As the economy slows and businesses begin to fail, European private equity houses are beginning to do some bottom-fishing for bargain companies to turn around. But so far, they are not trawling in the well-stocked dotcom pond - they know they would get a better return buying second-hand computer vendors as failing internet companies sell off their only tangible assets.

Instead, turnaround specialists are focusing on old economy manufacturing and service companies that have proven turnover, physical assets and goodwill, and whose permanence is not dependent on whether a few computer programmers jump ship the day after the deal closes.