/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030304.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, March 4, 2003, Vol. 4, No. 44 Headlines * C Z E C H R E P U B L I C * UNION BANKA: Restructuring Program to Be Finalized Soon * F R A N C E * ALSTOM: To Embark on EUR1.15 Billion Worth of Asset Disposal RHODIA SA: Reorganizes Pharmaceuticals & Agrochemicals Division SUEZ SA: Confirms Sale of Remaining Holdings in AXA and Vinci VIVENDI UNIVERSAL: "Greenshoe" in Sale of Warrants Exercised * G E R M A N Y * BAYER AG: Responds to Public Trial of Baycol/Lipobay DEUTSCHE BA: EasyJet Pessimistic About Deutsche BA Acquisition DEUTSCHE TELEKOM: In Difficult Talks Regarding MTS Stake Sale GERLING-KONZERN: Moody's Downgrade Rating to Baa1 From A2 MOBILCOM AG: Sale of UMTS License for EUR1 Fails to Lure Buyers * I T A L Y * FIAT SPA: Posts Deeper Than Expected Loss for Year 2002 * L U X E M B O U R G * AGF LIFE: Actions Relating to Insurance Policy Under Inquiry MILLICOM INTERNATIONAL: Announces Extension of Exchange Offer * N E T H E R L A N D S * KONINKLIJKE AHOLD: Fitch Lowers Ahold to 'BB-' Watch Negative KONINKLIJKE AHOLD: Securities Class Action Suit Filed in New York KONINKLIJKE AHOLD: Faruqi & Faruqi Announces Class Action Suit KONINKLIJKE AHOLD: Charles J. Piven, Commenced Class Action Suit KONINKLIJKE AHOLD: Reassures Customers of Loyalty Stamps Value ROYAL KPN: Sells Participation in Ukrainian Mobile Communications UNITED PAN-EUROPE: Adopts Financial Accounting Standard 142 * N O R W A Y * PETROLEUM GEO-SERVICES: Admits Credit and Liquidity Problems * P O L A N D * BANK PEKAO: Announces Agreement of PolCard S.A. Shares Sale NETIA HOLDINGS: Court Registers Amendments to Netia's Statute * S W I T Z E R L A N D * ABB LTD.: Refuses to Comment on Potential Talks With Eiffage * U N I T E D K I N G D O M * ABBEY NATIONAL: Fitch Affirms Ratings Following Posting of Loss ABERDEEN ASSET: Wins Awards for Conventional Investment Trusts INDIGOVISION GROUP: Proposes to Return Cash to Shareholders MYTRAVEL GROUP: Advises on Retirement of Founder and Chairman PIZZAEXPRESS: Investors Want to Withdraw Deal With Johnson ROYAL & SUN ALLIANCE: Issues Notice of Year End-Results SPONSOR SERVICE: In Bankruptcy on Failure to Secure Loan WESTON MEDICAL: Lack of Financing Forces Administration ========================== C Z E C H R E P U B L I C ========================== UNION BANKA: Restructuring Program to Be Finalized Soon ------------------------------------------------------- Media representatives of Ostrava-based Union Banka chief executive officer Roman Mentlik and its principal shareholder, Invesmart, confirmed that the struggling bank is reportedly finalizing a restructuring plan to be submitted to the central bank. The proposal holds the future of the bank, as it will be the basis for central bank to either revoke its license or give it another chance. Although Mentlik's media adviser Roman Bajcan said the bank is optimistic it can restore its health and stabilize it, CNB governor Zdenek Tuma, declining to comment on UB's survival outlook, said the "bank's management must convince the public as well as us." Nothing has been disclosed about the restructuring plan, but according to available information it intends to reopen its branches and start paying deposits, though only partially. For this, it would apparently need the depositors' consent. The bank may also try to sell about half of its branches and may invite other investors, a foreign and a Czech one, to help in its rescue. Journalists will be briefed about the plan after the meeting at the CNB. Union Banka reportedly also wanted to react to a bankruptcy petition filed against it by three creditors with the Regional Court in Ostrava. Meanwhile, Prime Minister Vladimir Spidla blames UB's troubles on the poor banking supervision by the CNB, believing that CNB should have acted earlier and revoked UB's license before the beginning of March. He labeled UB's failure as another bungled case of bank troubles in the country, saying that "a change in the banking supervision at least would be inevitable, in my opinion, but not on the President's initiative." In a pre-released issue of the Euro weekly, it is noted that two parties - Parliament and the CNB - would determine what happens to Union Banka. The senior opposition party of Civic Democrats and the communists reportedly favor the bank's rescue. Support can be expected from some Social Democrats too. However, a high-ranking CNB official confirmed to the weekly that a chance of averting UB's crash is miserable. "The central bank will undoubtedly get under a strong political pressure this week," Euro writes. Chamber of Deputies Chairman Lubomir Zaoralek (CSSD), is scheduled to visit the CNB on Tuesday. Zaoralek and Tuma will then leave for a session in the Chamber of Deputies that will be dealing with UB's future, Euro adds. On Thursday, an arbitration is scheduled wherein UB will try to persuade CNB to pay it the CZK1.7 billion agreed in relation to UB's takeover over Bankovni dum Skala. =========== F R A N C E =========== ALSTOM: To Embark on EUR1.15 Billion Worth of Asset Disposal ------------------------------------------------------------ French industrial group Alstom SA, the world's largest maker of cruise ships and builder of trains and power-generation equipment, plans to sell up to EUR1.15 billion (US$1.24 billion) in assets. A company spokesman confirmed the company intends to unload up to EUR1 billion worth of businesses as well as a further EUR150 million of real estate. The spokesman, however, declined to name the business that are likely to go saying, "Alstom is still appraising the situation...No decisions have been taken." The company will reveal the assets they are willing to part with on March 12, according to Daily Deal. Press reports and speculations say the divestment might include Alstom's transport, as well as transmission and distribution units. It is known that the company began reviewing all six divisions last year to see what businesses could go. Alstom has reportedly hired BNP Paribas SA, Societe Generale SA and Rothschild to advise it on the disposals. It says it has no advisory team for its planned disposals but uses several investment banks as needed. The company's troubles came as a result of the Chapter 11 protection filing of its biggest customers, Renaissance Cruises Inc. The latter suffered a sharp fall in demand for cruises after the September 11 terrorist attack in the US. During Renaissance's filing for creditors protection, Alstom said its exposure was nearly EUR700 million. Proceeds of the disposal will be used to reduce the company's EUR4 billion debt. Last year, Alstom sold EUR617 million of new shares through a rights issue and has also raised about EUR450 million through the sale of some of its real estate assets. The company's market cap, which has fallen more than 70% in the last year, is about EUR836 million. CONTACT: ALSTOM 25, Avenue Kleber 75116 Paris Cedex 16, France Phone: +33-147552000 Fax: +33-147552861 Home Page: http://www.alstom.com Contact: Investor Relations Phone: + 33 (0) 1 47 55 25 78 Fax: + 33 (0) 1 47 55 28 61 E-mail: investor.relations@chq.alstom.com RHODIA SA: Reorganizes Pharmaceuticals & Agrochemicals Division --------------------------------------------------------------- Nick Green joins the Group as President of Rhodia Pharma Solutions and Luc Auffret is appointed President of Perfumery, Performance & Agro Speaking at a press conference organized at the Informex trade show, Jean-Pierre Clamadieu, president of the Pharmaceuticals & Agrochemicals division, gave details of the reorganization of his division destined to serve two of Rhodia's target markets-the pharmaceutical industry and agrochemicals-and announced the appointment of the presidents of the newly created enterprises: Nick GREEN joins the group as president of the Rhodia Pharma Solutions enterprise. This unit brings together all of Rhodia's businesses serving the pharmaceutical industry, creating one of the most comprehensive offerings available in the market. This includes the development of processes, small batch manufacturing for pre-clinical and clinical trials, the development of advanced intermediates using the technologies mastered by the group as well as the production of active ingredients both for prescription and generic drugs. Luc AUFFRET has been appointed president of the Perfumery, Performance & Agro enterprise. This unit is comprised of the businesses producing intermediates and active ingredients for agrochemicals, as well as a range of products and services designed for the perfumery, aromas, and so-called 'performance' markets. The common basis underlying the services and solutions provided for these different markets is the group's extensive technological and industrial know-how combined with acknowledged expertise in organic chemistry. With sales of ?950 million last year, the Pharmaceuticals & Agrochemicals division accounted for 16% of the group's annual net sales in 2002. In line with the reorganization of its operational structure announced at the press conference on January 13, 2003, the Pharmaceuticals & Agrochemicals division corresponds perfectly with Rhodia's new business model. - Informex is one of the world's leading fine chemical trade shows sharply focused on custom manufacturing, and is being organized this year in New Orleans -- Pro forma figures after the impact of the 2002 asset disposals calculated on a full-year basis Nick GREEN is a graduate of London University and holds an MBA from Huddesfield University. He began his career at Woodnab Chemicals Ltd before moving to Hodgson Specialties Ltd (Great Britain) in 1990. After holding different operational positions in the BTP Group, taken over by Clariant in 2000, he was appointed head of Clariant Life Science Molecules (USA). SUEZ SA: Confirms Sale of Remaining Holdings in AXA and Vinci ------------------------------------------------------------- SUEZ confirmed it sold its remaining holdings in AXA and Vinci, and substantially reduced its holding in Total Fina Elf. These transactions contribute around EUR 400 million to the Group's debt reduction. They have no impact on the Group's available cash position, which remains at over EUR 7 billion, since all stocks involved in these transactions were under repo transactions. These transactions are fully in line with the 2003-2004 Action Plan announced in January. ***** In January, the company warned of full-year net loss reaching EUR900 million for 2002 due mainly to a EUR800 million provision for falling values of stock market holdings. VIVENDI UNIVERSAL: "Greenshoe" in Sale of Warrants Exercised ------------------------------------------------------------ Vivendi Universal announced that the financial institution to which it sold 28 million USA Interactive warrants on February 18 for approximately $240 million has exercised its "greenshoe" option. In exercising the option, which closed yesterday, the financial institution purchased approximately 4.19 million additional warrants. The proceeds of the sale of part of the USA Interactive warrants held by Vivendi Universal were thus increased by approximately $36 million to total approximately $276 million, all of which has been received by Vivendi Universal. ============= G E R M A N Y ============= BAYER AG: Responds to Public Trial of Baycol/Lipobay ---------------------------------------------------- The first trial in connection with Baycol/Lipobay, the drug voluntarily withdrawn from the market by Bayer, has begun in the United States. As is true with virtually all product liability disputes, especially those in the health care industry, global media interest is extremely high. The coverage is very detailed, particularly of the plaintiff's attorney's allegations and speculation of damages. Speculation concerning the ultimate possible financial impact to the company is also widespread and has varied significantly. "Mr. Watts, attorney for the plaintiff, is throwing around wildly unrealistic and unsupported numbers in the press in an effort to pressure Bayer stock, and in doing so, force us to settle his case," said Philip S. Beck, lead trial counsel for Bayer in the U.S. Baycol litigation, in response to recently reported allegations by Watts. Trials in the United States can only be accurately evaluated in their totality because of the way the country's "adversarial" legal system works. When the trial begins, plaintiff's attorneys call witnesses and present all their evidence first. Only then does the defendant have the opportunity to call witnesses and present the facts of its case to the jury. It is also very common for the plaintiff's attorneys to leak selected and incomplete documents to the media, both to influence public opinion and to put additional pressure on the company and its executives. Bayer is not surprised at these tactics and fully expects that the plaintiff's lawyers will continue to pursue these strategies throughout the course of the trials. The company will present its case - that Bayer acted responsibly and appropriately in the development, marketing and voluntary withdrawal of Baycol - point by point, directly to the judge and jury in the courtroom. DEUTSCHE BA: EasyJet Pessimistic About Deutsche BA Acquisition -------------------------------------------------------------- U.K. budget operator easyJet PLC, which is paying EUR600,000 (GBP410,000) a month to keep open an option to buy British Airway's loss-making subsidiary Deutsche BA, is reportedly pessimistic about exercising its option. A Dow Jones Newswires source said the main question regarding easyJet's possible purchase has always been whether German employees would change their "modus operandi" and act like a low- cost carrier. The source added that although conversations have been continuing with the unions, the fact that talks have broken down twice is "not a very good sign". Reports indicate that easyJet has until the end of March to decide whether to buy the loss-making carrier, but it can extend the option until August 3 if necessary. Deutsche BA could go under if easyJet decides against a purchase and if no one steps forward to buy the struggling company. BA, however, said other parties are interested, provoking a comment from one of the people close to easyJet who said: "I've never heard of anyone else who's interested. If we aren't able to make a go of it, I don't know who else could." Hapag-Lloyd Express, the budget airline launched in Germany earlier this year by tourism giant TUI AG (G.TUI), has been considered by some as a possible buyer. But it later denied it was interested. Meanwhile, spokesman for German pilots' union Vereinigung Cockpit Georg Forgern said the risk of Deutsche BA going under was worth turning down a bad contract with easyJet since the pilots figure they would have been made redundant under the company anyway. Another person close to easyJet told Dow Jones that despite the company's pessimism about the situation, the board hasn't yet reached a decision. "But as we're paying EUR600,000 a month (for the option), the main impetus is to make a swift decision," the person said. CONTACT: DEUTSCHE BA LUFTVERKEHRSGESELLSCHAFT MBH Abteilung Kundenbeziehungen Postfach 23 16 24 85325 Munchen Fax: 089/975 91 998 EASYJET AIRLINE COMPANY LIMITED easyLand London Luton Airport Bedfordshire LU2 9LS UK Home Page: http://www.easyjet.com DEUTSCHE TELEKOM: In Difficult Talks Regarding MTS Stake Sale ------------------------------------------------------------- Deutsche Telekom AG is having a hard time negotiating the sale of a 15% stake in No. 1 cellular operator Mobile TeleSystems to Sistema group, industry sources say. The parties are struggling to agree on a price since there have been some fairly major ideological and philosophical differences between the parties, said one source close to the talks. "The Russians are unlikely to feel under pressure to offer what the Germans would consider a fair and reasonable price," the source added. Nevertheless, most analysts expect the parties to strike on an at least EUR500 million (US$540 million) deal. MTS' market capitalization of almost US$4 billion calls for a EUR550 million price tag for the 15% stake. The Moscow Times cited a source saying, "None of the commercial conditions are unacceptable. The difficulties are more due to legal requirements." Sources also predict Deutsche Telekom, which is selling some non- core assets to cut EUR64 billion of debt, could offer 10% in MTS to Sistema, which is raising its 40.4% holding in MTS to a majority, and put 5 percent on the open market. Deutsche Telekom owns 40.1% of MTS via its mobile arm, T-Mobile International. It understood to be keen on keeping a strategic stake of around 25%. CONTACT: DEUTSCHE TELEKOM AG 53113 Bonn, Germany Phone: +49-228-181-0 Fax: +49-228-181-8872 Home Page: http://www.telekom.de Contact: Hans-Dietrich Winkhaus, Chairman Supervisory Board GERLING-KONZERN: Moody's Downgrade Rating to Baa1 From A2 --------------------------------------------------------- Moody's downgraded its rating for Gerling-Konzern Lebensversicherungs AG to Baa1 from A2 following the Gerling Group's recent announcement that the German regulator BAFin has blocked the proposed sale of Gerling Globale Re to Lago Achte group. According to the rating agency, there is reduced likelihood of the expected successful and quick sale of the business. Moody's considered the legal and regulatory completion of the reinsurance sale critical to the ongoing financial stability of the Gerling Group. It warned in January that failure of such sale would trigger further rating actions. The failure of the sale would particularly result to capital pressures of the Gerlin Group negatively affecting the relatively weakened capitalization at Gerling Globale. It would also make Gerling NCM a more likely sale target due to its relatively small size and comparatively strong profitability, though the entity is less likely to be affected the group's capitalization pressures. Moody's indicated to focus on the successful sale of the reinsurance business, as well as the continued potential for other third-party investors to be introduced to the primary insurance group. The long-term ratings remain under review, direction uncertain, reflecting the possibility that the ratings could be lowered further, in the absence of a completed sale, or for the ratings to be stabilized or increased if a sale is successfully completed and/or a new shareholder is introduced to the Gerling Group structure, the rating agency said. The Gerling Group, headquartered in Cologne, Germany, had total assets of EUR44.8 billion as at end 2001. The following rating was downgraded and placed under review, direction uncertain: Gerling-Konzern Lebensversicherungs-AGIFSR to Baa1 from A2 The following ratings are unchanged and remain under review, direction uncertain: Gerling-Konzern Speziale Kreditversicherungs-AGInsurance financial strength at A1 Gerling Namur Assurances du Credit SAInsurance financial strength at A1 Nederlandsche Credietverzekering MaatschappijInsurance financial strength at A1 GERLING NCM Credit Insurance Inc.Insurance financial strength at A1 (previous NCM Americas) Societa Italiana Cauziona SpAInsurance financial strength at A1 Gerling Nordic Kredittforsikring ASInsurance financial strength at A2 NCM Reinsurance LtdInsurance financial strength at A3 Namur Re SAInsurance financial strength at A3 The following short-term ratings remain under review for possible downgrade: Gerling-Konzern Speziale Kreditversicherungs-AGShort-term insurance financial strength P-1 Gerling Namur Assurances du Credit SAShort-term insurance financial strength P-1 Prime-1 short-term IFSR for main Gerling NCM entities remains on review for possible downgrade. Moody's ratings for the Gerling NCM Group remain unchanged. Its review for possible downgrade for the P-1 short-term IFSR of the main Gerling NCM entities is reaffirmed. MOBILCOM AG: Sale of UMTS License for EUR1 Fails to Lure Buyers --------------------------------------------------------------- German mobile operator MobilCom is selling its UMTS license for only EUR1; yet, despite the rock bottom price, nobody seems interested in acquiring it. For weeks, the telecom has been peddling the license it bought in the summer of 2000 for EUR8 billion to every major European telco, and even some U.S. companies. Included in the license is the commitment to build up the UMTS network in Germany. But the estimated EUR15 billion cost of the venture is believed to have dampened interest from any telco at the moment. According to reports, only two companies asked for further details of the offer. MobilCom, in a desperate attempt, will offer the license to Asian companies such as NTT DoComMO, according to Europemedia. Companies in Europe are currently pulling out of the UMTS market. Orange Sweden pulled out in Sweden and Telefonica has also cancelled its joint venture with Sonear in Germany. The build-up of the new UMTS networks has been significantly delayed across Europe. MobilCom offered to sell its brand new 3G network and the license it no longer needs after it put in place a rescue agreement with France Telecom in January. The deal called for France Telecom to assume and forgive EUR7.1 billion (US$7.7 billion) of MobilCom debt and pay for winding down MobilCom's third-generation mobile telephony investment plan. CONTACT: MOBILCOM AG HollerstarBe 126 P.O. Box 520 24753 Rendsburg-Buedelsdorf Fax: +49-43-31-69-28-26 Phone: +49-43-31-69-11-73 ========= I T A L Y ========= FIAT SPA: Posts Deeper Than Expected Loss for Year 2002 ------------------------------------------------------- Italian industrial group Fiat announced a loss of more than EUR4 billion (US$4.3 billion), deeper than expected for 2002, after the management wrote down value of assets. The company's net loss is expected to be at EUR2 billion. But it is understood to have included huge write-offs in last year's already poor figures, according to the Financial Times. It was already expected to take one-off charges of about EUR800 million last year to cover the cost of lay-offs of about a fifth of the staff of its troubled unit, Fiat Auto, and the sale of a US$1.16 billion stake in General Motors for less than the purchase price. The report came together with the ascension of Umberto Agnelli, head of the controlling family, to the helm of the company's chairmanship on Friday. Umberto, whose appointment on Friday marks the return of an Agnelli in Fiat's management, needs to raise as much as EUR5 billion if he wants to save the group's struggling auto business. That money could only come with the sale of the two units, insurance firm, Toro Assicurazioni SpA, and aeronautics subsidiary, FiatAvio, says Bloomberg. CONTACT: FIAT SPA 250 Via Nizza 10126 Turin, Italy Phone: +39-011-686-1111 Fax: +39-011-686-3798 Toll Free: 800-804027 Home Page: http://www.fiatgroup.com/e-index.htm Contact: Giovanni Maggiora, Vice President - Investor Relations Phone: +39-011-686-3290 Fax: +39-011-686-3796 E-mail: Investor.relations@geva.flatgroup.com =================== L U X E M B O U R G =================== AGF LIFE: Actions Relating to Insurance Policy Under Inquiry ------------------------------------------------------------ An AGF spokesman confirmed that the Luxembourg unit of Assurances Generales de France, AGF Life Luxembourg, and the head of the company were under investigation for suspected money laundering, fraud and false use of documents, according to AFX. The report follows the placement of Assurances Generales de France's Belgian unit as well as AGF Belgium's Chairman Louis de Montferrand under formal investigation for possible misuse of a life insurance contract. According to the report, AGF said it is possible that an insurance policy in Luxembourg called "Liberty", which had been marketed in Belgium, might have been used in an unethical way. A new management team at AGF in Belgium discovered the questionable scheme in 1998. But the company assured that AGF Belgium took all necessary measures in 1998: "ending marketing of the product, auditing and reviewing management procedures, auditing all the companies in the AGF Belgium group, and auditing the computer management system." The Belgian unit is under formal investigation for allegedly avoiding payment of a 25% tax in relation to the life insurance policy by investing money under the life insurance contract in Luxembourg instead of Belgium, and transferring profits to a shell company in the Duchy. MILLICOM INTERNATIONAL: Announces Extension of Exchange Offer ------------------------------------------------------------- Millicom International Cellular S.A., the global telecommunications investor, announces that it is extending the private exchange offer and consent solicitation to holders of 13- 1/2% Senior Subordinated Discount Notes due 2006, or the, who are not U.S. persons, or who are U.S. persons that are either "qualified institutional buyers" or "institutional accredited investors" (as each of those terms are defined under the Securities Act of 1933, as amended) and who can make the representations to exchange, upon the terms and subject to the conditions set forth in the private offering documents, until 5:00 p.m. New York City time on March 7, 2003, unless further extended by Millicom. The rights of withdrawal for those bondholders who have already tendered their acceptance to the exchange offer and consent solicitation shall continue until the new xpiration date in accordance with the terms of the private offering documents. This press release is neither an offer to purchase nor a solicitation of an offer to sell Millicom's securities and is not being made to, nor will tenders be accepted from, or on behalf of, holders of Old Notes in any jurisdiction in which the making of the exchange offers and consent solicitations or the acceptance thereof would not be in compliance with the laws of such jurisdiction. Millicom International Cellular S.A. is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has a total of 16 cellular operations and licenses in 15 countries. Millicom's cellular operations have a combined population under license (excluding Tele2) of approximately 360 million people. In addition, Millicom provides high-speed wireless data services in seven countries. Millicom also has a 6.8% interest in Tele2 AB, the leading alternative pan-European telecommunications company offering fixed and mobile telephony, data network and Internet services to over 16 million customers in 21 countries. Millicom's shares are traded on the Nasdaq Stock Market under the symbol MICC. Lazard is acting for Millicom International Cellular S.A. in connection with the exchange offer and consent solicitation and no-one else and will not be responsible to anyone other than Millicom International Cellular S.A. for providing the protections offered to clients of Lazard nor for providing advice in relation to the exchange offer or consent solicitation. ***** In December, Standard & Poor's Ratings Services downgraded Millicom International Cellular's corporate credit rating to 'CCC' from 'B+', and its subordinated debt rating to 'CC' from 'B-'. The ratings are under CreditWatch with negative implications. The action follows the international cellular provider's advice that the company is reviewing strategic alternatives to address ongoing liquidity concerns. Millicom has total consolidated debt of US$1.4 billion as of September 30, 2002. CONTACTS: MILLICOM INTERNATIONAL Home Page: http://www.millicom.com Marc Beuls, President and Chief Executive Officer Phone: +352 27 759 101 LAZARD, NEW YORK Jim Millstein Phone: +1 212 632 6000 LAZARD, LONDON Peter Warner Phone: +44 20 7588 2721 Daniel Bordessa Cyrus Kapadia SHARED VALUE LTD, LONDON Andrew Best Phone: +44 20 7321 5022 ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: Fitch Lowers Ahold to 'BB-' Watch Negative ------------------------------------------------------------- Fitch Ratings, the international rating agency, has downgraded the Senior Unsecured and Short-term ratings of Koninklijke Ahold N.V., the Netherlands-based international food retailer, to 'BB-' (BB minus) from 'BBB-' (BBB minus) and to 'B' from 'F3', respectively. The ratings remain on Rating Watch Negative. The ratings change reflects substantial tightening of the group's liquidity and new funding that worsens the position of parent bondholders due to their expected legal and structural subordination following drawing of the intended EUR1.35 billion secured facility. Recent information highlights that the level of liquidity likely to be available to the group is more constrained than originally thought. In addition to c.USD550 million of drawings outstanding under the existing USD2bn term facility, a further c.USD600m-650m of uncommitted drawings will require near-term refinancing. The secured EUR1.35bn element of the new total EUR3.1bn bank financing package is therefore earmarked for immediate use, with little additional headroom. As a result it will be critical for the company to achieve the conditions precedent (including satisfactory sign-off of audited accounts for certain subsidiaries) in order to drawdown the unsecured element of the hastily-arranged bank financing package. Conceivably, further secured funding may be arranged if unsecured funding is not forthcoming. Fitch believes that the ability of the group to quickly raise further secured funding will take into consideration negative pledge covenants in existing capital markets issues. A typical weakness in European bonds is the exclusion of bank secured debt from such negative pledge provisions. Updated information shows that the EUR1.35bn loan is sized to match the immediate near-term funding requirements. Ahold is providing as security for this funding a charge over the share capital of certain operating companies, probably over the shares in its prime subsidiaries. As well as the control this affords, the value of the pledged assets is expected to materially exceed the EUR1.35bn obligation. It is likely, given the comfort that such an approach typically provides to bankers, that any such additional lending would also be at the operating company level. This further weakens the position of parent bondholders who will thus be structurally subordinated by these initial facilities. Although Fitch welcomes the news that following investigation of Disco Ahold no material impact from this is expected to affect Ahold's financial results, concerns remain as to the potential level of overstatement of U.S. Foodservice operating earnings. This latter entity accounted for c.EUR538m or some 20% of group operating earnings in FY01. Ahold has thus far been unable to further clarify the potential worst case amount of overstated earnings. Supporting a 'BB' category rating, Fitch maintains the view that Ahold remains a viable operating entity. U.S. Food retail, the Dutch operations as well as ICA Ahold continue to support the sales and cash generative ability of the group. US Foodservice is but one business within the group. Food retail, and especially US food retail, remains the core area of operations although recent figures demonstrate that U.S. food retail has suffered to some extent from both increased competition and the general weakness in US consumer demand. However, potentially controlling creditors will have to decide if any continued financial support maximises the cash-generative qualities of this company or prompt asset sales at distressed values in order to realise liquidity. Ahold remains on Rating Watch Negative. The potential need for negotiation of additional liquidity lines, the continuing uncertainty over the amount of overstated earnings, and a requirement for further details of assets pledged as security, leave Fitch with little option but to maintain the Rating Watch Negative status. Further uncertainty has been engendered by investigation and reported potential litigation against both the company and individuals in both the United States and the Netherlands. KONINKLIJKE AHOLD: Securities Class Action Suit Filed in New York ----------------------------------------------------------------- Notice is hereby given that a securities class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers of Koninklijke Ahold, N.V. common stock between May 15, 2001 and February 21, 2003, inclusive. If you purchased Ahold securities during the Class Period, then you may, no later than April 28, 2003 days from today, move the court to serve as a lead plaintiff, provided you meet certain legal requirements. To serve as a Lead Plaintiff, you will be required to sign the Certification, as provided on our website at http://ww.nyclasslaw.com/join.html The Complaint alleges that defendant violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market, thereby artificially inflating the price of Ahold securities. Plaintiff seeks to recover damages on behalf of all purchasers or acquirers of Ahold securities during the Class Period. Plaintiff is represented in this class action by the law firm of Bull & Lifshitz, LLP. Bull & Lifshitz, LLP has extensive experience in litigating investor class actions. For more information regarding Bull & Lifshitz, LLP, please view our website at http://www.nyclasslaw.com For an information package (http://www.nyclasslaw.com/infopackage.html)or if you wish to discuss this action, or have any questions concerning this notice of your rights or interests with respect to this matter, please contact Bull & Lifshitz, LLP via telephone at (212) 213-6222, via fax at (212) 213-9405 or by email at counsel@nyclasslaw.com CONTACT: BULL & LIFSHITZ, LLP Peter D. Bull, Esq. Joshua M. Lifshitz, Esq., Phone: (212) 213-6222 KONINKLIJKE AHOLD: Faruqi & Faruqi Announces Class Action Suit -------------------------------------------------------------- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of Koninklijke (translated as Royal) Ahold, N.V. securities between March 6, 2001 through February 21, 2003, inclusive. A copy of the complaint filed in this action can be viewed on the firm's website at htpp://www.faruqilaw.com The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Ahold's financial results and business prospects. Specifically, the complaint alleges that Ahold failed to disclose that the Company had materially overstated its income by improperly including far higher promotional allowances-provided by suppliers to promote their products-than the Company had actually received in payment. Moreover, the Company engaged in certain transactions which were possibly illegal and were improperly accounted for. As a result, the price of the Company's securities were artificially inflated throughout the Class Period. On February 24, 2003, however, Ahold shocked the market by announcing that it would restate its financial results for its fiscal year, 2001 and for the first three quarters of fiscal year 2002. Defendant revealed, among other things, that due to overstatements of income related to promotional programs, earnings have been overstated by at least $500 million. Following the release of this news, Ahold's stock price declined in excess of 60% to close at $4.16 per share, significantly below the class period high of $32.65. Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Ahold securities between March 6, 2001 and February 21, 2003, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud. If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at http://www.faruqilaw.com If you purchased Ahold securities during the Class Period, you may, not later than April 28, 2003, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact: ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail: Avozzolo@faruqilaw.com CONTACT: FARUQI & FARUQI, LLP Anthony Vozzolo, Esq. Phone: (877) 247-4292 or (212) 983-9330 E-mail: Avozzolo@faruqilaw.com KONINKLIJKE AHOLD: Charles J. Piven, Commenced Class Action Suit ---------------------------------------------------------------- Offices of Charles J. Piven, P.A. commenced a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of purchasers of the securities of Koninklijke Ahold N.V. d/b/a Royal Ahold, Inc. between May 15, 2001 and February 21, 2003, inclusive, against defendants AHOLD, certain of its officers and directors, and its accountants, Deloitte Touche Tohmatsu. The case, captioned Manson v. Koninklijke Ahold N.V., et al. is pending in the United States District Court for the Southern District of New York, Case No. 03 CV 1243. The complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the Class Period that had the effect of artificially inflating the market price of the Company's securities. A copy of the complaint filed in this action is available from the Court. During the Class Period, defendants issued many statements and filed quarterly and annual reports with the SEC, which depicted the Company's net income and financial performance. The complaint alleges that these statements were materially false and misleading because they omitted and/or misrepresented several undesirable facts, such as that, during the Class Period, AHOLD had significantly overstated its operating earnings for its U.S. Foodservice division. The complaint further alleges that the Company lacked sufficient internal controls resulting in an inability to determine the true financial condition of AHOLD, which lead to the value of the Company's net income and financial results being materially overstated at all pertinent times. On February 24, 2003, before the market opened for trading, AHOLD announced that it discovered over $500 million in "overstatements of income related to promotional allowance programs," requiring the Company to restate its previously issued financial reports for fiscal years 2001 and 2002. Following this report, shares of AHOLD declined over 60%, to close at $4.16 per share, on volume of more than 16 million shares traded, or nearly thirty times the average daily volume. If you are a member of the class described above, you may, not later than April 28, 2003, move the Court to serve as lead plaintiff of this case. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by your decision whether or not to serve as a lead plaintiff. You may retain Law Offices Of Charles J. Piven, P.A., or other counsel of your choice, to serve as your counsel in this action. Law Offices Of Charles J. Piven, P.A. has been involved in securities litigation for over ten years. If you are interested in being included in our action or serving as one of the lead plaintiffs, please contact Law Offices Of Charles J. Piven, P.A. who will, without obligation or cost to you, attempt to answer your questions. You may contact Law Offices Of Charles J. Piven, P.A. at The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by email at piven@pivenlaw.com or by calling 410/986-0036. CONTACT: LAW OFFICES OF CHARLES J. PIVEN, P.A., BALTIMORE Charles J. Piven Phone: (410) 986-0036 E-mail: piven@pivenlaw.com KONINKLIJKE AHOLD: Reassures Customers of Loyalty Stamps Value -------------------------------------------------------------- Royal Ahold is trying to reassure customers that its loyalty stamps program is going as planned by handing out leaflets at its Albert Heijn supermarket stating that the value of the stamps is guaranteed. About 148,000 customers participate in the company's customer loyalty savings plan, exchanging stamps for savings. The leaflet campaign came after clients handed out their loyalty stamps in fear they would become worthless in the wake of the company's involvement in accounting irregularities, and the collapse of its share. Ahold invests half of all customer deposits in Ahold shares. Last week, the U.S. Attorney's office for the Southern District of New York launched an investigation into the U.S. Foodservice subsidiary of Ahold upon the request of its CEO Jim Miller and CFO Michael Resnick. The probe is in relation to an alleged accounting irregularity in the subsidiary. Ahold advised recently that net earnings and earnings per share share under Dutch GAAP and U.S. GAAP will be significantly lower than previously indicated for the year ended December 29, 2002 due to overstatements of income related to promotional allowance programs at U.S. Foodservice, which are still being investigated. In a statement, the company says "the that operating earnings for fiscal year 2001 and expected operating earnings for fiscal year 2002 have been overstated by an amount that the company believes may exceed US $500 million. CONTACT: ROYAL AHOLD Albert Heijnweg 1 1507 EH Zaandam, The Netherlands Phone: +31-75-659-9111 Fax: +31-75-659-8350 Home Page: http://www.ahold Contact: Hendrikus de Ruiter, Chairman ROYAL KPN: Sells Participation in Ukrainian Mobile Communications ----------------------------------------------------------------- KPN and Mobile Telesystems (MTS) from Russia have closed the sales and purchase agreement with respect to KPN's 16.33% participation in Ukrainian Mobile Communications (UMC), the leading mobile operator in the Ukraine. The other participants Deutsche Telekom (16.33%), TeleDanmark (16.33%) and UKrTelecom (51%) have closed similar transactions, leaving MTS as the majority owner of UMC. The purchase price of USD 55 million for KPN's participation has been secured in Escrow, and will be released as soon as the formalities have been completed. This is expected before the end of March. MTS also agreed to guarantee repayment of KPN's USD 18 million shareholders loan to UMC. UNITED PAN-EUROPE: Adopts Financial Accounting Standard 142 ----------------------------------------------------------- United Pan-Europe Communications N.V. announces that, as previously highlighted and following the requirements of U.S. accounting standards, it has completed its impairment test on its business goodwill as at January 1, 2002. Statement of Financial Accounting Standards no. 142 Goodwill and Other Intangible Assets (SFAS 142) became effective January 1, 2002 and, as detailed in UPC's 2002 quarterly filings, was adopted by UPC at that time. The outcome of UPC's goodwill impairment test as at January 1, 2002 has resulted in a non-cash charge to its statement of operations for the year ended December 31, 2002 of EUR 1.5 billion, to be recorded as a cumulative effect of a change in accounting principle. The charge will be reflected in the company's year-end 2002 results, together with the additional goodwill impairment charge, occurring as a result of the Company's annual impairment analysis to be carried out as at December 31, 2002, which will be filed before the end of March 2003. This information is not currently available, however a significant additional impairment charge may result on completion of this annual review. Further details of the impact of the adoption of SFAS 142 have been set out in an update of the Dutch Prospectus which is also available on Form 8K filed with the SEC, from the offices of UPC, at Boeing Avenue 53, 1119 PE Schiphol- Rijk or from Fortis Bank in the Netherlands, at Rokin 55, 1012 KK Amsterdam. Operational Update Furthermore, UPC announces that its wholly-owned indirect subsidiary, Cable Network Zuid-oost Brabant Holding B.V., agreed to sell all of the material assets of Cable Brabant to First International Bank of Israel Ltd (FiBI) resulting in the cancellation of its obligation to repay its loan from FiBI. This previously announced transaction closed on February 24, 2003. United Pan-Europe Communications N.V. is one of the leading broadband communications and entertainment companies in Europe. Through its broadband networks, UPC provides television, Internet access, telephony and programming services. UPC's shares are traded on Euronext Amsterdam Exchange (UPC) and in the United States on the Over The Counter Bulletin Board (UPCOY). UPC is majority owned by UnitedGlobalCom, Inc. (NASDAQ: UCOMA). =========== N O R W A Y =========== PETROLEUM GEO-SERVICES: Admits Credit and Liquidity Problems ------------------------------------------------------------ Seismic company Petroleum Geo-Services admitted it has credit and liquidity problems and is likely to collapse unless banks forgive some of its debts. Newspaper Aftenposten Norway says, "The drama surprised some analysts, who claimed it shouldn't have come as any surprise that bankruptcy is an option for PGS." "It should have been well-known that PGS is a clear candidate for bankruptcy," Kjell Eirik Eilertsen of brokerage firm Alfred Berg told the newspaper. The admission led investors to dump shares in the company. The share price sank more than 33% on the Oslo Stock Exchange, afterwards the New York Stock exchange delisted it on grounds that it traded under US$1 a share for too long, and that its total share value is less than US$ 50 million. The delisting of the shares in the New York Stock Exchange follows the company's reporting of an annual pre-tax loss of US$794 million for 2002, and operating losses of US$ 629 million. The figures contrast profit of US$43.6 million and operating profit of US$ 189 million the prior year. The company's woes started with a failed merger with US company Veritas. It was exacerbated with troubles in the management, and soaring losses while oil exploration projects declined. Norwegian industrialist Jens Ulltveit-Moe, who took over control of PGS through his company Umoe Invest last fall, has invested around NOK 45 million in the company. Aside from Moe, the company's other shareholders are largely institutional investors. To see Company's Financial Results: http://bankrupt.com/misc/PetroleumGeoServices.pdf CONTACT: Sverre Strandenes, SVP Corporate Communications Dag W. Reynolds, Director European IR Phone: +47 6752 6400 Suzanne M. McLeod, U.S. IR Phone: +1 281-589-7935 =========== P O L A N D =========== BANK PEKAO: Announces Agreement of PolCard S.A. Shares Sale ----------------------------------------------------------- Management Board of Bank Pekao SA informs, that on February 28, 2003, acting together with other six shareholders, which hold in total 99.67% stake of PolCard S.A. located in Warsaw has signed an agreement on sale of it's entire stake of 9,000 (nine thousand) shares, which constitute 29.7% of this company equity, which has the nominal value amounting to 900,000 (nine hundred thousand) zloty for the amount in Polish zloty, which is equal to 17,821,800 (seventeen millions eight hundred twenty one thousand eight hundred) US dollars. The Buyer is G.I.C. Uslugi Finansowe Sp. z o.o., the subsidiary of GTECH Corporation with seat in West Greenwich, Delaware in USA. Indirectly shareholders of GIC are also Innova/98 L.P. and Innova/3 L.P. This agreement of sale is conditional and it will come into force upon the approval of the President of the Competitiveness and Consumers Protection Office and if the Polish Banking Association does not execute its right of first refusal to acquire these shares. ***** Last month, due to lack of prospects for achieving satisfactory level of return on invested capital by Bank Pekao Tel Aviv Ltd. and Bank Pekao's branch in New York, Bank decided to liquidate its New York branch and to begin discussions regarding the sale of Pekao Tel Aviv Ltd. In August, Fitch Ratings downgraded Bank Pekao's individual rating from 'C' to 'C/D'. Fitch said the present negative macroeconomic environment in Poland has materially affected Pekao's loan portfolio quality. The bank reported a net loss for 2Q 2002, caused by high loan loss provisions, the TCR reported. NETIA HOLDINGS: Court Registers Amendments to Netia's Statute ------------------------------------------------------------- Netia Holdings S.A.Poland's largest alternative provider of fixed-line telecommunications services, announced that on February 27, 2003, Netia received an order of the Polish court registering the amendments to Netia's Statute adopted by the Extraordinary General Meeting of Shareholders on January 15, 2003. Changes to the composition of Netia's supervisory board made on January 14, 2003 and on January 15, 2003 became effective as of the date of registration of amendments to Netia's Statute. The following persons were dismissed as members of the supervisory board as of February 20, 2003: Przemyslaw Jaronski, Jan Henrik Ahrnell, Hans Tuvehjelm. Currently Netia's supervisory board is composed of the following seven members: Nicholas N. Cournoyer (Chairman of the Supervisory Board), Jaroslaw Bauc, Morgan Ekberg, Richard James Moon, Andrzej Radziminski, Ewa Maria Robertson and Andrzej Michal Wiercinski. CONTACT: NETIA Warsaw Anna Kuchnio (IR) Phone: +48-22-330-2061 ===================== S W I T Z E R L A N D ===================== ABB LTD.: Refuses to Comment on Potential Talks With Eiffage ------------------------------------------------------------ ABB declined to comment on the possible sale of some of its operations to France's Eiffage, which is reportedly interested in some of the company's operations. "If nothing is signed, we do not comment on market speculation," a company spokesman said, according to AFX. Eiffage's chairman Jean-Francois Roverato indicated his interest in investing up to EUR1.2 billion on acquisitions in order to reinforce its presence in the electrical services sector, the report says. It is known that ABB wants to unload most of its Building Systems operations, the Oil, Gas and Petrochemicals division, its Equity Venture participations and the remaining parts of its Structured Finance business in the course of the year. Chief Executive Juergen Dormann is selling non-core assets as part of the company's effort to reduce its debt, currently at US$9 billion. A statement accompanying the company's full year results cited Mr. Dormann saying "the company was in talks with several potential buyers to sell the Oil, Gas and Petrochemicals division and remained on target to sell most of the Building Systems business in 2003." CONTACT: ABB LTD. Investor Relations Switzerland Phone: +41 43 317 3804 Sweden Phone: +46 21 325 719 USA Phone: + 1 203 750 7743 =========================== U N I T E D K I N G D O M =========================== ABBEY NATIONAL: Fitch Affirms Ratings Following Posting of Loss --------------------------------------------------------------- Fitch Ratings, the international rating agency, has today affirmed the ratings of Abbey National plc as follows: Long-term 'AA-' ('AA minus'), Short-term 'F1+', Individual 'B' and Support '2'. The Outlook for the Long-term rating remains Stable. The affirmation follows the recent announcement by Abbey National of a GBP984 million pre-tax loss in 2002, following significant write-offs and charges relating to goodwill, life assurance embedded value and wholesale banking credit exposures, the latter having been the principal reason behind the agency's downgrade of Abbey's Long-term rating from 'AA' in November 2002 (see separate press release at http://www.fitchratings.com). Fitch continues to view positively the strategic decision by Abbey's new management team to concentrate on its historic strength of UK Personal Financial Services (PFS), although this area remains exceptionally competitive. In addition, the agency welcomes the decision to reduce dramatically the risk profile of the group both by exiting those areas of the wholesale banking business not needed to support its core PFS operations (and now managed in the "Portfolio Business Unit") and through measures already put in place to reduce the risk profile of its insurance operations. However, the agency warns that the ability of the bank to maintain its present ratings is dependent on the successful execution of the three-year wholesale banking exit strategy and implementation of the new PFS-focused strategy in a manner that does not compromise the capitalization of the bank. In this regard, the agency notes that an encouraging start has been made in 2H02 and the early months of 2003, but that the credit and equity markets remain very difficult. To this end, Fitch will be monitoring closely the asset disposal program and asset quality within the "Portfolio Business Unit", where unrealized mark-to- market losses totaled GBP664m at end-2002 and where sub- investment grade and private equity assets were still substantial in relation to group equity and have grown further in the first two months of 2003. Abbey National is the sixth largest banking group incorporated in the UK by assets and has a strong retail franchise in the UK, with significant shares in the retail savings and mortgage markets and over 15 million customers. ABERDEEN ASSET: Wins Awards for Conventional Investment Trusts -------------------------------------------------------------- Aberdeen Asset Managers Ltd has won a plethora of top awards in this year's Standard & Poor's Fund Performance Awards, including the coveted Best UK Investment Trust Manager 2003 for consistent overall performance across the group's conventional investment trust range. Standard & Poor's, a leading global provider of investment fund information and analysis, recognizes with its awards outstanding performance across various categories and sectors, excluding split capital investment trusts and venture capital investment trusts. Despite the well-publicized difficulties in the split-capital sector, a number of top performing conventional investment trusts are managed within the Aberdeen Group. This capability has been recognised by winning the following awards: Investment Trust Category for Larger Groups Best UK Investment Trust Manager 2003 1st Place in the UK Investment Trust Category over Five years 1st Place in the UK Investment Trust Category over Three years 1st Place in the UK Investment Trust Category over One Year Sector Awards Aberdeen Asian Smaller Companies awarded 1st Place over Five Years (out of 12 funds) Aberdeen Asian Smaller Companies awarded 1st Place over One Year (out of 14 funds) British Empire Securities and General Trust awarded 1st place over Five Years for U.K. investment trust global growth sector (out of 27 funds) British Empire Securities and General Trust awarded 1st place over Three Years for U.K. Investment trust global growth sector (out of 29 funds) Commenting on the awards, Hugh Young, Head of Equities on Aberdeen's Investment Committee, said: "After our difficulties in the last twelve months, we are delighted to win these awards which shows that the underlying performance of our equity funds have been excellent across the board - over both the short, medium and long term." Aberdeen-managed investment trusts are available through the group's low cost Share Plan. PEP and ISA products are also available. INDIGOVISION GROUP: Proposes to Return Cash to Shareholders ----------------------------------------------------------- On December 11, 2002, IndigoVision Group plc announced its intention to seek approval of shareholders and then of the Court, for a return of at least GBP11 million of cash to shareholders. Today IndigoVision announces the details of the proposed return to shareholders of 17p per share in cash. HIGHLIGHTS - IndigoVision is proposing to return 17p per share in cash to its shareholders. - Total cash returned will be in excess of GBP11.6 million. - The return is being structured as a Court-approved reduction of share capital and share premium account and will be accompanied by a share consolidation. - The return is conditional upon the approval of the shareholders of IndigoVision and the Court of Session. Commenting on the announcement David Sibbald, IndigoVision's Chairman, said ' Today we are announcing the return of 17p per share to shareholders. Your Board has considered the various options open to the business as well as all of the indications of interest received to date and is of the view that shareholder value can best be delivered by a combination of re-focussing the Company's business model and by returning excess cash to shareholders. Subject to shareholder and Court approval, monies are expected to be sent to qualifying shareholders prior to the end of May 2003, although the exact date will depend on the timetable of the Court.' Shareholders will be sent a circular today setting out in full the proposals relating to the return of cash. The approval of shareholders will be sought at an Extraordinary General Meeting to be convened for 25 March 2003, notice of which is contained in the circular. The Record Date for the return will be announced in due course. ***** In December, TCR-EU wrote: Technology firm IndigoVision would like to give back GBP11 million to shareholders, although a good offer for a takeover may yet persuade the company to reconsider. Bridgewell Securities analyst Richard Lucas said: "There's clearly been quite a bit of shareholder pressure to release some of the cash. This should help defend themselves against a takeover." The GBP11 million equates to about 16 p per share. The struggling Edinburg technology is currently a takeover target after being hit by the slump in the technology stock. CONTACT: INDIGOVISION Oliver Vellacott (CEO) Phone: + 44 (0)131 475 7200 FINANCIAL DYNAMICS James Melville-Ross/Juliet Clarke Phone: + 44 (0)207 831 3113 MYTRAVEL GROUP: Advises on Retirement of Founder and Chairman ------------------------------------------------------------- The Board of MyTravel Group plc announces that Mr. David Crossland, the Group's founder and Chairman, has retired from the Board with immediate effect. The Board has accepted that resignation with sadness, and David ceased to be a director of the Company on February 27, 2003. David leaves the Group with the Board's thanks and deep appreciation for his efforts in building and developing the Group over the past 31 years from a two-branch travel agency, into one of the major leisure travel groups in the world. MyTravel Group plc announced on October 17, 2002 that Mr. Crossland had agreed to postpone his retirement, originally planned for November 2002, for up to a year to help facilitate the transitional process for the new management team. On October 17, 2002 MyTravel Group plc announced that Peter McHugh and Philip Jansen were appointed as Chief Executive and Chief Operating Officer respectively. On November 28, 2002, the Company announced that Kazia Kantor was appointed as Group Finance Director. Eric Sanderson, currently Deputy Chairman, will succeed Mr. Crossland as Chairman, in a non-executive capacity, with immediate effect. Commenting on Mr. Crossland's decision to retire, Peter McHugh, said: 'David Crossland's contribution to the global travel industry over the last forty years has been enormous. Thanks to his remarkable vision and entrepreneurial drive he has enabled many millions of people to enjoy an overseas holiday at an affordable price. We wish him a much deserved long, happy and healthy retirement.' Mr. Crossland, in announcing his retirement, said: 'This was a difficult decision and it is a sad day for me after 40 years in the travel industry. However, I leave MyTravel in excellent hands. I am proud of the Company I have led and of the people in MyTravel and I wish them all continued success.' ***** Mr. Crossland is the only surviving 'old guard' management after the company overhauled its administrative structure following a string of profit warnings and accounting irregularities last year. He was not receiving any salary since he agreed to stay as chairman, and he would not be getting any form of compensation upon his retirement, according to a source close to the company. CONTACT: MYTRAVEL GROUP Peter McHugh, Chief Executive Phone: 0161 232 6523 BRUNSWICK GROUP Fiona Antcliffe/Jon Coles/Sophie Fitton Phone: 020 7404 5959 PIZZAEXPRESS: Investors Want to Withdraw Deal With Johnson ---------------------------------------------------------- Investors of the struggling restaurant chain, PizzaExpress, have called on the board to withdraw plans to sell the company to former chairman Luke Johnson. The investors accounting for an estimated 25% of the shares, claim the GBP263 million bid by Johnson is "wholly unacceptable." Mark Wallace from Analyst Investment Management, which has a stake of nearly 3%, said the price level is wholly unacceptable and bears no relation to the true value of the business. "A 'for sale' (sign) [has] been hoisted by the non-execs and their advisers, CSFB, without giving the management a chance to turn things around. These are not the markets in which to be selling a business," he added. Some shareholders reportedly have asked chief executive David Page to suggest to the board that a share buyback should be instituted at 367p a share, similar to the price of selling out to Mr. Johnson. The investors believe this could provide an outlet to investors who still want to sell out. However, City experts pointed out that takeover rules do not allow the group to launch a share buyback during an offer period. One analyst said: "Whether Page likes it or not, the board has voted to recommend the bid. They could not launch a buyback, even if they wanted to. If he starts suggesting otherwise, his position would become untenable." Meanwhile, a PizzaExpress insider told The Times that the issue was in danger of causing a "massive boardroom split" between the executives and non-executives. Insiders at PizzaExpress were also dismayed at the likely return of Mr. Johnson, whose management techniques during his term was not widely approved. Capricorn, meanwhile, claimed to have been ready to come up with a higher offer when the auction process was ended prematurely. The company, whose potential offer is believed to be worth about 380p a share, said it still intends to make a bid. CONTACT: PIZZAEXPRESS PLC 1 Union Business Park Florence Way Uxbridge UB8 2LS Contacts: Nigel Colne, Chairman David Page, Chief Executive Paul Campbell, Group Finance Director Phone: 01895 618618 Sue Pemberton, Citigate Dewe Rogerson Phone: 020 7638 9571 ROYAL & SUN ALLIANCE: Issues Notice of Year End-Results ------------------------------------------------------ Royal & Sun Alliance hereby gives notice that their year-rnd results will be announced on Thursday March 6, 2003 at 7am. A briefing to analysts will take place at the Group's worldwide head office, 30 Berkeley Square, London at 10.00am and can be accessed live via the company website (http://www.royalsunalliance.com). For subscribing fund managers the meeting can also be viewed via the RAW Financial Network. SPONSOR SERVICE: In Bankruptcy on Failure to Secure Loan -------------------------------------------------------- Sponsor Service was declared bankrupt after Nordea and Sponsor Service investors failed to agree on payback terms of an emergency short-term loan sought by Nordea investor. Sponsor Service owes Nordea around NOK250 million (US$35 million). The board of the firm, which raises money for sports and cultural events, opted to file for bankruptcy after it was left with no funds to cover immediate needs. The collapse of the Oslo-based firm was the result of poor investments and years of income reporting for contracts that never existed, board member Stig Eide Sivertsen told newspaper Aftenposten. The recent development threatens the next month's World Cup alpine finals at Kvitfjell and Hafjell, as well as the jobs of hundreds of people, not to mention a string of sporting and cultural events. It also puts investors including Telenor, publishing house Schibsted, and Skaugen Holding at a loss of multi-million in investments. Another big loser is Sponsor Service's founder Terge Bogen, who still held 11.59% of the company's stock. Bogen stands to face an investigation by Norway's white-collar crime unit, Oekokrim, in relation to as much as NOK125 million in fictitious contracts, according to newspaper Dagens Naeringsliv. WESTON MEDICAL: Lack of Financing Forces Administration ------------------------------------------------------- Weston Medical Group Plc, a British firm pioneering needle-free injections, was placed into administration after failing to secure finance from any of its potential backers. Jane Moriarty and Allan Graham at KPMG were hired as administrators to the group. Weston Medical was brought low last year by technical problems with its flagship Intraject device, a less painful and more effective way of delivering drugs. The partners said the initial aim of the administration would be to conclude clinical trials that are due to take place on the Intraject product during April this year. "Once those tests have been completed, we hope to either seek a purchaser for the business or to source additional investor funding to allow the product to be marketed to drugs companies in a commercially viable way," the administrators said. It is known that the company rose to prominence at the height of the biotechnology boom and raised more than GBP50 million to develop the IntraJect device. But it was forced to suspend the launch of the product until at least mid-2005 after discovering a defect last September, leaving the company with a yawning gap in funding. Chief executive Christopher Samler said Weston had hired Altium to look at a possible rescue rights issue for the business but this was not possible. "It is sad that a business that had such tremendous technical potential should not be funded," he added. However, Mr. Samler assured that the company still has all its deals intact with major drug firms including Roche Holding AG, GlaxoSmithKline Plc and Abbott Laboratories Inc. Shares in the company, which has its headquarters in Cambridge, were suspended on the London Stock Exchange on February 25. CONTACT: WESTON MEDICAL GROUP PLC Wingate House Maris Lane Trumpington Cambridge, CB2 2FF UK Phone: +44 (0) 1223 550 000 Fax: +44 (0) 1223 550 100 Contact: Christopher Samler, Chief Executive Phone: +44 (0) 1223 550 000 ************ 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 Laedevee Gonzales, Editors. Copyright 2003. 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 * * *