/raid1/www/Hosts/bankrupt/TCREUR_Public/030411.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, April 11, 2003, Vol. 4, No. 72
Headlines
* B E L G I U M *
SABENA: Faces Civil Actions Filed by Several Former Pilots
* F R A N C E *
ALCATEL: Minority Shareholder Will Oppose Resolutions at AGM
ARIANESPACE: Secures Launch Contracts From Indian Agency
ARIANESPACE: To Ask Shareholders for About EUR1 Million in May
VIVENDI UNIVERSAL: Announces Extended Responsibilities for Joly
VIVENDI UNIVERSAL: AOL Exercises Option on AOL Europe Shares
* G E R M A N Y *
ALLIANZ AG: Announces First Details Regarding Rights Offering
COMMERZBANK AG: May Sell Buderus Stake to Bosch - Sources
EM.TV & MERCHANDISING: Founders Guilty of Misleading Public
FRESENIUS AG: EUR300 M Proposed Notes Issue Assigned 'BB+'
KIRCHMEDIA GMBH: Sale of Film Library Could Include Debt
MUNICH RE: Worldwide Bonds Issuance Receives Huge Demands
* I T A L Y *
FEDERCONSORZI: Announces Agreed Estimate of Business
FIAT SPA: Finmeccanica to Discuss Plans for Fiat Avio in Meeting
* L U X E M B O U R G *
MILLICOM INTERNATIONAL: Subscriber Grows in First Quarter
* N E T H E R L A N D S *
AURELIA ENERGY: Standard & Poor's Revises Outlook to Negative
KLM ROYAL: Outsources Office Automation to Fujitsu Services
ROYAL PHILIPS: To Undertake Additional Cuts in Manpower
UNITED PAN-EUROPE: Bank Lenders Extend Waivers of Defaults
* P O L A N D *
GAS TRADING: Chance to Escape Liquidation Could Soon Surface
* S W E D E N *
LM ERICSSON: Decides to Continue Stock Purchase Plan
SONG NETWORKS: Discloses Resolutions Passed in Meeting
* S W I T Z E R L A N D *
SWISS INTERNATIONAL: Reports Passenger Traffic for First Quarter
* U N I T E D K I N G D O M *
ABERDEEN ASSET: Undertakes Restructuring of PanEuropean Team
AUSTIN REED: Reviews All Options to Maximize Shareholder Value
BRITISH AIRWAYS: To Mothball Loss-making Concorde Fleet
BRITISH ENERGY: U.S. Rival May Challenge Legality of Bailout
CHORION PLC: Results Reflect Tough Market Conditions of Sector
CORUS GROUP: Unions Pressure Chairman to Step Down From Post
GLAXOSMITHKLINE PLC: Loses AmoxC Case Against Novartis Group
IMPERIAL CHEMICAL: Chief Executive Quits Following Warning
IMPERIAL CHEMICAL: Further Management Changes Foreseen
IS SOLUTIONS: Slips Into Red, Discontinues U.S. Operations
IZODIA: Hangs Fire Against Orb, Expects Missing Funds Returned
PIZZAEXPRESS PLC: Clarifies Recommendation of Venice Bidder Bid
ST. JAMES'S: Announces Availability of Certain Documents
SUNDERLAND PLC: Warns of Painful Restructuring, CEO Resigns
=============
B E L G I U M
=============
SABENA: Faces Civil Actions Filed by Several Former Pilots
----------------------------------------------------------
Bankrupt Belgian flag-carrier Sabena faces civil actions filed by
ten former pilots who are expecting to gain substantial
compensation for the loss of income they have incurred since
their redundancies.
The Sabena pilots are building their case around article 530 of
the societies' code, which states that all those who have the
power to manage a company but fail to do so competently are
liable to reimburse part of or all of monies lost in the event of
forced bankruptcy.
Among the accused are Valere Croes, Philippe Suines, Philippe
Wilme, Ferdinand Chaffart and patrick Du Bois, all highly-ranked
within the company.
Croes and Suines were two administrators responsible for the
order of 34 Airbus jets--a move that many claimed was the
beginning of the end for Sabena.
Several other former Sabena staff is expected to join their
colleagues in support of the action.
The preliminary hearing for the case is set on May 15.
===========
F R A N C E
===========
ALCATEL: Minority Shareholder Will Oppose Resolutions at AGM
------------------------------------------------------------
Troubled communications specialist Alcatel SA is likely to face
challenges when it passes resolutions during its Annual General
Meeting on April 17.
Minority shareholder adviser firm Deminor warned that it will
vote against two of the resolutions planned by the company on
behalf of Union Investment, which owns EUR6 million Alcatel
shares, currently valued at EUR35 million.
Firstly, Deminor will vote against a resolution that would allow
Alcatel to buy back its own shares in case of a takeover bid for
the company. The adviser said this measure is a "poison pill"
defense that is not in favor of shareholder interests.
Secondly, it will oppose Alcatel's plans to cancel existing
Alcatel Optronics tracking shares, as the conversion ratio and
other subclauses to the resolution are unfair to holders of
ordinary Alcatel shares.
It is noted that Optronics tracking shares were first sold in
October 2000 for EUR85 each. Alcatel plans to convert them into
ordinary shares on a 1-for-1 basis.
TCR-EU previously reported that Alcatel believes that the
elimination of the tracking stock will give it more flexibility
as it addresses the future of the Optronics business and
continues to explore strategic alternatives for the activity.
Alcatel recently posted a net loss of EUR1.119 billion for the
fourth quarter. Alcatel Optronics also reported a net loss of
EUR115.5 million.
In January, Fitch said it considers Alcatel's fourth-quarter
trading statement positive, although its 'BB-' rating with a
negative outlook reflects risks and uncertainty.
The rating agency said the clear divergence between guidance
provided at the 3Q stage and the expected result confirms the
extreme uncertainty surrounding the business.
ARIANESPACE: Secures Launch Contracts From Indian Agency
--------------------------------------------------------
The ISRO Indian space agency chooses Arianespace once again, this
time to launch its INSAT 4A and INSAT 4B communications
satellites.
Following Wednesday's successful Ariane 5 mission that placed
INSAT 3A into orbit, Indian Space Research Organisation Chairman
Dr. Kasturirangan and Jean-Yves Le Gall, CEO of Arianespace,
announced the signing of launch contracts for two more payloads:
the INSAT 4A and 4B spacecraft.
ISRO's 12th and 13th contracts for Ariane
These are the 12th and 13th ISRO satellites to be booked on the
European launcher. Since the launch of the Apple experimental
satellite in 1981 on Flight L03, Arianespace has orbited ten
Indian satellites. Following today's successful mission with
INSAT 3A, Arianespace is slated to launch another ISRO payload -
the INSAT 3E satellite - later this year.
INSAT 4A and 4B: Telecom Mission for India
Designed, built and integrated by ISRO, the INSAT 4A and INSAT 4B
satellites will each weigh about 3,200 kg. at liftoff. INSAT 4A
and INSAT 4B are dedicated to telecommunications, with 12 Ku band
and 12 C-band transponders each. Their coverage zone is the
Indian sub-continent.
Long-standing trust
Commenting on these two new launch contracts, Arianespace CEO Le
Gall said: "I would like to extend my thanks to the very
prestigious Indian Space Research Organisation for its loyalty to
Ariane during the past 22 years. Winning these two contracts in
today's slow market is a mark of renewed confidence in our launch
system."
*****
Chairman Jean-Yves Le Gall last month said Arianespace's profit
for 2002 will be slightly up from earlier forecasts, which means
it would post an operating loss of around EUR45 million, down
from an initial forecast last February of EUR50-60 million.
CONTACT: ARIANESPACE
Boulevard de l'Europe
BP 177 91006 Evry-Courcouronnes CEDEX
France
Phone: +(33) 1 60 87 60 00
Fax: +(33) 1 60 87 63 04
Home Page: http://www.arianespace.com/
Contact:
Jean-Marie Luton, Chairman
Jean-Yves Le Gall, Chief Executive Officer
ARIANESPACE: To Ask Shareholders for About EUR1 Million in May
--------------------------------------------------------------
A company spokesperson for Arianespace confirmed that the
troubled European satellite launcher will ask its shareholders
for fresh funds at a ministerial meeting on May 27.
French daily Le Monde previously reported that the company aims
to secure about EUR1 billion from its shareholders.
According to the spokesperson, EUR555 million will be requested
to recondition Arianespace's Ariane-5 10-ton payload rocket,
failing launch of its maiden flight in December 2002.
An additional EUR250 million will be needed to cover various
operating costs.
Moreover, Arianespace will ask to launch a EUR200 million capital
increase.
Arianespace was forced to cancel its flagship scientific mission
in January because of uncertainty concerning the reliability of
the Ariane 5 launcher. The suspension follows the explosion of
its Flight 157 rocket shortly after take-off in December.
The blast, deemed as one of the biggest blows in the history of
the European space program, is also considered as a big blow to
the consortium's launch towards profitability. The company
posted net losses of EUR193 in 2001, but hoped to report profit
this year despite further losses for the other
year.
The consortium struggling amidst fierce price competition and
huge overcapacity in the space transport market.
VIVENDI UNIVERSAL: Announces Extended Responsibilities for Joly
---------------------------------------------------------------
Extended responsibilities for Hubert Joly. Hubert Joly, the
former CEO of VU Games and a member of the Vivendi Universal
management team since summer 2002, is taking on wider
responsibilities in Jean-Rene Fourtou's team.
While continuing as Executive Vice President in charge of
monitoring the company's U.S. businesses, Mr. Joly is appointed
Deputy CFO of Vivendi Universal, reporting directly to Jacques
Espinasse, Senior Executive Vice President and Chief Financial
Officer. Mr. Joly is taking responsibility for planning, budget
and controller's functions, for improving the quality and speed
of internal and external financial and operational reporting, and
for challenging the performance of the business units.
His responsibilities include the formulation of performance
targets for the business units and informing general management
and the Board of Directors of the company's progress. He will
supervise the teams that currently report to John Luczycki.
John Luczycki will be returning to New York on July 1, 2003,
where he will continue to manage ongoing projects for the
company. Until then, he will assist Hubert Joly in his new area
of responsibility.
Reorganization of the Finance Department. To coincide with Hubert
Joly's appointment, the Finance Department has been reorganized
with the objective to strengthen the financial management of the
businesses, notably planning, budget and control.
Jacques Espinasse, Senior Executive Vice President and CFO of
Vivendi Universal, is now assisted by two Deputy CFOs: Dominique
Gibert (responsible for financing, treasury, tax and risk
management) and Hubert Joly (consolidation, planning, budget and
control). Daniel Scolan, Executive Vice President Investor
Relations, and Sandrine Dufour, Senior Vice President of Internal
Audit and Special Projects, also report directly to the CFO.
Hubert Joly, 43, was Chief Executive Officer of VU Games from
1999 to 2001. He was then responsible for the integration of
Vivendi Universal's North American activities and in charge of
Information Systems for the entire company. He was appointed to
the Vivendi Universal management team during the summer 2002, as
Executive Vice President monitoring of U.S. assets.
Prior to joining Vivendi, Hubert Joly served as Chairman and CEO
of Electronic Data Systems (EDS) France and Vice President of EDS
Europe. Previously, he spent 12 years with McKinsey & Company,
Inc. in San Francisco, New York and Paris, specializing in high
technology.
Hubert Joly is a graduate of the HEC business school in Paris and
the Paris Institut d'Etudes Politiques.
CONTACT: VIVENDI UNIVERSAL
Inverstor Relations
Paris:
Daniel Scolan
Phone: +33 (1).71.71.3291
Laurence Daniel
Phone: +33 (1).71.71.1233
New York:
Eileen McLaughlin
Phone: +(1) 212.572.8961
VIVENDI UNIVERSAL: AOL Exercises Option on AOL Europe Shares
------------------------------------------------------------
AOL Time Warner (AOL-TW) has exercised its call option on the AOL
Europe shares held by LineInvest. Vivendi Universal confirmed
today that AOL-TW has decided to make a cash payment of $812,5
million. The AOL Europe shares in question were received by
Vivendi Universal in exchange for its 55% interest in AOL France
in March 2001. They were sold afterwards to LineInvest.
This transaction has no impact on Vivendi Universal's cash
position as a result of the terms of the total return swap put in
place in August 2001 with LineInvest.
The provision of $100 million recorded in Vivendi Universal's
2002 accounts to cover a market risk under the terms of the total
return swap if AOL-TW had opted for payment in its own shares is
now unnecessary and will be reversed in the second quarter 2003
accounts.
=============
G E R M A N Y
=============
ALLIANZ AG: Announces First Details Regarding Rights Offering
-------------------------------------------------------------
On March 20, 2003, Allianz AG announced capital measures with a
total volume of up to 5 billion Euros. Of that volume, an amount
of at least 3.5 billion Euros is expected to be raised through a
rights offering to shareholders.
With the approval of the supervisory board the board of
management of Allianz AG has set the subscription period and the
subscription ratio for the planned rights offering. For each 15
existing Allianz shares, the shareholders will be issued with
rights to subscribe to 7 new Allianz shares with dividend
entitlement for the fiscal year 2003.
The subscription price for the new shares will be fixed and
published in due course. At the same time, the holders of profit
participation rights will be issued with rights to subscribe for
new profit participation certificates at a ratio of 15:7. The
subscription price will be calculated respectively to the share
price. The subscription period for new Allianz shares and profit
participation certificates is expected to start on April 15, 2003
and will presumably end on April 29, 2003.
These assessments are, as always, subject to the disclaimer
provided below.
No Offer
This statement does not constitute an offer or invitation to
subscribe for or purchase any securities in any jurisdiction.
The securities of Allianz Aktiengesellschaft as described herein
will not be publicly offered or sold in the United States of
America, Canada, Australia and Japan and have not been and will
not be registered under the United States Securities Act of 1933.
Consequently they may not be offered, sold or delivered, directly
or indirectly, within the United States absent registration under
or an applicable exemption from the registration requirements of
the United States securities laws.
COMMERZBANK AG: May Sell Buderus Stake to Bosch - Sources
---------------------------------------------------------
Germany's fourth-biggest bank is apt to accept Robert Bosch
GmbH's offer for its stake in Buderus AG, Frankfurt banking
sources said.
Bosch's EUR29.15 per share offer for the bank's 10.53% stake
would raise around EUR193 million.
Bosch announced Monday that they are interested in acquiring
Bilfinger Berger AG's 30.02% stake in Buderus for EUR550 million,
and that an offer of the same price per share will be posted to
remaining shareholders.
It is known that Commerzbank is the last remaining major
shareholder in the heater maker, since Deutsche Bank AG has sold
its 7.47% stake to Bosch for EUR100 million last year.
German banks have also reportedly sold a raft of industrial
shareholdings recently to compensate for weak earnings and high
loan losses.
Commerzbank previously said it is eliminating about 2,800 more
jobs and cutting bonuses for investment by more than half after
posting a pre-tax loss of EUR372 million in its results for
financial year 2002.
TCR-Europe said the cost-reduction plan counters rising loan and
investment losses as economic growth stalls and stock markets
fall.
CONTACT: COMMERZBANK AG
Kaiserplatz
60261 Frankfurt, Germany
Phone: +49-69-136-20
Fax: +49-69-28-53-89
Homepage: http://www.commerzbank.com
Contacts: Klaus-Peter Muller, Chairman
Axel Frhr. v. Ruedorffer, Managing Director
EM.TV & MERCHANDISING: Founders Guilty of Misleading Public
-----------------------------------------------------------
The Munich court on Tuesday ruled Thomas and Florian Haffa,
founders of German media company EM.TV, guilty of misrepresenting
the company's financial health in public statements.
The brothers were fined EUR1.44 million (US$1.53 million) for
giving over-optimistic financial forecasts to investors between
May and November 2000.
The court rejected the prosecution's demands for an eight-month
suspended prison term.
Thomas Haffa, former chief executive, has to pay EUR1.2 million,
while Florian, former finance director, has to compensate
EUR240,000.
Mr. Haffa is estimated to have netted US$2.2 bilion two years
after EM.TV's 1997 Neuer Markt flotation, according to Forbes
magazine. He is now believed to have EUR250 million in his name.
A lawyer for the Haffa brothers said they would appeal before the
Bundesgerichtshof, Germany's Supreme Court.
EMTV made acquisitions that left it staggering with a mountain of
debt, and needing bailout at the end of 2001. These deals
included the Jim Henson Company, and a 50% share in Formula One
for a total of EUR3 billion.
In December, EM.TV shares experienced their first dive when the
company cut profit guidance from DEM600 million to DEM50 million.
The loss that eventually came out amounted to DEM2.8 billion.
The company's market capitalization on Tuesday fell from a high
of EUR15 billion in February 2000 to barely EUR100 million.
The collapse left thousands of shareholders nursing huge losses.
It also fueled fire in discrediting the Neuer Markt and equity
investment in general, according to the Financial Times.
But it will help shareholders press on claims that their loss is
due to misleading statements from the company.
FRESENIUS AG: EUR300 M Proposed Notes Issue Assigned 'BB+'
----------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'BB+'
senior unsecured debt rating to Germany-based healthcare company
Fresenius AG's (Fresenius) proposed EUR300 million ($323 million)
senior notes issue, due 2009. Fresenius is issuing the senior
notes to refinance a portion of its existing debt.
"Although the company is a holding company that manages three
divisions, the rating on the proposed issue is supported by
Fresenius' major proportion of assets, which consist of
investments in its various companies and inter-company loans, as
well as the diversity in its cash flow," said Standard & Poor's
credit analyst Omar Saeed.
Even in the absence of cash flow of EUR55 million (dividends and
rental income) from its biggest subsidiary-- Fresenius Medical
Care AG (BB+/Stable/--)--Fresenius' remaining cash flow is still
significant to cover the priority claims at its wholly owned
subsidiaries. The remaining two wholly owned subsidiaries are
Fresenius Kabi AG and Fresenius Proserve GmbH.
For the financial year-end Dec. 31, 2002, Fresenius' total net
debt outstanding (including securitization of accounts
receivables of $445 million) was about EUR3.5 billion, of which
EUR800 million was located at the parent level.
Standard & Poor's expects Fresenius' financial ratios, which
could remain somewhat weak in fiscal 2003 because of possible
litigation-related disbursements, to recover from fiscal 2004
onward. This reflects a combination of lower capital investments
and acquisition spending from 2003 and improvements in cash-flow
generation as recent restructuring initiatives are realized. The
ratings and outlook also anticipate no material increase in
established reserves.
KIRCHMEDIA GMBH: Sale of Film Library Could Include Debt
--------------------------------------------------------
The package of KirchMedia's film library unit being sold to U.S.
billionaire Haim Saban might include half of the company's EUR1.3
billion debt.
KirchMedia, which filed for creditor protection early last year,
is selling its library of 18,000 movies and series, as well as
broadcaster ProSiebenSat.1 Media AG to Mr. Saban.
Both the film and the stake in ProSiebenSat are the remains of
the collapsed empire of Bavarian entrepreneur Leo Kirch.
Mr. Kirch's company, Kirch Group, collapsed last year under
mounting debts and losses from the unsuccessful Premiere pay-TV
service, bringing with it KirchMedia with EUR1.9 billion (US$2.03
billion) in debt.
The transaction to sell the film library could include
KirchMedia's debt as creditor banks plan to transfer the amount
to the unit, according to Dow Jones.
The other half of the debt will remain with the company, says
Wolfgang Hartmann, management board member of creditor
Commerzbank AG.
Mr. Hartmann told German news agency VWD he expects KirchMedia's
creditors to get back about 20% of their loans to the Ismaning-
based media company.
CONTACT: KIRCHMEDIA GMBH & CO KGAA
Rudolf Wallraf
RW-Konzept GmbH
Phone: +49 (0)9 99562324
Mobile: +49 (0)3 2678888
Hartmut Schultz
Hartmut Schultz Kommunikation GmbH
Phone: +49 (0)89 99806220
Mobile: +49 (0)170 4332832
SABAN GROUP
in Germany:
Bernhard Meising
Phone: +49 (0)211 5775902
Elisabeth Ramelsberger
Phone: +49 (0)211 5775913
Citigate Dewe Rogerson GmbH
in USA:
Stephanie Pillersdorf
Phone: +1 212 687 8080
Citigate Sard Verbinnen
MUNICH RE: Worldwide Bonds Issuance Receives Huge Demands
---------------------------------------------------------
Huge demand for Munich Re euro bonds / Placement volume of EUR3bn
for the largest-ever euro subordinated bonds issue worldwide /
Coupon rate 6.75% / Sterling bond also meets with great interest
The huge demand for Munich Re bonds exceeded EUR6bn, following
road shows in several European financial centers. Munich Re was
able to place a volume of EUR3bn at attractive conditions, an
amount unprecedented in the euro subordinated bonds market. With
a coupon rate of 6.75% p.a., interest on the euro bonds is 245
basis points above the ten-year reference interest rate (euro
swap rate). The value date is April 16, 2003.
The euro tranche that has now been placed forms the main part of
the subordinated bonds announced on March 20, 2003. Munich Re is
also issuing a sterling bond of around 250 million pounds
sterling in order to tap into further investor circles. The
subscription period for this bond is scheduled to end on April
11, 2003.
Dr. Heiner Hasford, member of Munich Re's Board of Management:
"We are very satisfied with the volume and conditions of our euro
tranche. We have been able to take advantage of the tremendous
interest of bond investors to further strengthen our market and
capital position in the light of the sustained upswing in
reinsurance business."
=========
I T A L Y
=========
FEDERCONSORZI: Announces Agreed Estimate of Business
----------------------------------------------------
The goods liquidator (yielded to the creditors on an agreed
estimate) for FEDERCONSORZI, who intends to yield its credit in
favor of the Ministry of Agricultural Politics (already Ministry
of Agriculture and Forestry), currently undergoing contentious
procedure for a total amount of approximately Lira
397,469,000,000, not including interest which is constituted as
follows:
-- for approximately Lira 309,368,400,000, as well as interest
from January 1, 1992, from a credit as of December 31, 1991
amounting to approximately Lira 463,043,000,000 (from which the
amount of approximately Lira 153,674,000,000 was subtracted, paid
in compensation by the above-mentioned Ministry and recognized by
the Liquidation), in the form of credits yielded to
Federconsorzi, pro sol vendo, by Consorzi Agrari Provinciali ed
Interprovinciali and deriving from the management of the stocks
of agricultural goods carried out by the above-mentioned
Consotria on behalf of the State between 1947 and 1962;
-- for approximately Lira 88,100,000,000, as well as interest
from January 1, 1998 from credit deriving from the management of
the stocks of olive oil, in relation to the 1963/1964 - 1964/1965
and 1965/1966 campaigns,
invites
all parties interested in formulating and communicating proposals
of purchase to do so by means of a sealed envelope by and no
later than 1 pm on May 6, 2003 at the offices of the notary
Pietro Mazza (in Rome, Via Dalmazia, no. 29), who will proceed to
open the envelope the same day at 4:30 pm,
underlines
that this invitation does not constitute an offer to the public,
ex article 1336 c.c., nor does constitute an invitation for
public saving, ex article 94 and those following within the
legislative decree no. 58/1998,
reserves the right
to undertake, therefore with regard to the proposals which are
deposited, every possible and free decision,
informs
that the data will be treated in accordance with law no. 675 of
December 31, 1996 and with the objective of allowing the
Liquidation to direct their choice with regard to the possible
yielding of the above-mentioned credits and
advises
that the proposals will be taken into consideration only if
formulated in accordance with the conditions included in the
"rules and regulations", of which every page is sealed by the
above-mentioned liquidator and can be collected at the
Liquidation office (in Rome, Via della Balduina no. 224 - tel.
0039 06 35340340), where the documentation on the credits in
question may be examined and further queries can be answered.
FIAT SPA: Finmeccanica to Discuss Plans for Fiat Avio in Meeting
----------------------------------------------------------------
The board of Finmeccanica SIFI will discuss the possibility of
participating in The Carlyle Group's plan to acquire a 30% stake
in Fiat's aerospace unit, Fiat Avio.
The Carlyle Group recently signed a memorandum of understanding
to acquire the unit for an 'enterprise value' of EUR1.6 billion
(US$1.72 billion). The package includes assets and debts.
The idea of joining the group " will be discussed at the next
board meeting," Finmeccanica Chief Executive Roberto Testore told
reporters.
The team up between Finmeccanica, which is 32% owned by the
Italian government, and the U.S.-based private equity group has
been subject to much speculation. Ministers and analysts have
said it may take a stake in Fiat Avio to keep the group within
the country.
Finmeccanica's board meeting is set for April 16, an industrial
source told Reuters.
Fiat SpA, which recently posted a EUR4 billion loss, is divesting
several of its assets to raise cash for its troubled unit Fiat
Auto. It needs to have as much as EUR5 billion if it wants to
save the group's struggling auto business.
Fiat Auto had an operating loss of EUR1.3 billion last year and
is expected to lose around EUR700 million this year. It is not
expected to break even until 2004 when new models begin to
improve margins.
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
FINMECCANICA SPA
4, Piazzi Monte Grappa
00195 Rome, Italy
Phone: +39-06-324731
Fax: +39-06-3208621
Home Page: http://www.finmeccanica.it
Contact:
Pier F. Guarguaglini, Chairman and CEO
Roberto Testore, CEO and Managing Director
THE CARLYLE GROUP
1001 Pennsylvania Ave.
NW, Ste. 220 South
Washington, DC 20004-2505
Phone: 202-347-2626
Fax: 202-347-1818
Home Page: http://www.thecarlylegroup.com
Contact:
Louis V. Gerstner Jr., Chairman
Rt. Hon. John Major, Chairman, Carlyle Europe
===================
L U X E M B O U R G
===================
MILLICOM INTERNATIONAL: Subscriber Grows in First Quarter
---------------------------------------------------------
Millicom International Cellular S.A:
-- 28% annual growth in total subscribers
-- 25% annual growth in proportional subscribers
-- 45% annual growth in pre-paid subscribers in Asia.
-- 29% annual growth in pre-paid subscribers in Latin America
Millicom International Cellular S.A., the global
telecommunications investor, announced today that in the first
quarter of 2003 its worldwide operations in Asia, Latin America*
and Africa added 245,803 net new cellular subscribers or 178,416
subscribers on a proportional basis.
At March 31, 2003, MIC's worldwide cellular subscriber base*
increased by 28% to 4,248,714 cellular subscribers from 3,331,533
as at March 31, 2002. Particularly significant percentage
increases were recorded in Ghana, Cambodia, Sir Lanka and
Vietnam.
At March 31, 2003, MIC had 2,962,603 proportional cellular
subscribers*, an increase of 25% from the 2,369,603 proportional
subscribers reported at March 31, 2002.
Cellular Operations (i)
Proportional Proportional Total Total
(ii) ii)
Subs at Subs at Annualized Subs at Subs at Annualized
Mar 31, Mar 31, Increase Mar 31, Mar 31, Increase
2003 2002 2003 2002
Asia 1,308,969 971,781 35% 2,110,494 1,514,687 39%
Latin 1,422,825 1,215,157 17% 1,814,199 1,534,668 18%
America*
Africa 230,809 182,665 26% 324,021 282,178 15%
Total 2,962,603 2,369,603 25% 4,248,714 3,331,533 28%
Cellular
(i) All numbers and comparatives exclude divested operations,
including Celcaribe in Colombia, which was sold in
February 2003
(ii) Proportional subscribers are calculated as the sum of MIC's
percentage ownership of subscribers in each operation.
Excluding El Salvador and divested operations
Within the 2,962,603 proportional cellular subscribers* reported
at the end of the first quarter, 2,641,734 were pre-paid
customers, representing a 34% increase on the 1,976,407
proportional prepaid subscribers* recorded at the end of March
2002. Pre-paid subscribers currently represent 89% of gross
reported proportional cellular subscribers.
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. The Group's cellular
operations have a combined population under license (excluding
Tele2) of approximately 382 million people. In addition, MIC
provides high-speed wireless data services in six countries. MIC
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 16.8 million
customers in 22 countries. The Company's shares are traded on the
Luxembourg Bourse and the Nasdaq Stock Market under the symbol
MICC.
CONTACTS: MILLICOM INTERNATIONAL
Marc Beuls, President and Chief Executive Officer
Phone: +352 27 759 101
Homepage at http://www.millicom.com
SHARED VALUE LTD, LONDON
Andrew Best
Phone: +44 (0) 20 7321 5022
=====================
N E T H E R L A N D S
=====================
AURELIA ENERGY: Standard & Poor's Revises Outlook to Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
Netherlands-based oil service company Aurelia Energy N.V. (which,
together with its subsidiaries, is collectively referred to as
Bluewater) to negative from stable. The action reflects several
challenges faced by Bluewater, in particular to improve its
stretched credit protection measures.
At the same time, Standard & Poor's affirmed its ratings on
Bluewater, including the 'BB' long-term corporate credit rating
on Aurelia Energy.
"The negative outlook reflects Bluewater's need to improve key
credit protection measures--including EBITDA to total interests
to more than 3x--on a sustainable basis," said Standard & Poor's
credit analyst Maria Gillholm.
"The company also needs to extend average contract maturities,
improve cashflow generation in its single-point mooring systems,
and rebuild financial flexibility before embarking on significant
cash and debt-financed capital spending. While Standard & Poor's
believes that Bluewater is in a position to achieve this, failure
to do so could result in the ratings being lowered," added Ms.
Gillholm.
The current rating levels require Bluewater to post EBITDA net
interest coverage (including capitalized interests) of well over
3x on a sustainable basis, compared with the company's ratio of
less than 2.5x in 2002 and, probably, the first-half of 2003.
Standard & Poor's believes the company will achieve a ratio of
more than 3x starting in the third quarter of 2003. However,
another dip in credit metrics or an operating setback like the
significant delays and cost overruns recently incurred on the
upgrade of the Glas Dowr vessel would likely lead to the ratings
being lowered.
The ratings reflect Bluewater's participation in the floating
production, storage, and offloading vessel industry, its small
five-vessel fleet, recontracting risk in 2004, and slightly
aggressive debt leverage. These factors are mitigated by
Bluewater's modern, sophisticated fleet, which typically operates
on multiyear contracts, providing stable cash flow.
KLM ROYAL: Outsources Office Automation to Fujitsu Services
-----------------------------------------------------------
KLM Royal Dutch Airlines and Fujitsu Services today signed a
four-year office automation contract. Expectations are that this
will save KLM an amount of some EUR10 million during the term of
the contract. The contract itself represents a value of some EUR
40 million. Additionally, over the same period, KLM envisages
additional savings on hardware and software of around EUR5
million arising from better service.
Since April 1, 2003, the airline has been outsourcing management
of a significant share of its office automation operations in the
Netherlands to Fujitsu Services.
In 2001, KLM began to pursue a policy of standardizing and
outsourcing office automation operations. In so doing, ICT for
the desktop environment within the KLM organization has become
more structured and efficient resulting in lower costs and fewer
interruptions in the workplace.
Outsourcing IT management operations fits in well with the
airline's strategy of focusing solely on its core business. The
decision to outsource office automation operations to Fujitsu
Services stems from successful cooperation between the two
parties in the past. A total number of around 7,000 workstations,
130 servers and 5 local area networks (LANs) are involved.
KLM has been in close contact with Fujitsu Services for some time
now concerning the outsourcing of IT management operations. This
led to an agreement between KLM Information Services - KLM's
automation organization - and Fujitsu Services in summer 2000. In
so doing, the airline committed itself to engaging the services
of at least 30 specialists from Fujitsu Services in managing the
IT workstations over a two-year period. Cooperation proved
successful and a few months later KLM approached Fujitsu
Services, requesting the company to take over responsibility for
the management of all KLM Benelux's office automation operations
in Hoofddorp. The implementation and operation of this project
proved highly successful as well. Consequently, in spring 2002,
Fujitsu Services was commissioned to manage the IT infrastructure
of KLM's Amstelveen Headquarters (1,800 workstations). The latter
assignment established the basis for the agreement entered into
on April 1, 2003, in which KLM agrees that Fujitsu Services will
now assume responsibility for managing office automation
operations at the Schiphol Center, Schiphol East, Rijswijk and
Schiphol Rijk Campuses as well as HQ.
"KLM has taken a significant step towards establishing
standardized worldwide workstation, infrastructure and service
implementation. Service quality will be enhanced and gains will
be achieved on the basis of organizational flexibility and
economies of scale," says KLM CIO Cees Koster, who heads up
Information Services.
"We specialize in providing Infrastructure Outsourcing Services
aimed at raising productivity among IT users while at the same
time lowering the costs of IT management. I have every confidence
in the resounding success of our continued cooperative
relationship with KLM. Things are going extremely well," says
Frank Boekel, Managing Director of Fujitsu Services.
ROYAL PHILIPS: To Undertake Additional Cuts in Manpower
-------------------------------------------------------
Royal Philips Electronics NV plans to cut additional jobs in its
Dutch operations to further pursue its cost savings plan, says
AFX.
The cuts will be taken as the company shifts production of low-
end two-head shavers and some mid-end three-head shavers to China
in 2005. Some 100 jobs were lost to China in a similar fashion
last year.
The consumer electronics manufacturer is currently moving
manufacturing from western Europe and the U.S. to low-wage
centers in the Far East and Central America.
From the North Dutch town of Drachten production of the shavers
will be transferred to Zhuhai, near Hong Kong.
The plant for the production of high-end shavers as well as the
shaver unit's research and development department will, however,
remain in the Netherlands, Philips spokesman Gert van Doorn
disclosed.
Mr. van Doorn said the management had to undertake the move to
maintain a competitive stance in the market.
He refused to disclose the magnitude of the cuts, although
reports estimate it at several hundreds.
Many of the job cuts will be made through retirement and non-
renewal of temporary contracts according to the company.
Royal Philips, which employs 2000 people, recorded cumulative
losses of more than EUR5 billion over the last two years.
CONTACT: ROYAL PHILIPS ELECTRONICS
Nanda Huizing, Communications manager
Philips Consumer Electronics Corporate Communications
Phone: +31 40 2780074
E-mail: nanda.huizing@philips.com
UNITED PAN-EUROPE: Bank Lenders Extend Waivers of Defaults
----------------------------------------------------------
United Pan-Europe Communications N.V., one of the leading
broadband communications companies in Europe, announces that, as
expected, bank lenders have extended until September 30, 2003 the
waivers of the defaults arising as a result of UPC's decision not
to make interest payments under its outstanding Senior Notes.
This will allow UPC sufficient time to complete its restructuring
process and to deal with the appeal procedure that has been filed
by InterComm Holdings L.L.C. in relation to the decision of the
Amsterdam court of March 13, 2003, ratifying the Akkoord.
The terms of the waivers remain broadly unchanged from those
announced on September 30, 2002. UPC has completed the transfer
of certain head office activities into the bank group (entities
within UPC Distribution that are borrowers under the bank
facility) as contemplated in the bank waiver that was given on
September 30, 2002. In addition, as highlighted on March 5, 2003
following the confirmation order signed by the U.S. court, UPC confirms
that 6 million shares of SBS Broadcasting S.A. have today been sold to
UGC for EUR 100 million.
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).
CONTACT: UNITED PAN-EUROPE
Claire Appleby
UPC Investor Relations
Phone: + 44 (0) 207 647 8233
Email: ir@upccorp.com
Bert Holtkamp
UPC Corporate Communications
Phone: + 31 (0) 20 778 9447
E-mail: corpcomms@upccorp.com
Home Page: http://www.upccorp.com
LAZARD CITIGATE FIRST FINANCIAL
Daniel Bordessa
Phone: + 44 (0) 20 7588 2721
Martha van Dijk
Phone: + 31 (0) 20 575 4010
CITIGATE DEWE ROGERSON
Toby Moore
Phone: + 44 (0) 20 7638 9571
===========
P O L A N D
===========
GAS TRADING: Chance to Escape Liquidation Could Soon Surface
------------------------------------------------------------
Gas Trading may soon escape liquidation, according Aleksander
Gudzowaty, Bartimpex owner which controls 36.17% of the company.
An unspecified Russian company has offered it a contract, and it
might also secure future projects involving Polish chemical
plants, he said.
According to Mr. Gudzowaty, the idea of shutting down Gas
Trading's operation will prove unreasonable once the operation
starts yielding profits.
Gas Trading was put forward for liquidation after it stopped
receiving gas from Russia's Gazprom late last year.
Polish Oil anD Gas, which controls more than 43% of the company's
stake, was behind the move.
The process was halted, however, by Russian shareholder
Gazexport, controlling almost 16%, and owned by Gazprom.
Gas Trading owns a 4% stake in EuRoPol Gaz.
===========
S W E D E N
===========
LM ERICSSON: Decides to Continue Stock Purchase Plan
----------------------------------------------------
The shareholders' meeting in Ericsson decided on a continued
Stock Purchase Plan for the employees
At the Annual General Meeting of shareholders in Ericsson on
Wednesday, it was resolved, in accordance with the proposal from
the Board, to continue the stock purchase plan, which was
introduced 2001. The Stock Purchase Plan 2003 is directed to
basically all Ericsson employees and the contribution period is
scheduled to commence during the autumn of 2003.
The stock purchase plan aims to encourage an increased
shareholding among the employees. In the Board's opinion it is
particularly important to encourage the efforts of the employees
in times of economic decline. Moreover, the Board is convinced
that offering employees an incentive to become shareholders is of
benefit also for the current shareholders.
Basically all employees within the Ericsson Group shall be
offered to participate in the stock purchase plan, which
comprises totally 158,000,000 B-shares. Employees will be able to
save up to 7.5 per cent of the gross salary during a 24-month
contribution period, however not exceeding SEK 50,000 per 12-
month period, for the purchase of B-shares in Ericsson. If the
shares purchased are retained by the employee for three years and
the employment with the Ericsson Group continues during that
time, the employee will be given a corresponding number of B-
shares free of consideration.
In order to implement the stock purchase plan in a cost effective
and flexible manner the shareholders' meeting has decided the
following.
Amendment of the Articles of Association: The maximum number of
C-shares which may be issued is changed from 155,000,000 shares
to 158,000,000 shares.
Directed share issue: Ericsson's share capital is increased by
SEK 158,000,000 by an issue of 158,000,000 C-shares. The new
shares shall
- with deviation from the shareholders' preferential right to
subscribe for shares - be subscribed for by AB Industriv?en
and/or Investor AB, or subsidiaries to these companies, at a
price corresponding to the nominal amount of the share, i.e. SEK
1. Authorization to decide on acquisition of own shares: The
Board is authorized to take a decision before the Annual General
Meeting of shareholders in 2004 on acquisition of shares directed
to all holders of C-shares in Ericsson. Acquisition of
158,000,000 C-shares at a price of not less than SEK 1 and not
more than SEK 1.10 per share is allowed under the authorization.
Payment shall be made in cash.
Following acquisition of C-shares, the Board will decide on
conversion of all C-shares to B-shares.
Transfer of own shares: Not more than 158,000,000 B-shares shall
be transferred to employees covered by the terms of the stock
purchase plan. However, of these shares it shall be possible to,
before the Annual General Meeting of shareholders in 2004,
transfer not more than 26,000,000 B-shares at Stockholmsb?n at a
price within the, at each time, registered price interval for the
share in order to cover inter alia social security payments.
Dilution and costs
The Stock Purchase Plan 2003 requires a total of 158,000,000
shares, corresponding to approximately 0.99 per cent of the total
number of issued shares and 1.00 per cent of the number of
outstanding shares.
Including existing incentive programs the number of shares
covered by such programs amounts to approximately 356 million
shares (after deduction of forfeited options and Ericsson's
convertible debenture program from 1997 which at present is not
considered to result in any further dilution), corresponding to
approximately 2.25 per cent of the number of outstanding shares.
Ericsson currently holds 152,565,365 own shares.
The 132,000,000 shares transferred to employees free of
consideration will cause a dilutive effect of 0.83 per cent on
earnings per share.
There will, however, be no dilutive effect of the 26,000,000
shares disposed of at Stockholmsb?n, as the shares are sold at
full market value.
The Board estimates that the Stock Purchase Plan 2003 will result
in costs as set out below. The costs shall be compared with
Ericsson's total remuneration costs, which 2002 amounted to
approximately SEK 47 billion, including social security fees.
Each cost item has an effect on the consolidated income
statement, but only the administration costs have an effect on
the cash flow.
Administration costs (affect the income statement and the cash
flow) have been estimated to approximately SEK 27 million,
unevenly distributed, up to and including 2008.
Social security fees (affect the income statement, but not the
cash flow) have been estimated to range between approximately SEK
250 million and approximately SEK 1,300 million, based on an
average share price at matching of shares between SEK 10 and SEK
50.
Compensation costs (affect the income statement, but not the cash
flow), corresponding to the value of matching shares, have been
estimated to approximately SEK 900 - 1,000 million during the
period 2003 - 2008.
The share issue and offer to acquire shares are scheduled to be
completed prior to the summer 2003.
Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication
companies in the world.
CONTACT: LM ERICSSON
Home Page: http://www.ericsson.com/
Lotta Lundin, Investor Relations
Ericsson Corporate Communications
Phone: +46 8 719 6553
E-mail: lotta.lundin@clo.ericsson.se
SONG NETWORKS: Discloses Resolutions Passed in Meeting
------------------------------------------------------
At the annual general meeting with the shareholders in Song
Networks Holding AB held at Citykonferensen Ingenjorshuset in
Stockholm the following resolutions, among others, were passed.
(i) The board of directors was elected in accordance with the
proposal set out in the notice: Re-election of Lars Gronberg
(director in Song since 2000) and election of Tomas Franzen (CEO
in Song and director in Grin AB, Allgon AB, BTS AB, Epsilon AB,
OEM International AB and ProAct AB), Roger Holtback (CEO in
Holtback & Partner and director in Capio AB, Gunnebo AB, Nordic
Capital, S.A.T.S Holding AB, Stena Group and TBG.N.V), Marta
Josefsson (previously Chief Investment Officer of among others
DnB Asset Management), Kjell Nilsson (previously CEO of Boliden
AB and Trelleborg AB and director in Active Capital AB,
Koenigsegg Automative AB, Radius Technology AB, Simonsen AB,
Syntagma AB, Boliden AB, Carl Bro A/S and Rorvik AB), Lennart
Asander (executive positions within Vattenfall AB and director in
Kraftdragarna AB, Compeer AB, Arlanda Express AB, Vaxtriket
Utveckling AB and Home Solution AB) and Raj Raithatha (CEO in
Versatel International).
(ii) The profit and loss statement and the balance sheet for the
year 2002 were adopted.
(iii) The company's profit/loss was allocated in accordance with
the managing director's and the board of directors' proposal.
(iv) The board of directors and the managing director were
discharged from liability.
(v) It was resolved to amend the articles of association in
accordance with the board of directors' proposal, resulting in an
increase of the share capital limits of the company.
(vi) It was resolved to assign the board of directors to appoint
a compensation committee and an audit committee. It was resolved
not to appoint a nominating committee.
CEO Tomas Franzen described Song's development during 2002 in his
speech.
At the first meeting of the board of directors, Roger Holtback
was appointed chairman of the board.
About Song Networks
Song Networks is a data and telecommunications operator with
activities in Sweden, Finland, Norway and Denmark. The Company's
business concept is to offer the best broadband solution for data
communication, Internet and voice to businesses in the Nordic
region. The Company has built local access networks in the
largest cities in the Nordic region. The Company was founded in
1995 in Sweden and have approximately 975 employees per September
30. The head office is located in Stockholm and there are an
additional 34 offices located in the Nordic
region.www.songnetworks.net
This document is essentially a translation of the Swedish
language version. In the event of any discrepancies between this
translation and the original Swedish document, the latter shall
prevail.
CONTACT: SONG NETWORKS
Tomas Franzen, Chief Executive Officer
Phone: +46 8 5631 0111
Mobile: +46 701 810 111
E-mail: tomas.franzen@songnetworks.net
=====================
S W I T Z E R L A N D
=====================
SWISS INTERNATIONAL: Reports Passenger Traffic for First Quarter
----------------------------------------------------------------
In the first quarter of 2003, SWISS carried a total of 2.7
million passengers on its scheduled flights. SWISS continues to
be challenged by the sluggish economic environment, the Iraq war
and the recent outbreak of SARS, all of which dampen the demand
for air travel. The average seat load factor in the traditionally
weak first quarter was 67.9%.
On the European network, an overall seat load factor of 49.6% was
achieved during the first three months. This figure is slightly
below the prior year level of 50.1% and reflects the current
unfavorable economical situation and geopolitical uncertainties,
which reduce the desire to travel by the clientele. High seat
load factors were achieved in Ireland, followed by the former
Republic of Yugoslavia, Denmark and Ukraine. The reduced demand
in Germany, Albania, Bulgaria and Italy resulted in seat load
factors below average. In the meantime, necessary network
adjustments have been taken, partially by downgrading of aircraft
sizes on routes or by canceling some frequencies or destinations.
These adaptations were announced earlier this year and came into
effect with the introduction of the 2003 summer timetable on
March 30.
In intercontinental traffic, the seat load factor attained was
77.2%. As SWISS entered into the intercontinental business only
in April 2002, no comparison with the prior year is possible.
Good seat load factors were achieved, especially in South
America, Canada, followed by Thailand, Singapore, Western Africa
and India. Due to uncertainty regarding the Iraq war, especially
routes to Saudi Arabia, United Arab Emirates, Egypt and Israel
have suffered. As regards the Iraq war a continuous monitoring of
the routes takes place and network adaptations are implemented in
order to maximize revenue and reduce costs (e.g. reduction of
Cairo service from 6 to 4 weekly frequencies on a temporary
basis).
The same has been initiated in form of a SARS task force that is
constantly checking the booking status of the most affected
routes (mainly South East Asia) in order to be able to react
rapidly. Because of a drop in demand, SWISS is temporarily
suspending its Monday Zurich - Tokyo flights (April 14 - May 19,
2003) and the corresponding Tokyo - Zurich return flights on
Tuesdays (April 15 - May 20, 2003)
Key figures of SWISS scheduled traffic production in the first
quarter 2003
Total passengers: 2 669 813
Total number of flights: 56 552
Available seat kilometers (millions): 9 100
Revenue passenger kilometers (millions): 6 182
Seat load factor: 67.9%
CONTACT: SWISS INTERNATIONAL
Corporate Communications
P.O. Box, CH-4002 Basel
Phone: +41 (0) 848 773 773
Fax: +41 61 582 35 54
E-mail: communications@swiss.com
Internet: http://www.swiss.com
===========================
U N I T E D K I N G D O M
===========================
ABERDEEN ASSET: Undertakes Restructuring of PanEuropean Team
------------------------------------------------------------
As part of Aberdeen's aim to create a fully integrated Pan-
European investment team it is with regret that we announce the
departure of Adrian Fowler, Head of Pan-Europe and Gregor Smith,
European Fund Manager, whose roles have become redundant. Yoon-
Chou Chong will be responsible for the further integration of the
investment team.
The changes are in line with Aberdeen Asset Management's
commitment to investment dynamism and an on-going drive to
implement a uniform and rigorous investment process across the
Group. The distinct investment style has been instrumental to
achieving long term outperformance across Aberdeen's Asian range
of funds and has been progressively implemented across all of
Aberdeen's investment desks in recent years, most recently
applying to the U.K. mainstream funds with the arrival of Yoon-Chou
Chong in September 2002. Both the Aberdeen U.K. Blue Chip Unit
Trust and Aberdeen U.K. Growth Unit Trust have achieved top
quartile ranking since Yoon-Chou Chong's appointment.
The fundamental principle behind this style is that the team
always acts on its own analysis of a company: meeting and
questioning management in order to collate an accurate report of
the company. Yoon-Chou Chong has already proven his ability to
transform the investment process in Australia.
These changes eliminate overlaps and inconsistencies while, at
the same time, strengthening process implementation. Adrian and
Gregor leave with our every good wish for the future and our
appreciation for their contribution over many years.
AUSTIN REED: Reviews All Options to Maximize Shareholder Value
--------------------------------------------------------------
Clothing retailer Austin Reed Group said it is reviewing all
options in order to "determine the best means to optimize
shareholder value" after posting a fall in full-year pretax
profits.
Austin Reed's pretax profit before exceptional items for the year
to end-January 2003 fell to GBP7.5 million from GBP8.2 million
last year. This is despite a group sales increase to GBP116.8
million from GBP116.2 million.
Disruption to trading at its flagship Regent Street store, which
is currently undergoing redevelopment, affected turnover and
profit.
The GBP12.3 million reshaping resulted to a second half loss of
GBP1.2 million in sales and GBP0.7 million in operating profits
compared to last year.
The statement that it is reviewing all options for the company
effectively puts the company for sale, according to AFX.
Privately owned Slater Menswear declared interest on the group
last month but made no formal offering. The move is thought to
have crossed out other potential suitors, according to the
report.
Richard Thompson, Harold Tillman, the Bennett brothers and
Italian group Marzotto were previously believed as possible
bidders for Austin Reed.
BRITISH AIRWAYS: To Mothball Loss-making Concorde Fleet
-------------------------------------------------------
British Airways announced Thursday the retirement of its
Concorde fleet of seven aircraft with effect from the end of
October 2003.
The airline said that its decision had been made for commercial
reasons with passenger revenue falling steadily against a
backdrop of rising maintenance costs for the aircraft.
Detailed discussions over an extended period with Airbus, the
aircraft's manufacturer, confirmed the need for an enhanced
maintenance program in the coming years, the carrier added.
British Airways has decided that such an investment cannot be
justified in the face of falling revenue caused by a global
downturn in demand for all forms of premium travel in the airline
industry.
The downturn has had a negative impact on Concorde bookings and
is set to continue for the foreseeable future, according to the
airline.
Rod Eddington, British Airways' chief executive, said: 'Concorde
has served us well and we are extremely proud to have flown this
marvellous and unique aircraft for the past 27 years.
'This is the end of a fantastic era in world aviation but
bringing forward Concorde's retirement is a prudent business
decision at a time when we are having to make difficult decisions
right across the airline.'
Noel Forgeard, president and chief executive officer of Airbus,
said: 'Airbus' predecessors Aerospatiale and British Aircraft
Corporation created Concorde some 40 years ago and we are proud
of this remarkable achievement.
'But its maintenance regime is increasing fast with age. Thus, as
an aircraft manufacturer, we understand completely and respect
the decision of British Airways, especially in the present
economic climate.
'It goes without saying that until the completion of the very
last flight, we will continue to support the airline so that the
highest standards of maintenance and safety are entirely
fulfilled.'
Mr Eddington added that today's announcement is not a direct
result of war in Iraq.
He said: 'While the threat of war and resulting military conflict
have had a further impact on premium travel demand, the decision
to retire Concorde has been based on a long-term revenue and cost
trend rather than recent events.
'I would like to place publicly on record my sincere thanks and
appreciation to all our staff, past and present, who have made
the Concorde story one of the most compelling in the history of
commercial flight.
'Our pride in the aircraft will never wane and I am determined
that we make its final six months in the sky a time for
celebration.'
Retiring Concorde will result in o84m write-off costs for the
year ended March 2003.
The airline is already planning to make its Concordes available
for the public to view in museums.
To honor the past 30 years of supersonic travel, British Airways
will announce shortly a program of special events and promotions
for air travellers.
For the next few months, British Airways will continue to operate
its Concorde services between London Heathrow and New York JFK
and seasonal services to Barbados.
BRITISH ENERGY: U.S. Rival May Challenge Legality of Bailout
------------------------------------------------------------
Energy company AES Corp. could contest the legality of the rescue
plan granted by the British government to ailing nuclear
generator British Energy.
The U.S.-based company will likely file a lawsuit in a European
Union Court after examining its case, an industry source told Dow
Jones Newswires.
The suit is expected to argue that the GBP2.1-billion bailout
approved by the government endangers competition since it
maintains a company that perpetuates an excess of generation
supply by force. The maintenance of British Energy creates an
artificially depressed energy price, the industry sector widely
agrees.
The European Commission approved the bailout on British Energy to
avoid the "risk of disruption in the supply of electricity in the U.K.
and to ensure nuclear safety."
Some market participants argue the explanation.
The U.K.'s wholesale prices have fallen about 40% since 1998 as the
government struggles to make power trading more competitive.
AES owns western Europe's largest power station Drax, which has
struggled against low wholesale power prices just like other
power stations, including TXU and British Energy.
AES Drax declined to comment about a possible lawsuit that the
source said would be filed in the European Court of First
Instance.
CHORION PLC: Results Reflect Tough Market Conditions of Sector
--------------------------------------------------------------
Chorion to build children's division on back of Noddy success
-- Group turnover GBP9.3 million (2001: GBP9.8 million)
-- EBIT DA (and non-recurring items) GBP4.1 million (2001:
GBP6.1 million)
-- Total net assets per ordinary share up from 2.3p in 2001 to
9.2p
Crime Brands
-- Turnover from crime brands up by 12% to GBP5.6 million
-- Christie re-branding has increased book sales by 25% worldwide
since launch
-- Over 1.2 million units of Agatha Christie U.K. partwork series
sold in 2002
-- 75% of crime brands publishing revenue now covered by minimum
guarantee contracts
Children's Brands
-- U.K. Noddy re-launch a huge success creating a 'must have'
children's brand
-- Make Way for Noddy on Five wins 20% audience share amongst 4-9
year-olds
-- Noddy tops pre-school Christmas video charts in U.K.
-- Chorion to retain and develop children's division
William Astor, non-executive Chairman of Chorion, said:
'Chorion has transformed Noddy into a 'must have' brand,
demonstrating our ability to enhance the value of classic
children's properties. We have therefore decided to keep and
develop our children's division - building a dynamic media brand
business with considerable growth potential'.
Nicholas James, Managing Director of Chorion, said:
'These results reflect the tough market conditions experienced by
companies across the media sector. However, our Christie
publishing program has been hugely successful - with dramatically
increased book sales and popular new publishing formats launched.
In addition, we have taken steps both to guarantee future
revenues and open up growth opportunities in the year ahead. We
enter 2003 with greater earnings visibility than ever before and
with clear objectives that will enhance profitability going
forward.'
To see financials: http://bankrupt.com/misc/ChorionPlc.htm
CONTACT: CHORION PLC
Analysts/Investors:
Nicholas James
Jeremy Banks
Phone: 020 7434 1880
CORUS GROUP: Unions Pressure Chairman to Step Down From Post
------------------------------------------------------------
The chairman of Anglo-Dutch steel manufacturer Corus on Wednesday
came under renewed pressure from Dutch unions.
The employees are blaming chairman Brian Moffatt for
mismanagement, large losses, and legal action against the works'
council and Dutch supervisory board.
To express their discontent, the group plans to stage a joint
protest throughout Europe on Monday. As a prelude, unions FNV
Bondgenoten, CNV Metaal en Elektro, De Unie and VHP Corus will
issue red cards to staff in the Netherlands on Thursday and
Friday.
Workers had to sign the cards that say it isn't too late to make
Corus profitable again, and send them back to Corus unions, a
statement from the group said.
Mr. Moffat, who is at the same time acting as CEO after Tony
Pedder resigned last month, said he would step down after the
company finds a new chief executive. He plans to postpone his
retirement scheduled for April.
Mr. Pedder resigned after Corus unveiled net loss of GBP458
million and was forced to abandon the EUR750 million sale of its
European aluminum plants due to the opposition of the Dutch
supervisory board.
CONTACT: CORUS GROUP PLC
Anthony Hamilton
Phone: +44 (0)20 7717 4444
Home Page: http://www.corusgroup.com
GLAXOSMITHKLINE PLC: Loses AmoxC Case Against Novartis Group
------------------------------------------------------------
The Novartis Group has won an important ruling in its legal
dispute with GlaxoSmithKline concerning AmoxC
(amoxicillin/clavulanic acid), the Group's generic version of
GSK's top-selling antibiotic Augmentin.
GSK had sought an order to prevent Novartis affiliates from
importing and selling AmoxC in the U.S., claiming that the
affiliates used a proprietary GSK strain of bacteria to
manufacture the generic product.
An Administrative Law Judge of the U.S. International Trade
Commission (ITC) dismissed GSK's claims and decided that the
strain is not entitled to trade secret protection. He stated that
the strain lost any trade secrecy protection that it may have had
when GSK entered into a prior settlement agreement with Novartis'
subsidiary Biochemie.
GLOBAL ENERGY: Narrows Consolidated Net Loss After Tax to $2.5 M
----------------------------------------------------------------
Preliminary Results for the year ended December 31, 2002
'Proved plus probable reserve values increased by 263%'
Global Energy Development PLC, the petroleum exploration and
production company, is pleased to announce preliminary results
for the year ended December 31, 2002.
Key Points
-- Operational Review:
-- Loss on ordinary activities before taxation reduced by 88%
to $1,907,000 (2001: loss $15,754,000);
-- Proved reserve volumes increased by 9.7%, as a result of
successful workovers (Bolivar and Torcaz) and construction of the
Canacabare pipeline;
-- Reductions in operating expenses and future development
costs (along with improvement in oil prices) substantially
increasing reserve values; and
-- Proved plus probable reserve values increased by 263%.
-- Favourable trends within the oil industry:
-- Price recovery by mid 2002 with significant escalation at
year end;
-- Inability to increase surplus capacity continuing to cause
upward pressure on prices; and
-- Recovery of growth in worldwide petroleum demand experienced
in last quarter 2002 continuing into 2003.
-- Strength of Latin American Focus:
-- Petroleum resource base second only to Middle East;
-- Full cost of developing and producing oil among lowest in
the world; and
-- Closest of all major producing regions to North America,
largest oil consumer in the world.
Commenting on the results, Chairman of Global Energy Development
PLC, Mikel D. Faulkner, said:
'Given current and anticipated industry conditions and Global's
quality developmental properties, high potential exploration
projects and experienced management team, we believe we are
strategically well positioned and remain very excited about the
future of the oil industry and Global's role in it.'
Chairman And Managing Director's Statement
We are pleased to report to you on our first year of operations
as a U.K. company. The year 2002 was eventful, not only for
Global Energy Development PLC and its subsidiaries ('Global' or
'Group') but also for the business of international petroleum,
and it is likely that 2003 will witness additional profound
events that may alter our industry. We are convinced that the
achievements of Global during the past twelve months have
positioned the Group well for the future and the highlights of
some of these achievements, as well as our comments on industry
and economic conditions are set out below.
Initial Listing
On March 25, 2002, Global Energy Development PLC (the 'Company')
ordinary shares were formally admitted for trading on the
Alternative Investment Market of the London Stock Exchange
('AIM'), chosen for its receptiveness to internationally focused
companies with potential for growth. Global also successfully
completed its first private placing of ordinary shares in March
2002.
World Economic Conditions
Because of the lingering unsettled conditions relating to the
September 11, 2001 tragedy the past year witnessed very little
worldwide economic growth as uncertainty gripped not only the
financial markets, but also individual investors and consumers.
Some of this uncertainty seemed to be lifting by the early fall
but has re-emerged as a result of the lead up to and subsequent
U.S.-led invasion of Iraq.
Industry Conditions
The Company began 2002 experiencing oil prices below historical
trends and serious concerns in the financial markets that prices
would fall even further.
However, OPEC's objective of maintaining the 'basket' of oil
prices in the middle to upper U.S.$20 range was and is considered
by Global to be a key determinant of future price levels. Events
confirmed the validity of this conviction as OPEC cut production,
which in turn reduced above ground petroleum inventories. By mid-
year prices were recovering and were escalating significantly at
year-end aided by the political turmoil in Venezuela. Even more
encouraging was the recovery of growth in worldwide petroleum
demand experienced in the last quarter of 2002, which has
continued into 2003 at a rate of increase year on year of between
1% and 2%. Given these favorable trends, many oil industry
observers are now forecasting at least a 1 million BOPD increase
in worldwide petroleum demand this year.
Oil price volatility and declining excess production capacity are
two very important factors, which will continue to affect the
industry and Global. The outcome of current and future events
in the Persian Gulf as well as Venezuela will undoubtedly have a
significant impact on the price of petroleum. Falling surplus
production capacity worldwide will continue to cause oil price
volatility during periods of high seasonal demand. Because the
industry has been unable to replace its produced reserves for
almost two decades, it appears unlikely that any significant
increase in surplus production capacity will materialize in the
near to medium term. This inability to increase surplus capacity
will continue to cause upward pressure on oil prices. Given these
industry conditions and Global's quality development projects,
the management remains very excited about the future of the oil
industry and Global's role in it.
Latin American Focus
According to the United States Geologic Survey in the year 2000,
Latin America has a petroleum resource base second only to that
of the Middle East. Moreover, as reported by John S. Herald, the
full cost of developing and producing oil in Latin America is
among the lowest in the world. Latin America is the closest of
all the major producing regions to North America, which is the
largest oil consumer in the world. Given the tensions in the
Middle East and North American concerns over security, proximity
to hydrocarbon resources and tanker transmit times are of
increasing importance.
Operational Review
Global achieved a number of important operational goals during
2002:
-- Exploitation success was achieved through workovers in Bolivar
and Torcaz, the Company's producing fields in Colombia.
-- Construction of a pipeline connecting the Canacabare producing
property with Global's Palo Blanco field was commenced.
-- Proved reserve volumes increased by 9.7%, as a result of
successful workovers as well as the construction of the
Canacabare pipeline.
-- Most importantly, proved plus probable reserve values
increased substantially to $272 million from $75 million due to
the improvement in oil prices, and reductions in operating
expenses and future development costs.
Development costs have been significantly reduced as a result of
redesigning future wells to incorporate less expensive slimhole
drilling techniques.
Operating costs are lower as a result of continued efforts to
reduce field labor expenses.
Summary
We believe we are strategically well positioned for the future
because of our quality developmental properties, high potential
exploration projects and an experienced, enthusiastic management
team that is committed to achieving value for Global's
shareholders.
Mikel D. Faulkner, Chairman
Stephen C. Voss, Managing Director
April 9, 2003
Financial Overview
For the year ended December 31, 2002 the Group recorded an
operating loss of $1,898,000 (2001: loss $11,405,000) and a loss
on ordinary activities before taxation of $1,907,000 (2001: loss
$15,754,000).
On March 25, 2002 Global's ordinary shares were admitted for
trading on the Alternative Investment Market (AIM) of the London
Stock Exchange.
Simultaneously, Global successfully completed its initial private
placing of 2,021,902 ordinary shares raising $1,435,000 in the
process.
Global held its first Annual General Meeting (AGM) on August 7,
2002. Following the AGM, Global affected a bonus issue of
warrants on the basis of one warrant for each four ordinary
shares held by shareholders as of August 7, 2002.
Turnover
Oil turnover for 2002 was $7,619,000 compared to $8,291,000 for
2001. The decreased in turnover of $672,000 was the result of
reduced production from Palo Blanco and Bolivar due to
anticipated production declines and specific mechanical problems.
Turnover for 2002 was also reduced as a result of a small decline
in the average net price received from the Group's crude
purchaser.
Operating Loss
The operating results for 2002 were much improved over 2001. The
improvement was a result of reduced impairments recorded in 2002
compared to 2001. The impairments recorded in 2001 were related
to significant adjustments to our investment in Costa Rica, where
the realisation was in doubt and the impairment of selected
production facilities in Colombia, which were unlikely to be used
in the future. Impairments for 2002 were primarily the result of
adjustments in the carrying value of our oil field inventories in
Colombia and other adjustments to the carrying value of non-
evaluated properties in Peru and Panama.
Other revenue increased $304,000 as a result of our ongoing cost
review effort that resulted in the correction of improperly
assessed transportation charges in Colombia.
Additionally, operating results were improved as a result of
reduced charges related to Depreciation, Depletion and
Amortisation as a result of lower production quantities and
improvements in operating efficiencies in field
operating costs.
Taxation
Taxation provisions for the current year were the result of local
Colombian taxation charges associated with a special 'War Tax'
(also known as 'Security Tax') assessment of $295,000 imposed by
the Colombian government in August 2002.
The company also made provisions for 'Presumptive Income Tax', a
local Colombian tax based on certain equity assumed employed
within the country of Colombia.
This provision for 2002 was estimated to be approximately
$300,000. A provision of $620,000 was recorded in 2001.
Net Loss After Tax
The consolidated net loss after tax for the year 2002 amounted to
$2,502,000 compared to $16,374,000 for 2001.
Balance Sheet
The net assets of Global decreased by $2,331,000 in 2002 compared
to 2001, which included the effect of the current year
depreciation, depletion and amortization, along with selected
other tangible asset impairments during the year.
Rodger L. Ehrlish
Finance Director
April 9, 2003
To See Financial Statements:
http://bankrupt.com/misc/Global_Energy.htm
CONTACT: GLOBAL ENERGY DEVELOPMENT PLC
Home Page: http://www.globalenergyplc.com
Mikel D. Faulkner, Chairman
Phone: (001-817) 424-2424
BUCHANAN COMMUNICATIONS
Phone: (0044-207) 466-5000
Tim Thompson/Catherine Miles
IMPERIAL CHEMICAL: Chief Executive Quits Following Warning
----------------------------------------------------------
U.K. specialty chemicals and paints group Imperial Chemical
Industries PLC appointed John McAdam to replace recently resigned
chief executive Brendan O'Neill.
Mr. O'Neill's departure comes just two weeks after the company
issued a profits warning which wiped around 40% off its shares
and sparked calls for his resignation.
Analysts first saw the advance of O'Neill's exit when the
chemicals giant and former industrial powerhouse revealed that
trading and performance at two acquired businesses would be well
below bearish City forecasts.
ICI bought Quest, maker of food ingredients and flavors, and
National Starch, in line with O'Neill's plans to diversify into
higher margin sectors of the chemical industry.
Speculations were aroused as to why ICI management waited so long
to reveal the extent of the problems and whether the warning from
Quest and National Starch was due to cyclical factors or was
actually self-inflicted.
ICI chairman Lord Trotman said O'Neill has agreed to step aside
"in the best interests of the company". He also thanked O'Neill
for his "unstinting efforts" since he joined the company in 1998.
For McAdam, his immediate task is to carry on with the group's
ongoing cost-cutting review, determined, as he is to "drive the
business forward in the best interests of shareholders".
Currently chairman and chief executive of ICI Paints, a role
given to him in January 1998, McAdam was also elected ICI
director responsible for research, development and technology and
ICI's activities in Asia.
He worked with Unilever and Unichema International prior to ICI
and is currently a non-executive director of Severn Trent PLC, as
well as a member of the University of Surrey business advisory
board.
IMPERIAL CHEMICAL: Further Management Changes Foreseen
------------------------------------------------------
The surprise resignation of Brendan O'Neill as chief executive of
Imperial Chemical Industries PLC may be followed with further
changes in management, according to a spokesman of the company.
The ICI spokesman said that "at some stage, there will be"
further changes in management, although there is no specific plan
"at the moment" to affect another revamp, as the group attempts
to restore investor confidence after a profit warning last month.
Its National Starch business is also likely to experience wide-
ranging changes.
O'Neill will be replaced by John McAdam, the current chairman and
chief executive of ICI Paints.
According to the spokesman, O'Neill's departure "may surprise the
market, but not shock" it. He further said the board "is aware
of the market's feelings... There's a bit of a view that
(O'Neill's exit) was necessary to effect the change".
The recently resigned chief executive, who is on a one-year
rolling contract, will receive a pay-out package "roughly in
line" with his last year's entitlement.
O'Neill received an annual salary of STG615,000 in 2002, on top
of STG361,000 in incentive payments and STG39,000 in benefits.
It is known that in ICI's 2002 annual report, O'Neill is entitled
to over 180,000 shares in the company and options of 1.35 million
shares carrying an average exercise price of STG4.71 per share.
However, the spokesman stressed that the final terms of the
package have yet to be discussed and finalized.
ICI warned last month that first quarter profits will fall by
24%, as troubles at Quest and National Starch mounted. The news
was immediately followed by a 44% (more than STG800 million)
wipeout from the company's value, prompting rating agency
Standard & Poor's to downgrade ICI's outlook to stable from
positive.
Analysts also questioned O'Neill's capability to turn ICI's
fortunes, predicting that a top-level management revamp could be
forthcoming.
Quest's chairman and chief executive, Paul Drechsler, has
previously resigned.
IS SOLUTIONS: Slips Into Red, Discontinues U.S. Operations
----------------------------------------------------------
IS Solutions plc
Preliminary Results for the year ended 31 December 2002
--- Results in line with expectations
-- Turnover of GBP7.426 million
-- Pre-tax pre-goodwill loss (for continuing operations) of
GBP442,000
-- U.S. operations discontinued
-- Outsourcing annualised revenue covers 72 per cent. of total
Company overheads
-- Net cash increased at year-end to GBP1.094 million
'The Company traded at a small profit level in the fourth quarter
of last year and the Board expects that the first quarter of 2003
should be close to breakeven.'
'It is the Board's belief that we are reaching the bottom of the
down cycle in our industry. We are experiencing more activity at
the bidding stage and, although the process of closing business
is still long and drawn out, we believe that 2003 offers greater
opportunities.'
Chairman's Statement
Market conditions continued to be difficult throughout the second
half of 2002 and, as previously announced, our U.S. operation was
closed. Having progressively reduced the headcount in the U.S. we
had reached the stage where prospects for recovery there were so
limited that it became uneconomic to maintain our presence.
Group turnover, including discontinued operations, was GBP7.426
million (2001: GBP10.873 million) with a group pre-tax, pre-
goodwill loss of GBP932,000 (2001: profit of GBP215,000). This
was struck after non-recurring operating losses for the
discontinued U.S. operations of GBP490,000 comprising a bad debt of
GBP217,000 (announced in the interims), US closure costs of
approximately GBP82,000 and trading losses in the US for the year
of GBP191,000. Loss per share (excluding goodwill amortisation)
was 3.3 pence (2001: profit of 0.70p) with net assets at 31st
December 2002 standing at GBP3.190 million (2001: GBP4.462
million). Net cash increased in the year to GBP1.094 million as
at 31st December 2002 (2001: GBP758,000).
For the U.K., the results were in line with Board expectations with
turnover for continuing operations for the full year at GBP7.155
million (2001: GBP10.004 million) and pre-tax, pre-goodwill loss
for the continuing operations of GBP442,000 (2001: profit of
GBP223,000).
In view of the continuing difficult trading conditions, the board
has elected not to pay any dividend.
U.K.
Projects: 2002 was the second year that we experienced companies
holding back from investment in IT projects and, where projects
were implemented, there was substantial pressure on the daily
charge out rates. Our focus throughout the year continued to be
on our existing client base and we would like to thank them for
their loyalty during this period.
Outsourcing: as indicated in my statement last year, outsourcing
was a key area for us during 2002, being an area that had the
potential for some growth.
Revenues during the year grew by 8.3%. We continued to build on
our major outsourcing contracts with Toshiba, Toyota and Channel
4 and added a number of new clients such as Veritas, Accord and
Robbins Olivey. The ongoing annualized revenue from this area now
covers some 72% of our total company overheads.
Financial Products: financial products continues to be the most
stable area of our business and was a strong contributor
throughout the year. A key client has been Proquote Ltd. in which
we had a small shareholding, held at a cost of GBP25,000. The
recent sale of Proquote to the London Stock Exchange Plc., dealt
with as a post balance sheet event, will result in the company
receiving an initial GBP480,000 (further boosting our cash
reserves), with potential for a further GBP400,000 over the next
2 years.
USA
As previously announced, the loss making U.S. operation was closed
due to there being no signs of any significant medium term
improvements in trading. All closure costs, which total
GBP82,000, are included in the 2002 accounts.
Personnel
The continuing recession in the IT industry meant that we had to
further reduce headcount during 2002 to keep our costs in line
with the sustainable levels of business. The Board would like to
express its thanks to all our employees for their mature approach
in what has been a difficult year.
Outlook
With the closure of the U.S. office and the reduction in our cost
base which took place in 2002, the Company was able to move into
a small profit in the fourth quarter of last year and the Board
expects that the first quarter of 2003 should be close to
breakeven. Our balance sheet remains strong, we remain cash
generative and we have successfully retained the core skills
required in the group. It is the Board's belief that we are
reaching the bottom of the down cycle in our industry. We are
experiencing more activity at the bidding stage and, although the
process of closing business is still long and drawn out, we
believe that 2003 offers greater opportunities. Although the
current events in the Middle East have cast some uncertainty on
the potential for recovery, it is three years since we
experienced the IT investment of Y2K, and companies are now
beginning to look at replacing certain aspects of their IT
infrastructure.
Barrie Clark
April 9, 2003
To See Financial Statements:
http://bankrupt.com/misc/IS_Solutions_PLC.htm
IZODIA: Hangs Fire Against Orb, Expects Missing Funds Returned
--------------------------------------------------------------
Failed software maker Izodia Plc has agreed to put on hold its
legal action against its largest shareholder Orb.
The cash shell, which is at the center of a Serious Fraud
Investigation, alleges missing funds were wrongly transferred to
associates of Orb last year.
The agreement between the parties--details of which have not been
disclosed-- reportedly came as Orb was due to disclose to a
Jersey court the whereabouts of GBP33 million of cash missing
from Izodia's account.
Izodia is believed to have agreed to hold fire on the
understanding that Orb assets will soon be sold, allowing it to
return the funds immediately.
In January, Izodia said: "Following a preliminary investigation,
it is clear that all but a small proportion of the company's cash
holdings are no longer under the company's control," adding that
the exact whereabouts of the company's funds are still being
investigated as most of the funds have been transferred to
associates of Orb arl.
Board of director Rory Macnamara further said: "The investigation
currently in progress will be completed and further steps will be
taken seeking the recovery the company's funds as soon as
possible".
CONTACT: IZODIA PLC
Rory Macnamara, Chairman
Phone: 020 7747 5601
WESTLB PANMURE
Tim Linacre
Phone: 020 7020 5444
Richard Potts
Phone: 020 7020 5121
PIZZAEXPRESS PLC: Clarifies Recommendation of Venice Bidder Bid
---------------------------------------------------------------
On Friday 4 April 2003 Venice Bidder announced that its 367p per
share offer would be extended and remain open for acceptance
until 3.00 pm on Thursday April 10, 2003. In this announcement
Venice Bidder referred to its offer as being recommended.
PizzaExpress would like to point out that the recommendation for
the Venice Bidder offer was withdrawn on Thursday April 3, 2003
at the same time as the full Board of PizzaExpress announced its
intention to recommend the proposed 387p per share offer from
GondolaExpress.
In addition, following recent press comment concerning market
consensus profit figures, PizzaExpress confirms that no formal
profit forecast has been made under Rule 28 of the Code. Any
comment made concerning market consensus profit figures should
not be interpreted as a profit forecast nor as an endorsement of
such figures.
PizzaExpress expects to release its third quarter trading update
shortly.
This announcement has been approved solely for the purposes of
Section 21 of the Financial Services and Markets Act 2000 by
Credit Suisse First Boston (Europe) Limited.
Credit Suisse First Boston (Europe) Limited is acting for
PizzaExpress and for no one else in relation to the matters
described in this announcement and will not be responsible to
anyone other than PizzaExpress for providing the protections
afforded to clients of Credit Suisse First Boston (Europe)
Limited or for providing advice in relation to the matters
described in this announcement.
CONTACT: CITIGATE DEWE ROGERSON
Phone: 020 7638 9571
Sue Pemberton
ST. JAMES'S: Announces Availability of Certain Documents
--------------------------------------------------------
In accordance with Chapter 9, Paragraph 32 of the Listing Rules,
SJPC has submitted two copies of the following documents to the
U.K. Listing Authority:
-- Annual Report & Accounts 2002
-- Notice of AGM 2003
-- Proxy Form
-- Articles of Association
These documents will shortly be available for inspection at the
U.K. Listing Authority's Document Viewing Facility, which is
situated at:
Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
Phone: (0)20 7676 1000
*****
St. James Capital incurred a loss that is more than twice as big
as last year's due to losses in two of its strategic investments,
Life Assurance Holdings and Italian joint venture Nascent.
The savings and wealth management group posted a loss of GBP41.2
million as a result of a GBP27.7 million loss on the group's 23%
stake in Life Assurance Holdings, and a GBP19.4 million loss on
writing off and winding up Nascent. The result compares with
last year's operating loss of GBP16.8 million.
SUNDERLAND PLC: Warns of Painful Restructuring, CEO Resigns
-----------------------------------------------------------
Sunderland PLC, the Premier League Football Club, today announces
its interim results for the six months ended 31 January, 2003.
Key Points
-- Turnover at GBP26.5m (2002: GBP26.9m)
-- Operating profit pre player amortisation at GBP0.2m (2002:
GBP6.0m)
-- Operating loss of GBP4.8m (2002: loss of GBP0.2m)
-- Loss before tax of GBP5.4m (2002: profit of GBP4.4m)
-- Loss per share - 5.2p (2002: 46.0p earnings per share)
-- New team manager - Mick McCarthy
-- Academy of Light now operational
Chairman Bryan Sanderson, commenting on the results, said:
'The 2002/2003 season has been one of the most disappointing in
our recent history. Everybody connected with the Club will feel
the pain should we relinquish our Premiership position, as seems
increasingly likely despite significant investment in the playing
squad...Painful restructuring will be needed on both the playing
and non-playing side of the business but we are determined to
take tough decisions in the best interests of the long-term
future of the Club...Managing the cost base of our business will
be a priority, in order to re-align it with our turnover. '
Sunderland Plc - Interim 2003
Chairman's Statement
Introduction
The 2002/2003 season has been one of the most disappointing in
our recent history. Everybody connected with the Club will feel
the pain should we relinquish our Premiership position, as seems
increasingly likely despite significant investment in the playing
squad.
Much has happened during a season that has seen three managers in
charge of the team. It was important to recognise the mistake
with our previous appointment and take decisive action with the
early appointment of a renowned manager to give us the best
chance for success in the coming seasons.
Painful restructuring will be needed on both the playing and non-
playing side of the business, but we are determined to take tough
decisions in the best interests of the long-term future of the
Club.
Results And Dividends
The disappointing football performance and the failure to reduce
our wage bill as hoped has led to a substantial operating loss of
GBP4.8m for the six months to 31 January 2003 (2002 - GBP0.2m
loss).
Minimal profits on the disposal of players and a net interest
charge of GBP0.6m means we have recorded a loss before tax of
GBP5.4m, compared to a profit of GBP4.4m in 2002.
We are reporting a loss per share of 62.6p (2002 - earnings per
share 36.1p) and an adjusted loss per share (excluding player
amortisation and disposal profit) of 5.2p (2002 - 46.0p earnings
per share).
As in previous years, no interim dividend will be paid.
Operating Review
Turnover for the six months was lower, at GBP26.4m (2002 -
GBP26.9m). The increase from Premier League television payments
was more than offset by the fall in gate receipts and other
commercial income streams.
Gate receipts and programme revenue fell by 18% to GBP7.5m (2002
- GBP9.2m), reflecting a lower average league attendance and one
less league game.
Television and media income was up 23% to GBP12.2m (2002 -
GBP9.9m) as the amounts awarded under the Premier League
television contracts increased. We also received one additional
Sky appearance and one additional pay-per-view fixture.
Sponsorship, hospitality and royalties income decreased slightly
- by 7% to GBP3.3m (2002 - GBP3.5m).
Operating expenses, excluding player amortisation and trading,
increased by 26% to GBP26.3m (2002 - GBP20.9m), caused entirely
by wage cost increases. Our wages to turnover ratio is at an
unacceptable level of 70% (2002 - 46%) and this needs to be
significantly reduced next year.
The wages figure at the interim includes the settlement costs
payable on the departure of Peter Reid. The settlement for Howard
Wilkinson and Steve Cotterill will be reflected in the full year
results.
We had only GBP0.1m profit from the disposal of players (2002 -
GBP5.0m), a reflection of the prevailing transfer market
conditions.
Net interest payable was GBP0.6m (2002 - GBP0.4m), as our level
of debt increased following our investment in players and the
Academy of Light, although lower interest rates mitigated this.
There is no tax charge for the period (2002 - GBP1.3m) leaving
losses after tax of GBP5.4m (2002 - GBP3.1m profit).
Full Year Results
With the close season months of June and July being in the second
half year and league games weighted towards the first half, final
operating losses will be significantly higher than at the
interim.
Football
We have entrusted the future of our footballing first team to
Mick McCarthy, the ex Republic of Ireland International Team
Manager. Mick is a well-respected and successful figure in the
game and is currently assessing the squad and formulating his
plans for next season.
In March we opened the magnificent Academy of Light - a state-of-
the-art facility for use by both first team and youth players -
and in the same month Kees Zwamborn joined us as Academy Director
from Ajax FC, where he held the same position and had a first
class record in developing young players.
We believe that we have the right people in place for both our
short and longer-term future.
It was with great pride that we recently hosted the England v
Turkey 2004 European Championship qualifying game at the Stadium
of Light. Our selection for England's key home game of the group
is testament to the superb facilities we enjoy and makes us even
more determined to ensure Premiership football graces the Stadium
of Light.
People
Everybody is aware of the impact of underperformance in the
Premiership and we have had to take a long hard look at our
position and take some tough decisions.
It is with very great regret therefore that we are announcing a
significant number of proposed redundancies. Our likely
relegation and the financial realities of football require us to
reorganise our business. Major player squad restructuring is also
essential for the survival of the business and work has already
begun in this area.
I have also reluctantly accepted the resignation of Sunderland
AFC Chief Executive and PLC Director Hugh Roberts, with effect
from 31st May 2003. On behalf of both the Sunderland AFC and PLC
Boards I would like to thank Hugh for his valuable contribution
to the Club.
Future Prospects
While there is uncertainty over the next Premier League
television agreement, there is still another year left under the
existing agreement and any 'parachute' distribution would be
guaranteed for next season.
Our business has suffered from two seasons of disappointing
football performances, which have culminated in our likely
relegation from the Premiership. This is a major blow to our
ambitions, but we believe that our revenue streams are robust and
close to their core levels in areas such as corporate hospitality
and retail. Managing the cost base of our business will be a
priority, in order to re-align it with our turnover.
Finally, I should like to thank all our supporters for their
continued support of Sunderland AFC. They have been magnificent
in offering the players wholehearted support even when the
performances have been disappointing and we are all committed to
giving them a team worthy of their tremendous backing.
B. Sanderson
8 April 2003
To See Financial Statement:
http://bankrupt.com/misc/Sunderland.htm
CONTACT: SUNDERLAND PLC
Phone: 0191 551 5000
John Fickling, Deputy Chairman
Hugh Roberts, Chief Executive
BUCHANAN COMMUNICATIONS
Phone: 020 7466 5000
Mark Edwards/Bobbie Swanson
*************
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 * * *