/raid1/www/Hosts/bankrupt/TCREUR_Public/020320.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, March 20, 2002, Vol. 3, No. 56


                            Headlines

* G E R M A N Y *

CONSORS AG: Announces 2001 Year-End Financial Results
DEUTSCHE TELEKOM: Adopts Extensive Rescue Package
DEUTSCHE TELEKOM: Regulator Sets Lower Rate for DSL Line Access
ENERGIS PLC: S&P Lowers Junk Rating Further Down to "D"
FRICK: Wobbles Under Pressure, Troops to Court for Protection
GERLING KONZERN: Deutsche Bank, Rolf Gerling Willing to Cut Stake
JOHN LAING: Absorbs GBP24 Million Pre-tax Losses in 2001
KIRCHGRUPPE: Rescue Plan Out in 2-4 Weeks as Talks Progress
KIRCHGRUPPE: Meets With Creditors Over Weekend, Details Unknown
TEAMWORK INFORMATION: EBIT Loss in 2001 Cut by 95.5%

* N E T H E R L A N D S *

KPN NV: Reports EUR 7.5BB Net Loss in 2001
KPN NV: Will Buy Back 6.05% Bonds to Cut Debt
KPN NV: Acquires Full Ownership of Contrado
KPN NV: KPNQwest Completes Ebone & GTS Acquisition
KPN NV: KPNQwest Announces EUR 525MM Senior Credit Facility

* N O R W A Y *

BROVIG ASA: Completes Sale of Brovig RDS Unit for $5MM

* P O L A N D *

ELEKTRIM SA: Majority Owner Will Exit Poland via Citigroup
ELEKTRIM SA: Sells 4MM Shares to Multico

* S W E D E N *

LM ERICSSON: Authorities Push for Probe Into Consultant Payout

* U N I T E D   K I N G D O M *

ANTHUR ANDERSEN: Whitehall Mulls Ban on Gov't Work.
ARTHUR ANDERSEN: German Unit Wants Out of Global Partnership
CONSIGNIA: Hays Settles Row Over Service, Pays GBP5.5 million
CORUS GROUP: Preliminary 2001 Report Records Loss of GBP 419MM
CORUS GROUP: Sells Aluminum Units After Another Loss-making Year
CORUS GROUP: Will Not Hold Back Plan to Cut 4,000 Jobs in U.K.
ENODIS PLC: Shareholders Give Nod to Rights, Bond Issues
P&O PRINCESS: DTI Endorses Carnival Bid to Competition Experts
PPL THERAPEUTICS: Delay on Emphysema Drug Test Cuts Share Value


=============
G E R M A N Y
=============


CONSORS AG: Announces 2001 Year-End Financial Results
-----------------------------------------------------

Nuremberg-based Consors Discount-Broker AG's released its
consolidated financial statements for the fiscal year ending
December 31, 2001.

The company's records were burdened by the strongly retrograde
transaction and volume figures in an extremely weak capital
market environment as anticipated.

As a result, operating income decreased to 179.6 million euros
(2000: 333.7 million euros). The 'Fit for Future' cost reduction
program introduced early in 2001 outperformed expectations and
successfully cut the reporting year's operating expenses before
depreciation down to 243.9 million euros (2000: 266.2 million
euros).

Tangible assets were depreciated by 38.3 million euros (2000:
23.4 million euros) and operating result after taxes and minority
interests is -62.8 million euros (2000: 26.5 million euros), i.e.
-1.32 euros per share after 0.58 euros for 2000.

In view of the uncertain economic prospects and difficult market
environment, non-scheduled depreciation of investments and
goodwill amortization amounting to 79.5 million euros was
undertaken and which is reflected in the individual financial
statements of Consors Discount-Broker as tax-effective
depreciation of affiliated companies, interests and
participations.

The annual financial statements therefore post a net loss of
125.5 million euros, equivalent to -2.64 euros per share. With a
core and equity capital ratio of 30 percent of the weighted risk
assets, the Consors Group has a very good equity capital base and
in this respect is clearly above the statutory requirements of 4
and 8 percent respectively.

In fiscal 2000, Consors had net income of 17.0 million euros, or
0.38 euros per share, and paid a dividend of 0.18 euros. The
company will present and comment its annual financial statements
at a press conference and analysts meeting in Frankfurt on March
27, 2002.

Consors has been up for sale since November during the near
collapse of its parent company SchmidtBank. Consor's parent
company was rescued from bankruptcy by a consortium of Germany's
largest banks, including HVB, Deutsche Bank, Commerzbank,
Dresdner Bank and the Bavarian savings banks.

Schmidtbank, which holds a 65% stake in Consors, said it aimed to
sell the online broker by March this year.

Consors is valued at around 450 million euros ($398 million).


DEUTSCHE TELEKOM: Adopts Extensive Rescue Package
-------------------------------------------------

Detb-laden German telecoms group Deutsche Telekom adopted a
package of measures after the Federal Cartel Office's decision
relating to the stock-market environment.

In February, the Federal Cartel Office had blocked the sale of
six cable regions to the American company Liberty for
approximately 5.5 billion euros.

Despite the Cartel's decision, the Board of Management will stick
to its positive growth and profit forecasts, as well as to its
aim of significantly reduce debt.

After consultations with the committees of the Supervisory Board,
on Monday, the Board of Management of Deutsche Telekom's
extensive restructuring package will take into consideration the
following aspects:

A) A dividend of 37 cent for 2001 is to be proposed to the
Supervisory Board and the General Meeting of Shareholders.
The dividend per share will thus be approximately 40% lower
than last year. Nevertheless, Deutsche Telekom's dividend
yield is still among the best of European and American
telecommunications corporations - and the companies quoted
on the DAX.

B) There will also be sharp cuts in capital expenditure (from
9.9 billion in 2001) and in costs. - In addition, the Board
of Management reaffirmed its intention to spin off non-
strategic equity holdings. The process of selling cable
interests will continue.

C) Against the background of the negative global stock-market
climate, Deutsche Telekom's Board of Management furthermore
decided against holding the initial public offering of T-
Mobile in the 1st half of the year. A new date for the
flotation will be set flexibly in line with stock-market
situation.

D) The aim of this package of measures is to achieve the aim
of reducing debt to approximately ?50 billion by the end of
2003.

All four pillars of the Group continue to show strong growth, as
expressed by a big increase in customer figures and operational
financial ratios. The Board of Management is confident that this
package of measures will secure and additionally strengthen
Deutsche Telekom's continued positive development.


DEUTSCHE TELEKOM: Regulator Sets Lower Rate for DSL Line Access
---------------------------------------------------------------

Deutsche Telecom will have to share its DSL lines with rivals
offering fast Internet service and at a much lower rate, the
German telecom regulator RTP ordered recently.

The regulator set the monthly rate at 4.77 euros in a ruling that
ended several months of legal wrangling.  Deutsche Telekom had
earlier sought a 14.65 euro-charge for the use of the facility.
The rates are valid until June 30, 2003.

According to Handelsblatt, the telecom giant is planning to
question the ruling in court, claiming that the price was too low
and would not cover costs.

"The decision favors pure resellers of Telekom products and
devalues our investments and infrastructure," a Telekom spokesman
told the paper.

But the new rates, no matter how low, won't likely encourage
competition against the phone giant, the report said.

DSL service provider QSC, which had requested a much lower rate,
says it has no intention of competing against Telekom in the
private-customer market.

"Even though the line sharing price (of 4.77 euros) is acceptable
by European standards, it is far too close to Deutsche Telekom's
price charged to end users of 8.61 euros," QSC CEO Bernd
Schlobohm told the paper.

He said his company will continue to concentrate on the
corporate-customer market, instead.  QSC has so far been the only
company to indicate that it plans to use the line-sharing
technology.


ENERGIS PLC: S&P Lowers Junk Rating Further Down to "D"
-------------------------------------------------------

Standard & Poor's has lowered the credit rating of cash-strapped
Internet traffic carrier Energis Plc to "D" from "C" after it
delayed paying interest Friday on a bond due 2010.

The downgrade affected Energis' 562 million pounds worth of
bonds.  The default was on a 300 million pounds of 9.125% senior
notes, which are now trading at 16% of face value, the ratings
agency says.

"Although the terms of the bond include a 30-day grace period,
Standard & Poor's believes that Energis will not meet the payment
by April 15, which equates to a default," S&P credit analyst
Leandro de Torres Zabala said in a statement.

The troubled firm plans to sell its unprofitable European
ventures and fire 400 workers.  The company has admitted to be at
risk of breaching a 725 million-pound credit line.

Energis is currently talking with a group of bondholders that own
50% of its junk-rated debt. It is seeking to persuade them to
exchange their debt for other securities.

Bloomberg says bondholders have appointed Bingham Dana LLP and
Talbot Hughes LLP as legal and financial advisers.

According to Bloomberg, Aberdeen Asset Management Plc, Morley
Fund Management Ltd., Merrill Lynch & Co. Inc. and M&G Group Plc
are among the biggest holders of Energis bonds.


FRICK: Wobbles Under Pressure, Troops to Court for Protection
-------------------------------------------------------------

German carpet retail group Frick has thrown the white towel to
the canvass, claiming it can no longer meet its mounting
obligations, the Die Welt/FT Information said Monday.

The filing for insolvency dealt a blow to the ambitious plan of
Carpetland to expand within Germany.  The Belgian-owned
Carpetland bought into Frick two years ago and began an expansion
through a joint venture with Rewe.

The expansion stretched Frick to 179 stores, becoming the market
leader in Germany.  Using Frick, Carpetland also bought recently
Wand & Boden, the interior design specialist.

The report did not indicate how much Frick owes creditors.  The
report neither identified any creditor.

Carpetland is majority-owned by Mitiska, which has had its own
financial problems in recent times. In July of last year, it
undertook a capital increase to raise EUR26.65 million to
continue growth.


GERLING KONZERN: Deutsche Bank, Rolf Gerling Willing to Cut Stake
-----------------------------------------------------------------

German insurer Gerling has officially sounded off its call for a
partner with the announcements by Deutsche Bank and Rolf Gerling
that they are willing to dilute holdings to save the firm.

According to Handelsblatt, both shareholders, who respectively
own 34.5% and 65.5% stakes in the firm, say they are willing to
have another partner take majority control of GKB, Gerling's
holding group.

As this develops, people in banking and insurance circles believe
that a buyer will most likely come from the reinsurance sector,
not least because it is Gerling's reinsurance arm, Gerling Rck,
which is behind most of the group's difficulties, the report
said.

Reinsurance accounts for around 48% of Gerling's total premiums
income of 10.3 billion euros, the report said.

Rumors are rife that global market leaders Munich Re and Swiss Re
are eyeing Gerling.  France's Scor is also seen as a serious
candidate.

Scor CEO Jacques Blondeau has repeatedly stressed that his
company lacks critical mass.  There are talks that the company
has already held negotiations with Gerling.

Gerling is blaming its woes to losses related to the September 11
attacks as well as additional provisions for its U.S. business.
It posted a 500-million-euro loss for 2001.

The company recently received a 300-million-euro boost from
Deutsche Bank. With the recent announcement, Deutsche Bank
appears to have finally lost patience with the underperforming
firm, the report says.


JOHN LAING: Absorbs GBP24 Million Pre-tax Losses in 2001
--------------------------------------------------------

Builder John Laing booked a 24.7-million-pound pre-tax loss for
2001. The firm is attributing the red ink to its recently
disposed construction division.

Finance Director Adrian Ewer, however, says Laing's continuing
businesses have improved their operating profits by 18% to 84.5
million pounds. He said the prospects of the company now look
good after the recent disposal.

The company is now left with two businesses: house-building and
investment in infrastructure projects.

The board is recommending a dividend of 7.6p per share this year,
down from 13p last year.


KIRCHGRUPPE: Rescue Plan Out in 2-4 Weeks as Talks Progress
-----------------------------------------------------------

A KirchGruppe insider says a restructuring plan could be out in
two to four weeks.

According to the Handelsblatt, the source, who was privy to the
talks over the weekend, said the plan is definitely geared
towards avoiding bankruptcy.

The source said the meeting over the weekend was led by
Dsseldorf-based lawyer Wolfgang von Betteray.  The discussions
have now shifted to loss-making units like sports broadcaster DSF
Deutsche Sporttfernsehen and Kirch's local broadcasting units,
the source said.

Meanwhile, according to the same report, the local broadcasting
units of Kirch, which are currently being peddled for cash, will
cut 250 jobs and change programming to cut on cost.  The layoff
will push through whether or not buyers can be found.

TV Berlin, Hamburg 1, and TV Mnchen, on the other hand, will
make two to three hours' worth of programs with local content,
instead of running a full-day's programming.

According to reports, TV Mnchen is running at an annual loss of
EUR10 million.

Loss-making news channel N24 is also going to review its
programming to make savings. But under the present plans, there
won't be any job cuts, according to an insider.

N24 employs 270 people and produces news items for Kirch units
Sat 1, ProSieben, and Kabel 1. Only a few days ago it parted
company with Chief Executive Ulrich Endel.

In another development, the company says Kirch Media vice-chief
Jan Mojto will be leaving the group within the next few weeks.
The executive, who is behind the group's key business in film-
rights trading and film production, was earlier hinted as
successor of Leo Kirch at the helm of the media group.

Kirch insiders say Mr. Mojto will take several of his closest
colleagues with him to work on his next project, an independent
firm called Events on Stage, the report said.


KIRCHGRUPPE: Meets With Creditors Over Weekend, Details Unknown
---------------------------------------------------------------

Georg Kofler, the new chief of loss-making Premiere, was expected
to present a "realistic" business plan yesterday before the
supervisory board of KirchGruppe, the Associated Press said.

This report broke as sources told the same news agency that a
meeting between Kirch and its creditors occurred over the weekend
to examine "various situations."

The sources, however, declined to give any details of the meeting
or hint whether or not Premiere will be auctioned off as planned.
Kirch had earlier hinted the possibility of selling its Formula
One racing broadcast rights and Premiere.

Kirch has been negotiating with its banks for weeks seeking a
rescue package.  The privately held conglomerate has slipped 6.5
billion euros into the red on mounting losses at Premiere, a pay-
television division and the main drain on its resources, and a
slump in advertising revenue.

Failure to reach a deal with the creditors, which include
Bayerische Landesbank, HVB and Commerzbank, could lead to the
breakup of the company, analysts say.


PHILIPP HOLZMANN: Creditor Banks Remain Doubtful on Rescue Plan
---------------------------------------------------------------

Bank creditors of construction firm Philipp Holzmann remain
pessimistic about the viability of the rescue plan being forced
upon them by main shareholder Deutsche Bank.

The rescue plan involves selling the troubled firm's profitable
technical services unit HSG, waiving 200 million euros in debt by
the banks, and transferring the real estate unit to the creditor
banks for around 500 million euros.

According to Reuters, the creditor banks do not believe that plan
ensures the continued operations of the firm in the future.

"So long as there is no viable concept, it isn't possible to
support the plan," a Dresdner Bank spokesman told Reuters Sunday.
He declined to comment on the substance of the talks Sunday or on
the likelihood of Holzmann being forced into insolvency.

The failure to agree on a deal leaves the threat of insolvency
hanging over Holzmann, the report says.  Just two years ago,
Chancellor Gerhard Schr"der brokered a 2.2 billion euros ($1.95
billion) rescue, averting Germany's biggest corporate failure and
saving thousands of jobs at the 150-year-old company.

Holzmann is seeking new financing as a slump in the domestic
construction market and unprofitable real estate investments
drove up losses last year.

Banking sources say the company is facing a 2001 net loss of
about 240 million euros, compared with a loss of 80 million euros
the previous year.


TEAMWORK INFORMATION: EBIT Loss in 2001 Cut by 95.5%
----------------------------------------------------

Paderborn-based IT consultancy company Teamwork Information
Management AG was able to close the 2001 fiscal year with an EBIT
of -1,503 thousand euros on sales of 9,951 thousand euros at the
group level, a year-on-year reduction in the EBIT loss of 95.5%.

This means that teamwork has achieved an important milestone in
its reconstruction. The EBIT also reflects 405 thousand euros in
accounting losses that resulted primarily from the sale of
shares.

Following positive results in the second and third quarter of
2001, the fourth quarter of the past fiscal year was well below
expectations. The causes of this were the difficult general
economic conditions and the special situation of the long-lasting
insolvency of teamwork AG.

The British subsidiary InfoSys Ltd. closed the past fiscal year
successfully with sales of 3,089 thousand euros and a positive
EBIT of 106 thousand euros.

InfoSys achieved particular success over the past fiscal year
with teamwork AG's Domisphere Web content management system.

After insolvency: positive result expected for the third quarter
of 2002

Teamwork expects to achieve a positive group result in the third
quarter of 2002 following the capital measures and its emergence
from insolvency during the second quarter.

The year-end financial statements for 2001 will be published on
March 28, 2002.

These statements form a part of the sales prospectus for the
upcoming capital increase. The agreement of the German stock
exchange, Deutsche Borse AG, to the sales prospectus is expected
by March 27, 2002.

Teamwork offers services include consulting, development,
implementation, support and training to more than 1,000 companies
in Germany and Great Britain.

Contact Dr. Sabine Brummel, phone: +49 (0)5251-5201-145, e-mail:
sbrummel@teamwork.de for more information.


=====================
N E T H E R L A N D S
=====================


KPN NV: Reports EUR 7.5BB Net Loss in 2001
------------------------------------------

Royal KPN reports a net loss after taxes of 7.495 billion euros
(2000: profit of 1.874 billion euros). Earnings per share
decreased from 1.90 euros in 2000 to -5.88 euros in 2001.

Exceptional Items
KPN's net result was strongly affected by exceptional items.
Exceptional items of in total 6.1 billion euros were charged
during the year.

Individual components contributing to this total include a non
cash goodwill impairment of 13.7 billion euros in respect of E-
Plus, a non cash release of the exchange right of BellSouth of
6.8 billion euros and a provision of 676 million euros (net after
tax 439 million euros) for restructuring and redundancy.

Net result excluding exceptional items Excluding exceptional
items KPN reports a net loss of 1.410 million euros (2000: net
loss of 626 million euros).

2002 Outlook
In accordance with the strategy of focus on cash and margin the
Board of KPN has issued guidance for the current year to December
2002 as follows:

-Single digit revenue growth
-Double digit EBITDA growth
-Capex reduced by 25% to 2.2 billion euros
-Positive free cash flow
-Year end net debt target of approximately 14.9 billion euros

Highlights
KPN's underlying performance in Q4 2001 reflects the shift in
emphasis towards cash generation in the core businesses. Results
for the full year 2001 excluding exceptional items were:

Operating revenues increased by 10.8% to 12.4 billion euros
EBITDA increased by 5.5% to 3,589 million euros
Negative operating free cash flow of 384 million euros
represented an improvement of 1.3 billion euros over the year
2000
Capital expenditure reduced by 23% to 2.9 billion euros
Net debt fell from 22.0 billion euros to 15.7 billion euros,
after 4.8 billion euros net equity fundraising and non-core asset
disposals

Results Excluding exceptional items Including exceptional items
(amounts in millions of euros)
                  2001    2000   % Q4'01 Q4'00    %   2001   2000
Operating revenues
                12,362 11,158 10.8 3,114 3,247 -4.1 12,859 13,511
Operating expenses
                 8,773  7,755 13.1 2,170 2,333 -7.0  9,478  7,755
EBITDA           3,589  3,403  5.5   944   914  3.3  3,381  5,756
Depreciation     2,472  2,002 23.5   742   594 24.9  2,472  2,002
Amortisation     1,270  1,037 22.5   345   340  1.5 15,345  1,037
Operating profit/loss
          (EBIT)  -153    364       -143   -20     -14,436  2,717

Financial income and expenses
                -1,317   -906       -297  -193       5,468   -906
Taxes             -213   -318         73    52         -11   -318
Share in income from participations
                    23    102        -16    21         -81    249
Minority interests 250    132         68    87       1,565    132
Net income      -1,410   -626       -315   -53      -7,495  1,874
Capital expenditure                                  2,949  3,847

KPN Mobile made the greatest contribution to the growth of
operating revenues (65%; 778 million euros of the total increase
of 1,204 million euros). An increased number of subscribers
produced a higher traffic volume.

Furthermore, the consolidation effects of E-Plus and KPN Orange
contributed to the increase in revenues. The revenues were lower
in Q4 2001 than in Q4 2000, due to non-recurring year-end
adjustments, mainly caused by lower own work capitalised at
Network Construction and accounting alignment at KPN Orange (full
control acquired in 2001).

The adjustment at KPN Orange had no effect on EBITDA, whereas the
speed of the reduction of the capacity usage at Network
Construction for investment projects had negative EBITDA effects.

Depreciation increased mainly due to a higher average asset base
in 2001 compared to 2000 and consolidation effects in KPN Mobile
(E-Plus and KPN Orange).

Fixed network services
Excluding exceptional items  2001   2000  Q4 2001  Q4 2000
Operating revenues          5,909  5,490    1,473    1,451
EBITDA                      2,176  2,484      518      643
EBIT                        1,074  1,477      218      369

Fixed network services increased sales by 419 million euros, a
rise of 7.6%. Despite a deterioration of the national wholesale
market, Carrier Services boosted its sales by 477 million euros,
mainly through higher transit traffic volumes. Fixed telephony
sales decreased by 77 million euros due to lower line rental
revenues and shrinking traffic revenues.

A decreasing number of PSTN lines and the effect of price
reductions for core metered services more than offset incremental
revenue gains from the growth in ISDN lines and higher traffic
volumes through increasing use of the Internet. Sales of
wholesale broadband products decreased, mainly because of sharp
price erosion in the market.

The margin on fixed network services decreased because of lower
prices and significant changes in the product mix, which were
reflected in higher network capacity costs. As a result of
determined pressure on costs, the margin erosion of fixed network
services was stopped in the fourth quarter of 2001 for which an
EBITDA margin of 35.2% was recorded.

The 26% full-year increase in Internet minutes included fourth
quarter growth of only 8.7%. The Broadband Networks business unit
had installed 138,000 Mxstream lines by 31st December 2001.

KPN Mobile
Excluding exceptional items 2001   2000  Q4 2001  Q4 2000
Operating revenues         4,327  3,549    1,087    1,038
EBITDA                     1,159    660      347      154
EBIT                        -622   -709     -132     -275

Customer numbers in the Netherlands, Germany and Belgium advanced
from 12.1 million at year-end 2000 to 13.7 million at year-end
2001. The expanded customer base resulted in more mobile traffic
and drove a growth of sales by 778 million euros (up 22%) to
4,327 million euros in 2001. The consolidation effects of E-Plus
and KPN Orange contributed to the increase in revenues.

EBITDA increased by 499 million euros (up 75.6%), from 660
million euros to 1,159 million euros. A refocused market strategy
adopted in April 2001, with a shift in emphasis from market share
to a higher value per customer, led to a substantial rise in
EBITDA in Germany. In the fourth quarter of 2001, E-Plus
stabilized its EBITDA margin at 29.5% by a slightly lower market
share of 13.3%.

In the Netherlands, KPN Mobile maintained its position as market
leader with a 42.8% share of the market with an EBITDA margin of
42.7%. In February 2001, KPN Mobile acquired the remaining 50% of
shares in KPN Orange in Belgium. In March 2001, KPN Orange was
awarded a UMTS license for 150 million euros.

A co-operation agreement between E-Plus and Group 3G announced in
September 2001 provides for the roll-out of a UMTS network in
Germany. In the Netherlands a memorandum of understanding was
signed with Telfort to investigate similar co-operation.

In November 2001, KPN Mobile acquired an i-mode license from NTT
DoCoMo for the Netherlands and Belgium, followed early February
2002 by a license for Germany. This mobile data service developed
by partner NTT DoCoMo has been introduced in Europe starting in
Germany in March 2002. It will be rolled out initially by means
of GPRS and later via UMTS. Contracts have already been signed
with more than 100 content providers.

Data/IP
Excluding exceptional items 2001   2000  Q4 2001  Q4 2000
Operating revenues         1,627  1,386      396      412
EBITDA                       178     91       48       31
EBIT                        -125    -74      -47      -25

Data/IP revenues went up by 241 million euros (up 17.4%) from
1,386 million euros in 2000 to 1,627 million euros in 2001.

The principal drivers were the Data Services, Service Integration
and Enterprise Solutions business lines in the Benelux countries
and the international growth of KPNQwest.

KPNQwest was consolidated proportionately until 30th November
2001. After the sale of 20 million shares to Qwest in November
2001, KPN holds 39.9% interest in KPNQwest, which is no longer
consolidated.

The EBITDA growth at Data Services in the Benelux countries came
mainly from an increase in digital lines with higher margins,
while the number of analogue lines decreased. CityRing revenues
increased by 108% in 2001; the number of CityRings increased from
40 to 43 during the course of the year.

ICM
Excluding exceptional items 2001 2000 Q4 2001 Q4 2000
Operating revenues           786  663     241     191
EBITDA                       -30  -87      25     -23
EBIT                        -152 -152     -35     -42

The consolidation of SNT as from March 2000 and its acquisitions
in 2001 (Avelange, Telia/DRS and ATOS) generated an increase in
sales of 123 million euros (up 18.6%) to 786 million euros.

Revenues of the Internet Service Providers increased as a result
of the rising number of active Internet users, sales of ADSL
lines and an increase in the total number of online hours.

The total number of registered Internet subscribers increased
from 2.1 million in 2000 to 2.9 million in 2001. Internet
activities in Germany were terminated in September 2001.

Other
Excluding exceptional items 2001   2000  Q4 2001  Q4 2000
Operating revenues         1,528  1,551      385      393
EBITDA                       106    255        6      109
EBIT                        -328   -178     -147      -47

The 23 million euros decrease in sales in the "Other" segment
reflects the combined effect of 29 million euro lower revenues at
Business Communications and 44 million euro lower revenues from
other activities (mainly because of lower internal capital
expenditure within the KPN group). Xantic increased its 2001
sales by 50 million euros, mainly due to consolidation effects.

The Ebitda decrease was mainly due to significant under capacity
in network construction operations (Netwerk Bouw).

Goodwill
In addition to the regular amortisation charge, KPN recognised
non-cash impairment charges of 14,113 million euros in 2001. This
amount is attributable to E-Plus (13,701 million euros), Cesky
Telecom (182 million euros), Hutchison UK (135 million euros) and
other participating interests including group companies and joint
ventures (95 million euros).

Exchange right
KPN acquired the remaining 22.51% of E-Plus from BellSouth. In
exchange BellSouth received 234.7 million newly issued ordinary
shares of Royal KPN representing a fair market value of 1,253
million euros (based on the closing price on March 13 on Euronext
Amsterdam). BellSouth surrendered its existing warrant on KPN
shares, all of its rights regarding KPN

The exchange right as recorded on the balance sheet of KPN, as at
31 December, 2000 amounting to 7,560 million euros, will
therefore be valued at the fair market value of 712 million euros
which will result in a non cash incremental financial income for
2001 of 6,848 million euros.

Reorganization
KPN reached agreement with the trade unions and works council
towards the end of 2001 to reduce the total workforce by a
maximum of 5,280 employees.

KPN managed to limit the number of involuntary redundancies to
approximately 2,900. This was possible through a voluntary two-
year pay freeze accepted by the remaining personnel, a reduction
of management salaries and approximately 2,300 voluntary
redundancy packages for employees older than 54 years.

This resulted in a restructuring charge in 2001 of 676 million
euros (net after tax approximately 439 million euros). By year-
end 2001, KPN in the Netherlands has reduced its temporary staff
by 5,310 and reduced its permanent staff by 550 (through
attrition in 2001) compared to June 2000.


KPN NV: Will Buy Back 6.05% Bonds to Cut Debt
---------------------------------------------

Royal KPN N.V. on Monday, March 18 invited holders of the 1.5
billion euro 5.75% Step-up Notes 2000 due June 2003 (currently
paying 6.05%) with maturity June 13, 2003 to tender the notes
that are currently outstanding.

The offer is part of KPN's programme to manage and reduce its
outstanding debt position, use its existing cash position in a
prudent manner and improve its debt maturity profile.

KPN has commenced a modified Dutch Auction tender offer for the
buyback. Noteholders whose offers are accepted will receive the
purchase price plus accrued interest to, but not including, the
settlement date (April 3, 2002).

The tender offer will expire at 17:00 hours, Central European
time, on March 26, 2002, unless earlier terminated, extended or
amended. No later than 17:00 hours, Central European time, on
March 25, 2002, KPN will announce a maximum spread resulting in a
minimum price that will be paid for the Notes.

Noteholders may submit competitive or non-competitive offers. In
any competitive offer, the Noteholder must submit the offer on
the basis of a spread over the gross redemption yield of the
specified benchmark government bond (which will be the
Bundesobligationen (OBL) 4.5% due March 19, 2003 (#127)).

Alternatively, a Noteholder may submit a non-competitive offer
specifying the principal amount of Notes it wishes to sell
without specifying an offer spread. Non-competitive offers will
be deemed to be made at the maximum spread previously specified
by KPN.

Under the modified Dutch Auction procedure, KPN will accept
tendered Notes in the order of non-competitive offers first,
followed by the highest to lowest offer spreads (lowest to
highest tender prices) specified by tendering Noteholders up to
and including a clearing spread (being the single highest spread
(lowest price) so specified that will enable KPN to purchase its
desired amount of Notes or, if no competitive offers are
tendered, the maximum spread previously specified by KPN).

KPN will pay the same purchase price for all Notes that are
tendered at or above the clearing spread or without any offer
spread specified (non-competitive offers) and accepted, upon the
terms and subject to the conditions of the invitation to tender.

The purchase price will be determined on the day after the
expiration of the offer based on the yield equal to the gross
redemption yield on the applicable benchmark Government bond at
10:00 hours, Central European Time, on that day plus the
determined clearing spread.

For more details, the terms and conditions of the invitation to
tender will be summarised in announcements to be published by KPN
in La Tribune Desfosses, the Financial Times, Officiele
Prijscourant and Het Financieele Dagblad and will be set out in
detail in an information memorandum dated March 18, 2002.

Subject to applicable law, KPN may, in its sole discretion, waive
any condition applicable to any offer or terminate, extend or
otherwise amend its invitation to tender.

Noteholders will be able to participate in the invitation to
tender via CSFB's web site, http://primedebt.csfb.com/KPNtender
upon providing appropriate evidence of their status as holders
and confirming that they are not located in the United States or
are a U.S. person.

Copies of all relevant documents related to the offer may be
obtained from the web site or from Deutsche Bank AG London, which
has been appointed as tender agent.

Additional information regarding the terms of the invitation to
tender, including all questions relating to mechanics, may be
obtained by contacting the Dealer Manager, Credit Suisse First
Boston (Europe) Limited at +44 (0) 207 883 5423 / 6748.  The
Tender Agent is Deutsche Bank AG London and may be contacted at
+44(0) 20 7547 1082. Copies of the Information Memorandum can be
obtained free of charge at Allen & Overy, Apollolaan 15, 1077 AB
Amsterdam at + 31 20 674 1635.

This announcement is not an offer to purchase, a solicitation of
an offer to purchase, or a solicitation of an offer to sell
securities, with respect to the Notes. The tender offers will
only be made pursuant to the terms set out in the information
memorandum.

The invitation to tender is not being made within the United
States or to U.S. persons (as defined in Regulation S under the
United States Securities Act of 1933, as amended).

KPN is a telecommunications company with core business activities
which include: mobile communications; fixed network and Internet
services and IP/Data services. KPN focuses on the Benelux-
countries and Germany.


KPN NV: Acquires Full Ownership of Contrado
-------------------------------------------

Royal KPN NV, the telecom group based in The Hague, and U.S. IT
service provider Perot Systems Corporation, have reached an
amicable agreement under which KPN will become the sole owner of
Contrado, the joint venture the two companies established in
August 2000.

The joint venture did not meet the expectations of KPN and Perot
Systems because of the radically changed market conditions in the
ICT sector.

Under the terms of the agreement, KPN will take over Perot
Systems' share in Contrado. Contrado will remain an independent
private limited company. This agreement is currently under review
by the Works Council and is pending the Council's approval.

During 2001, Perot Systems began making plans to exit this
activity and included the impact of this action in the financial
projections for 2002 it published in its fourth quarter 2001
earnings release dated February 12, 2002.

Contrado was set up to develop and implement applications capable
of communicating with customers. The products were focused
principally on use within KPN and its subsidiaries.

Contrado will remain an important supplier of KPN for
applications of this kind. KPN will continue Contrado's business
activities in full. The transaction will not have any
consequences for the number of Contrado's employees.


KPN NV: KPNQwest Completes Ebone & GTS Acquisition
--------------------------------------------------

KPNQwest, the leading pan-European data communications and
hosting company, announced Monday its completion of the
acquisition of broadband service provider Ebone and Central
Europe businesses of Global TeleSystems, Inc and Global
TeleSystems Europe B.V. (collectively "GTS"), pursuant to a share
purchase agreement between GTS, GTS European Telecommunications
Corp. and KPNQwest.

As part of the acquisition, KPNQwest has issued approximately 211
million euros of 10% convertible bonds due 2012 to former GTS
bondholders and assumed an approximate 435 million euros of net
bank debt and capital lease obligations.

The acquisition consolidates KPNQwest's position as the leading
IP data communications provider in Europe. The new combined
company will operate a 25,000-kilometre network with connection
to 60 major European cities.

KPNQwest was formed as a joint venture between debt-labden Dutch
telecom group Royal KPN and US-based Qwest.


KPN NV: KPNQwest Announces EUR 525MM Senior Credit Facility
-----------------------------------------------------------

KPNQwest's acqusition of Ebone and GTS will require capital and
operating facilities to operate 14 Metropolitan Area Networks
(MANs).

Estimated to total over 600 million euros, the cost is expected
to further exceed its purchase price in 4 years.

To facilitate this transaction, KPNQwest has secured a new senior
credit facility of 525 million euros with a consortium of
financial institutions.

With the new senior credit facility, the company believes that
the newly combined entity is fully funded for all of its capital
and operating cash needs.

Of the 525 million euros, 50 million euros may be used to
purchase Nortel equipment, 225 million euros will be used to
refinance the existing GTS debt and the remainder will be
available for general corporate purposes.

The interest rate is calculated at a spread of 3.50% over
interbank rates. The spread will ratchet down to 1.50% with
decreasing leverage. The current applicable rate has been set at
6.88%.

The senior credit facility requires that the combined company
meet certain financial covenants that will be tested on a
quarterly basis.

KPNQwest was advised by Schroder Salomon Smith Barney.

KPNQwest is pan-European data communications and hosting company
which provide a full range of carrier and corporate networking
solutions and Internet services across 18 countries in European.

The company owns and operates the EuroRings and KPNQwest
CyberCentres. For more information please visit the KPNQwest
website at: www.kpnqwest.com

For further information please contact:
Piers Schreiber
Corporate Communications - KPNQwest
Tel: +31 23 568 7612
Email: piers.schreiber@kpnqwest.com

Jerry Yohananov
KPNQwest Investor Relations
Tel: +31 23 568 7602
Email: jerry.yohananov@kpnqwest.com


===========
N O R W A Y
===========


BROVIG ASA: Completes Sale of Brovig RDS Unit for $5MM
------------------------------------------------------

Brovig ASA (formerly known as Brovig Offshore ASA) confirms that
its previously announced sale of the consultancy business of
Brovig RDS Ltd. to Helix Well Technologies Ltd has been
completed.

The transaction generates approximately $5 million to Brovig ASA
including realized working capital. The divestment is considered
as a sale of 'trade and assets'.

Brovig provides well-testing and marginal oil production services
to the oil industry entirely based on special purpose ships.

The company owns and manages offshore special-purpose vessels,
which offer well-testing, well clean-ups, extended well-tests,
early production and marginal field production.

Early this month, according to the Troubled Company Reporter
Europe, the Oslo-based company's 2001 financial results posted
total operating revenues of NOK236.9 million, compared to NOK
287.8 million in 2000. The revenues were acquired through the
activities of the company's subsidiary Brovig RDS Ltd., and to a
small extent, from oil production on the OBE field.

Total operating expenses were NOK331.2 million, compared with
NOK325.7 million in 2000.

Last month, Brovig announced it was granted postponement of debt
installments aggregating $3.85 million from its mortgage banks
until June 30, 2002 for loans aggregating $59 million, as well as
postponed interest payments on its bond loan of NOK178.5 million
until June 30, 2002 to preserve the working capital.

For further information, contact Hans-Jorgen Wibstad, Managing
Director, at telephone + 47 23 100 900.


===========
P O L A N D
===========

ELEKTRIM SA: Majority Owner Will Exit Poland via Citigroup
----------------------------------------------------------

Vivendi Universal, majority owner of Poland's largest mobile-
phone operator, will exit Poland saying it had agreed to sell its
stake in Elektrim's telecommunications arm, Elektrim
Telekomunikacja, to financial investors, the Financial Times said
Friday.

Vivendi announced it had signed a memorandum of understanding
with a consortium of unnamed investors led by Citigroup
Investments. Pending "the satisfaction of a number of
conditions," final agreements will be signed within the next two
months, Vivendi said.

Elektrim Telekomunikacja holds 51% in Polska Telefonia Cyfrowa,
Eastern Europe's leading mobile phone company. Deutsche Telekom,
which is also seen as a possible buyer for the stake, is the
owner of the 49% remaining share.

Speculations put the value of the 51% stake at EUR700 million.
Citigroup is reportedly willing to buy the entire stakes for EUR1
billion.  It is not known what the Citigroup plans to do with the
share.

At the moment, the Citigroup-led consortium counts as its members
the Dutch company Eastbridge and Warsaw's Domy Towarowe Centrum.


ELEKTRIM SA: Sells 4MM Shares to Multico
----------------------------------------

The Management Board of telecom and power conglomerate Elektrim
S.A. -- http://www.elektrim.pl/-- announced on March 18 that
Warsaw-based company Multico Sp. z o.o. acquired 4,250,057 shares
of Elektrim S.A., which represents 5.07% of Elektrim's share
capital.

This number of shares entitles to hold 4,250,057 votes
representing 5.07% of the total number of votes at any of
Elektrim S.A.'s shareholders meeting.


===========
S W E D E N
===========


LM ERICSSON: Authorities Push for Probe Into Consultant Payout
--------------------------------------------------------------

Sweden's Economic Crimes Bureau is reportedly conducting a probe
on Ericsson of an employee who had committed a crime by providing
authorities with a set of complex and difficult-to-trace
transactions.

According to The Times, the investigation is related to a SKr2.5
billion-payout to 33 consultants in 1999. Tax authorities had
earlier rejected the treatment of the payment.

Authorities believe that the consultants were middlemen and that
Ericsson is refusing to reveal the ultimate recipient of the
funds.

Bureau chief prosecutor Lage Carlstrom says the probe is
necessary as tax authorities believe the company "seriously
hindered" the tax inquiry by using questionable invoices.

An Ericsson spokeswoman told the paper that the company is
prepared to defend its accounting practices, saying the
allegations had "no grounds."

Ericsson is the latest European firm to be embroiled in a tax
scandal.  Recently, engineering group ABB was also put in a bad
light over a SwFr233 million-pension awarded to two executives.


===========================
U N I T E D   K I N G D O M
===========================


ANTHUR ANDERSEN: Whitehall Mulls Ban on Gov't Work
--------------------------------------------------

Talks that the shredding of documents related to the Enron
scandal extended up to London has The Whitehall Partnerships, a
joint venture company acting as debt financer for London &
Regional Properties, reviewing whether to allow Andersen to
tender for U.K. government contracts, the Times of London says.

According to a report, Whitehall is now weighing the issue after
the U.S. Department of Justice banned the US practice last week
from taking on new government contracts, after indicting the firm
for obstruction of justice.

Andersen, however, says the U.K. practice is "blameless," the
report says.

Meanwhile, the report says Deloitte Touche Tohmatsu is now in
talks with the U.K. unit, this after the former failed last week
to move forward with the acquisition of the entire global
operations due to the difficulty of isolating Andersen's
beleaguered U.S.. practice.

The U.K. practice is the largest outside the U.S. with 493
partners and revenues of about GBP600 million last year.


ARTHUR ANDERSEN: German Unit Wants Out of Global Partnership
------------------------------------------------------------

Two hundred fifty German partners of Arthur Andersen have
reportedly decided to secede from the global partnership and
commence talks with possible partners immediately.

Citing unnamed sources, Frankfurter Allgemeine Zeitung says the
partners held a meeting in Frankfurt Saturday.  According to the
report, the partners had decided, among others, to authorize
management in Germany to terminate its membership from the
international organization Arthur Andersen & Co. Societe
Cooperative in Geneva.

In addition, the report says the partners had also tasked
Chairman Christoph Gross to hold talks with German market-leading
auditor and accountant KPMG and Deloitte & Touche Deutschland,
formerly known as Wedit Wollert-Ellmendorff Deutsche Industrie
Treuhand of Munich.

The report, however, says the break-up from the global
partnership would not be immediate, as the German operations
would like to take the step together with other national
divisions.

So far, Arthur Andersen Spain is the only national division that
has revoked its membership from the international tie-up,
effecting the move last Friday.

Mr. Gross says pressure is mounting for the unit to make swift
negotiations as other auditing and accounting companies have
started headhunting for Arthur Andersen partners.

However, he said, the overwhelming majority of the partners hoped
for a united changeover to a new organization rather than
individual agreements.


CONSIGNIA: Hays Settles Row Over Service, Pays GBP5.5 million
-------------------------------------------------------------

A long legal tussle between Hays and Consignia has ended with an
out-of-court settlement that will pay GBP5.5 million to the
latter, representing cost and damages, the Scotsman reports.

According to the paper, the support services group opted to
settle the row without admitting that its position was flawed.

"We didn't think we were going to lose the case.  But there comes
a point when you have to look at the whole commercial balance of
these things. We're glad that we can now concentrate on the
things we're good at.  Litigation isn't one of them," Hays DX
managing director Neil Tregarthen told the paper.

Consignia, formerly the Post Office, brought Hays to court in
June last year, claiming that the company had been offering
postal services that infringed both the Postal Services Act 2000
and the British Telecommunications Act 1981.

Hays has been operating Document Exchange, a business to business
postal service, since 1975, an operation which now processes over
800,000 items of mail each day.

Apart from this division, the firm began delivering travel
documents and insurance cover slips last year, which Consignia
objected to, particularly in light of the new legislation.

The Postal Services Act states that any company providing a mail
service costing less than 1 pound per letter, or for letters
weighing less than 350g, needs a license from the postal
regulator.

Hays plans to compete with Consignia once the postal market is
opened up to further deregulation.  Mail regulator Postcomm had
earlier bared a plan to open up 30% of Consignia's business from
April, 60% from 2004 and the entire mail market by 2006.

Consignia is similar opposing these proposals.


CORUS GROUP: Preliminary 2001 Report Records Loss of GBP 419MM
--------------------------------------------------------------

The London-based steel manufacturer Corus Group releases its
preliminary 2001 report which records, after taking account of
tax and minority interests, a net loss of 419 million pounds.

Net interest payable of 108 million pounds was broadly unchanged
from the level of the previous year. Operating loss of 385
million pounds was incurred for the year translated into a loss
before interest of 354 million pounds.

The group's turnover amounted to 7,699 million pounds in 2001.
The trend through the two half years saw a fall from 4,040
million pounds in the first half to 3,659 million pounds in the
second half year.

The Group operating loss of 385 million pounds comprised losses
in carbon steel of 446 million pounds partially offset by
operating profits of 58 million pounds in aluminium and 3 million
pounds in stainless steel.

The trend through the two half years was influenced by the impact
of exceptional items, with a 47 million pounds charge in the
first half and a 39 million pounds credit in the second half.

Excluding exceptional items, the second half operating loss
amounted to 228 million pounds as compared with 149 million
pounds for the first half year. Underlying trends, comparisons
and key features are discussed below in the context of carbon
steel, aluminium and stainless steel.

Carbon Steel
In 2001 global economic growth decelerated from some 4.5% to
around 2%, the lowest level in twenty years. Global demand for
steel, excluding China, declined by around 3% during the year
and, in the absence of any meaningful reductions in output, the
problems of oversupply which had been increasingly apparent
during late-2000 progressively worsened.

In addition, the impact of depressed U.S. demand was exacerbated
by the threat of import sanctions, resulting in a sharp drop in
U.S. imports and causing steel to be diverted to other markets.
The pace of falls in selling prices in markets worldwide
accelerated and prices reached very low levels by the end of
2001.

Comparisons of Corus' carbon steel full and half year figures
were significantly impacted by the effects of restructuring and
rationalisation measures through 2000 and 2001.

These measures were focused mainly on addressing the continuing
high levels of losses, particularly in the Group's U.K. carbon
steel flat products operations, against a background of weak U.K.
demand, and a growing and unsustainable level of unremunerative
exports.

On February 1, 2001, Corus announced a wide range of measures
aimed at restoring, over time, the competitiveness of the Group's
U.K. assets. The major focus of these measures was the
restructuring of U.K. flat products, which involved the closure
of 3 million tons of steelmaking and hot rolling capacity.

The restructuring was substantially completed in July 2001, at
which time the consequential changes in product flows became a
key area of attention for business management. Despite inevitable
logistical problems, good progress was made through the rest of
the year.

In the Netherlands, encouraging progress was made in the
commissioning of and, during late-2001, improving the operational
performance of the Direct Sheet Plant. In September, the "World
Class IJmuiden" project was launched, involving a wide-ranging
programme aiming to secure substantial improvements in operating
margins through to the end of 2003.

Carbon steel turnover for 2001 amounted to 6,534 million pounds
and was 7% below the level of the previous year. Excluding
distribution and further processing (1,433 million pounds) and
other turnover (309 million pounds), carbon steel product
turnover of 4,792 million pounds was 10% lower, reflecting falls
in sales volume and in average revenue per ton.

The trend through the two half years of 2001 saw falls in
turnover, sales volume and average revenue during the second
half, as the effects of the reduction of 3 million tons in annual
UK capacity and of weaker selling prices were reflected in the
figures for the second half.

Excluding the impact of exceptional items, carbon steel operating
costs in 2001 were 4% below the level of the previous year in
contrast to a 9% fall in sales volume as, despite the benefits of
lower employment costs and other cost improvements, the unit
prices of raw materials increased significantly. In terms of
2001, the level of the second half was 6% below that of the first
half, mainly reflecting the combined impact of lower sales
volume, and employment and other cost improvements.

Aluminium
Demand for aluminium products held up reasonably well until the
final quarter of the year, when there was a reduction in the
level of sales of rolled products and extrusions. Total turnover
(1,085 million pounds) was 6% above the level of the previous
year, with the trend through the year being a second half fall of
3% to 533 million pounds.

Operating costs of 1,027 million pounds were 10% higher than the
previous year, mainly as a result of LME- linked price changes on
material and energy costs. In terms of the two half years, there
was a 1% reduction in the second half which mainly reflected
lower LME - linked material prices.

Stainless Steel
With effect from January 22, 2001, Avesta Sheffield ceased to be
a 51%-owned subsidiary of Corus. On that date, AvestaPolarit was
formed by the merger of Avesta Sheffield with the stainless steel
activities of Finnish producer, Outokumpu. Prior to January 22,
Avesta Sheffield made an operating profit of 3 million pounds.

Despite an extremely difficult trading environment AvestaPolarit
achieved an operating profit during 2001, with Corus' 23%
associate share being a profit of some 10 million pounds.

Profit and Loss Account
The Group operating loss of 385 million pounds for the year
translated into a loss before interest of 354 million pounds. Net
interest payable of 108 million pounds was broadly unchanged from
the level of the previous year and, after taking account of tax
and minority interests, a net loss of 419 million pounds was
incurred.

Cash Flow and Financing
Despite the operating loss of o385m there was an operating cash
inflow of 172 million pounds during the year, the key features
being a reduction in working capital of 309 million pounds and
cash costs of 137 million pounds in respect of restructuring and
rationalisation measures.

There was a net outflow of 130 million pounds on capital
expenditure and financial investments, and a net inflow of 49
million pounds in respect of acquisitions, disposals and the
exchange of business interests in stainless steel.

Net debt reduced by 116 million pounds during 2001, and amounted
to 1,560 million pounds at December 29. Gearing was broadly
unchanged from the half-year position.

On January 31, 2001, Corus arranged a new 2,400 million euro bank
facility which replaced a 1,500 million euro syndicated facility
of Corus and most of the committed facilities of the former
Hoogovens Group.

At December 29, 2001 the Group had 2,445 million pounds in
committed borrowing facilities, of which 761 million pounds was
unutilised.

On January 11, 2002, the Group issued 307 million euros of
unsubordinated bonds, due 2007, convertible into shares of Corus
Group plc. Some 300 million euros of the proceeds were used to
pay down and cancel part of the 2,400 million euro facility
described above.

Employees
As of December 29, 2001, Corus employed 52,700 as compared to
64,900 at 30 December 2000.

Reduction during the year of 12,200 employees included the
transfer of some 6,600 jobs to AvestaPolarit, with the balance of
5,600 mainly relating to continuing employee productivity and
improvement measures.

Further reductions of some 4,000 jobs are scheduled to be
implemented through to 2004 as a result of efficiency improvement
measures announced over the past two years.

Accounting Policies
There have been no new U.K. standards issued by the Accounting
Standards Board since the last Report & Accounts. However three
standards were issued in late-2000, but application was not
mandatory in 2000.

FRS 17 'Retirement Benefits' requires any surplus or deficit on
the Group's pension schemes to be recognised in the balance
sheet. The two principal pension schemes Corus operates are in
significant surplus, which will result in an additional asset
being recognised.

On December 29, 2001, Corus estimates this asset to be 865
million pounds after taking account of an estimated related
deferred tax liability of 385 million pounds. FRS 17 is not
mandatory for the current year and has not yet been adopted,
although the required transitional disclosures are being made in
the Report & Accounts.

FRS 18 'Accounting Policies' sets out the principles to be
followed in selecting accounting policies and related estimation
techniques and measurement bases, and related disclosures. FRS 18
has been adopted by Corus in 2001 but the adoption has no effect
on the results or balance sheet of the Group.

From January 1, 2001 the Group has adopted the new accounting
standard FRS 19 'Deferred Tax', which requires full provision to
be made for deferred tax arising from timing differences between
the recognition of gains and losses in the financial statements
and their recognition in tax computations.

In adopting FRS 19, the Group has chosen to discount deferred tax
assets and liabilities. The comparative figures for all prior
periods have been restated to reflect the impact of FRS 19. The
change of accounting policy also affected amounts included in
respect of subsidiary goodwill and minority interests.

Corus chairman Brian Moffat announced that on the forthcoming
Annual General Meeting, Nicholas Goodison, Aarnout Loudon and
Hendrikus de Ruiter will be retiring from the Board. Their
replacements will be announced in due course.

Anthony Pedder serves as the steel manufacturer's chief executive
officer.


CORUS GROUP: Sells Aluminum Units After Another Loss-making Year
----------------------------------------------------------------

Steelmaker Corus Group Plc announced early this week that it will
sell its aluminum units, after the group ended in the red for the
third consecutive year.

According to Bloomberg, the company will begin talks with
potential buyers immediately and expects the sale to be completed
by the summer.

"We're very much a small player [in aluminum].  We've got very
good assets, but we just don't see that we can keep pace with
industry leaders," CEO Tony Pedder told Bloomberg.

The aluminum units, which accounted for 14% of the company's
sales last year, include factories in Belgium, Canada, China,
Germany and the Netherlands.

The group recently announced a loss for last year of GBP419
million or 13.42 pence a share, half the GBP940 million or 30.19
pence it lost in 2000. The company will not pay a 2001 dividend.

"On the face of it, selling the aluminum business and raising up
to a billion pounds sounds good. The only thing I would say is
that the aluminum business was the only really profitable
business," Mark Wade, a credit analyst at Lehman Brothers in
London, told Bloomberg.

UBS Warburg analyst Yasuhiro Yamaguchi values the aluminum units
at between GBP800 million and GBP900 million.  He said the
division will likely be gobbled up by Pechiney SA and Alcoa Inc.

Meanwhile, the company says it will continue with a program to
cut 11,000 jobs in the U.K. and another 1,500 Dutch jobs over
three years to reduce costs. About 4,000 jobs remain to be cut,
the company said.


CORUS GROUP: Will Not Hold Back Plan to Cut 4,000 Jobs in U.K.
-------------------------------------------------------------

Europe's second-largest steel producer Corus Group Plc will push
ahead with its planned job cutbacks, as the company recorded its
third consecutive losing year.

According to the company, the 4,000 jobs that will be cut in the
next two years will go ahead as part of the 10,000 job losses
announced when British Steel merged with Dutch group Hoogovens in
1999.  Most of these posts will be in Britain.

The company said the cutback is needed now more than ever as
losses due to weak prices and tough markets are expected to rise
with the recent increase in U.S. steel tariffs.

Like most European steel producers, Corus fears the tariff will
make emerging market producers like Turkey and Russia dump cheap
steel destined for North America in Britain, knocking down prices
and hurting local suppliers like the company.

Corus employed 52,700 workers at the end of last year.


ENODIS PLC: Shareholders Give Nod to Rights, Bond Issues
--------------------------------------------------------

The 71.5-million-pounds 3-for-5 rights issue of debt-laden food
equipment maker Enodis Plc received the go-ahead from
shareholders Monday, the Financial Times says.

The rights issue, including a 100-million-pound-bond release to
be priced Tuesday, was approved at an extraordinary meeting, says
the report.  The two issues are part of a refinancing exercise,
which has seen Enodis agreeing arrangements worth 470 million
pounds.

Standard & Poor's rates Enodis a double B minus corporate credit
rating, and the 10-year 100-million-pound bond, which is managed
by Credit Suisse First Boston and Royal Bank of Scotland, a
single B rating.

S&P says the rating is constrained by the group's exposure to the
depressed North American market, "limited earnings visibility,
and aggressive financial profile". Moody's, on the other hand,
assigns a B2 rating to the bond.

Enodis is struggling to get by with the slump in the US market
and high gearing -- 200% before the rights issue -- since its
GBP442 million acquisition in 1999 of Scotsman, a US
refrigeration product manufacturer.

The company, which sells cookers to fast-food companies and
display cabinets to supermarkets, booked net debt of GBP376
million at the end of December, compared to GBP439 million a year
ago.

CEO Andrew Allner said last month he wants to reduce debt to 200
million pounds by September 2003 by selling 30 million pounds
worth of assets this year.


P&O PRINCESS: DTI Endorses Carnival Bid to Competition Experts
--------------------------------------------------------------

The U.K.'s trade and industry department has recommended the
referral of Carnival's bid for P&O Princess to competition
authorities, over concerns that a merger might stifle supply of
cruise holidays.

In recent announcement, the department said it had advised the
Director General of Fair Trading, a unit of the European
Commission, to consider whether the combination violates
competition rules.

The Commission has until April 16, 2002 to decide whether to
refer this aspect of the deal to the authorities, the Financial
Times said.

Last month, shareholders of the British cruise operator tabled a
vote on a Royal Caribbean bid to allow competition authorities to
consider Carnival's bid.


PPL THERAPEUTICS: Delay on Emphysema Drug Test Cuts Share Value
---------------------------------------------------------------

PPL Therapeutics of Dolly-the-Sheep fame announced recently a
further delay on clinical trials for an emphysema treatment
carried out with Bayer AG, the Times says.

According to the company, the third phase of trials on AAT was
put on hold in December at the suggestion of the US Food and Drug
Administration.

The agency had wanted more details on why a small number of
patients who were administered with recAAT through an inhalation
device during phase II trials had failed to complete the study,
the report says.

The company says it has already conducted further analyses during
the past few months but the results remain inconclusive, leaving
it with little choice but to delay the start of phase III trials.

News of the delay battered the genetic firm's share Monday, which
fell to a new low.  PPL shares gave up 7p at 44p.

Broker Deutsche Bank has stricken the company's share from its
recommended list after anticipating the delay to last 18 months.
Regulatory approval for AAT is not expected anytime before 2007.

                                     **********

       S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
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USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam,
Larri-nil Veloso and Maria Lourdes Reyes, Editors.

Copyright 2001.  All rights reserved.  ISSN 1529-2754.

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