Rus News Journal

The companies

“ the EURONETWORK “ there is COHERENT
a network of salons of communication Largest in Russia “ the Euronetwork “ has begun building of own federal network IP - a telephony.

the Company plans to render services of local, long-distance and international telecommunication, access to the Internet, and in the long term - services of rent of communication channels and construction of corporate networks. Now “ the Euronetwork “ establishes the central equipment in 49 regional cities of Russia, and in Moscow already finishes installation and receives the necessary documentation. Investments into the project will make $23 million Till the end of 2007 the company is going to entangle IP - networks all territory of Russia. According to participants of the market, an investment in building IP - networks in regions are capable to pay off for half a year - year, under adverse circumstances - for two years. “ Very many depends on what relations have developed at “Euronetwork“ with local communications service providers, - general director IP - TEL CO Victor Istratov speaks. - If they will be possible manage about good quotations on an exit in city networks, it already half of success “. In “ Euronetworks “ with it agree. According to the vice-president on technological development “ Euronetworks “ Andrey Volodina, with all largest telecommunication companies already there is a process of signing of contracts on interaction.

By the way, cellular ritejler has decided to go to telecommunication business, already having experience in this sphere. It is more than year back “ the Euronetwork “ together with the company “ Kombellga “ has started the project on release of cards IP - a telephony under the brand. “ on financial indicators the project very successful “ - Volodin confirms. Besides, all 12 regional offices of the company and more than 400 salons of communication are connected by a multiservice network on the basis of equipment Cisco Systems. The Same equipment will be used and in building federal IP - networks.

INTENTIONS
“ Gloria Dzhins “ changes manufacture for retail
the Rostov company “ Gloria Dzhins “ intend to curtail output on the basic industrial platform in a city of Mine and to terminate the contract with Levi Strauss under which the separate factory has been constructed.

making this statement in interview to local TV channel, the president of the company Vladimir Melnikov has explained the decision “ insuperable legislative and administrative barriers which manufacture " has faced; also has not excluded that it will be translated in other countries. According to Melnikova, now development of a retail network " becomes a priority in development of business which in ten years should cost not less than $1 mlrd; Gloria Dzhins “ (now it consists of more than 30 shops). the Council of Federation Millers has refused comments.

Participants of the market have apprehended news about plans “ Glorias Dzhins “ ambiguously. To Andrey Grigoriev, the head of Russian representation Benetton, such step seems strange. “ at the certain received commodity market the industrial margin usually above retail against higher financial risks in a retail, - marks Grigoriev. - considering “Gloria`s“ connected with increase of capacities all last actions, the given decision not seems logical. Perhaps, it concerns only the contract with Levi’s which could be unprofitable financially, but did good publicity? “. And according to Olga Sofronovoj, the head of service of strategic marketing of the company “ the May Day dawn “ company intention does not look unexpected. “ manufacture in Russia is more expensive, than in China, - tells Sofronov. - However, in itself it cannot explain refusal of local manufacture “. Probably, Sofronov`s madam believes, the reason is covered in increase of requirements of foreign customers to terms of deliveries and quality of production that could affect rhythm of own manufacture and, hence, increase its cost price.

the TRANSACTION
“ Borzhomi “ Company Georgian Glass and Mineral Water Co will flow per customer
. N. V, owning the general licence for extraction and pouring of mineral water “ Borzhomi “ has agreed about merge with Georgian ML LTD, the sublicense making under the contract water “ Borzhomi Gold “.

As Tatyana Karimova, the general director of the company " confirms; Waters of Borzhomi “ (is the general distributor “ Borzhomi “ in Russia and the Baltic States), a merge main objective - control reception over pouring and brand distribution “ Borzhomi “. After end of transaction GG & MW will receive in management factory ML LTD and will supervise 97 % of pouring of water from region Borzhomi (now on a company share 90 % are necessary). And the distributor “ Borzhomi ML “ becomes the exclusive supplier “ Borzhomi “ in channel NoReCa in Moscow, Petersburg and in territory of Azerbaijan. The Sinergetichesky effect on which count in the company, is estimated in $0,5 million - $1 million Besides it, merging with ML LTD, GG & MW becomes also the basic applicant for a victory in the tender for the right to extract and spill “ Borzhomi “ which will take place in 2007.

According to head and owner ML LTD of Nikoloza Lazishvili who after the transaction will hold a post of the special adviser at board of directors GG & MW concerning brand development to provide deliveries in capital “ a public catering “ for “ Borzhomi ML “ before working in 53 regions, it will be more difficult, but it is more interesting. “ in region it is enough to adjust relations with the wholesaler, and easy to work, but restaurants and cafe - quite another matter, - tells Lazishvili. - On the other hand, now we can work with all ruler of “Borzhomi“, and at the expense of clients of “Waters of Borzhomi” we expect to double turns “. In the long term, according to Lazishvili, to Moscow and Peter other cities will be added. The question on it will dare in three months of work under the new scheme.

AMBITIONS
“ Inko “ the Moscow company " will freeze Moscow and Peter
; Inko “ Becomes the largest distributor of the frozen products in Russia. It will allow it on - new to build relations with suppliers, achieving essential reduction of prices.

One of the largest players of the Russian meat market - group “ prodo “ (copes Millhouse Capital) has sold a corporation controlling interest “ the International business - club “ (MBK) - the leading player in the Petersburg market of the frozen products. The Moscow competitor - the distribution company " became the buyer; Inko “.

MBK occupies about 60 % of the market of distribution of the frozen products in Severo - the Western region. The company serves more than 2 thousand clients in Petersburg, being the distributor of trade marks “ Darya “ “ MLM “ “ Talosto “ Hortex and etc. According to some information, Millhouse Capital has decided to get rid of all meat actives entering into group “ prodo “ And MBK became the first sold enterprise. However, in Millhouse Capital and in the group “ prodo “ abstain from comments in this respect. And the general director “ Inko “ Sergey Tchurkin does not deny the transaction fact, but also does not open its details. Analysts estimate a sum of transaction in $5-10 million According to Tchurkin, “ Inko “ and MBK will be united in holding structure. It becomes the largest distributor of frozen production in Russia with sales volume more than $100 million According to analysts, process of association of the distribution companies in the market “ frosts “ will proceed. The companies - to manufacturers, in turn, should go on serious discounts in work with the distributors who have strengthened the position.

INVESTMENTS
“ the Three Dialogue “ in packing
the Company “ the Three Dialogue “ Expects to increase essentially the portfolio within three years at the expense of investments into the packing market. And to the manufacturer of packing - the companies “ the Format “ - partnership with “ the Three “ will help to leave in leaders in this segment of the market.

Fund of direct investments “ Three Dialogue “ has bought 45 % of shares of company “ the Format “ the manufacturer of packing materials from expanded polystyrene. Interest to this business the president “ Three “ Pavel Tepluhin has explained to that “ the packing market is on lifting and has huge potential of growth “. Packing materials from polyfoam are used by manufacturers household and office equipments. Under forecasts “ Three “ by 2007 rates of increase of the market of packing materials from polyfoam will reach 58 % a year. As Tepluhin, in 2-3 years " has declared; the Three “ leaves this business, having sold the package to the strategic investor.

Purchase of actions “ Format “ - the second transaction made by Fund of direct investments “ Three “ created in the beginning of year. In February the fund has bought 40 % of actions of concern “ Arbat Prestige “. Cost of a package of the packing company in “ to the Three “ do not disclose, it is known only that the next 1,5 years the fund invests in “ the Format “ $22 million Analyst FK “ Interfin a trade “ Dmitry Tsaregorodtsev has noticed that purchase large, but not controlling stocks - from 25 % to 50 % - is typical for funds of direct investments: “ investors Owning such share do not incur an operative management but only advise on the questions connected with a financial and market policy “.

Attraction of the capital by sale of actions to fund the founder “ the Format “ Igor Sosin named “ in the unique correct way of development of the company “. “ the Format “ Plans to leave in leaders of the market of packing production and already now considers possibility of partnership with such manufacturers, as “ polar “ Rolsen and “ the Falcon “. However the head of Moscow representation Rolsen Leonid Osipov has noticed that while the companies enough own capacities and to packing from the independent supplier she will address in a case, “ if cost of products of this company and an expense for their transportation is more low, than our own “.

DEBTS
the Alpha bank favourably has apologised
to avoid judicial proceedings and to involve new investors, the Alpha bank has decided to return 10 - the percentage commission which has kept from the clients who have ahead of schedule withdrawn deposits during a summer panic in the bank market.

From July, 6 till July, 10th many investors frightened of crisis, have taken away the savings from Alpha bank branches. As a result the bank has lost for 4 days almost $250 million To stop outflow of clients, on July, 8th bank has entered 10 - the percentage commission for removal of means from accounts under fixed deposits. This measure has helped poorly - from July, 8 till July, 17th the accounts cancelled 3124 persons, and the commission withheld by bank, has made about 99 million rbl. By words a press - the secretary of bank of Natalia Dokuchaevoj, these means “ have gone on a covering of the costs caused by mass withdrawal of contributions “ - to serve all investors, the bank had to employ in addition 62 persons and 37 collector cars.

on July, 17th the bank has cancelled the commission. However dissatisfied investors have counted “ the penalty “ illegal also have brought an action against bank. The Alpha bank, in turn, has refused to return the withheld money and has brought an action against the newspaper “ “ ostensibly spread panic among owners of deposits. Representatives of bank have declared that will pay penalties, only when the newspaper will pay to bank of 320 million roubles of a damage. The conflict was heated, but unexpectedly the Alpha bank has gone “ on world “ having decided to start to return since November, 1st to investors the commission. “ for reception of money the investor needs to come only to branch in which it opened the account, and to show the passport “ - Natalia Dokuchayev has told. In Moscow the bank will return the commission on 1279 deposits, in regions - on 1845. “ It is very favourable imidzhevyj a course, - considers “Prospectus“ operating actives UK Alexander Baranov. - without superfluous publicity expenses the bank can return a part of investors and avoid suits “.

PLACING
“ Rambler “ will go on a stock exchange
In November on AIM - an alternative platform of the London stock exchange - will take place IPO “ Rambler of Media of Group “ (RMG). Having sold a part of actions, “ Rambler “ expects to receive means for acquisition of some media actives.

In “ Rambler “ Consider that in the future pocket multimedia devices - smart phones become the basic media carrier, and media will combine in themselves the Internet, television and mobile communication. The companies anyhow concerning these three spheres of business, also make today structure RMG. It is the Internet - holding “ Rambler “ (the owner of a Rambler search engine and the several more Internet - actives), news agency “ the Tape. ru “ telebroadcasting corporation “ Rambler “ (the owner of TV channel Rambler TV), advertising agency “ the Index - 20 “ and company SMXcom (the operator of mobile services). According to chairman of board of directors RMG Oleg Radzinsky, in addition the company plans to buy in addition to available actives a little large SMS - operators (market SMS - services, according to IK “ Aton “ Grows on 100 % a year, and under forecasts its volume in 2005 will make $200 million), the Internet - resources and regional broadcasting companies in cities with the big advertising market.

Anderrajterov on placing IPO Radzinsky did not begin to name, but has informed that it is a question about “ the largest Russian investment bank “ and “ one of five greatest world banks “. In RMG do not disclose the prospective size of the means obtained for actions. “ Aton “ estimates cost of actives RMG in $100-150 million (the disorder in estimations is caused by absence of the exact data about financial indicators of the company), but, according to one of managers RMG, it “ it is more in times “.

the Russian telecommunication companies already have a successful experience of an exit on IPO. So, for example, the company of RBC similar with “ Rambler “ On a format, despite sceptical forecasts of analysts, it was possible to involve through placing IPO means for creation of own television and to achieve capitalisation in $200 million This time anybody from analysts at all does not risk to pass an opinion the opinions of success IPO “ Rambler “ referring to closeness of the company.

RE-STRUCTURING
Alitalia will fork
to the Management Italian Alitalia it was possible to convince at last trade unions to approve a series of measures which will allow the company to avoid bankruptcy. Further the national carrier hopes to correct affairs at the expense of merge with KLM - Air France.

Following the results of last year losses Alitalia, supervising 45 % of the market of national transportations, have made 520 million euro (almost third of authorised capital stock), and in the first quarter 2004 - go have exceeded 300 million euro. At a gain 4,3 mlrd euro debt Alitalia has reached 1,6 mlrd euro. According to four-year business - to the plan offered by the new head of company Dzhankarlo Chimoli, Alitalia from 22 thousand employees will reduce about 4 thousand and will be divided on two parts: one will be engaged in the transportations, the second will provide their land service. Thus last, according to company management, should be opened for investors. Thanks to the undertaken actions till the end of the year Alitalia hopes to save about 770 million euro.

It is supposed that a part of means, neobhodimyh for carrying out of re-structuring of the company, will help to find the government which 62 % of actions Alitalia now own. Thanks to the given state guarantees the European Union already has approved a loan in 400 million euro - this sum of the company should suffice till March, 2005.

If all will go according to plan 2006 Alitalia will finish without losses, and in 2007 - the m can afford park updating sredne - and dalnemagistralnyh courts. In long-term prospect the company management assigns high hopes to merge Alitalia with KLM - Air France. In 1999 Italians already tried to unite with Dutch KLM, however the alliance has not taken place from - for worsened indicators Alitalia. Whether the parties to it this time can return, depends on that, present business - the plan of a management of the Italian carrier is how much successfully realised.

SALE
Levi’s minus Dockers
Legendary Levi Strauss & Co. Apparently, has found the buyer for not less legendary shoe and odezhnoj mark Dockers exposed on sale in May of this year.

the Division will be sold for $800 million nju - jorkskomu to fund of direct investments Vestar Capital Partners and the founder of mark Ralph Lauren Polo Jeans Eric Rotfeldu, owning in the past jeans κξμοΰνθειSun Apparel.

Disposal from Dockers - the next step to realisation of the strategy directed on reduction of costs, improvement of financial indicators and concentration nanaibolee perspective marks Levi Strauss. Thanks to the beginning of sales to networks Wal - Mart cheap jeans Levi’s Signature and to manufacture carrying over for limits of the USA of company business have gone uphill. Following the results of second quarter 2004 Levi Strauss & Co. Has received $6 million net profit whereas one year ago its losses have made $42 million Sale Dockers as believe in the companies, will allow to reduce debt Levi, to the second quarter end making $1,96 billion At the same time, declaring in May intention to leave with Dockers, Jim Fogarti, financial director Levi Strauss, named this decision more likely strategic, rather than compelled. “ at us a sufficient stock of liquidity, and we in a condition to carry out of our obligations irrespective of, whether we will sell business Dockers or not “ - has declared Fogarti. Originally division Dockers, which annual sales volume makes about $1,4 mlrd (turn Levi Strauss - about $4,1 mlrd), was estimated in $1 mlrd, however after falling of sales on 26 % in the second quarter the price should be corrected.