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/raid1/www/Hosts/bankrupt/TCREUR_Public/021014.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 Monday, October 14, 2002, Vol. 3, No. 203 Headlines * B E L G I U M * LERNOUT & HAUSPIE: SEC Files Accounting Fraud Action * F R A N C E * ALCATEL: Analysts' Views Conflict on Financing Issue FRANCE TELECOM: Likely to Trim Down Workforce - Study NORTEL NETWORKS: Completes UMTS Calls Using 1900 MHz Spectrum NORTEL NETWORKS: Completes UMTS-Compliant 3G-to-2G Handover Calls VIVENDI UNIVERSAL: Announces Project to Reorganize Headquarters * G E R M A N Y * BABCOCK BORSIG: Spanish Subsidiary Sought Help From SEPI COMMERZBANK AG: BAFin Probes Into Suspected Market Manipulation DEUTSCHE TELEKOM: Union Foresees Job Cuts to Affect Service DEUTSCHE TELEKOM: May Pick New Chief Executive From Abroad DEUTSCHE TELEKOM: T-Mobile Partners With Borders Group FAIRCHILD DORNIER: Waits Rescue Offer of Russian Investors KIRCHMEDIA: Commerzbank Withdrew Bid for KirchMedia KIRCHMEDIA: Management Buys KirchMedia's Sports Asset * I R E L A N D * DATALEX: Teams With Vail Resorts and Resort Technology Partners * I T A L Y * FIAT SPA: Italian Government to Help Avoid Closure of Plants FIAT SPA: Auto Unit Workers Stages Strike to Protest Job Cuts * N E T H E R L A N D S * SONG NETWORKS: Files Pre-Negotiated Restructuring Plan * P O L A N D * ELEKTRIM SA: Board Announces Shareholding * S W I T Z E R L A N D * ABB LTD: Wins US$ 180 Million Order for Subsea System CREDIT SUISSE: Asset Management Funds Strengthens Team ZURICH FINANCIAL: Sets New Share Offering Price at CHF65 * U N I T E D K I N G D O M * CABLE & WIRELESS: Asks Court to Forbid Akamai Sales MARCONI PLC: Obtains GBP2 Million Contract With Railtrack RAILTRACK PLC: Notice of Stock Exchange Listing Cancellation TXU EUROPE: Standard & Poor's Lowers Ratings to BBB- From BBB+ ============= B E L G I U M ============= LERNOUT & HAUSPIE: SEC Files Accounting Fraud Action ---------------------------------------------------- Today the Commission announced the filing of an action in United States District Court for the District of Columbia against Lernout & Hauspie Speech Products, N.V., a developer of speech and language technologies, headquartered in Ieper, Belgium and Burlington, Massachusetts. The complaint alleges that, from 1996 through the second quarter of 2000, while its common stock was listed on the Nasdaq National Market System and Nasdaq Europe, Lernout & Hauspie engaged in a variety of fraudulent schemes to inflate its reported revenue and income. The result was an international financial scandal, the destruction of Lernout & Hauspie as an operating company, and a loss of at least $8.6 billion dollars in market capitalization, borne by investors in Belgium, the United States and elsewhere. In its action, the Commission seeks an injunction against future violations of the anti-fraud and other provisions of the federal securities laws by Lernout & Hauspie. According to the Commission's complaint: * Between 1996 and 1999, Lernout & Hauspie improperly recorded over $60 million in revenue from transactions with two newly- formed Belgian companies, contrived to allow Lernout & Hauspie to claim revenue from its research and development activities. Lernout & Hauspie subsequently acquired both of the purported customers on terms that repaid the amounts they had previously paid to Lernout & Hauspie, plus a substantial profit. Because the transactions were, in substance, disguised loans and not sales or service transactions, Lernout & Hauspie should not have recognized revenue from them. * In late 1998 Lernout & Hauspie launched a new and elaborate fraudulent scheme to, in essence, create additional customers. These new customers, dubbed "Language Development Companies," enabled Lernout & Hauspie to claim revenue of $102 million in license fees and $8.5 million in prepaid royalties in 1998 and 1999, giving the false impression of exponential growth. In actuality, the Language Development Companies were little more than shell companies created as a means for Lernout & Hauspie to improperly fabricate revenue. * From September 1999 to June 2000, L&H reported approximately $175 million in sales revenue from its Korean operations. The majority of this revenue was fraudulent because L&H Korea: (1) entered into oral and written side agreements with customers freeing them from any definite payment obligation; (2) masked the uncollectibility of receivables from some of these fraudulent sales by factoring the receivables to Korean banks subject to side agreements that protected the banks from any risk of non- collection; and (3) secretly arranged to fund the pay-down of receivables from other bogus sales. * During the last quarter of 2000, as information about the company's financial fraud became public through the press, the price of Lernout & Hauspie stock declined dramatically, falling from a high of $72.50 in arch 2000 to $.76 on December 29, 2000. Having been de-listed from Nasdaq and Nasdaq Europe, Lernout & Hauspie common stock is currently quoted on the "Pink Sheets." Lernout & Hauspie is presently in insolvency proceedings in the U.S. and Belgium. The Commission's investigation is ongoing with respect to other persons and entities. [SEC v. Lernout & Hauspie Speech Products, N.V. Civ. No. 1:02CV01992 (D.D.C.)] (LR-17782; AAE Rel. 1648) =========== F R A N C E =========== ALCATEL: Analysts' Views Conflict on Financing Issue ---------------------------------------------------- Analysts are on opposite sides of the argument regarding Alcatel's financing. According to Les Echos, while Credit Suisse First Boston analyst Sean Faughnan dismissed investors' fears of liquidity problems, Ben Cohen of UBS Warburg believes the telecom equipment group will be pressured to launch a capital increase. Mr. Faughnan has upgraded his target price for the Alcatel share from EUR5 to 6, believing that liquidity concerns are exaggerated. He also anticipates that the group will be liquid enough to finance restructuring operations and survive the current crisis in the telecom market. Mr. Cohen, on the other hand, predicts the need for the company to increase capital, with negative consequences for its stock- market performance. JP Morgan, meanwhile, estimates that the junk-bond status of its debts will cost the group EUR380 million in the third quarter. Recently, Alcatel Chief Executive Serge Tchuruk admitted that the financial outlook for the telecommunications company is still clouded by weakening demand. In a television interview with French television station LCI, Mr. Tchuruk predicted, "The market will keep shrinking in the second half [of the year]." He admitted, however, that he can't predict the recovery of the market and is still looking at an excess of capacity. While acknowledging that the company's big clients have halted investment, he believes this situation will not persist in the long term. Mr. Tchuruk also said he did not expect the high-speed UMTS mobile Internet market to exhibit strong developments before the end of 2004, but that he still believes in UMTS in the long run. FRANCE TELECOM: Likely to Trim Down Workforce - Study ----------------------------------------------------- France Telecom may make 20,000 redundancies through early retirement schemes between now and 2006, according to reports citing a study by Mercer Consulting for former chairman Michel Bon. Newly appointed chairman Thierry Breton is reportedly negotiating with creditor banks and the government for a solution to the company's EUR70 billion debt. The company has an EUR15 billion- debt payment due next year. France Telecom's Board of Directors recently nominated Thierry Breton as Chairman and Chief Executive Officer of France Telecom to replace Michel Bon, who resigned last month. Government sources are said to favor a share capital increase, subscribed 55% by the French government through the creation of a separate public body. Meanwhile, Credit Lyonnais SA Chairman Jean Peyrelevade is reportedly ready to help France Telecom as soon as the government has given its backing. NORTEL NETWORKS: Completes UMTS Calls Using 1900 MHz Spectrum ------------------------------------------------------------- Nortel Networks* [NYSE/TSX: NT] and QUALCOMM* Incorporated [Nasdaq: QCOM] have completed the industry's first UMTS (Universal Mobile Telecommunications System) voice and data calls demonstrating mobility across commercial cell sites using live 1900 MHz radio spectrum, QUALCOMM chipsets in commercial-form- factor handsets, and a live, end-to-end 3GPP (Third Generation Partnership Project) UMTS network from Nortel Networks. This is significant for North American GSM operators, who have spectrum available at 1900 MHZ but not at 2100 MHz. To date, U.S and Canadian regulatory bodies have not indicated when or if 2100 spectrum - traditionally used for UMTS (or W-CDMA) service elsewhere in the world - will be made available in North America. Nortel Networks and QUALCOMM have demonstrated voice and data services at 1900 MHz with network-based circuit and packet handovers at data speeds of up to 384 kilobits per second (kbps). High-speed data can improve network capacity and quality of service for wireless data applications like multimedia messaging (MMS), e-mail, file transfers, and location-based services, as well as drive a new era of streaming video, video telephony, and other visual wireless services. Migrating to Wireless Data Networks such as UMTS provides a highly cost-effective solution that will help GSM operators meet growing capacity demand and generate new revenues while improving end-user experiences with existing and emerging data services. "The ability to offer UMTS services over the 1900 spectrum provides a very strategic and cost-effective migration option for North American GSM operators," said Mark Whitton, leader, Technology and Product Strategy, Wireless Networks, Nortel Networks. "This enables them to offer UMTS services without the immediate need for capital investment in 2100 spectrum. As the only provider with proven success in deploying live Wireless Data Networks across all advanced access technologies, Nortel Networks is in a strong position to support 3GPP UMTS requirements for North American operators." "QUALCOMM is leading W-CDMA development worldwide, and that leadership extends to 1900 MHz for North America," said Don Schrock, president, QUALCOMM CDMA Technologies. "We are committed to enabling operators in their migration from 2G to 3G technologies, whether it is W-CDMA or CDMA2000." The MSM6200TM Mobile Station Modem (MSMTM) chipset is QUALCOMM's second-generation UMTS solution and supports data rates of up to 384 kbps in UMTS mode. The MSM6200 solution supports QUALCOMM's wireless LaunchpadTM suite of applications and software, encompassing advanced multimedia, connectivity, position location, user interface and removable storage capabilities. Selected components of the Launchpad suite are integrated into all of QUALCOMM's MSM chipsets based on the market for which each chip is designed. The MSM6200 chipset and system software also support QUALCOMM's Binary Runtime Environment for WirelessTM (BREWTM) Application Programming Interface (API). With the BREWapiTM, handset manufacturers and developers can develop both embedded and downloadable wireless applications and BREW-based products more quickly and easily. Nortel Networks Univity* portfolio provided 100 percent of the infrastructure equipment used to perform the 1900 UMTS calls, including packet and circuit core platforms from Univity Gateway GPRS Support Node (GGSN) and Univity Serving GPRS Support Node (SGSN). Nortel Networks core networking platforms use common hardware and software across GSM, GPRS and UMTS to provide seamless, cost-effective migration to 3G. UMTS 1900 radio access was enabled by Nortel Networks Univity Internet Base Station Transceiver Station (iBTS) and Univity Radio Network Controller (RNC) products. This milestone is another in a series of accomplishments between Nortel Networks and QUALCOMM. The companies have been working together to enhance and speed market delivery of code division wireless technologies since 1989. In October 2002, the companies completed 3GPP UMTS-compliant 3G-to-2G handover calls. In August 2001, the companies announced the first live CDMA2000 Mobile IP (Internet Protocol) call. These UMTS 1900 calls build on Nortel Networks history of UMTS innovation. Nortel Networks is the first infrastructure vendor to have deployed live networks across all three advanced access technologies - GSM, CDMA2000 and UMTS. Nortel Networks installed the industry's first pre-commercial UMTS networks, and has completed live 3GPP UMTS voice and data calls on 10 UMTS networks across five countries. In December 2001, Vodafone (Spain) completed the world's first international 3GPP call - with J- Phone in Japan - using Nortel Networks infrastructure. QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and traded on The Nasdaq Stock Market* under the ticker symbol QCOM. Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global Company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. Nortel Networks, the Nortel Networks logo, the Globemark and Univity are trademarks of Nortel Networks. QUALCOMM, the QUALCOMM logo, Mobile Station Modem, MSM, MSM6200, Launchpad, Binary Runtime Environment for Wireless, BREW and BREWapi are trademarks of QUALCOMM. The Nasdaq Stock Market is a trademark of Nasdaq. CONTACT: Jay Barta Nortel Networks Phone: 972-685-2381 E-mail: jbarta@nortelnetworks.com Claire Cranton Nortel Networks Phone: + 44 1628 617178 E-mail: cranton@nortelnetworks.com NORTEL NETWORKS: Completes UMTS-Compliant 3G-to-2G Handover Calls ----------------------------------------------------------------- Nortel Networks (NYSE:NT)(TSX:NT.) and QUALCOMM Incorporated (Nasdaq:QCOM) announced today that they have completed 3GPP (Third Generation Partnership Project) UMTS- compliant third- generation to second-generation (3G-to-2G) handover calls in a lab environment using QUALCOMM user equipment and end-to-end 3GPP Wireless Data Network equipment from Nortel Networks. The handoffs demonstrated networking capabilities that are designed to support global roaming and seamless voice services between different networks, cities, countries and operators, regardless of the type of handset used. This was an important milestone in launching 3G networks. Operators will need to support their current subscriber base on both GSM and UMTS to offer uninterrupted service as they transition to 3G. Migrating to wireless data network technologies such as UMTS can position operators to boost capacity, and significantly reduce capital outlays and the cost of delivering traffic across their networks. "This is a critical step in migrating to 3G," said Alain Biston, general manager, UMTS Networks, Nortel Networks. "3G-to-2G network handovers will enable operators to combine GSM and UMTS offerings to provide wide coverage right from the launch of their UMTS networks." "The 3G-to-2G handoff capability demonstrated by these milestone calls is critical to enable the launch of 3G networks and allow seamless roaming onto existing 2G networks," said Don Schrock, president of QUALCOMM CDMA Technologies. "The close collaboration between QUALCOMM and Nortel Networks represents our combined desire to continue leading the development of UMTS 3G technology." The MSM6200(TM) Mobile Station Modem (MSM(TM)) chipset, used for the calls, is QUALCOMM's second-generation UMTS (WCDMA) solution and supports data rates of up to 384 kilobits per second in UMTS mode. Like all members of the MSM6xxx family, the MSM6200 solution incorporates QUALCOMM's radioOne(TM) Zero Intermediate Frequency (ZIF) architecture, which eliminates the need for Intermediate Frequency (IF) components, including large IF saw filters and additional IF circuitry. With radioOne technology, the MSM6200 solution requires less printed circuit board area than previous-generation chipsets and reduces bill-of-material costs for wireless dual-mode products. The MSM6200 solution supports QUALCOMM's wireless Launchpad(TM) suite of applications and software, encompassing advanced multimedia, connectivity, position location, user interface and removable storage capabilities. Selected components of the Launchpad suite are integrated into all of QUALCOMM's MSM chipsets based on the market for which each chip is designed. The MSM6200 chipset and system software also support QUALCOMM's Binary Runtime Environment for Wireless(TM) (BREW(TM)) Application Programming Interface (API). With the BREWapi(TM), handset manufacturers and developers can develop both embedded and downloadable wireless applications and BREW-based products more quickly and easily. Nortel Networks Univity portfolio provided 100 percent of the infrastructure used to complete 3G to 2G handover calls, including Univity Mobile Switching Center (MSC), Univity Home Location Register (HLR), Univity Radio Network Controller (RNC) and Univity Internet Base Transceiver Station (iBTS) radio base station equipment. Nortel Networks core networking platforms use common hardware and software across GSM, GPRS and UMTS to provide a seamless, cost-effective migration to 3G. This is another in a series of accomplishments between Nortel Networks and QUALCOMM. The companies have been working together to enhance and speed market delivery of wireless technologies since 1989. In October 2002, QUALCOMM and Nortel Networks completed the first UMTS 1900 calls using commercial spectrum and handsets. In August 2001, the companies announced the first live CDMA2000 Mobile IP (Internet Protocol) call. The 3G-to-2G handover calls build on Nortel Networks history in UMTS innovation. Nortel Networks is the first infrastructure vendor to have deployed live networks across all three advanced access technologies - GSM, CDMA2000 and UMTS. Nortel Networks has installed the industry's first pre-commercial UMTS networks and completed live 3GPP UMTS voice and data calls with 10 UMTS networks across five different countries. In December 2001, Vodafone (Spain) completed the first international 3GPP call - with J-Phone in Japan - using Nortel Networks infrastructure. QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and traded on The Nasdaq Stock Market under the ticker symbol QCOM. Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global Company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. Nortel Networks, the Nortel Networks logo, the Globemark and Univity are trademarks of Nortel Networks. QUALCOMM is a registered trademark of QUALCOMM Incorporated. MSM, MSM6200, Launchpad, radioOne, BREW and BREWapi are trademarks of QUALCOMM Incorporated. The Nasdaq Stock Market is a trademark of Nasdaq. Note: In September Standard & Poor's Ratings Services lowered its ratings on the telecommunications company, including the long- term corporate credit rating, which was lowered to single-'B' from double-'B'-minus after the company announced on August 27 that revenues from continuing operations in the third quarter of 2002 will be lower than previously forecast. The outlook is negative, which Standard & Poor's belief that plans for Nortel to return to net profitability by mid-2003 may not be achieved, in light of accelerating marketplace stresses. CONTACT: Nortel Networks Jay Barta Phone: 972/685-2381 E-mail: jbarta@nortelnetworks.com or Nortel Networks Claire Cranton Phone: + 44 1628 617178 E-mail: cranton@nortelnetworks.com or QUALCOMM Stacy Getz Phone: 858/845-7674 E-mail: stacyg@qualcomm.com or QUALCOMM Patty Goodwin Phone: 858/651-4127 E-mail: publicrelations@qualcomm.com or QUALCOMM Julie Cunningham Phone: 858/658-4224 E-mail: jcunningham@qualcomm.com VIVENDI UNIVERSAL: Announces Project to Reorganize Headquarters --------------------------------------------------------------- A document concerning a project to reorganize the Vivendi Universal (Paris Bourse: EX FP; NYSE: V) headquarters was given to the works committee of Vivendi Universal SA on October 10, 2002, thereby initiating the information and consultation procedures provided for in French labor regulations. The project affects the headquarters of Vivendi Universal in Paris, as well as its locations outside France. It aims to: - redefine and refocus the headquarters tasks on holding company activities; - concentrate all those tasks in Paris, with New York becoming a representative office for the company, primarily responsible for functions relating to North America; - achieve full-year savings of around E140 million compared with the total 2002 budget of E313 million. These savings will be generated by a very significant cut in non-payroll costs (fees for external services, in particular), as well as a reduction in the number of employees at all headquarters sites. With regard to the Paris headquarters, the plan provides for cutting 152 positions out of a total of 327. To deal with this situation, in consultation with the labor unions, Vivendi Universal will take measures--in particular as regards job mobility--to ensure that all employees are offered a suitable solution, therefore excluding redundancy without accompanying measures. CONTACT: Vivendi Universal Media Paris Antoine Lefort Phone: +33 (1) 71.71.1180 Alain Delrieu Phone: +33 (1) 71.71.1179 New York Anita Larsen Phone: +(1) 212.572.1118 Mia Carbonell Phone: +(1) 212.572.7556 ============= G E R M A N Y ============= BABCOCK BORSIG: Spanish Subsidiary Sought Help From SEPI -------------------------------------------------------- The Spanish subsidiary of Babcock Borsig, the German engineering firm which recently launched its rescue company, sought help in the face of its failed privatization, says Expansion. Employees of Babcock Borsig Espana have asked SEPI, the Spanish state industrial holding company, to take charge of its operations and to act as guarantor for the firm to ensure the company's survival while it looks for a new financier. According to an August report of TCR-Europe, Babcock Borsig Espana had signed a EUR60 million contract with Duro Felguera concerning a project for Spanish electricity group Endesa. It is believed that the agreement could help ease difficulties caused by the decision of the parent company to file for creditor protection. The report said insolvency would revive the uncertainty that recently defined the Spanish unit's future. Less than a year ago, anxiety hit workers, as the difficult privatization process cast doubts on their job security. Babcock Borsig bought the Spanish subsidiary for EUR45 million, promising to invest EUR135.23 million and not to lay off employees for a period of five years. COMMERZBANK AG: BAFin Probes Into Suspected Market Manipulation --------------------------------------------------------------- The Federal Financial Supervisory Authority (BAFin) launched an initial investigation into possible market manipulation of the Commerzbank share on Wednesday, October 9, 2002. There are suspicions that an external party is attempting to sabotage the share price by spreading negative rumors about the bank. The BAFin is thus reviewing the share's recent price development, but it has explicitly stated that it has no suspicions against Commerzbank itself. The BAFin published the following press release in the afternoon: The BAFin - Federal Financial Supervisory Authority - on the situation in the German banking sector: The BAFin monitors and analyses the current earnings and risk situation of German banks as a matter of routine. Regular contact is maintained with the major German banks in particular. In light of the general situation in the capital market the BAFin has increased its supervisory activities, placing even more emphasis than usual on being thoroughly informed about the forthcoming annual financial statements. It becomes obvious that German institutions, like their international competitors, suffer from the decline in exchange prices. On the whole, the results achieved in recent years are unlikely to be matched. "The situation in the German banking sector is far from being critical. There is no reason whatsoever to assume that by the end of this year, German banks might fail to meet the international capital adequacy requirements. The current exaggeration in the market, especially the prevailing doubt about the liquidity of German institutions, is entirely beyond my comprehension", says Vice President Caspari. German banks handle the issue of liquidity in a professional manner, there is no reason for regulatory concern. Anybody who wilfully circulates incorrect rumours is liable to investigations into suspected market manipulation. DEUTSCHE TELEKOM: Union Foresees Job Cuts to Affect Service ----------------------------------------------------------- Deutsche Telekom AG's work council is worried that announced job reductions will negatively affect the telecommunication company's operations and services, says Frankfurter Allgemeine Zeitung. Based on past experience, the group believes the planned job cuts will compromise services to customers. Deutsche Telekom AG plans to shed thousands of jobs through 2005, or about 22% of the workforce to push with its cost cutting program. The former German state phone monopoly lost US$3.8 billion in the fist half of the year, despite a pretax profit of US$1.75 billion at T-Com-- the operation expected to bear the brunt of the job cuts. In addition, the report says, Ver.di, the service sector union, is also critical of the company's information policy regarding the job cuts. Deutsche Telekom announced last week that 29,500 jobs were to be cut in T-Com, its landline subsidiary, by 2005, and that, counting temporary contracts, the workforce would be reduced by 24,800. This week, Deutsche Telekom announced that roughly 40,000 out of 170,000 jobs in Germany were to be cut by the end of 2005, plus 11,000 jobs in foreign subsidiaries. DEUTSCHE TELEKOM: May Pick New Chief Executive From Abroad ---------------------------------------------------------- Deutsche Telekom supervisory board chairman Hans Dietrich Winkhaus said the company might possibly select a non-German chief executive, reports say. The former German state phone monopoly is currently looking for a new chief executive after Ron Sommer left the post in July. Mr. Winkhaus also disclosed that instead of announcing the new chairman by the November, the proclamation may come at the latest in December. Klaus Zumwinkel, the head of Germany's post office, who was said to be the leading candidate to head Deustche Telekom, on Monday said that he is not interested in the post. Deutsche Telekom, which posted net loss of EUR3.9 billion for the first half of 2002, is currently conducting a review to solve the EUR4 to EUR7 billion gap in the company's plan to reduce its debt to EUR50 billion by the end of 2003. The company had EUR64.2 billion-debt at the end of June. DEUTSCHE TELEKOM: T-Mobile Partners With Borders Group ------------------------------------------------------ T-Mobile USA, Inc., the wireless subsidiary of Deutsche Telekom AG (NYSE:DT), in partnership with Borders(R) Group, Inc. (NYSE:BGP) announced an agreement to provide Borders customers high-speed broadband wireless Internet access in Borders Books and Music locations nationwide via T-Mobile HotSpot(sm) service. Currently available in over 1,600 convenient locations across the country, T-Mobile HotSpot service allows customers with a wireless-enabled laptop or PDA to access the Internet or Intranet at super fast speeds. Customers can indulge personal interests and work applications including checking e-mail and doing online research to reading book reviews and experiencing rich multimedia audio and video services. With today's announcement, T-Mobile HotSpot customers GET MORE(sm) easily identifiable locations to access the Internet away from their home or office, and Borders customers get the convenience of a high speed wireless Internet connection to complement their visit to Borders stores and cafes. The T-Mobile HotSpot service will be available in approximately 400 Borders Books and Music locations beginning in the first quarter of 2003 with Borders stores in California being the first to offer the service. "We see the addition of T-Mobile HotSpot wireless Internet service to our bookstores as a welcome extension to the shopping experience for our customers," says Tami Heim, president of Borders Stores and Borders Online. "In addition to offering books, music and movies, we invite our shoppers to come to our stores to read, meet with friends, or even just unwind at Cafe Borders. Allowing our customers to do those things and still stay connected to their world is a great addition to our service offering." "Borders is an excellent compliment to our rapidly growing portfolio of T-Mobile HotSpot locations," said Robert Dotson, President and COO, T-Mobile USA. "As part of our GET MORE(sm) service offering, we're committed to making high speed, reliable wireless Internet access widely available at easily recognizable places our customers frequent." T-Mobile HotSpot represents the largest, fastest growing network of standards based "Wi-Fi" (802.11b) access points across the country, with over 1,600 service locations to date including select Starbucks coffeehouses, airports and airline clubs. About T-Mobile, USA Based in Bellevue, Wash., T-Mobile USA operates the largest GSM/GPRS voice and high-speed wireless data network in the United States, covering over 200 million people. T-Mobile also operates a "Wi-Fi" 802.11b wireless broadband (WLAN) network in more than 1,600 public locations including Starbucks coffeehouses, American Airlines Admirals Clubs, and select airports nationwide. T-Mobile is a member of T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom (NYSE:DT), and one of the top three global wireless carriers in the world. Through its GET MORE(sm) promise, T-Mobile is committed to providing the best overall value in wireless communications with more minutes, features and service than any other carrier. For more information, go to www.t-mobile.com. About Borders Group, Inc. Borders Group, Inc., (NYSE:BGP) is a leading global retailer of books, music, video and other information and entertainment items with stores in the United States, United Kingdom, Australia, New Zealand, Singapore, and the commonwealth of Puerto Rico. A FORTUNE 500 company headquartered in Ann Arbor, Mich., Borders Group employs 32,000 worldwide and operates over 385 Borders domestic superstores, 25 international Borders stores, 36 Books etc. locations and approximately 800 Waldenbooks stores. Teamed with Amazon.com, the company also offers online shopping through Borders.com (www.borders.com). More detailed information for journalists is available at www.bgimediacenter.com. Financial data is hosted on www.bordersgroupinc.com and information on Borders stores is available through www.bordersstores.com. CONTACT: T-Mobile USA Kim Thompson, 425/378-4074 kim.thompson@t-mobile.com or Bryan Zidar, 425/378-6082 bryan.zidar@t-mobile.com or Borders Group Inc. Ann Binkley, 734/477-1519 abinkley@bordersgroupinc.com FAIRCHILD DORNIER: Waits Rescue Offer of Russian Investors ---------------------------------------------------------- German regional aircraft manufacturer, Fairchild Dornier, is believed to be waiting to receive an offer that could save its ailing business, says the Financial Times Deutschland. In Suddeutsche Zeitung's report, the insolvency administrator of the German-U.S. company said Basic Elements, the Russian conglomerate, and Russian aircraft group Irkutsk Aircraft Production, plan to bid jointly for the insolvent German-US regional aircraft manufacturer. Swiss-based Aviation Finance Consulting (AFC) is also believed as among the investors interested in Fairchild Dornier. According to the report, Basic Elements and Irkutsk plan to assemble and register the company's aircraft model 72 in Germany. AFC, meanwhile, plans to inject EUR200 million equity capital with the help of a group of investors. Fairchild Dornier opened insolvency proceedings at the start of June. Its hopes were dashed when Canadian aircraft maker Bombardier Inc. abandoned talks on taking over its 728/928 program, which is thought to have significantly contributed to the company's insolvency. The German company had already invested EUR1 billion in the program and this coupled with a low turnout on anticipated sales led to further financial woes. KIRCHMEDIA: Commerzbank Withdrew Bid for KirchMedia --------------------------------------------------- German bank Commerzbank has left Sony Corp. unit, Columbia TriStar, in the bid for KirchMedia GmbH. According to Financial Times Deutschland, the bank withdrew after it confirmed it was on the side of the former associates of Kirch. Commerzbank's move narrowed the bidders to a consortia of: Hollywood studio Columbia Pictures Industries; U.S. bank Lehman Brothers (LEH), oil tycoon Al Walid and retail group Rewe-zentral AG (G.RZE); and French television company Television Francaise 1 (F.TFF) and the Israei-American media entrepreneur Haim Saban. KirchMedia is looking for a buyer or group of buyers to acquire all the entire KirchMedia assets up for sale. It is auctioning its assets after filing for insolvency in April. The group reportedly owns a large film library and sports rights, including World Cup football, and controls ProSieben, Germany's largest commercial broadcaster. The creditors of KirchMedia, mainly German and US film studios, are due to discuss bids for the company's 52.5% stake in ProSiebenSat.1, Germany's biggest free-TV broadcaster. The group will narrow down bidders from three to two. KIRCHMEDIA: Management Buys KirchMedia's Sports Asset ----------------------------------------------------- KirchSport GmbH's management, Guenther Netzer and French investor Robert Louis Dreyfus, has acquired Kirch Sport AG, says AFX with a confirmation from KirchMedia's management. The report did not disclose the price of the deal. The unit, which is one of the assets being sold by insolvent German media giant KirchMedia, holds the rights to the soccer World Cup, Bloomberg earlier reported. KirchMedia acquired the rights to the 2002 and 2006 soccer World cups for CHF2.8 billion (US$1.9 billion). The sports assets include: ISPR, the rights marketing agency for first and second-division German football games, and the wholly owned KirchsSport. Earlier, John Kristick, a member of KirchSport's management, said of the offer: ``It's a complicated process, but the fact that we have the management and business partners behind us and plan to continue the business and keep the employees is positive.'' KirchSport has more than 80 employees and has sponsoring, broadcasting and advertising contracts with about 40 European soccer clubs. ============= I R E L A N D ============= DATALEX: Teams With Vail Resorts and Resort Technology Partners --------------------------------------------------------------- Vail Resorts Inc. (NYSE:MTN) announced new Internet booking services available at its www.snow.com site, providing visitors with enhanced capabilities for searching, selecting and purchasing accommodations, activities and other travel components. The site's improvements were made possible by a new booking engine developed in partnership with Datalex (ISE:DLE; OTC:DLEXY) and Resort Technology Partners (RTP), representing a new generation of Internet distribution technologies for leisure travel enterprises. At the www.snow.com site, visitors can perform complex searches for accommodations by product types, locations, amenities and individual preferences. Content-rich site information includes property photographs and descriptions, maps and other destination content. The booking system enables the purchase of accommodations, ski-lift tickets, airport shuttle services, car rental, and activities. Travel components can be purchased individually or as customized packages covering a wide variety of activities including skiing, golfing, fishing, mountain biking and more. The new system enables the resort operator to target promotional offers, such as seasonal rates and extended stay programs, and to respond quickly to market opportunities with special pricing and packages. Leading mountain resort operator Vail Resorts Inc. (VRI), global travel industry technology provider Datalex, and resort and recreation technology specialist RTP developed the new booking engine over a two-year period, using Web Services technologies designed specifically for booking operations across the Internet. The build decision was based on VRI's requirement to better represent the breadth of facilities available at its destinations, to broaden the scope for customer online self- service travel booking at its portal Websites, and to realize increased efficiency in its sales, distribution and reservations management operations. "Given the growth in online vacation bookings over the past several years, we realized that a comprehensive online reservations system was needed in order to continue meeting the needs of our guests and delivering high levels of service," said Martin White, senior vice president of marketing and sales for Vail Resorts. "By partnering with Datalex and RTP on our new online reservations system, we are able to offer our guests one- stop shopping for their vacation needs and capture important information for future marketing opportunities, all of which gives us an edge in a highly competitive industry." The current implementation, targeted at existing site users, represents the initial phase of development of the Internet booking system, which has been deployed at www.snow.com for Vail, Beaver Creek, Breckenridge, Keystone and Heavenly. Direct connections have been developed for the principal property management system used by VRI's hotel groups, enabling guests to view real-time pricing and availability. The site will be complemented with additional components for booking airfares and storing customer profile information. VRI plans to attract new users to the site and will develop dedicated portal sites for property owners, travel trade distributors and group organizers. VRI also plans to implement a professional-level interface for its call-center personnel and to use the booking system for its other managed resort locations. "The development represents a significant extension of Datalex's technologies," said Datalex CTO Jim Peters. "This solution enables us to meet the growing requirements among global hospitality, resort and destination management organizations for dynamic Internet packaging, content management, inventory system connectivity and distribution. It is exciting for Datalex to deliver these Web Services technologies also among our traditional clientele of transportation and tour providers, and Internet retailers." Datalex will continue to develop, integrate and market the Internet booking engine technologies with its e-Commerce solution suite and will extend connectivity options for a wide range of hotel and resort property management systems. System components were developed using the latest technologies including J2EE standards and Enterprise Java Beans, based on a Web Services framework. "We are very proud of the work we have done helping Vail Resorts and Datalex seamlessly integrate their new booking engine with the new Vail Resorts websites," said Charlie L'Esperance, president and CEO of RTP. "Since RTP has expertise in all three areas (resort transaction processing, website development, and user interface design), we were able to deliver a very effective e-Commerce capability for Vail Resorts, with real business value." About Vail Resorts International Vail Resorts, Inc. is the leading mountain resort operator in the United States. The Company's subsidiaries operate the mountain resorts of Vail, Beaver Creek, Breckenridge and Keystone in Colorado, Heavenly in California and Nevada, and the Grand Teton Lodge Company in Jackson Hole, Wyo. The Company also holds a majority interest in RockResorts, a luxury resort hotel company with 10 distinctive properties across the United States. Vail Resorts Development Company is the real estate planning, development, construction, retail leasing and management subsidiary of Vail Resorts, Inc. Vail Resorts is a publicly held company traded on the New York Stock Exchange (NYSE: MTN). The Vail Resorts company website is www.vailresorts.com and consumer website is www.snow.com. About Datalex Datalex is a leading provider of technology solutions for the global travel industry. Founded in 1985, the company is headquartered in Dublin, Ireland, and maintains offices throughout the world: Europe (Amsterdam, Frankfurt, Paris, Manchester); USA (Atlanta, Petaluma, Minneapolis); and Asia- Pacific (Melbourne, Singapore). Datalex's customers include Aer Lingus, Air Canada, Amadeus, American Express, American Trans Air, Amtrak, California State Automobile Association, Delta Air Lines, Disney Cruise Lines, FAR&WIDE, Galileo, KLM, Lufthansa, Norwegian Cruise Lines, Saudi Arabian Airlines, Singapore Airlines, SilkAir, SNCF, Sol Melia, South African Airways, Thomas Cook, Trailfinders, Travelcare, T- Systems, Unisys, WEXAS and Worldspan. Datalex is a publicly held company traded on the Irish Stock Exchange (symbol: DLE, and also OTC: DLEXY). For more information, please visit the company's Web site at www.datalex.com. About RTP RTP provides integrated point of sale, Guest Service, CRM, and eCommerce software solutions to premier resort and recreation businesses. RTP counts 10 of the top 15 mountain destination resorts in North America as customers including: Vail Resorts, Aspen/Snowmass, Whistler Blackcomb, Park City and, Northstar-at- Tahoe as well as leading theme parks, golf course operations, private clubs, and destination resort hotels and communities. Note: Datalex last month posted first-half 2002 results including: Operating loss before goodwill amortization and the fair-value charge of share awards to employees reduced from US$15.5 million in H1 2001 to US$7.2 million in H1 2002. Operating expenses reduced from US$18.9 million in H1 2001 to US$10.5 million in H1 2002. An improvement in basic and diluted loss per share from US$0.44 in H1 2001 to US$0.20 in H1 2002. CONTACT: Slattery PR, Dublin Conor Dempsey, + 353 1 6614055 cdempsey@slatterypr.ie or Datalex, USA Bob Borgwat, + 770 255 2460 bob.borgwat@datalex.com or Datalex, Ireland Mary Rose MacAllister, + 353 27 60989 maryrose.macallister@datalex.ie or Vail Resorts Inc. Kelly Ladyga, +970 845 5720 KLadyga@vailresorts.com or RTP Peter Hoskins, 870-477-4812 peterh@rtp.com ========= I T A L Y ========= FIAT SPA: Italian Government to Help Avoid Closure of Plants ------------------------------------------------------------ The Italian government promised to help Fiat automotive avoid closure of its plants, fearful of the job losses that such an event could trigger. The carmaker, which admitted to having 20 to 30% excess manpower, is currently considering further job cuts to raise money for investment. Although reports have stated that Fiat Auto plans to dismiss between 3,000 to 4,000 jobs, unions fear the figure could be up to 6,000. These cuts come on the heels of a workforce reduction made by the automaker earlier this year, which slashed 2,900 employees. The company is trying to achieve a turnaround in sales during the fourth quarter, but weakness in its important domestic market is cutting the drive short. According to Xinhua News, the Italian Premier Silvio Berlusconi said the government "certainly does not want to leave thousands of Italians out of work in areas that offer no alternatives." Italian Production Minister Antonio Marzano agreed, but he contends that there was little the government could do until Fiat presented a "credible" recovery plan. Fiat Auto, in a statement, recently proposed to resolve the Fiat Auto crisis by "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; and increasing sales through more profitable channels." FIAT SPA: Auto Unit Workers Stages Strike to Protest Job Cuts ------------------------------------------------------------- Fiat auto employees went on strike Thursday to protest plans to trim down workforce in Italy by nearly 20%, says Associated Press. The move came after Fiat announced a plan to lay off 7,600 workers on top of 3,000 temporary layoffs previously announced. Workers at plants in Termini Imerese, Sicily, walked off their job Thursday. According to Enrico Stagni of the FIOM union, the main metalworkers' union, the workers are planning to stage the same strike again Friday. Fiat Auto, which employs 35,000 employees in Italy suffered a first-half operating loss of EUR813 million (US$798 million), despite profits from the industrial group's truck, aviation, and farm and construction equipment manufacturing. The automaker recently issued a plan to resolve the unit's crisis. The scheme includes "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." The statement further says, "production has been cut back through recourse to the Government's Layoff Benefits Fund, which is close to being exhausted in some industrial areas. According to the Associated Press report, Fiat plans to offer 500 more workers a chance to transfer or retire early. ===================== N E T H E R L A N D S ===================== SONG NETWORKS: Files Pre-Negotiated Restructuring Plan ------------------------------------------------------ Song Networks Holding AB (Stockholm:SONW) (Other OTC:SONWY) ("Song Networks") announced that its wholly owned subsidiary, Song Networks N.V., filed a suspension of payments (Surseance) in The Netherlands. At the same time, Song Networks N.V. submitted to the Dutch court its proposed plan of composition on which agreement has been reached with an ad hoc committee of holders of Song Networks N.V. Senior Notes. About Song Networks, formerly Tele1 Europe, (Stockholmsborsen: SONW) Song Networks is a data and telecommunications operator with activities in Sweden, Finland, Norway and Denmark. The Company's business concept is to offer the best broadband solution for data communication, Internet and voice to businesses in the Nordic region. This means that Song Networks supplies communication solutions that are attractively customized for each corporate customer. Song Networks is currently the only pan Nordic operator investing in local access networks with broadband capacity. The Company has built local access networks in the largest cities in the Nordic region. The access networks, which are linked by a long-distance network is one of the fastest data and internet super-highways in Europe, with an initial capacity for customers of up to one gigabit. The Company was founded in 1995 in Sweden and has approximately 1,000 employees. The head office is located in Stockholm and there are an additional 34 offices located in the Nordic region. For further information, please visit our website at www.songnetworks.net =========== P O L A N D =========== ELEKTRIM SA: Board Announces Shareholding ----------------------------------------- The Management Board of Elektrim S.A. announces that on 10 October 2002 it was informed that on 8 October 2002 as a result of settling purchase transactions executed by company Multico Sp. z o.o., Multico Sp. z o.o., together with its subsidiary Multico- Press Sp. z o.o. and parent entity Zbigniew Jakubas, hold a total of 10,609,703 shares of Elektrim S.A. which represent 12.66% of Elektrim's share capital. The above number of shares entitles to 10,609,703 votes, which represents 12.66% of the total number of votes at a shareholders' meeting of Elektrim S.A. At present, Zbigniew Jakubas holds 5,609,471 shares of Elektrim S.A. representing 6.70% of share capital and 5,609,471 votes representing 6.70% of the total number of votes at a shareholders' meeting of Elektrim S.A. Multico Sp. z o.o. holds 2,612,802 shares of Elektrim S.A., which represents 3.11% of share capital and 2,612,802 votes representing 3.11% of the total number of votes at a shareholders' meeting of Elektrim S.A. Multico-Press Sp. z o.o. holds 2,387,430 shares of Elektrim S.A. representing 2.85% of share capital and 2,387,430 votes representing 2.85% of the total number of votes at a shareholders' meeting of Elektrim S.A. ===================== S W I T Z E R L A N D ===================== ABB LTD: Wins US$ 180 Million Order for Subsea System ----------------------------------------------------- ABB, the leading power and automation technology company, said it has won a US$ 180 million order from the Norwegian oil company Statoil to deliver a complete subsea gas production system for the development of the Statoil-operated Snohvit gas field in the Barents Sea. The subsea system will be remotely controlled by operators at Statoil's liquified natural gas plant near Hammerfest on Norway's northern coast. This is done via a 161-kilometer-long fiber optic cable - the longest ever used in such a subsea operation. The technology for controlling both the on- and offshore operations is also being provided by ABB. "The offshore oil and gas industry is increasingly moving equipment from the ocean surface to the seabed. There are a number of reasons for this, including environmental and cost considerations," said Erik Fougner, senior vice president and head of ABB's Oil, Gas and Petrochemicals division. "This order is a sign of Statoil's confidence in the research and development we have been carrying out in this area in recent years." The terms of the contract include project management, engineering, manufacturing of hardware, testing and technical services for the delivery of an integrated subsea production facility for the gas field. The engineering work will start immediately and the project is due to be finalized in 2005. Statoil has placed a number of orders with ABB in the past few months, including contracts relating to the Hammerfest plant, and for maintenance and modification work on other oil and gas fields in the North Sea. ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impacts. The ABB Group of companies operates in more than 100 countries and employs about 150,000 people. Note: ABB Ltd. recently sold its metering business to Ruhgas for US$244 Million. According to spokesman Wolfram Eberhardt, the group allocated the proceeds of the sell-off to cut net debt of US$5.2 billion in July to US$2.6 billion by the end of 2002. CREDIT SUISSE: Asset Management Funds Strengthens Team ------------------------------------------------------ Credit Suisse Asset Management Funds (UK) Limited has boosted its Multi-Manager team with the appointment of Julian Sutton as Assistant Fund Manager. Julian joins from Towers Perrin's Asset Consulting Services Division and has over seven years' experience in investment and finance. Most recently his role focused on preparing and delivering advice to pension fund trustees on all aspects relating to the investment of their fund's assets. He has significant expertise in investment manager research, monitoring investment manager performance, asset liability modelling and asset allocation strategy. The appointment coincides with the first anniversary of Credit Suisse's Multi- Manager fund of funds range. In their first year 9 of these 11 fund of funds have outperformed their respective sectors. The CS Constellation Multi-Manager Fund, launched with the aim of blending a collection of star fund managers, has outperformed 95% of its peer group in the global growth sectors.* Commenting on the appointment, Gary Potter, Joint Head of Multi- Manager Services, Credit Suisse Asset Management Funds (UK) Limited says: "This appointment is a significant boost to the team. Multi- manager is becoming increasingly popular and after one year, the Credit Suisse Multi-Manager team are sub advisers and managers of close to o100 million. With this well-resourced and specialist team, we are in a position to offer the highest levels of service. The combined skills of the team will help us seek out the best fund management talent in the industry to help us in our aim to provide the best returns while minimising risk." *Lipper Hindsight, bid to bid, net income reinvested, Sterling, 13 August 2001 to 13 August 2002 Credit Suisse Asset Management is the institutional and mutual fund asset management arm of Credit Suisse First Boston, part of the Credit Suisse Group, one of the world's largest financial organizations with approximately GBP568.5 billion in assets under management. Credit Suisse First Boston (CSFB) is a leading global investment bank serving institutional, corporate, government and individual clients. CSFB's businesses include securities underwriting, sales and trading, investment banking, private equity, financial advisory services, investment research, venture capital, correspondent brokerage services and asset management. CSFB operates in 78 locations in 37 countries across six continents. The Firm is a business unit of the Zurich-based Credit Suisse Group, a leading global financial services company. For more information on Credit Suisse First Boston, please visit our Web site at www.csfb.com. As of June 30, 2002, Credit Suisse Asset Management employed 2,262 people worldwide and had global assets under management of approximately GBP201.1 billion. Please note that this is not an offer for advisory services by Credit Suisse Asset Management. For more information on Credit Suisse Asset Management, please visit our Web site at www.csam.com. CONTACT: Ian Chimes Credit Suisse Asset Management Managing Director Telephone Phone: +44 207 426 2992 Lisa Goddard Credit Suisse Asset Management Head of Marketing Communications Telephone Phone: +44 207 426 2992 Gay Collins / Louise Hatch Penrose Financial Telephone Phone: +44 207 786 4888 ZURICH FINANCIAL: Sets New Share Offering Price at CHF65 -------------------------------------------------------- Zurich Financial has set a final issue price of CHF65 on new stock in a US$2.5 billion share offering as part of its restructuring operation, says CNN. The insurer is currently undertaking a US$5 billion (GBP3.25 billion) turnaround plan that includes divestments and job cuts. The market price of the new stock is discounted 50%, although considering theoretical ex-rights price it comes with a 38% discount only. In September, Europe's third-largest insurer admitted that the rights issue would be discounted heavily. According to the report, the issue price is in line with expectations--offering no premium to the minimum price of of 65 francs set by Zurich in September when it announced the rights issue. The two-for-three issue involves 57.6 million new shares, adding to 86.4 million existing shares. Rights trade between October 17 and 24 and can be exercised between October 17 and 25. The rights issue had been underwritten by a syndicate of banks led by Credit Suisse First Boston, Goldman Sachs International, Schroder Salomon Smith Barney and UBS Warburg. =========================== U N I T E D K I N G D O M =========================== CABLE & WIRELESS: Asks Court to Forbid Akamai Sales --------------------------------------------------- Cable & Wireless (NYSE: CWP), the inventor of content-delivery- network (CDN) technology, asked a U.S. District Court to forbid Akamai Technologies, Inc. from selling its EdgeSuite (formerly known as FreeFlow) products and services until the company removes a key, patented technology that sidesteps Internet congestion by finding alternative paths for information to travel. If granted, the preliminary injunction would prevent Akamai from marketing and selling products and services that infringe on Cable & Wireless' U.S. Patent 6,275,470, which covers the Host- to-Host Adaptive Routing Protocol (HHARP), its Internet optimal- routing patent. A preliminary injunction is an emergency request typically heard quickly by a court. HHARP is a technology that creates an overlay network for the Internet that "tunnels" or sidesteps around problem network links or nodes, such as edge servers or routers, by requesting the optimal path between two points, such as between a customer's origin server and a CDN server at the edge of the Internet, to quickly and reliably deliver the information. HHARP compensates for poor network performance caused by hardware and link failures, configuration errors, incorrect or sub-optimal routing policies and congestion at busy "intersections." Its routing systems can work in conjunction with standard TCP/IP routing protocols to instantly detect and temporarily avoid routing paths with these performance problems without changes to senders and receivers. "Akamai should not be allowed to sell products and services that are based on our patent, and we are confident that Akamai will be found to be infringing," said Chris Albinson, chief strategy officer for Exodus, a Cable & Wireless Service, the organization formed by the integration of Digital Island with the Exodus business. "We continue to aggressively protect HHARP and our other intellectual property assets for the benefit of our customers." The preliminary injunction request is part of a Cable & Wireless lawsuit filed in August that charged Akamai and its affiliate Sockeye Networks, Inc. with infringing on HHARP. Legal actions against Sockeye will be handled separately. This summer Cable & Wireless, in a separate lawsuit, charged Akamai with violating its newly issued U.S. Patent No. 6,415,280, which covers various content-delivery algorithms and systems. The suit charges that Akamai's CDN products and the Akamaizer tool used to prepare content so it can be accessed at the CDN, directly infringe on Cable & Wireless' new Patent '280, which covers ways to ensure that only the freshest information is served to Web sites and ways to optimize content storage by avoiding duplication of information in a CDN. This latest preliminary injunction request is one aspect of what is expected to be a multi-year effort to protect Cable & Wireless' intellectual property and defend its status as the first inventor of CDN technology. The company expects to continue to pursue patent protection covering its CDN technology with the Patent and Trademark Office (PTO). About Exodus, a Cable & Wireless Service Since April 1, 2002, all hosting and content delivery services historically offered by Cable & Wireless, Digital Island and Exodus have been managed by one business division and marketed in the U.S. as Exodus, a Cable & Wireless Service and in the rest of the world as Cable & Wireless. Supported by Cable & Wireless' powerful global infrastructure and financial strength, the combined business is uniquely positioned to provide managed hosting and interactive web services for business customers. About Cable & Wireless Cable & Wireless is a major global telecommunications business with revenue of over 5.9 billion pounds Sterling (US$8.6 billion) in the year to 31 March 2002 and customers in 80 countries and 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. Exodus and the Exodus logo are trademarks of Cable & Wireless Internet Services, Inc., and are registered in certain jurisdictions. All other marks are property of their respective owners. Note: Cable & Wireless had announced that it has entered into a definitive agreement to transfer its U.S. retail voice customer base to a wholly-owned subsidiary of Primus Telecommunications Group, Inc. ("Primus") for an aggregate maximum consideration of US$32 million in cash, payable over approximately two years. The disposal is part of Cable & Wireless' restructuring of its US business, announced in its preliminary statement of results in May 2002. CONTACT: Cable & Wireless Analysts, Rolyn Acosta Phone: +1-415-738-4643 E-mail: rolyn.parker@cw.com Home Page: http://www.cw.com MARCONI PLC: Obtains GBP2 Million Contract With Railtrack --------------------------------------------------------- Marconi's (MONI) Transportation division has won a new o2 million contract from Railtrack to upgrade the U.K. rail infrastructure company's telecommunications concentrator at Bletchley in Bedfordshire. The agreement is the latest in a string of successes for Marconi Transportation and follows the company's recent award of a Contractors and Maintenance Assurance Case by Railtrack, enabling it to bid as a prime contractor in the o500 million U.K. rail communication market. Marconi's Transportation division will design, supply, install, test and commission a Signal Post Telephone concentrator based on Private Automated Branch Exchange (PABX) technology. The existing system has reached the end of its life expectancy and is no longer supported by its manufacturers. The upgrade is expected to be complete by December 2002. The concentrator upgrade is a new contract and is part of the West Coast Route Modernisation (WCRM) programme. Marconi is already delivering a communication solution for the London to Manchester route under previously announced agreements worth a total of o94 million. Peter Housley, Railtrack Manager, said: "We are pleased to have Marconi Transportation on board for this important project, part of the Core Investment Programme. Introduction of an industry standard type-approved PABX concentrator will allow the system to be operated from Interim Control Points, being provided separately as part of the WCRM upgrade." Under the latest agreement Marconi will install its XMP1 transmission equipment at Railtrack's Bletchley signalling control centre, as well as providing services including system design, project management and installation and commissioning. "Marconi's continuing success in the Transportation sector owes as much to its establishment of a dedicated rail delivery team as to its expertise in communication technology," said Marconi Transportation Business Development Manager Andy Spink. "This agreement, won as a competitive tender, is especially significant as it is our first as a prime contractor following our award of a contractors core assurance case by Railtrack earlier this year." Notes to Editors Private Automated Branch Exchange A Private Automated Branch Exchange (PABX) is a telephone switch linking a private telephone network to the public telephone system. The U.K. Rail Network The U.K has 16,500 km of rail infrastructure, consisting of track and signalling control equipment, route structures, stations and depots. Railtrack, the network operator spent around o570 million on telecommunications and related services in 2001, according to the Strategic Rail Authority. Safety, reliability and a need to interface into legacy communications systems are the prime drivers of its communications requirements. About Marconi Transportation Marconi Transportation is part of the Integrated Systems group and has over 30 years' experience of providing integrated communications systems and services for the transportation industry. Its professional staff is currently delivering a number of high profile communications projects in the Rail, Road and Air industries. Its consultants and design engineers are committed to delivering tailored solutions based on complex network integration, high performance service provision and best of breed products. Its customer services division is committed to providing the best possible support for customers' systems and networks on a 24x7x365 basis. Additional information about Marconi Transportation can be found at www.marconi.com/integratedsystems About Marconi plc Marconi plc is a global telecommunications equipment and solutions company headquartered in London. The company's core business is the provision of innovative and reliable optical networks, broadband routing and switching and broadband access technologies and services. The company's aim is to help fixed and mobile telecommunications operators worldwide reduce costs and increase revenues. The company's customer base includes many of the world's largest telecommunications operators. The company is listed on the London Stock Exchange under the symbol MONI. RAILTRACK PLC: Notice of Stock Exchange Listing Cancellation ------------------------------------------------------------ Following notification from the Financial Services Authority that it cancels the securities* set out below from the Official List, the London Stock Exchange cancels those securities from trading. The following securities are, therefore, cancelled from their official listing on the LSE with effect from the time and date of this notice. The listings for the following securities have been cancelled from October 11, 2002, 08:00 AM at the request of the company. RAILTRACK PLC 3.5% Exchangeable Bonds Due (0-539-162)(XS0095053699) March 18, 2009 fully paid (Represented by notes to bearer of GBP1,000 or integral multiples thereof) (Regulation S) 3.5% Exchangeable Bonds Due (0-539-690)(GB0005396907) March 18, 2009 fully paid (Registered) 3.5% Exchangeable Bonds Due (0-539-173)(XS0095054234) March 18, 2009 fully paid (Represented by notes to bearer of GBP1,000 or integral multiples thereof) (Rule 144A) 5.875% Bonds due (0-481-241)(XS0093095270) December 29, 2028 fully paid (Represented by bonds to bearer of GBP1,000, GBP10,000 & GBP100,000 each) 5.875% Bonds due 2009 (0-684-910)(XS0097567282) fully paid (Represented by bonds to bearer of GBP1,000, GBP10,000 and GBP100,000 each) 7.375% Bonds due 2022 (0-170-033)(XS0081575531) fully paid 9.125% Bonds 2006 (0-721-323)(XS0067712629) fully paid (Bearer) 9.125% Bonds due 2006 (0-721-334)(XS0067712629) fully paid 9.625% Bonds due 2016 (0-721-345)(XS0067712975) fully paid (Registered in denominations of GBP1,000 or integral multiples thereof) 9.625% Bonds due 2016 (0-722-111)(XS0067712975) fully paid Index Linked Notes due (0-845-751)(XS0101579430) September 21, 2009 fully paid (Represented by notes to bearer of EUR100,000 each) If you have any queries relating to the above, please contact Securities Management at the London Stock Exchange on 020 7797 1579. TXU EUROPE: Standard & Poor's Lowers Ratings to BBB- From BBB+ -------------------------------------------------------------- Standard & Poor's Ratings Services downgraded the long-term corporate credit and senior unsecured debt ratings on TXU Ltd. and its European subsidiaries to BBB- from BBB+. According to the rating agency, the action follows "a material deterioration in the company's credit quality during 2002." S&P also placed the long-term ratings of TXU Europe and subsidiaries on CreditWatch with negative implications, warning that the company's rating will further be lowered to non- investment-grade soon. The rating agency attributes TXU Europe's weak financial performance in 2002 to "The company's exposure to fixed-price power purchase contracts, which are significantly above-market; on-market purchases for 2002 made prior to the collapse in wholesale prices; intense retail supply competition leading to a loss in profitable in-market customers, and increased out-of- market customer churn; and poor working capital management." The outlook was assigned based on the company's immediate liquidity pressures stemming from rating triggers in borrowing and energy trading contracts. ********** 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. * * * End of Transmission * * *