/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/031219.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, December 19, 2003, Vol. 4, No. 251 Headlines F I N L A N D M-REAL CORPORATION: Foresees Negative Results for 2003 M-REAL CORPORATION: S&P Ratings Cut to 'BB+'; Outlook Stable G E R M A N Y ALLIANZ AG: Sale of Beiersdorf Stake to Tchibo Cleared BERTELSMANN AG: Dieter Vogel to Chair Supervisory Board DEUTSCHE TELEKOM: Raises EUR535 Mln from Asset-backed Securities SMS AG: MAN to Relinquish Shareholding to Business Partner WESTLB AG: To Cede Control of Brokerage Business to Lazard G R E E C E ROYAL OLYMPIC: Two Ship Owning Subsidiaries File for Chapter 11 I T A L Y GIANNI VERSACE: CEO's Departure Could Trigger More Shakeup RENO DE: Espais Promocions to Pay EUR80 Mln for Spanish Assets N E T H E R L A N D S KONINKLIJKE AHOLD: Disco Sell-off Talks Break Down KONINKLIJKE AHOLD: Former Chief Executive Questions Termination P O L A N D NETIA SA: Court Dismisses Anti-competitive Practice Lawsuit S W E D E N SAS GROUP: Signs New Revolving Credit Facility S W I T Z E R L A N D ERB GROUP: Japanese Financial Group Leads Bidders for Import Biz U N I T E D K I N G D O M AMP LIMITED: CEO Notes Strong Demand in Institutional Bookbuild AUTOMOTIVE PRECISION: Grant Thornton Offers Business for Sale AVENA CARPETS: Original Owners Save Firm from Collapse BRITISH AIRWAYS: Loses Appeal in Virgin Atlantic Lawsuit BRITISH ENERGY: Reduces Annual Nuclear Output Forecast CANARY WHARF: Urges Shareholders to Support Property Sale FILTRONIC PLC: To Sell Certain Assets in California INDEPENDENT NEWS: Undertakes EUR53.5 Million Restructuring LEEDS UNITED: Attracts Interest from Chinese Investors MIDLANDS ELECTRICITY: E.U. Commission OKs Proposed Sale to E.ON MISYS PLC: Divestments Hit First-half Revenues NETWORK RAIL: Demonstrates Improvement in Autumn Performance NETWORK RAIL: Reiterates Goal to Improve Operations ROYAL MAIL: Agrees to Open Delivery Network to U.K. Mail TELEWEST COMMUNICATIONS: Asks Creditors to Identify Claims ********* ============= F I N L A N D ============= M-REAL CORPORATION: Foresees Negative Results for 2003 ------------------------------------------------------ Owing to M-real Corporation's weaker-than-expected fourth quarter, the Group's profit before extraordinary items for 2003 will be clearly negative. The result development is a consequence of the reduced price level of main products and the weakening of the dollar and the pound. In addition, a total of EUR60 million to EUR70 million non-recurring items will be booked in the fourth quarter result before extraordinary items. The non-recurring expenses include the restructuring of loan portfolio, greater-than-normal credit losses, provisions booked for environmental liabilities, as well as expenses relating to agreed personnel reductions. The aim of restructuring the loan portfolio is to reduce the financing costs of the forthcoming years. Furthermore, EUR15 million to EUR20 million costs from the closing down of operations will be booked under extraordinary items. M-real Corporation's financial statements and result for 2003 will be disclosed on February 5, 2004. Corporate communications M-REAL CORPORATION CONTACT: M-REAL CORPORATION Jouko M. Jaakkola, President and CEO Phone: +358 10 469 4118 Heikki Saarinen, Senior Vice President and CFO Phone: +358 10 469 4686 M-REAL CORPORATION: S&P Ratings Cut to 'BB+'; Outlook Stable ------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered to 'BB+' from 'BBB-' its long-term corporate credit rating on Finland-based Forest products company M-real Corporation. The outlook is stable. At the same time, the senior unsecured debt ratings on M-real and related entity Metsa Group Financial Services Oy (Metsa Finance) were lowered to 'BB+' from 'BBB-'. In addition, the short-term ratings on M-real and Metsa Finance were lowered to 'B' from 'A-3'. "The downgrades reflect M-real's continued weaker-than-expected operating and financial performance," said Standard & Poor's credit analyst Alf Stenqvist. "This is the result of continued weak market conditions for the group's main products (primarily fine papers), negative currency effects, high debt levels, and operating inefficiencies. "Although Standard & Poor's expects a gradual improvement in market conditions during 2004, and reduction in M-real's debt levels through asset disposals, operating cash flow and credit measures are expected to remain slightly weak over the medium term, and in the longer term be more in line with the new ratings," said Mr. Stenqvist. At September 30, 2003, M-real had net debt of about EUR3.3 billion ($3.8 billion). "The stable outlook reflects the expectations that M-real's financial profile will improve during 2004," said Mr. Stenqvist. In the longer term, net debt to capital is expected to be about 45%-50%, while FFO to net debt should average at least 20% over the cycle. M-real is a major European paper producer and the largest fine paper producer in Europe, with a fine paper production capacity of about 3.5 million metric tons per year. ============= G E R M A N Y ============= ALLIANZ AG: Sale of Beiersdorf Stake to Tchibo Cleared ------------------------------------------------------ The European Commission has approved the acquisition of consumer goods maker Beiersdorf AG by Tchibo AG, both German. The deal does not raise any competition concerns as the companies' core activities are on different markets. Tchibo AG is a family-owned German company, which is mainly active in the coffee sector. The company manufactures and distributes coffee, consumer goods and services throughout its retail outlets and its coffee shops. Beiersdorf AG is an international branded goods company also based in Germany. The company is active in the production and sale of a large variety of consumer goods, in particular cosmetics, medical and personal health care products and adhesives (e.g. Nivea, Hansaplast, Tesa). According to a transaction notified to the Commission for clearance under the Merger Regulation, Tchibo will achieve control of Beiersdorf by purchasing a total stake of 20.10% from the German insurance company Allianz that will increase its shareholding in the company to 50.46%. The Commission's investigation has shown that there are no significant overlaps between the activities of Tchibo and those of Beiersdorf since the companies' core activities focus on different markets. Tchibo sells within its sales concept ("A new experience every week") some products that are in competition with Beiersdorf's. But even with the narrowest market definition ("bandages" and "fly screens") the increment in market shares is insignificant. Moreover, vertical issues do not arise as it is excluded that the merged company could use Tchibo's outlets to sell Beiersdorf products in a way that competitors could be "foreclosed." The Commission therefore concluded that the acquisition would not lead to a creation or strengthening of a dominant position. BERTELSMANN AG: Dieter Vogel to Chair Supervisory Board ------------------------------------------------------- Dieter Vogel is the new Bertelsmann AG Supervisory Board Chairman. The international media and entertainment company announced Wednesday that its Supervisory Board has elected Mr. Vogel, who was previously vice-chairman of the Supervisory Board, effective January 1, 2004. Jurgen Strube will be the new vice-chairman of the Supervisory Board. The departing Supervisory Board Chairman Gerd Schulte-Hillen is leaving Bertelsmann at the end of the year as announced in November. The appointment of a new Supervisory Board member will be decided upon at a later date. Dieter Vogel began his professional career in 1970 as assistant to the Bertelsmann AG Executive Board, and later as a member of the Mohndruck management. After having held several executive positions at Pegulan AG in Frankenthal, he was appointed Chairman of the Executive Board of Thyssen Handelsunion AG in 1986, which also made him a member of the Thyssen AG (Duisburg) Executive Board. In 1991, he was named Vice-Chairman of the Executive Board of Thyssen AG, and in 1996 its Chairman of the Executive Board. After leaving Thyssen AG in 1998, Mr. Vogel started as a corporate consultant and managing partner of the Bessemer Vogel & Treichl GmbH, headquartered in Dusseldorf. In addition to his mandate at Bertelsmann, Mr. Vogel also chairs the MobilCom AG (Budelsdorf), and the WCM Beteiligungs- und Grundbesitz AG (Frankfurt) supervisory boards. He is also the Vice-Chairman of the Supervisory Board for Gerling Industrie-Services AG in Cologne. As Chairman of the Bertelsmann AG Supervisory Board, Mr. Vogel is also a member of the Bertelsmann Verwaltungsgesellschaft, which controls 75% of voting rights in Bertelsmann AG. Thus, as of January 1, 2004, the Bertelsmann AG Supervisory Board will consist of these members: (a) Dr. Dieter Vogel (Chairman) (b) Prof. Dr. Jurgen Strube (Vice-Chairman), Chairman of the Supervisory Board, BASF AG (c) Dr. Rolf-E. Breuer, Chairman of the Supervisory Board, Deutsche Bank AG (d) Andre Desmarais, President and Chief Executive Officer, Power Corporation of Canada (e) Dr. Michael Hoffmann-Becking, Lawyer (f) Sir Peter Job, Former Chairman of the Executive Board, Reuters Group PLC (g) John Joyce, Chief Financial Officer IBM (h) Oswald Lexer, Vice-Chairman of the Bertelsmann Corporate Works Council (i) Liz Mohn, Member of the Bertelsmann Foundation Executive Board and Chairwoman of the Board of Bertelsmann Verwaltungsgesellschaft GmbH (BVG) (j) Willi Pfannkuche, Member of the Bertelsmann Corporate Works Council (k) Erich Ruppik, Chairman of the Bertelsmann Corporate Works Council (l) Gilles Samyn, Managing Director and Vice-Chairman, Compagnie Nationale a Portefeuille S.A. (m) Richard Sarnoff, Chairman of the Bertelsmann AG Management Representative Committee, Executive Vice President Random House (n) Christian van Thillo, CEO De Persgroep NV (o) Reinhard Mohn continues to be Honorary Chairman of the Supervisory Board. ***** In June, Moody's said trading environment for Bertelsmann's key activities "remains tough" and its domestic market remains threatened by a further economic downturn. The gloomy outlook loomed even after the operating media and media services company successfully reduced debt burden incurred with the late-2002 acquisition of music company, Zomba, through the disposal of a scientific publishing unit. In November, Bertelsmann said special items, mainly due to the integration of the Zomba music company and restructuring measures at BMG, amounted to minus EUR76 million for the first nine months (previous year: -EUR32 million). DEUTSCHE TELEKOM: Raises EUR535 Mln from Asset-backed Securities ---------------------------------------------------------------- Deutsche Telekom AG was able to sell EUR535 million worth of asset-backed securities ahead of schedule. The company previously said such an issue with a volume of up to EUR600 million was planned in the fourth quarter. The sale of the securities, which were backed by receivables at Deutsche Telekom's T-Mobile International AG unit, were arranged mainly by Dresdner Kleinwort Wasserstein and Landesbank Hessen-Thuringia. A Deutsche Telekom spokesman said the company will use proceeds of the sale to reduce debt, according to AFX. The company, which has been selling assets and cutting costs to reduce debt, is aiming to reduce obligations to EUR30 billion by the end of 2006. SMS AG: MAN to Relinquish Shareholding to Business Partner ---------------------------------------------------------- MAN AG and the Weiss family have reached agreement that the joint shareholding in SMS AG and its affiliated companies, which dates from 1973, is to be transferred in two stages to the sole ownership of the Weiss family. SMS is to be changed from a public (Aktiengesellschaft) into a private limited company (GmbH). Immediately following this, MAN will transfer 50% of its equity interest to a holding company belonging to the Weiss family with economic effect as of October 1, 2003. A mutual call and put option has been granted for the second half of the equity interest (25.5%). It was agreed that no details of the purchase price would be disclosed. The transaction is subject to approval by MAN AG's Supervisory Board. The SMS Group will therefore be leaving the MAN Group with effect from October 1, 2003 and will in future be consolidated as a member of the Siemag Weiss Group only. The SMS Group, jointly owned by MAN and the Weiss family and headed by Executive Board Chairman Heinrich Weiss for three decades, has developed during this time to become global market leader in most of its areas of activity. In view of the fact that both shareholders held equal voting rights at the annual general meeting, it was however agreed some time ago that MAN would surrender its interest as soon as a suitable opportunity arose. This represents a significant step on the part of MAN in the direction of its stated policy of focusing the business portfolio on companies, which not only hold a leading position in terms of the technical and competitive aspects of systems contracting, but also offer a clear management structure. MAN Aktiengesellschaft The Executive Board ***** Demand for SMS machinery that produces metal pipes and shape plastic has fallen 20% over the past two years, analysts at Commerzbank said, according to the Financial Times. A cost-cutting program saw SMS generate a pre-tax profit of EUR6 million last year, but it lost EUR8 million in the third quarter. Its order book dropped 18% year-on-year. SMS has 9,400 staff and generated sales last year of EUR2.19 million, about 14% of total MAN group sales. WESTLB AG: To Cede Control of Brokerage Business to Lazard ---------------------------------------------------------- Panmure Gordon, the U.K. brokerage business of WestLB is to be taken over by Lazard, according to the Financial Times. For Panmure to leave the German bank, it will have to repay WestLB some GBP50 million of working capital, which the German bank lent in the form of a subordinated loan. The parties will also have to split shared assets, such as the back office, including systems and settlements. The principal finance unit is being wound down after a disastrous investment in television rental business BoxClever. In the future, Panmure will still have 1,230 employees in London to operate several divisions, including financial markets, which covers debt capital markets fixed-income sales and derivatives; equity markets and global specialized finance. WestLB, meanwhile, will focus on strengthening its U.K. equity markets division. =========== G R E E C E =========== ROYAL OLYMPIC: Two Ship Owning Subsidiaries File for Chapter 11 --------------------------------------------------------------- Royal Olympic Cruise Lines, Inc., (Nasdaq: ROCLF) announced Wednesday that two out of its eight ship owning companies, Olympic World Cruises, Inc., the owner of the vessel Olympia Voyager, and Royal World Cruises, Inc. the owner of the vessel Olympia Explorer, have filed for reorganization under Chapter 11 of the United States bankruptcy code. The company has been in discussion with the lenders to these subsidiaries regarding a potential restructuring of US$250.0 million in loans incurred to finance the acquisition of the two vessels. Discussions have not to date produced an agreement and the lenders have delivered a notice of acceleration of the loans. These loans are secured by mortgages on the two vessels and have been guaranteed by Royal Olympic Cruise Lines, the parent company. Neither Royal Olympic Cruise Lines, nor any other subsidiary has filed for Chapter 11 protection and are conducting business in the ordinary course. The company intends to continue discussions with the lenders. Commenting on the filing, CEO Yiannos Pantazis said: "Like others in the leisure and transportation industries, we have experienced very difficult operating conditions due to the effects on tourism of the September 11 events, the conflict in the Middle East, the SARs crisis, the Afghanistan and Iraq wars, the international economic situation and other events. We will continue discussions with our subsidiaries' lenders and remain committed to maintaining all operations and our standards during this period. Filing for reorganization under Chapter 11 may provide sufficient time for the discussions with the lenders to come to a positive conclusion, without disrupting the Company's operations, in a year when the Company's revenues are expected to be at increased levels due in part to the Olympic Games being held in Athens." CONTACT: ROYAL OLYMPIC CRUISE LINES INC. Yiannos Pantazis Phone: + 30 210 429 1000 ROYAL OLYMPIC CRUISE LINES INC. John Wickham Phone: + 44 7766 718109 MTI NETWORK (USA) Jim Lawrence Phone: + 1 203 406 0106 MTI Network (U.K.) Pat Adamson Phone: + 44 20 7823 9444 ========= I T A L Y ========= GIANNI VERSACE: CEO's Departure Could Trigger More Shakeup ---------------------------------------------------------- Gianni Versace Chief Executive Officer Fabio Massio Cacciatori resigned from the Italian fashion house on Wednesday to be replaced by chief financial officer Daniele Ballestrazzi. The management changes, which come less than four months after Mr. Cacciatori's appointment, follow reports of misunderstandings over corporate strategy with company owners Santo Versace and Donatella Versace, the Financial Times said. Versace is aiming to control high cost-base, boost revenue and restructure operations after reporting a net loss of US$6.8 million last year. It is expected to suffer a deficit this year due to the general downturn in the global luxury goods market and the effect on travel and spending from the Iraq war and the SARS epidemic. Mr. Cacciatori was then planning to close stores, lay off employees, and cut advertising budgets. There are also rumors about possible changes in the company's ownership, and management structure. Speculations swirl that Versace might be sold to, among others, Luxottica, the sunglasses manufacturer that owns the Versace sunglasses license, once its finances improved. It may also decide to form a joint venture with fashion and manufacturing group IT Holding. In the past two months, rumors also circulated that Tom Ford and Domenico de Sole from Gucci luxury goods might be brought in as senior managers. The two have denied the rumors, but analysts suggest that Mr. Ballestrazzi's appointment may give the stories renewed momentum, according to the report. RENO DE: Espais Promocions to Pay EUR80 Mln for Spanish Assets -------------------------------------------------------------- Reno de Medici Iberica (wholly owned by Reno de Medici S.p.A.) stipulated a final agreement to sell its Barcelona properties to Espais Promocions Immobiliares di Barcellona, represented by shareholder and Chairman Lluis Casamitjana, and accommodated by Banesto, which provided the necessary financial coverage. The agreement is valued at EUR80 million. EUR50 million will be paid in cash at the time the landed property is transferred. The remaining EUR30 million will be paid in property, to be delivered at the time of the expected urban development upgrade. The deferred payment is accommodated by a EUR45 million bank guarantee, in consideration of the delay and of the reasonably predictable increase in property value, which the Company will receive over a 5- to 7-year period (allowing the Company to benefit from any increased value deriving from such urban upgrade). It is expected that the transaction and its financial effects will be recorded in fiscal 2003. The Company believes that the transaction as a whole will not generate capital gains, considering the accessory expenses for industrial reorganization and re-conversion that must be sustained to re-launch operations in the area. This real estate transaction is part of Reno de Medici Group's broader restructuring of its operations on the Iberian Peninsula, with the following assumptions and effects on the Company's industrial and business plan: (a) Productive and commercial reorganization: operations will continue at the Prat plant for three years, paying an annual lease rental of EUR1.6 million for use of the complex being divested. Re-conversion will allow production to continue with positive operating margins of about between EUR1 million and EUR2 million (at present, they are negative for about EUR7 million per year). (b) It is expected that production activities will immediately be adjusted to the economically useful demand existing on the Iberian Peninsula. In this regard, production facilities (machinery and equipment) will remain fully available to Reno de Medici Iberica. The solution adopted permits the Company to: (a) retire EUR80 million in fixed assets; (b) continue to serve its Spanish customers at the same level of quality in a multi-year perspective; (c) maintain significant employment levels; (d) in a reasonable length of time, define an industrial and business strategy that will allow Reno de Medici Group to maintain and possibly increase its presence on the Spanish Peninsula. CONTACT: RENO DE MEDICI SPA Mario Del Cane Phone: 02/75288.1 E-mail: investor.relations@renodemedici.it Bonaparte 48 Alessandro Iozzia Phone: 02/8800971 Fax: 02/72010530 E-mail: Alessandro.iozzia@bonaparte48.com Filippo.turchetti@bonaparte48.com ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: Disco Sell-off Talks Break Down -------------------------------------------------- Chilean retailer Cencosud abandoned talks with Ahold regarding a buyout of the Dutch group's Disco supermarket company in Argentina, according to Reuters. The report cited a statement from Laurence Golborne, chief executive of Cencosud, saying: "...since we have not reached an agreement with the firm Ahold regarding the purchase of the Argentine company Disco, the period of exclusivity in the negotiations that was granted us has expired." Cencosud, which previously acquired Ahold's Santa Isabel supermarket chain in Chile for US$94.5 million, did not officially confirm reports from the Chilean press that it offered US$350 million for Disco. Meanwhile, Argentina's De Narvaez group and France's Casino are also reportedly interested in Disco. Local businessman Francisco de Narvaez is of the opinion Disco should remain in Argentine hands. KONINKLIJKE AHOLD: Former Chief Executive Questions Termination --------------------------------------------------------------- Ahold announced Wednesday that former CEO Cees van der Hoeven has initiated an arbitration proceeding relative to the termination of his employment. Ahold will not comment on or give information about this arbitration proceeding until the arbitration panel has rendered a final award. =========== P O L A N D =========== NETIA SA: Court Dismisses Anti-competitive Practice Lawsuit ----------------------------------------------------------- Netia S.A. (WSE:NET), Poland's largest alternative provider of fixed-line telecommunications services, announced Wednesday that on December 16, 2003, the Regional Court in Warsaw, XVI Commercial Department resolved the case instituted by a lawsuit filed by Millennium Communications S.A. against Netia, to ban Netia from unfair competition practices and for damages of PLN50,000,000. The Regional Court dismissed in full all demands included in Millennium's lawsuit and adjudicated that Netia be reimbursed for the costs of the proceeding of PLN18,000. In the oral justification of the award, the Court pointed out that Millennium failed to support its claims with any reliable evidence. Given the fact that Millennium's claim was completely groundless, the Regional Court imposed on Millennium the maximum costs of the proceedings permitted under the provisions of procedural law. This award, although not yet final, is yet another verdict issued to Millennium's disadvantage during a long-lasting dispute between the parties. In February 2003, the Regional Court in Warsaw adjudicated that Millennium must pay Netia PLN11,500,000 plus contractual interest as a repayment of a loan granted in 2000. In the same case in May 2003, the Court secured the enforcement of the above verdict by attaching all of the shares owned by Millennium in Genesis Sp. z o.o. Millennium is the minor shareholder which filed a claim to the Regional Court in Warsaw requesting the invalidation of a resolution on Netia's merger with certain of its wholly owned subsidiaries adopted by the Extraordinary General Meeting of Shareholders held on October 30, 2003 (see release of November 25, 2003). CONTACT: NETIA SA Anna Kuchnio, Investor Relations Phone: +48-22-330-2061 =========== S W E D E N =========== SAS GROUP: Signs New Revolving Credit Facility ---------------------------------------------- Scandinavian Airlines System successfully signed on Tuesday a EUR400 million 3-year syndicated loan facility that refinances an existing facility that is scheduled to mature in May 2004. The Facility, which is unsecured, was oversubscribed from an initial launch amount of EUR350 million, and was well supported by a number of SAS's long standing relationship banks. The Facility will be used as a core liquidity facility for SAS out to spring 2007. ===================== S W I T Z E R L A N D ===================== ERB GROUP: Japanese Financial Group Leads Bidders for Import Biz ---------------------------------------------------------------- Erb Group, which fell into creditor protection early this month, might receive an offer for its Swiss auto import business from a Japanese bank, Intesatrade reported citing HandelsZeitung. According to the report, Sumitomo Corporation might be interested in acquiring the unit in a transaction potentially worth CHF180 million excluding debt. Swiss car importer Emil Frey might also emerged as bidder, the weekly added. Erb Group filed for creditor protection for three of its four divisions, and has initiated bankruptcy procedures for one division. Its top executives are being investigated for evidences of criminal behavior by the Zurich district court. The group owes 82 banks, including Switzerland's UBS AG and Credit Suisse Group, CHF2 billion. Most of its troubles are the results of its writing down CHF2.5 billion in investments at its Uniinvest Holding, which ran real estate investments in Germany and abroad. =========================== U N I T E D K I N G D O M =========================== AMP LIMITED: CEO Notes Strong Demand in Institutional Bookbuild --------------------------------------------------------------- AMP Limited bared Wednesday the details of the institutional bookbuild held as part of its Rights Offer, with shares allocated to bookbuild participants at AU$4.30. The near-140,000 shareholders who participated in the Rights Offer will be allocated shares for their rights acceptances at AU$3.87, which represents a 10% discount to the institutional bookbuild price. AMP Chief Executive Officer Andrew Mohl said there had been extremely strong demand in the institutional bookbuild, with the book multiple times covered at this level. He said at AU$4.30, the majority of the shares had been allocated to existing shareholders, both domestic and international. Over 150 institutions participated in the book. "We are pleased that this capital raising has been completed, enabling AMP to redeem its Reset Preferred Securities as the final step in the demerger process," Mr. Mohl said. "We remain confident that the fundamental long-term value of both AMP and HHG will emerge over time as a result of the demerger." Approximately 306 million new AMP shares will be issued as part of the Rights Offer. These shares will be allotted on December 23, 2003. Trading of these shares will commence on the Australian Stock Exchange and the New Zealand Stock Exchange on December 23, 2003 on a normal settlement basis (T+3) under the same code as pre-existing AMP shares, with no deferred settlement trading. Shareholders wishing to trade before receipt of their Rights Offer holding statements should confirm their holding by calling 1300 654 442 (Australia) and 0800 448 062 (New Zealand) on or after December 23. Existing AMP shares returned to trading on the Australian Stock Exchange and the New Zealand Stock Exchange Thursday. It was the first time that AMP shares traded without an entitlement to HHG. The underwriters and joint lead managers for the Rights Offer are UBS Advisory and Capital Markets Australia Limited and Macquarie Equity Capital Markets Limited. Caliburn is the principal adviser to AMP on the Rights Offer. CONTACT: AMP LIMITED Investor inquiries Mark O'Brien Phone: +61 2 9257 7053 AUTOMOTIVE PRECISION: Grant Thornton Offers Business for Sale ------------------------------------------------------------- Automotive Precision Components Limited (in Administration) is a manufacturer of Precision Automotive Components based in Tonbridge, Kent. Key features include: business established for over 50 years; turnover of GBP19 million; Supplier of high volume, precision engineered, automotive components; "Blue Chip" customers in the USA, Europe and the U.K.; skilled workforce of 360 employees; 8 acres leasehold site in Tonbridge, Kent. Grant Thornton, the U.K. member of Grant Thornton International, is authorized and registered by the Financial Services Authority for investment business. CONTACT: GRANT THORNTON Joint Administrators Neil Tombs Andrew Menzies Enterprise House 115 Edmund Street Birmingham B3 2HJ Phone: 0121 212 4000 Fax: 0121 233 9857 E-mail: katheryn.thompson@gtuk.com Homepage: http://www.grant-thornton.co.uk AVENA CARPETS: Original Owners Save Firm from Collapse ------------------------------------------------------ The original owners of luxury carpet maker Avena Carpets, Nick Crossley and John Tighe, have bought the company out administration for an undisclosed amount, according to Yorkshire Today. The firm, whose clients include the White House and Buckingham Palace, fell into the hands of administrators in October after a property sale fell through. The company was then in need of cash to pay borrowings after a slump in orders following the end of the dotcom boom and the terrorist attacks of September 2001 left it short of funds. Administrator Peter Holder from the Leeds office of insolvency specialist Kroll was able to keep the company trading, but was forced to cut 15 of the firm's 49 staff. Avena's original owners described their offer as "the only serious bid," according to the report. They said they financed the deal themselves and did not involve an outside backer, according to the report. Mr. Tinghe said: "There's a level of work in the U.S. market which we can sustain without the debt burden. We can make a viable business of it." Some 75% of Avena's trade was in the U.S. to interior designers based in New York. BRITISH AIRWAYS: Loses Appeal in Virgin Atlantic Lawsuit -------------------------------------------------------- European Union judges upheld a EUR6.8 million fine against British Airways for offering unfair incentives to travel agents, according to Reuters. Archrival Virgin Atlantic filed the complaint years ago, attaining an initial victory in 1999 when the court decided to fine British Airways for unfair business practice. British Airways appealed the verdict, but the court maintained its decision on Wednesday. The Union's second highest court, the Court of First Instance, said: "The performance reward schemes used by British Airways to calculate travel agents' commissions constitute an abuse of the dominant position held by British Airways." British Airways pays travel agents more commission per ticket on sales past a certain target. It said the more lucrative commission discouraged agents from recommending flights that suited travelers best. BRITISH ENERGY: Reduces Annual Nuclear Output Forecast ------------------------------------------------------ A summary of net output from all of British Energy's power stations in November is given in the table together with comparative data for the previous financial year: To view table click http://bankrupt.com/misc/British_Energy_Output.htm Heysham 1 Up-date As announced on December 16, having now reviewed the results of the inspections of the seawater cooling pipework, British Energy has decided that is necessary to extend the current outage in order to replace further pipework. In light of this, the Company has revised its annual nuclear output forecast for the year ending March 31, 2004 downwards from 67 TWh to around 65.5 TWh on the assumption that Heysham 1 returns to service in the first half of February 2004. U.K. - Nuclear Planned Outages (a) A statutory outage was completed at Sizewell B. (b) A refuelling outage was started on one reactor each at Dungeness B and Hartlepool. (c) Low load refuelling was carried out on both reactors at Hinkley Point B and Heysham 2 and on one reactor at Hunterston B. AmerGen Planned Outage (a) A planned outage continued at Three-Mile Island Unit 1 throughout November. CONTACT: BRITISH ENERGY Andrew Dowler Phone: 0207 831 3113 (Media Enquiries) Paul Heward Phone: 01355 262 201 (Investor Relations) CANARY WHARF: Urges Shareholders to Support Property Sale --------------------------------------------------------- The Independent Committee of Canary Wharf Group plc notes the announcements made by Brascan Corporation and IPC Advisors Corporation. As stated in those announcements, there can be no certainty that an offer will be forthcoming from either Brascan or the Reichmann family interests. Accordingly, the Independent Committee recommends shareholders to vote in favor of the resolution at the Extraordinary General Meeting on December 22, 2003 to approve the disposal of 5 Canada Square and 25 Canada Square to The Royal Bank of Scotland plc. The Independent Committee regards the Disposals as being in the best interests of shareholders, whether or not Silvestor's offer proceeds. Silvestor's offer is conditional on completion of the Disposals. In view of the timing associated with any offer from Brascan or the Reichmann family interests, Canary Wharf now intends that any shareholder meetings to approve Silvestor's offer will be held after 13 February 2004. CONTACT: LAZARD Phone: 020 7187 2000 William Rucker CAZENOVE Phone: 020 7588 2828 Duncan Hunter Richard Cotton BRUNSWICK Phone: 020 7404 5959 James Bradley Fiona Laffan FILTRONIC PLC: To Sell Certain Assets in California ---------------------------------------------------- Filtronic plc, a leading designer and manufacturer of customized microwave electronic subsystems for the wireless telecommunications and defense industries, announces that it has entered into an agreement to sell certain assets of its Filtronic Solid State business, in Santa Clara, California, to Teledyne Wireless, Inc., a wholly owned subsidiary of Teledyne Technologies Incorporated for approximately US$12 million. The transaction is expected to close on or about December 31, 2003 and is subject to customary closing conditions. The proceeds of the disposal, which is of the electronic warfare part of Solid State's business, will be used by Filtronic to accelerate repayment of its senior notes, of which US$74 million is currently outstanding. Filtronic has now bought and cancelled a total of US$96 million of its 10% Senior Notes due December 1, 2005 since 4 February 2002. Profit before taxation attributable to the Solid State electronic warfare business for the year ended May 31 2003, was US$1.4 million on sales of $12.5 million. The value of the net assets to be disposed of is approximately US$3.0 million. Commenting, Professor J David Rhodes CBE FRS FREng, Executive Chairman of Filtronic plc, said: "We are pleased that the Solid State electronic warfare business will have such a strong new owner in Teledyne. The complementary skills and business opportunities arising through Teledyne should provide excellent growth for the Solid State business and employees. In the future, Filtronic looks forward to building upon the strong relationships formed with Teledyne through this transaction." Solid State designs and manufactures customized microwave subassemblies for electronic warfare, radar and other military applications. Following the acquisition by Teledyne Wireless, the business will be relocated from Santa Clara, California and consolidated with existing Teledyne operations in Mountain View, California. Following the transaction, Filtronic will retain its Solid State compound semiconductor business in California and employ 19 people there. Teledyne is a leading provider of sophisticated electronic components, instruments and communication products, systems engineering solutions, aerospace engines and components and on-site gas and power generation systems. It has operations in the United States, the United Kingdom and Mexico. Said Robert Mehrabian, Chairman, President and Chief Executive Officer of Teledyne Technologies: "Solid State is highly complementary to our Teledyne Wireless and Teledyne Microwave Electronic Component units. Solid State's precision YIG-based oscillators, filters and amplifiers serve the same customers as our traveling wave tubes, voltage controlled oscillators and other products, and are used on many of the same military programs." He added: "We expect to obtain significant synergies through the consolidation of Solid State with our current military microwave subassembly operations in Mountain View, California. Solid State's strong and experienced management team will assist us in our strategy to develop a broader line of specialized, high-performance microwave products for military radar, electronic warfare, missile and communication applications." ***** Standard & Poor's Ratings Services in August lowered its long-term corporate credit rating on U.K.-based telecommunications and electronic warfare equipment manufacturer Filtronic PLC to 'B-' from 'B' due to concerns about the company's medium-term liquidity. The outlook is negative. At the same time, Standard & Poor's lowered its senior unsecured debt rating on Filtronic, which is applicable to the company's US$94 million of outstanding notes, to 'CCC+' from 'B-'. "The rating action reflects Filtronic's weakened cash flow generation in fiscal 2003, which has put increased pressure on the company's future liquidity in the run up to the repayment of its US$94 million notes due December 2005," said Standard & Poor's credit analyst Michael O'Brien. CONTACT: FILTRONIC PLC Professor David Rhodes John Samuel Christopher Schofield Phone: 01274 221 000 BINNS & CO PR LTD. Peter Binns Paul McManus Phone: 020 7786 9600 INDEPENDENT NEWS: Undertakes EUR53.5 Million Restructuring ---------------------------------------------------------- The board of Independent News & Media PLC is issuing a trading update in respect of the financial year ending December 31, 2003 and announcing a EUR53.5 million worldwide restructuring plan. This statement is intended to update investors on the Group's significant operational and recapitalization achievements during 2003, and to detail the scope of the worldwide restructuring. This update is made in advance of the Company's preliminary full year results announcement planned for Wednesday March 24, 2004. Trading Overall, the Group continues to trade in line with market expectations, with strong performances from its Australasian and South African divisions, the anticipated seasonal improvement flowing through in the 4th Quarter in Ireland (North and South), and strong core circulation gains from the new dual format (broadsheet and compact) in the United Kingdom. (a) Advertising Revenues The Group's total advertising revenues from its globally diversified operating base continue to trade ahead of 2002; this follows a dedicated focus and progressive enhancement in yield. Collectively, the Group has recorded advances in market share, with growth in property, motors and retail more than off-setting a still sluggish recruitment/financial advertising sector. (b) Circulation Revenues Circulation revenues -- across our titles -- continue to show solid advances on 2002, reflecting the impact of both cover price increases and market share gains. The launch on September 30 of the compact 'Independent' in the United Kingdom has far exceeded our expectations and has already delivered a 20%+ sales increase on the core U.K. Newstrade sales at full retail price, even though the compact is only yet available in half the country, and this achievement has been duly recognized by the industry in awarding Simon Kelner 'Editor of the Year.' Due to its success, the compact rollout has been accelerated and will be available nationwide in the early part of 2004. Recapitalisation As announced last week, the sale of the Group's London regional newspaper division to Archant has been agreed, which completes the substantial restructuring and realignment of the Group's balance sheet and debt maturity profile, which commenced in July 2001, and included: (a) A share placement in September 2001 raising EUR102 million; (b) The reorganization of the Group's Australasian interests, incorporating the sale of Wilson & Horton to APN News & Media, in December 2001 realizing EUR214 million; (c) The EUR315 million recapitalization program (announced on March 26, 2003) which has actually raised a total of EUR365 million via a Rights issue, the aforementioned London regional sale and other non-core asset disposals; (d) The formation, in June 2003, of a new 5-year 'Club' bank facility (currently standing at EUR330 million), replacing the previous EUR1 billion facility; (e) The oversubscribed issue, in June 2003, of a new NZ$225 million NZ CEPS (maturing in November 2007) to replace the NZ$181.8 million NZ CEPS which matured end-November 2003; and (f) The oversubscribed issue, in December 2003, of a EUR125 million guaranteed subordinated bond (maturing in December 2008) to replace the EUR108 million Redeemable Preference Share (which matured on June 26th 2003). The overall effect of these measures and internal cash flow generation has been to reduce the Group net debt which has recourse to Independent (i.e. excluding APN News & Media Limited) by more than EUR680 million since September 2001, to an expected year-end 2003 net 'recourse' debt figure of approximately EUR650 million. Restructuring Plan The restructuring is designed to sustainably enhance the core profitability of the Group by taking advantage of Independent's unique common language and global business reach. It will leverage the scale of the Group's cross operations in clerical and back-office activities, while extending the application of new information and production technologies in all functional areas. Following an extensive intra-group exercise -- which identified significant opportunities for further cost efficiencies and savings -- a detailed worldwide plan has been developed by management in conjunction with the international consulting firm, Booz Allen Hamilton. It is expected that the restructuring will yield a 5% reduction in worldwide staffing numbers on completion, and will generate incremental annualized cost savings and profit improvements building up to EUR18.4 million by the end of 2005. This restructuring plan will result in an exceptional restructuring charge of EUR53.5 million, which is more than offset by the substantial capital gains made on disposals during the year, and will be financed on a phased basis from internal resources. Outline details of the restructuring plan will be posted on the Group's website, http://www.independentnewsmedia.com. Outlook Based on Quarter 4 trading, advertising levels continue to improve as anticipated and circulation revenues remain firm going into 2004. The Group continues its strong focus on cost efficiencies, cost control and cash generation within each of its operating units. The Group's substantially lower debt levels and strong working capital management will deliver a reduced interest charge and enhanced cash generation going forward. Commenting on the announcement, executive chairman, Sir Anthony O'Reilly said: "Following an extended period of acquisitions and development of your Group, and in the context of an improving -- yet still volatile -- advertising climate, we believe this to be the appropriate time to take this important and far-reaching restructuring opportunity enabling us to be the low-cost operator in all of our markets. It will allow us to further exploit our global footprint in a truly location-indifferent way, meaningfully reducing costs, while improving our product and distribution capabilities. "The Group has a uniquely diverse geographic base and leading market positions, supported by a greatly fortified balance sheet. As global markets recover, these strengths will allow Independent to deliver not only an improvement in earnings for 2003 -- in line with market consensus forecast -- but an enhancement in the value of the Company for employees and shareholders alike." CONTACT: INDEPENDENT NEWS Gavin O'Reilly, Chief Operating Officer Phone: +353.1.466.3200 Donal Buggy, Chief Financial Officer Phone: +353.1.466.3200 MURRAY CONSULTANTS Pat Walsh Phone: +353.1.498.0300 BUCHANAN Richard Oldworth/Mark Edwards Phone: +44.20.7466.5000 LEEDS UNITED: Attracts Interest from Chinese Investors ------------------------------------------------------ A consortium of Chinese businessmen is understood to be in early talks with Leeds United Chairman John McKenzie regarding a possible rescue of the football club, according to the Financial Times. Concurrently, Professor McKenzie, who is known to have strong business ties in Southeast Asia, has decided to resign to avoid conflict of interest if he were to engage in talks on behalf of "potential new investors," in the future. Chinese firms are attracted to U.K. Premier League companies because of the league's popularity among Asian viewers. Mr. McKenzie said there had been no "substantive discussions," but he was quitting to concentrate on getting "the best possible levels of funding and the most appropriate form of ownership" for the football club. Leeds United previously received an approach from Sheikh Abdulrahman al-Khalifa, a member of the Bahrain royal family. A bid from Allan Leighton, chairman of Royal Mail, is also on the table. Bondholders have given Leeds United until January 19 to attract a buyer or an investor to save it from administration. MIDLANDS ELECTRICITY: E.U. Commission OKs Proposed Sale to E.ON --------------------------------------------------------------- The European Commission has authorized the acquisition of the U.K. undertaking Midlands Electricity plc by E.ON's subsidiary Powergen U.K. plc. The operation does not give rise to any significant competition concerns. E.ON AG is a German company whose main area of activity consists of the generation, transmission, distribution and supply of electricity and the transportation, distribution and supply of gas. E.ON also has interests in water, chemicals, the provision of telecommunications services and real estate management. Its main activities in the U.K. are the generation, distribution and supply of electricity through Powergen U.K. plc and the supply of gas through Powergen Gas Ltd. Midlands Electricity is ultimately owned by Aquila Inc. and First Energy Corp. It operates an electricity distribution network in the West Midlands U.K. region. It also has some small gas supply and shipping activities. With respect to electricity, the main impact of the operation will be in relation to electricity distribution. After the operation, E.ON will control two regional distribution networks in the U.K. since it already owns East Midlands. But these networks are natural monopolies and are regulated by the Office of Gas and Electricity Markets, the U.K. regulator. Regarding the supply of gas, the transaction will result in a negligible increase in E.ON's current market position, which together with the presence of a number of strong competitors, has led the Commission to conclude that the operation does not give rise to competition concerns. MISYS PLC: Divestments Hit First-half Revenues ---------------------------------------------- The statement that follows is in line with our policy of issuing regular updates on trading, for the previous six months, shortly after the end of the first half and the full year. The figures in this statement are unaudited. As usual, the Group will comment on the trading outlook when the half-year results are announced on January 22, 2004. Within this statement all comments relating to operating profit are pre goodwill amortization. The current year and comparative results reflect the restatements described in the 2003 Report and Accounts and during the 2003 analyst presentations (copies of which are available on our web site) in respect of the reallocation of certain Group expenses to the divisions, the implementation of FRS 17 'Retirement Benefits' and the change in presentation of the IFA network provisions. Overview As expected, overall Group revenues in the first half of this year were below those of the previous half-year. Weak market conditions in both the Banking and Securities Division and the Financial Services Division resulted in reduced revenues in both those divisions. In addition they were further reduced by the disposal of two non-core Banking and Securities businesses. In contrast, Misys Healthcare Systems reported increased revenues despite further adverse movements in exchange rates. Overall Group revenues are expected to be 10% below last year and operating margins are expected to be below those in the same period last year, mainly because of the lower revenues. Although trading conditions since the AGM have been more demanding than we anticipated, we have nevertheless been encouraged by evidence of our customers' future investment plans, particularly in the Banking and Securities Division. The effect of the disposal of two non-core Banking and Securities businesses and charging the Patient1 integration costs as operating expenses as incurred will reduce this year's adjusted earnings per share, compared with last year, by around 2 pence per share. Banking and Securities Division Total divisional revenues are expected to be down in the first half by 13% on the equivalent period last year reflecting the continued weakness in market conditions and the effect of declining professional services revenues as previously highlighted. Whilst we see evidence that bank IT budgets are starting to grow again after a period of contraction, banks remain cautious in initiating larger IT projects. Disposals: Towards the end of the first half we announced the sale of the U.K. back office products business from within Misys Asset Management Systems and certain equities trading products from within Misys Securities Trading Systems, with the remaining elements of Misys Securities Trading Systems sold in early December 2003. From June 1, 2003 up to the date of their respective disposals (or November 30, 2003), these businesses recorded revenue of GBP13 million (six months to November 30, 2002: GBP21 million) and operated at break even (2002: operating profit GBP2 million). At the end of this trading update we have included more details on the results for the last 18 months of the businesses disposed from this division. Acquisitions: In April 2003 we acquired Crossmar� Matching Service (CMS) which during the first half recorded revenues of GBP4 million (all of which are transaction services revenues) and operating margins broadly in line with the rest of the division. Information on expected revenues and order intake for the first six months of the financial year are: % Change from last half year As reported On comparable basis* Total divisional revenues -13% -14% Initial license fees -20% -16% (ILF) Professional services -39% -38% Maintenance +1% +1% Six months ended November 30 % Change from last half year GBPm As reported On comparable basis* ILF order intake 29 -10% -9% Closing ILF order book 23 -7% -5% * At constant exchange rates and excluding the acquisition and the disposals from both years These comments on revenue and order book are in respect of the results on a comparable basis: Initial License Fee (ILF) order intake was 9% lower than last year. The closing ILF order book at GBP23 million was GBP1 million lower than at the end of November 2002 and GBP2 million lower than at the end of May 2003. ILF taken to revenue was, however, lower by 16% because last year we started with a larger opening order book. The lower level of ILF revenues over the last twelve months has continued to hold back the growth in maintenance revenues. More significantly, the level of professional services has been disproportionately affected by cutbacks in banks' IT budgets as we highlighted both in July and in the AGM statement. The sequential decline (six months to November 2003 vs. six months to May 2003) of 15% in professional services is significantly better than the 27% decline experienced last year (six months to May 2003 vs. six months to November 2002). This is consistent with our comments in July that we expected to see a sequential increase in professional services revenues in the second half of the current financial year and provides further confidence that the level of professional services activity should now be at or close to the bottom. Operating margins, excluding the effect of the acquisition and disposals from both years, are expected to be below those achieved last year principally as a result of the reduced revenues. Misys Healthcare Systems Total divisional revenues are expected to be 4% above the equivalent period last year. The reported results have again been adversely affected by the strengthening of sterling against the U.S. dollar; excluding both this effect and the benefit of the Patient1 acquisition in the period, revenues are expected to be 6% ahead of last year. Acquisition: We have benefited from a strong start from the Patient1 product, which we acquired in July. We have signed a number of large orders including our first combined Misys Laboratory / Patient1 sale. During the first half this product recorded revenues of GBP6 million and, as expected, operated at break even before integration costs. In the first half these one-off integration costs were less than GBP1 million and will be charged to operating profit. The total integration costs are expected to amount to well under GBP10 million and will mostly be incurred over the next 18 months. These costs will not be treated as exceptional costs and will be charged to operating profit. Information on expected revenues and order intake for the first six months of the financial year are as follows. % Change from last half year As reported On comparable basis* Total revenues +4% +6% ILF +10% +14% Maintenance +6% +9% Transaction Services -4% +2% Six months ended 30 November % Change from last half year GBPm As reported On comparable basis* ILF order intake 24 -8% -8% Closing ILF order book 26 -19% -16% * At constant exchange rates and excluding the benefit of the acquisition of Patient1 These comments on revenue and order book are in respect of the results on a comparable basis. Overall, the division reported good growth in revenues with ILF revenue up by 14% and maintenance revenue achieving a 9% growth. The slower growth in Transaction Services revenues continued the trend that was evident in the second half of last year and is in line with other suppliers in the market. Total ILF order intake decreased by 8%, mainly reflecting a reduction in Hospital Systems, compared with a particularly strong performance in the prior year. The closing ILF order book on a comparable basis, at GBP24 million, is below both November 2002 and May 2003; this principally reflects the fact that Hospital Systems have made good progress completing the final phases of a number of older orders, enabling us to recognize the related revenue. Operating margins in Healthcare are expected to be slightly below last year principally due to the impact of the integration costs in respect of Patient1 which, as already noted, will be charged to operating profit. Financial Services Division Revenues in the Financial Services Division are expected to be 16% below last year due to the continued weakness in the IFA network business. As anticipated in July, we have continued to see a reduction in the overall number of RIs, as set out. Average number of RIs for six Closing number of RIs months ended November 30 2002 2003 May 31, 2003 November 30, 2003 Network Ris 6,800 5,250 5,600 4,800 MRS RIs 650 1,150 1,000 1,250 Total 7,450 6,400 6,600 6,050 Operating margins in the Financial Services Division are expected to be significantly below those of last year. This reduction is partly due to the reduced number of RIs in the network, and partly due to the increasing cost of compliance. The General Insurance business has delivered another good performance. Interest and taxation Interest charged during the six months will be below the equivalent figure for last year reflecting the lower level of average borrowings during the respective periods. During the last few months the Group has reached agreements with various revenue authorities, particularly in the U.S., covering a number of prior years. The provisions at May 31, 2003 relating to these outstanding periods exceeded the additional cash payments arising from the agreements and as a result there will be a prior year tax credit to the profit and loss account of approximately GBP15 million (which will be booked in full in the first half). Given the size of this prior year item we propose to exclude it from our adjusted EPS figures. The underlying tax rate, before the prior year credits, for the first half is expected to be an effective rate on profit before taxation and goodwill amortization of no more than 15%. CONTACT: MISYS PLC Andrew Farmer Head of Investor Relations Phone: +44 (0)20 7368 2307 Mobile: +44 (0) 7909 895094 NETWORK RAIL: Demonstrates Improvement in Autumn Performance ------------------------------------------------------------ Network Rail revealed that delays down to autumnal weather had been reduced 27% by the industry this year. Network Rail, in close coordination with the train operators, undertook unprecedented preparations this year in its annual battle against the elements. The biggest fleet of 'leaf busting' trains, some 62 in all, have been in action over the autumn period tackling the railways equivalent of black ice on the roads. Hundreds of employees have also been out before dawn each day tackling and treating known problems areas using the latest, best technology to mitigate Mother Nature's effects. The train operators have also played their part with specialist driver training and on train sanders helping trains to keep a grip. Iain Coucher, Deputy Chief Executive said, "Network Rail, and the industry as a whole, has had a good autumn. Attention to detail, thorough planning and close co-operation with the train operators has paid dividends with the best autumnal performance for many years. My thanks go to all the people who worked so hard to make such a difference." In 2000 autumnal weather (leaf-fall and other related weather delays) caused 1,374,586 minutes of delay. In 2001 the delays had fallen to 913,855. Last year, 2002, saw a jump to 1,177,375. This autumn has seen a 27% reduction on last year to 855,390. NETWORK RAIL: Reiterates Goal to Improve Operations --------------------------------------------------- In response to the publications of the Strategic Rail Authority's National Rail Trends report, Iain Coucher, Deputy Chief Executive said: "[The] results reflect a difficult summer period that saw exceptional temperatures and one off events (London power black-out) hitting performance particularly on long distance services and the southern commuter networks. Performance would have seen improvement were it not for these events. "Since then improvements have been made with the autumn period seeing delays fall by some 27%. Getting to grips with the detail of the causes of delay is where our energies are focused and the success of the autumn period shows that significant improvement is possible. "Driving up performance is our goal. We are far from complacent and are determined to work with the industry to deliver improvements for the benefit of all rail users." ***** (a) The exceptional hot weather over the summer and the August London power blackout alone caused almost 6,000 hrs. of delay (b) Year to date (periods 1-8 (roughly April to October)) shows Network Rail's delay minutes at 8.5 million down from 8.7 million for the same period in 2002. (c) Of around 1.7 million delay minutes that are attributed each period around 790,000 minutes are attributable to infrastructure, 710,000 to TOCS and 200,000 to external events. (d) Since 1999 the number of asset failure incidents on the rail network has remained largely static. The real story on punctuality is the significant increase in delays per incident. The causes of this increase are shared between Network Rail (35%), the TOCs (35%) and consequential or reactionary delays (30%). To view graph: http://bankrupt.com/misc/Network_Rail_Graph.pdf ROYAL MAIL: Agrees to Open Delivery Network to U.K. Mail -------------------------------------------------------- In the first agreement of its kind, Royal Mail has signed an outline deal to deliver letters collected by U.K. Mail. The landmark deal marks a milestone in the development of competition in the U.K. letter market. It is expected to be followed by a formal contract, which may then be followed by other agreements with other companies seeking similar access to Royal Mail's delivery network. Heads of Terms have been signed by Royal Mail's Chief Executive, Adam Crozier, and Paul Carvell, Chief Executive of Business Post Group plc, the parent company of U.K. Mail. Mr. Crozier said: "Royal Mail is very pleased at this agreement. Access arrangements are new territory for Royal Mail. But I am confident we have the basis to proceed to an agreement that will work for Royal Mail and our postmen and women, as well as for U.K. Mail and business customers who will benefit from enhanced choice." Royal Mail and U.K. Mail will now work together to make access a reality. The terms of the agreement are commercially confidential and are not being disclosed by either party. TELEWEST COMMUNICATIONS: Asks Creditors to Identify Claims ---------------------------------------------------------- Telewest Communications plc is in the last stages of the planned financial restructuring of its balance sheet to be effected through the issuance of common stock in a new Delaware holding company, Telewest Global, Inc. in exchange for cancellation of all of the notes issued by Telewest and its wholly-owned subsidiary, Telewest Finance (Jersey) Limited and certain other connected claims. It is anticipated that the financial restructuring will be implemented by (among other things) schemes of arrangement to be promoted by both companies. The liabilities compromised by the schemes of arrangement will include claims arising out of or in connection with the Notes, a guarantee given by Telewest of the Telewest Jersey Notes and an inter-company loan from Telewest Jersey to Telewest by which the proceeds of the Telewest Jersey Notes were loaned to Telewest. It is anticipated that the schemes of arrangement will each include a "bar date," which will be a date announced in due course. Only Scheme Claims that are notified to Telewest and Telewest Jersey before the bar date or of which Telewest or Telewest Jersey are already aware will be capable of being admitted in the schemes of arrangement. Telewest and Telewest Jersey are already aware of the Scheme Claims as to principal and interest of the existing holders of the Notes, the Guarantee and the Intercompany Loan. Other Scheme Claims that are not notified to Telewest or Telewest Jersey (as appropriate) on or before the bar date will be cancelled on the schemes of arrangement becoming effective for no consideration. Creditors with claims other than those described above should notify Telewest or Telewest Jersey of the existence of such claims before the bar date. Notifications of claims should be accompanied with a description of the nature of the claim and the maximum amount of the claim and should be sent to Clive Burns (the Company Secretary) by fax on 020 7299 5650 or registered post to 160 Great Portland Street, London W1W 5QA. Once the bar date has been determined, it will be advertised and included on Telewest's website at http://www.telewest.co.uk. Further details of the proposed financial restructuring are available in the Registration Statement on Form S-4 filed by Telewest Global, Inc. with the Securities and Exchange Commission on November 26, 2003 and can be accessed on the SEC website at http://www.sec.gov. ********* 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., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. 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 * * *