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European Business News (EBN), 97-09-29

European Business News (EBN) Directory - Previous Article - Next Article

From: The European Business News Server at <http://www.ebn.co.uk/>

Page last updated Mon, September 29 6:46 PM CET


CONTENTS

  • [01] Lufthansa aims for 50 marks a share as listing process begins
  • [02] French government backs Total over Iran deal
  • [03] Strong UK August borrowing suggests rate rise soon
  • [04] Brown pledges not to take risks with inflation
  • [05] Northwest Airlines, KLM Royal Dutch Airlines agree 10-year global joint venture
  • [06] Airbus will not extend September 30 deadline for US Airways order
  • [07] Pensions watchdog fines HSBC's Midland Bank $240,000
  • [08] French stock market approves new Rallye, Promodes bids for Casino
  • [09] Asda and Safeway merger talks spark bid speculation in UK stocks
  • [10] Australia set to raise $10 billion from Telstra
  • [11] US consumer spending increases 0.3% in August, personal income rises 0.6%
  • [12] Borders to buy UK's Books Etc
  • [13] Analysts give Incentive the nod for U.S. listing
  • [14] Corporate and Economic Briefs

  • [01] Lufthansa aims for 50 marks a share as listing process begins

    Lufthansa chief Juergen Weber said 50 marks per share would be a 'good' issue price, and SBC Warburg, joint-lead manager for the issue said the Lufthansa share price is currently 40% undervalued.

    The comments were made at the start of the so-called bookbuilding process to establish the issue price for the new tranche of shares. The flotation price will be announced Oct. 12, and the shares will begin trading on German stock exchanges Oct. 13

    Weber echoed comments made earlier by Lufthansa Chief Financial Office Klaus Schlede that 1997 is likely to be a record pretax profit year for the airline.

    Weber, however, contradicted his CFO, saying that 1997 net profit is likely to be 'significantly higher' than the 558 million marks reported in 1996. Schlede had warned the net profit result wouldn't keep pace with the pretax rise.

    Weber, meanwhile, declined to comment on what effect the new tranche of shares will have on the Lufthansa share price or on what dividend the airline expects to pay out this year.

    'The dividend will be adjusted based on the company's results,' Weber said. In 1996, Lufthansa paid a dividend of 0.50 marks per 5.00 marks nominal share.

    The new Lufthansa shares will carry the full dividend entitlement for 1997. In an effort to make the shares appealing to private investors, Lufthansa said it would offer them a 1.00 marks discount off the issue price for institutional investors, which will be announced on Sunday, Oct. 12.

    Private investors who apply for shares by Oct. 2 will also receive priority allocation, the consortium said.

    In addition, 1% of the new tranche will be offered to Lufthansa employees. The consortium members noted 'considerable demand' for the new Lufthansa shares ahead of the bookbuilding process.

    [02] French government backs Total over Iran deal

    The French government issued a veiled threat of trade-sparring if Washington imposes sanctions on the French oil company Total for signing a major contract with Iran.

    Paris was concerned the so-called d'Amato law against companies doing business with Iran would be applied against Total, taking part in a $2 billion oilfield expansion project.

    Washington has Iran on a list of states it says backs terrorist activity and has threatened to wield the d'Amato law if Total signed such a contract.

    'France hopes that the US administration will weigh closely the consequences of putting into effect this law,' Jacques Rummelhardt, spokesman for Foreign Ministry, said in answering a question at a daily briefing.

    'France hopes that the US administration will use the manoeuvring room that the text allows. The application of this law would have serious consequences on international trade,' he said.

    The European Union has prepared retaliatory measures to react to such sanctions.

    The d'Amato law enables President Bill Clinton to impose sanctions on foreign companies investing more than $40 million a year in either Libya or Iran.

    Total will invest far more than that as it joins with Russian and Malaysian companies as well as the National Iranian Oil Company in the project at the huge South Pars Field in the Persian Gulf.

    Total's president, Thierry Desmarest, said he got the green light for the project from the French government. 'We had very clear responses from all levels recognising it was perfectly within our right,' he said in the newspaper Le Monde.

    The gas field is expected to produce 20 billion cubic meters of gas a year, about half of France's consumption

    [03] Strong UK August borrowing suggests rate rise soon

    British consumer borrowing rose by a net £1 billion ($1.6 billion) in August, the Bank of England, double July's increase.

    Modest credit growth of £501 million in July had fostered hopes that the sizzling pace of consumer spending had slowed, but Monday's figures poured cold water on that theory.

    Money supply data, released at the same time, showed M0 -- which measures notes and coins in circulation and banks' deposits with the Bank of England -- rose 6.1% in the year to September.

    And the broad money measure, M4, leapt 11.6% year-on-year in August, well above the government's 3-to-9% monitoring range, suggesting borrowing by individuals continues unabated.

    'This suggests that the dip in credit in July was just temporary and that the underlying trend remains very robust,' said Jeremy Hawkins, senior economic adviser at BankAmerica.

    He said the growth in M0 was also well above expectations. An annual rise of 5.6% had been expected, while consumer credit had been forecast up about £800 million.

    The figures will certainly give the Bank of England's Monetary Policy Committee food for thought, even though it declared in August -- after raising base rates for the fourth time in as many months -- that it was calling a hiatus to take stock of the economy.

    Philip Uglow, economist at Sakura Finance, said the consumer credit figures have been erratic in recent months. 'But M4 growth continues to exceed expectations and it is more important in terms of monetary policy. It will put further pressure on the Monetary Policy Committee to raise rates, maybe in November.'

    A key factor behind the leap in borrowing in August may have been the record car sales over the month. As new registration plates were released, sales hit an all-time high, according to the Society of Motor Manufacturers and Traders.

    'If this is the source of the extra momentum, it will disappear in September,' said John O'Sullivan, economist at NatWest Markets.

    But with the pound sliding after a newspaper report on Friday, later hotly denied by Chancellor of the Exchequer Gordon Brown, said Britain was preparing to sign up for a single European currency soon after 1999, the one major obstacle to raising rates is diminishing.

    Sterling, at 2.84 marks, is now 25 pfennigs below its late-July high.

    Also today, the Nationwide Building Society said British house prices rose a hefty 12.9% in the year to September.

    There appears to be no sign of the mini-housing boom drying up, although the building society said price rises were as much to do with a lack of properties on the market as skyhigh demand.

    'The apparent strength of house prices -- up by at least one percent every month since May -- is largely a reflection of continuing lack of supply in a thin market and could give a misleading impression of underlying conditions if taken in isolation,' said Paul Sanderson, Nationwide's head of research.

    He said prices would ease, as more houses eventually came onto the market.

    Whatever the truth about Britain's attitude to European Economic and Monetary Union, Hawkins said Monday's figures showed the dangers of going in too early with a strong economy, way out of synch with the rest of Europe, where unemployment is stubbornly high and growth remains elusive.

    'The UK money and credit data are strong and should be seen as further reason for supposing no early move by the UK government on EMU,' he said.

    [04] Brown pledges not to take risks with inflation

    British Chancellor of the Exchequer Gordon Brown pledged that his government won't taken any risks with inflation nor will it seek short-term dashes for growth.

    Speaking to the Labour Party's annual conference in Brighton, the chancellor said he is more optimistic the UK economy will be back on track next year.

    Brown, who was making the first major speech of the conference, also said the government will be examining a new tax credit for the low paid.

    As expected, the chancellor was quick to blame the recent rises in interest rates, which have been raised four times since Labour's election in May, on the government's Conservative predecessors.

    He said the country couldn't afford to increase its debt.

    'That is why, with our deficit reduction plan for public borrowing, with our tough reforms at the Bank of England, with the interest rates made necessary by Conservative mistakes, Britain has begun to break from Tory short-termism - and I am now more optimistic that the economy can be back on track next year,' he said.

    And, he continued, 'in place of irresponsible Tory short-termism there will be no risks with inflation, no irresponsible fine tuning, no massaging of the figures, no short-term dashes for growth but a long-term strategy for our public finance, the encouragement of investment for the future and, in pace of boom and bust, stability

    [05] Northwest Airlines, KLM Royal Dutch Airlines agree 10-year global joint venture

    Northwest Airlines and KLM Royal Dutch Airlines set a 10-year global joint venture agreement under which Northwest will buy back the 19% stake KLM holds in it by the year 2000.

    Northwest said the agreement also calls for the companies to expand their code-sharing agreement on trans-Atlantic routes and between Amsterdam and India to include services between Europe, Canada and Mexico.

    Northwest's buyback will cut KLM's voting stake to 17% at the end of this year from 19% now, then to 13% in 1998, 10% in 1999 and zero in 2000. Northwest will buy back 6.8 million common shares for $324 million this year; 4.9 million shares for $210 million in 1998; 3.2 million shares for $147 million in 1999, and 10 million shares for $491 million in 2000.

    Northwest will buy back its common and preferred shares held by KLM at an initial price of $40.125 a common share, which will increase at about 7% annually.

    [06] Airbus will not extend September 30 deadline for US Airways order

    European aircraft consortium Airbus said it would not extend a September 30 deadline to give US Airways more time to conclude a labour agreement needed to confirm a $5 billion order for Airbus jets.

    US Airways signed a memorandum of understanding with Airbus last November to buy 120 Airbus narrow-body jets and take options for a further 280.

    The deal, worth $5 billion based on list prices, was conditional on the U.S. company reaching a cost-cutting agreement with its pilots.

    'There is no chance of extending the MOU,' an Airbus spokesman said. A European industry source said Airbus would have to keep delivery positions open for US Airways if it extended its MOU, but that posed problems in view of firm orders from other airlines.

    Airbus did not want to turn away other orders just to maintain those delivery commitments and it was unclear how long any extension should be, the source said. There was no guarantee there would be a labour agreement at the end of a longer negotiation period.

    'It looks like the negotiations will go right down to the wire,' the source said. US Airways and its pilots' union continued negotiations throughout the weekend, but no agreement had been reached as of Sunday, a spokesman for the union said.

    US Airways declined to comment. 'Negotiations over the last couple of days have shown progress on some key issues. Important job security issues are currently under discussion,' the pilots union told members in a recorded message.

    Progress continues to be made, but the 'goal continues to be the total package', the Air Line Pilots Association said on Sunday. Airbus and its U.S. rival Boeing Co are racing to keep up with large aircraft orders as world-wide demand for new planes is strong.

    The US Airways requirement is for 120 Airbus aircraft of the A319, A320 and A321 type. It has said it is also looking to buy wide-body aircraft such as Boeing's 777 twin-jet or the Airbus A330.

    Airbus is a consortium made up of state-owned Aerospatiale of France, British Aerospace, German's Daimler-Benz Aerospace and Construcciones Aeronauticas of Spain.

    [07] Pensions watchdog fines HSBC's Midland Bank $240,000

    British financial watchdog the Investment Management Regulatory Organisation on Monday fined HSBC Holdings ' UK banking unit Midland Bank £150,000 ($240,000) over its conduct of pensions transfer business.

    The fine related to business conducted between May 1990 and September 1992 and was the sixth time IMRO has taken disciplinary action. The regulator said that this would be the last fine after its investigation of 23 firms.

    The largest fine, £325,000, was handed out earlier this year to Lloyds TSB. Midland, which will also pay over £70,000 in costs, apologised to its customers 'unreservedly' over advice given to customers which wrongly led them to leave final salary pension schemes. It said it has set up a system of continuous quality checks on current business in the area.

    The bank said it had approached IMRO and umbrella regulator, the Securities and Investments Board in 1992 to express its concerns over pensions transfers.

    Midland said it has already completed over three quarters of its review of pension transfers, offering compensation to 865 of its 1,130 priority cases.

    IMRO said it regulated 47 of the firms which conducted pensions transfer business between 1988 and 1993. Of these, 23 were investigated and six have been publicly fined, 11 have received a warning and six had no action taken against them.

    [08] French stock market approves new Rallye, Promodes bids for Casino

    The French stock market regulatory agency, the Conseil des Marches Financiers, approved the new rival bids submitted last week by Rallye and Promodes for distribution group Casino.

    On Friday, Rallye filed a second offer to the CMF for Casino after the watchdog turned down its first offer. Rallye's new offer to Casino shareholders was a mix of cash, and bonds convertible into both shares and cash.

    Rallye's second offer dovetailed with a second bid for Casino by rival distribution group Promodes, which saw its first offer turned down by Casino shareholders.

    Last Thursday, Promodes raised its offer to 375 French francs ($63.5) per ordinary Casino share from a previous offer of 340 francs a share.

    [09] Asda and Safeway merger talks spark bid speculation in UK stocks

    Bid speculation is stirring British supermarket stocks today after Safeway and ASDA said they had discussed a possible merger -- although talks have now been dropped.

    The two companies issued a joint statement saying that 'very exploratory discussions had taken place in recent months about a possible merger,' adding that 'these discussions have been discontinued.'

    At 0839 GMT, shares in ASDA were down 2.5 pence at 161 pence a share as analysts said they feared the group might overpay to realize its growth ambitions. In contrast, shares in Safeway are up 12 pence, or 3.0%, at 408 pence a share.

    Elsewhere in the sector, shares in Morrison (William) Supermarkets are up 10.5 pence to 208.5 pence a share as rumors circulate it could be a potential ASDA target.

    However, some sources are already discounting the idea, given that Chairman Ken Morrison and his family hold around 40% of the company and appear unlikely to surrender that stake.

    The statement came in response to a report in the Sunday Telegraph newspaper that the two were planning to merge in a £9 billion ($14.66 billion) move that would have created Britain's biggest supermarket group.

    Industry specialists said that such a move made commercial sense but that it might have concerned U.K. competition authorities. Neither ASDA nor Safeway gave any details of the reasons for the end of the talks.

    Safeway and ASDA currently each hold just under 8% of the food retail market in Britain, behind market leader Tesco, which has around 15%, and J Sainsbury. In northeastern England and Scotland, however, a merged group would have around 25%-30% of the food retail market, according to industry figures.

    But even though this merger seems to be off the agenda, shares in the food retail sector are likely to react positively today as the market looks to other avenues for consolidation in the sector sources said.

    ASDA eased half a penny on Friday to 164 pence, but Safeway gained 7.5 pence to 395 pence. Tesco added 10.5 pence to 489 pence, and Sainsbury rose 3.5 pence to 467.5 pence.

    [10] Australia set to raise $10 billion from Telstra

    The Australian government launched one of the world's biggest privatisations this year, offering one-third of telecoms carrier Telstra for up to A$14.2 billion ($10.2 billion) or more.

    The government set a rough price guide of A$12 billion to A$14.2 billion, or A$2.80 to A$3.30 per share, for prospective investors in the former monopoly and said it aimed to list Telstra on the Australian Stock Exchange on November 17.

    The price range, meant to guide institutional investors bidding for shares, put Telstra's total value at between A$36 billion and A$42.6 billion, making it Australia's biggest firm.

    Such a windfall compares with the government's own initial valuation of A$24 billion, or proceeds of just A$8 billion from the one-third sale it announced before the March 1996 election.

    A total of 4.3 billion shares will be sold in Australia's biggest privatisation, with at least 70% set aside for Australian retail and institutional investors. The rest will be sold offshore in a global roadshow of major financial capitals.

    'The government is confident that Australian retail investors will see the offer as attractive,' Finance Minister John Fahey said in a speech to launch the offer document.

    'I hope as many investors as possible will choose to become shareholders in this great Australian company.'

    The offer, one of the world's biggest privatisations so far in 1997, opens with a retail offer aimed at Australian 'mums and dads' on October 15. It closes on November 3.

    The offer to local and offshore institutions opens on October 27 and closes on November 11. The final price will be announced on the eve of listing, but the government on Monday guaranteed retail investors would pay no more than A$3.30 per share. Institutions have no price cap.

    A total of 2.3 million requests have already been received for the offer document from retail investors in an unprecedented response to the government's highly politicised sale.

    The proceeds comes as the government heads to a general election due by mid- 1999 -- but expected to be held late next year -- and as its drafts its last budget before the polls.

    Printing presses began rattling off a total of four million offer documents for prospective investors.

    The documents explains major risks to investors, including erosion of Telstra's market share as competition takes hold in Australia, and a A$900 million legal suit launched by rival Optus Communications Pty Ltd alleging anti-competitive behaviour. The suit has yet to be heard.

    Other risks cited are Telstra's exposure to the loss-making pay-TV industry and the emergence of extreme price competition.

    Telstra carries over 90% of telephone, fax and data calls in Australia. It claims 62% of the nation's rapidly growing mobile telephony market.

    A source close to the sale said offshore interest in the issue had been good, but the availability of shares in the global offer would depend on the level of domestic demand.

    'It could easily be less than 30% (for offshore investors),' the source said.

    He predicted the institutional offer of Telstra shares would be heavily over-subscribed, assuming no stock market collapse between now and the close of institutional bidding.

    'In the current market environment, it's an issue that will be well over- subscribed despite its size,' he added.

    To help ensure the offer is a success, all investors can opt to pay a part of their shares now and the rest in 12 months. In the meantime, they receive dividends and can vote the shares.

    [11] US consumer spending increases 0.3% in August, personal income rises 0.6%

    Consumer spending in the US grew at a slower pace in August than it did in June, while personal income accelerated, the Commerce Department said.

    Personal consumption expenditures rose 0.3% in August to $5.521 trillion at a seasonally-adjusted annual rate, after gaining a revised 1.0% to $5.504 trillion in July, Commerce said. Commerce previously reported the PCE increase in July as 0.8%.

    Personal income rose 0.6% to an adjusted $6.919 trillion, after rising a revised 0.2% in the previous month to an adjusted $6.880 trillion pace.

    The rise in personal income would have been higher, had it not been for the effects of a strike in the transportation industry, which reduced wages and salaries in that industry by about $2.5 billion, Commerce said.

    Economists surveyed by Dow Jones Newswires last week expected personal income to rise 0.6% in August, with spending up 0.4%.

    [12] Borders to buy UK's Books Etc

    Borders Group has signed a definitive agreement to purchase Books Etc, a London-based retailer of books and associated products. Terms were not disclosed.

    Books Etc, an independent book chain, operates 22 stores in the United Kingdom.

    Following completion of the transaction, Books will be 100% owned by a new Borders Group subsidiary, BGI, and Borders Group.

    The business will be led by Richard Joseph, currently chairman and chief executive of Books, and the existing management team.

    Borders said it did not expect the transaction to have a material impact on earnings per share in either fiscal 1997 or 1998. The transaction is currently scheduled to close on Oct. 20.

    In addition, Borders said it expects to open its first Pacific Rim store in Singapore. The store is scheduled to open on Nov. 1, it said.

    [13] Analysts give Incentive the nod for U.S. listing

    Swedish group Incentive continued to trim down to focus on its core medical technology operations and received analysts' approval for a possible US listing.

    Incentive, part of the Swedish Wallenberg family's financial empire, is selling its wholly owned humidity control group, Munters, which would be listed on the Stockholm bourse's O-list from around October 21.

    Incentive said it may list in New York in the future, a move favoured by analysts as Incentive is active on the US medical technology market.

    'A U.S. listing is positive as the U.S. market represents a large part of Incentive's business,' Johan Sivander, analyst at Swedbank, told Reuters.

    'Its main competitor, Fresenius Medical Care , is listed in the U.S.. This might increase possibilities to use equity as payment for future acquisitions in the medical technology field.'

    In May this year Incentive strengthened the kidney dialysis operations of wholly owned Gambro by buying U.S. Vivra dialysis clinics chain with about 16,000 patients for $1.59 billion.

    Incentive's possible New York listing went hand-in-hand with a statement also on Monday from Investor, the Wallenberg's key investment vehicle.

    Investor said it was selling five million of its 18.5 million Incentive shares, equal to 7.3% of Incentive's share capital, mainly to international institutions.

    'Investor is selling to foreign investors to facilitate a New York listing (of Incentive), enabling better liquidity in the U.S.,' Erik Magnusson, Nordbanken analyst, told Reuters.

    Pricing of Investor's stake is expected later this week while the pricing of Munters will be disclosed on October 16.

    Munters was described as a world leader in humidity control with operations in 25 countries, 1,800 employees, and sales of about 1.9 billion crowns in 1996.

    It could be worth a total of 2.5-3.0 billion crowns without loans and less with loans, an analyst said. 'Incentive will use the money to develop U.S. operations, partly the dialysis side and partly the cardiovascular side in (medical technology unit) Gambro,' Magnusson said.

    'They will improve cardiovascular operations' profitability either through investments or acquisitions but I think we will see acquisitions there.'

    Incentive has released money by selling non-core assets. Last Thursday it announced the sale of its Hagglunds Vehicle division to British defence manufacturer Alvis for about 975 million crowns.

    This year it has also sold half its stake in engineer ABB AB for 12.4 billion crowns, Electrolux shares for 1.2 billion crowns, TA Hydronics for 1.2 billion crowns and U.S. group Wabco for 810 million crowns.

    'It's right to get rid of everything that cannot generate more money than it already does and focus on operations that can be developed,' Magnusson said.

    Analysts expected Incentive to sell its few remaining non-core operations, building equipment maker TA Control, dock and ship equipment maker MacGregor and Hagglunds Drives, a hydraulic drive systems maker.

    [14] Corporate and Economic Briefs

    Germany's Rheinmetall Beteiligungen , the holding company for the automobile business of industrial group Rheinmetall, said it had signed an agreement to merge auto supplier Kolbenschmidt into its holdings. Rheinmetall currently holds 53.5% of Kolbenschmidt. The pact effectively merges Kolbenschmidt into Rheinmetall Beteiligungen, which owns a large share of engine parts maker Pierburg, Rheinmetall said. The new company will be called Kolbenschmidt Pierburg AG, and will be 76.4%-owned by Rheinmetall. It will also eventually be listed on the stock exchange, Rheinmetall said.

    Coca-Cola expects worldwide gallon sales to increase 11% to 12% in the third quarter, led by Africa, Middle and Far East Groups where 22% to 23% increases are projected. The company expects increased gallon sales of 6% to 7% in in North America and in the US. In Latin America, gallon sales are expected to rise 9% to 10%, and a 10% to 11% increase is projected for the Greater Europe Group.

    Sales in the Czech industrial sector climbed 5.1% in August on the year and 3.4% on the year over January through August, the Czech Statistics Office (CSU) reported, citing preliminary figures. Nominal wages in industry increased 11.2% in August from August 1996 and 13.4% from January through August compared with the same period a year earlier, the CSU said. Real wages increased 1.2% in August year-on-year and 5.4% from January to August, the CSU said.

    The Office of Fair Trading. said it has reached an agreement with competition authorities in France and Germany to make multi-national merger procedures easier for companies. Businesses will now be able to use a common form accepted by all three bodies, for mergers that have to be examined in more than one of these countries. Previously, if a merger was subject to control in several countries, companies had to submit the same information in all three countries. Companies will be told within a month if further examination of their merger proposals is required.

    Toyota said it has decided to boost its stake in Hino Motors to 20.1% from 16.4%. As a result, Toyota will raise the number of shares it holds in the truck maker to 72,764 million from 59,464 million. The purchase will help strengthen both companies' management fundamentals and deepen co- operation in the field of small trucks, particularly the 2-ton category, Toyota said. A spokesman for Toyota said the automaker will purchase the shares from other major shareholders although he declined to say which. 'We found some major shareholders of Hino would like to sell a portion of their shares to us,' he said. He said Hino won't be issuing new shares to Toyota.

    Belgium's year-to-year inflation was a preliminary 1.62% in September, compared with 1.85% in August, the lowest rate registered since May, the Belgian economics ministry said. The CPI was down 0.43% from August. September's preliminary inflation was led by increases in the cost of flowers and plants. Meanwhile, the cost of foreign travel, gasoline, holiday resorts and fresh fruit fell. The health index meanwhile, used to calculate rents and salaries was 122.34 points for Sept, down 0.41% from 122.84 points in August. The lowest rate for Belgium's consumer price index this year was 1.26% in April, while the highest was January's 2.31%.

    Denmark's second-quarter GDP from a year earlier was within economists' expectations, which ranged from as little as 2.4% to as much as 4.5%. Growth was largely led by strong domestic demand, which caused a pickup in private consumption, pushed imports higher and prompted a rise in fixed investments, the statistics office said. Private consumption rose 2.5% in the second quarter from the first quarter, making it the greatest contributor to growth among the separate components that make up the GDP figure. Imports of goods and services rose 1.9% in the quarter, while exports fell 1.7%. Meanwhile, second quarter economic growth was skewed by the Easter holiday, which fell in the first quarter this year but in the second quarter of 1996. The holiday, which lasts for five days in Denmark, deflated the comparative figures for both the quarter and the year.

    Italian employment in major industrial companies with more than 500 workers fell 3.4% in June from June 1996, but rose 0.1% from May this year, the state statistical office Istat said.

    Japan's Hokkaido Air System has ordered two new Saab 340 B Plus Aircraft from Saab, an unit of Swedish investment company Investor AB. The aircraft will be configured for 36 passengers in a business class layout including a large galley as well as other equipment for winter operations, Saab said. In 1998, Saab's market share will be further strengthened in Japan when the first Saab 2000 will be delivered to Japan, Saab said. No financial details were given on the order.

    Dixons Group will enter the information technology mail order business market with the launch of PC World Business Direct. The new business will be a unit of the company's PC World computer retail stores. PC World Business Direct will support a catalog of more than 9,500 products and aims for same day or next day delivery. The service will begin Oct. 6, with an advertising campaign in the national and trade press. The company's PC World computer stores already have more than 20,000 business customers, and the new launch plans to expand the client base, Dixons said.

    UK Soccer Investments said it has agreed a bid price of 110 pence per ordinary share for Leicester City Football Club, valuing the company at around £24 million ($38.4 million).Coca-Cola Cup champions Leicester City are set to be the latest soccer club to receive a stock market listing follow Chelsea Village and Newcastle United, the next most recent football stock exchange debutants. Once the acquisition is completed, SI intends to raise a further 2 million GBP via a placing and open offer to repay debts and expand the capacity at its Filbert Street stadium from 21,500 to 26, 000. The offer for the Premier League club, which has a crucial UEFA Cup tie with Athletico Madrid later this week, was made on the basis of 31.38 ordinary Soccer Investment shares for each Leicester share.


    From the European Business News (EBN) Server at http://www.ebn.co.uk/


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