European Business News 96-08-26

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

Page last updated August 26 10:30 CET

CONTENTS

[01] Lloyd's of London fights back

[02] Bass PLC takes control of Carlsberg-Tetley

[03] Viag acquires Sandoz subsidiary

[04] Saxony sides with Volkswagen AG

[05] South Korea condemns past dictators

[01] Lloyd's of London fights back

The order, asserting for the first time that in soliciting American members Lloyd's has violated U.S. security laws, rocked the 308-year-old British insurance market over the weekend.

It provoked Lloyd's chairman, David Rowland, to comment that 'the risks are extremely high' for Lloyds, a collection of syndicates that receive over $12.4 bn of insurance premiums each year.

Still, Rowland predicted that Lloyd's plan to create a new reinsurance company - Equitas Group - that will take over some of its most serious risks, will meet its first deadline on Wednesday and that 'a large majority' of its 34,000 members world-wide will approve it.

[02] Bass PLC takes control of Carlsberg-Tetley

If regulators approve, the deal will make Bass the largest beer group in Britain with 35% of the market, ahead of Scottish Courage PLC with 31% and Whitbread PLC with 14%.

Bass bought the half-share of Carlsberg-Tetley from British spirits, wine and retail group Allied Domecq PLC, for £200 m ($300 m).

The Danish company will contribute its 50% stake and £20 m in cash to the joint venture, in exchange for a 20% share of the combined business, Bass said.

[03] Viag acquires Sandoz subsidiary

[04] Saxony sides with Volkswagen AG

The filing came just before Chancellor Kohl's cabinet is to decide whether to join Saxony in the legal challenge. German Economics Minister Guenter Rexrodt said after meeting with commission competition chief Karel Van Miert in Brussels on Friday that the German government probably will decide tomorrow to side with Saxony.

At the same time, Mr. Rexrodt sought to find a compromise. In an interview to be published in this week's Der Spiegel magazine, he suggests that VW could temporarily freeze disbursement of the disputed funds, though he cautions: 'But that will not work without the support of the receiver of the payment. VW has not yet warmed to an idea like this.' VW had threatened to quit the investment if it didn't receive the subsidy.

Mr. Rexrodt describes the tactics being used by Saxon Minister-President Kurt Biedenkopf as 'politically questionable,' saying they will burden Germany's relations with the commission.

[05] South Korea condemns past dictators

His childhood friend, fellow ex-general and successor as president, Roh Tae-woo, was convicted of the same crimes and given a 22 1/2-year prison term.

A three-judge panel found the two guilty of seizing power in a coup in 1979, then ordering troops to crush a pro-democracy uprising in the southern city of Kwangju six months later.

At least 200 civilians died and hundreds, perhaps thousands, of others were injured in what came to be known as the 'Kwangju massacre.'

Kwangju was the nadir of 47 years of authoritarian, largely military rule that began when South Korea gained its independence with the surrender of Japan at the end of World War II.

The nation got its first civilian president in 32 years with the election in 1992 of Kim Young-sam, who instigated the charges against his military predecessors.

The court also found Chun and Roh guilty of amassing hundreds of millions of dollars in illegal political funds during their years as president, from 1980 to 1992. Roh succeeded Chun in 1988.

Chun's death sentence is subject to automatic appeal.

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

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