/raid1/www/Hosts/bankrupt/TCREUR_Public/021210.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

                 Tuesday, December 10, 2002, Vol. 3, No. 244


                              Headlines


* F R A N C E *

COMPAGNIE GENERALE: Standard & Poor's Revises Outlook to Negative
FRANCE TELECOM: Fitch Affirms Rating on Plan to Increase Capital

* G E R M A N Y *

DRESDNER BANK: In Talks to Divest Unprofitable Units

* G R E E C E *

OLYMPIC AIRWAYS: EU Commission Might Collect Unpaid Taxes

* L U X E M B O U R G *

VANTICO GROUP: Standard & Poor's Lowers Corporate Credit Rating

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

IFCO SYSTEMS: Implements Measures Relating to Debt Restructuring

* R U S S I A *

BIN BANK: Fitch Affirms Long-term and Short-term Ratings

* S W I T Z E R L A N D *

CREDIT SUISSE: Fitch Rates CSFBMSC Mortgage P-T Certificates

* U N I T E D   K I N G D O M *

ABBEY NATIONAL: To Dispose Non-Core Parts, Sells Leasing Division
AMEY PLC Board Announces Detail of Preliminary Review
ARC INTERNATIONAL: Issues Details on Return of Capital
CABLE & WIRELESS: Moody's Cuts Long-term, Short-term Debt Grades
CABLE WIRELESS: Issues Response to Moody's Downgrade
COLT TELECOM: Outlines Summary of Defense Against Highberry
INDIGOVISION GROUP: Takeover Talks Caught in Major Glitch
MARCONI PLC: Sells New Multiservice Switch-Router Platform
SOMERFIELD: Announces Sale and Leaseback of Lea Green


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


COMPAGNIE GENERALE: Standard & Poor's Revises Outlook to Negative
-----------------------------------------------------------------
Standard & Poor's revised its outlook on seismic company
Compagnie Generale de Geophysique to negative from stable.  It
affirmed, at the same time, the 'BB' long-term corporate credit
rating of the company.

The action reflects "concerns over CGG's ability to generate free
cash flow and reduce debt on a recurring basis."

The rating agency noted that at the end of September 2002, CGG
has EUR60 million discretionary cash flow shortfall, in contrast
with a surplus of EUR16 million last year; and net debt of EUR275
million, compared with EUR229 million at the end of 2001.

Standard & Poor's credit analyst Eric Tanguy said, "At the
current rating level, the company has little flexibility left to
undertake further debt increases."  Mr. Tanguy made the foresight
in the light of the highly volatile and competitive nature of the
seismic industry, CGG's vulnerability to changes in crude oil
prices and the U.S. dollar-euro exchange rate, and the company's
already leveraged financial profile.

The analyst warns that any further deterioration in the company's
key credit measures would result to a rating downgrade.

The rating agency noted that the French company's rating is
supported by the company's integrated position along the entire
seismic value chain, its relatively strong fleet, geographically
diversified operations, and conservative operating policies.


FRANCE TELECOM: Fitch Affirms Rating on Plan to Increase Capital
----------------------------------------------------------------
Fitch Ratings affirmed France Telecom's Senior Unsecured rating
of 'BBB-', and its Short-term rating of 'F3', following the
company's announcement of a EUR15 billion capital increase to de-
leverage the company's balance sheet.  The rating outlook was
changed from Stable to Positive.

Fitch also took into consideration the new management's
commitment to generate EUR15 billion of free cash flow by the end
of 2005.

The rating agency initiated the action on expectation of the
substantial capital increase, strong state support, and focus on
cash generation.

The Outlook was changed to Positive to mean that Fitch could
upgrade the rating in the medium term if the company shows strong
and sustainable cash flow and debt performance.

Fitch believes that the additional equity, as well as the French
company's pro rata contribution of EUR9 billion could de-leverage
the company to a level that is more appropriate to an investment-
grade credit rating.

The rating agency determines that a strong and sustainable
improvement in FT's net free cash generation is needed to improve
credit quality.  Fitch says the company could achieve this
through the TOP operational peformance program, which includes
reduction in operating expenses , capital expenditure, and
working capital requirement.


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


DRESDNER BANK: In Talks to Divest Unprofitable Units
----------------------------------------------------
Dresdner Bank AG is negotiating the sale of some of its
unprofitable units, Bloomberg cites spokesman Tobias Bange
saying.

The spokesman said, ``There are talks, but I can't comment on the
details of the negotiations.''

The assets referred are real-estate unit Dr. Luebke GmbH
Immobilien, Internet trading platform Allago AG, securities-
settlement specialist Lombardkasse AG, and other unidentified
units.

According to Der Spiegel, Chief Executive Officer Bernd Fahrholz
said he will close Dr. Luebke if he cannot find a buyer for the
business.  The operation failed to register a profit despite a
restructuring measure that saw 40% of its staff eliminated this
year.

Dresdner, which was purchased by Allianz AG for US$20 billion
last year, accounts for the EUR972 million of Allianz's EUR2.5
billion third quarter loss.  It is selling the businesses to
prevent further losses.

The bank is also planning to cut 800 jobs in its corporate
clients business to achieve the 3,000 job slashes it plans to
undertake thorough the bank.

CONTACT:  DRESDNER BANK
          Jurgen-Ponto-Platz 1
          60301 Frankfurt, Germany
          Phone: +49-692--630
          Fax: +49-692-63-4831
          Home Page: http://www.dresdner-bank.de
          Contact:
          Alfons Titzrath, Chairman of the Supervisory Board
          Klaus Rosenfeld, Chief Financial Officer


===========
G R E E C E
===========


OLYMPIC AIRWAYS: EU Commission Might Collect Unpaid Taxes
---------------------------------------------------------
The Greek government fears the European Commission will demand
the return of EUR300 million (US$302.8 million) in alleged unpaid
taxes and social security payments from state-owned Olympic
Airways.

The Commission has ruled that favorable tax treatment constitutes
state aid, which violates competition rules.

The prospect is feared to drive the Greek airline into
bankruptcy, says the Financial Times.

The Commission was disappointed by the lack of any audited
figures from 2001, as well as qualifications by the auditors in
the company's reports from 1999 and 2000, the report says.

The airline reasoned that it failed to provide audited results
due to a lack of a centralized information system.

Separately, TCR-EU report earlier reported that chartered
accountants who examined the company's 2000 accounts predicted
the approach of the firm into bankruptcy basing on the observed
98.7% reduction in the company's shareholders' funds from EUR98.8
million in 1999 to EUR1.8 million in 2002.

Olympic Airways plans to appeal the ruling to the European Court
of Justice, denying that there has been an illegal aid to the
airline for three years.

Greek officials argued that the Commission's decisions are based
on figures dating from 1994, the report however noted that
Brussels have also used more recent data to arrive to the ruling.

The Greek government is meanwhile motioning the privatization of
the firm, and has appointed three local banks -- National Bank of
Greece, Commercial Bank of Greece, and Alpha Bank-- to look for
an investor willing to acquire 51-56% of the state airline and
inject US$80 million in new capital.  The government plans to
make an equivalent payment.  The plan includes liquidating the
airline and using the assets to pay off debt.

The government received six bids for a majority stake in Olympic
Airways, says the report.


===================
L U X E M B O U R G
===================


VANTICO GROUP: Standard & Poor's Lowers Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered Vantico Group SA's
long-term corporate credit rating from 'CCC+' to 'CCC-', and
senior unsecured debt rating from 'CCC-' to 'C'.  All ratings
remain on CreditWatch with negative implications, where they were
placed on June 11, 2002.

The action reflects the epoxy-resin manufacturer's continued weak
operating performance and the rating agency's expectation that
Vantico will likely undergo a bond restructuring.

The rating agency noted that following a strategic review, the
group has decided restructure its balance sheet, and had
negotiated with holders of its EUR250 million senior notes due
August 2010.

Standard & Poor's credit analyst Christine Hoarau said "Although
details of the group's future financial structure are not yet
known, Standard & Poor's believes that a bond restructuring is
becoming
very likely."

Ms. Hoarau said that despite the benefits of the restructuring,
"any bond restructuring that would include a coercive'
tender offer for outstanding bonds or a debt-to-equity swap would
trigger a downgrade of Vantico's corporate credit rating and
senior unsecured debt ratings to 'D'."

S&P declared that Vantico's liquidity risk is high, and the
group's liquidity position will be dependent on continued
successful negotiations with its senior banks.


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

IFCO SYSTEMS: Implements Measures Relating to Debt Restructuring
----------------------------------------------------------------
IFCO Systems N.V. (Frankfurt:IFE) announced that several measures
relating to the planned restructuring of the company's EUR 200
million 10.625% Senior Subordinated Notes due 2010 pursuant to
the estructuring agreement will take effect on Monday, Dec. 9,
2002.

Effective as of the commencement of trading on Monday, Dec. 9,
2002, the trading in the ordinary shares of the company on the
Frankfurt Stock Exchange will be adjusted to reflect

(i) a reduction in the nominal value of the ordinary shares from
EUR 2 to EUR 0.01 per share;

(ii) a reduction of the number of ordinary shares of the company
currently issued from 44 million to 4.4 million through a ten-to-
one consolidation (consolidation of ten shares with a nominal
value of EUR 0.01 to one share with a nominal value of EUR 0.10);
and

(iii) conversion of the registered ordinary shares of the company
listed on the Frankfurt Stock Exchange into bearer ordinary
shares. With respect to the share consolidation, one post-
consolidation ordinary share will, at the moment of
consolidation, equal ten pre-consolidation ordinary shares.

The reductions in capital and share consolidation were
implemented on Dec. 4, 2002 and also affect the company's
ordinary shares of New York registry. Holders of the company's
New York registry shares may continue to take action to have
their shares transferred to the company's German register for
trading on the Frankfurt Stock Exchange. Any holders desiring to
transfer their New York shares should either contact their broker
or, for holders of certificated shares, the company's transfer
agent, Deutsche Bank AG in New York (+1 212/602-3761) to initiate
the transfer process. Although the number of shares has been
reduced through the share consolidation, the administrative
transfer fee charged by the company's transfer agent will remain
at US$0.05 per share, resulting in a reduced transfer cost.

These capital measures are part of the previously announced
restructuring of the company under the terms of the Restructuring
Agreement. The company will continue to move forward towards
completing the restructuring, subject to the conditions set forth
in the Restructuring Agreement.

These materials are not an offer for sale of securities in the
United States. Securities may not be offered or sold in the
United States absent registration under the U.S. Securities Act
of 1933 or an exemption from registration. Any public offering of
securities to be made in the United States will be made by means
of a prospectus that will contain detailed information about the
company and management, as well as financial statements.

For the listing of the company's new ordinary shares and warrants
on the Frankfurt Stock Exchange, a listing prospectus will be
prepared. To the extent permissible under applicable securities
laws, the company will inform shareholders when and where the
listing prospectus will become available.

CONTACT:  IFCO SYSTEMS N.V.
          Karl Pohler
          Phone: +49 89 7449 1112
          Michael Nimtsch
          Phone: +49 89 7449 1121
          or
          Investor Relations:
          Gabriela Sexton
          Phone: +49 89 7449 1223
          E-mail: Gabriela.Sexton@ifco.de
          or
          Financial Advisors to the Company:
          Gleacher & Company
          Robert A. Engel
          Phone: +44 207 484 1121
          Kenneth Ryan
          Phone: +44 207 484 1133
          or
          Financial Advisors to the Ad Hoc Committee of
          Noteholders:
          Close Brothers Corporate Finance Limited
          Peter Marshall
          Phone: +44 207 655 3100
          or
          Houlihan Lokey Howard & Zukin Capital
          Joseph Swanson
          Phone: +44 207 839 3355
          Milos Brajovic
          Phone: +44 207 747 2722


===========
R U S S I A
===========


BIN BANK: Fitch Affirms Long-term and Short-term Ratings
--------------------------------------------------------
Fitch Ratings affirmed the ratings of B.I.N. Bank at 'CCC+' for
Long-term, 'C' for Short-term, 'D' for Individual, and '5T' for
Support.  The Outlook for the Long-term rating is Stable.

Despite the affirmation, Fitch says that BIN's profitability is
weak and lacks diversification of its revenue stream.  The
international rating agency notes that there is generally a high
degree of concentration of BIN's businesses among a few
customers.


Fitch also warns that the bank has to show it can improve its
earnings "at at time interest margins are narrowing" to avoid a
downward pressure on its ratings.

The company's entry into proprietary FX trading is meanwhile
affirmed, as this could improve profitability as long as the
risks are well managed.

Fitch also acknowledges that the company was able to withstand
liquidity pressure due to the reduction in loan portfolio (which
is concentrated both by sector and by individual borrower), and
to a strong increase in retail funding.

BIN is an open joint-stock (limited liability) company
established in 1992.


=====================
S W I T Z E R L A N D
=====================


CREDIT SUISSE: Fitch Rates CSFBMSC Mortgage P-T Certificates
------------------------------------------------------------
Credit Suisse First Boston Mortgage Securities Corp.'s (CSFBMSC)
2002-TFL-1 commercial mortgage pass-through certificates, are
rated by Fitch Ratings as follows:

    --US$325,000,000 class A-1 'AAA',
    --US$234,000,000 class A-2 'AAA',
    --US$679,050,000 class A-X 'AAA';
    --US$90,000,000 class A-YCF-1 'AAA';
    --US$90,000,000 class A-YCF-2 'AAA';
    --US$180,950,000 class A-YCDC 'AAA';
    --US$37,000,000 class B 'AAA';
    --US$44,000,000 class C 'AA';
    --US$29,000,000 class D 'A';
    --US$10,050,000 class E 'A-';
    --US$9,200,000 class F-717 'NR';
    --US$4,300,000 class F-ABP 'BBB+';
    --US$3,900,000 class F-ALH 'A-';
    --US$2,050,000 class F-PH 'BBB+';
    --US$6,400,000 class F-COT 'BBB+';
    --US$3,900,000 class F-AON 'NR';
    --US$6,500,000 class F-WBC 'BBB+';
    --US$1,500,000 class F-SP 'BBB';
    --US$4,700,000 class F-POR 'BBB+';
    --US$6,300,000 class G-717 'NR';
    --US$8,000,000 class G-ABP 'BBB-';
    --US$10,000,000 class G-ALH 'BBB';
    --US$2,250,000 class G-PH 'BBB';
    --US$2,500,000 class G-COT 'BBB';
    --US$3,000,000 class G-AON 'NR';
    --US$3,500,000 class G-WBC 'BBB-';
    --US$2,600,000 class G-SP 'BBB-';
    --US$3,150,000 class G-POR 'BBB-';
    --US$4,000,000 class H-717 'BBB-';
    --US$3,000,000 class H-ABP 'BBB-';
    --US$6,000,000 class H-ALH 'BBB-';
    --US$4,750,000 class H-PH 'BBB-';
    --US$5,000,000 class H-COT 'BBB-';
    --US$3,000,000 class H-AON 'BBB-';
    --US$3,250,000 class H-WBC 'NR';
    --US$2,150,000 class J-PH 'NR'.

All classes are privately placed pursuant to rule 144A of the
Securities Act of 1933. The certificates represent beneficial
ownership interest in the trust, primary assets of which are 11
floating-rate loans having a Trust Mortgage Asset balance of
approximately US$793,950,000.

CONTACT:  Fitch Ratings
          Joseph Kelly
          Phone: 212/908-0329
          James Lee
          Phone: 212/908-0683 (New York)



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


ABBEY NATIONAL: To Dispose Non-Core Parts, Sells Leasing Division
-----------------------------------------------------------------
Abbey National is disposing non-core parts of its business,
starting with Porterbrook, the GBP1 billion train-leasing
division.

The bank is believed to have approached potential buyers for the
unit, which has a GBP870 million contract book with train
operators, and accounts for around one-third of the market.

It is expected that the sale of the unit will be one of the first
disposals to be announced at the bank's full-year results on 26
February.

Abbey National purchased Porterbrook from Stagecoach for GBP773
million in 2000.  The company has a rolling stock fleet of 4,000
vehicles, serving train operators such as Gatwick Express, South
West Trains and Chiltern Railways.  It competes with Angel
Trains, owned by Royal Bank of Scotland, and HSBC Rail being its
main competitors.

According to news agency Independent, it is unlikely that
authorities would allow a rival to acquire Porterbrook due to the
limited players in the sector.

Abbey's aircraft leasing business could follow the sale of
Porterbrook, the report says.


AMEY PLC Board Announces Detail of Preliminary Review
------------------------------------------------------
The Board of Amey plc announces the following financial
information in the wake of a report to the Board by Eric Tracey,
Acting Group Finance Director, who has completed a preliminary
review of the financial affairs of the company. The review
anticipates a successful outcome to current discussions with
lenders and the completion of a number of transactions before the
year-end, including the London Underground PPP and the commercial
completion of sales of the company's PFI portfolio and the Amey
Resource Management and Vectra businesses. The key points arising
are set out below.

The Group's operating activities in Transport and Business
Process Outsourcing have continued to perform well and in line
with the Board's expectations at the time of the interim results.

Amey Ventures' performance in the second half is likely to be
adversely affected by the further delay in the completion of the
London Underground PPP to the year end, and the recently
announced interim funding solution provided by our Tubelines
partners which will result in the deferral of recognition of an
element of the development income until exercise of our option.
Further adverse effects will arise as a result of a decision to
exit the millennium settlements partnership, and delays in the
closure of some PFI bids until the new year.  In addition, the
performance of the Technology Services companies has deteriorated
somewhat further during the disposal process. It is estimated
that the combination of all these items will reduce EBITA (pre
FRS 17 and exceptionals) for the full year to around GBP35
million.

EBITA (pre FRS 17) is also likely to be adversely affected by an
exceptional charge of around GBP15 million for the costs relating
to the discussions with lenders, the fees associated with the
disposal programmes and other reorganisation and redundancy
costs.

A rigorous review of balance sheet carrying values throughout the
Group is estimated to result in an exceptional non-cash charge at
the year end of GBP85 million before being offset by a tax credit
estimated at GBP20 million. The largest elements of that charge
arise from Croydon Tramlink, the effect of the PFI equity
disposal and a decision to provide for old construction balances,
albeit that recovery of the sums due will continue to be pursued.

A preliminary review of goodwill impairment indicates that a
write down of the goodwill arising from the Comax acquisition is
not considered necessary. As was made clear in the acquisition
documentation, the Comax business was acquired to equip the Group
with business process outsourcing capability and the intention
was to fully integrate the business into the wider company. This
has been achieved and the cashflows arising from additional
business won as a result of the Group's ownership of the Comax
capabilities are expected to support the goodwill carried on the
balance sheet.

A goodwill write down may prove necessary on the BCN investment
and there will be a loss on disposal of Amey Resource Management
Services, offset by a profit arising on the disposal of Amey
Vectra. In the event that the final reviews conclude that all the
BCN goodwill should be written off, the total write off could be
GBP20 million. No further goodwill write downs have been
identified by the review.

Year-end net debt is now expected to be higher than previously
anticipated due to a number of significant one off items and the
general commercial pressure which the Group is experiencing.
Before the receipt of the PFI and Technology Services disposal
proceeds which are not anticipated to be received until January,
but after the receipt of the LUL development fees net of the sum
placed in escrow in support of the interim funding solution, net
debt at the year end is likely to be in the range of GBP190
million to GBP200 million.

Interest costs will be correspondingly higher than previously
expected by some GBP2 million to GBP3 million in 2002.

Amey's discussions with its lenders are proceeding and the Group
considers that they remain supportive.

The actions determined by the Board in the summer, following a
strategic review, were designed to reduce the Group's cost base
and improve future cashflows. Good progress has been made on each
of the initiatives taken, with only the completion of the PFI
partnership and the sale process of the ATS businesses
outstanding, both of which are on course for commercial
finalisation before the year end. The strong possibility of the
London Underground PPP completing around the year end is also
very positive, bringing to an end a long running drain on the
Group's financial resources.

The sales and profits of the Group will be lower in the future as
a result of the proposed disposals, however the implementation of
the plans drawn up in the strategic review will enable the Group
to enter 2003 operating from a significantly lower cost base,
with an improved focus on its core support services activities.

CONTACT:  Anthony Cardew, CardewChancery
          Phone: 020 7930 0777


ARC INTERNATIONAL: Issues Details on Return of Capital
------------------------------------------------------
ARC International plc (LSE: ARK), a world leader in
semiconductors and software technology licensing, announces
further details on the company's intention to return GBP50m of
capital to shareholders before the end of the first half of 2003.

Following discussions with the company's advisers and
shareholders, the Board has reviewed alternative methods of
payment and believes that a share buy back will be the most
effective means by which to return capital.

The return of capital is subject to shareholder and other
approvals. A circular will be sent to shareholders as soon as
practicable, which will set out the details of the proposed share
buy back, convene an EGM to approve, inter alia, the reduction of
the share premium account, and authorise the creation of a new
distributable reserve.

Note:

For six months, the company's major shareholders have been trying
to return most of the company's GBP108 million cash reserve. Arc
International, which has a stock market value of o76 million, has
lost more than GBP12 million since January.

In November, the company announced that:
As a result of the strategic review, and following discussions
with shareholders, the Board believes that ARC has more than
sufficient working capital funding to bring the Group to
profitability on the basis of reasonably prudent assumptions.

Consequently, ARC's Board intends to return o50m of capital to
shareholders during the first half of the next calendar year in
order to optimise the company's capital structure and hence
shareholders potential for future returns.

The return of capital will be subject to shareholder and Court
approval. Following the return of capital, ARC will have a strong
balance sheet with sufficient cash resources to forge long term
relationships with existing and prospective partners, licensees
and suppliers, as well as having the flexibility to make modest
complimentary acquisitions where appropriate.


CABLE & WIRELESS: Moody's Cuts Long-term, Short-term Debt Grades
----------------------------------------------------------------
Uncertainties in Cable & Wireless' restructuring plan has caused
Moody's to downgrade its long-term debt ratings to Ba1 from Baa2
and the short-term debt ratings to Non-Prime from Prime-2 and
assigned it a negative outlook.

"The revised ratings consider our expectation that management
will be able to move Global to a free-cash--flow breakeven
position within C&W's operating year to March 2004; the negative
outlook reflects potential for further rating deterioration if
this does not occur," Moody's said in a statement Friday.

The Cable and Wireless long-term ratings affected by the
downgrade to Ba1 from Baa2 are the following:

- Cable & Wireless International Finance B.V.:

GBP200 million 8.625% gtd Eurobonds due 2019.


- Cable & Wireless Plc:

GBP200 million 8.75 % Eurobonds due 2012.

US$400 million 6.5% Eurobonds due 2003.

US$1,504 million zero coupon Exchangeable bond due 2003


The short-term rating has been downgraded to Non-Prime from
Prime-2.

Approximately US$2.5 billion of debt securities were affected by
the latest ratings cut.

Domiciled in London, UK, Cable and Wireless plc has customers in
70 countries, which are serviced by the company's two main
operating divisions, Cable & Wireless Global and Cable & Wireless
Regional. Cable & Wireless Global delivers voice, data and IP
solutions to business customers in three key markets of Europe,
the US and Japan. Cable & Wireless Regional acts as an incumbent
operator, with its largest business interest in the Caribbean and
Panama.

CONTACT:  Investor Relations
          Louise Breen
          Phone: +44 (0)20 7315 4460
          Caroline Stewart
          Phone: +44 (0)20 7315 6225


CABLE WIRELESS: Issues Response to Moody's Downgrade
---------------------------------------------------
Cable and Wireless plc has noted the decision of Moody's to
downgrade the long-term debt rating of the company from Baa2 to
Ba1 with negative outlook. The announcement follows a recent
meeting between Cable & Wireless management and Moody's with a
view to resolving the 'review for a possible downgrade' status
attached to Moody's previous Baa2 rating of Cable & Wireless.

As a consequence of the downgrade, a 'ratings trigger' clause
contained in the tax indemnity, which formed part of the
agreement put in place at the time of the disposal to Deutsche
Telekom of Cable & Wireless's 50% interest in One2One has now
become operative. This disposal was completed on 1 October 1999
for a total cash consideration of GBP3.45 billion. As is normal
in such a transaction, Cable & Wireless provided Deutsche Telekom
with an indemnity in the event of the Inland Revenue assessing
tax liabilities against the companies sold by Cable & Wireless to
Deutsche Telekom.

The ratings trigger clause includes a requirement that, whether
or not there is a liability under the tax indemnity, if Cable &
Wireless's rating falls below Moody's 'Baa' category, Cable &
Wireless will either: (a) procure a guarantee in the sum of GBP
1.5 billion from an 'A' rated bank or (b) place the sum of GBP
1.5 billion into escrow. At the time of the disposal of its
interest in One2One, Standard & Poor's rated Cable & Wireless 'A-
', and Moody's 'A3'.

Cable & Wireless has received advice from leading tax counsel and
its legal and tax advisers confirming that there is no tax
liability to which the requirement described above relates and
that Cable & Wireless's sale of its 50% interest in One2One did
not give rise to a taxable gain. That advice remains unchanged.

Based on its current cash balances (approximately GBP 3.8 billion
gross cash and GBP 2.2 billion net cash as at 30th September,
2002) and the value of its quoted investments (approximately GBP
470 million as at 5th December, 2002), the Directors re-affirm
that, on the basis of current trading conditions, Cable &
Wireless has sufficient financial flexibility to implement its
restructuring of Cable & Wireless Global and to meet its debt
obligations. Cable & Wireless's expectation that Cable & Wireless
Global will become free cash flow positive by the fourth quarter
of its 2003/04 financial year, as announced on November 13, is
unaffected.

CONTACT:  David Prince, Group Finance Director
          Phone: +44 20 7315 4905

          Investor Relations:
          Louise Breen
          Phone: +44 20 7315 4460
          Caroline Stewart
          Phone: + 44 20 7315 6225
          Virginia Porter
          Phone: + 1 646 735 4211


COLT TELECOM: Outlines Summary of Defense Against Highberry
-----------------------------------------------------------
COLT Telecom Group plc (COLT) will begin its defense against
Highberry Ltd's administration petition. COLT emphatically denies
Highberry's allegations, and believes that the petition is
without merit.

An interview with Steve Akin, COLT President and CEO, may be
viewed at www.cantos.com.

In summary, COLT's arguments are outlined below:

The total outstanding principal value of the Notes issued by COLT
is GBP1.1 billion. The Notes are long term and are not due to be
repaid until various dates between 2005 and 2009. COLT has paid
all its interest obligations to date on the Notes on time and in
full.

Highberry has acquired GBP75 million of COLT Notes in the market
at a discount from their principal value. The earliest date on
which the principal sum is due to be repaid on any of the Notes
held by Highberry is 2006, others not falling due until 2009.

COLT's balance sheet as at 30 September 2002, which was subject
to an interim review by its auditors, PricewaterhouseCoopers,
showed a strongly solvent position (net assets totalling GBP977
million). At that date, the Group had aggregate cash balances of
GBP978 million. This net asset value is after taking an
impairment charge under FRS11 (for which COLT used a cost of
capital of 13.7%).

COLT believes that it will be able to pay its debts when they
fall due including repayment of the notes (in 2005 to 2009).
COLT's evidence will include the following information based on
its internal projections:

COLT expects to be cash flow positive during 2005.

COLT expects to generate higher net cash flows than current
market expectations as a result of lower capital expenditure. In
its longer-term projections COLT has made what it believes to be
prudent assumptions regarding revenue and EBITDA with revenue and
EBITDA projections cumulatively over the period to 2009 being
lower than current market expectations.

COLT believes it will be able to obtain finance in the future on
reasonable terms. The external financing that may be required is
expected to amount in aggregate to significantly less than the
amount of EBITDA expected in 2006.

COLT believes that Highberry's strategy is to make a speculative
profit from its acquisition of Notes at a discounted price, and
that Highberry is seeking to achieve such profit by forcing an
unjustified transfer of value from shareholders to noteholders.
The administration petition is, COLT believes, part of that
strategy.

COLT intends to defend the interests of all its stakeholders
vigorously and looks forward to a successful outcome from this
hearing.

CONTACT:  COLT TELECOM GROUP PLC
          John Doherty
          Director Investor Relations
          Phone: +44 20 7390 3681

          Tom Buchanan / Jonathan Glass
          Brunswick
          Phone: +44 20 7404 5959


INDIGOVISION GROUP: Takeover Talks Caught in Major Glitch
---------------------------------------------------------
Talks regarding the takeover of loss-making video technology
provider, Indigovision, stumbled upon a major stumbling block
after it emerged that the computer chip used in the group's
products is already obsolete, The Scotsman says.

But Indigo chief executive, Oliver Vellacott, assured, they are
developing a "next generation product" that is expected ready by
next year.

According to the report, Indigo has been working for most of the
last year to build a replacement for the chip, called VCPex,
using a combination of Intel and Texas Instrument chips.  The
predecessor chip was manufactured by US manufacturer 8X8.

Mr. Vellacott said he was not aware whether the third parties
involved in the negotiations have knowledge of the technology
transition.

Acquisitor, the investor playing a central role in the sale
talks, is believed to have discovered the problem only in the
last few days, says the report.

The takeover of the Edinburg-based company is understood to mean
breaking up of the business and returning cash to shareholders.
The group, which has been hit by the slump in technology stock,
is valued at around GBP15 million. It is still currently peddling
its technology, which allows video clip s to be sent over the
Internet.


MARCONI PLC: Sells New Multiservice Switch-Router Platform
----------------------------------------------------------
Marconi (MONI) announced the sale of its new multiservice switch-
router, the BXR-48000, to a leading European financial
institution. This is the first sale of the BXR-48000 in Europe
and the first into a commercial customer. The initial sale of the
BXR-48000 came in September to the United States federal
government.

The BXR-48000 is a 480 Gbps protocol-agnostic switch-router
designed specially to overcome the limitations of traditional
networks while helping operators and enterprises to evolve to
more efficient packet-based networks.

About Marconi plc

Marconi plc is a global telecommunications equipment and
solutions company headquartered in London. The company's core
business is the provision of innovative and reliable optical
networks, broadband routing and switching and broadband access
technologies and services. The company's aim is to help fixed and
mobile telecommunications operators worldwide reduce costs and
increase revenues.

The company's customer base includes many of the world's largest
telecommunications operators. The company is listed on the London
Stock Exchange under the symbol MONI. Additional information
about Marconi can be found at www.marconi.com

Note:

Troubled British telecoms equipment maker Marconi has posted a
6% drop in second-quarter core sales to GBP482 million compared
to the previous quarter, as market conditions continue to worsen.

CONTACT:  MARCON PLC
          Joe Kelly
          Public Relations
          Marconi PLC
          Phone: +44 (0) 207 306 1771
          E-mail: joe.kelly@marconi.com

          Heather Green
          Investor Relations
          Phone: +44 (0) 207 306 1735
          E-mail: heather.green@marconi.com


SOMERFIELD: Announces Sale and Leaseback of Lea Green
-----------------------------------------------------
In line with its previously announced policy for financing
development of its distribution infrastructure, Somerfield plc
announces today the sale of the freehold land at Lea Green, St
Helens, Merseyside to Prudential Assurance company Limited for
GBP37.6 million, and the simultaneous commitment to a leaseback
of the property.

Somerfield is currently constructing a new distribution centre on
the Lea Green site which will cover 56,996 square metres and
comprise a multi-temperature regional distribution centre with
servicing facilities. Construction is expected complete in May
2003 and the centre should be fully operational by July 2003. The
centre will service Somerfield and Kwik Save stores in the
Midlands and North West.

The GBP 37.6m sale price is payable in cash on completion. The
book value of the assets included in the sale estimated at the
assumed value on completion is GBP 25.4m. The costs to be
incurred on the sale are estimated at GBP 0.4m. The net proceeds
will be used for general corporate purposes including continuing
investment in the successful refits of Somerfield stores, the
supply chain and IT systems.

The lease will be for 25 years at an initial rent of GBP 2.8
million per annum, in line with the market rent for similar
facilities, with 5 year rent reviews. The Mason Owen (Liverpool)
advised the company in this transaction.

Commenting on the sale and leaseback, John von Spreckelsen,
Executive Chairman of Somerfield plc, said:

"The construction of the new distribution centre at Lea Green is
a further key element of our plan to streamline the supply chain.
Running fewer, larger multi-temperature distribution centres will
improve operating efficiencies in depots and product availability
in stores."

CONTACT:  Somerfield
          Gordon Wotherspoon, Group Property Director
          Phone: 0117 935 9359

          Cubitt Consulting:
          Fergus Wylie
          Phone: 020 7367 5100


                                  **************

        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, Ma. Cristina Canson, and Laedevee
Gonzales, Editors.

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

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