/raid1/www/Hosts/bankrupt/TCREUR_Public/030128.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, January 28, 2003, Vol. 4, No. 19


                              Headlines

* F R A N C E *

AIR LIB: Potential Investor Withdraws From Rescue Talks
DAEWOO ORION: Court May Halt Operations at Plant Damaged by Fire
FRANCE TELECOM: Confident in Search for EUR5 Billion Loan
METALEUROP NORD: Plans to Enter Voluntary Liquidation on Default
SCOR GROUP: Offers Bermuda-Based Subsidiary for Sale
SUEZ SA: Atlanta Unit Ends Contract to Supply Water

* G E R M A N Y *

DRESDNER BANK: Plans to cut Non-personnel Costs by 10%
KICHMEDIA GMBH: To Sign Acquisition Deal With Bauer Soon
KIRCHMEDIA GMBH: Sports TV Channel up for Bid
INFINEON TECHNOLOGIES: Court Approves Injunction Against ProMOS
MOBILCOM AG: Company Profile
MOBILCOM AG: Expects to Unload 3G UMTS Network by End of May
SALAMANDER: Parent Company Does Not Rule Out Splitting Unit
SALAMANDER: Parent Company Appoints Grub as New Chairman

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

O2 Netherlands: Mother Company Postpones Sale of Subsidiary
UNITED PAN-EUROPE: S&P Lowers Corporate Credit Rating to 'D'

* P O L A N D *

BRE BANK: Calls Extraordinary General Meeting of Shareholders

* S W E D E N *

SAAB AUTOMOBILE: To Trim Down Workforce by Another 100

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

SWISSAIR: Deliberately Circumvented EU Law - Report
ZURICH FINANCIAL: Zurich France Appoints Chief Executive Officer
ZURICH FINANCIAL: Enters Strategic Alliance With Prudential UK
ZURICH FINANCIAL: Divests Threadneedle Asset Management

* U N I T E D   K I N G D O M *

DYNEGY INC.: Sells European Communications Assets to Klesch Unit
GLAXOSMITHKONE PLC: Halts Study Into Drug After Patients Died
NTL EUROPE: Nasdaq Approves Request for De-listing
ROYAL MAIL: Rivals to Demand Charging of VAT to Exempted Items


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


AIR LIB: Potential Investor Withdraws From Rescue Talks
-------------------------------------------------------
Air Lib's rescue suffered a setback after prospective investor
IMCA withdrew from talks aimed at saving the troubled airline
from bankruptcy.

IMCA has been involved in negotiations since October regarding
the rescue of Air Lib, which calls for the former to invest EUR50
in the troubled carrier.

According to businessman Erik de Vlieger of IMCA, he pulled out
from the negotiations after the French government failed to meet
the group's demands for a restructuring plan.

Talks last week proved that the government will not offer any
further concessions, although it has until this time waived Air
Lib's debt, IMCA said in a statement.  The French government is
unable to cancel Air Lib's debt due to EU legislation on state
support to companies.

Air Lib has EUR120 million of outstanding debts to the French
government and European development fund.

The French government previously rejected Air Lib's restructuring
plan, as it would effectively require the government to raise its
outstanding credits to the airline.

It earlier stressed that it would only accept the restructuring
with a "firm and irreversible" support of an investor.

CONTACT:  AIR LIB
          42 Rue F. Forest
          Imm. Le Sommet
          97122 Jarry-Baie Mahault
          Phone: +590-(0)5.90.32.56.00
          Fax: +590-(0)5.90.26.64.02


DAEWOO ORION: Court May Halt Operations at Plant Damaged by Fire
----------------------------------------------------------------
The Commercial Court of Briey may order a halt to operations at
Daewoo-Orion, the factory that was damaged by a large fire last
week.

The plant, which has been in compulsory administration since
January 9, was initially reported as unable to reopen last week
because of the lack of some essential materials.

A hearing has been set for February 6 to decide whether or not to
continue operations at the debt-laden factory.

According to the company's human resources head, Arnaud Blondel,
the fire caused an estimated EUR 1.2 million (USD 1.3 million) of
damage in ruined stock alone.   It is estimated that the
catastrophe destroyed 30% to 40% of the site. More losses were
expected through smoke damage, says AFX.

Daewoo Orion, located in Mont-Saint-Martin, Meurthe-et-Moselle,
Lorraine has debts of EUR3.4 million.

On January 2, employees began an occupation of the factory to
oppose the planned closure.  Members of the CGT, FO and CFTC
trade unions blocked the factory entrance and roads in the local
area.

CONTACT:  DAEWOO ORION S.A. (DOSA)
          Ave. De L' Europe 54350,
          Mont Saint Martin, France
          Phone: 33-3-8225-2525
          Fax: 33-3-8225-2500


FRANCE TELECOM: Confident in Search for EUR5 Billion Loan
---------------------------------------------------------
Debt-laden company France Telecom is banking on the renewed
confidence on its finances in its search for a new EUR5 billion
(US$5.4 billion) bank loan.

As a sign that it is secure in its move, the company did not
appoint a lead bank, but arranged the loan talks itself.

The telecom group is using the recent improvements to its balance
sheet and the lure of future lucrative mandates as a bargaining
tool in talks with lending banks, says the Financial Times.

One baker involved in the negotiations confirmed that France
Telecom is leading the deal.

France Telecom has been in talks with a large group of banks for
several days, and it is likely to secure favorable terms, the
report says.

The article noted that the company initially approached a small
group of banks for a loan of EUR1 billion each.  But as the
number of lenders increased to 20, this would naturally lower the
commitment to about EUR250 million each.

France Telecom is reportedly recommending the same terms as paid
on last year's EUR5 billion loan, which is a margin of 120 basis
points over Libor, or around 4%.

Although the loan is intended to refinance a EUR5 billion one-
year facility that matures on February 14, bankers predict France
Telecom to use it only as back-up liquidity and will not really
draw on it.

The French government provided the telecom company a EUR9-billion
loan in December to keep the company solvent and help it cut debt
in the medium term to EUR40 billion.

CONTACT:  FRANCE TELECOM
          6, Place d'Alleray
          75505 Paris Cedex 15, France
          Phone: +33-1-44-44-22-22
          Fax: +33-1-44-44-95-95
          Homepage: http://www.francetelecom.fr
          Contacts: Thierry Breton, Chairman
                   Michel Combes, Executive Committee, Finance


METALEUROP NORD: Plans to Enter Voluntary Liquidation on Default
----------------------------------------------------------------
Metaleurop Nord chief executive Gilbert-Alain Ferrer plans to
file voluntary liquidation for the company after announcing its
inability to meet payments.

Last week it was reported that operations in the French
subsidiary of European metals group, Metaleurop SA, would be shut
down in the immediate future.

Regional Representative of the State, Cyrille Schott, said
priority will be given to an acceptable redundancy plan for
employees of Metaleurop Nord, adding that the regional office for
industrial, research and environmental questions will carry out a
close examination of the winding down of operations at the site.

Specifically, zinc production at the site will cease by the end
of January and lead production will be put to a stop on January
27, Monday.

Authorities have also asked the company for a list of hazardous
substances at the plant, and the French industry minister Nicole
Fontaine will be sending two representatives to the site in
Noyelles-Gaudault to examine the possibilities for revitalizing
employment in the area.

CONTACT:  METALEUROP
          Maxime ARNAUD
          Phone: +33 1 42 99 47 73
          Mobile: + 33 6 74 93 21 83
          Fax: + 33 1 40 75 09 63
          E-mail: maxime.arnaud@metaleurop.fr


SCOR GROUP: Offers Bermuda-Based Subsidiary for Sale
----------------------------------------------------
French reinsurer SCOR is selling its Bermuda-based subsidiary
Commercial Risk Partners.  The sell-off is part of the program of
Denis Kessler, head of SCOR Group, to implement his "Back on
track Plan."

According to The Bermuda Sun, CRP is now considered as "non-
strategic and (will cease)" underwriting new business.  Scor
posted a loss of EU400 million last year, US$99.7 million of this
is attributed to CRP's underwriting losses.

A.M. Best rates the financial strength ratings of CRP and its US
subsidiary, Commercial Risk Re-Insurance Company of Vermont B++
"under review with negative implications."  The outlook reflects
A.M. Best's concern regarding the future role of these companies
within SCOR and the uncertainty as to the outcome of the annual
year-end reserves review of the companies currently being carried
out.

The company's chairman and chief executive officer, Graham
Pewter, and chief operating officer Francois Bertrand resigned in
order to clear the way for the sell-off.

The Scor Group is France's largest re-insurer and has offices in
30 countries, serving clients in 150 markets.

CONTACT:  SCOR
          1, Avenue du General de Gaulle
          92074 La D,fense Cedex, France
          Phone: +33-1-46-98-70-00
          Fax: +33-1-47-67-04-09
          Home Page: http://www.scor.com
          Contact:
          Jacques Blondeau, Chairman and CEO
          Denis Kessler, Chairman and CEO
          Serge Osouf, President and COO


SUEZ SA: Atlanta Unit Ends Contract to Supply Water
---------------------------------------------------
Suez's United Water Services Atlanta unit lost a US$21.4-million-
a-year contract with the city of Atlanta when it agreed to end
the 1999 agreement with authorities.

The French utility confirmed last week the parties mutually
agreed to dissolve the deal, considered as the largest
privatization contract in America.

The transaction involves the provision of drinking water to the
city's 2 million residents for 20 years.

According to the company, "It has not been possible to reach an
agreement with the new city government to continue to operate
Atlanta's drinking water system in a manner consistent with
Suez's profit criteria."

The conglomerate, which recently reported a EUR900-million loss,
incurred huge debts through a five-year EUR19-billion acquisition
spree under Chief Executive Gerard Mestrallet.

Shares in the company lost half of their value last year amidst
concerns about its EUR27 billion debt.  About EUR11 billion of
Suez's debt comes due in 2003 and 2004.

In order to trim down debts, the management of the French utility
conglomerate announced plans to divest EUR9 billion (US$9.44
billion) of assets over the next two years.

CONTACT:  SUEZ SA
          Home Page: http://www.suez.com
          Financial analysts,
          Frederic Michelland
          Phone: +331-40-06-66-35

          in Belgium:
          Guy Dellicour
          Phone: +322-507-02-77


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


DRESDNER BANK: Plans to cut Non-personnel Costs by 10%
------------------------------------------------------
Dresdner Bank plans to cut non-personnel costs by 10% and reduce
non-guaranteed bonus and performance related pay, according to
Welt am Sonntag.

According to the report, a letter from Dresdner chairman Bernd
Fahrholz to 60 top managers says the bank is determined "more
than ever before... to win back our profitability in 2003."

The bank, like other European banks, suffered high loan loss
provisions and asset writedowns in recent quarters.

Moody's Investors Service recently downgraded Dresdner Bank's
financial strength ratings to C, to reflect the bank's marginally
higher vulnerability to a potential further deterioration of
asset quality in its financial fundamentals.

The rating agency evaluated Dresdner Bank's financial
fundamentals, particularly its profitability and economic
capitalization, in comparison with other private German banks.

It said that Dresdner Bank's increase in loan loss provisions in
2001 and 2002 was made conservatively.

Moody's warned that some legacy risks in the bank's portfolio,
especially in the Institutional Restructuring Unit, may remain
high.  Its German loan portfolio, on the other hand, could still
be pressured.

It further caution that it is still uncertain whether Frankfurt-
based Dresdner will be successful in implementing its integrated
model for its wholesale banking activities.



KICHMEDIA GMBH: To Sign Acquisition Deal With Bauer Soon
--------------------------------------------------------
An agreement on the acquisition of KirchMedia, the insolvent
German TV and film rights company, by Bauer publishing house and
HVB may be signed within 14 days, according to Kirchmedia's
insolvency administrator Hans-Joachim Zeims.

Zeims said the deal "for ProSiebenSAT.1 Media as well as for the
film rights business will be signed in the next 14 days at the
latest," adding, however, that talks are also being conducted
with Rupert Murdoch, Silvio Berlusconi and Lehman Brothers, as
well as with Haim Saban.

In December last year, Kirchmedia announced that it reached a
broad agreement with Bauer Verlag over its 52.5% share in
ProSiebenSAT.1, Germany's largest broadcaster.  While no
financial details were provided, Bauer is understood to be paying
about EUR700 million (US$719 million) in cash.

Kirch Group collapsed under a EUR1.9-bilion debt load from banks
and studios last year after overspending on film rights
acquisition and supporting its troubled pay-TV division,
Premiere.

CONTACT: KIRCHMEDIA GMBH & CO. KGAA
         Communication & PR
         Phone: +49 (0)89 9956-2325


KIRCHMEDIA GMBH: Sports TV Channel up for Bid
---------------------------------------------
German national football player Guenther Netzer and French
investor Robert Louis Dreyfus, both owners of recently acquired
Kirchmedia's Kirch Sport AG, are now considering buying the
insolvent media giant's sports TV channel Deutches
Sportfernsehen.

The prerelease article of daily Sueddeutsche Zeiting reports that
Netzer and Dreyfus are currently conducting due diligence on DSF,
as well as Swiss investor Hans-Dieter Cleven who is also lining
up a bid.

Kirch Group collapsed under a EUR1.9-bilion debt load from banks
and studios last year after overspending on film rights
acquisition and supporting its troubled pay-TV division,
Premiere.

CONTACT: KIRCHMEDIA GMBH & CO. KGAA
         Communication & PR
         Phone: +49 (0)89 9956-2325


INFINEON TECHNOLOGIES: Court Approves Injunction Against ProMOS
---------------------------------------------------------------
The Hsinchu District Court in Taiwan has approved both of
Infineon's injunction applications. Following this ruling two
Infineon employees will immediately resume office, which were
illegally removed at the Extraordinary Shareholder Meeting of
ProMOS on January 10. Angela Shih will serve as Supervisor and
Michael Buckermann as member of the ProMOS Board of Directors.

Infineon appreciates the prompt decision by the Hsinchu District
Court in this matter and is prepared to take other appropriate
actions to defend its rights as a shareholder of ProMOS.

Effective immediately, Infineon terminates the technology license
agreement with ProMOS due to a serious breach of contract as
ProMOS is supplying all products manufactured with Infineon
technology to Mosel Vitelic and due to destruction of the
relationship of trust between the contract partners which is
inevitably necessary for such a license agreement.

As a result of this termination, ProMOS from now on will not be
allowed to manufacture products based on Infineon technology.

Infineon and Mosel Vitelic signed a shareholders agreement for
the foundation of the joint venture ProMOS in 1996, which
supplied all DRAM products manufactured on the licensed Infineon
technology to Infineon. Infineon then supplied Mosel Vitelic with
DRAM products. However, there is no more a basis to continue this
cooperation because of repeated violations of the shareholders
agreement by Mosel Vitelic, the breach of the license agreement
by ProMOS and further measures by Mosel Vitelic, which controls
the ProMOS board, impairing the partnership.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor
and system solutions for the automotive and industrial sectors,
for applications in the wired communications markets, secure
mobile solutions as well as memory products. With a global
presence, Infineon operates in the US from San Jose, CA, in the
Asia-Pacific region from Singapore and in Japan from Tokyo. In
the fiscal year 2002 (ending September), the company achieved
sales of Euro 5.21 billion with about 30,400 employees worldwide.
Infineon is listed on the DAX index of the Frankfurt Stock
Exchange and on the New York Stock Exchange (ticker symbol: IFX).
Further information is available at www.infineon.com.

                      *****
Infineon's first quarter EBIT was a loss of EUR31 million, a
strong improvement from a loss of EUR292 million sequentially and
from a loss of EUR 564 million year-on-year.

CONTACT:  INFINEON TECHNOLOGIES AG
          P.O. Box 80 09 49
          D-81609 Muenchen
          Germany
          Contact:
          Investor Relations

          Phone: +49 89 234 26655
          Fax: +49 89 234 26155
          E-mail: investor.relations@infineon.com


MOBILCOM AG: Company Profile
----------------------------
NAME: MOBILCOM AG
      Hollerstraáe 126
      P.O.Box 520
      24753 Rendsburg-Buedelsdorf
      Germany

PHONE: +49-43-31-69-11-73

FAX: +49-43-31-69-28-88

WEBSITE: http://www.mobilcom.de

TYPE OF BUSINESS: Holding Company engaged in the development,
provision, rental and leasing of mobile phones and other related
services and equipment. The company also provides Internet
services, fixed line speech services and concentrates on the
future provision of UMTS services, which include storage and
transmission of pictures, videos and data through UMTS mobile
phones.

Mobile Phone Network accounted for 74% of 2001 revenues; Land
lines, 13%; Internet Revenues, 10% and Other, 3%.SIC:
Telecommunications - Wireless Communications Services

EXECUTIVES: Thorsten Grenz, Chief Executive Officer

            Supervisory Board:
            Ulrich Kalthoff, Neumunster, Vice Chairman
            Carsten Meyer, Suderstapel
            Prof. Dr. Helmut Thoma, Koln
            Andreas Schober, Hannover
            Dr. Dieter Vogel, Dusseldorf
            Derek Wooler, Rosrath
            Thorsten Delling, Budelsdorf
            Gabi Hanrieder, Finsing
            Helmut Holzer, Bessenbach
            Andreas Neumann, Norderstedt
            Christian Teufel, Kronshagen

INVESTOR RELATIONS: Patrick Moller, Head Of Investor Relations
                    Phone: 0049 (0)4331 69 1173
                    Fax: 0049 (0)4331 69 2888
                    Email: Ir@Mobilcom.De

NUMBER OF EMPLOYEES: 4,925

REVENUE EUR518.8 million (as of September 30, 2002)

MARKET CAPITALIZATION: EUR141.259 (as of September 30, 2002)

NET LOSS: EUR3.152 billion (as of September 30, 2002)

CURRENT ASSETS: EUR7.626 billion (as of September 30, 2002)

TOTAL ASSETS: EUR8.169 billion (as of September 30, 2002)

TOTAL CURRENT LIABILITIES: EUR5.285 billion (as of September 30,
2002)

TOTAL SHAREHOLDERS EQUITY: EUR606.704 million (as of September
30,
                           2002)
DEBTS:

EUR50 million form German reconstruction loan bank
EUR4.7 billion from banks
EUR1.4 billion supplier loans from Nokia and Ericsson
EUR1.0 billion from shareholders
EUR112 million loan agreement with Deutsche Bank, Dresdner Bank,
and
Landesbank Schleswig-Holstein

To see MobilCom's Latest Financial Results:
http://bankrupt.com/misc/MobilcomAg.pdf

THE TROUBLE: Following France Telecom's termination on June 11,
2002 of the cooperation framework agreement between the two
companies, on September 13, 2002, MobilCom was brought to the
verge of insolvency by the announcement that France Telecom's
Board of Directors had resolved to abandon all financial support.

BUSINESS ADVISORS: PWC Deutsche Revision AG
                   Postfach 602720, 22237 Hamburg,
                   Phone: 040/63781511
                   Home Page:
http://www.pwc.de/investitionsgarantien


MOBILCOM AG: Expects to Unload 3G UMTS Network by End of May
------------------------------------------------------------
Telecom group MobilCom AG has set the end of March as the
deadline for unloading its Germany-based 3G UMTS network, which
includes 900 base stations.

Chairmsn Thorsten Grenz told Handelsblatt, "If we haven't found
an investor by the end of March, we will have to tear it down."

MobilCom decided to freeze its 3G plans following France
Telecom's termination in June 2002 of the cooperation framework
agreement between the two companies.  The decision of the board
of France Telecom to abandon all support to the company almost
brought the group to the verge of insolvency.

Although the government offered a rescue plan, still, MobilCom
has to put its 3G roll-out on hold and focus on its core 2G
reselling operations.

According to AFX, Netherlands-based Royal KPN NV, was reported
last year to be interested in acquiring the network.

In case the sell-off pushes through, France Telecom is entitled
to receive 90% of the proceeds as stipulated under the terms of
the rescue package.

CONTACT:  MOBILCOM AG
          HollerstarBe 126
          P.O. Box 520
          24753 Rendsburg-Buedelsdorf
          Fax: +49-43-31-69-28-26
          Phone: +49-43-31-69-11-73
          Contact:
          Dr. Thorsten Grenz, Chairman of the Board

          ROYAL KPN NV
          Maanplein 5
          2516 CK The Hague, The Netherlands
          Phone: +31-70-343-43-43
          Fax: +31-70-332-44-85
          Toll Free: 800-777-6842
          Home Page: http://www.kpn.com
          Contact:
          A. H. J.Risseeuw, Chairman of the Supervisory Board
          A. J. Scheepbouwer, Chairman of Management Board, CEO


SALAMANDER: Parent Company Does Not Rule Out Splitting Unit
-----------------------------------------------------------
Energie Baden-Wuerttemberg AG chairman Gerhard Goll did not rule
out splitting its ailing subsidiary, Salamander, if a buyer could
not be found for the unit, says AFX.

The chairman, though, says it is still in talks with several
buyers interested in acquiring the whole of its Salamander unit.

The company is currently launching a comprehensive restructuring
program for Salamander's struggling shoe division.  The plan
calls for massive reduction in current production capacities,
closure of German branches, and tightening up of internal
structures and processes.

As a result, the company foresees to shed a total of about 900
jobs abroad and some 430 in Germany (about 130 in Kornwestheim,
140 in Vinningen, 65 in Schrozberg and 100 in retail).

For the first half of 2002, the Salamander Service division
posted turnover of EUR375.7 million, or a 12.0% increase.

In the Industry division, turnover increased by 42.6% to EUR 83.3
million (EUR 58.4 million).

In the Shoes division, turnover reached EUR 182.6 million, close
to that of the previous year (EUR 185.3 million).


SALAMANDER: Parent Company Appoints Grub as New Chairman
--------------------------------------------------------
German energy group Energie Baden-Wuerttemberg AG named lawyer
Volker Grub as successor to Michael Gassner, chairman of its
ailing subsidiary, Salamander.

Mr. Grub is expected to bring the highly diversified company, and
its loss-making division back to profitability after the last
chairman failed to do so.

The insolvency administrator is known for his track record of
turning around more than 200 companies, including Sudmilch,
Bauknecht and Brokat.

He will continue to reorganize the shoe business and reduce
production in Europe.

The plan calls for a massive reduction in current production
capacities that means relocating abroad production from the
Vinningen and Schrozberg sites in Germany and closing an elderly
production facility in Bonyhad (Hungary).

It also outlined closure of some 20 German branches which no
longer fit in with the new alignment of the Salamander branches
in Germany.

It also included the tightening-up of the internal structures and
processes of Salamander's shoe division.

Regarding the entry of an investor to the company Mr. Grub says,
a partner is desirable but is not necessary to restructure the
company.

He also maintained that the existence of the company is not
threatened.  "Salamander has enormous reserves. One can exclude
an insolvency," he said.


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


O2 Netherlands: Mother Company Postpones Sale of Subsidiary
-----------------------------------------------------------
Mobile-phone company mm02 Plc, which was spun off in November
from what is now known as British Telecom Group Plc, may forego
its plan to divest its German subsidiary O2 Netherlands until at
least the summer.

An mm02 insider was quoted by the Business saying: "You never
know what might happen in the near-term future, but for the
moment we have no plans to sell the business." This statement
follows the posting of a strong rebound in the performance of O2
Netherlands, the report said.

Investors who had hoped the company was in talks to sell the
German interests will be disappointed, including Vodafone Group
and Deutsche Telekom AG.

Estimated to be worth EUR100-200m, O2 Netherlands BV reported an
EBITDA loss of GBP9 million in the half year to September 2002.
It also posted a loss of GBP51m in the full year to March 2002.


UNITED PAN-EUROPE: S&P Lowers Corporate Credit Rating to 'D'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on United Pan-Europe Communications N.V. (UPC) to 'D' from
'SD'.  It also lowered its senior unsecured debt rating on the
company's four remaining debt issues to 'D' from 'C', and removed
these ratings from CreditWatch with negative implications.

Standard & Poor's also revised its CreditWatch implications for
its 'C' corporate credit and senior secured bank loan ratings for
subsidiary UPC Distribution Holding B.V. to developing from
negative.

The actions follow the company's bankruptcy filing last month.

Standard & Poor's credit analyst Catherine Cosentino said, "The
company obtained waivers and amendments that eliminate the cross
default provision under the bank agreement and UPC Distribution
Holding continues to service the bank facility. Upon UPC's
emergence from bankruptcy, the rating on this bank facility would
be raised."

United Pan-Europe Communications N.V. is a holding company, which
owns various direct and indirect subsidiaries that operate
broadband communications networks providing telephone, cable and
Internet services to both residential and business customers in
Europe. Howard S. Beltzer, Esq., at White & Case, LLP, represents
the Debtor in its restructuring efforts.

CONTACT:  UNITED PAN-EUROPE
          Boeing Avenue 53
          1119 PE Schiphol-Rijk
          PO Box 74763, 1070 BT
          Amsterdam, The Netherlands
          Contact:
          Rick Westerman, Investor Relations
          Phone: (303) 220-6647
          Email: rwesterman@unitedglobal.com


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


BRE BANK: Calls Extraordinary General Meeting of Shareholders
-------------------------------------------------------------
The Extraordinary General Meeting of Shareholders of BRE Bank
will be held Wednesday, January 29, 2003.

The main agenda will be adoption of resolutions about the merger
of BRE Bank SA and Bank Czestochowa SA. The Intention to merge
the Banks was announced on 13 September 2002, whereas the Plan of
Merger of BRE Bank and Bank Czestochowa was announced on 1
October 2002.

The merger will strengthen BRE Bank's position in the retail
banking market by exploiting the database of clients of Bank
Czestochowa SA and widening the product offerings of Bank
Czestochowa.


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


SAAB AUTOMOBILE: To Trim Down Workforce by Another 100
------------------------------------------------------
The Swedish unit of General Motors, Saab, will lay off another
100 workers as it continues to streamline its engineering and
marketing operations, spokesman Christer Nilsson told the
Associated Press.

The job cuts, which include 70 assembly line jobs and 30
administrative positions, is in addition to the 1,300 layoffs
announced late last year.

The layoffs will reduce the number of workers at Saab's plant in
Trollhaettan, Sweden, from 7,500. Worldwide, Saab employs 9,200
people.

Saab has been a problem for GM since it bought into the Swedish
carmaker 12 years ago. The company suffers from a narrow product
line and has trouble drawing customers from the two top premium
brands, Bayerische Motoren Werke AG and DaimlerChrysler AG's
Mercedes-Benz division.  The company is plagued by a slump in
demand, a costly launch of its new 9-3 sedan and a gain in value
against the dollar by the Swedish kroner.

During 2002, Saab's sales in Western Europe fell by 3.4%.


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


SWISSAIR: Deliberately Circumvented EU Law - Report
---------------------------------------------------
A report ordered by Swissair's liquidator reveals the bankrupt
national airline intentionally bypassed European law by taking
effective control of several airlines, says AFX.

Ancillo Canepa, of auditors Ernst and Young, says Switzerland's
airline had "formally respected" EU rules while "de facto"
circumventing them.

According to the 5000-page report, the carrier was able to
circumvent the rule that says non-EU companies could not hold
more than 49.9% of the capital of other airlines through a
complex system of portage solutions, guarantee commitments and
non-transparent financing.

"The full consolidation of significant subsidiaries which would
have been necessary was not performed as it would have resulted
in making public disclosure of the existence of effective
control," the report said.

Included in Swissair's pool of airlines are AOM, Air Liberte and
Sabena.  The airline spent SFR5.9 billion for acquisitions and
various recapitalizations between 1995 and 2001.  This they did
despite the fact that the board had set a SFR300 million maximum
limit.

According to Ernst & Young--the body tasked to find out who was
responsible for the company's collapse--the auditors did not find
any irregularities in the accounts for 1999 and 2002.  And
although McKinsey reported a capital shortage of between SFR3.2
billion and SFR4.4 billion in August 2000, the board took no
action.

But, according to AFX, former chief executive Philipp Bruggisser
said the airline's "hunter strategy", criticised by the report,
had been regularly checked by the management and board of
directors and adapted to the changing market conditions.

As for the control of other airlines, Bruggisser maintains the EU
had been informed and the move and had accordingly authorized
them, adding they had always conformed with the EU law.


ZURICH FINANCIAL: Zurich France Appoints Chief Executive Officer
----------------------------------------------------------------
Zurich Financial Services has appointed Berto Fisler, 53, Chief
Executive Officer (CEO) of Zurich France. Pending regulatory
approval, Berto Fisler will take on his new function on March 1,
2003. Patrick Thourot, currently CEO of Zurich France, has
decided to take on a new challenge outside the Group.

Berto Fisler joined Zurich in 1976. Since then he has held
various managerial positions. From 1988 to 2000, he was Regional
Manager at Group Head Office for Zurich's business in Italy.
After that, he was appointed to the Executive Committee for the
Southern European Region, which was integrated last year into the
newly created Business Division Continental Europe.

The key tasks Berto Fisler will take on in his new function
include the implementation of numerous initiatives in the context
of the group-wide Profit Improvement Program.

Zurich Financial Services is an insurance-based financial
services provider with an international network that focuses its
activities on its key markets of North America, the United
Kingdom and Continental Europe. Founded in 1872, Zurich is
headquartered in Zurich, Switzerland. It has offices in
approximately 60 countries and employs well over 70,000 people.

                      *****

On September 12, troubled Zurich Financial Services unloaded its
UK-based venture capital firm--a move seen to indicate that the
insurer is living up to its new strategy of focusing on core
business.

CONTACT:  ZURICH FINANCIAL SERVICES
          Media and Public Relations
          8022 Zurich, Switzerland
          Phone: +41 (0)1 625 21 00
          Fax +41 (0)1 625 26 41
          Home Page: http://www.zurich.com


ZURICH FINANCIAL: Enters Strategic Alliance With Prudential UK
--------------------------------------------------------------
Prudential UK and Zurich Financial Services have on Friday
announced that they have entered into a strategic alliance which
will give Zurich customers access to a range of Prudential's
market leading products. The alliance will take advantage of the
proposed changes to the polarization rules, which will allow
Zurich's tied distribution arm, the Zurich Advice Network (ZAN),
to "gap-fill" with other companies' regulated products.

The companies have signed an agreement to offer Zurich customers
with maturing pensions an annuity provided by Prudential, post-
depolarisation.

Both companies are also actively discussing ways in which ZAN can
utilize Prudential's other market leading products including
with-profit bonds.

Prudential is a recognized market leader in annuities and with-
profits bonds. Zurich's 3,500-strong network of fully qualified
financial advisers is the largest network of its type in the UK
offering face-to-face advice.

The benefits of the agreement post-depolarization will be:

Zurich customers with maturing pension funds (current brands
include Zurich Life, Allied Dunbar and Eagle Star) will be
offered an annuity provided by Prudential, a market leader in the
annuity market.

The arrangements are expected to produce new annuity premiums in
excess of GBP1 billion to Prudential over the next five years.

Zurich Advice Network financial advisers will have an enhanced
proposition drawing on Prudential's range of products and will be
able to offer face-to-face advice on a wider range of competitive
products.
This year, before depolarisation takes place, almost all Zurich
customers will benefit from improved annuity rates through a
reassurance arrangement between Zurich and Prudential.

Commission will be paid in line with structures that are in force
for leading Independent Financial Advisers.

The annuity agreement is a five-year arrangement between Zurich
and Prudential and covers all conventional pension annuities*
offered by Prudential. Zurich and Prudential are free to seek
further distribution arrangements for these and other products.

Andy Briggs, Partnerships Director Prudential UK, said: "We are
committed to offering the Prudential range of financial products
and services through a multi-channel distribution strategy. This
agreement will give Zurich's customers the opportunity to
purchase an annuity from a market leading annuity provider. We
are continuing to develop other opportunities over the coming
months as the marketplace evolves."

Kevin Ronaldson, Marketing, Customer and Communication Director
of Zurich's Life business said: "Zurich is committed to offering
our customers choice and a full range of competitive products.
This will include 'gap-fill' products from major brands where we
choose not to be the product manufacturer. The combination of a
Prudential annuity and guaranteed face-to-face advice from the
Zurich Advice Network is a compelling proposition for customers
and we are looking forward to developing similar opportunities
with Prudential over the coming months".

Notes:

1. * Zurich customers will be able to benefit from a full range
of conventional annuities although the agreement does not cover
impaired life annuities, temporary annuities and flexible
annuities and some guaranteed annuities.

2. Prior to depolarization, the products will be branded Zurich,
and afterwards they will be branded Prudential.

3. This agreement builds on Prudential's current agreement with
Abbey National and arrangements with Bradford and Bingley and
Woolwich IFAs (WIFAS) who are major distributors of Prudential
products.

CONTACT:  PRUDENTIAL PLC
          Investor Relations
          Rebecca Burrows
          Group Investor Relations
          Phone: 020 7548 3537
          Home Page: http://www.prudential.co.uk


ZURICH FINANCIAL: Divests Threadneedle Asset Management
-------------------------------------------------------
The U.K.-based fund manager of the troubled life insurer Zurich
Financial Services, Threadneedle Asset Management, will be sold
off to raise GBP500 million.

Zurich's financial adviser, investment bank UBS Warburg,
reportedly sent out a sales memorandum to a select group of
potential bidders in the past two weeks, including Deutsche Bank
AG and a number of French banks. However, Threadneedle's
management is also thought to favor an overseas owner, which
would allow the fund manager to remain autonomous.

Although a review of the business was conducted by UBS in the
autumn, it is only in the past month that Zurich has decided to
go ahead with the sale.

Threadneedle has GBP43 billion in funds under management and runs
a spread of retail and institutional funds. It also manages life
insurance funds for Zurich, which owns the Allied Dunbar and
Eagle Star brands in the UK.

In September, Zurich Financial Services unloaded its U.K.-based
venture capital firm--a move seen to indicate that the insurer is
living up to its new strategy of focusing on core business.

CONTACT:  ZURICH FINANCIAL SERVICES
          Media and Public Relations
          8022 Zurich, Switzerland
          Phone: +41 (0)1 625 21 00
          Fax: +41 (0)1 625 26 41
          Home Page: http://www.zurich.com


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


DYNEGY INC.: Sells European Communications Assets to Klesch Unit
---------------------------------------------------------------
Dynegy Inc., (NYSE:DYN) announced the sale of its European
communications business to an affiliate of Klesch & Company, a
London-based private equity firm specializing in European
restructurings, for an undisclosed sum. Dynegy expects to report
a slight gain in the first quarter 2003 related to the sale.

Klesch & Company is acquiring Dynegy's entire European
communications operations consisting of a high-capacity
broadband network with access points in 32 cities throughout
Western Europe. The sale marks Dynegy's exit from the European
communications market - a business it established through its
purchase of iaxis Limited in early 2001.

"This is a strong first step in Dynegy's strategic commitment to
divest its investment in communications and focus on our core
energy businesses," said Dynegy Inc. President and Chief
Executive Officer Bruce Williamson. "The final phase of this
commitment is the exit from the U.S. portion of our
communications business. We expect full resolution on this issue
in early 2003."

Klesch & Company Chairman A. Gary Klesch said, "We believe that
the European telecommunications arena may be bottoming out.
Going forward, the sector has the potential to create value for
those who are able to restructure to meet current demand."

Dynegy Inc., owns operating divisions engaged in power
generation, natural gas liquids and regulated energy delivery.
Through these business units, the company serves customers by
delivering value-added solutions to meet their energy needs.

Klesch & Company, a private equity firm based in London,
specializes in investing in companies in need of restructuring.
Klesch & Company has, for over 12 years, invested in a variety
of industries from meat processing to cable television and from
paper production to leisure home manufacturing.

                         *     *     *

As previously reported, Dynegy Holdings Inc.'s senior unsecured
debt rating was downgraded to 'BB+' from 'BBB' by Fitch Ratings.
In addition, Fitch downgraded Dynegy Inc.'s indicative senior
unsecured debt to 'BB+' from 'BBB-'. The short-term ratings for
DYNH and DYN' have been lowered to 'B' from 'F3'. The ratings
for DYN and DYNH remain on Rating Watch Negative where they were
originally placed on Nov. 9, 2001. In addition, ratings for
affiliated companies, Illinois Power Co., and Illinova Corp.,
have been lowered and remain on Rating Watch Negative.


GLAXOSMITHKONE PLC: Halts Study Into Drug After Patients Died
-------------------------------------------------------------
GlaxoSmithKline halted the study into its asthma drug that
recorded sales of GBP388 million in the first nine months of
2002, after some African-American patients, who made up 17% of
the study group, died.

Serevent, one of the two active ingredients in the new drug
Advair/Seretide, has been on the market since 1994, but large-
scale studies of the drug are still being carried out.  The
process is normal procedure says the company.

The drug company also agreed with the US Food and Drug
Administration to advise patients not to use the Serevent
bronchodilator drug without also using anti-inflammatory steroid
asthma drugs.

In November, GlaxoSmithKline chief executive, JP Garnier,
admitted it is short of new drug when it revealed it has no plan
of updating investors on progress in research and development.

The disclosure raised serious questions about the company's
future, as the pharmaceutical firms presentations on research and
development are usually as keenly watched as profits
presentations.

CONTACT: GLAXOSMITHKLINE PLC
         European Analyst/Investor Duncan Learmouth
         Philip Thomson
         Anita Kidgell
         Phone: 020 8047 5540
                020 8047 5543
                020 8047 5542

         US Analyst/Investor Frank Murdolo
         Tom Curry
         Phone: (215) 751 7002
         Phone: (215) 751 5419


NTL EUROPE: Nasdaq Approves Request for De-listing
---------------------------------------------------
At the request of NTL Europe, Inc., the Nasdaq Europe Market
Authority has approved the withdrawal of the company's common
stock from listing on Nasdaq Europe. The de-listing will take
effect at the close of business on January 27, 2003.

NTL Europe requested that its common stock be de-listed because
upon the previously announced consummation of its bankruptcy plan
on January 10, 2003, its then existing common stock was cancelled
and was replaced with newly issued common stock which will not be
listed on Nasdaq Europe. Former stockholders are entitled to
their distribution under the Plan.

Any questions regarding this regulatory announcement can be
addressed to Clive Hammond at +44 (0) 7876 131641. More
information may be obtained from the company's web site at
www.ntleurope.com.

CONTACT:  NTL EUROPE, INC
          Clive Hammond
          Phone: +44 (0) 7876 131641


ROYAL MAIL: Rivals to Demand Charging of VAT to Exempted Items
--------------------------------------------------------------
Competitors are planning to file a formal complaint to the
competition authority regarding the unfair advantage that Royal
Mail gets by not charging VAT on bulk business mail and parcel
delivery, The Telegraph reports.

By being exempted from charging the fee like other couriers do,
Royal Mail's services are cheaper than many players in the
business mail market.

Angus Russell, a solicitor who is advising Dutch postal operator
TPG, one of the parties initiating the move, says "A large number
of eligible customers from the business mail market are in this
position, including banks, insurance companies and charities."

It is known that TPG met with representatives from Business Post
and Hays DX in Brussels earlier this month to discuss the
legislation that grants Royal Mail the exemption.

The three rival couriers obtained a legal opinion from taxation
expert Paul Lasok, QC, who deemed the legislation is unlawful
because it exempts services that are in competition with other
operators from the tax, which those operators must pay, the
report says.

Royal Mail's rivals have already approached Customs and the
Treasury on the topic.  Mr. Russell also said, the competition
regulator has shown interest in the case.

David Sibbick, who is in charge of regulatory affairs at Hays DX,
added that he was not looking for a VAT change to the price of a
stamp.  It is understood that when the Royal Mail's monopoly on
consumer letters is finally ended, which is expected to be within
the next few years, the stamps would also calls for a VAT to be
charged.

Market regulator Postcomm says it's not within its discretion to
decide whether or not Royal Mail must pay VAT.

Tighter competition as a result of the opening of the market to
other operators that handle bulk delivery is presently
threatening the survival of the courier. Royal Mail is losing
GBP1 million a day, according to previous reports.

CONTACT:  ROYAL MAIL GROUP PLC
          148 Old St.
          London EC1V 9HQ, United Kingdom
          Phone: +44-20-7250-2888
          Fax: +44-20-7250-2244
          Homepage: http://www.royalmailgroup.com
          Contacts: Neville Bain, Chairman
                    John Roberts, Chief Executive and Director

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

         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 2003.  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
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


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