TXU, the former Texas Utilities, is poised to withdraw a promised $700 million lifeline to its troubled European subsidiary, people close to the company said today.

Analysts say the troubled subsidiary is the ultimate poison pill, and may be the one thing that has kept Pillsbury independent.

C9 Subsidy May Be Withdrawn TXU is poised to withdraw a promised $700 million lifeline to its troubled European subsidiary, people close to the company said.

John Tugwell, the bank's respected executive who was drafted in last year to help reorganise the troubled subsidiary, said the turn-around performance is expected to continue.

Analysts seemed heartened by narrowed losses at Jaguar, the troubled British subsidiary of Ford.

In another recent case, a Federal appeals court held a parent company responsible for benefits that had been promised to employees of a troubled subsidiary.

Two large power companies have submitted bids for part of TXU Europe, the troubled subsidiary of TXU, the former Texas Utilities, people involved in the discussions said today.

The government's compensation of the airlines comes when it has also announced a compensation deal worth A$60m with the troubled Australian subsidiary of the American photographic giant Eastman Kodak.

Davis worked for Tate & Lyle for 17 years, rising to become a senior executive, including restructuring its troubled Canadian subsidiary, Redpath Sugar.

The NEC Corporation said on Thursday that it would take a charge against earnings of about $850 million to help bail out a troubled subsidiary that makes consumer electronics equipment.