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/raid1/www/Hosts/bankrupt/TCREUR_Public/021025.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 25, 2002, Vol. 3, No. 212 Headlines * F R A N C E * ALCATEL: Main Subsidiary Plans New Restructuring Measures NORTEL NETWORKS: Deploys Optical Network for European Commission VIVENDI UNIVERSAL: Has No Plan of Issuing Bonds for Cegetel * G E R M A N Y * DEUTSCHE TELEKOM: Search for New Chief Executive Continues HVB GROUP: Posts Heavy Losses in the Third Quarter HVB GROUP: Elects New Chairman, Focuses on Core Strategy HVB GROUP: Places Financial Strength Ratings on Review KIRCHMEDIA: Mediaset Denies Come Back to the Bidding * P O L A N D * DAEWOO-FSO: Shareholders Decide to Put Up New Company LOT POLISH: Plans to List on Warsaw Bourse in 2004 NETIA HOLDINGS: To Decide on Re-Adopting Capital Increase * S W I T Z E R L A N D * ABB: Asbestos Lawsuits Would Not Drag Group - Chief Executive SWISS LIFE: Opens New Holding Structure And Capital Increase ZURICH FINANCIAL: Considers New Pension Minimal Rate Too High * U N I T E D K I N G D O M * ABERDEEN ASSET: Shares Hit by REOIT Pull-Out Announcement CITY & GENERAL: Notice of Effective Date of Scheme of Arrangement CORUS GROUP: Agrees to Proposed Sale of Aluminium Businesses EGG PLC: Narrows 9th Month Pretax Loss to GBP3.9 Million LEICESTER CITY: Finally Succumbs to Administration P&O PRINCESS: Releases Results for the Third Quarter TADPOLE TECHNOLOGY: Releases New Instant Messaging Solution TEXON INTERNATIONAL: Notice of Meeting for Scheme of Arrangement TXU EUROPE: S&P Lowers Ratings on TXU Europe Funding's Notes =========== F R A N C E =========== ALCATEL: Main Subsidiary Plans New Restructuring Measures --------------------------------------------------------- Alcatel CIT, the main French subsidiary of the Alcatel group (Paris: CGEP.PA and NYSE: ALA), has notified the works council that further restructuring measures will be required due to the continuing weakness of the worldwide and domestic telecom market. As a result, the program of cost reductions will be intensified and staff will be adapted to market conditions. In particular this will lead to 1,060 redundancies in 2003, impacting all of the company's activities. Alcatel CIT should employ around 7,000 people at the end of 2003. Alcatel CIT has proposed to begin negotiations with employee representatives in order to identify the most appropriate solutions and to agree on the methods to be employed. This announcement is part of the restructuring measures recently announced by the Group. 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. NORTEL NETWORKS: Deploys Optical Network for European Commission ---------------------------------------------------------------- Belgacom, the Belgian national telecommunications operator, and Nortel Networks (NYSE:NT) (TSX:NT.) have deployed an optical network for the European Commission under a contract between Belgacom and the European Commission. "By choosing Nortel Networks OPTera Metro 5200 Multiservice Platform, Belgacom has been able to deploy a fully protected optical network connecting all 120 European Commission sites," said Christian Dezangre, unit manager, government branch, Belgacom. "Nortel Networks continues to work closely with Belgacom to put in place next generation optical equipment for a variety of its customers," said Peter Newcombe, who leads the Optical Networks business for Nortel Networks in Europe, the Middle East and Africa. "We are committed to providing cost-effective, resilient and reliable metro optical equipment, and this long-term commitment has led to Nortel Networks being one of the leaders in this market." Optical networks overcome the distance limitations of traditional, copper-based networks, offering virtually unlimited bandwidth between connected locations. The aim is to eliminate network congestion for network services like Internet access, and for inter-office applications like data storage and remote computing, as well as to pave the way for multimedia traffic. Belgacom chose Nortel Networks OPTera Metro 5200 for its high reliability, proven performance, and cost-effective delivery of Gigabit Ethernet services in metropolitan environments. Carrier grade availability and management of service levels, driven by the need for business continuity, were key criterion in Belgacom's selection of optical protection and centralized management facilities. Nortel Networks Optical Ethernet solution using OPTera Metro 5200 provides network reliability and performance to support real- time, mission critical applications. OPTera Metro 5200 is a forecast-tolerant, dense wavelength division multiplexing (DWDM), data-optimized, platform for metropolitan access and interoffice applications. It supports 32 wavelengths of bandwidth using the power of DWDM and delivers 10 gigabits per wavelength scalability, along with a network- modeling tool that simplifies the deployment and operation of efficient DWDM networks. Deployed in more than 1,000 customer networks in 65 countries, Nortel Networks end-to-end optical network portfolio includes next generation SONET/SDH, optical switching products, photonics (WDM), and Optical Ethernet products. Nortel Networks has deployed more than 250,000 network elements globally. 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 OPTera are trademarks of Nortel Networks. CONTACT: NORTEL NETWORKS Ben Roome Phone: +44 1628 43 3113 E-mail: benroome@nortelnetworks.com VIVENDI UNIVERSAL: Has No Plan of Issuing Bonds for Cegetel ----------------------------------------------------------- Vivendi Universal has issued an official statement to emphasize it has no plans of issuing bonds convertible into Vivendi Environnement shares in order to finance any possible exercise of its preemptive right on Cegetel shares. The French media company needs at least EUR4 billion by October if it intends to contest a EUR13.07 billion bid for control of Cegetel from Vodafone Group PLC. Vodafone has offered BT and SBC, two shareholders in Cegetel, a total of EUR6.3 billion. Vodafone has even offered Vivendi EUR6.77 billion for its own Cegetel shares. Chairman Jean-Rene Fourtou has been in talks with banks since Vodafone launched its bid, but lenders are said to be reluctant to support the move without further asset sales as assurance. Cegetel, France's second largest telecom player, is valued for its 80% stake in SFR, the country's second biggest wireless operator. Vivendi Environnement SA is the water distributor business of Vivendi Universal, which sold its 31.4% share in U.K.'s South Staffordshire Group. ============= G E R M A N Y ============= DEUTSCHE TELEKOM: Search for New Chief Executive Continues ---------------------------------------------------------- The prospect of Deutsche Telekom finding a new head soon is again dampened after Gottfried Dutin,, vice president at Philips Electronics, ended all speculation about his moving to Germany. According to Europemedia, Philips Germany even released an official statement saying that Dutin, did not have any contact with Deutsche Telekom or the commission specifically tasked to find a new Telekom chief. Reports that former Minister for Economics Werner Mueller, has been asked to take up the post, also remained unconfirmed, says Europemedia. The chairman of Infineon Technologies AG, Ulrich Schumacher, earlier turned down the offer, saying he intend to focus on Infineon's launch to become one of the world's top four chipmaker by 2007. Klaus Zumwinkel, the head of Germany's post office who was considered as possible candidate, also junked the offer early in the month. 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. CONTACT: DEUTSCH TELECOM AG Friedrich-Ebert-Allee 140 53113 Bonn, Germany Phone: +49-228-181-0 Fax: +49-228-181-8872 HVB GROUP: Posts Heavy Losses in the Third Quarter -------------------------------------------------- Dieter Rampl to be new speaker for HVB Group's Board of Managing Directors as of January 1, 2003 - Transformation of HVB Group with sharpening of competence profile - Start in 2003 -The Board of Managing Directors appointed Mr. Dieter Rampl to be speaker of the Board of Managing Directors at yesterday's meeting. The Supervisory Board approved this decision in its meeting today. -Dr. Albrecht Schmidt is appointed to be the chairman of the Supervisory Board as of January 1, 2003; Kurt F. Viermetz will take on the position of Deputy Chairman. -HVB Group plans a stronger concentration on the European private and mid-cap business and separation of domestic commercial real estate finance business from the HVB Group - Financial basis for the start in 2003 will be set in consolidated financial statements for 2002 - Analyst conference tomorrow at 12:00 noon in Munich on Group strategy (Dr. Albrecht Schmidt and Dieter Rampl) and on nine-months results for 2002 (Dr. Wolfgang Sprissler) Highlights: nine-months results -After a loss of ?447m in the third quarter, the cumulated 9- months results before taxes totals ?264m (-75,8%) -Increasing risk provisions by 85.5% as per September 30, 2002 to ?2,476m due to a clear deterioration of the economic environment and a dramatic setback of the capital- and real estate markets - Cost reduction per September 30, 2002 excluding restructuring costs by 6%, including restructuring costs by 3.3% to ?5.545m; Q3 vs. Q2 reduced by 3.6% to ?1, 777m, cost-cutting measures effective. - Step-up cost-cutting initiatives with new target for cost basis of below ?7.0 bn already in 2003 (former target: ?7.5bn in 2004) Transformation of HVB Group - The HVB Group will focus its competence profile: new definition of business focus as a European private and mid-cap customer bank, supplemented by focused capital market business and structured financings. - The value-added possibilities for our shareholders are strained by the heterogenity of current business models in the HVB Group (private -/corporate customers and trading business as well as commercial real estate finance). - The HVB Group therefore wants to separate itself from its mortgage bank subsidiaries. The preferred model for separation is the spin-off of these operations as an independent "Real Estate" Group with a balance sheet sum of over ?160bn . This model will be investigated until the end of this year. Also under consideration are alternatives such as the sale of parts of today 's real estate business segment and/or the merger with another specialist in the market. -Private customer mortgage banking will remain a core product for distribution in the business segment Germany. Furthermore, the real estate structured finance business will become part of the business segment Corporates & Markets. - Together with an additional package of measures to strengthen its business focus, the HVB Group will improve its capital ratios and its risk profile. By separating the Group's mortgage bank holdings, the Group's risk assets alone will be reduced by 14% to some ? 300bn and the funding volume reduced by over 50% to approximately ?20bn. - The financial basis for the start in 2003 will be set in the consolidated financial statements for 2002. Results after nine-months marked by difficult environment After a weak third quarter, the HVB Group's income statement at September 30, 2002 is marked by underlying economic conditions which have deteriorated further, an expansion of the wave of insolvencies and an unexpectedly strong level of price deterioration on the capital markets. Developments in detail: Despite restructuring charges of ?225m, administrative expense, at ? 5,545m, remained 3.3% below the annual figure for the previous year. Adjusted for restructuring charges, administrative expense fell by 6%. The cost-income ratio (excluding restructuring costs) came to 70.2% (2001: 67.7%). Compared with the previous quarter, administrative expense is another 3.6% lower (? 1,777m). Aside from stringent cost management, this decline is due to consistent adjustment of capacities: since the end of 2001 the number of branch offices has been reduced by 146 (6.5%) to 2,092. The number of employees has been reduced by 2,757 (4%) to 66,763. We have achieved two-thirds of our goal of staff reduction of 9,100 by 2004. In view of the weak markets, dampened prospects for earnings, and increase of risk provisions, we will strive harder to reduce costs: We have increased total synergies by 2004 by ?500m to ?1.7bn. In addition, already in 2003 we are aiming to reach a cost level in the Group of below ?7.0bn (instead of ?7.5bn in 2004). As for operating income, net interest income in the isolated third quarter (?1,633m) rose a gratifying 3.1% over the previous quarter. At ?4,986m after nine months, however, it came to 5.7% below the prior-year figure. The causes, as already at the halfyear, are the intentional reduction of risk assets, lower earnings from participations, and final consolidation and exchange rate effects. Due to lower earnings in securities and deposit banking business, net commission income, in line with the market trend, contracted by 6.7% to ?2,026m. Trading profit developed satisfactorily: despite weak capital markets, it rose 3.8% to ?493m. Adjusted for one-off effects, total operating income (?7,578m) shrank 4,3% compared with the first nine months of the previous year. In the third quarter, the situation in terms of provisions for loan losses worsened additionally due to the unexpected strong deterioration of the economy leading to a higher number of insolvencies as well as rating downgrades of our customers. In this unusually difficult year we - on the basis of today's information - expect risk provision requirements of ?3.3bn for the entire year. After nine months we have therefore raised risk provision to ?2,476. We have increased the coverage-ratio for non-performing loans to 101% due to increased volatility on the risk-provision side compared with the end of 2001. In the third quarter we achieved further sales proceeds and shed non-strategic holdings: Net income from investments after nine months came to ?970m (prior year: ? -11m). Net income before taxes amounted to ?264m (-75.8%), net income after taxes was ?126m (-82.5%). Profit totaled ?97m after deducting minority interests (-85,5%). The adjusted IAS earnings per share amounted to ? 0.49 (prior-year period: ?1.57), while return on equity, also adjusted for amortization of goodwill, was 1.8%. In the course of the year, risk assets were reduced sharply by ?12.5bn (-3.5%), among other things by securitization. The lending volume contracted 2% to ?445bn. The core capital ratio (BIS) is 5.7% (2001: 6.0%). Outlook No fundamental improvement in earnings is to be expected by the end of the year, however, the introduced cost-cutting measures will clearly reduce administrative expenses further. We have enforced our cost-cutting program. If the markets remain weak - as we assume - and we do not introduce extraordinary measures, payment of the dividend will be questionable. To see full Financial Release: http://bankrupt.com/misc/HVB.pdf HVB GROUP: Elects New Chairman, Focuses on Core Strategy -------------------------------------------------------- In agreement with the Supervisory Board, the Board of Managing Directors at its meeting yesterday unanimously elected Dieter Rampl as the new spokesman. This was approved by the Supervisory Board at its meeting today. To implement this change in leadership at the top level of the bank as rapidly and efficiently as possible in view of the great challenges in this difficult time, both this and subsequent changes will be carried out already at the beginning of fiscal 2003. Kurt F. Viermetz, chairman of the Supervisory Board, and Dr. Richard Trautner have therefore relinquished their mandates on the Supervisory Board and Dr. Albrecht Schmidt will relinquish his mandate on the Board of Managing Directors, all with effect from December 31, 2002. At its meeting today, the Supervisory Board resdolved to have Dr. Albrecht Schmidt appointed member of the Supervisory Board by the Registry Court with effect from January 1, 2003 and elected him from this time on as chairman of the Supervisory Board. Kurt F. Viermetz was requested to take over the office of deputy chairman from Dr. Richard Trautner. Kurt F. Viermetz commented: " A seamless and rapid transition to the new management is in the interest of the entire Group. In this way, the new team headed by Dieter Rampl will have the opportunity to continue rapidly developing the strategic positioning of the HVB Group in the markets and European regions. To carry out this change of leadership without frictional losses and at the same time ensure entrepreneurial continuity, I have, after agreement with the Supervisory Board, relinquished my mandate as chairman of the Supervisory Board as of this date." Dr. Albrecht Schmidt stated: "In electing Dieter Rampl as the new chairman of the Board of Managing Directors, we have a person associated with our bank over many years who, with a younger Board team, enjoys the confidence of customers, shareholders and staff. This sound foundation of full support will enable us to successfully implement the constant changes and adjustments of our bank to ever new market and customer demands. Together with the Supervisory Board, the Board of Managing Directors thanks Kurt F. Viermetz for his unfailing commitment and successful work as chairman of the Supervisory Board in a difficult period and is pleased that he will continue to provide our bank with advice and support in this prominent position. At the same time we also express our gratitude to Dr. Richard Trautner, who over decades on the bank's Board of Managing Directors and later as deputy chairman of the Supervisory Board contributed so substantially to the Group's success in good times and bad." Enhancing the HVB Group's profile by further focusing on the core strategy HVB will continue to enhance its profile as one of the leading banks in Europe for business with retail customers and Mittelstand companies. To this end, the next strategic step after establishing HVB Real Estate will now be taken. HVB will bundle all its mortgage bank holdings in a real estate financing group. Along with HVB Real Estate, this group will include FGH Bank in the Netherlands, PBI in Luxembourg, Westf"lische Hypothekenbank and W�rttembergische Hypothekenbank. Private real estate financing operations will remain part of HVB's retail customer business. Real estate structured financing business, which is doing very well, particularly in the U.S. and Britain, will also remain in HVB and will become part of Corporates & Markets. The new real estate financing group, with total assets of over ?164 billion, will be the new Number Two in the real estate market. It will be spun off from the HVB Group and operate independently in the market and will thus be fully able to capitalize on its strength. The preferred model for separation is the spinoff as an independent group. Other alternatives under consideration are the sale of parts of today's business segment and/or a merger with other partners. The Group will thus separate core competencies and business segments, facilitate management, and reduce complexity and free up capital. In parallel, the HVB Group will strengthen the entire Group by expanding its cost-cutting program and complete it earlier than planned. Already in 2003 administrative expense will be reduced to under ?7 billion, making ?500 million less than so far planned. By 2004 a total of ?1.7 billion (?1.2 billion so far) will be achieved through synergies and cost reductions. At the same time, in 2002 risk assets of ?10 billion will be reduced to improve the core capital ratio. By March 2003 other steps will be taken to shed peripheral activities, lending processes within the Group and Group organization will be tightened up through a more functional orientation of the business segments and subsidiaries toward sales. HVB Group posts operating profit before loan-loss provision of ?2.03 billion As of September 30, 2002 the HVB Group posted a operating profit before risk provision of ?2.03 billion - after ?2.7 billion in the comparable prior-year period. Pre-tax profit came to ?264 million ?1,093 million in the comparable prior-year period (down 75.8 percent). Net interest income fell 5.7 percent to approximately ?5 billion. Loan-loss provisions rose to ?2,48 billion on account of the high number of insolvencies in Germany and the deteriorating credit standing of German and foreign debtors for the first nine months. This corresponds to an increase of 85.5 percent over the previous year. As securities and custodial business weakened once again, net commission income, at ?2.03 billion, slipped 6.7 percent below the comparable figure for the previous year. Net commission income accounted for 26.7 percent (2001: 25.5 percent) of total operative revenues. Trading profit, which rose 3.8 percent to ?493 million, was satisfactory. Stricter cost management enabled the bank to depress administrative expense distinctly below the prior-year figure to ?5.55 (down 3.3 percent). Without the planned restructuring expenses of ?225 million contained in this figure, it would be even 6 percent lower. The cost-income ratio came to 70.2 percent (2001: 67.7 percent) excluding restructuring expenses. Return on equity adjusted for amortization of goodwill at September 30, 2002 was 1.8 percent. CONTACT: Cornelia Klaila, Tel. (089) 378-26017 E-mail: cornelia.klaila@hvbgroup.com HVB Group Press Department Am Tucherpark 16 80538 Munich Germany Tel.: +49 (89) 3 78 - 2 58 01 / -2 55 12 Fax: +49 (89) 3 78 - 2 56 99 E-Mail: press@hvbgroup.com HVB GROUP: Places Financial Strength Ratings on Review ------------------------------------------------------ Moody's placed under review for possible downgrade the unsecured, secured, and financial strength ratings of HVB Group and its subsidiaries. The action follows the group's announcement of an unexpected sharp rise in loan loss provisions for the rest of the year and the expectation of some major restructuring plans. The negative outlook for HVB's long-term and financial strength ratings takes into consideration that the remainder of 2002, and very possibly, 2003, will be characterized by poor profitability. Moody's warns that, "the announced unexpected sharp rise in loan loss provisions for the remainder of this year - taking total expected loan-loss provisions for 2002 to ?3.3 billion - raises additional concerns with respect to the true loss contents of HVB's loan portfolio." The review of the rating agency will touch on assessing the announced shift in HVB Group's strategic plans amidst difficulties in the German banking industry. Yet, Moody's notes that HVB Group remains well positioned in its core markets. It clarifies that "it does not see any material threat to the group's solvency and liquidity." Headquartered in Munich, Bayerische Hypo- und Vereinsbank is Germany's second largest banking group. As of 31 December 2001, the group had consolidated total assets of EUR 728 billion. The following ratings of HVB and its major subsidiaries are under review for possible downgrade: Bayerische Hypo- und Vereinsbank AG: A1 Senior long-term debt, issuer and deposit ratings; Aa1 mortgage and Aaa public-sector Pfandbriefe; A2 long-term subordinated debt; A3 subordinated Tier 3; B- bank financial strength rating. - HVB Bank Ireland: Issuer and deposits ratings at A1. - HVB Real Estate Bank AG: A1 Senior long-term debt and deposit ratings; Aa1 mortgage and Aaa public-sector Pfandbriefe; A2 long- term subordinated debt; C+ bank financial strength rating; P-1 short-term deposit. - Bank Austria Creditanstalt AG: A1 Senior long-term debt and deposit ratings; A2 subordinated debt. - Bayerische Hypo- und Vereinsbank AG, Paris Branch: A1 Senior long-term debt and deposits, - Bayerische Hypo- und Vereinsbank AG, Singapore Branch: A1 Senior long-term debt; A2 subordinated debt rating. - Bayerische Hypo-und Vereinsbank AG, Hong Kong Branch: A1 Senior long-term debt. - HypoVereinsbank Overseas Finance N.V.: A1 Senior long-term debt rating; A2 long-term subordinated debt. - HypoVereinsbank Finance N.V.: A1 Senior long-term debt rating; A2 long-term subordinated debt. - HypoVereinsbank Luxembourg S.A.: A2 Issuer rating and deposit ratings; A3 subordinated debt; Baa1 preferred stock rating; C+ financial strength. - HVB Funding Trust, II, III, IV, V, VII, VIII...A3 preferred stock rating. - Wuerttembergische Hypothekenbank AG: A2 senior long-term debt and long-term bank deposits; A3 subordinated debt; Aa2 mortgage and Aa1 public-sector Pfandbriefe; P-1 short-term deposit rating; C+ financial strength rating. - Westfaelische Hypothekenbank AG: A2 senior unsecured and long- term bank deposits; A3 subordinated debt; Aa2 mortgage and Aa1 public sector Pfandbriefe. P-1 short-term deposit rating. -Westhyp Finance BV: A2 Senior long-term debt; A3 subordinated debt. -Bayerische Hypotheken-und Wechsel Bank AG: A1 Senior long-term debt; A2 subordinated debts; Aa1 mortgage and Aaa public sector Pfandbriefe. The following ratings were confirmed: - Bayerische Hypo- und Vereinsbank AG: Short-term deposit rating at P-1. - Bank Austria AG: Bank financial strength rating at B-; P-1 short-term deposit rating. - HVB Ireland: Bank financial strength rating at C-; P-1 short- term deposit rating. - Westfaelische Hypothekenbank: Bank financial strength rating at C. KIRCHMEDIA: Mediaset Denies Come Back to the Bidding ---------------------------------------------------- Italian television group, Mediaset, which previously dropped in the bid for KirchMedia's assets, denied reports that it is re- joining the bidding. According to Europemedia, Mediaset released a statement saying, "Mediaset group has not concluded any agreement to enter the TF1- Haim Saban consortium, aiming to present a bid for KirchMedia." Munich-based Kirch, which owns numerous film library and sports right and controls Germany's largest commercial broadcaster ProSienbenSat.1 Media, is offering its assets for sale after admitting insolvency in April. ProSiebenSat.1 is now being offered separately after management of the German media firm withdrew from the idea of selling the main business of the collapsed Kirch Group as a whole. =========== P O L A N D =========== DAEWOO-FSO: Shareholders Decide to Put Up New Company ----------------------------------------------------- The shareholders of Daewoo-FSO Motor Polska, an automobile plant in Warsaw and Daewoo's largest business in Poland, on Wednesday filed a motion to create a new company out of the troubled carmaker. According to AP, Daewoo-FSO's spokeswoman Krystyna Danilczyk says the move is seen to open a possible partnership with British carmaker MG Rover. Zbigniew Gryglas, a representative of Poland's Treasury said, "We are nearing a finale, but the negotiations are difficult and it's not clear yet whether they will be successful". The imminent deal could result to MG Rover taking 25% in the new company, as well as Poland's Treasury and Daewoo-FSO's creditors taking shares in exchange for debt. The Treasury holds 9.2 percent stake in the factory. The motion filed by the shareholders is still subject for approval by a court in Korea, where parent Daewoo Motor Co. filed for bankruptcy last November on a USD17 billion debt, and by the Korean company's creditors. Daewoo-FSO has suffered losses and has laid off workers. Last year, the company lost PLN1.1 billion after losing PLN2 billion in 2000. It is presently carrying a PLN4.8 billion (USD1.17 billion) debt burden. Daewoo Motors Corp. had two Polish Daewoo operations, a car factory in the eastern city of Lublin and a light-truck plant in the city of Nysa, which went bankrupt this year due to a lack of support from the Korean parent. Fortunately for Daewoo-FSO, shareholders on Wednesday have agreed to inject PLN1.6 billion of fresh fund to help it pay debts to Daewoo Motor Co. LOT POLISH: Plans to List on Warsaw Bourse in 2004 -------------------------------------------------- Chief Executive Litwinski said LOT Polish Airlines plans to be listed on the Warsaw bourse in 2004 after it completes its restructuring plan, Warsaw Business Journal says. The period is significant for the airline that hopes to resolve its ownership issue and see Poland joining the European Union on that year. "Our priorities are cost-cutting, joining the Star Alliance and ensuring LOT's competitiveness once the skies are open after Poland joins the EU," Litwi�ski said. After admitting that a strategic investor is unlikely to be found in the struggling industry, Mr. Litwinski is resolved that the purchase of Swissair stake in the airline by financial investors is likely to happen. He did not elaborate on the details on the sale which is currently being handled by SwissAir liquidators. LOT, which carried a record of 3.2 million passengers in 2001, has signed a co-operation and code-sharing deal with Austrian Airlines. The move is seen as the next step towards joining the Star Alliance airline network, which co-ordinates flight schedules, services and frequent-flyer points for member airlines, allowing for tighter cost control and a wider range of offers for passengers. NETIA HOLDINGS: To Decide on Re-Adopting Capital Increase --------------------------------------------------------- Netia Holdings S.A. (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services (in terms of value of generated revenues), announced today that it will hold an Extraordinary General Meeting of Shareholders in Warsaw on November 14, 2002, to re-adopt certain shareholders' resolutions from the Ordinary General Meeting of Shareholders held on June 18, 2002. Netia is proposing to re-adopt the resolutions regarding the issuance of series "H" shares, previously adopted by the Ordinary General Meeting of Shareholders on June 18, 2002, pursuant to resolutions adopted by the Extraordinary General Meeting of Shareholders on March 12, 2002, in connection with the Company's ongoing restructuring. Pursuant to Polish law, a resolution increasing the Company's share capital may not be filed with the registry court later than six months after its adoption. The re- adoption therefore extends the time during which the share capital increase can be registered until at least December 31, 2002. Arrangement proceedings in connection with Netia's restructuring were opened in Poland on May 15, 2002. CONTACT: NETIA (Investor Relations) Anna Kuchnio Phone: +48-22-330-2061 (Media) Jolanta Ciesielska Phone: +48-22-330-2407 or Taylor Rafferty, London Alexandra Jones Phone: +44-(0)20-7936-0400 or Taylor Rafferty, New York Jeff Zelkowitz Phone: 212/889-4350 ===================== S W I T Z E R L A N D ===================== ABB: Asbestos Lawsuits Would Not Drag Group - Chief Executive ------------------------------------------------------------- ABB Chief Executive Juergen Dormann assures that the Swiss holding company will not be driven into bankruptcy by the asbestos-exposure lawsuits which has pulled its Combustion Engineering unit in the U.S. Reuters says, the executive told Swiss newspaper Finanz und Wirtschaft: "That [bankruptcy] could happen to our Combustion Engineering unit, but not for the group because the claims against the holding company or other parts of the group will lead nowhere.'' Mr. Dormann also dismisses the idea of a capital increase for the group. His pronouncements came after the group's shares plummeted to 62% on concern about its earnings prospects and exposure to asbestos exposure-related suits, the report notes. Mr. Dormann confirmed it is trying to limit the damage resulting from the asbestos suits, and that it has learned a lot from a recent settlement of cases in West Virginia. ABB's head is confident it has backing from credit banks, saying "They are accompanying ABB in a constructive manner and they will stand by us throughout this." He also dismisses the near term possibility of cutting its capital or making a fresh share issue--confident that the group's core activities are good. He admitted, though, that a restructuring of a capital might come after three to five years. SWISS LIFE: Opens New Holding Structure And Capital Increase ------------------------------------------------------------ 1'349 of Swiss Life/Rentenanstalt's shareholders voted at the extraordinary general meeting of 23 October 2002, for the benefit of Swiss Life Holding, to revoke the clause in the articles of association restricting a shareholder's voting rights to 10% of the share capital. In doing so they paved the way for the introduction of the holding company structure and the announced capital increase at the level of Swiss Life Holding. This capital increase is to raise equity funds for the Group amounting to CHF 0.9 to 1.2 billion. A considerable number of larger institutional investors have already indicated that they will take part. The Swiss Life Group intends to strengthen its total core capital and introduce a holding company structure. The moves are aimed at creating the necessary flexibility to implement the new strategy but also to put the conditions in place to ensure optimal financial planning for the Group. The necessary resolutions in this regard were placed before the extraordinary general meeting of shareholders on 23 October 2002. For the introduction of the holding company structure the new Swiss Life Holding launched a public exchange offer on 23 September 2002 for all Swiss Life/Rentenanstalt shares. This was already accepted by more than 75 percent of the shareholders during the regular offer period. The extension period begins on 24 October and ends on 6 November 2002. During this time, the remaining shareholders have another opportunity to exchange their Swiss Life/ Rentenanstalt shares for shares in Swiss Life Holding. The subscription ratio and subscription price will be announced on 13 November 2002. The subscription period runs from 19 to 27 November 2002. Trading in subscription rights runs from 19 to 26 November 2002 and the first day of trading for the new shares is 28 November 2002. Following the introduction of the holding company structure the announced capital increase will be carried out at the level of Swiss Life Holding. The resolutions passed at the extraordinary general meeting regarding a regular and a conditional capital increase at the Swiss Life/Rentenanstalt level are intended for the unlikely eventuality that the public exchange offer cannot be completed. Only the permits and authorisations from the SWX Swiss Exchange and the competent foreign authorities are still outstanding for the exchange offer and the introduction of the holding company structure to go ahead. On the other hand, the resolution passed by the general meeting dealing with the creation of authorised capital is aimed at facilitating the flexible allocation of equity funds between Swiss Life Holding and Swiss Life/Rentenanstalt in any case. 1'349 shareholders took part in the extraordinary general meeting at the Hallenstadion in Zurich. They represented 6'552'188 votes or 55.78% of the enfranchised share capital. CONTACT: Marie-Therese Guggisberg E-mail: marietherese.guggisberg@swisslife.ch Phone: +41 1 284 49 09 Christoph Braschler E-mail: christoph.braschler@swisslife.ch Phone +41 1 284 47 12 General-Guisan-Quai 40 P.O. Box 8022 Zurich Home Page: http://www.swisslife.com ZURICH FINANCIAL: Considers New Pension Minimal Rate Too High ------------------------------------------------------------- Swiss insurance company Zurich Financial Services considers the government-imposed new minimal rate of return on workers' pensions still too high. The federal cabinet lowered the minimal rate to 3.25% from 4% on Wednesday, but basing on the current environment Zurich Financial holds only 3% would be appropriate. Zurich Financial, though, is open to the government's decision to regulate the minimum permitted rate of return at least ever two years, according to Dow Jones. It even deems it important and appropriate that the Swiss government wants to conduct its next assessment of the minimal rate of return next year because of the current market uncertainty, the report says. The Zurich Financial Services Group is an insurance-based financial services provider with an international network that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in approximately 60 countries and employs well over 70,000 people. On September 12, troubled Zurich Financial Services unloaded its UK-based venture capital firm--a move seen to indicate that the insurer is living up to its new strategy of focusing on core business. =========================== U N I T E D K I N G D O M =========================== ABERDEEN ASSET: Shares Hit by REOIT Pull-Out Announcement --------------------------------------------------------- The shares of fund manager Aberdeen Asset Management went down 23% to a new low of 25 p on Tuesday after news came out that the company is in danger to lose a major investment client and millions of pounds of property and other assets. Shares in Aberdeen have now fallen by 96 per cent from their peak of just over o7 in January of last year. After suffering massive losses, AAM-managed Real Estate Opportunities Investment Trust decided to put the management under review and had cut management fees to AAM on the income portfolio. Chris Fishwick, AAM director, has resigned as a director of REOIT. Citing statement from Real Estate, the Scotsman says, the trust is in talks with its existing advisers UBS Warburg and other concerned parties on suitable arrangements. The committee of autonomous directors set up to review the management of the firm says, "The company has agreed to pay o172,262 in fees currently due to the investment manager and has deferred payment of the balance." The trust lost almost GBP300 million in its income portfolio, which was heavily invested in split capital trusts. Its income portfolio of Real Estate went down from o333 million in July of last year to just o49 million last week. Major shareholders of Real Estate include AAM itself with 19%, Dawnay Day Corporate Finance with 16.2% and Jupiter Asset Management with 7%. CITY & GENERAL: Notice of Effective Date of Scheme of Arrangement ----------------------------------------------------------------- Notice is given that, by an Order dated October 3, 2002, made in the High Court of Justice of England and Wales, the scheme of arrangement proposed to be made between City General Insurance Company Limited and its Scheme Creditors pursuant to section 425 of the Companies Act 1985 which was voted on and approved by Schemed Creditor as at a meeting hel on August 16, 2002, was sanctioned. A copy of the Order was lodged with the registrar of companies on October 7, 2002, and the Scheme became effective on that date. Scheme Creditors whishing to claim in the Scheme must complete and return Claim Forms in accordance with the instructions accompanying them and the provisions of the Scheme by 23:59 on the Final Claims Submission Date, being January 7, 2003. Failure to do so will result in the Scheme Creditor concerned not being entitled to the claim in or receive payment under the Scheme. CONTACT: CITY GENERAL INSURANCE COMPANY LIMITED Suite 208, Coppergate House 16 Brune Street, London ECI 7NJ Phone: +44 (0) 20 7953 8367 Fax: +44 (0) 20 7953 8427 CORUS GROUP: Agrees to Proposed Sale of Aluminium Businesses ------------------------------------------------------------ Corus Group plc has today agreed in principle to the sale of its Aluminium Rolled Products and Extrusions businesses to Pechiney S.A. for EUR861 million (GBP543 million). The proposed sale to Pechiney substantially concludes Corus' divestment of its aluminium interests announced in March this year. On September 17, Corus completed the sale to Alcan Inc. of its 20 per cent. stake in Alouette, the Canadian aluminium smelter, for US$165 million (GBP107 million). Total gross proceeds received or due therefore total approximately GBP650 million (EUR1,031 million). Corus has two smelters at Delfzijl in the Netherlands and at Voerde in Germany. The smelters are not included in this proposed sale and will remain within Corus in the interim until ongoing negotiations with potential purchasers for them are completed. As previously stated, Kalzip, which is an integral part of Corus' Building Systems activities, will be retained within the Group. The purchase price of EUR861 million (GBP543 million) will be adjusted at completion to reflect interest bearing debt and other provisions, principally in respect of pension obligations, provided for by Corus. As at December 29, 2001 interest bearing debt amounted to EUR25 million (GBP16 million) and total provisions amounted to EUR97 million (GBP61 million). There will be a further adjustment to reflect changes in working capital through to completion. The net proceeds will be applied to reduce debt and further strengthen the Group balance sheet. The Businesses have operations in Germany, Belgium, Canada and China and, for the year ended December 29, 2001, generated EBITDA of EUR109 million, an operating profit of EUR57 million and profit before tax of EUR59 million on turnover of EUR1,549 million. The Businesses had net assets of EUR574 million at December 29, 2001 (estimated to be EUR595 million as at June 29, 2002). It is intended that a definitive sale and purchase agreement will be entered into following completion of internal consultation, advice and approval processes by both Corus and Pechiney. The completion of the sale is conditional, inter alia, on the approval of Corus shareholders, the European Commission and appropriate regulatory authorities in other jurisdictions including the U.S. Tony Pedder, Chief Executive of Corus, welcoming the sale of its downstream aluminium activities said: "As well as providing good value to Corus, the proposed sale to Pechiney secures the future of our Aluminium businesses, and represents the major step in the process of divesting our aluminium interests which I announced in March this year." Corus and Pechiney are legally prevented from entering into a binding sale and purchase agreement until the employee advice and consultation process is complete. The advice process with Corus' works councils has commenced. Corus Aluminium Rolled Products consists of rolling mills at Koblenz, Germany and at Duffel in Belgium, together with a 60 per cent interest in Corus LP (Canada) at Cap-de-la-Madeleine. Key markets include the aircraft, automotive, heat exchanger, shipbuilding, engineering and construction sectors. 3. Corus Aluminium Extrusions has plants in Vogt, Bonn and Bitterfeld in Germany; Duffel in Belgium and a 61 per cent interest in a joint venture with Tianjin Non-Ferrous Metal Group, China. Key markets include construction, transport and engineering. Rolled Products and Extrusions employ 4,700 people excluding around 100 associated with aluminium research, development and technology who will be retained by Corus. The Primary Aluminium business has around 1,100 employees. Pechiney is the world's fourth largest producer and converter of aluminium and: -- operates in all facets of aluminium production - bauxite, alumina, and primary aluminium; -- is a leading aluminium supplier to transport markets, industrial applications, construction, household appliances and packaging; -- is the world's third largest manufacturer of high value- added speciality packaging; and o has manufacturing operations in 24 countries. Under U.K. GAAP, Alouette contributed a pre-tax profit of GBP9.2m to the Corus results for the year ending December 29, 2001. The net assets attributable to Alouette as at December 29, 2001 were GBP53.7m (which includes GBP7.3m of working capital). The exchange rate used in this announcement is EUR1.585 perGBP1. CONTACT: Corus Corporate Relations Phone: +44 (0) 20 7717 4502/4505 Corus Investor Relations Phone: +44 (0) 20 7717 4503/4504 Credit Suisse First Boston Stuart Upcraft/Hugh Richards Phone: +44 (0) 20 7888 8888 EGG PLC: Narrows 9th Month Pretax Loss to GBP3.9 Million ------------------------------------------------------- "This has been another successful quarter for Egg. The U.K. business has delivered o9.4 million in profits in Q3 whilst acquiring a further 107,000 net new customers and keeping tight control of costs. We are excited about the development of our International business, and we are finalising preparations for our product launch in France next month" Paul Gratton, CEO, Egg plc Highlights: Group - Group operating income up 86% to o235.6 million (Sept 2001: o127.0 million) - Group loss before tax of o3.9 million (Sept 2001: o81.8 million loss) - Group loss per share 1.1p (Sept 2001: 7.8p) - Total group assets increased to o10.4 billion (Sept 2001: o7.8 billion) UK - U.K. profit before tax of o9.4 million for Q3 giving o18.1 million profit for the nine month period (Sept 2001: o78.2 million loss) - 107,000 net new customers acquired in the quarter (Q3 2001: 83,000) resulting in total customer base of over 2.4 million - Credit card balances grew by o126 million (Q3 2001: o27 million) and credit quality remains strong - Personal loans delivered record sales in Q3 with drawdowns of o269 million; up 79% on the previous quarter and 154% on the same period last year - Savings balances grew by o671 million in the quarter (Q3 2001: outflow of o291 million) - Egg's aggregation service, Money Manager, has 100,000 registered users International - Egg to launch first product in France in November - Total spend on international development is o22.0 million (Sept 2001: o3.6 million) of which o19.4 million relates to the new Egg France business Chief Executive Paul Gratton said: "This has been another successful quarter for Egg. Our core U.K. business continues to grow strongly and deliver profits. We acquired 107,000 net new customers at reduced unit marketing cost and overall the U.K. business delivered a profit of o9.4 million for the third quarter. "Egg Card continues to be our lead acquisition product and we are delighted to have reached 5% market share of new balances in just 3 years. We continue to monitor credit performance closely and the credit quality of our card portfolio remains strong. Our proposition continues to attract upmarket customers. "We are pleased with the uptake of our aggregation service, Egg Money Manager, which we launched earlier this year. Today, over 100,000 of our customers are registered users of this service. We will continue to introduce enhanced functionality to this service, in line with our stated objective to help people understand and manage their money more effectively and efficiently. "I am delighted to announce that Egg will launch in France in November as planned. We will be holding a press conference in France on 29 October to outline the launch proposition and will follow that up with an analysts' meeting in London on 30 October." To see Egg Plc's Full Nine Months Ended September 30, 2002: http://bankrupt.com/misc/EggPlc.pdf LEICESTER CITY: Finally Succumbs to Administration -------------------------------------------------- Leicester City, the club, which owns and operates the Leicester City Football Club, popularly known as the Foxes, was put into administration after it failed to reach agreement with creditors, says The Scotsman. The club is thought to have debts of about GBP30 million. Nick Dargan, Dominic Wong and Andy Peters from Deloitte & Touche have been appointed as administrators to settle Leicester's financial obligations and find a buyer. BBC TV presenter and former England footballer Gary Lineker is leading a consortium interested in taking over Leicester. Mr. Dargan agrees that, after a failed solvent restructuring, the protection of administration is necessary to a sucessful conclusion of negotiations. Mr Justice Park granted the administration order of the club. P&O PRINCESS: Releases Results for the Third Quarter --------------------------------------------------- Key points for the quarter* Operating profit increased by 10% to $204.7 million (Q3 2001: $186.5 million), despite the disruption to the booking cycle resulting from the events of 11 September 2001 Pre-tax profit increased by 7% to $184.2 million (Q3 2001: $171.5 million) Earnings per share/ADS ahead of expectations at 25.3c/$1.01 (Q3 2001: 23.6c/$0.94), an increase of 7% Passenger cruise days increased by 12% with occupancy at 102% Like for like reduction in net revenue yields of 5% with favourable exchange rates reducing the fall to 2% on an absolute basis Underlying unit costs reduced by 7%, with exchange rates movements and higher fuel prices giving a reduction of 3% on an absolute basis * comparisons are with the third quarter of 2001 Outlook No significant developments on booking trends since the trading update of 8 October 2002 No change to 2002 profit forecast Peter Ratcliffe, Chief Executive Officer of P&O Princess Cruises, commented: "This has been another good quarter. We have recorded solid results in line with our profit forecast earlier this month. This represents the fourth consecutive quarter since the events of September 11 in which profits have exceeded the same quarter in the previous year." 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 in operation offer 31,130 berths and is set to grow in the next two years with the acquisition of two additional ocean cruise ships and the delivery of 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 $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"). To see the company's full Statement of the Financial Report: http://bankrupt.com/misc/P&OPrincess.pdf CONTACT: P&O Princess Cruises plc Caroline Keppel-Palmer Phone: +44 20 7805 1214 +44 7730 732015 Brunswick Sophie Fitton Phone: +44 20 7404 5959 Home Page: http://www.poprincesscruises.com TADPOLE TECHNOLOGY: Releases New Instant Messaging Solution ----------------------------------------------------------- New Instant Messaging (IM) Solution Of Tadpole's Endeavors Technology Business Unit Promises To Transform Public IM Products Into Fully Interoperable Systems With Security Compliance, User Authentication and Audit Capabilities Endeavors Technology releases Magi Secure IM; presents unique opportunity for enterprises to seize full control over multiple popular IM environments such as AOL Instant Messenger and MSN Messenger without disrupting the instant messaging experience and existing network architectures Tadpole Technology plc, the mobile computing and network infrastructure vendor, announces that its Endeavors Technology business unit has released Magi Secure IM software for use with AOL Instant Messenger (AIM) and Microsoft's MSN Messenger products. The solution is the first in a suite of instant messaging products scheduled for release by Tadpole's secure Web software company to bring about full interoperability and corporate governance compliance of popular instant messaging (IM) products. Magi Secure IM is innovative technology and a business tool that singularly routes popular instant messaging products through a fully compliant and auditable cross-enterprise communications proxy. Its deployment will ease corporate concerns of lock-in to any one proprietary IM product, and provides a unique verification mechanism for enterprise IM communications. The release of Magi Secure IM is timely. According to David Smith, vice president and research director for Gartner: "The rapid proliferation of IM use has resulted in individuals employing a vital communication medium without forethought. E- mail followed a similar implementation pattern. It took more than 10 years before enterprises recognized and effectively addressed problems of security, reliability and business policy. Enterprises must pay proper attention to IM usage now, lest they repeat the painful lessons taught by e-mail." Magi Secure IM will work with independent IM clients in their unchanged native mode allowing enterprises, for the first time, to gain full control over employee messaging and chat sessions, whatever the IM environment. Magi Secure IM is a plug-in product and is transparent to the user. It supports the features and functionality of commercial IM products so there's no training, infrastructure change or switching costs involved in getting IM fully and finally back under corporate IT control. Magi Secure IM also improves large file getting and sending, and incorporates smart local-loop routing so that inside communications travel point-to-point internally. A principal feature of Magi Secure IM is its unique ability to look up corporate identities from popular IM buddy names and underwrite them with strong Public Key Infrastructure based authentications to avoid identity spoofing, and allow financial grade non-repudiation, tracking, and auditing. Endeavors Technology's unique approach of leaving the IM platform untouched to preserve the user experience, yet providing corporations with strong control mechanisms over instant messaging and chat rooms, supports the extended adoption of secure IM in businesses without further delay, and without lengthy lead times and high costs inherent in modifying network architectures. Enterprise IM Poised To Quadruple by 2004 Instant Messaging is no longer a consumer phenomenon, and Endeavors Technology has addressed the social, legal and technical issues surrounding non-secure instant messaging with its Magi Secure IM product. With over 40 million enterprise IM users, which research firm IDC expects to more than quadruple by 2004, IM remained, until today, a solution with a problem . rising fears over unmanaged use of IM within and beyond the corporate wall, forcing enterprises to choose between inside-the-firewall, self-managed solutions with little or no external interaction, or an outside-the-firewall approach with little or no security, trust, or control. "Like enterprise email adoption from 1985-1995, or Web server adoption from 1991-1997, enterprise instant messaging is at a point in its adoption cycle where organisations can only see business value if IM systems are interoperable and can be deployed securely within and beyond the corporate wall," said Bernard Hulme, Tadpole's group chief executive. "With Magi Secure IM, Endeavors Technology can secure major public IM services and deliver the definitive audit control mechanisms to the guardians of corporate knowledge and business communications." Interoperability, Interoperability, Interoperability The call for interoperability of popular IM products is growing across vertical industries. FIMA, the Financial Services Instant Messaging Association created recently by seven leading Wall Street banks is one example. Earlier this week, Endeavors announced its involvement with FIMA as a founding technology vendor to support the association's goals to bring about the interoperability of IM platforms across the financial services industry. Commenting on the release of Endeavors new interoperable-enabling secure IM solution, FIMA's Will Meldrom states: "Initiatives that bring about the interoperability of IM systems is welcome news to the financial services community. The launch of Magi Secure IM promises to be a step forward in this direction." Other calls include the oil industry. "The spot oil trading market has seen startling growth in the use of IM in the last 2 years, but now risks becoming a hostage to fortune if any one system dominates," says Philip Pollock, managing director of Aspen Oil Broking. "The interoperability between popular IM systems achieved through Endeavors Technology's cross-platform Magi Secure IM solution will eliminate those concerns at-a- stroke, and gives the added bonus of client and transactionional confidentiality, and archive retrieval." About Endeavors Technology Endeavors Technology, Inc. is a wholly-owned subsidiary of mobile computing and network infrastructure vendor Tadpole Technology plc (LSE-TAD, www.tadpole.com), which has plants and offices in Irvine and Carlsbad (California), and Cambridge, Edinburgh, and Bristol (UK). About Endeavors Technology's Magi Tadpole's Endeavors Technology subsidiary is the developer and vendor of Magi technology, an award-winning universal-access document collaboration system that transforms today's Web into a highly secure inter- and intra-enterprise collaboration network of files and Web resources. With Endeavors' core Magi Enterprise product, enterprises can implement ad-hoc Virtual Private Networks for collaboration very rapidly and affordably without disrupting existing applications, networks or work practices. Magi does this by effectively transforming unsecured, "read-only" Web networks into two-way trusted and transparent collaboration environments, through the use of such features as cross-firewall connections, advanced data extraction, an intuitive graphical interface, and universal name spaces generating "follow me URLs" for mobile professionals. CONTACT: Mike Brennan, Evolution Beeson Gregory - Phone: 020 7488 4040 Hugh Paterson, Patcom Media Phone: 0207 987 4888 TEXON INTERNATIONAL: Notice of Meeting for Scheme of Arrangement ---------------------------------------------------------------- Notice is given that by an Order dated October 4, 2002 the High Court has directed a Meeting to be convened of the Scheme of Creditors of Texon International Limited for the purpose of considering and, if thought fit, approving a Scheme of Arrangement proposed to be made between the company and the Scheme Creditors. The meeting will be held at 10:30 a.m. London time on October 30, 2002 at the offices of Cadwalader, Wickersham & Taft, 265 Strand, London WC2R 1BH. Scheme Creditors may attend and vote in person (or if a corporation, by a duly authorized representative) at the Meeting or they may appoint another person, whether such a person is not a Scheme Creditor, as their proxy to attend and vote in their place. Whether or not they intend to attend the Meeting, Scheme Creditors are requested to complete the Form of Proxy and Claim Form and return them to the Voting Agent at One Canada Square, London, E14 5AL marked for the attention of Trevor Blewer. Claim Form and Form of Proxy must be returned to the Voting Agent by 5:00 p.m. London Time on October 28, 2002 but, if not so received, may be handed to the Chairman of the Meeting at the Meeting itself. Each Scheme Creditor or his proxy will be required to register his attendance at the Meeting prior to its commencement. Registration will commence at 10:00 a.m. London time on October 30, 2002. Each Scheme Creditor or his proxy should arrive in sufficient time prior to the commencement of the Meeting in order to ensure completion of the registration. By the Order, the High Court has appointed Andrew john Owen Wilkinson or, falling him, Christopher John Hughes, to act as Chairman at the said Meeting, and has directed the Chairman to report the result of the Meeting to the High Court. In the event that the Scheme of Arrangement is approved by Scheme Creditors, a hearing before the High Court is necessary in order to sanction the Scheme of Arrangement. All Scheme Creditors are entitled to attend the High Court hearing in person or through a Counsel to support or oppose the sanctioning of the Schemed of Arrangement. It is expected that the High Court hearing will be held in the first week of November 2002 at the Royal Courts of Justice Strand, London WC2A 2LL. Copies of the Scheme of Arrangement, the Statement required to be furnished pursuant to Section 426 of the above-mentioned Act, the Form of Proxy to be used at the said Meeting and the Claim Form are available from Cadwalader, Wickersham & Taft, counsel to the Company, at 100 Maden Lane, New York, NY 10038 or 265 Strand, London WC2R 1BH quoting reference AJOW/PM. TXU EUROPE: S&P Lowers Ratings on TXU Europe Funding's Notes ------------------------------------------------------------ Standard & Poor's Ratings Services said Wednesday that it lowered its credit rating on the notes issued by TXU Europe Funding Ltd. to 'CC' from 'BBB+', and placed them on CreditWatch with negative implications, after the downgrade of the senior unsecured debt rating on TXU Eastern Funding Co. The rating on the senior unsecured debt issued by TXU Eastern Funding Co. acts as a supporting rating to the notes issued by TXU Europe Funding Ltd., a special-purpose entity that issued EUR500 million secured 7% notes on Nov. 29, 2000. The rating on TXU Eastern Funding Co.'s debt was lowered to 'CC' and placed on CreditWatch negative on Oct. 16, 2002. TXU Europe Ltd. guarantees TXU Eastern Funding Co.'s senior unsecured debt. The corporate credit rating on TXU Europe Ltd. was lowered to 'D' after the failure of one of its subsidiaries, The Energy Group Ltd., to pay the coupon on two yankee bonds that TXU Europe Ltd. had guaranteed. There is a high risk that TXU Eastern Funding Co. will default on its next interest payment, at which time the ratings on its debt would be lowered to 'D'. Because the debt acts as a supporting rating to the notes issued by TXU Europe Funding Ltd., this would result in the rating on these notes' also being lowered to 'D'. ************ S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam, Larri-Nil Veloso and Ma. Cristina Canson, 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 * * *