectations.
The company under Mr. Wallace's administration has already issued
four profits warning in 18 months. There is no immediate threat
for his ouster but pressure is already mounting on the issue of
C&W's push into web-hosting data markets and share price falls,
says the report.
C&W's scheduled extraordinary meeting also fueled rumors of job
cuts. Analysts predict that the reductions are likely to hit
Cable and Wireless' loss-making data services and web-hosting
business, Global division.
CONTACT: Inktomi Corp.
Christy Peters, 650/653-3090
E-mail: cpeters@inktomi.com
or
Band & Brown
Inktomi Europe
Dan Thomas, +44 20 7419 7319
E-mail: dan@bbpr.com
COLT TELECOM: Highberry Limited to Petition For Administrator
------------------------------------------------------------
The Board of COLT Telecom Group plc announces that Highberry
Limited (a Hedge Fund) has notified COLT that it intends to
present a petition for the appointment of an administrator to
COLT. There is no basis whatever for Highberry taking this
action.
Highberry alleges that COLT will not be able to repay or
refinance its bonds when they become due between 2005 and 2009.
Highberry claims that its allegation justifies the appointment of
an administrator.
The Board believes that the allegations made by Highberry are
entirely without foundation:
COLT has approximately o1 billion of cash, with no bank debt
COLT's EBITDA is growing and its capital expenditure requirement
is reducing, as the core network construction is now complete
COLT expects to be free cashflow positive during 2005
The Board is confident that COLT will be able to repay or
refinance its bonds when they fall due
The Board will take whatever steps are required to protect the
interests of its stakeholders against this self-serving attempt
to force an unjustified transfer of value from shareholders to
bondholders.
Notes to Editors:
Highberry which is part of The Elliott Group, a New York based
Hedge Fund, has informed COLT that it holds senior notes and
senior convertible notes issued by COLT. Free cashflow is
cashflow after capital expenditure and financing costs.
CONTACT: John Doherty
Director Investor Relations
Phone: +44 20 7390 3681
Tom Buchanan / Jonathan Glass
Brunswick
Phone: +44 20 7404 5959
GLOBAL CROSSING: Europeans Pioneer New Internet Protocol
--------------------------------------------------------
Global Crossing announced that two European customers, XS4ALL, an
innovative broadband Dutch ISP, and El Mundo, a major Spanish
newspaper and electronic publisher, are beginning implementations
of IPv6, the next generation of IP addressing and communications
made possible by worldwide testing of the capability on Global
Crossing's fibre-optic network.
IPv6 addresses an anticipated shortage in the number of Internet
Protocol addresses. Internet Protocol version 4 (IPv4) provides
approximately 4.6 billion IP addresses. With current world
population of 9 billion people, the number of available addresses
could be reserved by as early as 2005. IPv6 provides for billions
of additional addresses. Furthermore, IPv6 is considered
essential for the propagation of handsets associated with 3G
services and applications and home networking, peer-to-peer
services and grid computing.
"As a high-end technology company with the world's only global,
seamless fibre-optic network, we aim to be an IPv6 market
leader," said John Legere, Global Crossing's chief executive
officer. "As the industry moves from IPv6 test phase deployments
to global use, we will be strongly positioned at the forefront of
the industry to provide and advise our customers on how to deploy
the new IP protocol both speedily and effectively."
XS4ALL, an Amsterdam-based ISP providing broadband services and
support to small and medium-sized enterprises, sees an
opportunity with Universal Mobile Telecommunications Service
(UMTS) wireless applications.
"Global Crossing has a state-of-the-art network that delivers
technologically superior service levels, even for the most
demanding traffic," said XS4ALL's Simon Hania, manager of
technology development. "IPv6 offers the flexibility to
interconnect individually accessible intelligent devices with
UMTS applications. As XS4ALL moves from an ISP to a business
services model, IPv6 is key for us and will be one of the
technology developments that will help regenerate the entire
Information and Communications Technology (ICT) industry."
The publishing group El Mundo, based in Madrid, Spain, operates a
highly successful electronic daily news service on the Internet
with more than 15 million monthly visitors. It is currently
performing extensive service testing using IPv6.
"El Mundo is a dynamic electronic publishing site, so we are
continually investigating leading-edge technology," said Ra£l
Rivero, technology director for the El Mundo Group. "IPv6 is just
one of the technologies which we're exploring with Global
Crossing, as we prepare for the future of the Internet. We
appreciate Global Crossing's leadership and geographic reach as
we look to extend our own reach into new markets, including the
increasing number of mobile phone devices and PDAs."
"Ipv6 gives us many distinct advantages," continued Rivero." Any
networked machine can access our content and change this from
native HTML or XML to a more dynamic content. As we need a
standardised security layer with our users, our security is
increased with IPsec. Mobility is improved for readers, and for
our own journalists working anywhere around the planet. And of
course we have a more stable, cleaner backbone because the
address aggregation is higher."
Major vendors have begun shipping commercially supported IPv6
products, and open source systems such as Linux, upon which El
Mundo's site is built, have already incorporated IPv6. Global
Crossing has been an early advocate of IPv6, and earlier this
year announced a free software tool, FreeIPdb, to help ISPs
conserve existing IPv4 address space until IPv6 is deployed
globally.
Editor's note:
The most complete overview on the status of IPv6 can be
downloaded from the IPv6 task force on
http://www.ipv6tf.org/PublicDocuments/IPv6TF-Report.pdf.A Global
Crossing backgrounder is available.
ABOUT XS4ALL
As one of the fastest growing ISPs in the Netherlands, the goal
of XS4ALL is to be the best in Internet access and hosting
services. The company aims to achieve this by being innovative
and launching new products at the right time. Founded by a
community of ex-hackers some 8 years ago, XS4ALL started as the
first ISP for public Internet access in the Netherlands. During
this time, XS4ALL became a preferred service provider for
business customers. Since the introduction of ADSL, XS4ALL has
connected over 60,000 ADSL customers. In 1998, XS4ALL became a
100% subsidiary of KPN Telecom BV. KPN has given XS4ALL the
freedom to develop their own strategy for selecting technology
partners and to develop innovative services. XS4ALL currently
employs more than 150 people. The company today runs a EUR 30
million business with a profit of about EUR 1.6 million before
tax.
ABOUT EL MUNDO
Based in Madrid, Spain, El Mundo is a leading publisher servicing
Spanish and Latin American markets. El Mundo.es was created 6
years ago as a 24x7 electronic service of the El Mundo newspaper
and is a Linux-based site, today the largest in Spain with hits
approaching 150 million monthly. El Mundo.es is a technological
leader, searching for new opportunities with mobile devices and
content delivery. Its Internet area is based upon Cisco and
FreeBSD routers with IPv6 supported on its Linux machines.
About Global Crossing
Global Crossing provides telecommunications solutions over the
world's first integrated global IP-based network, which reaches
27 countries and more than 200 major cities around the globe.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. Global Crossing operates throughout the Americas and
Europe, and provides services in Asia through its subsidiary,
Asia Global Crossing.
Note:
On January 28, 2002, Global Crossing and certain of its
affiliates (excluding Asia Global Crossing and its subsidiaries)
commenced Chapter 11 cases in the United States Bankruptcy Court
for the Southern District of New York (Bankruptcy Court) and
coordinated proceedings in the Supreme Court of Bermuda (Bermuda
Court). On the same date, the Bermuda Court granted an order
appointing joint provisional liquidators with the power to
oversee the continuation and reorganization of the Bermuda-
incorporated companies' businesses under the control of their
boards of directors and under the supervision of the Bankruptcy
Court and the Bermuda Court.
On April 23, 2002, Global Crossing commenced a Chapter 11 case in
the Bankruptcy Court for its affiliate, GT UK, Ltd. On August 4,
2002, Global Crossing commenced a Chapter 11 case in the United
States Bankruptcy Court for the Southern District of New York for
its affiliate, SAC Peru Ltd. On August 30, 2002, Global Crossing
commenced Chapter 11 cases in the Bankruptcy Court for an
additional 23 of its affiliates (as specified in the July Monthly
Operating Report filed with the Bankruptcy Court) in order to
coordinate the restructuring of those companies with its
restructuring. Global Crossing has also filed coordinated
insolvency proceedings in the Bermuda Court for those affiliates
that are incorporated in Bermuda. The administration of all the
cases filed subsequent to Global Crossing's initial filing on
January 28, 2002 has been consolidated with that of the cases
commenced in Bankruptcy Court on January 28, 2002.
Global Crossing's Plan of Reorganization, which it filed with the
Bankruptcy Court on September 16, 2002, does not include a
capital structure in which existing common or preferred equity
would retain any value.
CONTACT: Analysts/Investors Contact
Ken Simril
Tel: +1 310-385-3838
E-mail: investors@globalcrossing.com
Website: http://www.globalcrossing.com/
GLOBAL CROSSING: Mr. Pascazi Whines About Exclusivity Again
-----------------------------------------------------------
Michael S. Pascazi, an equity security holder in Global Crossing
(OTCBB:GBLXQ), filed a renewed objection to the Company's motion
for another extension of the time period in which management has
exclusive right to file a Chapter 11 plan.
Mr. Pascazi, also President of Fiber Optek Interconnect Corp.,
filed a similar objection when the Global Crossing made its first
request. Judge Gerber patiently listened to Mr. Pascazi's
comments in early June and rejected them. Global Crossing's case
is complex and that alone is cause under Sec. 1121 to extend the
Debtors' exclusive period, Judge Gerber ruled at that time.
The Court already has granted an extension to October 21, 2002,
Mr. Pascazi says, "but now the company's motion to the Court
requests an additional extension of the exclusivity period to
protect the debtors if they are compelled to withdraw the Plan,
or the Court does not approve the Plan." The motion points out
that the Plan they have filed contains "closing conditions" which
may not be satisfied.
"Clearly," Mr. Pascazi asserts, "Global Crossing is aware of the
possibility that the Plan it has filed will not be confirmed. Yet
its proposed motion would effectively preclude any other party
from filing an alternate Plan until the Court acts on
management's Plan, whenever that may be."
"Management has had plenty of time to formulate and submit their
best Plan," he added, "and I see no reason why others should be
barred for an indefinite period from proposing competing Plans
for the Court's consideration."
A hearing on the company's motion for extension of exclusivity
will be held October 21, 2002, at 9:45 a.m. at the Bankruptcy
Courthouse, 1 Bowling Green in New York City, the Honorable
Robert E. Gerber presiding.
Mr. Pascazi concludes, "I hope all stockholders, creditors and
others who want to see competing Plans given a chance will attend
the hearing and voice their sentiments."
INDIGOVISION: Announces Initial Results for Year Ended July 31
--------------------------------------------------------------
IndigoVision, the leader in Live Networked Video technology,
announces its results for the year to 31st July 2002.
Financial Highlights
-Revenues up 24% to GBP2.25 million
-Platform product sales up 43% and revenues from licensing and
related activities up 7%
-Gross margin of 51%
-Loss before exceptional items and taxation up from GBP5.9m to
GBP8.9m
-Net cash balances of GBP23.5m
Operating Highlights
During the Year
-Market conditions remained difficult and visibility poor
-4 new licences signed
-Royalty unit shipments of 2.5k units
-1.2k video streams recorded using NVR
Since Year End
-Honeywell (Ademco) licence signed
-Programme for annualised cost saving of GBP4m
-Business review and refocus in progress
Oliver Vellacott, Chief Executive, commented:
'Market conditions remain difficult and visibility of revenues in
this market remains poor. However, we have recognised, and are
already responding to, the economic and market conditions and
their impact on the rate of adoption of its digital technology by
licensees.'
Preliminary Results for the year to 31 July 2002
Chairman's Statement
During the year to 31 July 2002, IndigoVision made progress in
developing its business, but much remains to be done before
profitability is achieved. Whilst the business achieved year-on-
year gains in sales and gross margin, the rate of growth in
overhead exceeded the pace at which its technologies were being
adopted and exceeded the pace of change from analogue to digital
solutions in its markets.
Following my appointment as chairman, the business immediately
commenced a review of its business model. This review is ongoing
and will be completed over the coming weeks. The historic rate
of overhead spend is not consistent with the pace of growth in
the group's nascent markets and we have already announced a cost
reduction programme, much of which has been implemented, designed
to reduce overhead by an annualised GBP4m per annum and to reduce
the rate of cash burn.
The review of the group's business model is designed to establish
a clear route to move IndigoVision from its current position to
profitability. At present, there is good clarity on the
structure of its embryonic markets and good knowledge of the
barriers associated with evolving targeted industries from an
analogue world to an IP-connected world, but insufficient focus
on those areas where profits can most quickly be achieved. It is
expected that consequences of the review will be to disengage
from areas where there is no clear opportunity to derive a
revenue stream with visibility of profitability within 12 months,
and to increase focus on leveraging knowledge more effectively by
concentrating effort on certain specific areas of the supply
chain where IndigoVision products and knowledge can add greatest
value. What has already become clear in this regard is that
IndigoVision must move closer to the end users, in order to
improve visibility and drive revenues.
It is self-evident that this review is taking place against the
background of market conditions where the appetite for technology
innovation is suppressed, but IndigoVision is fortunate to be
targeting its efforts at markets where overall spend is likely to
grow. The key determinant of substantial success remains the
rate at which targeted markets convert from analogue to digital,
but the main task of management is to ensure that IndigoVision is
best placed to derive maximum benefit for shareholders as this
change occurs.
Operating Review
IndigoVision has continued to establish itself as a provider of
high quality technology for digital video systems, focusing
during the year on the Security, Surveillance and Monitoring
industry. Weaker economic and market conditions have slowed
spending on certain technologies and consequently the rate of
growth of the company's licensing activities has slowed
significantly. However platform sales have increased
significantly confirming the strength of IndigoVision's
VideoBridgeTM technology and reflecting the extension of the
product portfolio.
Licenses signed
During the year, a further 4 license agreements were signed with
customers including Radiant Communications Corporation and the US
Navy's Space and Warfare Systems Command agency (SPAWAR).
It was disappointing that further licences were not signed during
the last quarter of the year. This provided a strong signal that
the demand currently experienced by our potential licensees from
their channel is not yet sufficient to drive their need to
license digital video technology. This is a reflection both of
the general economic downturn, the weakening of technology
markets as a whole, and the slow rate of market conversion at
present from analogue to digital. Potential licensees
fundamentally respond to demand in their own
channels. There is therefore an immediate need to drive demand
for digital products in the channel at integrator and distributor
level in order to compel the Original Equipment Manufacturers
(OEMs) to sign up to license deals.
Product announcements
Significant progress was made during the year in the development
and marketing of a complete product portfolio that can be
deployed to serve the Security, Surveillance and Monitoring
sector incorporating IndigoVision's VideoBridge technology and
encompassing networked cameras, networked video recorders and
viewing software which together can form an end-to-end solution.
In particular, the Networked Video Recorder was further developed
and the Control Center application was launched.
IndigoVision's products are increasingly being bid into large
projects within this sector and while the majority of development
work has been performed there is an ongoing commitment to
maintenance and support for our integrators and distributors.
Partner programme
Significant progress has been made in the roll-out of
IndigoVision's Partner Programme, formally launched during the
first half of the year. During 2002, 14 systems integrators and
value-added distributors have joined the programme, contributing
to the strong growth in platform product revenues. Through the
System Integrator (SI) partnerships, IndigoVision is being
brought closer to the end users, and our products are being
introduced to an increasing number of Live Networked Video
projects. During the year, projects won by our partners and
incorporating VideoBridge technology included the implementation
of a live networked video system over the length of the Panama
Canal and a distance-learning project covering the state of
Mississippi.
A significant strategic alliance was also formed with Storagetek,
the global leader in storage solutions. The combination of
IndigoVision's live networked video technology, in particular the
NVR and Control Center (viewing and control application), and
Storagetek's expertise in high-performance digitized data
storage, presents efficient, cost effective mass data storage
solutions for security and surveillance applications. The
alliance allows the two companies to share their sales channels
and to promote each other's products and services.
For the customer, it allows the convergence of the security and
IT functions within an organization and as such, provides
significant potential for growth in the digital video market as
it develops.
Results
Turnover increased by 24% to GBP2.25 million (2001:
GBP1.8million). Revenue again grew across all business areas
despite difficult market conditions. Sales of licensing and
related activities at GBP1.0 million (2001: GBP0.9 million) grew
by 7% and represented 44% of total turnover (2001: 52%). Revenue
from platform sales amounted to GBP1.25m (2001: GBP0.9m)
representing a 43% increase on 2001. Total operating costs
before exceptional items increased to GBP11.1 million (2001:
GBP8.8 million) reflecting the increased investment in sales and
marketing activities, and the continued investment in engineering
to complete a product portfolio that can be deployed for an end-
to-end solution to develop MPEG4 technology. The loss before
exceptional items and taxation increased to GBP8.9 million (2001:
GBP5.9 million). Organisational restructuring designed to reduce
overhead and cash burn, resulted in an exceptional charge of
GBP1.4m, including a provision of GBP1.1 million, with a
resultant increase in the loss before taxation for the year to
GBP10.3 million (2001: GBP5.9 million).
Revenues
A total of 4 new licence agreements (2001: 5) were concluded over
the year and in addition, 2 existing licensees extended their
licence to encompass a broader range of technology. All of the
new agreements provided revenue contributions through an up-front
fee followed by further income from a combination of royalties,
development consultancy and maintenance of licensed software.
Royalties were earned on shipment of 2,540 product units (2001:
31). The timescale to convert new customers to licensees has not
shortened as expected and therefore the rate of growth in revenue
from licensing and related activities slowed during the year.
Sales of platform products have shown promising growth of 43%
providing a strong indication of an increasing take-up of
IndigoVision's digital video products. The company has continued
to focus on the Security, Surveillance and Monitoring market so
that the majority of platform sales were made into channels for
this key sector. The number of units shipped increased to 2,991
product units (2001:1,730). The final quarter of the year
confirmed the increasing adoption of IndigoVision's Networked
Video RecorderTM (NVR) contributing a record quarterly total of
video streams recorded using NVR and bringing the total for its
first full year of shipment to 1,188 recorded streams (2001: 98).
The revenue contribution from both North America and Asia rose
during the year to 46% and 20% respectively (2001: 40% and 16%
respectively) reflecting the increased investment in overseas
sales and marketing activities. European revenues fell by 13% as
a result of no new licences being signed during the year.
Gross Profit
Gross profit as a percentage of sales was up 2 points on 2001
margin of 57% to 59%, before additional stock provisions made at
year end. The lack of new licences in the last quarter reduced
the overall margin from its higher level at the time of our third
quarter results. The reported gross margin was further hit by
stock provisions made at year end for excess inventory, reducing
it to 51% for the year as a whole.
Operating Costs and Loss Before Tax
During the year, further investment was made in research and
development with expenditure before exceptional items increasing
by 63% to GBP3.3 million (2001: GBP2.0 million) and headcount
increasing by 36% to 68 at year end (2001: 50). Sales, marketing
and general and administrative costs increased by 15% to GBP7.8
million before exceptional items (2001: GBP6.8 million).
Marketing expenditure and staffing grew to support product
marketing and new product launches globally including a strong
presence at key trade shows in the Security, Surveillance and
Monitoring market.
After net interest of GBP1.1 million (2001: GBP1.9 million), but
before exceptional charges for restructuring of GBP1.4 million,
the loss before taxation was GBP8.9 million (2001: GBP5.9
million).
Balance Sheet
Stock levels at year-end were GBP0.8 million (2001: GBP0.4
million) reflecting the actual and anticipated growth in platform
sales during the second half of the year. Collection of debtor
balances has continued to improve with debtors at year-end
totaling GBP0.9 million (2001: GBP1.2 million). The company's
balance sheet remains strong with net cash balances of GBP23.5
million (2001: GBP32.2 million).
Organisation
During the year, further investment was made in increasing the
headcount from 98 at the start of the year to 124 at year-end.
This allowed the company to increase its sales and marketing team
to extend our presence in the U.S. and Japan to firmly establish
the IndigoVision and VideoBridge brand names. In research and
development, the headcount grew by 36% allowing the group to
extend its VideoBridge based product portfolio and to develop
MPEG4 video technology during the year.
The downturn experienced towards the end of the year in the
economy, and the technology sector in particular, had a negative
effect on the results for the year. Following the progress
already made in improving the sales and marketing functions in
the third quarter, and the completion of our scheduled
development work during 2002, a full internal restructuring
programme was announced on 30 July 2002. This programme was
designed to bring the overhead and cash burn back to a level more
appropriate for IndigoVision's stage of development and the
conditions being experienced in its markets. Consistent delivery
of quality products and solutions to its integrators,
distributors and licensees will continue.
Board Changes
During the year, Sergio Tansini stepped down as Chief Operating
Officer in April 2002. Alan Bennie stepped down as Finance
Director in July 2002 and was replaced by Alice Patrick.
Lord Young of Graffham was appointed as Chairman, but resigned in
September 2002 as a result of increasing pressure from other
business commitments. David Sibbald was appointed a non-
executive Director in March 2002 and non-executive Chairman in
September 2002. Paul Strzelecki resigned as a non-executive
Director in October 2002.
Outlook
Market conditions remain difficult and visibility of revenues in
this market remains poor. However, IndigoVision has recognised,
and is already responding to, the economic and market conditions
and their impact on the rate of adoption of its digital
technology by licensees. Despite disappointing revenue growth
overall, our results for 2002 confirm that the strength of our
core technology is recognised, and shipments of our platform
products continue to grow.
To reinforce our position as a leading provider of live networked
video technology, the group has committed to working more closely
with its new partners at system integrator and distributor level
to drive demand from the end users. We will work together with
the integrators on key projects in the Security, Surveillance and
Monitoring market, giving us closer contact with the ultimate
customer and allowing us to introduce VideoBridge platform
products directly as part of a complete solution.
The restructuring programme announced on 30 July 2002 and largely
implemented in the first two months of the current financial year
has reduced headcount by approximately one third. This leaves
IndigoVision with an organisation able to increase its focus and
to maximise return on the development and marketing investments
made during 2002. Whilst it has proved difficult to sell new
licences in these market conditions, the steps already taken,
together with a refocus on pushing platform products down to end
users, will place the group in a much stronger position to win
new business and revenues as the switch from
analogue to digital video systems accelerates.
To view consolidated profit and loss account (unaudited) for the
year ended 31 July 2002, refer to the this link:
http://bankrupt.com/misc/IndigoVision2.pdf
CONTACTS: Oliver Vellacott
CEO IndigoVision Group plc
Alice Patrick
CFO IndigoVision Group plc
Tel: +44 (0)207 831 3113
Tel: +44 (0)131 475 7200
James Melville-Ross
Financial Dynamics
Tel: +44 (0)207 831 3113
JOHN LAING: Notification of Major Interests in Shares
-----------------------------------------------------
Name of company: John Laing Plc
Name of shareholder having a major interest: R. O'rourke & Son
Limited
Name of the registered holder(s): R. O'rourke & Son Limited
Number of shares/amount of stock acquired: 5,500,000
Percentage of issued class: 3.14
Class of security: ordinary 25p
Date company informed: October 8 2002
Total holding following this notification: 5,500,000
Total % holding of issued class following this notification: 3.14
Name of contact and telephone number for queries:
Roger Miller
Tel: 020 7647 8808
Name and signature of authorised company official responsible for
making this notification: Roger Miller
Date of notification: October 9 2002
KINGFISHER PLC: Notification of Major Interests in Shares
---------------------------------------------------------
Name of company: KIngfisher Plc
Name of shareholder having a major interest: Morgan Stanley
Securities Limited
Percentage of issued class:4.15%
Class of security: ordinary shares of 13.75p each
Date of transaction: October 7 2002
Date company informed: October 9 2002
Total holding following this notification: 107,466,145 shares
Total % holding of issued class following this notification:
4.15%
Name of contact and telephone number for queries:
Julie Wilson
Tel: 020 7725 5853
Name of authorised company official responsible for making this
notification: Julie Wilson
Company Secretarial Assistant
Date of notification: October 7 2002
KINGFISHER PLC: Announces Director Shareholding
-----------------------------------------------
Kingfisher plc became aware on 9 October 2002 that certain
Directors of Kingfisher plc, whose names are set out below,
technically became interested on that date in 217 Kingfisher plc
ordinary shares of 13.75p each by virtue of the QUEST being
allotted the shares and the Directors being potential
beneficiaries under the QUEST.
Kingfisher plc also became aware on 9 October 2002 that each of
the below-named Directors of Kingfisher plc technically ceased to
be interested on that date in 217 Kingfisher plc ordinary shares
of 13.75p each by virtue of the QUEST transferring the shares to
employees.
Note:
For Companies Act purposes, certain Directors of Kingfisher plc,
whose names are set out below, together with all employees of the
Company, are deemed to have a technical interest in the shares
held in Kingfisher's QUEST. The interest ceases when shares are
transferred to individuals who exercise their employee ShareSave
scheme options.
Directors:
Sir Geoffrey Mulcahy
Mr William Whiting
Mr Ian Cheshire
Ms Helen Weir
M. Jean-Noel Labroue
CONTACT:Catherine Callaghan
Group Share Schemes Manager
Tel: 020 7725 5830
LIFE COMPANIES: A.M. Best Downgrades Five U.K. Life Companies
-------------------------------------------------------------
A.M. Best Co. has downgraded the financial strength ratings of
five U.K. life companies. (See list below.)
These actions follow A.M. Best's concerns of further
deterioration in the financial strength of these companies
largely as a result of continued pressures from the downfall in
equity markets.
These ratings are solely based on public data and have not
factored capital raising expectations. However, mitigating
elements such as the long-term nature of the life assurance
business, the implicit and explicit reserves inherent in the
statutory provisions, orphan estate and possible turnaround of
inadmissible assets have been factored.
A.M. Best will continue to monitor any progress on the
realization of capital made available to the affected companies'
life funds and any other issues that could affect the ratings.
The following companies' ratings have been downgraded:
Previous New
Rating
Rating
Pearl Assurance plc B+ pd B pd
Royal London Mutual Insurance Society Ltd B+ pd B pd
Sun Life Assurance Society plc B++ pd B pd
Winterthur Life U.K. Ltd B+ pd B-
pd
Britannic Assurance plc B+ pd B pd
A.M. Best assigns public data and interactive ratings to over 66
U.K. long-term and composite insurers.
The analysis behind public data ratings seeks to incorporate all
relevant information available in the public domain on the
insurer. As with A.M. Best's interactive rating process, public
data ratings incorporate a review of balance sheet strength,
operating performance and business profile. In addition, A.M.
Best's public data rating analysis reflects its knowledge of the
company's peers, the market sector(s) in which it operates and
the strategic and financial outlook for those sectors.
A.M. Best Co., established in 1899, is the world's oldest and
most authoritative insurance rating and information source. For
more information, visit A.M. Best's Web site at www.ambest.com.
CONTACT: A.M. Best
Public Relations:
Jim Peavy
Phone: 908/439-2200, ext. 5644
E-mail: james.peavy@ambest.com
or
Rachelle Striegel
Phone: 908/439-2200, ext. 5378
E-mail: rachelle.striegel@ambest.com
or
Analysts:
Annie Tay
Phone: +(44) 20 7626 6264
E-mail: annie.tay@ambest.com
or
Andrea Dobson
Phone: +(44) 20 8579 1091
E-mail: andrea.dobson@ambest.com
NAVAN MINING: Signs Settlement With Enron Metals
------------------------------------------------
Navan announces that it has signed an agreement with Enron Metals
and Commodities Corp ('EMCC') in respect of the full and final
settlement of all amounts due by the Navan group to EMCC.
The agreement, which is subject to the final approval of the
bankruptcy court for the Southern District of New York, provides
for a cash payment to EMCC of US$2 million, which has been placed
in escrow pending the court approval and the issue and allotment
to EMCC at par
of a number of new ordinary Navan shares of 15p. The number of
New Navan shares will be calculated in accordance with a formula
based on the average closing midmarket price of Navan's shares on
the three trading days immediately prior to the date of the court
approval.
The maximum number of New Navan shares, which will rank pari
passu in all respects with the Company's existing issued shares,
is capped at a value of US$3.4m, with a minimum value of US$2m.
For illustration, at an exchange rate of US$1.56 to GBP1, the
number of New Navan shares will be a maximum of 14,529,914 and a
minimum of 8,547,008 representing respectively 6.0% and 3.62% of
Navan's enlarged issued share capital. EMCC has agreed that it
will not dispose of the New Navan Shares for a period of six
months from the date of the court approval.
It is expected that the court approval will be received prior to
the end of November 2002 and a further announcement will be made
at that time.
Note:
The Troubled Company Reporter gathered that Navan Mining has
recorded a pre-tax loss of GBP4.47 million in 1999 and another
pre-tax deficit of GBP4.0 million the following year. In 2001,
the company's losses plummeted to GBP57.5.
The company attributes its decrease in profits to difficult
trading conditions, depressed metal prices and delays in the
group's achievement of production targets.
The group's Spanish operations were suspended in December 2001.
The company wrote off its investments in Spain and restructured
its financial position as its chief executive resigned last year.
CONTACTS: Laurie Marsland
Chief Executive
Tel: 07775 501 181
Simon Olsen
Acting Chief Financial Officer
Tel: 01256 353 312
Keith Irons
Bankside Consultants
Tel: 020 7444 4155 / 07885 356 639
PACE MICRO: CEO's Resignation Adds Injury to Business
-----------------------------------------------------
The resignation of Malcolm Miller, the chief executive of Pace
Micro Technology is seen as another blow to the company, which
has been hit by the collapse of ITV digital, NTL's bankruptcy
proceedings and a new deal with BSkyB.
Dresdner Kleinwort Wasserstein analyst James Healey said: "I tend
to see this as a bit of a blow, to be honest."
Mr. Healey said that although Mr. Miller has not been popular
with investors, he is well respected in the firm's operations.
The chief executive, who served Pace Micro for five years, is set
to leave the company on January 1 next year.
Meanwhile, Finance director John Dyson insisted that Miller's
decision to leave was not related to the firm's current problem.
Mr. Dyson admitted that the company is suffering from the crisis
in industry; but he also believes that a recovery may still come
in the future.
UK's largest manufacturer of set-top boxes for digital TV has
issued six profit warnings this year. Its shares plunged 96%
during the year. The firm is now valued at GBP32 million.
Pace makes the boxes that convert cable, satellite and
terrestrial digital signals for analogue TVs. It is also the main
supplier of boxes for the BBC's new 30-channel digital TV
venture, Freeview, which will be launched on 30 October.
P&O PRINCESS: Cancels Diamond Princess Cruise Program
-----------------------------------------------------
As previously reported, the Diamond Princess, which is currently
under construction in Mitsubishi Heavy Industries' Nagasaki
shipyard, suffered a major fire earlier this month.
Mitsubishi Heavy Industries and P&O Princess Cruises have now had
discussions following a preliminary assessment of the damage.
Both parties confirm that they wish to continue with the
construction of the Diamond Princess although there will be a
significant delay to the scheduled delivery date.
Princess Cruises will be announcing the cancellation of the
cruise program of the Diamond Princess for the period to February
28 2004. It will take the yard several weeks to complete the
examination of the ship and to determine the full extent of the
damage and agree a final delivery date.
P&O Princess reconfirms that the company has in place contractual
arrangements with the yard and insurance policies that it
believes will be sufficient to ensure that there will be no
significant economic impact on the Group nor any adverse impact
on its 2003 earnings.
P&O Princess Cruises plc is a leading international cruise
company with some of the strongest cruising brand names: Princess
Cruises in North America; P&O Cruises, Swan Hellenic and Ocean
Village in the UK; AIDA and A'ROSA in Germany; and P&O Cruises in
Australia. It is a leading provider of cruises to Alaska, the
Caribbean, Europe, the Panama Canal and other Exotic
destinations. The current complement of 19 ships and two river
boats offering 31,130 berths is set to grow in the next two years
with six new ocean cruise ships and two river boats on order.
P&O Princess Cruises has approximately 20,000 employees worldwide
and carried over one million passengers in 2001, generating a
revenue of approximately US$2.5 billion (approximately o1.7
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
Tel: +44 20 7805 1214
Tel: +44 7730 732015
ROYAL & SUNALLIANCE: Employs Saba to Train Employees Worldwide
--------------------------------------------------------------
Saba (Nasdaq: SABA), the leading provider of Human Capital
Development and Management (HCDM) solutions, today announced that
the global insurer, Royal & SunAlliance, has gone "live" with the
first stage implementation of Saba's e-learning solution. The e-
learning platform will provide training to around 50,000
employees in Royal & SunAlliance offices throughout the world.
The implementation of Saba3 Release4 took six weeks to complete
and is now ready to be rolled out to all of Royal & SunAlliance's
global offices.
Andy Wooler, e-learning practice leader at Royal & SunAlliance
said the process of integration had been extremely successful due
to a cooperative effort between both companies. "As promised, the
Saba Rapid Deployment Package took six weeks to implement and the
reaction to the systems so far from our individual offices has
been really positive," said Mr. Wooler.
Royal & SunAlliance is acknowledged as a leader in promoting and
utilizing e-learning and global knowledge sharing across its
international organization. Recognizing the value of investing in
its global learning requirements, Royal & SunAlliance was also
able to see the immediate benefits Saba's six-week rapid
deployment could provide in helping the company meet government
regulations.
"Our business needs to comply with regulations from the General
Insurance Standards Council in the U.K. and with the Financial
Services Reform Act in Australia to prove the competency of our
people. Saba allows us to not only prove these competencies, but
track and link competencies to job profiles and integrate them
into Royal & SunAlliance's total learning framework," Mr. Wooler
said.
Royal & SunAlliance is using the Saba platform to quickly convert
its existing training content into an online training format.
This allows Royal & SunAlliance to ensure knowledge consistency
in a number of core competencies critical to the business such as
underwriting, claims handling and customer service.
"The speed of implementation of Saba solutions assures rapid
return on investment for our customers. We look forward to a
long-standing relationship with Royal & SunAlliance and the rapid
completion of future phases," said Saba President and CEO, Geno
Tolari.
About Royal & SunAlliance
Royal & SunAlliance is one of the world's leading global
insurers. The Group has operations in over 40 countries and
provides cover in more than 130. It is also one of the world's
oldest insurance companies, tracing its roots back to 1710. Today
the Group has around 50,000 staff worldwide, serving over 20
million customers.
About Saba
Saba is the leading provider of Human Capital Development and
Management (HCDM) solutions. Saba offerings include an integrated
Internet-based platform to manage learning, content, performance,
talent, and collaboration; and related professional services.
Organizations around the world rely on the Saba platform to
ensure that their customers, partners, and employees have the
knowledge and skills required to successfully execute business
initiatives.
Among the Global 2000, Saba customers include Alcatel, Telecom
Italia, DaimlerChrysler, EDS, Procter & Gamble, Medtronic,
Anheuser-Busch, Ford Motor Company, Continental Airlines, General
Electric, Cisco Systems, EMC Corp., i2 Technologies, and VERITAS
Software. The Saba ecosystem of partners includes Allos, Buck
Consultants and Mellon HR Solutions, Cisco, Deloitte Consulting,
PWC Consulting, a business of PricewaterhouseCoopers, and
SchlumbergerSema.
Saba recently earned the coveted position as the vision and
execution leader in a leading analyst firm's 2002 LMS "Magic
Quadrant." Founded in 1997, Saba is headquartered in Redwood
Shores, California, with offices worldwide. For more information,
please visit www.saba.com or call (877) SABA-101 or (650) 779-
2791.
NOTE: Saba, the Saba logo, and the marks relating to other Saba
products and services referenced herein are either trademarks or
registered trademarks of Saba Software, Inc. All other trademarks
are the property of their respective owners.
Note:
On September 27, TCR-Europe reported that insurance company Royal
& Sun Alliance is planning to make between 150 and 200 employees
redundant. The reduction came despite the company's effort to
prevent job losses by redeploying staff. Royal & Sun Alliance
made adjustments in its operating structure in order to improve
efficiency and support plans for the growth of its commercial
arm.
CONTACT: Courtney Ostermann of Saba Software, Inc.
Phone: +1-650-581-2501
E-mail: costermann@saba.com
Home Page: http://www.saba.com
ROYAL SUNALLIANCE: Canada Life Completes Acquisition
----------------------------------------------------
Canada Life Financial Corporation (Canada Life(TM)) announced it
has completed the acquisition of the group life and long-term
disability business from Royal & SunAlliance Insurance Group plc.
Effective October 1st, Royal & SunAlliance reassured its group
insurance risks with Canada Life who will administer the
insurance. Formal transfer of the business will occur after court
approval, expected in mid-2003.
The acquisition, first announced on July 29, 2002, has
established Canada Life as the market leader in the United
Kingdom's group life business, the country's second largest group
income protection (disability) insurance provider and first among
all U.K. group life insurance suppliers.
The business was purchased for 60 million pounds sterling
(approximately C$150 million) in cash. The transaction is
expected to be neutral to earnings for the rest of 2002 and
accretive to earnings by 10 to 13 cents per share in 2003.
Approximately 180 Royal & SunAlliance employees retained by
Canada Life continue to work in Bristol, the new, permanent
location of the company's expanded U.K. group operations.
The acquisition was pursued as part of Canada Life's strategic
plan to build on its existing strengths in its core U.K. markets,
which are expected to deliver strong shareholder and customer
value in areas of proven expertise.
About Canada Life
Canada Life Financial Corporation, established in 1999, is the
holding company for The Canada Life Assurance Company and is
traded on the Toronto Stock Exchange under the symbol "CL" and
the New York Stock Exchange under the symbol "CLU". The Canada
Life Assurance Company, founded in 1847 as the first domestic
life insurance company in Canada, has total assets under
administration in excess of $65 billion. Headquartered in
Toronto, the Company operates in Canada, the United States, the
Republic of Ireland, the United Kingdom, Brazil, Germany, Hong
Kong and the Caribbean.
After commencing operations in the United Kingdom in 1903, Canada
Life now operates through its wholly owned subsidiary, Canada
Life Limited.
CONTACT: Ardyth Percy-Robb, Corporate Communications Vice-
President,
Phone: (416) 597-1440, Ext. 6104
E-mail: ardyth--percy-robb@canadalife.com
Brian Lynch, Vice President, Investor Relations
Phone: (416) 597-1440, Ext. 6693,
E-mail: brian--lynch@canadalife.com
SODEXHO UK: Sodexho Alliance Reports Revenues for Fiscal Year
-------------------------------------------------------------
Sodexho Alliance's (NYSE:SDX) (EURONEXT:EXHO.PA) consolidated
revenues for the year ended August 31, 2002 rose by 5.6% to 12.6
billion euros.
The increase broke down as follows:
(i) 1.9% from organic growth.
(ii) 6.2% from acquisitions.
(iii) -2.5% from the currency effect.
Excluding the UK, organic growth was 2.4%.
- Food and Management Services: 11.6 billion euros in
revenues
Food and Management Services generated 92% of consolidated
revenues, with organic development accounting for 1.7% of the
business's growth for the year. Revenues by region were as
follows:
-----------------------------------------------------------------
Region Revenues Organic growth
in millions of euros
-----------------------------------------------------------------
North America 5,995 0.4%
-----------------------------------------------------------------
Continental Europe 3,413 4.9%
-----------------------------------------------------------------
U.K. & Ireland 1,674 -1.0%
-----------------------------------------------------------------
Rest of the World 566 6.5%
-----------------------------------------------------------------
- In North America, revenues ended the year down 8%, compared
with a 10% decline in the first half alone. In all segments, in
America as in the rest of the Group, the Group's strategy is to
increase per-site revenues and to win new clients. This strategy
has begun to produce results, such as the contract with the
United States Marine Corps, which took effect on October 1, 2002.
- In Continental Europe, organic revenue growth amounted to
4.9%. France, Italy, the Netherlands, and the countries of
Central and Eastern Europe all continued to enjoy growth, while
broadening their range of services.
- In the United Kingdom and Ireland, revenues declined over the
previous fiscal year in the Business & Industry segment as a
result of lower hospitality spending, a reduction in the
employment levels by some of our clients, and weaker retention
levels at the end of the previous fiscal year. The trend in
revenues also takes into account the sale of Lockhart in May
2002.
- In the Group's other businesses, revenues and organic growth
were as follows:
----------------------------------------------------------------
Business Revenues Organic growth
in millions of euros
----------------------------------------------------------------
Remote Sites 590 1.0%
-----------------------------------------------------------------
Service Vouchers and Cards 279 18.8%
-----------------------------------------------------------------
River and Harbor Cruises 95 - 13.4%
-----------------------------------------------------------------
- In Remote Sites, the slowdown in organic growth resulted
mainly from the mid-year completion of two large infrastructure
construction projects in Latin America, involving a mine and an
oil drilling site. Sodexho has been awarded Food and Management
Services contracts, with these same clients, for the operational
phase which will get underway in 2002/2003.
- For the fourth year in a row, Service Vouchers and Cards
reported organic growth of nearly 20%, confirming the business's
momentum and strong growth potential.
We expect consolidated revenues to grow by an organic 5-6% in
fiscal year 2002/2003, roughly three times faster than in fiscal
2001/2002. We are therefore gradually returning to the rate of
organic revenue growth enjoyed in earlier years.
About Sodexho Alliance
Founded in Marseille in 1966 by Chairman and Chief Executive
Officer Pierre Bellon, Sodexho Alliance is the world's leading
provider of food and management services. With more than 314,000
employees on 24,300 sites in 72 countries, Sodexho Alliance
reported consolidated sales of 11.9 billion euros for the fiscal
year that ended on August 31, 2001. The Sodexho Alliance share
has been listed since 1983 on the Euronext Paris Bourse, where
its market value totals 2.9 billion euros. The Sodexho Alliance
share has been listed since April 3, 2002, on the New York Stock
Exchange.
Note:
TCR-Europe recently reported that the shares of French catering
giant Sodexho Alliance lost nearly one-third of its stock market
value on reports of accounting irregularities and management
troubles of its U.K. operations.
The announcement that the company will cut its year profit
forecast by up to 14% sent the shares down to six-year lows
according to the report.
CONTACT: Sodexho Alliance
Jerome Chambin, Tel: +33 130 85 74 18 (Media
Relations)
Fax: +33 130 85 52 32
jerome.chambin@sodexhoalliance.com
Jean-Jacques Vironda, Tel: +33 130 85 72 03 (IR)
Fax +33 130 85 51 81
jeanjacques.vironda@sodexhoalliance.com
TXU EUROPE: Moody's Downgrades Ratings From Baa1 to Baa3
--------------------------------------------------------
Moody's Investors Service placed the senior unsecured debt
ratings of TXU Europe Limited, and the issuer rating of TXU
Europe Group plc from Baa1 to Baa3. The rating agency also
downgraded the preferred stock issued by TXU Europe Capital 1.
TXU Europe Ltd is an energy company based in the UK, which is
indirectly wholly owned by TXU Corp. In 2001 TXU Europe Ltd
recorded sales of about GBP8.7 billion.
The downgrade takes on the agency's last action, which placed the
rating s on review for possible downgrade on July 29 due to weak
operational performance of the U.K. electricity business.
Moody's acknowledges the equity injection of US$700 million from
TXU Corp., which TXU Europe can use to restructure various
contracts and buy back some debt.
The rating agency also noted that the company's primary liquidity
concern pertains to contingent calls, in particular through the
activation of its various rating triggers. Moody's warns that
"Should the company's senior unsecured ratings fall below
investment grade from either Moody's or another rating agency, a
number of triggers may be invoked which could cause significant
liquidity problems for the company and result in significantly
lower ratings."
The ratings have been left on review for possible downgrade as
Moody's monitor the prospects for development of the company's
cashflow, the arrival of the equity injection from its parent,
liquidity risks, and the execution risks of its revised business
plan.
TXU EUROPE: Parent to Prioritize U.S. Operation
-----------------------------------------------
TXU Corp. chief financial officer Mike McNally on a conference
call revealed that the company's main concern is the maintenance
of its U.S. operation, says the Financial Times.
The declaration came after the U.S.-based parent announced that
problems with its British subsidiary will cut profits for the
year. According to The Fort Worth Star-Telegram, the electricity
generator has been plagued by a decline in wholesale electricity
prices as a result of surplus electrical generation in Great
Britain.
Fitch Ratings promptly downgraded the senior unsecured rating of
TXU
Europe Ltd ('TXE') to BB from BBB-, and lowered the Short-term
ratings to 'B' from 'F3' on Friday Oct. 4.
According to the Financial Times, the downgrade may trigger early
repayment of bonds, potentially resulting in a cash crisis at TXU
Europe.
Although TXU Corp. promised to support the European operation
with up to US$700 million to help restructure its power
purchasing agreements or restructure financial arrangements, the
American parent maintained that it intends to do the equity
injection without endangering the credit rating of its U.S.
operation.
TXU Europe supplies electricity and gas to more than 5 million
U.K. customers.
WORLDCOM INC.: Proposes Procedures to Resolve Utilities Dispute
---------------------------------------------------------------
The Utilities Order also requires Worldcom Inc., and its debtor-
affiliates to negotiate with the Utility Companies in good faith
to establish expedited alternative dispute resolution procedures
for postpetition billing disputes below a certain value, and to
make a recommendation to the Court regarding the appropriate
maximum value of disputes subjects to these procedures. The
Debtors' recommendation for the maximum value of disputes subject
to the De Minimis Procedures is $100,000.
The procedures are established with respect to Disputes involving
postpetition invoices from any Utility Company to the Debtors
where the amount in dispute for any single month of service
involved in the Dispute does not exceed $100,000. Any amounts
that are not disputed will be paid in accordance with the Utility
Order.
According to Alfredo R. Perez, Esq., at Weil Gotshal & Manges
LLP, in New York, the terms of the dispute resolution procedures
are:
A. A Dispute will exist where the Debtors have, in good faith and
upon written request from a Utility Company, supplied the Utility
Company with:
-- a writing setting forth the reasons for not paying an invoice,
and
-- supporting documentation promptly following the request;
provided, however, that, if the parties' contract, tariff, or
applicable regulation supplies both a format and a time period
for disputing an invoice, that format and time period will
control.
Because these procedures are intended as additional adequate
assurance to the Utility Companies, any Utility Company may waive
the application of these De Minimis Procedures as to a particular
dispute; provided, however, that Utility Companies may not
terminate Utility Service to the Debtors except in accordance
with the 5th ordered paragraph of the Utility Order. A corporate
party need not be represented by an attorney while participating
in these De Minimis Procedures at any stage prior to a hearing in
the Bankruptcy Court;
B. Any Utility Company having a De Minimis Dispute with the
Debtors that elects to invoke these De Minimis Procedures should
send written notice of its desire to initiate proceedings
regarding the Dispute to the Debtors. The Utility Company should
send the De Minimis Dispute Notice directly to the Debtors to the
attention of the person responsible for the account in question,
and to:
Robert W. Rodrigues, Esq.
WorldCom, Inc.
1133 Nineteenth Street, Washington, DC 20036
Phone: (202) 736-6865 Fax: (202) 736-6471
E-mail:robert.w.rodrigues@wcom.com mail:robert.w.rodrigues@wcom.com>
with a copy to:
Alfredo R. Perez, Esq.
Weil, Gotshal & Manges LLP
700 Louisiana, Suite 1600, Houston, Texas 77002
Phone: (713) 546-5000 Fax: (713) 224-9511
E-mail:alfredo.perez@weil.com mail:alfredo.perez@weil.com>
-and-
Christopher Marcus, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Avenue, New York, New York 10153
Phone: (212) 310-8000 Fax: (212) 310-8007
E-mail:christopher.marcus@weil.com mail:christopher.marcus@weil.com>
C. The De Minimis Dispute Notice should contain these
information:
-- Identification of the legal entity on each side of the
transaction;
-- Identification of the specific contract or agreement pursuant
to which the alleged amounts are owed, including any account
number or other identifying information for the account in
question;
-- A concise statement of the amount in dispute; and
-- Contact information for a person with settlement authority to
resolve the matter;
D. Promptly after service of the De Minimis Dispute Notice, the
counterparties should make good faith efforts to provide each
other with information as the other may reasonably request
regarding the dispute;
E. Not later than 14 days after service of the De Minimis Dispute
Notice, the counterparties should participate in a mandatory
settlement conference, either in person or by telephone. The
settlement conference will be attended by representatives of the
Utility Company and the Debtors who have settlement authority to
resolve the matter;
F. If a De Minimis Dispute is not resolved at the mandatory
settlement conference, it should be adjudicated, within 45 days
from the conclusion of the mandatory settlement conference,
before a special master. The Special Master will conduct an
evidentiary telephonic hearing and will have authority to make a
recommendation to the Court with respect to a final resolution of
the matter. To the extent either
party seeks to introduce testimony at the evidentiary telephonic
hearing, unless agreed to by the other party, all witnesses must
testify in the presence of a notary public. The Special Master
should promptly file a recommendation with the Court and both the
Debtors and the applicable Utility Company will have 10 days to
object. If any party objects to the recommendation, the Debtors
will set the matter for hearing on a regularly scheduled hearing
date and serve notice of the hearing. Pending the hearing before
the Bankruptcy Court, to the extent the Special Master finds that
the Debtors owe money to the Utility Company, the Debtors will,
within 10 days of the filing of the Special Master's
recommendation, place the amounts in an escrow account; and
G. Within 20 days from the date upon which this Notice is filed,
all parties will have the right to recommend a person to serve as
Special Master. Unless agreed to earlier by the parties, the
Court will appoint a Special Master from among those recommended
at the first regularly scheduled hearing after 30 days after the
filing of this Notice. The Special Master will have authority,
based upon the amount and complexity of any particular Dispute,
to determine whether and to what extent each party will bear the
costs of resolving a particular Dispute before the Special
Master.
Allegheny Power, et. al., Objects
Robert T. Barnard, Esq., at Thompson Hine LLP, in New York,
argues that the Court should not grant the injunctive relief
because it actually deprives the Utilities of their rights under
applicable federal and state law. Under applicable federal and
state law, the Utilities are entitled to terminate service to the
Debtors for nonpayment of postpetition bills so long as they
comply with their Tariffs.
Furthermore, Mr. Barnard points out, the proposed injunctive
relief imposes a severe hardship on the Utilities by requiring
them to constantly monitor each account and ensure that several
parties, in addition to their customer, receive notices of
default. Moreover, under the Proposed Procedures, the Utilities
would have the affirmative duty to read the Debtors' minds and
ascertain that nonpayment of a bill may be based on a dispute
that the Utilities need to ask the Debtors to set forth in
writing.
Mr. Barnard contends that there is no need for the injunctive
relief because the normal billing cycles of the Utilities, which
are governed by the Tariffs, provide the Debtors with more than
sufficient protections to address billing or payment disputes.
Under the Utilities' billing cycles, the Debtors receive one
month of utility service before the Utility issues a bill for the
service. Once a bill is issued, the Debtors have 15 to 30 days to
pay the applicable bill. If the Debtors fail to timely pay the
bill, a past due notice is issued on the account, which generally
provides the Debtors with a week to cure the default. During
either of these time periods, the Debtors are provided sufficient
time to raise and address any billing or payment
disputes that may arise.
If the Debtors fail to cure the arrearage by the applicable cure
period, their service is subject to disconnection. Mr. Barnard
notes that under the Utilities' regulatory mandated or
contractually agreed billing cycles, the Debtors must be severely
delinquent in the payment of their bills and ignore a written
warning notice before service would be disconnected for
nonpayment of postpetition bills. Therefore, there is no need for
a Court-supervised billing dispute procedure. Accordingly,
Allegheny Power, et. al., ask the Court to deny the injunctive
relief sought. (Worldcom Bankruptcy News, Issue No. 9;
Bankruptcy Creditors' Service, Inc., 609/392-0900)
************
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. Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
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