Rivals spur BT to revamp U.K. operations

Article Abstract:

British Telecommunications PLC (BT) of the UK intends to restructure its core operations in the UK in October 1998 due to increased competition posed by new telephone competitors. BT intends to combine related phone and data services into several new groups to offer a broader variety of services to clients, instead of operating divisions that concentrate on particular customer subsets that include households or businesses. Under its restructuring effort, BT will form seven new groups that include a new markets division in the UK, with over 10 billion pounds sterling in sales per year, to offer data and voice services to residential, business and other clients.

Comment:

Intends to restructure its core operations in the UK in 10/98 due to increased competition posed by new phone rivals

United Kingdom, Strategy & planning, British Telecommunications PLC

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KPN to cut work force, take $429 million charge

Article Abstract:

Royal KPN NV, a telephone company based in the Netherlands, is set to lay off 3,000 employees or 9% of its work force over three years, resulting in a pretax charge of 800 million guilders. The company, which was prompted to impose the job cut because of increased pressure from competitors, had intended to restructure in April 1998, but the announcement surprised analysts, who only expected to see 2,500 jobs eliminated. KPN, which has 32,000 employees, intends to eliminate 4,000 jobs, while creating 1,000 new positions in its Internet, multimedia and mobile businesses.

Comment:

Is set to lay off 3,000 employees or 9% of work force over 3 years, resulting in pretax charge of 800 mil guilders

Wired Telecommunications Carriers, Telephone Communications, Other staff changes & profiles, Telephone services, Royal KPN N.V.

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Airline system provides lift to Equant IPO

Article Abstract:

Equant NV of Amsterdam, Netherlands, is holding an initial public offering that is anticipated to generate $400 million to $500 million. Equant, which provides telecommunications services through the same network used by airlines to make reservation and keep track of baggage, is set to offer around 15.7 million shares in Europe as well as 10.4 million shares in North America. The company's shares are anticipated to cost between $18.50 and $23 per share, and are to be listed on the Paris Bourse and the New York Stock Exchange.

Comment:

Is holding an initial public offering that is anticipated to generate $400 mil to $500 mil

Organizational history, Equant N.V.

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