/raid1/www/Hosts/bankrupt/TCREUR_Public/030212.mbx             T R O U B L E D   C O M P A N Y   R E P O R T E R

                             E U R O P E

                 Wednesday, February 12, 2003, Vol. 4, No. 30


                              Headlines

* C Z E C H   R E P U B L I C *

PPF HOLDINGS: Shareholders Approve Dissolution of Company
QUONEX REAL: Sazka Applies for Bankruptcy Proceeding in Court

* F R A N C E *

AIR LIB: Government Looks for Alternative Employment for Staff
FRANCE TELECOM: Obtains New EUR5 Billion Credit Facility
SUEZ SA: Mum Over Rumor It Refused Offer From Fortis
VIVENDI UNIVERSAL: Places Sale of Seagram Art Collection

* G E R M A N Y *

BUSCH JAEGER: Files for Insolvency, Parent to Cut Jobs
DEUTSCHE BA: Easyjet Still Reviewing Option to Acquire DBA
DRESDNER BANK: To Close Investment Banking Unit in Latin America
KIRCHMEDIA GMBH: Saban Confirms Interest in Kirchmedia
MOBILCOM AG: Supervisory Board Elects Dieter Vogel Chairman

* R O M A N I A *

COSMOROM SA: May Be Sold to Third Party - Shareholder

* S P A I N *

BABCOCK BORSIG: Spanish Trade Union Criticizes Takeover Offer
INTERDISCOUNT IBERICA: In Talks With Potential French Buyer
UNION FENOSA: Moody's Lowers Long-term Senior Unsecured Rating
UNION FENOSA: Mulls on Selling Core Assets to Reduce Debt

* S W E D E N *

LM ERICSSON: May Face Significant Damages From Patent Dispute

* U N I T E D   K I N G D O M *

ABERDEEN ASSET: Investors in Confusion Regarding Fund Transfer
BAE SYSTEMS: Enters Discussions to Join Northrop in Watchkeeper
BAE SYSTEMS: Regional Aircraft Obtains GBP19 MM Contract With BA
BRITISH ENERGY: Announces Disposal of Interests in Bruce Power
BRITISH ENERGY: Robin Jeffrey Resigns From Supervisory Board
CABLE & WIRELESS: Pacific Century Abandons Takeover Plans
EQUITABLE LIFE: Wins Right to Pursue E&Y For Millions of Pounds
GALA GROUP: Ratings Under Review for Possible Downgrade
GALA GROUP: Long-term Corporate Credit Ratings on CreditWatch
GLAXOSMITHKLINE PLC: Changes Responsibilities of Board Members
ENODIS PLC: Posts Group Loss Before Tax for First Quarter
P&O PRINCESS: EU Clears Proposed DLC Transaction With Carnival


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


PPF HOLDINGS: Shareholders Approve Dissolution of Company
----------------------------------------------------------
PPF spokesman Ivan Lackovic said the extraordinary general
meeting of PPF Investicni holding approved the dissolution of the
company without liquidation.

The meeting also resolved that majority shareholder, Ravin
Holding, a 100% subsidiary of PPF Cyprus, owning 94.4% of the
shares in the company, will take over all assets, rights and
duties of the PPF group.

The agreement also turned over the group's financial issues with
the remaining 8,500 shareholders of the holding firm to the
successor company.

Court-appointed expert, Ernst & Young, said the price of PPF
shares is KC740 apiece.  In a settlement viewed by the company as
"the most transparent" scheme, investors owning the shares by the
date of the entry of the asset takeover in the Companies Register
will get the money within two months from the transaction.

Half of the group's roughly 24,000 shareholders responded to the
company's mandatory public buyout of PPF shares for Kc400 on
April 11 to June 20, 2002.  The settlement with the remaining
shareholders will be made by Ravin, which will continue to stand
as strategic investor.


QUONEX REAL: Sazka Applies for Bankruptcy Proceeding in Court
-------------------------------------------------------------
Betting company Sazka has lodged a proposal to the court seeking
for the liquidation of Quonex Real--a move that would cancel all
contracts between the companies except for Sazka's right on a
property that would host the Ice Hockey World Championships in
2004.

Quonex Real company has not yet annulled a preliminary purchase
contract with the Sazka company and the parties are still holding
talks.  But if nothing changes, the deal would be broken off,
according to the head of the Quonex Real board Petr Maderic.

According to the Czech Television public broadcaster, Quonex Real
had decided to withdraw from the contract after Zazka failed to
pay a 50-million installment payment for the land to its owner.

The report says Sazka would lose the possibility of using the
land and would face a fine of about CZK400 million if it does not
abide by the agreement.

Sazka had pushed for the government to provide guarantees for a
loan worth CZK6 billion the construction of the stadium for the
2004 World Cup, in which it is a main investor.

Sazka originally wanted to guarantee the loan by the land on
which the arena is being built.

Under a draft purchase contract of January 30, Quonex's land was
to be transferred to Sazka.  But the deal is scuttled after a
court distrainer moved to auction off Quonex's land.

Sazka could opt to buy the land in the auction, but this would
mean paying Quonex's huge debts to Union banka.  Thus, Sazka
petitioned for Quonex's bankruptcy, as this would cancel all
contracts between the parties, except for Sazka's right to build
on the land and use it free of charge.


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


AIR LIB: Government Looks for Alternative Employment for Staff
--------------------------------------------------------------
The French transport minister, Gilles de Robien, and his deputy,
Dominique Bussereau, began talks with various French transport
groups, including Air France, the Paris airport authority and the
French railways, aimed at finding alternative employment for Air
Lib's 3,200 employees who are in danger of being displaced once
the carrier is liquidated.

The talks went in the wake of protest staged by employees at the
company's registered office.

Mr. de Robien said his ministry is exhausting every possible
means for the staff, including jobs with tourism companies and
transport sub-contractors, though he ruled out the possibility of
state financial support for an Air Lib redundancy plan.

The airline's chairman, Jean-Charles Corbert, meanwhile, issued
suggestions there are hopes coming from another investor.  Air
Lib was grounded last week when the government refused to renew
is operating license following breakdown of acquisition talks
with Dutch group IMCA.

Air Lib requested the state council to overturn the decision to
cancel the license, but the motion was rejected.

The mediator in the talks, Maitre Hubert Lafont, is due to submit
a report to the Creteil commercial court that will determine the
fate of the airline.
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


FRANCE TELECOM: Obtains New EUR5 Billion Credit Facility
--------------------------------------------------------
France Telecom announced Monday the signing of a new 3-year
syndicated credit facility in the amount of EUR 5 billion. The
new facility will replace the A tranche, of EUR 5 billion, which
was included in the EUR 15 billion syndicated facility dated
February 2002 (also comprising of a B tranche of EUR 10 billion
which will mature in February, 2005).

France Telecom has elected not to exercise the one-year Term Out
option which was available to extend the maturity under Tranche
A.

Terms and conditions on the new EUR 5 billion will be consistent
with the 3-year EUR 10 billion Tranche B of the existing
facility.

Fifteen banks, both French and international, initially
underwrote the new facility as Mandated Lead Arrangers and
Bookrunners for approximately EUR 333 million each. These 15
banks are: ABN AMRO Bank N.V., Barclays Capital, BNP Paribas,
HSBC CCF, CDC Finance CDC - Ixis, Citigroup, Cr,dit Agricole
Indosuez, Credit Lyonnais, Deutsche Bank AG, Dresdner Kleinwort
Wasserstein Limited, J.P. Morgan plc, Natexis Banques Populaires,
SG Investment Banking, The Royal Bank of Scotland plc and WestLB
AG, with Barclays Capital, Citigroup, Credit Agricole Indosuez
and SG Investment Banking acting as global coordinators.

Banco Bilbao Vizcaya Argentaria, S.A., Paris Branch, Credit
Mutuel - CIC, Industrial and Commercial Bank of China, Luxembourg
Branch and ING Bank N.V. joined the initial group of underwriters
as Mandated Lead Arrangers, The Bank of Tokyo-Mitsubishi, Ltd as
Mandated Senior Arranger, and Goldman Sachs International Bank
and Morgan Stanley Dean Witter Bank Limited as Mandated Co-
Arrangers.

A general syndication is expected to be launched prior to the end
of the month with the aim of being closed after France Telecom's
full year 2002 results are announced.


SUEZ SA: Mum Over Rumor It Refused Offer From Fortis
----------------------------------------------------
French utility group Suez SA refused to comment on buy-out rumors
involving Belgian bank insurer Fortis NV.  The company's comment
was sought after rumors circulated that it turned down Fortis'
offer to buy back its 10.8% stake.

Sources of Financial Times say Suez is lukewarm about the
proposal.

The group is trying to attract strategic buyers in the hope of
raising a higher price for the stake, which is worth about
EUR1.92 billion at current market prices, according to the
report.

Suez recently confirmed it intends to sell assets as part of a
debt- and cost-reduction plan started last September.  The aim is
to cut costs by EUR500 million this year, with a view to further
reducing its EUR28.2 billion debt to EUR100 million in 2004.

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


VIVENDI UNIVERSAL: Places Sale of Seagram Art Collection
--------------------------------------------------------
Vivendi Universal, the French conglomerate currently divesting
assets to pay down debts, plans to auction its art collection
known as "the Seagram collection" in the first half of 2003.

The collection, which it acquired after the merging of Canal+ and
Seagram, includes paintings by internationally renowned modern
artists, including one painting by Mark Rothko and several by
Larry Rivers.

It also has an array of drawings, especially from the
minimalists, a few sculptures (some by Rodin), a Picasso stage
curtain, a set of tapestries based on Miro designs, as well as
collector's items in glass and photographs of city life by Walker
Evans, Berenice Abbott, O. Winston Link and others.

Vivendi has chosen Christie's to arrange the auction except for
the photo collection, which will be placed in the hands of
Phillips, de Pury & Luxembourg.

Vivendi recently agreed to the sale of its 89% stake in Canal+
Technologies to Thomson Multimedia.  The transaction was closed
on the basis of EUR190 million in cash: EUR169 million has been
collected and the remainder is to be paid after post-closing
adjustment.

Vivendi Chief Executive Officer Jean-Rene Fourtou is currently
divesting assets with a plan to unload EUR16 billion in assets
before 2004 to pay down debts and refocus activities.

The conglomerate accrued EUR19 billion of debt, the biggest
corporate loss ever in France, as a result of ex-CEO Jean-Marie
Messier's US$77 billion acquisition spree.

CONTACT:  Vivendi Universal
          Paris
          Media: Antoine Lefort
          Phone: +33 (1) 71.71.1180
          Alain Delrieu
          Phone: +33 (1).71.71.1086


VIVENDI UNIVERSAL: Reports Revenues for 2002 and Fourth Quarter
---------------------------------------------------------------
FOURTH QUARTER 2002

--  Actual revenues of E16.4 billion or E8.1 billion excluding
businesses sold in 2002.

--  Excluding businesses sold in 2002, pro forma(1) revenues on a
constant currency basis up 3%.

--  All main businesses revenues are up at constant currency
basis.

FULL YEAR 2002

-- Actual revenues of E61.0 billion and E28.1 billion excluding
businesses sold in 2002.

-- Excluding businesses sold in 2002, pro forma(1) revenues on a
constant currency basis up 6%.

-- All main businesses revenues are up at constant currency
basis, except music (nearly stable despite a difficult market).

(1) The pro forma information illustrates the effect of the
acquisitions of the entertainment assets of USA Networks, Inc.,
Maroc Telecom and MP3.com, as if these transactions had occurred
at the beginning of 2001. The pro forma information is calculated
as a simple sum of the actual revenues of Vivendi Universal's
businesses (excluding businesses sold in 2002 : primarily Vivendi
Environnement and the VUP assets sold during 2002) with the
actual revenues reported by each of the acquired businesses in
each period presented. Additionally, the revenues of Universal
Studios international television networks are reported by
Universal Television Group. The reclassification has no impact on
the total revenues of Vivendi Universal. The pro forma revenues
are not necessarily indicative of the combined revenues that
would have occurred had the transactions actually occurred at the
beginning of 2001.

Vivendi Universal announced that for the fourth quarter ended
December 31, 2002, the company generated actual revenues of E16.4
billion, up 1% and E8.1 billion, excluding businesses sold in
2002, up 5% versus the same period of 2001. On a pro forma basis
and excluding businesses sold in 2002, revenues were nearly
stable, and up 3% on a constant currency basis. All revenues
reported in this release are preliminary and unaudited, and in
accordance with French GAAP.

For the year 2002, actual revenues were of E61.0 billion, up 6%.
Actual revenues, excluding businesses sold in 2002, reached E28.1
billion, an 11% increase over the 2001 comparative period. On a
pro forma basis and excluding businesses sold in 2002, revenue
growth for the year 2002 was 4%, and up 6% on a constant currency
basis.

FOURTH QUARTER AND YEAR 2002 BUSINESS UNIT HIGHLIGHTS

Cegetel/SFR:

Fourth Quarter 2002 Highlights: For the fourth quarter of 2002,
Cegetel reported revenue growth of 7% to E1.8 billion reflecting
strong performance of both mobile and fixed telephony services
divisions. As of January 23, 2003, Vivendi Universal holds a 70%
interest in Cegetel, against a 44% controlling interest as of
December 31, 2002 (representing a 56% interest in SFR, against
35% as of December 31, 2002). At SFR, revenues increased by 6%.
During the fourth quarter, ARPU (average revenue per user) from
prepaid customers increased 16% to E23.4 and ARPU from postpaid
customers was stable at E58.3. SFR recorded a 36% market share on
gross sales. Revenues for Cegetel's fixed telephony services
division increased 8% in the quarter.

Full Year 2002 Highlights: For full year 2002, Cegetel reported
revenue growth of 11% to E7.1 billion reflecting strong
performance of both mobile and fixed telephony services
divisions. At SFR, revenues increased 10% and the customer base
grew to 13.5 million customers. ARPU from prepaid customers
increased 13% to E22.2, and ARPU from postpaid customers slightly
increased to E58.3. Data and Services revenues represent 10% of
ARPU in 2002 from 7% in 2001. At year end, SFR had a 35.1% market
share on the French mobile telephone market, (33.9% for prior
year). As of December, 31, 2002, postpaid customers represented
53% of SFR's customer base. Revenues for Cegetel's fixed
telephony services division increased to E921 million, up 18% in
2002, mainly due to local traffic opened to competition since
January 1, 2002.

Music:

Fourth Quarter 2002 Highlights: UMG's revenues were down 2% to
approximately E2.1 billion, due to the adverse impact of currency
translation. On a constant currency basis revenues were up 4%
with a very strong release schedule increasing market share in a
difficult market. Sales in North America increased 15% in local
currency. SoundScan reported that UMG was responsible for 1 out
of every 3 current albums sold in the U.S. in the period. Best
sellers included new releases from Shania Twain, the 8 Mile
Soundtrack featuring Eminem and Greatest Hits from U2, Nirvana
and Elton John. Other major sellers released in the quarter were
albums from Mariah Carey, Andrea Bocelli, Jay Z, Ja Rule, Johnny
Hallyday and Star Academy.

Full Year 2002 Highlights: With the adverse impact of currency
translation, revenues were down 4% from the previous year to
approximately E6.3 billion. On a constant currency basis,
revenues were down only 1%. In 2002, UMG increased its global
market share despite difficult market conditions with market
share growing in all the world's major music markets. The US saw
an industry decline of 10.8% as measured by SoundScan while UMG's
album share rose 2.5 points to 28.9%. In 2002, 5 albums sold more
than 5 million units each versus 1 album last year. The best
selling album in the world was Eminem's The Eminem Show and
Eminem recordings (including the 8 Mile Soundtrack) sold over 21
million copies during the year. Other major sellers included
albums from Shania Twain, Nelly, U2, Ashanti, Nirvana, Enrique
Iglesias, and Bon Jovi.

Vivendi Universal Entertainment (VUE):

Fourth Quarter 2002 Highlights: VUE revenues reached E1.8 billion
up 16% principally due to the effect of the acquisition of USA
Networks on May 7, 2002. On a pro forma basis (had USA Networks
been acquired at January 1, 2001), VUE revenues would have
decreased 7%. However, on a constant currency basis, VUE pro
forma revenues increased by 1% on a pro forma basis. Strong
performance in Universal Television was offset by lower revenues
in Universal Pictures, Universal Parks & Resorts, and Spencer
Gifts.

Fourth Quarter Highlights by business unit, on a pro forma and
constant currency basis, include:

-- Universal Television Group revenues increased 31% principally
due to increased licensing revenues of 60% for ongoing series
such as Law & Order, Law and Order: Special Victim's Unit, Law
and Order: Criminal Intent, and Just Shoot Me. Universal
television Networks, which includes USA Network and Sci Fi
channel, benefited from stronger advertising and affiliate
revenues which increased by 12%. This increase in revenues is
largely attributable to strengthening of the advertising market
and the successful launch of new original programming such as
Monk and The Dead Zone on USA Network, and Taken and Stargate SG-
1 on Sci Fi Channel.

-- Universal Pictures Group revenues decreased 8% principally due
to fewer video releases, partially offset by stronger theatrical
performance. Theatrical revenues benefited from the successful
launch of Red Dragon which is expected to deliver $220 million of
worldwide box office, and 8 Mile, which generated $116 million at
the U.S. box office. In home video, 2002 releases included The
Scorpion King, E.T.: The Extra-Terrestrial 20th Anniversary
Edition, compared to 2001 which delivered the largest fourth
quarter in the history of Universal Pictures with such releases
as The Mummy Returns, Dr. Seuss' How The Grinch Stole Christmas,
and Jurassic Park III.

-- Parks & Resorts and Spencer Gifts decreased by 6%. Lower
management fees from theme park joint ventures, and lower holiday
sales at Spencer Gifts offset increased domestic theme park
attendance.

Full year 2002 highlights: VUE revenues reached E6.3 billion, up
27% principally due to the effect of the acquisition of USA
Networks on May 7, 2002. On a pro forma basis, (had USA Networks
been acquired at January 1, 2001), VUE revenues increased by 2%.
However, on a constant currency basis, VUE pro forma revenues
increased by 5% due to strong performance in Universal Pictures
and Universal Television and partially offset by lower revenues
at Universal Parks & Resorts.

Canal+ Group:

Fourth Quarter 2002 Highlights: For the fourth quarter of 2002,
Canal+ Group reported actual revenue growth of 3% to E1.3
billion. Revenues for Pay TV in France were up 6% to E671
million, mainly due to the 130,000 new subscribers of
CanalSatellite. On a pro forma basis, revenues were up 1%. The
French premium channel renewed an exclusive contract for the
French first division rugby championship, one of the channel's
most popular sports, for a period of four years starting with the
2003/2004 season. CanalSatellite added Sport+ (100% Canal+ Group)
and new Disney channels on an exclusive basis to its rich channel
offering which continued to support strong subscriber growth
during the fourth quarter.

Revenue for Film production and distribution (Studio Canal)
reached E195 million, up 10%.

Full Year 2002 Highlights: Canal+ Group reported a 6% revenue
growth in 2002, reaching E4.8 billion. On a pro forma basis,
revenues were up 4% The French premium channel slightly improved
its churn rate, ending the year with 4.48 million individual
subscriptions (representing a net decrease of 70,000
subscribers). CanalSatellite recorded another year of solid
performances, reaching the two million individual subscriber mark
in December 2002 (representing a net increase of 220,000 new
individual subscribers) with one of the lowest churn of any pay-
TV platform in the world. In total, pay-TV activities in France
(Canal+, CanalSatellite and NC Numericable) represented
approximately 7 million individual subscriptions at the end of
December 2002. StudioCanal's revenues were up 6%.

Maroc Telecom:

Fourth Quarter Highlights: Revenues increased to E372 million, up
20% over prior year (up 23% in local currency) due to strong
mobile prepaid customer growth combined with a slight growth in
fixed business driven by high international traffic in December.


Full Year 2002 Highlights: Actual revenues were up 47% .On a pro
forma basis, Maroc Telecom revenues increased to E1.49 billion,
up 10% (up 14% in local currency). Its mobile customer base grew
by 934,000 to approximately 4.6 million customers. Fixed revenues
increased 1% (up 4% in local currency). Vivendi Universal holds a
35% controlling interest in Maroc Telecom.

Vivendi Universal Games:

Fourth Quarter 2002 Highlights: Vivendi Universal Games revenues
were up 2% over the prior year, to E292 million. On a constant
currency basis, revenues from Vivendi Universal Games increased
7%. Growth was fueled by the performance of key PC and console-
based video game releases including Lord of the Rings: Fellowship
of the Ring, Spyro the Dragon: Enter the Dragonfly, No One Lives
Forever 2 and Dark Age of Camelot: Shrouded Isle.

Full Year 2002 Highlights: Vivendi Universal Games revenues
increased to E794 million for the year, an increase of 21% over
prior year. On a constant currency basis revenues were up 25%.
Growth was driven by the company's continued strength in the PC
games market, a well as its rapidly escalating presence in the
console games market. Additional best-selling titles for 2002
included Warcraft III, Nascar 2002, Crash Bandicoot: The Wrath of
Cortex, The Thing, Barbie as Rapunzel, Jumpstart Advanced, Bruce
Lee, Outlaw Golf and Hunter: The Reckoning.

Vivendi Universal plans to issue its fourth quarter and full year
2002 preliminary and unaudited earnings press release on March 6,
2003.

To view the Vivendi Universal's Business and Supplemental
Revenues, please visit this URL:
http://bankrupt.com/misc/VivendiUniversal.htm

                     *****

Vivendi Universal provided preliminary, unaudited revenue
information, on a French GAAP basis, for the fourth quarter and
full calendar year 2002 to 'Balo,' an official French business
newspaper, for publication in accordance with French regulatory
requirements. The company plans to issue its fourth quarter and
full year 2002 preliminary and unaudited earnings press release
on March 6, 2003.

CONTACT:  VIVENDI UNIVERSAL
          Headquarters
          42 Avenue de Friedland
          75380 Paris Cedex 08
          France
          Phone: +33 1 71 71 10 00
          Fax: +33 1 71 71 11 79
          Contact:
          Investor Relations
          E-mail: investor-relations@groupvu.com

          Daniel Scolan, Executive VP
          Investor Relations
          Phone: +33.1.71.71.12.33
          E-mail: daniel.scolan@groupvu.com
          Laurence DANIEL
          IR Director, Europe
          Phone: +33.1.71.71.12.33
          E-mail: laurence.daniel@groupvu.com
          Edouard LASSALLE
          Associate Director, Europe
          E-mail: edouard.lassalle@groupvu.com

          Vivendi Universal
          New York office
          375 Park Avenue
          New York, NY
          10152-0192
          USA
          Phone: +1 212 572 7000


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


BUSCH JAEGER: Files for Insolvency, Parent to Cut Jobs
------------------------------------------------------
UMS Schweizerische Metallwerke Holding SA (Swissmetal) has opened
insolvency proceedings for Bush Jaeger, its German, copper-
producing subsidiary.

The Luedenscheid-based company helps Swissmetal produce and
market semi-finished products of copper and copper alloys with
its annual production output of more than 20,000 tons and a work
force of 320 since 1990.

Swissmetal had indicated that job cuts will also be implemented
in Switzerland, with 45 to be laid off due to the worsening of
the economic situation.

Swissmetal is an internationally operating company that develops,
manufactures and markets semi-finished products made from copper
and copper alloys. It has many years of experience and is
characterized by high quality and precision work, in-depth
knowledge of the markets and technological leadership.

Full year sales for the metal company fell by 21% to SFR134.7
million, or by 19% to 45,000 tons.  Annual production of
Swissmetal, which employs a workforce of 1,200, is over 55,000
tons.

Other plants of the Swissmetal Group operate in Reconvilier
(Canton Bern) and in Dornach (Canton Solothurn), concentrating on
technologically advanced speciality products.

CONTACT:  SWISSMETAL BUSCH-JAEGER GMBH
          Altenaer Strasse 109
          D-588507 Luedenscheid
          Phone: +49 (0)2351 181 0
          Fax: +49 (0)2351 181 200


DEUTSCHE BA: Easyjet Still Reviewing Option to Acquire DBA
----------------------------------------------------------
Europe's largest low-cost airline Easyjet is still deliberating
on whether to exercise its option to acquire British Airways'
loss-making German subsidiary Deutsche BA, a spokesman for the
company told AFX.

The source is responding to a report of the Financial Times
saying negotiations regarding the takeover are in danger of
falling apart due to Easyjet's failure to agree with pilots on
new wage contracts based on conditions of employment for low-cost
carriers.

Easyjet's option is exercisable from August last year until April
30 of this year, and the management hopes to make a decision by
the end of March, though if they choose to they could still
extend the expiration to August 3.

The spokesman said the decision will depend on the political
acceptability of the airline entering Germany, access to airport
slots, the financial health of DBA and the staff's acceptance of
the new management.

According to a DBA spokesman, many of the German pilots are
amenable to the contract; it is only the Vereinigung Cockpit
union that has raised objections.

DBA's new chief executive, Martin Wyatt, warned the pilots that
withdrawal of easyJet's option would endanger all jobs at DBA.

Easyjet was able to provide EUR5 million to help transform the
airline into a low-cost model.  It is giving an additional
EUR600,000 per month until it exercises the option, wherein it
would pay another EUR30-39 million to British Airways depending
on the timing of the acquisition, which would be on a debt free
basis.

CONTACT:  DEUTSCHE BA LUFTVERKEHRSGESELLSCHAFT MBH
          Abteilung Kundenbeziehungen
          Postfach 23 16 24
          85325 Munchen
          Fax: 089/975 91 998

          EASYJET AIRLINE COMPANY LIMITED
          easyLand
          London Luton Airport
          Bedfordshire LU2 9LS
          UK
          Home Page: http://www.easyjet.com


DRESDNER BANK: To Close Investment Banking Unit in Latin America
----------------------------------------------------------------
Martin Duisber, executive director of Dresdner Bank's unit in
Brazil said, Germany's third-largest bank will close its office
in Rio de Janeiro and transfer Brazilian investment banking work
to offices in London and New York.

The move follows a year of slow activity in mergers, acquisitions
and advisory work for the 30-person unit that handled investment
banking in the region.

In December, Dresdner revealed its plan of cutting 450 jobs from
its Dresdner Bank Lateinamerika unit, or a third of its
workforce, to stem losses caused by slower economic growth and
currency devaluations in the region.  Rival banks, including Bank
of America Corp., packed up and left Brazil for the same reasons.

Dresdner Bank itself is cutting non-personnel costs by 10% and
reducing non-guaranteed bonus and performance related pay to
restore profitability.

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

Last month, Moody's Investors Service 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.

CONTACT:  DRESDNER BANK AG
          Jurgen-Ponto-Platz 1
          D-60301 Frankfurt/Main, Germany
          Phone: +49-(0) 69/2 63-0
          Fax numbers: General enquiries
                       +49-(0) 69/2 63-48 31
                       +49-(0) 69/2 63-40 04


KIRCHMEDIA GMBH: Saban Confirms Interest in Kirchmedia
------------------------------------------------------
US billionaire Haim Saban confirmed his interest in taking over
the assets of insolvent Kirchmedia and said he will make a
binding offer soon.

In an interview with Der Speigel magazine, Saban expresses his
confidence to bag the contract considering that his offer has a
wide edge over that of Heinrich Bauer Verlag's.  According to
him, he is only waiting for the necessary information to be
checked before sealing the deal.

It is known that Bauer and a partner is close to sealing a deal
concerning acquisition of Kirch assets, which include a 52.5%
stake in broadcaster ProSiebenSat.1.

But Saban played down the report, saying Bauer has been saying
since November that it is close to signing a deal.

Earlier reports indicated that Saban has contacted yet again
France's TF1 to launch a fresh bid for Kirchmedia, following its
loss in the bidding war to a consortium led by Bauer in
September.

CONTACT:  HAIM SABAN
          Saban Capital Group
          10100 Santa Monica Blvd.
          Los Angeles, CA 90067
          Phone: (310) 557-5100

          SOCIETE TELEVISION FRANCAISE 1
          1, quai du Point du Jour
          92656 Boulogne Cedex, France
          Phone: +33-1-41-41-25-99
          Fax: +33-1-41-41-29-10
          Homepage: http://www.tf1.fr
          Contacts: Patrick Le Lay, Chairman
                    Jean-Pierre Morel, Executive Vice-President


MOBILCOM AG: Supervisory Board Elects Dieter Vogel Chairman
-----------------------------------------------------------
In a meeting of the supervisory board Dr. Dieter Vogel was
elected without any dissenting vote as chairman of the
supervisory board. The management board is glad about this clear
decision and that the full working capacity is now recovered.

                     *****

Supporters of the company's founder and former CEO Gerhard Schmid
reportedly blocked Vogel's appointment three times.

But the government of Berlin and France Telecom pushed for Mr.
Vogel's appointment after providing the company with a
government-brokered rescue package involving state-guaranteed
loans and France Telecom taking on MobilCom's debts.


=============
R O M A N I A
=============


COSMOROM SA: May Be Sold to Third Party - Shareholder
-----------------------------------------------------
Plans to financially rehabilitate the Romanian Telecom incumbent
Romtelecom donot include mobile telephony arm Cosmorom SA,
according to OTE Telecom, the Greek majority shareholder of the
telecom.

OTE International executive vice-president Iordanis Aivazis said:
"With respect to Cosmorom, OTE will no longer provide financial
support to this alternative communications operator and is
currently looking into several options for the future, options
that include Cosmorom's full sale to a third party."

Aivazis added that the arm is currently operating at a loss, with
debts estimated at EUR172 million.  He also expressed doubts that
a full sale would generate total recovery of the losses.

Analysts attribute the negative outlook at Cosmorom to
insufficient investments in the company, which entered the market
too late.

Moreover, the company doesn't benefit from national coverage of
its services, making it unable to compete with Orange and
MobiFon.

Cosmorom posted net losses at EUR41.9 million and operational
income at EUR12.2 million in the first nine months of 2002, as
well as an EBITDA loss of EUR21.9 million.  Subscribers of
Cosmorom were pegged at only around 45,000, and users of prepaid
services at 50,000 in September, compared to an estimated 2.5
million customers for each of the company's competitors.

CONTACT:  COSMOROM SA
          Cosmorom Headquarters
          61 Nicolae Caramfil Str
          Sector 1, Bucharest ROMANIA
          Phone: (021) 404 1234
          E-mail: info@cosmorom.com
          Homepage: http://www.cosmorom.com/


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


BABCOCK BORSIG: Spanish Trade Union Criticizes Takeover Offer
-------------------------------------------------------------
A Spanish metal union based in the autonomous region of the
Basque Country criticized Grupo Duro Felguera's takeover offer
for Babcock Borsig Espana, the ailing Spanish subsidiary of
insolvent German engineering group Babcock Borsig.

According to reports, the union is seeking for an industrial plan
that could guarantee both investments in technology and
employment.  Demands to find a solvent and credible buyer for
Babcock were thus made by the union to Sociedad Estatal de
Participaciones Estatales, the Spanish state industrial holding
company.

In August, Babcock Borsig Espana signed a EUR60 million contract
with Duro Felguera regarding a project for Spanish electricity
group Endesa.

It was believed that the agreement could help ease difficulties
caused by the decision of the parent company to file for creditor
protection.

Babcock Borsig filed for insolvency in July 2002.  Dr. Helmut
Schmitz, Krefeld, was appointed as the creditors' trustee for all
of Babcock and 18 other companies.

CONTACT:  BABCOCK'S TRUSTEE
          Dr. Helmut Schmitz & Thomas Schmitz - Lawyers
          Am Flohbusch 1
          47802 Krefeld
          Phone: 02151 / 965350
          Fax: 02151 / 965360
          E-Mail: radr.Schmitz@t-online.de

          GRUPO DURO-FELGUERA, S.A.
          C/ Juan Esplandiu, 13-12a B
          Ed. Centro O'Donnell
          28007 Madrid
          SPAIN
          Home Page: http://www.gdfsa.es
          Phone: +34 91 5040345/ 91 504 3646
          Fax: +34 91 504 6446
          Contact:
          Ramon Colao Caicoya, Chairman
          Florentino Fern ndez del Valle, CEO
          Melissa Blanc Diaz, Economic Financial Manager


INTERDISCOUNT IBERICA: In Talks With Potential French Buyer
-----------------------------------------------------------
Insolvent Spanish consumer electronics retail chain Interdiscount
Iberica is reportedly holding sell-off negotiations with a French
retail group selling photographic equipment.

The potential buyer plans to acquire a majority stake in the
Spanish chain, which has accumulated debts of EUR5.97 million.

Interdiscount Iberica, which is 90%-controlled by Swiss company
Polyconseils, operates 20 retail outlets.

The chain's main creditor is Samsung Electronics Iberia, the
Spanish subsidiary of Korean consumer electronics manufacturer
Samsung.

CONTACT:  SAMSUNG ELECTRONICS IBERIA, SA
          C/Ciencias, 55-65
          Poligono Pedrosa
          08908 Hospitalet del Llobregat
          Barcelona, Spain
          E-mail: samsung@promofon.es
          Homepage:  http://www.samsung.es


UNION FENOSA: Moody's Lowers Long-term Senior Unsecured Rating
--------------------------------------------------------------
Moody's Investors Service downgraded the long-term senior
unsecured ratings of Union Fenosa SA and its guaranteed
subsidiary Union Fenosa Finance BV from Baa1 to Baa2. Its P-2
rating is confirmed.

The rating agency says, the downgrade, reflects "ongoing high
levels of debt, weak debt protection measures, a liquidity
position which is in measure dependent on divestments and the
inherent execution risks in both its investment and divestment
strategies at a time when the general operating and financial
environment remains difficult."

Union Fenosa has an expected debt burden of EUR7.4 billion at the
end of 2002.  It is aiming at reducing this to EUR6 billion in
2003 and 2004.

The rating has a negative outlook owing to the execution risks
that the company faces in its commitment to improve capital
structure and debt protection measures.  This could be changed to
stable on the materialization of the targeted improvements,
otherwise the Baa2 rating would come under pressure.

Moody's says the overall recovery of the company's financial
profile will take some time, but the improvement may not even be
sustained in case it succumbs to the lure of investment
opportunities provided by the improvement in the general
environment.

While Moody's says execution risks for the company remains high,
some risks have or are expected to be mitigated, particularly the
recent agreement with ENI as a strategic partner for its gas
operations.

The rating agency further says: "Nonetheless, Fenosa still has to
execute on its build-out program in domestic CCGT and gas
operations, which carries moderate to high risk, and it maintains
a larger exposure to the gas business relative to its size than
the other Spanish electric utilities."

Moody's also recognizes the solid progress the company has made
on its recently announced divestment plan, as well as in its
diversification of its funding sources and maturity profile.  It
says that the company should be able to meet its liquidity needs
over the next 12 month on condition that the company went through
its divestment plans on time.

It added that revised and more flexible regulatory regime is
generally favorable and should benefit Fenosa.

Long-term ratings affected:

Senior unsecured debt:

- EUR900 million bonds outstanding under EUR2 billion senior
unsecured EMTN program

- senior unsecured issuer rating

Union Fenosa is the third largest vertically integrated utility
in Spain. It has interests in gas, international electricity and
telecommunications. For the year ending 31 December 2001, it had
turnover of EUR5.4 million.


UNION FENOSA: Mulls on Selling Core Assets to Reduce Debt
---------------------------------------------------------
Union Fenosa is considering offers for its core assets following
announcements that it will hasten its debt reduction program,
confining it to a timeframe of four years.

Spain's third-largest utility says it will accept offers for its
domestic gas infrastructure assets, but these should correspond
to the high valuation of the assets.

"Our gas infrastructure holds tremendous strategic and economic
value," for us, a source familiar with developments at Fenosa
told Dow Jones Newswires.

Fenosa previously opted to divest non-core assets, such as real
estate and its stake in Spain's electricity transmission network,
to bring down the company's total debt close to EUR6 billion at
the end of this year.  The figure is lower than the expected
EUR7.8 billion initially aimed.  Fenosa Chairman Antonio
Basagoiti said last week the figure should "start with a four" by
the end of 2007.

Reports mentioned Enagas as potential bidder for Fenosa's
regasification plants and gas-fired combined cycle power plants
after the Spanish government suggested it wants Enagas to keep
its monopoly on the country's gas pipeline infrastructure.

But Enagas Monday played down the likelihood of making offers for
such assets any time soon, according to the report.

CONTACT:  UNION ELECTRICA FENOSA, S.A.
          Avenida de San Luis, 77
          28033 Madrid, Spain
          Phone: +34-91-567-60-00
          Fax: +34-91-567-63-29
          Homepage: http://www.uef.es
          Contacts: Carmela Arias y D­az de R bago,
                    Honorary Chairperson
                    Julio Hern ndez Rubio, Honorary Chairperson


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


LM ERICSSON: May Face Significant Damages From Patent Dispute
-------------------------------------------------------------
LM Ericsson AB could face significant damages arising from a
patent dispute with U.S-based Interdigital Communications, a
company that delivers components to telecom companies.

According to newspaper Dagens Industri, Interdigital is suing
Ericsson for allegedly infringing 8 of its TDMA patents, and is
demanding license fees of between 2.5 to 5.0% of Ericsson's
handset sales dating back to 1990.  The company is also claiming
between 1.5 to 3.5% of Ericsson's systems sale during the same
period.

The proceedings, which according to the report could cost
Ericsson up to SKR20 billion, are to start May 15 in a Texan
court.

Moody's Investors Service recently placed on review for possible
downgrade the Ba2 bond and senior implied ratings of Ericsson,
following a deeper than expected decline in Ericsson's revenues
in the fourth quarter of 2002.

The action was also influenced by Ericsson's worrisome sales
outlook, and the concern that orders may not yet be stabilized
this year.

Ericsson is a leading developer and manufacturer of mobile
telecom and datacom equipment.  It recorded revenues of about
SEK146 billion (EUR 15.8 billion) in fiscal year 2002.


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


ABERDEEN ASSET: Investors in Confusion Regarding Fund Transfer
--------------------------------------------------------------
Aberdeen investors holding funds excluded in the New Star Asset
Management transaction are confused of the plan under the sell-
off, according to The Scotsman.

It is understood that once shareholders of Aberdeen and New Star
approved the sale of some of Aberdeen's fund to New Star,
hopefully by March 31, a six-month transition period will be put
in place wherein unit-holders in the transferring funds will be
written to and provided with all information on the transfer.

But unit-holders in funds not transferring to New Star were also
sent letters giving information on the transfer, according to the
report.

Independent financial adviser Hargreaves Lansdown has advised
clients in some of Aberdeen's to vote in favor of the transfer
and stick with New Star.

But for those investors whose funds are not transferring to New
Star he said: "...there remains a great deal of uncertainty
around Aberdeen and we feel that there is a better alternative to
each of these funds."

Hargreaves Lansdown considered Aberdeen European Growth fund out
of the "premier league of European managers" and suggested to
investors to  "switch from Aberdeen European Growth into either
Lazard European Alpha or Investec European."

The report says Aberdeen denied rumors of outflows from the funds
not being transferred to New Star, other than those being
experienced by the market in general at present.

Hargreaves Lansdown advises clients in Aberdeen Fixed Interest
Unit Trust, Aberdeen Sterling Bond Unit Trust, Aberdeen High
Yield Bond Fund, Aberdeen Equity Income Fund, Aberdeen Technology
Unit Trust and Aberdeen European Tech Fund.


BAE SYSTEMS: Enters Discussions to Join Northrop in Watchkeeper
---------------------------------------------------------------
BAE SYSTEMS C4ISR has entered discussions with Northrop Grumman
to join the Northrop Grumman-led international team that was
down-selected by the UK Defence Procurement Agency (DPA) to
fulfil one of two Systems Integration Assurance Phase (SIAP)
contracts for the next stage of the GBP800+ million Watchkeeper
program.

It is anticipated that BAE Systems will have a significant role
in the building of an extensive UK modelling and simulation
environment, which will further refine the Northrop Grumman
solution to the UK Ministry of Defence's requirement for a
sophisticated airborne Intelligence, Surveillance, Target
Acquisition & Reconnaissance (ISTAR) capability using Unmanned
Aerial Vehicles (UAVs) as 'imagery collectors'.

BAE Systems C4ISR Managing Director, Phill Blundell, commented
"We are delighted with the opportunity to join the Northrop
Grumman team for the Watchkeeper SIAP. BAE Systems has world-
class UK-based engineering and integration skills that will
ensure Watchkeeper is optimally integrated within the UK's
C4ISTAR system architecture."

About WATCHKEEPER:

The Watchkeeper ISTAR UAV requirement has a target Initial
Operating Capability of 2006 and a Full Operating Capability by
2007/8. Watchkeeper will collect, process and disseminate imagery
intelligence direct to Divisional, Brigade and Battlegroup
command levels, interfacing seamlessly with other UK systems such
as Bowman, Astor, Future Rapid Effects System (FRES) and indirect
fire systems.

About BAE Systems:

BAE Systems is a systems company, innovating for a safer world.
BAE SYSTEMS employs nearly 100,000 people including joint
ventures, and has annual sales of around $19 billion. The company
offers a global capability in air, sea, land and space with a
world-class prime contracting ability supported by a range of key
skills. BAE Systems designs, manufactures and supports military
aircraft, surface ships, submarines, radar, avionics,
communications, electronics, guided weapon systems and a range of
other defence products. BAE Systems is dedicated to making the
intelligent connections needed to deliver innovative solutions.

BAE Systems C4ISR is a global centre of excellence supplying
innovative, network enhanced solutions focused on military
capability. It employs proven systems integration skills to
transfer advanced civil and military technologies into robust,
single-service and tri-service information management
environments. C4ISR optimises the operational effectiveness of
command & control and platforms within the digitized battlespace,
providing flexible architectures to support fast decision-making.

CONTACT:  Dennis Burton, C4ISR
          Phone: +44 (0) 1202 408512
          Mobile: +44 (0) 7801 712587

          BAE SYSTEMS
          Farnborough, Hampshire GU14 6YU, UK
          Phone: +44 (0) 1252 384605
          Fax: +44 (0) 1252 383947
          Home Page: http://www.baesystems.com

                      *****

Both BAE Systems and Lockheed Martin Corp were dropped out of the
race with Northrop Grumman and Thales.

The defense giant is scheduled to update the markets on the
status of talks with the Ministry of Defense regarding the Astute
and Nimrod programmes, which have been beset by delays and cost
over-runs expected to amount to up to GBP1 billion.

BAE is asking the Ministry to assume some financial burden
arising from these problem contracts.


BAE SYSTEMS: Regional Aircraft Obtains GBP19 MM Contract With BA
----------------------------------------------------------------
Regional Aircraft has won a five-year JetSpares contract with
British Airways CitiExpress. The airline, which is Europe's
largest regional carrier and a wholly owned subsidiary of British
Airways, operates domestic and European services from 26 airports
in the UK and Ireland.

The deal, which provides spare parts support for 16 Avro RJ
regional jets and will extend the current BAe 146 contract for up
to five aircraft, is expected to generate revenues in the region
of GBP19 million over the five-year period.

Alan Fraser, Managing Director of BAE Systems Regional Aircraft
commented: "These successes are particularly pleasing as it
confirms that we have achieved the high standards we set
ourselves. In covering their parts support, this contract
provides for the continuation of a very positive working
relationship with this customer. With the current restructuring
of Regional Aircraft into a service business, we intend to
continue developing and improving our services so that we can
offer airlines even greater added value in the future."

In response, Simon Witts, general manager engineering for British
Airways CitiExpress added, "In signing this support contract with
Regional Aircraft, British Airways CitiExpress will benefit from
the security of forward financial planning afforded by the
JetSpares program. It will also assist us in ensuring that we
achieve the optimum stock holding levels at our operating bases,
which is a critical factor in remaining competitive in the
regional sector"

This deal brings the combined JetSpares support contracts signed
during 2002 with three British operators of 146/RJ aircraft to
GBP39 million (US$60 million).

JetSpares is an individually customized support program, designed
to allow an airline to concentrate on its operation while BAE
Systems takes care of spares inventory, logistics and repairs.
There are over one hundred BAe 146/Avro RJ aircraft in the
JetSpares program, with the priority of keeping the airline's
business running smoothly by providing a first-class spares
support service and fixed monthly costs. The sum of these deals
alone covers a fleet of thirty-eight aircraft representing almost
ten percent of the world 146/RJ fleet.

About BAE Systems Regional Aircraft:

BAE Systems Regional Aircraft is responsible for Customer
Support, Engineering and Asset Management activities covering a
world-wide base of 160 customers operating over 1,100 aircraft in
addition to managing a trading and leasing portfolio of some 450
aircraft.

About BAE Systems:

BAE Systems is a systems company, innovating for a safer world.
BAE Systems employs nearly 100,000 people including Joint
Ventures, and has annual sales of around GBP13 billion. The
company offers a global capability in air, sea, land and space
with a world-class prime contracting ability supported by a range
of key skills. BAE Systems designs, manufactures and supports
military aircraft, surface ships, submarines, radar, avionics,
communications, electronics, guided weapon systems and a range of
other defence products. BAE SYSTEMS is dedicated to making the
intelligent connections needed to deliver innovative solutions.

CONTACT:  BAE SYSTEMS
          Farnborough, Hampshire GU14 6YU, UK
          Phone: +44 (0) 1252 384605
          Fax: +44 (0) 1252 383947
          Home Page: http://www.baesystems.com
          Contact:
          Nick Godwin
          Phone: +33 (0) 5 34 60 73 47
          Fax: +33 (0) 5 34 60 73 00
          E-mail: nick.godwin@baesystems.com
          Home Page: www.bae.regional.co.uk


BRITISH ENERGY: Announces Disposal of Interests in Bruce Power
-------------------------------------------------------------
British Energy shareholders approved Monday the disposal of the
Company's interests in the Bruce Group at an EGM held solely for
this purpose.

The disposal remains subject to a number of conditions but,
assuming these conditions are satisfied, closing is expected to
occur on or before February 14, 2003 as required by the sale
agreements, the HMG credit facility and the restructuring
principles accepted by HMG.

The Company is also continuing to work hard to reach formal
standstill agreements and agreement in principle on the terms of
the proposed restructuring with significant creditors by February
14, 2003 in accordance with the restructuring principles accepted
by HMG and the terms of the HMG credit facility.

If the disposal is not completed, or if agreement is not reached
with significant creditors, the Company may have to seek
insolvency proceedings, in which case the distributions to
unsecured creditors may represent only a small fraction of their
unsecured liabilities and it is highly unlikely there would be
any return to shareholders. Even if the disposal is completed and
agreement reached with the significant creditors, the proposed
restructuring would remain subject to a large number of
significant uncertainties and the return if any to shareholders
would represent a very significant dilution of their existing
interests.

A further announcement will be made in due course.

CONTACT: Andrew Dowler, Financial Dynamics
         Phone: 0207 831 3113
         Paul Heward, Investor Relations
         Phone: 01355 262 201
         Homepage: http://www.british-energy.com


BRITISH ENERGY: Robin Jeffrey Resigns From Supervisory Board
------------------------------------------------------------
Further to the announcement on November 28, 2002 that Dr. Robin
Jeffrey had stepped down as Chairman and Chief Executive of
British Energy, he has now resigned as a Director with immediate
effect. His employment with British Energy will terminate on
February 15, 2003.

Mr. Peter Stevenson has decided to step down as a Non-Executive
Director following the EGM on February 10, 2003.  Mr. Stevenson
joined British Energy prior to privatization and has made a major
contribution to the Board over many years.  British Energy would
like to thank him for the considerable role he has played in the
company's development.  His contribution has been much
appreciated.

Duncan Hawthorne, currently Executive Director and CEO of Bruce
Power will relinquish his executive duties when the sale of
British Energy's major interest in Bruce Power is completed.  Mr.
Hawthorne was a key member of the team when Bruce Power was
acquired and he is to be commended on his considerable
achievements at Bruce Power.

Mr. Hawthorne will remain on the Board of British Energy as a
Non-Executive Director.  He will continue to provide the British
Energy Board with nuclear operating experience during this
transitional period.

CONTACT:  FINANCIAL DYNAMICS
          Andrew Dowler
          Phone: 020 7831 3113


CABLE & WIRELESS: Pacific Century Abandons Takeover Plans
---------------------------------------------------------
Hong Kong-based phone company Pacific Century Cyberworks said in
a statement to the stock exchange in Hong Kong it will not make
an offer for Britain's Cable and Wireless.

It said it had "concluded that it is not in the company's
interests for the continuing uncertainty regarding any possible
take over offer for C&W to continue".

According to reports, PCCW was set to offer 100p a share for C&W,
valuing the company at around GBP2.4 billion.  But the group
owned by billionaire Richard Li denied putting any price in its
approach.

Analysts say the problem is not drawing bidders for the troubled
UK telecoms company but putting a price on the company's
confusing "plethora of assets," according to The Herald.

Cable & Wireless' divisions include C&W Regional in the Caribbean
and Asia, and the struggling C&W Global corporate telecoms unit.
C&W Regional, which has a stedy cash flow, is sustaining C&W
Global towards its anticipated break-even in early 2004.

CONTACT:  Investor Relations
          Samantha Ashworth
          Phone: +44 (0)7957 804618
          Caroline Stewart
          Phone: +44(0) 207 315 6225
          Virginia Porter (US)
          Phone: +1 646 735 4211


EQUITABLE LIFE: Wins Right to Pursue E&Y For Millions of Pounds
--------------------------------------------------------------
Commenting on Mr Justice Langley's judgment today, Vanni Treves,
Equitable Life's Chairman, said:

"Ernst & Young applied to strike out all of Equitable Life's
claims on the grounds of no reasonable prospect of success. They
have failed to achieve that objective and Mr Justice Langley
believes the Society has "some real prospects of success" on
important elements of the claim."

"The Board is surprised with Mr Justice Langley's decision to
strike out the lost sale claim and also with those parts of the
judgment that reduce the bonus declaration claim."

"Leading Counsel has advised the Board that we must appeal and we
will do so with speed and vigor. In addition, we will press on
with the bonus declaration claim and the preliminary advice we
have received is that the judgment, as it stands, allows a claim
of hundreds of millions of pounds to be pursued against E&Y. The
Society is confident that we have a strong claim against E&Y with
a real prospect of success and, in taking the matter forward,
Equitable Life is much encouraged by those parts of the judgment
on which it succeeded." (See below).

The Judgment of the Court

E&Y attempted to strike out the bonus claim on the grounds that
the decisions made by the Directors of Equitable as to the level
of bonuses fell outside the scope of their duties as auditors,
and that E&Y's breach did not cause the loss. The Judge rejected
both arguments at the strike out hearing. He said (paragraph 122
of the judgment):

". I do think it is open to Equitable to pursue with some real
prospect of success a claim that the decisions as to the level of
bonuses fell within the scope of E&Y's duties".

The Judge adopted a similar response in rejecting E&Y's argument
that their breach did not cause the loss. He said (paragraph
124):

"I see nothing in principle to justify a different answer to the
question of causation from my answer to the submission that the
claim is not within the scope of E&Y's duty".

We recognise that the judgment does question in some respects the
manner in which Equitable's bonus declaration claim has been
formulated, and Mr Justice Langley has invited the Society to
review the manner in which the claim has been presented. We will
be reviewing the bonus declaration in the light of his
observations.

Note to editors:

In the proceedings brought by Equitable Life against Ernst &
Young (E&Y), announced on 15 April 2002, the Society alleges that
in each of the years 1997, 1998 and 1999, the statutory accounts
of Equitable Life were deficient because they did not include
very substantial technical provisions in relation to guaranteed
annuity options and, in consequence, E&Y as auditors were
negligent and in breach of their duty to Equitable Life in
failing to report that deficiency.

The lost sale claim

Equitable Life contends that E&Y's breaches of duty have caused
it substantial losses. Had Equitable Life been aware of the true
position in 1998, it would have sold its business and assets and
its loss is the difference between its value in September 1998
(and other dates) and its value when the assets were actually
sold in [March 2001]. This is what the parties and the Judge
describe as the 'lost sale claim'.

The bonus declaration claim

Equitable also claims that had E&Y advised the Directors of the
need for the technical provisions, the Directors would have not
declared the bonuses actually declared for the years 1997 -2000.
The Society claims the amount of bonuses that it did declare.
This is what the parties and the Judge describe as the 'bonus
declaration claim'.

The Society's solicitors are Herbert Smith. Leading counsel are
Mr. Iain Milligan QC and Mr. Robert Miles QC. Junior counsel is
Mr. Guy Morpuss.


GALA GROUP: Ratings Under Review for Possible Downgrade
-------------------------------------------------------
Moody's Investors Service placed the ratings of Gala Group
Holdings plc under review for possible downgrade following the
announced acquisition of Gala by Candover Investments plc and
Cinven Ltd. for approximately GBP 1.24 billion.

Affected ratings are:

Gala Group Holdings Plc:

- Senior implied rating at Ba3

- Senior unsecured issuer rating at B2

- GBP 155 million senior unsecured note issuance at B2

Gala Group Ltd:

- GBP 320 million senior secured bank facilities at Ba3

Moody expects Gala's debt levels to increase under the proposed
transaction, which is expected close in March.  The assessment is
given considering the significant equity element of the
acquisition that would be required to maintain or reduce the
company's existing debt levels.  Gala has GBP431.1 in existing
cash pay debt as of September 28, 2002.

There is a strong possibility that the acquisition would result
in a refinancing of the company's existing debt, according to
Moody's.  Of particular interest is the put option based on the
protective clauses included in the documentation regarding a
change of control that is held by senior unsecured note holders
as well as the creditors under the GBP 320 million credit
facility.  If the bondholders exercised the put option or the
bonds were tendered above par as part of a refinancing, Moody's
would expect to confirm and withdraw the rating for the bonds.  A
refinancing of the rated bank loans would also result in a
confirmation and rating withdrawal for the credit facilities.

The rating agency says its review will tackle on the the likely
business and financial strategies of Gala going forward,
including the proposed debt leverage profile and relative ranking
of the company's different creditors following the company's
expected re-capitalization.


GALA GROUP: Long-term Corporate Credit Ratings on CreditWatch
-------------------------------------------------------------
Standard & Poor's Ratings Services placed its long-term 'BB-'
corporate credit ratings on Gala Group Holdings PLC on
CreditWatch with negative implications.  It affirmed, meanwhile,
Gala's 'B' senior unsecured debt rating.

The action follows the gaming company's announcement that Cinven
Ltd. and Candover Investments Plc have agreed to buy Gala for
GBP1.24 billion (US$2.03 billion).

Standard & Poor's credit analyst Olli Rouhiainen said, "Although
the balance-sheet structure of the acquiring entity is unknown,
Gala is expected to increase its leverage, based on recent
similar transactions in the U.K. gaming industry."

The analyst further said the negative CreditWatch status meant
the ratings could still be lowered once the capital structure
becomes clear.  The affirmation of the short-term rating on the
bond, on the other hand, shows the bondholders' right to put
their bonds to Gala in the event of a change of control.

Offsetting uk-Based company's leading position and good standing
in the sector are its leveraged capital structure, and declining
admissions trend in the bingo industry.

S&P indicated to resolve the CreditWatch status after the
acquisition deal is finalized following the completion of a
tender offer for all outstanding public debt.


GLAXOSMITHKLINE PLC: Changes Responsibilities of Board Members
--------------------------------------------------------------
The Board of GlaxoSmithKline has reviewed the roles and
responsibilities of the company's Non-Executive Directors.
Consequently, the following appointments have been made, taking
advantage of the skills and breadth of experience of the
company's Directors. The changes took effect from 7th February
2003:

Nominations Committee

Sir Ian Prosser has been appointed Chairman of the Nominations
Committee in place of Sir Christopher Hogg who will remain a
member of the Committee.

Remuneration Committee

Sir Peter Job has been appointed a member of the Remuneration
Committee.

Corporate Social Responsibility Committee
Mr Donald McHenry has been appointed Chairman of the Corporate
Social Responsibility Committee in place of Sir Christopher Hogg
who will remain a member of the Committee.


ENODIS PLC: Posts Group Loss Before Tax for First Quarter
---------------------------------------------------------
Group Financial Highlights

EURm (except EPS)
                                            Q103     Q102
Operating profits *
FSE - North America                          9.4      9.8
FSE - Europe and Asia                        1.6      2.7
FSE - Global                                11.0     12.5
FRE                                         (0.8)     1.7
Adjusted Group profit/(loss) before tax*     2.5      5.1
Group profit/(loss) before tax              (0.2)    (3.7)
Adjusted, diluted EPS*                       0.5p     1.4p
Net debt                                    182.0    376.1

* before exceptional items and goodwill amortization
Key Points

- Results in line with expectations

- Food Service Equipment - North America: like-for-like operating
profit ** up 8% with evidence of further market share gains

- Global Food Service Equipment operating profit down 12%,
reflecting disposals and foreign exchange effects

- Significant progress in Food Retail Equipment - reduced losses
versus Q402

- Q102 operating profits include EUR2.1m profit contribution from
businesses subsequently sold

- Net debt at EUR182.0m less than half prior year figure ** like-
for-like adjusted for disposals and foreign exchange

Andrew Allner, Chief Executive Officer said:

- The Q1 results are in line with our expectations. However,
given the recent signs of increasing nervousness among our
customer base about the political situation and economic outlook,
and the impact of adverse foreign exchange movements, we are
becoming a little more cautious about the likely full year
outturn. We continue to take the appropriate measures to mitigate
the impact of this difficult trading environment, and are
confident that the consistent implementation of our strategy will
leave Enodis strongly positioned when growth is resumed."
Chief Executive Officer's Review

Overview
As anticipated markets have continued to be weak. Our Q1 results
are, however, in line with the Board's expectations. Improved
like-for-like performance at Food Service Equipment - North
America (8% up on Q102) has offset continuing weaker European
performance. Whilst Kysor Warren continues to make operating
losses, these have been significantly reduced since Q402 as its
new management team's focus on quality and productivity has
improved operations and hence results. We have generated
EURI10.2m of positive pre-exceptional operating cashflow after
capital expenditure. There was a ­I0.5m free cash inflow during
the quarter, after EUR5.7m of semi-annual interest payments on
our 10% senior subordinated notes. Net debt at EUR182.0m is less
than half the Q102 balance and has reduced slightly since our
Financial Year end of 28 September 2002 primarily due to the
weakening of the dollar.

Results

Q103 profit before tax, exceptional items and goodwill
amortisation was EUR2.5m (Q102: EUR5.1m). The decrease from prior
year was primarily caused by:

                                          EURm
- Loss of Q102 operating profits from
businesses sold during FY02               (2.1)
- Reduced Food Retail Equipment results   (2.5)
- Decreased interest charge                1.4

Like-for-like Q103 Global Food Service Equipment operating
profit* was flat compared to Q102, masking an 8% increase in Food
Service Equipment - North America like-for-like profits.

Operating margins declined to 5.2% (Q102: 6.3%) principally as a
result of lower margins in Food Service Equipment - Europe/Asia
and losses in Food Retail Equipment. Food Service Equipment -
North America margins declined slightly to 9.4%.

* In this discussion, operating profit is before exceptional
items and goodwill amortisation.

Exceptional Items

Q103 exceptional items comprise the following:
                                                    EURm
Favourable settlement of disposal warranty claims   2.5
Increased legal fee accruals in respect of         (1.7)
Consolidated Industries litigation

Net credit                                          0.8

More details are contained in Note 4 to the attached unaudited
financial statements.

Cashflow and Financing
Pre-exceptional operating cash inflow, after capital expenditure,
was EUR10.2m reflecting little movement in net working capital
during the quarter.

After interest and tax, there was a EUR0.5m free cash inflow.
EUR5.7m of semiannual interest was paid in respect of our 103/8%
senior subordinated notes.

Net debt reduced by EUR4.1m compared to the level at 28 September
2002,
predominantly due to the weakening of the US$ from $1.55:EUR1 to
$1.60:EUR1 at period end.

Interest in Q103 was EUR1.4m lower than Q102 due to the impact of
lower principal balances offset by higher interest rates on our
senior notes.

Earnings Per Share

Adjusted diluted earnings per share are 0.5p (Q102:1.4p having
adjusted for the bonus element of last year's Rights Issue).

REVIEW OF OPERATIONS

Global Food Service Equipment
Global Food Service Equipment comprises our operations in North
America, approximately 76% of Food Service Equipment sales, and
our operations in Europe/Asia. At the time of our preliminary
announcement in November we stated that we did not anticipate any
improvement in the North American food service equipment markets
for the year as a whole.

We believe the market in Q103 is up some 5% compared to Q102
during which period demand was of course adversely impacted by
the events of September 11, 2001. The markets in Europe were, as
expected, mixed and continued to be down versus prior year as
Europe lagged North America.

Results Like-for-like Q1 sales for our North American operations,
including exports, were up 10% on the prior year, partially
reflecting the impact of September 11, 2001 which reduced the
comparative figures.

In absolute terms, sales at EUR100.1m were down EUR7.2m on the
prior year, predominantly due to the effect of disposals and
foreign exchange movements. The 4% decline in reported operating
profits in Food Service Equipment - North America reflected the
impact of disposals and foreign exchange. Corresponding like-for-
like operating profits were up 8% as most of our continuing
businesses performed strongly. However, at our North American
refrigeration business pricing issues and a move to lower margin
products reduced profits.

Weak European markets led to overall flat like-for-like sales.
However, like-forlike profits fell by 35%, principally due to the
continued effects of low volume and factory relocations in two of
our UK businesses, although in both cases significant improvement
has been seen since Q402.

Food Retail Equipment
Returning Kysor Warren, and therefore Food Retail Equipment, to
profitability remains a key priority, although it will take some
time. Significant action has been taken by the new management
team to improve customer satisfaction, product quality and
productivity. Early signs are encouraging, with trial orders
being received from several customers that had previously decided
to source product elsewhere - a positive lead indicator for the
future.

The underlying run rate of losses at Kysor Warren was
significantly lower than in Q402.

Results
Like-for-like sales were down 25% on the prior year, due to lower
sales at our operations in Mexico and unseasonally higher sales
in Kysor Panel Systems in Q102, along with some price erosion.

Like-for-like operating profits were down as a consequence of
lower sales however this was offset by aggressive cost control.

Property
We have now signed contracts in respect of the next phase of
development of our Felsted property, which we continue to expect
to contribute to full year property profits of around EUR4m (FY02
EUR8m).

Current Trading and Outlook
Our Q1 results were as we anticipated at the start of FY 03, in
what is seasonally our weakest quarter. Given recent signs of
increasing nervousness among our customer base about the
political situation and economic outlook, we are becoming a
little more cautious about the likely full year outturn. Were the
present EUR/US$ rate of $1.65:EUR1 to be maintained, compared
with last year's average rate of $1.47:EUR1, our US operating
results would be reduced by some EUR5m with an offsetting benefit
to the interest charge of approximately EUR1m.

Management continues to focus on customer satisfaction, cost
control and cash management to mitigate the impact of this
difficult trading environment. We expect our Food Service
Equipment - North America business to build on the market share
progress achieved over the last year. In Food Retail Equipment we
anticipate further progress at Kysor Warren as our management
actions take effect.

Management Discussion and Analysis (MD&A)
Under the terms of our 103/8% senior subordinated notes we are
required to prepare an MD&A and file it with the Securities and
Exchange Commission (SEC) in the US on Form 6-K. This is a US
style explanation of our Q103 results and contains more detail of
certain matters for example liquidity and capital resources,
historical cashflows and legal proceedings including more detail
on the status of the Consolidated Industries cases. You will be
able to obtain a copy of the filing on the SEC website at
www.sec.gov.

A copy of the company's unaudited financial statements may be
viewed at: http://bankrupt.com/misc/EnodisPLC.pdf

CONTACT:  Andrew Allner Chief, Executive Officer
          Phone: 020 7304 6006
          Dave Wrench, Chief Financial Officer
          Phone: 020 7304 6006
          Andrew Lorenz, Financial Dynamics
          Phone: 020 7269 7113


P&O PRINCESS: EU Clears Proposed DLC Transaction With Carnival
--------------------------------------------------------------
The European Commission in Brussels on Monday announced the
unconditional clearance of the proposed DLC transaction between
Carnival Corporation and P&O Princess Cruises plc. Carnival and
P&O Princess note that the EC's appraisal of the DLC transaction
reflects its earlier clearance decision of July 24, 2002 in
relation to Carnival's share exchange offer to acquire P&O
Princess. This clearance, together with the approval given by the
U.S. Federal Trade Commission on October 4, 2002, means that all
antitrust consents required for the DLC transaction have now been
obtained.

The directors of Carnival and P&O Princess accept responsibility
for the information contained in this announcement. To the best
of the knowledge and belief of the directors of Carnival and P&O
Princess (who have taken all reasonable care to ensure such is
the case), the information contained herein is in accordance with
the facts and does not omit anything likely to affect the import
of such information.

Merrill Lynch International and UBS Warburg Ltd., a subsidiary of
UBS AG, are acting as joint financial advisors and joint
corporate brokers exclusively to Carnival and no-one else in
connection with the Carnival DLC transaction and the Partial
Share Offer and will not be responsible to anyone other than
Carnival for providing the protections afforded to clients
respectively of Merrill Lynch International and UBS Warburg Ltd.
as the case may be or for providing advice in relation to the
Carnival DLC transaction and the Partial Share Offer.

Salomon Brothers International Limited, trading as Schroder
Salomon Smith Barney and Credit Suisse First Boston (Europe)
Limited are acting for P&O Princess and no one else in connection
with the matters referred to herein and will not be responsible
to any other person for providing the protections afforded to
clients of Schroder Salomon Smith Barney or Credit Suisse First
Boston (Europe) Limited or for providing advice in relation to
the matters referred to herein.

Terms used in this announcement and not defined in this
announcement have the same meaning as in Carnival's announcement
of 8 January 2003.

                     *****
The review, which follows the first examination in July, was
prompted by a shift in the structure of the deal.

P&O Princess, owner of the ship used in the "The Love Boat"
television series in the 1970s and 1980s, agreed to the deal with
Carnival after the U.S. company arranged to form a dual-listed
company.

In the combined group, which will retain the Carnival name, each
company will continue to have a separate existence, but the
boards and senior management will be identical. Carnival Chairman
and Chief Executive Micky Arison will head the new company.

The deal, worth US$5.7 billion, is expected to create the world's
largest cruise line of 65 ships and 100,000 berths.

CONTACT:  BRUNSWICK (for P&O Princess)
          Sophie Fitton
          Phone: +44-20-7404-5959,

          FINANCIAL DYNAMICS (for Carnival)
          Nic Bennett
          Phone: +44-20-7831-3113 (CCL POC)


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

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

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