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European Business News 96-09-05
From: The European Business News Server at <http://www.ebn.co.uk/>
Page last updated September 5 10:45 CET
CONTENTS
[01] Olivetti set for more trouble
[02] Graff tax trial begins today in Mannheim
[03] UK's Royal Sun posts profits of over $700m
[04] Credit Lyonnaise boss threatens to quit
[05] Carrefour's net profit from continuing operations up 19.6%
[06] French stock markets authority accepts Credit Foncier offer
[07] Royal Ahold set for 20% rise in 1H earnings
[08] Elf Aquitaine's profit 24% rise due to growth in explorartion and production
[09] Norway's Q2 GDP jumps 3% year-on-year
[10] Second quarter German GDP expands 1.5%
[01] Olivetti set for more trouble
The Italian information technology group Olivetti is set for more
trouble.
The country's stock market regulator, Consob, has called a meeting with
the company's former director general Renzo Francesconi, who resigned
yesterday. Consob said it wanted to clarify remarks made by Francesconi
concerning the companys' accounts. Francesconi was quoted as saying that
Olivetti's future looked very difficult and that he did not agree with some
of the results released. Olivetti chief executive, Francesco Caio commented
that he was surprised both at the content and the form of Francesconi's
statement.
[02] Graff tax trial begins today in Mannheim
Germany's tax trial of the decade begins in the city of Mannheim today when
the father of tennis player Steffi Graf appears in court to face charges of
tax evasion.
Prosecutors allege that Peter Graf and the family's tax adviser, Joachim
Eckhart, failed to report 42 million marks or $28m of the tennis star's
earnings between 1989 and 1993. They are thought to have avoided paying
more than 19 million marks in income taxes. Steffi Graf herself is not
implicated, but she remains under investigation and could be called as a
witness. The trial is expected to last until 1997.
[03] UK's Royal Sun posts profits of over $700m
The recently formed UK general insurance group Royal Sun Alliance has
announced first half operating profits of £450m or a little more than
$700m. The result exceeded analysts' forecasts. The group said in a
statement that the two constituents of the group, which formed in July, had
made rapid progress towards their goal of full integration by
1998.
[04] Credit Lyonnaise boss threatens to quit
The chairman of the troubled French bank Credit Lyonnais, Jean Peyrelevade,
is reported to have threatened to quit unless the latest rescue plan the
company is modified. The French business daily Les Echos says Peyrelevade
made his threat in a letter to Finance Minister Jean Arthuis. According to
the newspaper, Peyrelevade is demanding immediate government action to
protect Credit Lyonnais from losses accruing from an earlier rescue plan.
Otherwise he has said he will resign tomorrow.
[05] Carrefour's net profit from continuing operations up 19.6%
And the French supermarket group Carrefour has said that its first-half net
profit from continuing operations rose 19.6 percent to 1.2 billion francs
on the year. That's $230m.
The group's overall net profit rose 131 percent to more than 2.1 billion
francs. The figure was boosted by an exceptional gain from the company's
sale in its stake in PriceCostco of the United States.
[06] French stock markets authority accepts Credit Foncier offer
The French stock markets authority has approved the offer by state-owned
bank Caisse des Depots et Consignations for the troubled property lender
Credit Foncier. The takeover, to cost around 2.5 billion francs or $490m,
still requires acceptances covering two thirds of the shares in the group.
That, however, is unlikely to be achieved. The French shareholders action
lobby ADAM has asked a commercial court to order an independent evaluation
of the worth of Credit Foncier. It also demands that the company's 1995
accounts be anulled. ADAM argues that provisions that year totalling more
than 13 and a half billion francs had been too big.
[07] Royal Ahold set for 20% rise in 1H earnings
The Dutch food retailer, Royal Ahold, is expected to show a 20 percent rise
in first half earnings.
Net profits are predicted to come in at around 123 million guilders or
$74m. The figures should have been helped by greater efficiency in the
company's main operations and recent acquisions such as Stop and Shop of
the United States.
[08] Elf Aquitaine's profit 24% rise due to growth in explorartion and production
The French petroleum company Elf Aquitaine has shown a 24 percent gain in
half net profit to 3.6 billion francs, or $712m. That was slightly higher
than expected. Elf said the profit gain resulted from growth in exploration
and production, and higher brent crude oil prices. Operating profit also
rose 24 percent top 10.4 billion francs, while sales edged up to 113.3
billion francs
[09] Norway's Q2 GDP jumps 3% year-on-year
Norway's second quarter gross domestic product has jumped 3% year-on-
year.
That's on the back of strong growth in Norway's oil sector which accounted
for half of the rise. The glowing performance of that sector is reflected
in the increase in exports which jumped 4 percent in the second quarter
this year from the same period in 1995.
[10] Second quarter German GDP expands 1.5%
Second quarter German gross domestic product expanded 1.5 percent, greater
than economists had expected. First quarter GDP was left unrevised at down
0.5 percent. The government attributed the strong second quarter gains to
higher foreign demand because of the weakened Deutschemark, and an increase
in consumer spending. Economics Minister Gunther Rexrodt said the figures
confirm that the slump is over and the economy's fallen back into
step.
From the European Business News (EBN) Server at http://www.ebn.co.uk/
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