/raid1/www/Hosts/bankrupt/TCREUR_Public/021213.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

                   Friday, December 13, 2002, Vol. 3, No. 247


                              Headlines

* A U S T R I A *

PLAUT AG: Standard & Poor's Changes Outlook on Liquidity Concern

* F I N L A N D *

SONERA CORP: Court Appoints Tuokko as Certified Accountant

* F R A N C E *

DAEWOO: To Announce Closure of Television Factory in Fameck
FRANCE TELECOM: Successfully Launched EUR2.5 Billion Bond Issue

* G E R M A N Y *

COMMERZBANK AG: Moody's Lowers Rating, Assigns Stable Outlook
EM.TV: Stops Banks From Selling Stake in SLEC Holdings
HVB GROUP: Moves to Specialize in German Blue Chips
MUNICH RE: S&P Cuts Munich Re and Core Subsidiary to 'AA+'

* G R E E C E *

OLYMPIC AIRWAYS: Government Issues Statement on EC Decision

* I T A L Y *

LAZIO: Board Proposes up to EUR80 Million Capital Increase

* P O L A N D *

ELEKTRIM SA: Financial Advisors Request Acknowledgement

* S P A I N *

COVANTA ENERGY: Court OKs Dissolution of 2 Spanish Subsidiaries

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

CREDIT SUISSE: Focuses on Private Banking in Spain
CREDIT SUISSE: CSAM Announces Record Sales for 2002

* U N I T E D   K I N G D O M *

BAE SYSTEMS: New Problems Plague Submarine and Aircraft Program
BRITANNIC PLC: Announces Acquisition of Britannic Money
CABLE & WIRELESS: Caribbean Operation Under Threat - Analysts
CABLE & WIRELESS: May Use up Cash Reserve Within a Year
CABLE & WIRELESS: Shareholder Group Demands Investigation
CABLE & WIRELESS: Runs to Bankers to Obtain Support
GLAXOSMITHKLINE: Sells GSK Manufacturing Facility at Montrose
LONDON CLUBS: Refuses Takeover Bid of Stanley Leisure
NAVAN MINING: Issues Statement on Suspension of Shares


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


PLAUT AG: Standard & Poor's Changes Outlook on Liquidity Concern
----------------------------------------------------------------
Standard & Poor's Ratings Services placed the 'B' long-term
corporate credit rating of Plaut AG on CreditWatch with negative
implications.

Standard and Poor's credit analyst, Andre Rashid, said the action
reflects "continuing negative free cash flow generation deriving
from depressed market conditions and high working capital
requirements," which made the Austrian IT service and consulting
group dependent on short-term credit lines.  The credit lines are
currently being renegotiated.

The rating agency noted that the group's cash reserve dwindled
from EUR19 million at the end of last year to EUR13 million at
September 30, 2002.  It also observed that the company had
already used EUR16 million of its EUR25 million 365-day bank
lines.

The negative free cash flow of the group stemmed from high
working capital level over the past year that was not tempered
even by reduced working capital requirements.

Free cash flow for the first nine months of the year is negative
EUR3 million.  Plaut's turnover is down to EUR162 million in the
first nine months of 2002, from EUR212 million for the same
period in 2001.

Fitch predicts that customer discretionary-spending patterns, and
increasing competition to continue to pressure Plaut's credit
profile.

The rating agency says it remained cautious about prospects for a
recovery in the industry in the near term.


=============
F I N L A N D
=============


SONERA CORP: Court Appoints Tuokko as Certified Accountant
----------------------------------------------------------
The District Court of Helsinki has, at the request of Sonera Oyj,
appointed Mr. Yrjo Tuokko Certified Accountant, Tuokko
Tilintarkastus Oy as a trustee to look after the interests of
absent shareholders during the redemption of the minority shares
in Sonera Oyj under Chapter 14, Section 19 and Chapter 16,
Section 5 of the Finnish Companies Act. The contact information
of the trustee is available at the Finnish Trade Register or at
Sonera Corporation, Investor Relations, telephone number +358
2040 54254 or +358 2040 58930.

Sonera Corporation (HEX: SRA, NASDAQ: SNRA) is a leading provider
of mobile and advanced telecommunications services. Sonera is
growing as an operator, as well as a provider of transaction and
content services in Finland and in selected international
markets. The company also offers advanced data solutions to
businesses, and fixed network voice services in Finland and
neighbouring markets. In 2001, Sonera's revenues totaled EUR 2.2
billion, and profit before extraordinary items and taxes was EUR
0.45 billion. Sonera employs about 7,400 people. www.sonera.com

CONTACT:  SONERA CORPORATION
          Jyrki Karasvirta,
          Vice President, Acting Head of Corporate Communications


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


DAEWOO: To Announce Closure of Television Factory in Fameck
-----------------------------------------------------------
Daewoo, the South Korean industrial group, is set to announce the
closure of its television factory in Fameck, Moselle, France,
says Le Figaro.  The move follows an earlier closure of a
microwave factory, which employed 229 people in Villers-la-
Montagne.

A redundancy plan has been decreed for all 170 employees at the
Fameck factory, pursuing the 90 redundancies and 20 voluntary
departures at the start of the year.  The scheme is to continue
production until December 20 before relocating to Poland.

Meanwhile, the Daewoo Orion cathode ray tube factory in Lorraine
is also under threat of closure.  A court has given the plant
until 9 January to show it can regularly pay wages and social
charges.

Daewoo Auto (formerly Daewoo Motor) is part of General Motor's
family.  Korea's no.2 automaker behind Hyundai is beset by
financial woes.  Parent Daewoo Heavy attempted to put the company
up for sale but failed after the unit fell into bankruptcy after Ford
withdrew its offer.

CONTACT:  GM DAEWOO AUTO & TECHNOLOGY COMPANY
          199 Chongchon-dong, Pupyong-ku
          Inchon, South Korea
          Phone: +82-32-520-2114
          Fax: +82-32-520-4658
          Home Page: http://www.daewoomotor.com


FRANCE TELECOM: Successfully Launched EUR2.5 Billion Bond Issue
---------------------------------------------------------------
This bond issue is the first step of the refinancing block of the
" 15 + 15 + 15 " program

France Telecom today announced the launch of its medium term
bond issue. The issue size is EUR 2.5 billion with the following
characteristics:

Currency  Maturity  Format   Amount   Coupon  Reoffer spread
Euro    7 years      Fixed rate  EUR 2,5bn  7%    Euribor+290pb

For France Telecom, the funding cost of this tranche shows a
fixed rate of 7.165%

The size and quality of the order book confirms institutional
investors' confidence in France Telecom's credit quality.
Initially expected to be EUR1.5 billion, the transaction was
finally set at EUR2.5 billion within 24 hours.

This issue is the first step of the EUR6 billion refinancing
program announced for 2003. The objective of this bond issue is
to refinance the existing debt. It is part of the three blocks of
the "15 + 15 + 15" plan announced on December 5.

Placement was executed by ABN AMRO, Barclays Capital, BNPP,
Credit Agricole Indosuez and Societe Generale, joint-leads in
this transaction.

The securities offered have not been registered under the
Securities Act of 1933 and may not be offered or sold in the
United States, absent registration or an applicable exemption
from the registration requirements of the Securities Act.


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


COMMERZBANK AG: Moody's Lowers Rating, Assigns Stable Outlook
-------------------------------------------------------------
Moody's Investors Service downgraded the long-term deposit and
debt ratings and the financial strength rating of Commerzbank AG
from A1/B- to A2/C, respectively.  The outlook for the ratings is
stable.

In conjunction, Moody's also lowered the long-term ratings and
FSRs of some of the group's subsidiaries.

The rating agency also confirmed the Prime-1 ratings of all of
the group's rated entities for short-term deposits and commercial
paper, with the exception of Hypothekenbank in Essen; and changed
to stable from negative the outlook on the long- and short-term
debt and deposit ratings.

Moody's meanwhile placed EssenHyp's long- and short-term debt and
deposit ratings (A2/P-1) and its mortgage and public sector
Pfandbrief ratings (Aa2 and Aa1 respectively) on review for
possible downgrade.

The ratings downgraded are:
Commerzbank AG:

senior unsecured debt and deposits to A2;
long-term issuer rating to A2;
subordinated debt to A3;
Tier III debt to Baa1; financial strength to C.

Commerzbank International S.A. (Luxembourg):
senior unsecured debt and deposits to A3;
subordinated debt to Baa1.

Commerzbank Europe (Ireland):
senior unsecured long-term deposits to A2;
long-term issuer rating to A2.

CB Finance Company B.V.:
senior unsecured debt to A2;
subordinated debt to A3.

Commerzbank Overseas Finance N.V.:
senior unsecured debt to A2;
subordinated debt to A3.

Commerzbank U.S. Finance Inc.:
senior unsecured debt to A2.

Commerzbank AG, Paris Branch:
senior unsecured deposits to A2.

Commerzbank AG, London Branch:
senior unsecured debt to A2.

Commerzbank AG, Hong Kong branch:
senior unsecured debt to A2.


Ratings placed on review are:

Commerzbank AG:
short-term debt and deposits at P-1.

Commerzbank International S.A.(Luxembourg):
short-term debt and deposits at P-1;
financial strength at C.

Commerzbank Europe (Ireland):
short-term deposits at P-1;
financial strength at C-.

CB Finance Company B.V.:
short-term debt at P-1.

Commerzbank Overseas Finance N.V.:
short-term debt at P-1.

Commerzbank U.S. Finance Inc.:
short-term debt at P-1.

Commerzbank AG, Paris Branch:
short-term deposits at P-1.

Commerzbank AG, London Branch:
commercial paper at P-1.

Commerzbank Europe Finance (Ireland) plc:
commercial paper at P-1.

Commerz Europe (Ireland), Inc.:
commercial paper at P-1.

Hypothekenbank in Essen AG:
financial strength at C.

The action reflects the group's low recurring earning power and
lower economic capitalization.  Moody's noted that the company's
franchise has weakened, particularly in investment banking and
asset management.

The new ratings and their stable outlook still reflect
Commerzbank group's position as one of Germany's major financial
institutions with a stable franchise in retail and commercial
banking.


EM.TV: Stops Banks From Selling Stake in SLEC Holdings
------------------------------------------------------
Bankrupt EM.TV & Merchandising AG successfully prevented banks
from selling a 16.7% indirectly held minority stake in SLEC
Holdings.  The holding was placed as security after the German
company sold Formula One to Kirch in 2001.

A court in British channel of Jersey granted the media group the
preliminary injunction that prohibited banks, including
Bayerische Landesbank, J.P. Morgan Chase & Co. and Lehman
Brothers Inc. from going forward with the sale.

The motion to divest the holding was triggered after creditors of
bankrupt KirchMedia indicated to sell Kirch's Formula One holding
to pay off debt.

EM.TV & Merchandising distributes and produces cartoons and is
active in TV licensing and TV-related merchandising.  The company
has a cache of 30,000 cartoon episodes marketed under the Junior
banner.  Aside from owning a stake in Formula One racing circuit,
EM.TV also owns The Jim Henson Company as well as stakes in TV
and film rights firm Tele Munchen Gruppe (45%), film company
Constantin Film (16%).

CONTACT:  Thomas Mosig
          Investor Relations
          EM.TV & Merchandising AG
          Betastrasse 11
          D-85774 Unterf"hring
          Phone: + 49 (0) 89 995 00-451
          Fax: + 49 (0) 89 995 00-466
          E-Mail: info@em-ag.de


HVB GROUP: Moves to Specialize in German Blue Chips
---------------------------------------------------
In its equity operations for professional customers, HVB Group
specializes in German stocks.  In pursuit of this strategy, HVB
Corporates & Markets continues to bundle its resources in its
cash equity business.

"We are concentrating on the top German blue chips in DAX and
MDAX with the aim of systematically expanding our already strong
position in this field," Hans-Gunther Bonk, co-head of Equities
in the Equities & Brokerage Service division, describes the
strategy.

"We want to be the first choice for European institutional
customers trading German equities." The move represents a further
step in the implementation of the process started in October 2002
by merging the equity cash and derivatives operations.

With this reorientation on German blue chip stocks, the available
resources of Equity Research are to be focused on core
operations, while non-core activities are to be discontinued.
"The only survivors on the marketplace will be the players who
deliver top quality in a clearly defined field and who set
themselves apart from mass producers," states Vassilios Pappas,
Bonk's co-head at the Equity division, describing the intention
behind the new direction.

Consequently, a new structure is being implemented at Equity
Research. Georg Sturzer, 37, and Andreas Heine, 38 will jointly
lead the research for single stocks, Gerhard Schwarz, 33, will
retain responsibility for quantitative research, while the head
of macroresearch is still to be named. The heads of each unit
will report directly to the heads of the Equity division
reflecting the significance of these units. The Private Banking
Research unit under Manfred Lindermayer, 45, will be part of the
HVB Wealth Management in future.

With some 170 employees, the equity business of HVB Corporates &
Markets handles a daily volume in excess of EUR500 million. This
quantity makes HVB Corporates & Markets one of the three biggest
brokers in Germany.

CONTACT:  HVB GROUP
          Presseabteilung
          Am Tucherpark 16
          80538 Munchen
          Phone: (089) 378-2 58 01/-2 55 12
          Fax: (089) 378-2 56 99
          Dr. Knut Hansen
          Phone: 089/378-24644
          E-mail: knut.hansen@hvbgroup.com


MUNICH RE: S&P Cuts Munich Re and Core Subsidiary to 'AA+'
---------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
counterparty credit and insurer financial strength ratings on
Germany-based leading global reinsurer Munich Reinsurance Co. and
related entities, including Ergo group companies, to 'AA+' from
'AAA'.  The outlook is stable.

At the same time, Standard & Poor's lowered its long-term
counterparty credit ratings on Ergo Versicherungsgruppe AG, the
holding company for the Ergo group, to 'AA' from 'AA+'. The
outlook is stable.

The rating action is mainly a result of the Munich Re group's
reduced level of capitalization and the fact that, despite
underlying improvements in the results of the reinsurance
business, its earnings performance has been disappointing
recently, hit by a combination of adverse factors.

Munich Re's capital strength and financial flexibility have been
considerably weakened by the effects of the volatile capital
markets, as well as by the group's below-target profitability.
This has been compounded by the group's substantial exposure to
German insurer Allianz AG (Allianz; AA/Negative/A-1+) and to the
troubled German banking sector.

"Munich Re's capital adequacy is no longer supportive of Standard
& Poor's highest ratings," said Standard & Poor's credit analyst
Wolfgang Rief. "Nevertheless, the group's financial leverage is
very low, and the quality of its franchise means that raising
capital, both debt and equity, would remain an available option
for the group despite the difficult capital market conditions,"
added Mr. Rief.

Of the group's invested assets, approximately 10% comprises
stakes in members of Allianz, representing a high asset
concentration. Furthermore, Allianz is, to a large extent,
affected by the same economic and commercial factors as Munich
Re. In addition, Munich Re is highly exposed to the loss-making
German banking sector, both indirectly through Allianz's holdings
in Dresdner Bank AG (A+/Negative/A-1), and also directly through
its own 26% holding in Bayerische Hypo- und Vereinsbank AG (A-
/Negative/A-2) and its 10% stake in Commerzbank AG (A-
/Negative/A-2).

Overall profitability has recently been disappointing. The
group's net operating profit, at EUR3.2 billion for the first
nine months of 2002, was negatively affected by write-downs on
securities of EUR1.973 billion, reserve strengthening of EUR1.809
billion at American Re-Insurance Co. (American Re; AA-/Negative/-
-), and flood claims of EUR249 million, but positively affected
by EUR4.7 billion in gains from the restructuring deal with
Allianz. Without this gain, however, 2002 is proving a poor year,
following on from a poor 2001, which was influenced by World
Trade Center-related (WTC) claims. Despite clear signs of
improvement in the group's underlying profitability, the combined
ratio of 105.7% -- including the floods and excluding the effect
of late reserving for American Re and WTC -- indicates a slower-
than-expected recovery.

The ratings continue to reflect Munich Re's position as a leading
worldwide reinsurer, with a first-class global reputation. The
group leads many of the markets in which it operates, and,
because of its substantial capacity and comprehensive
underwriting skills, it is benefiting from large cedents' 'flight
to quality' in the global reinsurance market. Standard & Poor's
expects Munich Re to exploit this franchise strength in the
medium term.

Underlying market fundamentals drives the outlook. Given its
dominant market position, the group is expected to produce very
strong earnings in 2003 and 2004. Combined ratios below 100% at
this point in the cycle would be consistent with Munich Re's
stated objective of achieving a combined ratio of 104% across the
cycle. "Failure to achieve these levels of profitability could
put further pressure on the ratings," said Mr. Rief.
"Nevertheless, the group's capital is expected to be restored to
levels consistent with the ratings in the medium term," added Mr.
Rief. Munich Re's expected earnings and capital growth should
offset concerns regarding the concentration of its assets in
Allianz and the German banking sector.

CONTACT:  Standard & Poor's
          Wolfgang Rief, Frankfurt
          Phone: (49) 69-3 39 99-190
          Rob Jones, London
          Phone: (44) 20-7847-7041
          Laline Carvalho, New York
          Phone: (1) 212-438-7178
          Karin Clemens, Frankfurt
          Phone: (49) 69-3 39 99


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


OLYMPIC AIRWAYS: Government Issues Statement on EC Decision
-----------------------------------------------------------
The Minister of Transport and Communications, Mr. Christos
Verelis, has stated the following in relation to the European
Commission's decision with regard to Olympic Airways:

- The Hellenic Air Carriers Association submitted on 12 October
2000 and 14 July 2001 complaints to the European Commission
against the Hellenic Republic and Olympic Airways.  The complaint
stated that the Hellenic Republic continued to grant Olympic
Airways unlawful State aid.  Following submission of the
complaint, the Commission was asked by Commissioner Loyola de
Palacio to investigate further.

- The impending decision of the Commission does not satisfy those
who tried to drive Olympic Airways into bankruptcy and
simultaneously benefiting by taking its market share in both
domestic and international routes.  Until the very last moment,
there were attempts to ensure that Olympic Airways repay the
entire amount of aid granted to it since 1994.

- In the end, the decision seeks to recover EUR41,000,000,
representing the last installment of aid granted to Olympic
Airways in 1998.  It does NOT seek to recover EUR300,000,000 or
EUR200,000,000, according to current speculation.  At the same
time the Hellenic Republic is asked to assess the extent to which
Olympic Airways benefited from privileged treatment in relation
to VAT payments, social security contributions, the purchase of
spare parts, and airport charges etc. as compared to treatment of
other carriers.  It seeks recovery of these unpaid amounts, which
have been tolerated over the last two years, in accordance with
the Greek legal order.

- The quantification [of these unpaid amounts] presented by the
Commissioner and found in Article 2 of the decision is arbitrary,
even including OA transactions with the private sector.  It is
considered that this quantification will be found unsustainable
during proceedings before the courts.  It should be noted that in
the executive part of the decision no quantification is
mentioned.

- The decision of the European Commission will be challenged
before the relevant Community courts using all possible remedies,
in particular, an action for annulment and an application for
interim relief.  It should be recalled that similar decisions of
the European Commission had been annulled in recent years and,
this is expected to be the case with regard to Olympic Airways.

- It is important to note that the Commission decision will not
prevent the continuation of the OA privatization process and will
not threaten operations of Olympic Airways, which will continue
to operate until privatization is fully implemented.

- The Greek government fully respects the decision and will
implement it in accordance with Greek legal order as demanded by
the decision.

- In conclusion, this decision will not prevent OA from
continuing to operate, contrary to speculation that the decision
will be fatal to OA.

- It is also clear that the amount of money that OA will be asked
to repay, will only be recovered by the Hellenic Republic, and no
repayment of any kind i.e. a fine, will be made to the EU, which
means that the Greek tax payer will not bear the cost.


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


LAZIO: Board Proposes up to EUR80 Million Capital Increase
----------------------------------------------------------
The board of soccer club Lazio plans to launch a EUR70 to EUR80
million capital increase for the troubled Italian football club.

A board meeting is scheduled on Thusday to present and vote on
the plan, a spokesman told Reuters without specifying the mode on
which the amount would be raised.

Troubled Italian food group Cirio is putting its 51%-owned club
up for sale as part of an emergency restructuring after defaulting
on more than EUR1 billion of bonds last month.  Lazio president
Sergio Cragnotti expects to raise EUR150 million (US$149
million) from the sale.

According to the report, an analyst said that the capital
increase might be the first step to Cirio losing its control of
Lazio.  The source added that, after the capital increase, Cirio's
stake may fall to between 30 to 32%, while shareholders,
including Capitalia and Banca Nazionale del Lavoro, will increase
their holdings to up to 46%.

In September Lazio said its losses increased in the year to June
30 to EUR54.4 million from EUR16 million a year earlier, due to
the club's early exit from the Champions League.

CONTACT: CIRIO
         Phone: ++39 06 4145700
         Fax: ++39 06 4145729
         Home Page: http://www.cirio.it


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


ELEKTRIM SA: Financial Advisors Request Acknowledgement
-------------------------------------------------------
The Management Board of Elektrim S.A. announces that on 10
December 2002 it received a notification that Merrill Lynch & Co.
Inc., Merrill Lynch International Inc. and Paul Pittman request
acknowledgement by Elektrim S.A. of liability for damages
resulting from the agreement dated 25 January 1999 pursuant to
which Elektrim S.A. engaged Merrill Lynch International Inc. to
provide financial advisory services.

The above request for acknowledgement is related to the claim
filed on 23 September 2002 against Merrill Lynch & Co. Inc.,
Merrill Lynch International Inc. and Paul Pittman by PenneCom
B.V. PenneCom B.V. claims damages from the respondents relating
to their undertaking unlawful actions they have been accused of
in connection with their rendering advisory services to Elektrim
S.A. pursuant to the above mentioned agreement. The damages
claimed from Merrill Lynch & Co. Inc., Merrill Lynch
International Inc and Paul Pittman are in excess of
USD 100,000,000. The request received by Elektrim S.A. is
analyzed by Elektrim's Management Board.


=========
S P A I N
=========


COVANTA ENERGY: Court OKs Dissolution of 2 Spanish Subsidiaries
---------------------------------------------------------------
Ogden International Europe Inc., one of Covanta Energy
Corporation's debtor-affiliates, obtained the Court's authority
to consent to the voluntary filing for bankruptcy of Ogden
Spain, S.A. and liquidation of Ogden Entertainment Services
Spain, S.A. pursuant to Section 363(b)(1) of the Bankruptcy Code
and Rules 2002(a), 9006(f), 6004(g) and 7062 of the Federal
Rules of Bankruptcy Procedure.

Judge Blackshear authorizes Ogden International Europe, Inc., to
approve the voluntary bankruptcy proceedings of its Spanish
subsidiary Ogden Spain S.A. and the liquidation of Ogden
Entertainment Services Spain, S.A.  Furthermore, the Debtors and
their subsidiaries are authorized to incur costs not to exceed
$225,000 in connection with the voluntary proceedings of Ogden
Spain and not to exceed $30,000 in connection with the
liquidation of Ogden Entertainment, which amount have been
included in the Debtors' DIP budget. (Covanta Bankruptcy News,
Issue No. 18; Bankruptcy Creditors' Service, Inc., 609/392-0900)


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


CREDIT SUISSE: Focuses on Private Banking in Spain
--------------------------------------------------
Credit Suisse is bringing its banking activities in Spain into
line with its overall European strategy on private banking,
focusing exclusively on this segment. Credit Suisse will continue
to be present in the country's eight main financial centers,
covering 80% of the potential Spanish market.

Credit Suisse in Spain will continue to be present in Madrid,
Barcelona, Sevilla, Pamplona, Valencia, La Coruna, Bilbao and
Palma de Mallorca, covering 80% of the potential Spanish market.
The new business focus involves merging the offices in Gerona,
Lerida and Tarragona with that of Barcelona. Additionally, the
two units in Madrid will be merged into a single centre, as will
the two in Barcelona. This adaptation to the organizational
structure includes a negotiated reduction in the bank's current
workforce of 140 employees.

The market downturn and its impact on the banking sector have
prompted the bank to focus on its core competence, private
banking, as announced in August this year.

The measures taken by Credit Suisse in Spain are intended to
ensure profitability by controlling costs and investments, whilst
at the same time remaining responsive to clients' requirements
with individual and comprehensive products and services. Even
after this reorganisation, the bank's total number of employees
in Spain will have increased by more than 60 compared to the
total in the year 2000, following a major investment in top
quality professionals and thanks to a reinforced team of
specialists for private banking clients.

Credit Suisse remains strongly committed to the Spanish market,
which is one of the key markets for further developing its
European private banking business.

Credit Suisse Private Banking is one of the world's largest
providers of private banking services. It is strongly represented
on both the Swiss and international markets, and serves a total
of approximately 300,000 clients. Credit Suisse Private Banking
specializes in providing personal investment advice and
professional asset management for discerning private clients. It
has assets under management amounting to CHF 494 billion (as at
the end of the third quarter 2002). Clients may choose from a
broad spectrum of investment products and services, as well as
the full range of basic and credit products, on offer in 50
offices in Switzerland and a further 35 offices in the rest of
the world.


CREDIT SUISSE: CSAM Announces Record Sales for 2002
---------------------------------------------------
Credit Suisse Asset Management Funds (UK) (CSAM) is delighted to
announce record gross sales of over GBP 880 million, one year on
from acquiring SLC Asset Management (SLCAM), the former principal
U.K. asset management subsidiary of Sun Life Financial of Canada,
acquired in December 2001.

In light of the enormous success of the Credit Suisse Income
Funds managed by Bill Mott and Leigh Harrison, which have had
record inflows, Leigh Harrison will be handing over some of his
U.K. growth responsibilities so that he can focus on maintaining
the stellar performance of the equity income funds. Under Leigh's
management since October 1999, the CS Extra Income Fund is ranked
9th out of 75 funds in the U.K. equity income sector and has
returned 5.93%, outperforming the sector average by a staggering
19.63%.

In January, Crispin Finn will take over the day-to-day management
of the CS Growth Fund and Richard Colwell becomes the lead
manager for the CS Growth & Income Fund and the CS Managed Assets
Fund.

Crispin has managed the CS Smaller Companies Fund (formerly the
SLC Smaller Companies Fund) since July 1999. Under his
management, the Fund has delivered top decile performance and has
risen by 13.13% outperforming the sector average by more than 25%
over the same time period. Crispin's experience is not limited to
small cap portfolios. Prior to CSAM's acquisition of SLCAM, he
was responsible for the management of a variety of specialist U.K.
equity funds.

Richard Colwell who has eight years of investment experience
joined CSAM in June this year from Schroder Investment
Management. He has been working closely with Leigh and Crispin
and is a key member of the U.K. equity team at CSAM. At Schroders
he was a portfolio manager for five years as well as an analyst
covering the pharmaceutical sector. Richard started his career at
the Bank of England, working as an analyst in both the Economics
and Banking Supervision Divisions.

Adam Holmes will assume responsibility for the CS European Fund.
Adam is an experienced fund manager with over 19 years of
industry experience. He joined CSAM in January 2002 from SLC
where he was responsible for the management of a number of
European equity portfolios.

Ian Chimes, Managing Director of Credit Suisse Asset Management
commented: "We've got some great fund managers in our U.K. equity
team who have produced extremely impressive performance in a very
difficult market. Our message of strength in depth is really beginning to
penetrate and these changes reflect the ability of all our members of the
team to play an active part in managing portfolios. We are confident that
the team we have put together will continue to produce the performance
that intermediaries have come to expect from Credit Suisse."

Source of performance figures Standard & Poor's, bid/bid, net
income reinvested, period to 9 December 2002. Over a five year
period, the CS Extra Income and CS Smaller Companies Funds have
returned 22.08% and 24.57% respectively. Past performance is not
necessarily a guide to future returns. The price of shares and
income from them may fall as well as rise and is not guaranteed.

Credit Suisse Asset Management is the institutional and mutual
fund asset management arm of Credit Suisse First Boston, part of
the Credit Suisse Group, one of the world's largest financial
organizations with approximately GBP 524.2 billion in assets
under management. Credit Suisse First Boston (CSFB) is a leading
global investment bank serving institutional, corporate,
government and individual clients. CSFB's businesses include
securities underwriting, sales and trading, investment banking,
private equity, financial advisory services, investment research,
venture capital, correspondent brokerage services and asset
management. CSFB operates in 77 locations in 36 countries across
six continents. The Firm is a business unit of the Zurich-based
Credit Suisse Group, a leading global financial services company.
For more information on Credit Suisse First Boston, please visit
our Web site at www.csfb.com.

As of September 30, 2002, Credit Suisse Asset Management employed
2,270 people worldwide and had global assets under management of
approximately GBP 181.8 billion. Please note that this is not an
offer for advisory services by Credit Suisse Asset Management.
For more information on Credit Suisse Asset Management, please
visit our Web site at www.csam.com.

Issued by Credit Suisse Asset Management Funds (U.K.) Limited,
Beaufort House, 15 St. Botolph Street, London EC3A 7JJ. Regulated
by the Financial Services Authority

CONTACT:  Ian Chimes
          Credit Suisse Asset Management
          Managing Director
          Phone:  +44 207 426 2626

          Lisa Goddard
          Credit Suisse Asset Management
          Managing Director
          Phone: +44 207 426 2626

          Louise Hatch/Harriet Moore
          Penrose Financial Telephone
          Phone: +44 207 786 4885


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


BAE SYSTEMS: New Problems Plague Submarine and Aircraft Program
---------------------------------------------------------------
BAE SYSTEMS announces that additional issues have arisen in
relation to its Astute attack submarine and the Nimrod MRA4
aircraft programs. BAE SYSTEMS has been reviewing with the UK MoD
the outlook for these contracts and it has now become apparent
that there are substantial schedule and cost implications.

The company and the MoD are continuing to discuss the extent to
which these two contracts can be modified to the mutual benefit
of the MoD and BAE SYSTEMS.

Discussions with MoD are likely to take some months and no
assurances as to the outcome can be given. However, the company
anticipates agreeing with the MoD the principles to be applied in
the envisaged contract modifications in order to be able to
assess any cost implications by the time of the company''s 2002
Preliminary results announcement in February 2003.

Note:

Following the report and the government's refusal to bail out the
company on the projects, shares in BAE Systems went down by 32.5
p to a seven-year low of 131 p.  The drop in the share price sent
the Defense giant's market value to drop by more than GBP1
billion in just 8 minutes, says the Scotsman.

According to the report, BAE did not make clear that the trouble
with its Nimrod anti-submarine shore-based aircraft program meant
a delay beyond 2005.  But defense experts assured that the
"important and established programs that date back to the mid-
1990s" would not be cancelled altogether.

ING analyst Clive Forestier-Walker said past cost overruns on BAE
contracts for the MoD are in the 10-15% range of the contract
value.

It was earlier speculated that BAE planned to issue a profit
warning after news came out that it posponed a meeting with
analysts.


BRITANNIC PLC: Announces Acquisition of Britannic Money
-------------------------------------------------------
Britannic Assurance plc announces that it has acquired the
outstanding 40% of the ordinary share capital of Britannic Money
plc from First Active plc for a cash consideration of GBP56.5m.
This follows First Active's exercise of its Put Option under this
agreement and is in line with the terms of the joint venture
agreement between BA and First Active announced on 30th August
2000. The consideration was fully provided for in the 2001
accounts of BA. BA now owns 100% of the ordinary shares of BM.

Note:

In September, Life insurer Britannic pulled out of stakeholder
pensions and announced plans to slash 200 jobs as it announced
worsening pre-tax loss of EUR80.6 million from EUR68.5 million
for the first half of the year.

Britannic offered itself up for sale in March but failed to find
a buyer.

CONTACT:  BRITANNIC GROUP PLC
          Bryan Portman, Group Managing Director
          Phone: 01564 20 4433

          Anthony Carlisle, Citigate Dewe Rogerson
          Phone: (07973 611 888)
                  020 7638 9571


CABLE & WIRELESS: Caribbean Operation Under Threat - Analysts
-------------------------------------------------------------
The Caribbean operation of Cable & Wireless may experience
reduced growth in cash flow due to tougher than expected
competition in the market, according to analysts.

The Financial Times says that a confidential company report
revealed that the operation has a poor image with consumers and
is beset with administrative problems.

The report is seen as another bad news for the company's loss-
making data services business, C&W Global which depends upon the
Caribbean operation's cashflow for support.

Chief Executive Graham Wallace had always considered the regional
division, made up of Cable & Wireless Caribbean and smaller
business in Panama, as a significant contributor the group's
financial stability.  Analysts are predicting the division to
produce free cash flow of about GBP220m for the year to March.

The report revealed that C&W Regional lost the Jamaican mobile
market to Digicel, who now holds 65% of the market.  It also
predicts that the Irish company will control more than half the
Caribbean market in the next three years.

If indeed Cable & Wireless is runing out of cash--as analysts and
investors fear--the company stand to face difficulty in closing
the remainder of its loss-making Global operations as part of a
partial scale back of Global announced last month.


CABLE & WIRELESS: May Use up Cash Reserve Within a Year
-------------------------------------------------------
Investors predict Cable & Wireless to exhaust its reserve within
a year after paying debt, exiting a U.S. voice business, and
reorganizing its unprofitable Global unit.

The phone and Internet provider has GBP1.2 billion of bonds due
next year and faces GBP1 billion of one-time costs, in addition
to a possible GBP1.5-billion tax liability relating to the sale
of its stake in One2One to Deutsche Telekom in 1999.

Bloomberg says Cable & Wireless has to repay a US$1.5 billion
bond on June 9, 2003, and a further US$400 million bond on Dec.
3.

It also needs to spend GBP200 million in cash before April to
exit the voice business, and as much as GBP800 million in cash to
reorganize C&W Global.

Analysts say the management could use up its GBP3.8 billion (US$6
billion) of cash within a year.

The company has lost more than 95% of its market value after it
failed in its venture into data-services due to falling demands.

Louis Gargour, who owns Cable & Wireless bonds at RAB Capital
said: ``They will require at least US$2 billion in bank financing
or new bond issuance in the very near future to remain solvent.''

But Nigel Sillis who helps manage about GBP24.5 billion at Baring
Asset Management sadi, ``A bond sale is unlikely unless the
turnaround plan goes spectacularly well and nothing else comes
out of the woodwork.''


CABLE & WIRELESS: Shareholder Group Demands Investigation
---------------------------------------------------------
The Association of British Insurers had written to the Financial
Services Authority asking the regulator to conduct an
investigation on whether Cable & Wireless breached listing rules
by failing to disclose a potential GBP1.5 billion (US$2.3
billion) tax liability.

The group, which controls around 20% of the UK stock market, also
sent a separate letter to Cable & Wireless chairman, Sir Ralph
Robins asking him for an explanation.

According to the Financial Times, ABI wanted to know when the
board of the telecoms company was first informed of the tax
liability relating to the sale of C&W's stake in One2One to
Deutsche Telekom.

The report noted that the move came as large shareholders in the
company are planning to file a legal action against the company
for not properly disclosing the obligation.

The regulator confirmed it had received the letter, but is
understood to have not yet commenced the investigation sought
for.


CABLE & WIRELESS: Runs to Bankers to Obtain Support
---------------------------------------------------
Telecom company Cable & Wireless is seeking support from bankers
after a rating trigger that could cost the British company GBP1.5
billion was made operative last week.

The telecommunications provider is negotiating a loan guarantee
from bankers to mitigate the effects of Moody's downgrade of its
debt rating, says The Deal.

Moody's downgrade of Cable & Wireless' GBP2.5 billion (US$3.95
billion) bonds from Baa2 to Ba1 activated the complex arrangement
of the company with Deutsche Telekom on the sale of the former's
stake in One2One.  As a result, the telecoms company has now to
put GBP1.5 billion of its GBP2.2 billion in net cash into an
escrow account since it earlier agreed to set aside GBP1.5
billion to cover potential tax liabilities arising in future
years should its credit rating fall below investment grade.

The phone and Internet provider is now currently asking its
bankers, led by Royal Bank of Scotland Group to provide a loan
guarantee so that it would have to set aside GBP1.5 billion for
the obligation.

Cable & Wireless press official Peter Eustace said it is not yet
certain when would the company be able to obtain agreement with
the banks.


GLAXOSMITHKLINE: Sells GSK Manufacturing Facility at Montrose
-------------------------------------------------------------
GlaxoSmithKline and Diosynth BV announced agreement of the
principal terms for the sale of the GSK manufacturing facility at
Montrose, Angus, Scotland to Diosynth BV, part of the Akzo Nobel
group of companies. The deal is expected to secure around 500
jobs at the site. GSK announced its intention to sell the
manufacturing facility at Montrose in June 2001.

Subject to negotiation and signing of sale and supply contracts,
transfer of ownership is expected complete early in 2003.

Under the terms of the deal, it is intended that Diosynth will
continue to manufacture eight pharmaceutical active ingredients
currently made at Montrose, which GSK will purchase under
contract. Other GSK products will continue to be made at Montrose
until such time as their on-going transfer to other GSK sites is
completed.

John Elliot, Senior Vice President of GSK Primary Manufacturing,
said, "We believe that the sale of the Montrose Site to Diosynth
will be an excellent outcome. We are delighted that the terms of
the arrangement should secure around 500 jobs for the site and a
quality future supply of product for GSK. Employee consultation
processes are now underway and we hope to complete the deal and
transfer ownership early in 2003."

"We are very pleased at the prospect of acquiring a site of the
calibre of Montrose," said Johan Evers, General Manager of
Diosynth. "The site's regulatory approvals and the know-how and
experience of its workforce make it a particularly attractive
addition to our world-wide network of production facilities. We
are looking forward to working with Montrose staff to integrate
this facility into our business as quickly as possible."

It is expected that reduction in headcount from the current 700
employees will be achieved largely through voluntary redundancy.

GlaxoSmithKline - one of the world's leading research-based
pharmaceutical and healthcare companies - is committed to
improving the quality of human life by enabling people to do
more, feel better and live longer. For company information visit
GlaxoSmithKline on the World Wide Web at www.gsk.com

Diosynth, a business unit of Akzo Nobel, is a science-driven and
technology-based manufacturer of complex active pharmaceutical
ingredients. The company's expertise is complex organic
chemistry, extractions, cell culture, fermentation and
chromatographic purification, including HPLC. These technologies
are used on an industrial scale to manufacture steroids,
synthetic peptides, opiate analogues, carbohydrates, heparin and
recombinant proteins, as well as proprietary innovator products.
Diosynth's operations are backed by a large development
organisation, strong commitment to Good Manufacturing Practice
(cGMP) and strict adherence to HSE legislation. Diosynth is
headquartered in Oss, the Netherlands, has about 3,100 employees
and achieved sales in 2001 of EUR 488 million.

Akzo Nobel, based in the Netherlands, serves customers throughout
the world with healthcare products, coatings and chemicals.
Consolidated sales for 2001 totaled EUR 14 billion. The Company
currently employs over 67,000 people in more than 80 countries.
Financial results for the full year 2002 will be published on
February 11, 2003.

CONTACT:  European Analyst/Investor Duncan Learmouth
          Philip Thomson
          Joan Toohill
          Phone: 020 8047 5540
                 020 8047 5543
                 020 8047 5542
          US Analyst/Investor Frank Murdolo
          Tom Curry
          Phone: (215) 751 7002
                 (215) 751 5419


LONDON CLUBS: Refuses Takeover Bid of Stanley Leisure
-----------------------------------------------------
The Board of London Clubs announces that it has received a letter
from Stanley Leisure plc expressing its interest, through an
indicative proposal, to make a recommended offer to acquire the
entire issued share capital of London Clubs.

The making of any offer is subject to a long and unacceptable
list of pre-conditions, including the stipulation that LCI's
banks and other debt financiers agree to the redemption of their
debt at a discount to its face value.

If an offer were to be made it would be satisfied by the issue of
new Stanley Leisure ordinary shares and would value each London
Clubs ordinary share at 25p, yesterday's share price.

The Board does not believe that this letter merits any further
discussion.

Note:

LCI accumulated debts of GBP240 million as a result of the
collapse of the Aladdin gaming complex venture in Las Vegas.
After the complex filed for Chapter 11 bankruptcy protection
earlier in the year, LCI was forced to write off GBP130 million
of investment, increasing its pre-tax losses for the year to
March 31 to GBP119.6 million from GBP52.8 million.

CONTACT: College Hill
         Phone:  020 7457 2020
         Matthew Smallwood
         Justine Warren


NAVAN MINING: Issues Statement on Suspension of Shares
------------------------------------------------------
The listing of the Ordinary Shares in Navan Mining plc on both
London and Irish Stock Exchanges was suspended on 6 December 2002
at the Company's request pending clarification of the Company's
working capital position.  As reported in the interim results
statement for the six months period to 30 June 2002 issued on 30
September 2002, the Group required further funds to develop its
assets in Bulgaria.

The Board of Navan has been in discussions with its principal
bankers Deutsche Bank SAE, and potential investors with regard to
the provision of a bridging facility by such potential investors
pending a further proposed equity raising by the Company, the
successful completion of which would, in the Board's opinion,
have ensured the Company's survival.

However, on 6 December 2002 Deutsche Bank notified the Company
that the proposals put forward by the potential investors were
not acceptable to it and that it was no longer prepared to
support the Company going forward.

The Board has considered whether the necessary further financing
for the Company can be obtained from other sources and has
concluded that no further sources of funding are available.

The Directors have concluded after taking professional advice
that in the circumstances there is no reasonable prospect of the
Company avoiding an insolvent liquidation and that therefore the
Company should cease trading immediately.

Pursuant to the terms of a debenture dated 12 February 2002,
DBSAE has appointed Alan Hudson and David Duggins of Ernst &
Young as administrative receivers in respect of the Company.

Note:
Navan Mining's troubles started last year when its Spanish
operations were hit by the collapse in the world zinc price and a
fall in the local market for sulfuric acid.

Its difficulties were further aggravated with the collapse of
Enron, with which it has a financing agreement related to the
sale concentrates to smelters.

CONTACT:  Laurie Marsland, Chief Executive Officer
          Navan Mining plc
          Phone: 07775 501 181

          Simon Olsen, Company Secretary
          Navan Mining plc
          Phone: 01256 353312

          Keith Irons, Chairman
          Bankside Consultants
          Phone: 020 7444 4155/07885 356 639

          Matthew Shaw, Ernst & Young
          Phone: 020 7951 6042


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
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Information contained herein is obtained from sources believed to
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