/raid1/www/Hosts/bankrupt/TCREUR_Public/030221.mbx             T R O U B L E D   C O M P A N Y   R E P O R T E R

                             E U R O P E

                 Friday, February 21, 2003, Vol. 4, No. 37


                              Headlines

* B E L G I U M *

LERNOUT & HAUSPIE: Court Clears Smith Katzenstein's Engagement

* F I N L A N D *

SONERA CORP.: To De-list Share and Warrant From Helsinki Bourse

* F R A N C E *

FRANCE TELECOM: Company Profile
TITUS INTERACTIVE: Discloses Important Drop of Net Revenues
TITUS INTERACTIVE: Collapse Into Insolvency Just a Matter of Time
VIVENDI UNIVERSAL: Paves Way for Break-up of Entertainment Asset

* G E R M A N Y *

CARGOLIFTER AG: Sees Rescue From American Logistics Firm
DEUTSCHE TELEKOM: Unit to Refer Merger Dispute to Arbitration
DRESDNER BANK: S&P Assigns Preliminary Ratings in CDO Deal
INFINEON TECHNOLOGIES: Claims Uninformed of Court Ruling

* H U N G A R Y *

MFB: Posts HUF142.21 Billion Loss in 2002 Financial Report

* I T A L Y *

FIAT SPA: Snecma Courts Joint Bid for Unit With Finmeccanica
TELECOM ITALIA: Hopes to Raise EUR600 MM From Stake Sale

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

LAURUS N.V.: Requests Investigation on Possible Mismanagement
UNITED PAN-EUROPE: Shareholders Approve Recapitalization

* N O R W A Y *

DEN NORSKE: Faces Significant Potential Losses in Loan Portfolio

* S W E D E N *

ABB LTD.: Combustion Engineering Files ABB-Backed Prepack

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

UBS: Sees No Clear Indication of Recovery in the Near Future

* U K R A I N E *

CJSC PRIVATBANK: Fitch Places Individual Rating on Negative Watch

* U N I T E D   K I N G D O M *

BAE SYSTEMS: Announces Agreement to Restructure Contracts
BLAZEPOINT PLC: To Decide on Placing Company in Liquidation
BRITANNIA ZINC: Parent Decides to Close and Stop Production
BRITISH ENERGY: S&P Adjusts Grades Following Standstill Agreement
CORUS GROUP: Clears Media Speculation on Sale of Aluminum Assets


=============
B E L G I U M
=============


LERNOUT & HAUSPIE: Court Clears Smith Katzenstein's Engagement
--------------------------------------------------------------
Lernout & Hauspie Speech Products N.V. obtained Judge Wizmur's
authority to employ Smith Katzenstein & Furlow LLP, nunc pro
tunc to November 26, 2002, to act as the estate's counsel only
for the commencement and prosecution of avoidance actions in
which L&H NV's bankruptcy counsel cannot act for the estate due
to ethical conflicts of interest.

SKF will charge the Debtors on an hourly basis in accordance
with its standard hourly rates in effect on the date the
services are rendered. The SKF attorneys who will primarily
represent L&H NV, and their standard hourly rates, are:

        Professional            Position      Hourly Rate
        ------------            --------      -----------
        Kathleen M. Miller      Partner          $250
        Roger Anderson          Associate         175
        Joelle E. Polesky       Associate         175
        Deborah C. Sellis       Associate         175
        Yaprak Soysal           Paralegal          90
        Ellen Sebastiani        Paralegal          90
        Marianne M. Payne       Paralegal          90

These standard hourly rates are subject to adjustment generally
on January 1 of each year. (L&H/Dictaphone Bankruptcy News,  
Issue No. 36; Bankruptcy Creditors' Service, Inc., 609/392-0900)


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


SONERA CORP.: To De-list Share and Warrant From Helsinki Bourse
---------------------------------------------------------------
The Board of Directors of Sonera Corporation has decided to apply
for removal of the company's share (Helsinki:SRA1V) and 1999A
warrant from the main list of the Helsinki Exchanges.

The application for removal of the company's share has been
submitted to Helsinki Securities and Derivatives Exchanges,
Clearing House Ltd. Consequently, the Sonera share and 1999A
warrant may be transferred to the surveillance list. The removal
of the share will be effected subsequent to TeliaSonera AB having
acquired ownership to all outstanding shares of Sonera
Corporation and the listing committee of Helsinki Securities and
Derivatives Exchanges, Clearing House Ltd. having decided to
remove the share from the list.

It is the intention that the application for removal of the
company's 1999A warrant will be submitted so that the share and
1999A warrant may be removed from the list simultaneously.

The de-listing of the Sonera share from the Helsinki Exchanges is
expected to take place by mid-April.

TeliaSonera, formed through a merger of Telia and Sonera in
December 2002, is the telecommunications leader in the Nordic and
Baltic regions. TeliaSonera's overall focus is on best serving
its customers in its core business and creating value for its
shareholders through stronger profits and cash flows. TeliaSonera
is listed on Stockholmsborsen, Helsinki Exchanges, and NASDAQ.
Pro forma sales as of December 31, 2001, totaled 80.9 billion SEK
(EUR 8.9 billion) and the number of employees as of June 30,
2002, was 30,045.


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


FRANCE TELECOM: Company Profile
-------------------------------

NAME: 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

WEBSITE: http://www.francetelecom.fr

TYPE OF BUSINESS: Provides local, long-distance, and
international calling services, as well as wireless phone service
and data transmission.

SIC: Telecommunications - Local Telecom & Private Transmission
Services

EXECUTIVES:
     Thierry Breton, President Directeur General   
     Jean-Paul Bechat, Chairman and CEO, SNECMA
     Alain Costes, Director of Technology, Ministry of Research
     Pierre-Francois Couture, Chairman of the Managment Board of
                           Entreprise Miniere et Chimique  
     Yannick d'Escatha, Executive Vice President, Industrial
                        Affairs, Electricite de France
     Jean-Pierre Jouyet, Treasury Director at the Finance
                         Ministry
     Pierre Gadonneix, President, Gaz de France
     Jacques de Larosiere, Advisor BNP Paribas
     Pierre-Mathieu Duhamel, Budget Director, Ministry of the
                            Economy, Finance and Industry
     Henri Serres, Central Director of Information Systems
                    Security at the Defense Ministry
     Jean-Luc Tavernier, Director of Forecasting at the Finance
                         Ministry
     Bertrand Schneiter, Senior official at the Finance Ministry

INVESTOR RELATIONS: Walter Vejdovsky
                    Phone: 0 800 05 10 10
                    Fax: +33 (0)1 44 44 53 49
                    E-mail: jclaude.grynberg@francetelecom.com m

NUMBER OF EMPLOYEES: 220,000 (as of 2003)

CONSOLIDATED OPERATING REVENUES: EUR46.6 billion (as of 2002)

CONSOLIDATED NET LOSS (after non-recuring provisions and
exceptional amortization): EUR12.176 billion (end of June 2002)

TOTAL DEBT: EUR69.696 billion (end of June 2002)

Breakdown (June 30, 2002):

Exchangeable or convertible notes
Due after more than one year: EUR7,668 million
Due after less than one year: EUR 3,082 million

Other long-term financial debt
Due after more than one year: EUR41,485 million

Due after less than one year: EUR6,128 million

Withdrawals from lines of credit of France Telecom
EUR15 billion facility: EUR8,150 million
US $1.4 billion facility: EUR1,483 million
Other bank overdrafts, short-term borrowings: EUR4,136 million
Marketable securities: EUR(148) million
Available funds: EUR(2,288) million

MAJOR ASSETS UNDER US GAAP (June 30,2002):

Goodwill, net: US$12,426 million
Other intangible assets: US$15,965 million
Property, plant and equipment:  US$30,946 million
Investment securities: US$1,854 million
Net deferred tax assets (current and long term): US$148 million

FINANCIAL STATEMENT:
http://bankrupt.com/misc/FranceTelecom

TRIGGER EVENT: In March 2001, France Telecom closed a record bond
issue valued at more than US$15 billion (EUR16.13 billion).  
Proceeds of the issuance are intended to refinance short-term
borrowings incurred as a result of an acquisition spree.

SHAREHOLDERS: French State       (55.50%)
              Public             (29.60%)
              VODAFONE GROUP     (4.30%)
              Cross-shareholding (4.20%)
              Employees          (3.20%)
              SITA               (1.40%)
              * Data as of December 31, 2001 (Yahoo Finance)

AUDITOR: Ernst & Young Audit
         5 Times Square
         New York, NY 10036    
         Phone: 212-773-3000
         Fax: 212-773-6350
         Home Page: http://www.eyi.com


TITUS INTERACTIVE: Discloses Important Drop of Net Revenues
-----------------------------------------------------------
For the first six months of its fiscal year 2002/2003 ending
December 31, 2002, Titus Interactive Group reported consolidated
net revenues of EUR 22.7 million.

Consolidated net revenues in EUR million
                         Year 2002/2003 Year 2001/2002
1st quarter                   10.2          16.0
2nd quarter                   12.5          59.3
6 month total                 22.7          75.3

Titus Interactive Group has reported an important drop in its
performance during the first half of the 2002/2003 fiscal year.
This slowdown is mainly a result of the deferred release, due to
a shortage of cash, of some European titles, which were initially
scheduled to be released for the Christmas season.

The net revenues have also been affected by the 10% decline of
the US Dollar, as US Dollar sales represent more than 77% of
total net revenues compared to 46% for the same period last year.
In addition, net revenues have been affected by the sale of our
Spanish subsidiary in June 2002, for which we reported net
revenues of EUR 5.3 million for the same period last year.

Taking into account a constant currency rate and on a similar
consolidation perimeter, the company would have reported a drop
of 66% in its net revenues for the first two quarters compared to
the same period last year.

The efforts of the Group in Japan, a key market of the video game
sector, have been rewarded for the second quarter of 2002/2003 as
Japan accounted for 8% of total net revenues compared with non-
significant sales in the past quarters.

The main titles of the first two quarters were Baldur's Gate:
Dark Alliance on the Playstation2 of Sony and on the Microsoft
Xbox, Icewind Dale 2 for PC and Top Gun Combat Zones for the
Nintendo Gamecube.

Sales of consoles titles were important, representing 54.3% of
net revenues compared to 41.2% for PC titles and 4.5% for OEMs.

The European releases initially scheduled for Christmas 2002,
will be launched either with new bank financing which will enable
us to produce and distribute these new titles or by virtue of
some distribution deals. These titles will not benefit from the
high sales level associated with the Christmas season.

In the aim of a financial recovery, Titus Interactive Group is
currently examining various financing options, including a
reduction of the company debt and all opportunities to sell
assets.

Titus Interactive was founded in 1985 by Herve and Eric Caen. The
company has quickly grown into one of the world's leading multi-
platform software developers and publishers. Titus has developed
a number of highly acclaimed games for both PC and console. With
offices in Paris, Cannes, Los Angeles, London, Hamburg, Oslo and
Tokyo, the company has established an extensive distribution
network.

Titus Interactive holds 72,5% of Interplay Entertainment and 100%
of Virgin Interactive Entertainment. For the year 2000/2001
(closing on June 30, 2001), the group has reported consolidated
net revenues of EUR 175 million. For the fiscal year 2001/2002
ending june 30, 2002, Titus Interactive Group reported group net
revenue of EUR 122.7 million.
Titus trades on the European exchange Euro NM under the following
codes: TITP.LN, Euroclear: 5012. More comprehensive information
on Titus Interactive and its products is available through its
worldwide web site at http://www.titusgames.com


TITUS INTERACTIVE: Collapse Into Insolvency Just a Matter of Time
-----------------------------------------------------------------
Observers believe that French video games manufacturer Titus
Interactive, which has put its U.S. subsidiary up for sale to pay
debt, is in the brink of insolvency.

The group, which has debt of EUR90 million, is short of cash to
pay its 360 employees.  It was not also able to obtain new credit
lines from banks ahead of an upcoming obligation to pay EUR1.4
million in interest on a bond loan, failure to meet of which
could force its filing for insolvency on July 1.

Titus placed its U.S. subsidiary, Interplay, on the block hoping
to raise at least US$60 million, but buyers are said to be taking
their time in the hope that the price would still go down.  Titus
Interactive holds 72.5% of Interplay Entertainment as well as
100% of Virgin Interactive Entertainment.

In the first half of its 2002-2003 financial year, Titus
Interactive's turnover fell by 70% to EUR22.7 million. The group
reported group net revenue of EUR 122.7 million for the fiscal
year 2001/2002 ending June 30, 2002.

CONTAC:  TITUS INTERACTIVE SA
         Parc de l'Esplanade
         12, rue Enrico Fermi
         77462 Lagny sur Marne Cedex.
         France
         Phone: (+33) 1 60 31 04 03
         Fax: (+33) 1 60 31 07 08
         Contact:
         Investor Relations
         E-mail: finance@titus.fr


VIVENDI UNIVERSAL: Paves Way for Break-up of Entertainment Asset
----------------------------------------------------------------
Vivendi Universal is moving to settle tax liabilities and
investment obligations with Barry Diller, chairman and CEO of USA
Interactive Inc.

The French company is motioning to settle US$1 billion of tax
liabilities arising from a break-up of VUE, a separate US$620
million liability on preferred stock issued to USA Interactive,
and an obligation to reinvest 50% of the proceeds from any sale
of former USA Networks assets into VUE, according to AFX.

Mr. Diller holds a 1.5% stake in VUE and his USA Interactive
company holds a further 5.4% in the entertainment asset, which
consists of studios, theme parks, and cable television.

Vivendi's search for an accord is understood to be part of the
plan of Vivendi chairman and chief executive Jean-Rene Fourtou to
break up its Vivendi Universal Entertainment.

According to the report, Fourtou hopes to put a new VUE strategy
in place before the scheduled board meeting next month to approve
a break-up plan for the division.

The meeting will decide on an outright sale or a partial break-up
of VUE, which US oil billionaire Marvin Davis had indicated
interest to acquire for US$20 billion entirely.

Talks with Mr. Diller is said to have reached in impasse in
recent weeks due to conflicts in contract terms and payments for
unwinding the VUE partnership, according to an insider.

Mr. Diller, who is not agreeable to an outright sale of the unit
to Davis, is said to be orchestrating an alternative break-up
plan that involves a joint bid for VUE's television and studio
operations from USA Interactive and Liberty Media.

The plan would then be completed by the sell-off of the theme
parks business to Blackstone, the US private equity group that
already owns 50% of Universal's Orlando theme park in Florida.


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


CARGOLIFTER AG: Sees Rescue From American Logistics Firm
--------------------------------------------------------
Insolvent blimp maker Cargolifter AG sees rescue from Universal
Express Inc., the New York logistics firm interested in providing
subsidies to the company prior to buying it.

Universal Express is already in talks with the German government
and officials from the state of Brandenburg, according to the
Daily Deal.

Company spokeswoman Silke Roesser confirmed the report saying,
"We are in final negotiations with Universal Express."

The American company, which specializes in offering services to
private postal carrier, plans to pay US$87.5 million in cash and
shares for the acquisition.

But what is questionable is on how Universal plans to fund the
purchase, when it registered losses of US$3.3 million on sales of
US$1.7 million itself, says an unnamed financial investor behind
Universal, according to German press reports.

Cargolifter ran short of cash last year as a result of a
disastrous venture to build the world's largest cargo-toting
airship.  It reportedly spent an estimated EUR400 million (US$320
million)--EUR100 million of which in loans--to build a prototype
of its flagship CL160 airship capable of toting 160 tons.

The company spent EUR78 million, including EUR40 million in
public funds, building the world's largest hangar on a former
Soviet airbase just south of Berlin.


DEUTSCHE TELEKOM: Unit to Refer Merger Dispute to Arbitration
-------------------------------------------------------------
Deutsche Telekom's Asian unit, DeTeAsia, plans to refer the
dispute over Celcom's proposed merger with TM Cellular Sdn Bhd to
arbitration.

Celcom, with which DeTeAsia holds an 8% stake, said DeTeAsia has
advised it of the move.  It admitted not having reached agreement
with the latter concerning obligations in the acquisition of
Telekom Malaysia Bhd's stake in TM Cellular.

The question is said to lie on whether Celcom is under an
obligation to obtain DeTeAsia's prior consent to acquire all of
Telekom Malaysia Bhd's stake in TM Cellular, in exchange for
newly-issued Celcom shares, as part of the merger plan, according
to AFX.

In May, TCR-EU reported plans of Deutsche Telekom to step back
from its exposure in the Southeast Asian telecom sector to focus
in core European and U.S. markets.

Aside from a 16% stake in Malaysia's Celcom, Deutsche Telekom has
25% ownership in Indonesia's second largest mobile phone group PT
Satelindo, and 22.1% holdings in Globe Telecom Inc. in the
Philippines.

The stakes will be sold within the medium term, Reuters said.


DRESDNER BANK: S&P Assigns Preliminary Ratings in CDO Deal
----------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
preliminary credit ratings to the $213 million floating-rate
notes to be issued by Lisa Synthetic CDO B.V., a special-purpose
entity (SPE.

Lisa Synthetic CDO is a managed synthetic arbitrage CDO actively
managed by Invesco Institutional (N.A.) Inc. The issuer will
provide the mezzanine protection to Dresdner Bank AG on the risk
of a portfolio of credit default swaps referencing investment-
grade corporates. The issuer will hedge its risk by issuing the
first, second, third, and fourth priority notes.

Dresdner Bank, the third-largest banking group in Germany,
originated the assets in the portfolio. The Dresdner Bank group
is engaged in most aspects of commercial and investment banking,
asset management, and other related financial services.

"This transaction uses a collateral account in which excess
spread will be diverted once losses on the portfolio are incurred
either through trading or credit events," said Billy
Radicopoulos, associate in Standard & Poor's European Structured
Finance Ratings group in London.

The preliminary ratings assigned to the notes reflect: -- The

credit support for the class A, B, and C notes in the form of
subordination provided by the notes junior to the respective
classes;

-- The credit support in the form of subordination provided by
the subordinated swaps;

-- The issuer's status as an SPE, which is expected to comply
with Standard & Poor's bankruptcy remote criteria;

-- The cash flow analysis carried out by Standard & Poor's, which
subjects the cash flows to various stresses to ensure that there
will be sufficient funds to meet interest and principal payments
to the noteholders;

-- The experience of Invesco Institutional as portfolio manager;
and -- The upfront collateral posted by the credit default swap
and credit support asset agreement counterparty to isolate the
issuer from the counterparty ratings.

RATINGS LIST Lisa Synthetic CDO B.V. $213 Million Floating-Rate
Notes

Class        Preliminary Rating       Preliminary Amount
                                      (Mil. $)
A            AAA                      138
B            AA                        20
C(NoteA)     A                         25
D            BBB                       30
Note A: Deferred interest notes.


INFINEON TECHNOLOGIES: Claims Uninformed of Court Ruling
--------------------------------------------------------
Infineon Technologies AG denied receiving an injunction
pertaining to a technology license deal that is the subject of
dispute between it and ProMOS Technologies Inc.

ProMOS reportedly claimed a week ago that Hsinchu District Court
had allowed it to continue using technology licensed by Infineon
to develop, produce and sell DRAM and other semiconductor
products, says AFX.

But having denied the receipt of the notice, a company spokesman
said Infineon's decision on January 27 to terminate licensing of
its technologies to Promos continues to be legitimate and
effective.

"Infineon reserves the right to assert the termination of its
licensing agreement and is determined to use all legal means to
protect its intellectual property," he said.

Infineon ceased buying ProMOS' products at the end of last year.  
But after ending its contract with Mosel, the parent of ProMOS,
Infineon claimed exclusive right to sell the venture's D-ram
chips.  ProMOS, however, rejected the argument.

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


=============
H U N G A R Y
=============


MFB: Posts HUF142.21 Billion Loss in 2002 Financial Report
----------------------------------------------------------
Hungarian Development Bank Rt (MFB) posted losses of HUF142.21
billion (US$621.8 million) in 2002 as a result of losses on loans
and investments related to transactions made at the request of
the government, as well as risk reserves for items outside the
balance sheet.

The unaudited unconsolidated financial statement was made in
keeping with Hungarian accounting rules, according to Budapest
Business Journal.

The losses also stemmed from a 20% decrease in net revenue from
interest, a roughly 50% drop in its revenue from commissions and
fees, and a tripling of its costs for commissions and fees, the
report says.

The bank's net assets went down from HUF138.52 billion to HUF92.3
billion last year, or a difference of HUF46.22 billion.

The bank needed capital injection of HUF96 billion from its
owner, the Hungarian state.  HUF80.7 billion was used to increase
its registered capital, while HUF15.3 billion was added to its
registered capital, bringing it to HUF87.57 billion at the end of
2002.


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


FIAT SPA: Snecma Courts Joint Bid for Unit With Finmeccanica
------------------------------------------------------------
Italian defense firm Finmeccanica had discussed the possibility
of buying Fiat SpA's profitable unit, Fiat Avio, with French
aerospace group Snecma.

"In the course of the board of directors meeting, the directors
advised the board of their intention of presenting an offer for
Fiat Avio, together with Snecma," a source told Reuters.

Snecma Chairman Jean-Paul Bechat reconfirmed he wanted to bid for
the unit, though he would need an Italian partner for approval as
the government is believed to be intent on keeping the company
under Italian control.

Admitting the necessity to team up with an Italian investor, Mr.
Bechat said in a news conference: "If we are interested in Fiat
Avio, it would be desirable to find an Italian partner."  

He valued the asset at between EUR1.5 billion to EUR1.8 billion
(US$1.92 billion).

Mr. Bechat also expressed his intention to take control in the
investment or at least split the stake with a partner.

Finmeccanica Chief Executive Roberto Testore said last week he
had talked "a very little" to Snecma about a joint bid, but there
had been no formal talks.

A statement by Finmeccanica finance director Alessandro Pansa
later said the company has not opened a file on a FiatAvio,
according to AFX.

Mr. Pansa said, "a detailed evaluation [on FiatAvio] has
certainly not been launched. There is not a file on this."

If Snecma is not able to persuade Finmeccannica, it could also
decide to team up with an Italian investment firm or Fiat itself,
the report said.

The article noted that U.S. private equity fund The Carlyle Group
is also willing to pay between EUR1.6 billion to EUR1.7 billion
for the unit that serves Italy's military jets and supplies the
navy with engine parts.  The group declined to comment.

Fiat SpA is selling its most profitable unit to raise cash to
rehabilitate its ailing car division, Fiat Auto.

CONTACT:  FIAT SPA  
          250 Via Nizza  
          10126 Turin, Italy  
          Phone: +39-011-686-1111  
          Fax: +39-011-686-3798  
          Toll Free: 800-804027  
          Home Page: http://www.fiatgroup.com/e-index.htm  
          Contact:  
          Giovanni Maggiora, Vice President - Investor Relations  
          Phone: +39-011-686-3290  
          Fax: +39-011-686-3796  
          E-mail: Investor.relations@geva.flatgroup.com

          FINMECCANICA SPA
          4, Piazzi Monte Grappa
          00195 Rome, Italy
          Phone: +39-06-324731
          Fax: +39-06-3208621
          Homepage: http://www.finmeccanica.it
          Contacts: Pier F. Guarguaglini, Chairman
                    Roberto Testore, Managing Director

          SNECMA
          2, bd du General Martial-Valin
          75015 Paris, France
          Phone: +(33) 1 40 60 80 80
          Fax: =(33) 1 40 60 81 02
          Home Page: http://www.snecma.com


TELECOM ITALIA: Hopes to Raise EUR600 MM From Stake Sale
--------------------------------------------------------
Telecom Italia managing director Carlo Buora said the company
hopes to raise EUR600 million from the sale of its 14.8% stake in
Telekom Austria.  The company had earlier sold a stake worth
EUR484 million.

The sell-off, though, might not happen before 2004, according to
Telecom Italia Group Marco Tronchetti Provera.

Telecom Italia further plans to divest its minority stake in
Serbian Telekom for EUR1 billion as part of a plan to sell minor
assets further to trim down debts.  Telecom Austria was able to
unload assets worth EUR5.2 billion already.

Chairman Marco Tronchetti Provera predicted the company's debt to
fall to EUR 18.3 billion last year from the EUR22 billion at the
end of 2001.

Telecom Italia shares fell 21% in 2002, reducing the value of the
company to EUR50.2 billion.

CONTACT:  TELECOM ITALIA
          Corso d'Italia 41
          00198 Rome, Italy
          Phone: +39-06-368-81
          Fax: +39-06-368-83388
          Home Page: http://www.telecomitalia.it
          Contact:
          Investor Relations:
          Phone: +39 06 36882119
                 +39 06 36883378
                 +39 06 36882634


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


LAURUS N.V.: Requests Investigation on Possible Mismanagement
-------------------------------------------------------------
Laurus N.V. announces that Mr. E.Th.A.C. Albada Jelgersma,
through his affiliated companies UB Holding and Lijmar Beheer,
has requested the Enterprise Chamber of the Court of Appeal in
Amsterdam:

-to order an additional furher investigation into the policy and
course of affairs of Laurus following the earlier investigation
of which the report was issued on December 20, 2002

-to declare that there has been mismanagement at Laurus

-to take measures which the Enterprise Chamber deems appropriate.

Furthermore the Dutch Association of Shareholders (VEB) has
requested the Enterprise Chamber to declare that there has been
mismanagement at Laurus.


UNITED PAN-EUROPE: Shareholders Approve Recapitalization
--------------------------------------------------------
United Pan-Europe Communications N.V. announces that at the
Extraordinary General Meeting of Shareholders (EGM), the
shareholders approved all proposals presented by UPC in relation
to the company's recapitalization. These proposals included:

A decrease in the nominal value of each issued and outstanding
share from EUR 1.00 to EUR 0.02, without repayment;

Several amendments to UPC's Articles of Association, in order to
facilitate the proposed financial restructuring and
recapitalization;

The resignations of the members of UPC's Board of Management with
effect from the later of the Effective Date of the restructuring
or the date of the delisting of the UPC Ordinary Shares A from
Euronext Amsterdam;

The resignations of the members of UPC's Supervisory Board with
effect from the later of the Effective Date of the restructuring
or the date of the delisting of the UPC Ordinary Shares A from
Euronext Amsterdam;

The appointment of New UPC Inc., a U.S. Holding company
(Delaware), as sole managing director of UPC with effect from the
later of the Effective Date of the restructuring or the date of
the delisting of the UPC Ordinary Shares A from Euronext
Amsterdam.

As stated before in a statement on the management structure of
UPC, on the date of delisting of UPC N.V. from Euronext
Amsterdam, the Supervisory Board and Board of Management of UPC
N.V. will cease to exist in their current form. UPC NV will
become a wholly owned subsidiary of New UPC. The members of UPC's
current Board of Management will continue to perform their
current roles as they have done in the past. Hence, there are no
proposals to change any of the current management team of UPC who
will join certain officers of UnitedGlobalCom, Inc. ("UGC"), New
UPC's parent company, in the New UPC management structure.

Furthermore, following a filing with the US Court the company
announced the result of the voting under its Chapter 11
proceeding. The following creditors voted in favour of UPC's
recapitalisation: Class 5 (Bondholders) $4,340,584,740.43,
representing 99.91% of the amount voted; Class 6 (UPC Preference
Shareholders) $7,114, representing 100% of the amount voted;
Class 8 (UPC Ordinary Shares A) $234,841,533, representing 99.97%
of the amount voted.

The Confirmation Hearing will take place Thursday in the US,
confirming the plan of reorganization, as well as the result of
the votes as stated above. The Dutch creditors meeting will take
place on Friday February 28, 2003. The company remains on track
to complete the recapitalization process by end March 2003.


===========
N O R W A Y
===========


DEN NORSKE: Faces Significant Potential Losses in Loan Portfolio
----------------------------------------------------------------
Investors are worried about potential losses from Den Norske
Bank's loan portfolio as a result of its significant exposure to
"troubled" companies, according to Aftenpost.

The report says analyst Sigmund Haaland of ABG Sundal Collier was
shocked over the figure, which he claimed to have reached NOK5
billion.  Another analyst said the portfolio is "in worse shape
than we thought."

The amount of Dnb's loan exposure to troubled companies left
rival bank Gjensidige NOR lagging with only NOK5 million.

Loans likely to become non-performing include those provided to
troubled firms such as Moxy Trucks, Kvaerner, Bane Tele, Pan
Fish, and Fjord Seafood.

Chief Executive Svein Asser claimed that DnB has adopted a
"conservative" loan policy, but Mr. Haaland is said to have
little faith on the assurance.

The lack of faith from investors is also seen in the way shares
in the bank dived to its lowest level in three years on Monday,
closing just NOK30.10.

Mr. Asser is expected to explain on exposure when the company
presents its annual results Wednesday.


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


ABB LTD.: Combustion Engineering Files ABB-Backed Prepack
---------------------------------------------------------  
ABB Ltd.'s U.S. subsidiary Combustion Engineering, Inc.,  
delivered a Chapter 11 petition to the U.S. Bankruptcy Court for  
the District of Delaware Monday to halt and resolve the tide of  
asbestos-related personal injury suits brought against the  
companies.  Over the past dozen years -- according to  
information obtained from http://www.LitigationDataSource.com   
-- the number of claims against Combustion Engineering, its  
affiliates, ABB and former joint venture partners, has  
skyrocketed:  
  
     Year   Asbestos Claims Asserted Against CE  
     ----   -----------------------------------  
     1990   18,891 .  
     1991   19,000 .  
     1992   20,000 +  
     1993   21,000 +  
     1994   22,000 ++  
     1995   23,842 +++  
     1996   27,577 ++++++  
     1997   28,976 +++++++  
     1998   28,264 ++++++  
     1999   33,961 ++++++++++  
     2000   39,138 +++++++++++++  
     2001   54,569 ++++++++++++++++++++++++  
     2002   79,204 ++++++++++++++++++++++++++++++++++++++++  
  
CE is named as a defendant in cases pending in multiple  
jurisdictions, with plaintiffs alleging injury as a result of  
exposure to asbestos in products manufactured or sold by CE or  
that was contained in materials used in CE's construction or  
maintenance projects.  
  
               Combustion Engineering's History  
  
Combustion Engineering was information in Delaware in 1912 as  
The Locomotive Superheater Co. and manufactured and sold  
superheaters for steam locomotives.  From the 1930s forward,  
CE's core business is designing, selling and erecting power-
generating facilities, including major steam generators.  CE  
also services large steam boilers and related electrical power  
generating equipment.  From the 1930s through the 1960s,  
asbestos insulation was used on many CE boilers.  
  
                   Development of the Plan  
  
Faced with escalating asbestos litigation costs and decreasing  
insurance coverage, an economic decline in its business, and  
ABB's financial woes, CE began exploring its options in late  
2002.  After considering several options, CE concluded that the  
best avenue for maximizing payments to both current and future  
claimants and enhancing the value of CE's estate was through a  
consensual restructuring.  CE recognized that it could not   
propose a plan to effectively reorganize without the cooperation  
of ABB, Asea Brown Boveri and representatives of current and  
future asbestos claimants.  Over a three-month period, CE, ABB  
and asbestos claimant representatives engaged in extensive  
negotiations to develop a strategy for permanently addressing  
CE-related asbestos claims.  The negotiations culminated in the  
Prepackaged Chapter 11 Plan.  
  
                Establishment of a 524(g) Trust  
  
The pre-packaged plan was negotiated with certain asbestos  
claimants' lawyers and approved by David T. Austern, Esq. (who  
serves as General Counsel for Claims Resolution Management  
Corporation in Fairfax, Virginia), the proposed representative  
for future claimants.  The Plan contemplates establishment of a  
trust under 11 U.S.C. Sec. 524(g), entry of a channeling order  
directing present and future asbestos claimants to that trust  
for payment, and entry of an injunction prohibiting present and  
future claimants from seeking compensation from any source other  
than the trust.  
  
                   Valuation & Plan Funding  
  
Under the Plan, all of CE's value -- at the end of September  
2002, CE's value was US$812,000,000 -- is delivered to the Sec.  
524(g) Trust for the benefit of present and future claimants.   
In addition:  
  
      (1) ABB is contributing:  
  
          (a) 30,298,913 shares of its stock, initially valued  
              at $50,000,000, but with a current market value  
              exceeding $81,000,000;  
  
          (b) a financial commitment to pay $250,000,000 to the  
              Trust in pre-agreed installments from 2004 to 2009  
              (guaranteed by certain ABB affiliates);  
  
          (c) up to $100,000,000 more from 2006 through 2011 if  
              certain performance benchmarks are achieved; and  
  
          (d) the release of all claims and interest of the ABB  
              group in insurance covering CE's asbestos personal  
              injury claims;  
  
      (2) Asea Brown Boveri is contributing:  
  
          (a) an indemnification of all of CE's environmental  
              liabilities, which has a value of around  
              $100,000,000;  
  
          (b) a release of its indemnification rights against CE  
              for asbestos claims asserted against Asea Brown  
              Boveri after June 30, 1999;  
  
          (c) a note evidencing Asea Brown Boveri's agreement to  
              contribute almost $38,000,000 on account of the  
              asbestos claims attributable to:  
  
                 -- Basic, Incorporated (CE acquired this  
                    acoustical plaster manufacturer in 1979) and  
  
                 -- ABB Lummus Global, Inc. (CE acquired  
                    this manufacturer of feed water heaters that  
                    used asbestos-containing gaskets in  
                    transactions stretching from 1930 to 1970);  
  
              and  
  
          (d) if Lummus is sold within 18 months of the Plan's  
              Effective Date, an additional $5,000,000; and  
  
      (3) Lummus and Basic will release and assign all of their  
          interests in insurance covering asbestos personal  
          injury claims, including certain CE-shared policies.  
  
Accordingly, the total value of these contributions to the Trust  
range from $1,250,000,000 to $1,386,000,000, excluding any value  
attributable to the insurance policies, and subject to wide  
swings as the value of CE increases or decreases over time.  
  
                   17,000 More Votes Needed  
  
The voting period for the plan commenced in January and is  
currently scheduled to end on February 19, 2003, and CE is  
looking for a 75% acceptance rate to comply with 11 U.S.C. Sec.  
524(g)(2)(B)(ii)(IV)(bb).  
  
As of Saturday, February 15, approximately 103,000 favorable  
votes had been received, together with less than 1,000 votes  
cast against the plan.  CE knows of at least 160,000 asbestos-
related personal claims outstanding today, so the company's  
looking for another 17,000 favorable votes to roll in the door.  
  
CE said it decided to file the Chapter 11 case prior to February  
19 in order to foreclose any possible last-minute effort by  
objecting claimants to file an involuntary bankruptcy  
and thereby interrupt the voting process.  
  
CE intends to seek immediate confirmation from the bankruptcy  
court that voting will continue to completion on February 19, as  
originally scheduled. Chief Financial Officer Peter Voser said  
in a conference call Monday CE said it is encouraged by the  
magnitude and favorable outcome of the vote to date.  CE will  
seek prompt confirmation of the proposed pre-packaged plan.  
  
                       Dissenting Votes  
  
The dissenting voters, reportedly, complain that the Plan  
doesn't deliver adequate compensation to the tort claimants.   
There's also dispute in the plaintiffs' camp about the propriety  
of a $20 million payment to Joseph F. Rice, Esq., at Ness  
Motley, P.A. (a big name asbestos-plaintiffs' firm) for   
his prepetition negotiating services with CE and ABB.  Elizabeth  
Wall Magner, Esq., a plaintiff's lawyer in New Orleans,  
Louisiana, told Bloomberg News her cancer victim clients may  
"attempt to attack the entire transfer of assets."  
  
Beat Hess, ABB's Chief Legal Counsel, said in Monday's  
conference call that the company isn't concerned about delays  
and appeals at this juncture, and will take the chapter 11  
confirmation process and any resulting appeals from a  
confirmation order entered by the Bankruptcy and District Courts  
one step at a time.  
  
                    Bankruptcy Professionals  
  
Jeffrey N. Rich, Esq., at Kirkpatrick & Lockhart LLP, and Laura  
Davis Jones, Esq., at Pachulski, Stang, Ziehl, Young, Jones &  
Weintraub, P.C., represent Combustion Engineering.  
  
The Blackstone Group, L.P., provides CE with financial advisory  
services.  
  
David M. Bernick, Esq., at Kirkland & Ellis, provides legal  
advice to ABB.  
  
The CE Settlement Trust, holding the largest unsecured claim  
against CE's estate, is represented by Hasbrouck Haynes, Jr.  
CPA, at Haynes Downard Andra & Jones LLP.  
  
                       ABB's Liquidity  
  
In mid-December, ABB signed a US$1.5 billion credit facility  
agreement with a group of 20 banks.  The facility is secured by  
a package of ABB assets, including the Oil, Gas and  
Petrochemicals division, which is earmarked for divestment in  
2003.  
  
The arranging banks and bookrunners are Barclays Capital,  
Citigroup, Credit Suisse First Boston and HypoVereinsbank. The  
agreement is a one-year revolving credit facility for US$ 1.5  
billion with a further one-year termout feature. The term-out  
gives ABB the option to retain up to US$750 million in  
borrowings under the facility, repayable in 2004.  The new   
credit facility replaced an existing facility, which expired on  
December 17, 2002.  
  
"The agreement provides sufficient liquidity for 2003 and 2004,  
and allows us to implement our program to lower our cost base,  
focus on our core businesses, and achieve the best value from  
our divestments," Mr. Voser explained when the loan agreement  
was signed.  
  
ABB has US$1.4 billion of bond debt maturing in 2003 and a US$3  
billion bank loan facility maturing on April 25, 2003.  
  
ABB -- http://www.abb.com-- is a leader in power and automation   
technologies that enable utility and industry customers to  
improve performance while lowering environmental impact.  The  
ABB Group of companies operates in more than 100 countries and  
employs about 146,000 people.  ABB has its own financial  
struggles to deal with, including a US$691 million loss in 2001,  
recurring quarterly losses in 2002, and a mountain of debt.   
Standard & Poor's has cut ABB's debt ratings to junk levels.   
ABB has said for months it will sell non-core assets in order to  
realign its focus and rationalize its balance sheet.  
  
ABB will announce financial results for 2002 next week.  


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


UBS: Sees No Clear Indication of Recovery in the Near Future
------------------------------------------------------------
Swiss bank UBS is uncertain on the prospect of recovery from last
year's fourth quarter loss of CHF101 million (GBP46 million), The
Guardian says.

The loss prompted the bank to resort to "decreased variable
compensation" in keeping personnel costs low, though the scheme
did not save some 250 jobs from being lost last year in its UBS
Warburg investment banking arm in the City.

The total UBS headcount fell by 924 to 69,061 last year, but it
insisted it was able to contain costs "without resorting to
drastic cuts."

As for bonuses in its Warburg arm, Peter Wuffli, president of
UBS, only mentioned the existence of "extremely differentiated
compensation round."

Mr. Wuffli said: "Fixed income bonuses went up for example while
in equities and investment banking they went down by 40 to 50%."  

UBS' fourth quarter loss was caused by a writedown of the
obsolete PaineWebber brand, and a provision for the industry-wide
settlement in the US over equities research.  The former cost the
bank CHF953 million; the latter CHF111 million.

The PaineWebber brand writedown also reduced profit by 29% to
CHF3.5 billion for the 2002 financial year.

UBS provides private banking business, asset management and
private equity.  It employs 6,000 people in the City.  Aside from
withdrawing the PaineWebber name - used largely in the US - the
bank also plans to stop using the Warburg name later this year.


=============
U K R A I N E
=============


CJSC PRIVATBANK: Fitch Places Individual Rating on Negative Watch
-----------------------------------------------------------------
Fitch Ratings changed the Support rating of Ukraine's CJSC
Privatbank to '4T' from '5T', and placed its Individual rating of
'D' on Negative Rating Watch.  The bank's Long-term 'CCC+' and
Short-term 'C' ratings were affirmed.  The Outlook for the Long-
term rating is Stable.

According to Fitch, the change in Privat's Support rating
reflects the growth in its franchise in 2002, but low
profitability and week capitalization prompted it to place the
Negative Rating Watch on the Individual Rating.

The rating agency recommends that the bank allow its capital to
grow, and show improvements in earnings.

Fitch also noted that the bank remains burdened by a high cost
base and increased potential operational risk following from the
rapid expansion of the number of Privat's outlets.

While recognizing the growth in the bank's net income in 2001, it
warned that Privat will likely encounter challenges in enhancing
its performance, particularly in the short-term, due to narrowing
margins and a very high cost base.

It added: "Furthermore, any improvement may require an increase
in the bank's risk appetite, thereby putting further strain on
its capital."

Fitch indicated to resolve the Rating Watch after the company
reports its audited financial statements in April.


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


BAE SYSTEMS: Announces Agreement to Restructure Contracts
----------------------------------------------------------
BAE SYSTEMS and the UK Ministry of Defence (MoD) have agreed
changes to the contract structure for both the Nimrod MRA4
maritime patrol aircraft program and the Astute attack submarine
program.

In December 2002, the company announced that additional issues
had arisen in relation to these programs and that it had become
apparent that there were substantial schedule and cost
implications.

Under the terms of today's agreement, the current contracts for
design, development, production and support on each of the two
programs will be revised. These revisions will separate the
Design and Development phase of each program from the Production
phase. Design and Development will be completed under new Target
Cost Incentive Fee (TCIF) arrangements. Both programs will be
placed on a firm footing for the delivery of the Astute and
Nimrod capabilities into service.

BAE SYSTEMS and the MoD have established new Target Costs and Fee
levels for both programs, and have high levels of confidence of
delivering the programs within these new target levels. Up to the
Target Cost level, cost saving will be shared by the customer and
company as an additional Incentive Fee for the company. Any cost
overruns above the Target Cost will be shared by the customer and
the company, up to the maximum level established for the company
by the agreement. These new arrangements will place a significant
economic incentive on the company to perform. The company has
reviewed its project management of these programs, consistent
with today's best practice, and is taking actions based on
lessons learned.

Pricing of the Production phase of each program will be concluded
following achievement of sufficient risk mitigation from the
Design and Development phase to enable production costs to be
established with confidence.

ASTUTE

The difficulties in the Astute program stemmed principally from
moving the design of the submarine to a fully electronic CAD
(Computer Aided Design) design basis - a process that neither
party understood would be as difficult as it has turned out to
be.

Production work on the Astute Program will only be resumed after
design maturity has been established. Design and Development,
which includes the build of the First of Class, HMS Astute, will
be completed under new TCIF arrangements. Pricing for the
production of HMS Ambush and HMS Artful will be established once
adequate design maturity has been achieved and progress has been
made on the First of Class. In order to maintain progress on the
program, General Dynamics Electric Boat Division (GD) will
provide design assistance to reinforce the project team. This
will enable the Astute project team to take advantage of lessons
GD learned in computer-aided design on major US submarine
programs.

NIMROD

The difficulties in the Nimrod program stemmed principally from
issues associated with delays in design causing an increasing
concurrency between design, development, and production in the
program.

Production work on the last 15 of the 18 Nimrods in the MRA4
program will stop. This work will not be resumed until
significant risk reduction has been accomplished, using the first
three aircraft as development aircraft. Design and Development,
including the completion of the three development aircraft
currently in build, will be completed under new TCIF
arrangements. Prices for the production of the last 15 aircraft
will be established after Design and Development stability has
been achieved.

FINANCIAL

Today's agreement enables the company to recognize the cost to
complete these programs under the new contract terms. As a
consequence, exceptional costs of GBP750 million (GBP572 million
after tax) will be charged to the 2002 accounts comprising GBP500
million for Nimrod and GBP250 million for Astute. These charges
cover in full the company's residual exposure to higher
development costs up to maximum level established for the company
by this agreement.

The cash consequences of these charges, after tax, are expected
to comprise GBP225 million in 2003 and GBP100 million in 2004
with the balance of GBP250 million expended in 2005 and beyond.

These new terms mean that the company can complete these programs
with financial certainty.

2002 TRADING

While much focus has understandably been on the progress of
negotiations on future terms and conditions of trade with the MoD
on these and other programs, good progress has been made across
much of the balance of BAE SYSTEMS' business operations.

On February 20 the company will announce its Preliminary Results
for the year ended December 31, 2002. The results will reflect
the generally stronger performance, envisaged at the time of the
company's 2002 Interim Results, through the second half of the
year before taking account of the exceptional charges for the
Nimrod and Astute programs described above.

In 2002, the company's North America business group and Customer
Solutions and Support continued their good performance. The
anticipated performance in the second half of the year was
delivered in the Avionics business group. As indicated
previously, the performance in the International Partnerships
business group was impacted by losses last year in the Astrium
space systems activity that the company agreed to sell to EADS in
January this year. Airbus contributed a good performance given
the difficult market conditions.

Mike Turner, Chief Executive, said: 'We very much welcome this
agreement and appreciate the constructive approach that has been
demonstrated in recognizing a need to obtain a better balance
between risk and reward on these two complex and technically
demanding programs. In Nimrod and Astute BAE SYSTEMS will deliver
two systems of unrivalled capability to the UK's armed forces.

'Addressing these issues has been important but it should be
recognized that the balance and majority of the company's
business has continued to perform well.

With uncertainty removed, we can now look forward to the Nimrod
and Astute programs contributing to future returns to our
shareholders, and to building on our positive relationship with
the MoD.'


Issued by:

BAE SYSTEMS plc


BLAZEPOINT PLC: To Decide on Placing Company in Liquidation
-----------------------------------------------------------
Further to the announcement of February 12, 2003, Blazepoint
Group plc has been unable to conclude negotiations with regard to
a potential disposal of the Company's subsidiaries.

Following a review of the Company's financial position, Messrs
Hacker Young have been instructed to convene meetings of
shareholders and creditors under section 98 of the Insolvency Act
1986 with a view to placing the Company in liquidation.

Accordingly, the Directors have requested the suspension of the
Company's ordinary shares from trading on the Alternative
Investment Market with immediate effect.

The trading subsidiaries of the Company, including Blazepoint
Limited, Blazeprint Limited and Printer systems Limited, will
continue to trade normally whilst a purchaser is sought for them.

                  *****

At the request of the company trading on AIM for the under-
mentioned securities has been temporarily suspended from
18/02/2003 5:45pm pending clarification of the company's
financial position.

Ordinary Shares of 1p each       (3-065-608)(GB0030656085)
                             fully paid

Blazepoint's activities are the sale and maintenance of computer
printing devices for military and commercial use and the bespoke
development and manufacture of computer peripherals to meet non-
standard requirements.

CONTACT:  BLAZEPOINT PLC
          Unit 2, Tower Estate
          Chalgrove
          Oxfordshire
          OX44 7XZ
          United Kingdom
          Phone: (01865) 892030
          Fax: (01865) 892031
          E-mail: pcooper@blazepoint.co.uk


BRITANNIA ZINC: Parent Decides to Close and Stop Production
-----------------------------------------------------------
Loss-making Britannia Zinc is scheduled to close Thursday and
cease production on or about March 1, completing its owner's plan
to exit two European zinc smelting operations.  MIM Holdings sold
its plant at Duisburg in Germany in December.

Australian parent MIM Holdings first advised of the closure of
the Avonmouth-based company in December due to continued losses
of GBP2 million a month.

MIM also tried to sell the smelter to US metal trading company
Marco International without success.  It had been peddling the
facility, and the one in Germany, for more than a year.

After a 90-day consultation period with trade unions and employee
representatives, 80% of the workforce requested a halt in the
talks on failure to find a viable alternative.  Around 400 jobs
will be lost in the closure.

The Britannia Zinc works, the only one of its kind in the UK, has
been at the site, near the Severn Estuary, for 50 years.  The
plant produced on average 90,000 tons of zinc and 35,000 tons of
lead a year.


BRITISH ENERGY: S&P Adjusts Grades Following Standstill Agreement
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered British Energy's
corporate credit ratings to 'SD' from 'CC', and its senior
unsecured debt ratings to 'D' from 'C' following creditors
acceptance of what the rating agency says a "coercive" term of
restructuring.

According to the rating agency, the agreement of certain of
British Energy's creditors to a standstill agreement allows the
continued payment of interest on bonds but not principal, and the
existing 2003 bond is not expected to be repaid at its maturity
on March 25, 2003.

It is coercive in the sense that bondholders could either accept
new bonds as part of the restructuring with a considerably lower
face value, or try to claim principal back through
administration.

Standard & Poor's Infrastructure Finance credit analyst Paul Lund
said "...significant creditors, including bondholders, have
accepted a distressed exchange offer for their outstanding
liabilities."

Yet, the corporate credit rating on the company reflects the
expectation that British Energy will continue to honor certain
other of its obligations, including the repayment of the GBP650
million (US$1.04 billion) credit support facility to the U.K.
government, as part of the restructuring.

The liability to the U.K. government will further be satisfied by
proceeds coming from the sale of its Canadian operations, Bruce
Power LLC and Huron Wind, and the sale of its 50% stake in
Amergen.  The sale of the Canadian operations is expected to
raise GBP250 million.

The ratings were removed from CreditWatch, where they had been
placed on Sept. 6, 2002.


CORUS GROUP: Clears Media Speculation on Sale of Aluminum Assets
----------------------------------------------------------------
Following recent media speculation, Corus wishes to make clear
that management remains fully committed to the sale of the
Group's aluminum assets, as announced on October 23, 2002.

As part of this ongoing process it can confirm that it has
appointed McKinsey & Company to look at various aspects of the
Company's strategy. McKinsey's remit is to conduct a review of
the Group's strategic decision to adopt a strategy focusing
around carbon steel and, specifically to consider the strategic
decision to divest the Group's aluminum business. This review is
intended to aid the internal consultation and approval process.

                       *****

The appointment of McKinsey came after the Dutch half of the
steel business insisted that the U.K. division stem its losses
before it provides additional help into its counterpart.

The conflict between the two has led to the supervisory board of
the Dutch business considering blocking the crucial sale of the
aluminium operation.  Supervisory board approval is crucial to
the ease of the GBP500 million transaction.

The first half of last year saw Corus' core carbon steel business
losing GBP110 million in the U.K., and gaining GBP29 million in
Netherlands.

Corus is also currently renegotiating a GBP1.2 billion loan that
accounts for more than half of its borrowings.


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

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

Troubled Company Reporter -- Europe is a daily newsletter co-
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USA, and Beard Group, Inc., Washington, DC USA. Kimberly
MacAdam, Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee
Gonzales, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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