/raid1/www/Hosts/bankrupt/TCREUR_Public/021127.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, November 27, 2002, Vol. 3, No. 235


                              Headlines


* C Z E C H   R E P U B L I C *

SKODA HOLDING: Admits Asset Sales to Refocus Operations

* F R A N C E *

SCOR GROUP: Fitch Maintains SCOR's Ratings on Watch Negative
VIVENDI UNIVERSAL: Asset Sale to Spark Interest in Other Units
VIVENDI UNIVERSAL: Sells Half of Stake in Vivendi Environnement
VIVENDI UNIVERSAL: Obtains EUR1 Billion Credit Facility

* G E R M A N Y *

COMMERZBANK AG: Fitch Lowers Ratings for Supported Issues
DEUTSCHE TELEKOM: New Head Plans Management Shake-up

* I T A L Y *

FIAT SPA: Disagreement Halts Plan to Layoff Workers
TELECOM ITALIA: TIM Board of Directors Approve Results
TELECOM ITALIA: Board Approves Results for Third Quarter

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

AEGON NV: Wishes to Acquire KPN and TPG Pensions' Administrator

* P O L A N D *

ELEKTRIM SA: Supervisory Board Calls Urgent Meeting

* S W E D E N *

LM ERICSSON: Signs Outsourcing Contract With Brasil Telecom

* U N I T E D   K I N G D O M *

ABBEY NATIONAL: Standard & Poor's Revises Outlook to Negative
BRITISH ENERGY: Government Still Undecided Over Fate
COLT TELECOM: Court Prevents Highberry From Obtaining Documents
EQUITABLE LIFE: Announces Resignation of Executive Board Director
LEICESTER CITY: Regulators Take Shares Off the Market
MYTRAVEL GROUP: Postpones Reporting of Preliminary Results
NORTH ATLANTIC: Announces Sanction of Scheme of Arrangement
SCOTTISH MUTUAL: S&P Lowers Ratings to 'A-', Outlook Negative
THE BIG FOOD: Announces Purchase of Senior Notes
TXU EUROPE: S&P Lowers Rating on TXU Europe Funding Notes to 'D'


===========================
C Z E C H   R E P U B L I C
============================


SKODA HOLDING: Admits Asset Sales to Refocus Operations
----------------------- -------------------------------
Skoda Holding spokesperson, Karel Samec, said the engineering
company plans to sell assets to concentrate only on sectors in
which it occupies the leading position on world markets.

The operations that will be sold include part of the Controls
Division assets of SH subsidiary Skoda Energo, and also
production unit Mala Kovarna belonging to Skoda Steel, Prague
Business Journal reports.

According to a TCR-Europe report last month, the holding
engineering company needs to find a strong partner within the
year to boost its operating capital if it were to continue
operating.

The company has an obligation to redeem by the end of March 2003,
CEK3.6-billion loan granted to finance restructuring in 2000.


===========
F R A N C E
===========


SCOR GROUP: Fitch Maintains SCOR's Ratings on Watch Negative
------------------------------------------------------------
Fitch Ratings maintains SCOR's rating on Watch Negative.
Currently, SCOR Group's Insurer Financial Strength rating remains
at 'BBB', its Long-term rating stands at 'BBB-'and its Short-term
rating is fixed at 'F3'.

While affirming SCOR's "back on track" recovery plans, the rating
agency, also warned that the group faces significant execution
risk in strengthening its business and financial positions.

The rating agency warns, "if the equity raising process should
not be consistent with the new strategic orientation, including
the Group's risk profile, ratings might be downgraded further."

If the equity raising, however, is consistent with the
orientation, the ratings are likely to be affirmed.

Fitch indicated that the group's current rating are supported,
among others, by the group's position as a top 10 global
reinsurance operation, focus on areas that produces adequate
returns in the near term, planned reduction in risk undertaken
for 2003 and the expected rise in premium rates and tightening of
terms and conditions on the remaining portfolio.


VIVENDI UNIVERSAL: Asset Sale to Spark Interest in Other Units
--------------------------------------------------------------
Investors believe that Vivendi's entertainment and phone services
assets--business which are not being sold by Chief Executive
Jean-Rene Fourtou--might attract "offers he can't refuse," says
Bloomberg.

Vivendi recently turned down Marvin Davis' US$15 billion-bid for
its U.S. assets.  The news of the rejection sent the company's
shares 31% higher.  Vivendi's shares were down 82% this year on
worries about the group's ability to repay EUR19 billion (US$19
billion) of debt.

The U.S. division includes the world's top music company, a
Hollywood studio as well as cable channels.  The business itself
is facing pressure, as music sales drop 9% in the third quarter,
and revenues at the group's U.S. movie and television unit fell
24%.

The asset sales currently undertaken is aimed at trimming down
debt and focusing on entertainment and phone services, the assets
investors see as possible targets of uncalled offers.

The report notes that Vodafone Group has earlier offered Vivendi
EUR68 billion for the media and entertainment company's 44% share
in French company Cegetel.  Vivendi is raising money to fund its
own drive to obtain control of Cegetel.

Michael Oehrens, who helps manage about EUR8 billion at SEB
Invest in Frankfurt, including Vivendi, suggests ``The best way
for Vivendi to improve is to see a split of all the divisions.''

Ronald Petitjean, who manages about EUR225 million at Expertise
Asset Management and hasn't owned any Vivendi stock since July,
meanwhile says``The possibility of a breakup and sale of the
company still exists.''


VIVENDI UNIVERSAL: Sells Half of Stake in Vivendi Environnement
---------------------------------------------------------------
Vivendi Universal sold its 20.4% stake, or half of its holdings,
in the waste and water company Vivendi Environnment for GBP1.2
billion.  The media and entertainment group expects to trim down
debt at about GBP8.8 billion by the end of the current year from
the sale.

The buyer of the shares include AGF, Axa, BNP Paribas, Caisse
Nationale des Caisses d'Epargne, Credit Lyonnais, Groupe CM-CIC,
Groupe CNP, Credit Agricole Indosuez, Dexia Credit Local,
Electricite de France, Eurazeo, Generali, Groupama, Mederic
Prevoyance, Societe Generale and the Wasserstein Family Trust.

The deal includes options for buyers to buy Vivendi's remaining
stake before the end of 2004.  If the options are exercised,
Vivendi will no longer hold any shares in the unit within two
years, says the Financial Times.

The transaction will leave 30% of Vivendi Environnement's shares
with a core group of shareholders.  Exercise of the options will
increase the holdings to 50%, the report says.

As ex-CEO Jean-Marie Messier promised not to sell any shares in
the unit before 2003 during Vivendi Enivironnement's flolation in
2000, the new shareholders will be obliged to hold on to the
shares for a year under the terms of the deal, the report says.


VIVENDI UNIVERSAL: Obtains EUR1 Billion Credit Facility
-------------------------------------------------------
French media and entertainment group, Vivendi Universal, is
understood to have reached an agreement with its banks on a EUR1-
billion credit facility instead of a EUR3-billion (US$2.97
billion) bridge facility.

The media giant has no further need for the EUR3 billion bridge
facility according to the Financial Times, as the group was
recently able to sell half of its stake in Vivendi Environnement
and issued options over its remaining shares, raising EUR1.86
billion in the process.

According to the report, Vivendi is also close to securing a
EUR1.3 billion acquisition facility to fund a special-purpose
vehicle for purchasing additional stakes in Cegetel.  The group
has until December 10 to raise EUR4bn to contest an offer by
Vodafone for BT Group's 26% stake.


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


COMMERZBANK AG: Fitch Lowers Ratings for Supported Issues
---------------------------------------------------------
Following rating downgrades for Commerzbank, Fitch Ratings
downgrades the ratings on 22 issues supported by the bank. The
affected bonds and their ratings are listed below. For additional
information, see Fitch's press release dated Nov. 20, 2002 and
available on the Fitch Ratings web site at '
www.fitchratings.com'.

-- Chicago (IL) (Chicago O'Hare International Airport), CP notes,
series 2001A

(AMT) (LOC: Commerzbank AG) to 'F2' from 'F1';

-- Chicago (IL) (Chicago O'Hare International Airport), CP notes,
series 2001B

(non-AMT) (LOC: Commerzbank AG) to 'F2' from 'F1';

-- Chicago (IL) (Chicago O'Hare International Airport), CP notes,
series 2001C

(LOC: Commerzbank AG) to 'F2' from 'F1';

-- Connecticut, State of (CT), 2nd lien special tax obligation
bonds transportation infrastructure purposes, series 1990 series
1 (LOC: Commerzbank AG) to 'A-/F2' from 'A/F1';

-- First Albany Corp. (NY), FAC municipal trust floating-rate
certificates, series 1999-1 (liquidity facility: Commerzbank AG)
to 'AAA/F2' from 'AAA/F1';

-- First Albany Corp. (NY), FAC municipal trust floating-rate
certificates,

series 2001-1 (liquidity facility: Commerzbank AG) 'AA/F2' from
'AA/F1';

-- Harris County (TX), GO CP notes, series A (LOC: Commerzbank AG
& Bank of Nova Scotia) to 'F1' from 'F1+';

-- Harris County (TX), GO CP notes, series B (LOC: Commerzbank AG
& Bank of Nova

Scotia) to 'F1' from 'F1'+;

-- Harris County (TX), GO CP notes, series C (LOC: Commerzbank AG
& Bank of Nova

Scotia) to 'F1' from 'F1'+;

-- Los Angeles Unified School District (CA), (Belmont Learning
Complex) certificates of participation, series 1997A (LOC:
Commerzbank AG) to 'A-/F2' from 'A/F1';

-- Massachusetts Water Resources Authority (MA), multi-modal sub
general revenue bonds, series 1999A (insured: Ambac) (liquidity
facility: Commerzbank AG, Credit Locale de France & The Bank of
Nova Scotia) to 'AAA/F2' from 'AAA/F1';

-- Massachusetts, Commonwealth of (MA), GO refunding variable-
rate demand bonds, series 1998A (liquidity facility: Commerzbank
AG, NY) to 'AA-/F2' from 'AA-/F1';

-- New York City (NY), adjustable-rate GO bonds, series fiscal
1996J-2 (LOC:Commerzbank AG (A-/F2)) to 'A+/F2' from 'A+/F1';

-- New York City Municipal Water Finance Authority (NY), CP
notes, series 1 (LOC: Commerzbank AG, Toronto-Dominion Bank, Bank
of Nova Scotia) to 'F2' from 'F1';

-- New York City Municipal Water Finance Authority (NY), CP
notes, series 3 (LOC: Commerzbank AG, Toronto-Dominion Bank, Bank
of Nova Scotia) to 'F2' from 'F1';

-- Oakland Joint Powers Financing Authority (CA), lease revenue
bonds 1998, series A-1 (insured: FSA) (liquidity facility:
Commerzbank AG) to 'AAA/F2' from 'AAA/F1';

-- Oakland Joint Powers Financing Authority (CA) lease revenue
bonds 1998, series A-2 (insured: FSA) (liquidity facility:
Commerzbank AG) to 'AAA/F2' from 'AAA/F1';

-- Philadelphia (PA), water & wastewater revenue bonds, series
1997B (insured: AMBAC) (liquidity facility: Commerzbank AG) to
'AAA/F2' from 'AAA/F1';

-- Port of Oakland (CA), CP notes, series A & B (LOC: Commerzbank
AG, Los Angeles & Bank of Nova Scotia, NY) to 'F2' from 'F1';

-- Port of Oakland (CA), CP notes, series C (LOC: Commerzbank AG,
Los Angeles & Bank of Nova Scotia, NY) to 'F2' from 'F1';

-- Port of Seattle (WA), sub lien revenue bonds (AMT), series
1999B (LOC: Commerzbank AG) to 'A-/F2' from 'A/F1';

-- Port of Seattle (WA), sub lien series bonds (non-AMT), series
1999A (LOC: Commerzbank AG) to 'A-/F2' from 'A/F1';


DEUTSCHE TELEKOM: New Head Plans Management Shake-up
----------------------------------------------------
Deutsche Telekom's new head, Kai-Uwe Ricke, plans to reshuffle
management in order to strengthen the influence of the group's
operating divisions.

According to FT Deutschland, Mr. Ricke wants to install the heads
of Internet service arm T-Online, technology service division T-
Systems, and mobile unit T-Mobile onto the management board.

The fixed line operator, however, refused to comment, adding that
the board has not yet discussed the matter.

Reuters say rumors of the reshuffling came after Mr. Ricke said
during his appointment that he wanted to give the company's four
divisions more responsibility and greater authority to ensure
that the company "stay[s] as close as possible to the market."

The shake-up will see Chief Financial Officer Karl-Gerhard Eick
becoming deputy CEO, and Personnel Director Heinz Klinkhammer and
fixed-line unit T-Com head, Joseph Brauner, assuming the position
chief operating officer, company sources say.

Max Hirschberger, strategy director and Jeffrey Hedberg, director
for international affairs, as well as deputy CEO Gerd Tenzer will
have to step down, says the report.

The management changes are to implemented starting January, the
report added.


=========
I T A L Y
=========


FIAT SPA: Disagreement Halts Plan to Layoff Workers
---------------------------------------------------
Fiat SpA was forced to halt plans of cutting 8,100 jobs on
December 2 after talks with the government regarding state-
managed unemployment fund were suspended.

Italian Industry Minister Antonio Marzano said the company and
unions plan to meet between Wednesday and December 5.

According to Francesca Novelli, a spokeswoman for the UGL union,
Italy's deputy prime minister, Gianfranco Fini, decided to halt
the talks on the manufacturer's reluctance to agree on making
concessions.

Italy's biggest manufacturer is applying for a state-managed
unemployment fund, that would pay workers as much as 80% of their
salaries for 12 months when they are laid off.

The government and union leaders, however, placed as a condition
the rehiring of most of the laid off workers after a year.

``We want a profound change in the company's plan of layoffs and
we want to get the government more involved in an industrial
policy,'' said Guglielmo Epifani, the leader of the CGIL union.

Meanwhile, according to Bloomberg, investors say rehiring more
than half the 8,100 workers would hurt the company's return to
profitability.

``Fiat needs job cuts and it needs to reposition the brand,''
said Paolo Wenk, who manages EUR1.3 billion at Banco di Sardegna
in Milan.


TELECOM ITALIA: TIM Board of Directors Approve Results
------------------------------------------------------
TIM GROUP

- Consolidated revenues: EUR8,010 million, a year- on- year
increase of 6.3%(+11.2% excluding the depreciation of the
exchange rates for Brazil and Venezuela)

- A gross operating profit of EUR 3,903 million (+ 7.4%.
Excluding exchange rate effects: +10%)

- Profitability: gross operating profit ratio 48.7% (48.2% in the
first nine months of 2001)

- Operating income EUR 2,713 million (+7.6%)

- Profit before extraordinary items and taxes:2,290 million +
15.4% compared to 2001

- Consolidated net income attributable to Parent company: EUR
1,252 million(a year on year increase of +16.5%),

This result reflects the net impact of the capital gains for EUR
845 million from the disposals of BDT, Mobilkom Austria and Auna
and the writing down of the shareholdings in Is TIM in Turkey and
Digitel Venezuela for EUR 748 million.

- Free operating cash flow: EUR 2,438 million
(EUR 1,597 million in the first nine months of 2001)

- Net short-term assets at 30 September 2002: EUR 310 million
(+EUR 1,842 million compared to 31.12.2001

- Mobile lines: 37.3 million (+7% with respect to the same period
in 2001)

TIM S.p.A.

- Revenues: EUR 6,544 million ( +6.2% for the same period in
2001)

- VAS Revenues: EUR 530 million (+ 38%)

- Gross operating profit: EUR 3,458 million (+7.7%)

- Profitability: gross operating profit ratio 52.8% (52.1% in the
first nine months of 2001)

- Operating income EUR 2,620 million
(+3.2% with reference to the same period of 2001)

- Profit before extraordinary items and taxes: 2,603 million + 2%
compared to 2001
-
- Net income for the first nine months was EUR 299 million (EUR
1,745 million for the same period in 2001) due to extraordinary
charges relating to the write-downs of Is TIM and Digitel The net
impact of write-downs on income amounts to EUR 1,345 million.

- Conferment of powers to convene the Shareholders' Meeting to
discuss and pass resolutions of the reserves for a maximum amount
of EUR 1600 million

- The dividend policy is confirmed

The Board of Directors of TIM (TELECOM ITALIA Group) chaired by
Carlo Orazio Buora has today approved report on business
operations for the period closing 30 September 2002 as proposed
by the Chief Executive Officer Marco De Benedetti

TIM Group  Consolidated

In the first nine months of 2002, the consolidated revenues of
the TIM Group amounted to EUR 8,010 million a 6.3% growth, (11.2%
if allowance is made for the depreciation of the exchange rates.)
During the third quarter the consolidated revenues of the TIM
Group amounted to EUR 2,825 million representing a year on year
growth of 8.6%.

Gross operating profit for the first nine months of 2002 amounted
to EUR 3,903 million, representing a 7.4% increase compared to
the same period in 2001. Net of exchange rate effects, the
increase in the gross operating profit is 10%. The gross
operating profit ratio rose to 48.7% (48.2% in the first nine
months of 2001). During the third quarter the gross operating
profit amounted to EUR 1,415 million a year on year growth of
12.6%. with respect to the same period in 2001 and a gross
operating profit ratio of 50.1% (48.3% in 2001).

Operating income for the first nine months at EUR 2,713 million
was 7.6% higher than in 2001 for the same period. The operating
income for the third quarter of 2002 rose to EUR 1,029 million
compared to EUR 904 million in the third quarter of 2001.

Profit before extraordinary items and tax for the first nine
months was EUR 2,290 million, representing a 15.4% year on year
increase and yielding a profit margin that rose from 26.4% in
2001 to 28.6% in 2002.

Consolidated net income for the first nine months pertaining to
the parent company amounts to EUR 1,252 million and represents a
16.5% increase with respect to the first nine months of 2001.
This result is in part accounted for by extraordinary capital
gains for EUR 845 million for the disposal of BDT (parent company
of Bouygues T,l,com), Autel (parent company of Mobilkom Austria)
and Auna, as well as the extraordinary write-downs of IS TIM and
Digitel for, respectively, EUR 1,258 million and EUR 75 million
respectively. The amount of the writing-down, net of tax
benefits, the impact of the write-downs on consolidated results
was EUR 748 million. The write downs take into account the change
in the macroeconomic scenario, and the consequent repositioning
of the business development plans and it  represents an
extraordinary and not a monetary item.

The TIM Group's investments in line with the 2002 - 2004
industrial plan, amounted to EUR 1,027 million against EUR 3,907
million in the first nine months of 2001. This reduction reflects
the major industrial investment undertaken to acquire licences
(Brazil and UMTS) and financial investments for the acquisition
of international operations in the first nine months of 2001.

Free operating cash flow now stands at EUR 2,438 million a
considerable improvement with respect to the figure recorded in
the first nine of months of 2001 (EUR 1,597 million)

Net liquidity, after EUR 2.019 million dividend disbursement,
stands at EUR 310 million, a EUR 1,842 million. increase with
respect to 31 December 2001. This significant improvement was in
part the result of good operating performance and the net
proceeds from the disposal of non-strategic shareholdings in
Bouygues, Mobilkom Austria and Auna,  for a total of  EUR 1,710
million.

The number of mobile lines of the TIM Group as of  September 30,
2002 was 37.3 million (excluding the mobile lines of Bouygues
Telecom and Amena, Mobilkom Austria and its subsidiaries)
representing a year-on-year increase of 7% compared to the like
for like data recorded as of  December 31, 2001

The TIM Group personnel at 30 September 2002 stood at 17,532
units; an increase of 811 with respect to 31.12.2001.

TIM S.p.A.

In the first nine months of 2002 revenues amounted to EUR 6,544
million against a 6.2% growth recorded for the same period in
2001. The revenues posted for the third quarter 2002 was EUR
2,354 million representing a 9.3% growth compared to the same
period in 2001.

Value-added service (VAS) revenues amounted to EUR 530 million,
38% higher than in 2001. VAS revenues reach 8.5% of  service
revenues (6.5% in the same period of 2001)

The traffic minutes amounted to 27.3 billion, 9.3% year higher
than in the same period last year (25 billion).  Taking into
consideration traffic generated by TIM customers only, the growth
rate reaches 11%, in line with the growth recorded for the same
period in 2001.

The Gross operating profit for the first nine months of 2002 was
EUR 3,458 million, 7.7% higher than for the same period in the
preceding year.

The gross operating profit ratio rose to 52.8% (52.1% in the nine
months of 2001) reflecting an improvement in operating
efficiency. The gross operating profit for the third quarter 2002
was EUR 1,276 million (+13.3% with respect to the same period of
2001) with a gross operating profit ratio of 54.2% (52.3% in
2001).

The operating income for the first nine months of 2002 amounted
to EUR 2,620 million, a 3.2% increase, This result has been
achieved despite higher depreciation charges mainly due to the
amortisation of the UMTS licence amounting to EUR 91 million,
which began in January 2002. The operating income for the third
quarter 2002 was EUR 1,007 million, an 11.8% growth year-on-year
increase.

Profit before extraordinary charges and tax for the first nine
months amounted to EUR 2,603 million, a 2% year on year increase.

Net income for the first nine months stood at EUR 299 million
(EUR 1,745 million in the preceding year) as a result of the
extraordinary write-downs of TIM International, for EUR 1,930
million, related to the write-downs of the shareholdings in Is
TIM in Turkey ( -1,484 million) and Digitel Venezuela (-343
million) and to the adjustment in the valuation of the companies
sold (-103 million). The net impact of the write- downs on the
annual accounts amounted to EUR 1,345 million The write downs
take into account the change in the macroeconomic scenario, and
the consequent repositioning of the business development plans
and it represents an extraordinary and not a monetary item.

Investments in the first nine months reached a total of EUR 1,234
million of which EUR 458 million for industrial investments and
EUR 776 million for financial investments.

Net liquidity amounted to EUR 346 million.

As of September 30, 2002 the number of mobile lines numbered 24.6
million, a 5.6% year on year increase (23.3 million lines as of
30 September 2001).

As of September 30, 2002 TIM personnel stood at 9,624 units (-
168 units when compared to 2001 year-end financial statements).
In terms of traffic minutes per employee, productivity improved
by 11.7% compared to the same period in the preceding financial
year.

Results of the leading foreign subsidiaries and associate
companies of the TIM Group as of September 30, 2002

Subsidiaries

Latin America

Brazil

TIM Group Brazil
Average exchange rate (real/ euro):0.402370769

The TIM Brasil Group operates mobile network services throughout
the entire country. The launch of GSM service in Brazil will
enable TIM to pursue its strategic project for the region: the
first Pan-South American GSM network. TIM is the only GSM
operator authorised to operate throughout the entire Brazilian
territory and is the only company to market its services under
the same brand name. In the first nine months 2002 the
consolidated revenues of the TIM Group Brazil amounted to 1,989
million reais, a year-on-year increase of 21.2%. The gross
operating profit reached 657 million reais, in line with the same
period in 2001. The gross operating profit ratio was 33% (39.9%
in the first nine months 2001).

The consolidated operating income, amounting to 86 million reais,
registered a decline of 40.7% with respect to the first nine
months of 2001. The reduction in profit margins reflects the
results of companies that are still in the start-up phase.

Peru

Tim Peru
Average exchange rate (nuevo soles/euro):0.308029719

The Company launched its service in January 2001.

In the first nine months of 2002 revenues of the Company
accounted for 200 million nuevo soles compared to 63 million
nuevo soles for the same period in 2001. The gross operating
profit for the first nine months was - 89 million nuevo soles
against - 131 million nuevo soles for the same period in 2001.

Operating income was -171 million nuevo soles.
The Company is still in the start-up phase and gross operating
profit and the operating income is still negative.

Venezuela
Corporacion Digitel
Spot exchange rate (bolivares/euro) :0.000983345

In the first nine months of 2002 the Company posted revenues for
186,299 million bolivares a year-on-year increase of 63.2%
compared to the same period in 2001 (114.136 million of
bolivares). The gross operating profit was 33,766 million
bolivares compared to 1,834 million bolivares for the same period
in 2001. The gross operating profit ratio was 18.1% compared to
1.6% for the first nine months of 2001.
Operating income was 463 million bolivares compared to - 18,276
million bolivares in the same period in 2001.

EUROPE

Greece

Stet Hellas
In the first nine months of 2002 the Company's revenues were EUR
503 million  (+ 27% with respect to the same period in 2001). The
gross operating profit stood at EUR 187 million (+32.6%) with a
gross operating profit ratio of 37.2% with respect to 35.6%
posted for the first nine months of 2001.

Operating income, amounting to EUR 99 million showed a year-on-
year increase of 35.6%. with respect to the first  nine months of
2001

Associate companies (consolidated with the equity method)

EUROPE

Turkey

Spot exchange rate (Turkish lira /euro):0.000000729
IS TIM
IS TIM launched service at the end of March 2001. In the first
nine months of 2002 the -Company's revenues were 93,047 billion
Turkish lire. The gross operating profit amountedvto -143,536
billion Turkish lire.

Operating income amounted to - 495,867 billion Turkish lire.

*   *   *

Reclassification and disbursement of reserves

The non-recurrent and non-monetary impact of the extraordinary
charges relative to the write down of shareholdings undertaken in
this period upon the profits posted by TIM SpA, will not change
the dividend policy for shareholders which remains in line with
the same period last year. To this effect, and taking into
account the significant cash generated by operations and from the
disposal plan, the Board has proposed to convene the
Shareholders' Meeting on 11/12/2002 for the approval of the
disbursement of dividends for an overall amount of EUR 1,600
million thereby partially anticipating the 2002 dividend
distribution.

Coupon detachment is scheduled for December 16, 2002 and dividend
payment will be made starting December 19, 2002. The dividend per
share of EUR 0.1865 for both ordinary and savings shares gives
right to a full tax credit which may be claimed without any
limitations within 56.25% of EUR 0.0554 of the dividend sum, and
a limited, i.e. "not reimbursable tax credit, of 56.25% on a
quota of  EUR.0.0963. The remaining EUR 0.0348 will not benefit
from tax credit since it refers to the distribution of the share
premium reserve.

The Board will also propose to the Shareholders' Meeting the
reclassification of the reserves stated among the liabilities via
the transfer of EUR 103,942,274.35 from the share premium reserve
to the legal reserve and the transfer of EUR 102,792,886.55from
the legal reserve to the extraordinary reserve.

Merger of Blu
The Board of Directors approved the merger by incorporation of
Blu SpA, 100% controlled by TIM. TIM intends to complete the
incorporation within December 31, 2002.

With the incorporation of Blu into Tim (based on TIM's balance
sheet as of September 30 and Blu's balance sheet as of October 7,
2002) TIM will take over all the assets, liabilities, commitments
and charges of the incorporated company without the need for an
increase in share capital, but simply by writing off the share
capital of BLU, entirely owned by TIM.

TIM is pursuing an industrial project that envisages the full
exploitation of the assets to be acquired with the merger
(network infrastructure, sites, the call-centers of Calenzano and
Florence and the human resources).

The use of the call centers will enable TIM to cope with the
growth in the volumes of the contracts expected and foreseeable
in the mid-term by ensuring the quality of customer service,
especially related to the management of value-added services.

The availability of sites, BTS equipment and BSC will accelerate
the process of geographical coverage of the UMTS network by
providing a larger number of sites in urban areas and enhancing
network capacity.
The industrial project provides for the valuable integration of
about 670 human resources of BLU into the organisational
structure of TIM.

Convocation of the Ordinary and Extraordinary Shareholders'
Meeting

The Board has given the Chairman, the Deputy Chairman and the
Chief Executive Office powers to convene the Ordinary and
Extraordinary Shareholders' Meeting to discuss, in ordinary
session, the operations for the reclassification of the reserves,
the distribution of reserves up to EUR 1,600 million partially
anticipating the 2002 dividend disbursement and to appoint new
directors to the Board as the tenure of office of Oscar Carlos
Cristianci, Gaetano MiccichS and Enrico Parazzini, co-opted by
the Board meetings of respectively, May 6, July 24 and September
4 2002 lapses on the date of the next Shareholders' Meeting. The
extraordinary session of the Shareholders' Meeting will be held
to discuss and pass motions regarding the proposed merger by
incorporation of. Blu.

To see Telecom Italia's Financial Data:
http://bankrupt.com/misc/TIM.pdf


TELECOM ITALIA: Board Approves Results for Third Quarter
--------------------------------------------------------
Net consolidated profit amounts to Euro 15 million, compared with
a loss of Euro 33 million in Q3 2001

Positive gross operating profit registered by the Internet area
for the third consecutive quarter

SEAT PG GROUP
- Revenues Amounted To Euro 1,379 Million (+2.6% Compared To
Sept. 30, 2001)
- Gross Operating Profit: Euro 400.6 Million (+33.2% Compared To
Sept. 30, 2001)
- Operating Income: Euro 127 Million (Euro 10.1 Million at Sept.
30, 2001)
- Net Profit Amounted To Euro +1 Million, Compared To A Loss Of
Euro 109.8 Million At Sept. 30, 2001
- Financial Debt Decreased To Euro 232 Million Compared To Dec.
31, 2001 And Reached Euro 690 Million

Seat Pg S.P.A
- Revenues: Euro 778.2 Million (+2.9% Compared To Sept. 30, 2001)
- Gross Operating Profit: Euro 386.5 Million (+8.4% Compared To
Sept. 30, 2001)
- Operating Income: Euro 231.9 Million (+18.1% Compared To Sept.
30, 2001)
- Net Profit Amounted To Euro 21.5 Million, Compared To A Loss Of
Euro 88.8 Million At Sept. 30, 2001

The Board of Directors of Seat Pagine Gialle (Telecom Italia
Group) met today in Rome and analyzed and approved the Group
results for the first nine months of 2002. Consolidated net
profit for the period amounted to Euro 1 million compared to a
loss of Euro 109.8 million in the same period of 2001.

Consolidated results showed a profit for the second consecutive
quarter and, in progressive terms, it returned in the black for
the first time since 2000.

Despite the limited increase in revenues due to the ongoing
crisis of the advertising market, Seat PG Group's positive
results for the first nine months of 2002 stem from the
significant work carried out to recover efficiency and reduce
operating costs. The ratio of the gross operating profit to
revenues reached 29.%, with a significant increase compared to
22.4% in 2001. The management action was aimed at improving and
streamlining the Group's structure and businesses and developing
synergies within different business areas.

In particular, the profitability of the Internet area continued
to improve also owing to the diversification of revenue sources
and synergies with the directory area.

The success of the launch of PG Net, the new product offering
listing on the Virgilio search engine for a fee was significant.
PG Net is targeted to SMEs and has been marketed by the Pagine
Gialle sales network since July. To date, it has already reached
20,000 customers.

For the entire financial year 2002, Seat PG expects to confirm
the significant business improvements it has achieved also thanks
to the launch of the new Pagine Gialle and Pagine Bianche and the
new Internet access offers. The increase in gross operating
profit is confermed at about 30% compared to 2001.

In the past few months work to streamline the Group structure has
continued. The number of operating companies within the Group has
further decreased from 200 at the end of 2001 to 138 at September
30, 2002.

Economic and financial highlights of the Seat PG Group
Consolidated revenues amounted to Euro 1,379 million in the first
nine months of 2002, with an increase of 2.6% compared to the
same period of 2001.

Gross operating profit for the period grew significantly reaching
Euro 400.6 million compared to Euro 300.8 million in the first
nine months of 2001, thus registering a 33.2% increase.

Operating income before non-operating depreciation and
amortization amounted to Euro 260 million in the first nine
months of 2002, up 74% compared to Euro 149.4 million in the
first nine months of 2001.
Consolidated net profit for the first nine months of the year
showed a positive result amounting to Euro 1 million, compared to
the loss of Euro 109.8 million in the same period of 2001.

The notable increase in the gross operating profit also
influenced the operating income that reached Euro 126.7 million
in the nine-month period, compared to Euro 10.1 million in the
same period of 2001.
Net indebtedness was lower by Euro 232 million compared to
December 31, 2001, thus decreasing to Euro 690 million.

Q3 2002 Results
Q3 2002 showed a positive consolidated net result of Euro 15
million compared to the loss of Euro 33 million registered for
the same period of 2001.

Revenues for the quarter reached Euro 508.6 million with a
reduction of 2%, mainly due to the exclusion from the
consolidation area of the Datahouse Group and some companies
operating in the Internet business, as well as to the decision to
postpone the printing of some of Thomson's telephone directories
to the fourth quarter of 2002.

Gross operating profit reached Euro 191.4 million, compared to
Euro 157.4 million in Q3 2001, thus increasing by 21.7% and
showing a ratio to revenues of 37.6% against an incidence of
30.3% in 2001.
Operating income amounted Euro 107.6 million with an increase of
107.4% compared to Q3 2001 (Euro 51.9 million), with a ratio to
revenues of 21.2%, compared to 10% in  2001.

SEAT PG S.p.A
Revenues of the Parent Company Seat PG S.p.A. amounted to Euro
778.2 for the first nine months, up 2.9% and operating income
amounted to Euro 231.9 million, up 18.1% compared to Euro 196.5
million in the first nine months of 2001.

Net profit amounted to Euro 21.5 million at September 30, 2002,
compared to a loss of Euro 88.8 million in the first nine months
of period of 2001.

Events subsequent to September 30, 2002
On October 29, 2002, the first phase of the "Tiglio" project was
completed. This operation involves the Olivetti-Telecom Italia
Group companies and is aimed at valorizing real-estate assets of
the companies of the Group, including the property of the Seat
Pagine Gialle Group.

In particular, as of that date, the sales deeds for the real-
estate assets of Seat Pagine Gialle S.p.A. and Gruppo Buffetti
S.p.A. went into effect. These assets were transferred for a
total amount of Euro 53 million, 10.6 million of which already
collected on September 30, 2002. The impact on the net financial
position was Euro 42.5 million, partially used to underwrite a
seven-year loan of Euro 2.6 million to Tiglio S.r.l. and a
capital increase of Euro 10.6 million in Tiglio S.r.l..


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


AEGON NV: Wishes to Acquire KPN and TPG Pensions' Administrator
---------------------------------------------------------------
AEGON Nederland N.V. intends to acquire the entire share capital
of TPG KPN Pensioen B.V. (TKP). To this end, AEGON is in
exclusive negotiations with the current shareholders. TKP is the
pension administration organisation for six pension funds
including those of KPN and TPG. Only administration is involved.
The pension funds' management remains responsible for policy. In
total, the six pension funds have 146,000 participants and
control assets in excess of six billion euros. The participants
of the pension funds will be unaffected by the possible
acquisition. TKP, which is based in Groningen, employs 121
people.

Hans Hokke, managing director of TKP, said of the potential
acquisition, "There is more and more competition in the pensions
administration market and the quality and efficiency of service
are points on which pension funds assess the administrator. TKP
wishes to expand its position in this market by gaining more
pension funds as customers and, in this, has AEGON as a strategic
partner which wishes to invest in TKP and its ambitions."

Jan Overmeer, member of the Board of AEGON The Netherlands, said,
"This acquisition will provide us with immediate access to a
market that is new for AEGON The Netherlands of larger pension
funds. We wish to retain TKP's know-how in Groningen. And we want
to expand its specific expertise further in order, in due course,
to become a player in this field in Europe where AEGON has shown
itself to be very successful in other markets. AEGON The
Netherlands wishes to give TKP the status of a separate business
unit with its own organisational structure and range of products
and services."

Further information will be issued when the negotiations are
completed.

About TKP

TKP's activities consist of pension administration, asset
management and providing comprehensive advice to pension funds on
their legal, tax, actuarial and investment policies. TKP was set
up as an autonomous administration agency by KPN, TPG and their
pension funds in 1998. Since then, TKP has been able to serve new
customers, including Stichting Postkantoren-Bruna Pensioenfonds.
The current shareholders wish to sell TKP as the administration
of pension funds is not among the core activities of KPN and TPG
and they wish to give TKP the space to grow further with a
strategic partner in the market of service to larger pension
funds.


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


ELEKTRIM SA: Board Announces Sale of Cable TV Businesses
--------------------------------------------------------
The Management Board of Elektrim S.A. announces that it has been
informed by Elektrim Telekomunikacja Sp. z o.o. (associated
company) about the sale of cable TV businesses, i.e. Aster Polska
Sp. z o.o., Warszawskie Sieci Kablowe Sp. z o.o., RTK Autocom Sp.
z o.o., Autocom Sp. z o.o., ZTP S.A., to the consortium of three
companies: Hicks Muse Tate & Furst, Emerging Markets Partnership
and Argus Capital Partners. The value of the transaction is EUR
110 mm. The closing of the transaction will take place after all
the required permissions and consents have been obtained. As a
result of the earlier agreement (RB 174/02) part of the sale
proceeds will be earmarked for the repayment of receivables to
Elektrim


ELEKTRIM SA: Supervisory Board Calls Urgent Meeting
---------------------------------------------------
The Management Board of Elektrim S.A. announces that a meeting of
the Supervisory Board has been urgently called for 2 December
2002 (with a possibility of moving it to 3 December 2002)at the
request of Elektrim's Supervisory Board Chairman. At the meeting
steps relating to Mr Ryszard Opara, the Management Board's Vice
President, will be discussed among other things.


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


LM ERICSSON: Signs Outsourcing Contract With Brasil Telecom
-----------------------------------------------------------
Ericsson (NASDAQ:ERICY) and Brasil Telecom have signed a three-
year contract, under which Brasil Telecom has outsourced its
fixed network operations to Ericsson in the region of Rio Grande
do Sul (southern Brazil).

Ericsson has already taken over a couple of hundred employees and
the responsibility for the daily network operations and
maintenance of the network.

"We are very pleased with the outcome and performance of the
operation so far. This has improved the efficiency and is saving
operational costs for Brasil Telecom," says Peter Kallberg,
President, Ericsson Brazil. "By outsourcing to a telecom
specialist like Ericsson, Brasil Telecom can focus more on their
core business, that is - offer it's customers the services they
want."

The contract includes no less than 34 key performance indicators
that measure the performance of the operation. After the handover
to Ericsson the performance level has improved in several areas.

"The agreement reconfirms Ericsson's clear leadership in the fast
growing global market for Managed Services," says Karl-Henrik
Sundstrom, Head of Global Services, Ericsson. "It is the biggest
Managed Services agreement so far for Ericsson in Latin America
and includes equipment delivered by several competing vendors.
This proves Ericsson's solid competence in managing complex
multivendor environments."

This is the second major outsourcing agreement announced by
Ericsson this year, which further confirms the strong trend among
operators to use outsourcing as a way to reduce cost and improve
service. To date Ericsson has signed 35 Managed Services
contracts, far more than any other vendor.

Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication
companies in the world.

CONTACT:  Ericsson Inc.
          Communications
          Kathy Egan
          Phone: 212/685-4030
          E-mail: Pressrelations@ericsson.com
          or
          Investor Relations
          Glenn Sapadin
          Phone: 212/685-4030
          E-mail: Investor.relations@ericsson.com


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


ABBEY NATIONAL: Standard & Poor's Revises Outlook to Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services revised the outlook on U.K.-
based bank Abbey National PLC and related entities from stable to
negative.  It also affirmed its 'AA-/A-1+' counterparty credit
ratings on Abbey and related entities.

According to the rating agency, the action is due to "the
continuing pressure on group capital flexibility resulting from
market volatility and the capitalization of its life assurance
operations."

Standard & Poor's credit analyst, Michelle Brennan, says the
outlook reflects challenges in the management's effort to reduce
the group's risk profile and revitalize core business units in
the background of current market environment.

Mr. Brennan assures, however, that the negative outlook does not
necessarily imply that a downgrade follows.  But he warned that
the ratings could be lowered if the management's efforts to
return the outlook to stable are not successful.

Standard & Poor's, meanwhile, affirms that the ratings on Abbey
reflect a strong U.K. market position, good core business
profitability, comparatively favorable efficiency, solid
liquidity, and effective distribution networks.


BRITISH ENERGY: Government Still Undecided Over Fate
----------------------------------------------------
Although British Energy's loan expires in a matter of days, the
government has not yet decided whether to extend the lifeline or
let the nuclear generator go into administration.

Trade secretary Patricia Hewitt said "No decisions have been made
yet, but when they are made, I will announce it to parliament.
These are highly market-sensitive issues."  Hewitt is expected to
make her announcement to the parliament on Thursday.

The government official admitted the matter Monday, which is just
a few days ahead of the November 29 expiration of British
Energy's GBP650 million bail-out package from the government.

According to The Scotsman, many Whitehall sources claim
Chancellor Gordon Brown is reluctant to allow more taxpayers'
money to be spent on the firm.

The European has yet to approve the loan--a matter that could be
a glitch for further extension of the deal, the report says.

The nuclear generator has been, meanwhile, in talks with state-
owned nuclear operator British Nuclear Fuels in a deal that is
seen as a possible bailout for the troubled company.  The plan
involves a renegotiation of the charges for nuclear fuel
reprocessing, that could see British Energy saving up to GBP120
million a year.


COLT TELECOM: Court Prevents Highberry From Obtaining Documents
---------------------------------------------------------------
Highberry Limited, a hedge fund moving to put Colt Telecom into
administration, failed to obtain documents from the telecoms
group as the High Court refused to allow the attempt.

Justice Lawrence Collins said in a written judgement: "If they
[Highberry] need the documents to respond to Colt's position,
then I consider that they are simply fishing for information or
documents to bolster their position."

Highberry Limited, part of Elliott Associates, claimed that Colt
will not be able to pay bonds that mature in 2005, and said it
had lost faith in the company's balance sheet and forecasts.

Colt said Highberry's action has no basis, saying that the
company is a going concern with a robust business and a sound
business plan.  According to The Scotsman, Colt labeled the hedge
fund "vulture fund" seeking to make money on the movements in
Colt shares and bonds as a result of the court action.

The report noted that Elliott Associates, of which Highberry is a
part, successfully sued Peru's government in 2000 demanding for a
multi-million dollar payout over debts.

Colt, which has total assets worth GBP2.8 billion and total
liabilities of only GBP1.7 billion, holds it can repay or
refinance its bonds when they fall due.

Colt and Highberry are due to a three-day legal hearing between
December 2 and the Christmas holiday period.


EQUITABLE LIFE: Announces Resignation of Executive Board Director
-----------------------------------------------------------------
Equitable Life on Monday announces the resignation of Executive
Board Director Charles Bellringer, the Society's Chief Finance
and Investments Officer.

Charles Bellringer has confirmed to the Board his intent that,
following the publication of its latest financial accounts and
successful completion of the compromise scheme earlier this year,
he wishes to find a new and wider challenge in corporations
undergoing major change.

The Society's Chief Executive, Charles Thomson, said: "We still
have a number of issues ahead as we seek to stabilise further the
with-profits fund and reduce our costs. Charles Bellringer has
played an important role in delivering the successful compromise
scheme and in helping to reconstruct the Society's business. We
thank him for his substantial contribution and we wish him well
for the future."

"The recruitment of a successor is in hand. In the meantime, we
have the benefit of an experienced team of finance professionals
who will assume day-to-day management of the finance operations
until a new appointment is made and Charles Bellringer has agreed
to assist the Society during this transition."


LEICESTER CITY: Regulators Take Shares Off the Market
-----------------------------------------------------
The shares of Leicester City, the club which went into
administration last month, were taken off the stock market after
the Leicester City Football Club operator failed to appoint a new
banking advisor.

The club was given a 28-day period to look for an adviser as
provided under the stock market rules.

As a result of the suspension, Leicester City has to re-apply to
the stock market to regain its listing.

The report from The Scotsman noted that the news came as a
financial consortium headed by former England striker, Gary
Lineker, submitted a possible bailout bid to Leicester's
administrators.

The consortium is believed to be willing to pay GBP4 million now
and an additional GBP1 million in April.

Leicester City went into administration last month after failing
to reach agreement with creditors.  The club is thought to have
debts of about GBP30 million.

Nick Dargan, Dominic Wong and Andy Peters from Deloitte & Touche
have been appointed as administrators to settle Leicester's
financial obligations and find a buyer.


MYTRAVEL GROUP: Postpones Reporting of Preliminary Results
----------------------------------------------------------
MyTravel Group plc announces that it has postponed the
announcement of its preliminary results for the year ended 30
September 2002.

The Company is in well advanced discussions with its lending
banks to provide an extension of its revolving credit facility
and commitments for certain other facilities.

The Company expects to sign agreements shortly.  The preliminary
announcement will be released immediately thereafter.

CONTACT:  Brunswick
          Phone: 020 7404 5959
          Fiona Antcliffe
          Sophie Fitton


NORTH ATLANTIC: Announces Sanction of Scheme of Arrangement
-----------------------------------------------------------
Notice is given that by an Order dated October 15 2002 made in
the High Court of Justice in England and Wales in the matter of
North Atlantic Insurance Company Limited a scheme of arrangement
pursuant to section 425 of the Companies Act of 1985 between the
Company and its Scheme Creditors, which was at meetings held on
October 3, 2002 in London, voted on and approved by the requisite
majorities of each class of Scheme Creditors, was sanctioned.  An
office copy of the Court Order sanctioning the Scheme was
delivered to the Registrar of Companies for registration on
October 18, 2002.  The Effective Date of the Scheme is therefore
October 18, 2002.

Paul Anthony Brereton Evans and Mark Charles Batten, partners in
PricewaterhouseCoopers, are the joint Scheme Administrators
responsible for implementing the Scheme.  Anybody believing
themselves to be a Scheme Creditor who has not received notice of
the Effective Date of the Scheme, should contact the joint Scheme
Administrators at the address below.

The Bar Date for submitting claims via Provisional Claim Forms or
amending and submitting claims via Full Claims Packs is April 30,
2003.  All Scheme Creditors must notify the Joint Scheme
Administrators of heir claims via the website or in writing with
supporting documentation prior to the Bar Date.  If a PCF or an
amended PCF is not received by this date, the Scheme Creditor
concerned will be deemed to have accedpted and agreed the
information contained in their PCF.  The Joint Scheme
Administrators are not required to take account of any PCF's
amendments to the FCP's, or to admit the claims, ow which they
receive notification after the Bar Date.

It is requested that FCP's or PCF's be submitted via the website,
www.northalanticinsurance.co.uk, or in writing as applicable, to
the Joint Scheme Administrators, North Atlantic Insurance Company
Limited, PO Box 137, Harlands Road, Haywards Heath, West Sussex
RH16 1YG, United Kingdom, Fax number +44 (0) 1444 450 458,
Telephone number +44(0)1444 414 177.

All other inquiries should be addressed to the joint Scheme
Administrators at the above address.


SCOTTISH MUTUAL: S&P Lowers Ratings to 'A-', Outlook Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its
counterparty credit and insurer financial strength ratings on
U.K.-based insurer Scottish Mutual Assurance PLC (Scottish
Mutual) to 'A-' from 'A'.

The outlook is negative.

At the same time, Standard & Poor's lowered its junior
subordinated debt ratings to 'BBB' from 'BBB+' on the GBP200
million ($280 million) perpetual junior subordinated notes issued
by Scottish Mutual. The rating action reflects Standard & Poor's
view on Scottish Mutual's worsening stand-alone financial
strength, despite several injections of funds by its parent,
Abbey National PLC (Abbey; AA-/Negative/A-1+).

Capitalization has fallen as a result of the global equity market
decline and aggressive capital management, and is regarded as
weak on both a published and economic basis. "Although adequate,
business position has weakened as a result of weak published
capital ratios," said Standard & Poor's credit analyst Carolyn
Rajaratnam. "Nevertheless, new business sales under the recently
acquired Scottish Provident brand have been good, and Standard &
Poor's expects this growth to continue going forward."

"Although Standard & Poor's considers Scottish Mutual to be less
strategically important to Abbey, Standard & Poor's takes the
view that support will be forthcoming in the short to medium
term, should a stress situation arise," said Standard & Poor's
credit analyst Paul Waterhouse. "Support has been demonstrated in
the recent months, through various injections of funds. In
addition, the management at Scottish Mutual is working closely
together with that at Abbey to try to improve the risk
characteristics inherent in the portfolio. Recent actions, such
as reduced emphasis on the profitable but capital-intensive with-
profits bond market, are examples of trying to limit risk."

The negative outlook reflects continuing pressures on both the
parent's rating as well as Scottish Mutual's stand-alone
financial strength. In addition, this rating is based on Scottish
Mutual's current role within the Abbey National group. Changes to
the support provided by Abbey or Scottish Mutual's stand-alone
financial characteristics could lead to a rating action.



THE BIG FOOD: Announces Purchase of Senior Notes
------------------------------------------------
The Company is pleased to announce that, through one of its
subsidiaries, it has today purchased GBP2,500,000 nominal value
of its 9.75% Senior Notes due 2012.

The Big Food Group plc may choose to repurchase additional
outstanding bonds in the future, in open market purchases or
privately negotiated transactions. Such purchases will depend on
prevailing market conditions and, including the purchase today,
will not exceed 10% of the bonds in issue.

CONTACT:  The Big Food Group
          Bill Hoskins, Finance Director
          Phone: 01933 371 126

          David Sawday, Group Head of PR
          Phone:  01933 371 148

          Hudson Sandler
          Phone:  020 7796 4133

          Michael Sandler
          Noemie de Andia


TXU EUROPE: S&P Lowers Rating on TXU Europe Funding Notes to 'D'
----------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its credit
rating on the notes issued by TXU Europe Funding Ltd. to 'D' from
'CC', following the downgrade of the senior unsecured debt rating
on TXU Eastern Funding Co. At the same time, the notes were
removed from CreditWatch, where they had been placed on Oct. 23,
2002.

The rating on the senior unsecured debt issued by TXU Eastern
Funding acts as a supporting rating to the notes issued by TXU
Europe Funding, a special-purpose entity that issued EUR500
million secured 7% notes on Nov. 29, 2000. The rating on TXU
Eastern Funding's debt was lowered to 'D' and removed from
CreditWatch on Nov. 20, 2002, after the company filed for
administration.

While TXU Eastern Funding's bond payments have not yet been
missed, the filing for administration constitutes an event of
default under Standard & Poor's rating criteria.


                                  ***********

         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-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Kimberly
MacAdam, Larri-Nil Veloso and Ma. Cristina Canson, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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