European Business News (96-06-04)

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

Page last updated June 4 17:45 CET

CONTENTS

[01] European rocket explodes on maiden voyage

[02] France Bull and Japan NEC to each hold 19.9% of Packard Bell-NEC

[03] KLM's profit climbs to 547 million guilders

[04] Vodaphone's profit grows 28%

[05] Deutsche Telekom profit jumps

[06] Cadbury agrees to sell Coca-Cola Schweppes Beverages

[07] Spain's central bank cuts its benchmark rate

[08] UK house prices rise 1% in May

[01] European rocket explodes on maiden voyage

They said the decision to blow up the rocket by remote control was made when it appeared the rocket was veering off its trajectory, raising the risk it might crash into Earth.

French TV showed footage of the burning wreckage of the Ariane 5 rocket falling back to Earth. The European Space Agency had touted its launch at 2:33 p.m. Paris time (1233 GMT) as a new age in commercial satellite technology.

[02] France Bull and Japan NEC to each hold 19.9% of Packard Bell-NEC

The company said, 'Bull, conforming with its new micro-computer strategy initiated in December 1995, will hold, 19.9% of the capital of the new company, as will NEC.'

As reported, a new company, Packard Bell-NEC, will begin operations July 1, and will be responsible for personal-computer sales world-wide. First year sales of the new company are estimated at $8 billion, with an estimated world-wide market share of 11%, NEC said.

[03] KLM's profit climbs to 547 million guilders

The company attributed its increased profit to the revaluation of its stake in Northwest Airlines Corp. (NWAC).

[04] Vodaphone's profit grows 28%

Vodaphone said operating cash flow rose 59% to 615 million pounds during the year from 386 million pounds in the prior year.

[05] Deutsche Telekom profit jumps

The company didn't say what this meant in terms of a per-share dividend, which will become relevant following the company's partial privatization due in November.

Telekom also said it posted sales of 66.1 billion marks in 1995, up 3.6% from 63.8 billion marks in 1994. It also confirmed leaked press reports that its net profit rose to 5.3 billion marks in 1995 from 3.6 billion marks in 1994.

[06] Cadbury agrees to sell Coca-Cola Schweppes Beverages

The expected buyer is Coca-Cola Enterprises Inc (CCE).

Cadbury said in a statement that The Coca-Cola Co. has also signed a letter of intent to sell its 49% stake in CCSB to CCE.

[07] Spain's central bank cuts its benchmark rate

The central bank satisfied 100% of bids, allocating a little under 4.366 trillion pesetas, on bids of around 4.366 trillion pesetas.

The tender coincided with the expiry of around 3.986 trillion pesetas in repurchase agreements, and represents a net injection of around 380 billion pesetas in liquidity.

Of the amount allotted Tuesday, 136.250 billion pesetas were awarded at the lowest accepted yield.

Bids not accepted were for around 14 billion pesetas at a rate of 7.00%.

[08] UK house prices rise 1% in May

This follows a revised rise of 0.9% in April from March and is the 10th consecutive monthly rise, Halifax said.

The Halifax survey follows the Nationwide Building Society's report, released Friday, that showed a seasonally adjusted index of housing prices down by 0.2% in May from April but up 1.4% from a year ago.

Although Halifax said the housing market remains fragile, it added that it is revising its year-end house price inflation forecast to a 5.0% rise from a previous 2.0% rise.

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

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