/raid1/www/Hosts/bankrupt/TCREUR_Public/030311.mbx             T R O U B L E D   C O M P A N Y   R E P O R T E R

                             E U R O P E

                 Tuesday, March 11, 2003, Vol. 4, No. 49


                              Headlines

* C Z E C H   R E P U B L I C *

UNION BANKA: Banned From Trading, Can Settle Securities Deal
UNION BANKA: Presents New Evidence, Court Delays Proceedings

* F R A N C E *

VIVENDI UNIVERSAL: Uses Issue of Jurisdiction to Stop Lawsuit

* G E R M A N Y *

DEUTSCHE TELEKOM: Dr. Leysen Resigns From Supervisory Board
DEUTSCHE TELEKOM: Plans to Reorganize Supervisory Board
FRESENIUS MEDICAL: Announces Change in Board of Management
ROSCH AG: Preliminary Creditors Committee Approves Sale of Assets

* Fitch Warns on Financial Strength Of German Life Insurers

* I R E L A N D *

ONE VIZION: Receivers Offer Packaging Businesses for Sale

* I T A L Y *

FIAT SPA: GM Stake in Auto Unit Hinges on Capitalization Plan
FIAT SPA: Capitalia Reveals Agreement Regarding Toro

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

MILLICOM INTERNATIONAL: Announces Extension of Exchange Offer

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

KONINKLIJKE AHOLD: Aware of Potential Problems in U.S. - Source
KONINKLIJKE AHOLD: Berman DeValerio Files Shareholder Lawsuit
ROYAL KPN: Signs Agreement to Unload Business Radio to Zenitel
ROYAL PHILIPS: Issues Notice on Meeting of Shareholders

* P O L A N D *

BANK PEKAO: Issues Series F Bonds to Finance Operating Activity
ELEKTRIM SA: Announces Increased Holdings of Vivendi Universal
NETIA HOLDINGS: Selects PricewaterHouseCoopers as Auditor
NETIA HOLDINGS: Announces Changes in Management Board

* R U S S I A *

MENATEP ST. PETERSBURG: Long-Term Rating Raised to 'CCC+'

* S P A I N *

EM.TV & MERCHANDISING: Cancels Deal to Sell Stake in Jim Henson

* S W E D E N *

LM ERICSSON: Proposes Changes in Management, No Dividend for 2002
SCANDINAVIAN AIRLINE: Unveils Measures to Enhance Efficiency

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

CREDIT SUISSE: NASD Charges Frank Quattrone With Accusations
CREDIT SUISSE Attorney for Quattrone RespondS to NASD Charges

* U N I T E D   K I N G D O M *

AES DRAX: In Debt Restructuring Discussion With Creditors
AMP GROUP: Moody's Assigns Negative Outlook to Ratings
ARC INTERNATIONAL: Decides to Return Capital to Shareholders
BOOTS PLC: Could Have Opted Against Closing Airdrie
BRITISH ENERGY: Government Issues Statement on Extension of Loan
BRITISH ENERGY: DTI Issues Statement on Loan Extension
GEORGE WHITEHOUSE: Administrators Offer to Sell Business
INVENSYS PLC: To Step Down From FTSE 100 Index This Week
ROYAL SUNALLIANCE: Fitch Says Results Raise More Questions
ROYAL & SUNALLINCE: Statutory Surplus Falls Off Requirement
SFI GROUP: Announces Delay of Interim Results Publication
SOLENT ENERGY: Notice Regarding Meeting of Creditors
THOMAS COOK: Posts After-Tax Net Loss of EUR120 Million
TXU EUROPE: Fitch Rates TXU Energy's $1.25B Senior Notes 'BBB'
WESTON MEDICAL: Administrators Puts Business Up for Sale


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


UNION BANKA: Banned From Trading, Can Settle Securities Deal
------------------------------------------------------------
An agreement between Prague Stock Exchange (BCPP) and struggling
Ostrava-based Union Bank provides that UB will no trade on the
bourse. It can only settle securities deals signed earlier and
can use the bourse's services to complete its orders by virtue of
its continued membership in BCPP.

According to BCCP deputy secretary general Vladimir Ezr, "Union
Banka is not trading on the bourse, but it can settle deals. This
measure is designed to protect the market, we will wait for
further developments."

However, the bank has lost much of its credibility on the capital
market.  A broker who wished to stay unnamed confirmed this by
saying: "It is difficult to describe a bank which is facing the
threat of a revocation of its banking license and a collapse as a
risk-free partner."

UB used to rank among more active stockbrokers at BCPP; this year
the volume of UB securities trading reached CZK 24.5 billion.

It previously closed branches and is facing the threat of a
revocation of its banking license, as well as its license of a
securities dealer.

The regulatory Securities Commission KCP has launched
administrative proceedings on a revocation of UB's dealing
license and issued an injunction ordering the bank to suspend
investment services and handling client's assets.

The KCP was anxious about the bank's financial situation and
suspected it of suspending activities without making sure its
clients' obligations would be met.

The bank has raised a protest against the step, but the KCP has
not come up with a legitimate decision yet.


UNION BANKA: Presents New Evidence, Court Delays Proceedings
------------------------------------------------------------
The arbitration court of the Economic and Agricultural Chambers
put off proceedings for the dispute between Ostrava-based
troubled Union Bank and Czech National Bank until March 21.

A reliable source told Czech Happenings that the postponement of
the ruling during Thursday's proceedings suggests that the court
can deal with the matter.

Earlier, Union Banka claimed the Czech National Bank owes it
CZK1.7 billion as a result of the bank's acquisition of the bank
Skala, which was completed in mid-1990.

Reports say CNB contributed CZK1.8 billion for the acquisition
but UB and its new owner, Italian Invesmart, have been claiming
since September 2002 that the amount is insufficient to defray
the costs.

CNB rejects the claim, on the assertion that the parties had
closed the transaction way back 1999.

UB is now threatened with the revoking of its banking licence.
Its financial troubles, caused by significant numbers of non-
performing loans, have been apparent since the mid-1990s.

The arbitration can further aggravate the bank's situation
because the money has already been entered in UB's books.
According to Pavel Zubek, an employee from the press department
of the central bank, the "arbitration was postponed because UB
provided further evidence and facts with which neither the CNB
nor the arbitrators could get acquainted as yet."  Zubek did not
elaborate on this matter.

UB has until March 10 to complete documents on its stance on the
administrative proceedings and to submit a rescue, while the
Finance Ministry was given until March 12 by CNB.

Union Banka's trouble stemmed from an unmanageable expansion when
it took over struggling financial houses in mid-1990.  Three
creditors filed for UB's bankruptcy with the Regional Court in
Ostrava in recent days.

However, the board of directors at UB claims that the bank has
not met a single point for the declaration of bankruptcy because
its liquidity is sufficient for a normal operation of the bank.


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


VIVENDI UNIVERSAL: Uses Issue of Jurisdiction to Stop Lawsuit
-------------------------------------------------------------
Vivendi Universal is trying to avert a class action lawsuit
against the company and its officials by persuading Manhattan
judge Harold Baer to rule that his southern district court does
not have jurisdiction over the case.

The company asserted its American depositary shares represented
only 8.9% of securities traded, the Financial Times reported
citing court filings.

To further prove that Vivendi is French, the company said it
"rarely held board meetings outside Paris and always maintained
approximately a three-to-one ratio of European to non-European
directors on its board."

But class action lawyers, who filed the suit claiming that
Vivendi Universal artificially inflated its share price by
misrepresenting the company's financial position, attacked the
company on grounds that "the creation and dissemination of
various financial statements, was initiated, organized and
approved out of Paris," noting that many company statements also
has New York dateline.

Vivendi and former chairman Jean-Marie Messier, as well as former
finance director Guillaume Hannezo, are being sued for allegedly
disguising the risk of a liquidity crisis in the company,
overstating earnings by failing to write down impaired goodwill
and improperly consolidated minority investments.

The company denied the accusations of fraud saying, "vague
expressions of optimism constitute immaterial corporate 'puffery'
which cannot mislead the reasonable investor."

Vivendi is also facing criminal probes from French and U.S.
prosecutors, as well as formal inquiries from the country's
respective stock market watchdogs.


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


DEUTSCHE TELEKOM: Dr. Leysen Resigns From Supervisory Board
-----------------------------------------------------------
Dr. Andre Leysen has resigned his office on the Deutsche Telekom
AG Supervisory Board in consideration of his age. He had
previously wanted to resign two years ago for the same reason.
However, at that time he agreed at the express wishes of the
federal government to carry on for a period to be determined by
him.

"I am of the firm conviction that Deutsche Telekom has an
excellent management team under the new Chairman of the Board of
Management, Kai-Uwe Ricke, that is taking the right path to lead
the company to a successful future" said Dr. Leysen.

Dr. Leysen was a member of the Supervisory Board from the start
and with a high level of expertise has accompanied the
corporation's transformation since 1 January 1995 from a public
authority to an internationally operating company quoted on the
stock exchange. Despite large demands on his time, for example as
a member of the General Committee, he has carried out his duties
without pay. Deutsche Telekom AG owes an huge debt of gratitude
to Dr. Leysen for his extraordinary service. With him, a
prominent personality in our company leaves the Supervisory
Board, whose lasting and judicious work was formative.


DEUTSCHE TELEKOM: Plans to Reorganize Supervisory Board
-------------------------------------------------------
Following the successful reorganization of the Board of
Management of Deutsche Telekom AG in 2002 under the leadership of
Dr. Hans-Dietrich Winkhaus, a comprehensive reorganization of the
Supervisory Board is now planned. After Dr. Andre Leysen stepped
down on February 28, 2003 on age grounds, Dr. Helmut Sihler and
Gert Becker will also be resigning, for the same reason, after
the shareholders' meeting in May 2003.

Deutsche Telekom applied to the Local Court last Friday for the
appointment of a new Member of the Supervisory Board to replace
Dr. Leysen. Deutsche Telekom proposes that Dr. Klaus Zumwinkel,
Chairman of the Board of Management of Deutsche Post World Net,
take up the vacant position.

Subject to a corresponding recommendation by the Supervisory
Board, Dr. Hans-Jurgen Schinzler, Chairman of the Board of
Management of the Munchner Rckversicherungs-Gesellschaft AG, and
Dr.-Ing. Wendelin Wiedeking, Chairman of the Board of Management
of Dr. Ing. h.c. F. Porsche AG, are to be proposed to the
shareholders' meeting as candidates for the additional vacancies.

"Having taken these steps to restructure the Supervisory Board, I
shall resign as Chairman of the Deutsche Telekom Supervisory
Board at its next meeting and step down from the Supervisory
Board altogether after the shareholders' meeting", stated Dr.
Winkhaus. Subject to appointment by the Local Court, Dr.
Zumwinkel will be elected the new Chairman of the Supervisory
Board.

"This now lays the foundation for a successful new start in the
Supervisory Board as well as in the Board of Management. I
believe that with its new Chairman of the Board of Management,
Kai-Uwe Ricke, and his strong management team, Deutsche Telekom
can look forward to a successful future", explained Dr. Winkhaus.


FRESENIUS MEDICAL: Announces Change in Board of Management
----------------------------------------------------------
Fresenius Medical Care AG, the world's largest provider of
Dialysis Products and Services, announces today that Dr. Ulf M.
Schneider (37) is resigning his position as the Chief Financial
Officer (CFO) of Fresenius Medical Care AG and will become
Chairman of the Management Board of Fresenius AG, where he will
succeed Dr. Gerd Krick (64).

On March 7, 2003, the Supervisory Board of Fresenius AG
unanimously appointed Dr. Ulf M. Schneider to be the Chairman of
the Management Board of Fresenius AG. Dr. Schneider will assume
his new position upon the conclusion of the Annual General
Meeting of Fresenius AG on May 28,
2003.

Dr. Schneider's successor as CFO of Fresenius Medical Care AG has
not been determined yet. Dr. Ben J. Lipps, Chief Executive
Officer of Fresenius Medical Care AG, will temporarily assume
responsibility for financial matters in the event that a new CFO
has not been appointed until May 28, 2003.

Fresenius AG (WKN 578560, 578563) holds a majority interest in
Fresenius Medical Care's ordinary capital.

Fresenius Medical Care AG,
Board of Management,
Bad Homburg v.d.H., March 7, 2003.

                   *****

In February, Standard & Poor's assigned its 'BB+' long-term
rating to vertically integrated dialysis provider Fresenius
Medical Care AG's US$1.5 billion senior secured syndicated bank
facilities.

The group plans to use the proceeds for refinancing existing
indebtedness and general corporate purposes.


ROSCH AG: Preliminary Creditors Committee Approves Sale of Assets
-----------------------------------------------------------------
Rosch AG Medizintechnik announces that the preliminary
creditors committee has agreed in its meeting on March 07, 2003
to the contract of the sale of the assets of Rosch AG
Medizintechnik to the Riemser Arzneimittel AG with effectiveness
of March 10, 2003. Contractual details are not published.

The Riemser Arzneimittel AG has the intention to further develop
the business activities of Rosch AG Medizintechnik.

                     *****

In January, Rosch AG, former subsidiary of Equidyne Corp., filed
for bankruptcy at the court of Charlottenburg in Berlin on
grounds of illiquidity.

CONTACT:  ROSCH AG MEDIZINTECHNIK
          Buckower Damm 114, 12349 Berlin
          Phone: +49.30-667915-79
          Fax: +49.30-667915-66
          E-mail: vorstand@roesch-ag.de

* Fitch Warns on Financial Strength Of German Life Insurers
-----------------------------------------------------------
Fitch Ratings, the international ratings agency, has published an
update of its November 2002 report on the German life insurance
sector, stressing its continuing capital weakness. At the same
time Fitch has launched a German-language newsletter for
independent financial advisers (IFAs) and insurance brokers,
commenting that the financial strength and capital adequacy of
German life insurers are set to decline further in 2003.

Depressed capital markets are negatively affecting the German
life insurers' previously high levels of capital adequacy, a key
element in Fitch's quantification of Insurer Financial Strength
(IFS) ratings. In November 2002, the agency published a report
giving a detailed analysis of the capital adequacy of 75 of
Germany's life insurance companies based on publicly available
data, and revealing the extent of the dramatic decline in German
life insurers' capital strength. Strong demand for this report
and data has led to the publication of an update, which now
covers 105 German life insurers. Fitch has also launched a
newsletter (Makler-news) to assist market participants. Published
every six to eight weeks, the newsletter aims to meet the needs
of investors, brokers and IFAs in Germany. A total of 2,500 IFAs
have already signed up to receive the newsletter.

The results of Fitch's earlier survey, based on 2001 data had
been confirmed in 2002, since a number of life insurers which
showed weak capitalisation at year end 2001 had to strengthen
their capital bases last year. In order to restore capital
adequacy levels and to meet regulatory solvency requirements
Fitch's current view is that the majority of the German life
insurance companies have a strong need for external funding.

After a 44% fall in the DAX in 2002, the index has fallen a
further 15% so far this year. These falls exceed the stress
testing applied in Fitch's capital adequacy model at year end
2001. As a result, Fitch believes the German life insurance
industry will accrue a substantial amount of "hidden losses" on
its 2002 balance sheets. These hidden losses and equity
writedowns in 2002, which Fitch estimates at EUR45 billion-
EUR50bn, arise from differences between book and market values
for each asset class. Fitch believes that the annual results for
2002, to be reported from March to June 2003, will show a range
of life insurance companies for which higher hidden losses
accrued will exceed shareholders equity in the balance sheet.
These developments contribute towards Fitch's maintenance of a
negative ratings outlook for the German life insurance sector.

The German Insurance Association (GDV) is currently seeking
relaxation of the prudential rules for insurance regulation (VAG)
to temporarily allow life insurance companies to have asset-
liability imbalances in the life fund. The annual requirement to
write down the book value of investments to market value
(paragraph 341b of the German Commercial Code (HGB)) was eased in
December 2001 when the regulator allowed companies to treat
volatile stocks as fixed rather than current assets, if they
could argue that the shares would be kept and that the price
fluctuations were only temporary.

However, according to paragraph 341b HGB and to recent comments
from the German Auditors Institute (IDW) insurers have to write
down the assets to market values if the share price is
significantly below the book value for six months. This would
force the insurance companies to convert the hidden losses into
published losses in the 2003 statements.

In addition, the industry as a whole is finding it increasingly
difficult to continue to finance high guaranteed with-profits
bonus allocations.

Investment yields achieved in the years 2001 and 2002 were not
enough to cover the with-profits bonuses allocated to
policyholders. Fitch considers that the potential continuation of
this spread deficiency is likely to cause serious problems
because of the already weak capital base of the industry.

The newsletter for IFAs is available after subscription on
http://www.fitch-makler.deThe new report, entitled "Deutsche
Lebensversicherer: Versicherer muessen Millarden abschreiben" is
available in German on the agency's website,
http://www.fitchratings.com



=============
I R E L A N D
=============


ONE VIZION: Receivers Offer Packaging Businesses for Sale
---------------------------------------------------------
One Vizion; Initial Packaging Limited; Holland & Pickering
Limited; Mopack Systems Limited (All in administrative
Receivership)

The Joint Administrative Receivers, Michael Horrocks, Russel
Cash, Robert Hunt and Garth Calow, offer for sale the business
and assets of this extruder, printer, laminater and finisher of
plastic packaging based in Widnes, Heywood and Strabane, Northern
Ireland.

Principal features of the business include: blue chip customer
portfolio; innovative product designs (including tamper evident
packaging); purpose built freehold property in northern Ireland;
skilled workforce of 250; and wide range of industry
certifications.

CONTACT:  SHAUN MCGRAIL or ELLIOT SPROSTON
          PricewaterhouseCoopers
          101 Barbirolli Square
          Manchester M2 3PW
          Phone: 0151 420 4333
          Fax: 0151 423 4451
          E-mail: elliot.sproston@uk.pwcglobal.com


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


FIAT SPA: GM Stake in Auto Unit Hinges on Capitalization Plan
---------------------------------------------=---------------
General Motor's Corp.'s refusal to participate in the new
financing of Fiat Auto, Fiat SpA's auto business, will leave it
with an ownership smaller than the 20% it now holds.

GM President Richard Wagoner who met with Fiat's new chairman
Umberto Agnelli in Geneva told Reuters he understood the
implication of the company's failure to pitch in money for Fiat
Auto.  GM needs to pay Fiat EUR1.1 billion to maintain its
ownership of the auto division.

Fiat is planning to inject EUR5 billion into the unit, which
posted EUR1.4 billion of operating losses last year.  The board
had already approved EUR3 billion of the financing.  If the plan
pushes through, Fiat's capital injection to the unit would now
total EUR5.5 billion.

GM, which could purchase the auto unit under a put option
exercisable between 2004 and 2009, has not yet confirmed whether
it will participate in the capital increase.

Mr. Agnelli said there were no plans to exercise the put "in the
short term," adding that he hoped the put would never be used.


FIAT SPA: Capitalia Reveals Agreement Regarding Toro
----------------------------------------------------
-The Agreement sets out the reciprocal relationships relating to
the future divestment by Fiat of its controlling interest in Toro
Assicurazioni

Capitalia S.p.A., Fiat S.p.A. and Toro Assicurazioni S.p.A.
announce the signing of an agreement that sets out the reciprocal
relationships relating to the future divestment by Fiat of its
controlling participation in Toro Assicurazioni, with the aim of
guaranteeing maximum transparency to the market and all the
parties involved.

Toro Assicurazioni is one of the principal shareholders of
Capitalia, with circa 6.6% of the latter's share capital. In
addition, Capitalia Group (through FinecoGroup S.p.A.) and Toro
Assicurazioni each hold 47.5% of RomaVita S.p.A., an insurance
company operating via the branch networks of Capitalia in the
bancassurance sector.

To protect the reciprocal interests, the Parties have therefore
agreed that:

-Capitalia is guaranteed the right to select a third party to
purchase the participation currently held by Toro Assicurazioni
in the same Capitalia. In case such right is exercised, the
purchaser of the controlling interest in Toro Assicurazioni will
be obligated to sell the above-mentioned participation to the
buyer indicated by Capitalia, at a price correlated to the
official market prices of Capitalia shares plus a premium of 25%;

-in the case that Capitalia exercises such right, Toro
Assicurazioni will have the right to sell to companies of the
Capitalia Group its own participation in RomaVita S.p.A., at a
price of Euro 370 million. Should Toro, in fact, sell its
participation in RomaVita S.p.A., the parties will have the right
to withdraw from all commercial agreements currently in force
between RomaVita and Toro;

-the right of Capitalia to find a third party to purchase the
shares and the consequential right of Toro to ceed its
participation in RomaVita will be valid also in the case where
the control of Toro Assicurazioni is newly transferred to another
acquirer in the three years following the present divestment by
Fiat.

The Agreement, which has as its object the participation of Toro
Assicurazioni in Capitalia, will be subject to the disclosure
rules as set out in Art. 122 of the Decree Law of February 24,
1998, number 58.


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


MILLICOM INTERNATIONAL: Announces Extension of Exchange Offer
-------------------------------------------------------------
Millicom International Cellular S.A., the global
telecommunications investor, on Friday announces that it is
extending the private exchange offer and consent solicitation to
holders of 13-1/2% Senior Subordinated Discount Notes due 2006,
or the Old Notes, who are not U.S. persons, or who are U.S.
persons that are either "qualified institutional buyers" or
"institutional accredited investors" (as each of those terms are
defined under the Securities Act of 1933, as amended) and who can
make the representations to exchange, upon the terms and subject
to the conditions set forth in the private offering documents,
until 5:00 p.m. New York City time on March 14, 2003, unless
further extended by Millicom.

The rights of withdrawal for those bondholders who have already
tendered their acceptance to the exchange offer and consent
solicitation shall continue until the new expiration date in
accordance with the terms of the private offering documents.

This press release is neither an offer to purchase nor a
solicitation of an offer to sell Millicom's securities and is not
being made to, nor will tenders be accepted from, or on behalf
of, holders of Old Notes in any jurisdiction in which the making
of the exchange offers and consent solicitations or the
acceptance thereof would not be in compliance with the laws of
such jurisdiction.

Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa. It currently has a total of 16 cellular
operations and licenses in 15 countries. Millicom's cellular
operations have a combined population under license (excluding
Tele2) of approximately 360 million people.

In addition, Millicom provides high-speed wireless data services
in seven countries. Millicom also has a 6.8% interest in Tele2
AB, the leading alternative pan-European telecommunications
company offering fixed and mobile telephony, data network and
Internet services to over 16 million customers in 21 countries.
Millicom's shares are traded on the Nasdaq Stock Market under the
symbol MICC.

Lazard is acting for Millicom International Cellular S.A. in
connection with the exchange offer and consent solicitation and
no-one else and will not be responsible to anyone other than
Millicom International Cellular S.A. for providing the
protections offered to clients of Lazard nor for providing advice
in relation to the exchange offer or consent solicitation.

CONTACTS:  MILLICOM INTERNATIONAL CELLULAR
           Marc Beuls, President and Chief Executive Officer
           Phone: +352 27 759 101
           Home Page at http://www.millicom.com

           LAZARD, New York
           Jim Millstein
           Phone: +1 212 632 6000


           Peter Warner
           Phone: +44 20 7588 2721

           LAZARD, London
           Daniel Bordessa
           Cyrus Kapadia

           SHARED VALUE LTD, LONDON
           Andrew Best
           Phone: +44 20 7321 5022



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


KONINKLIJKE AHOLD: Aware of Potential Problems in U.S. - Source
---------------------------------------------------------------
Grocery retailer and distributor Ahold had been advised about
potential problems in the U.S. food distributor's accounts as
early as 2001, a former executive at Ahold, who asked not to be
identified, told the Financial Times.

According to the source, Ernie Smith, chief financial officer at
U.S. Foodservice, had notified senior Ahold finance officials at
the Netherlands headquarters about the problems, but the concerns
were not properly addressed.

Mr. Smith, who left the company three months after his
appointment at the post, declined to comment.

Ahold also refused to discuss the issue, except to say that the
matter was under investigation.

Ahold was reportedly made aware of potential problems at U.S.
Foodservice after auditors were puzzled by U.S. Foodservice's
accounts before the US$3.6bn takeover in 2000.  But advisers for
the deal refused to acknowledge the claim.

The problems in the accounts recently turned out as a US$500
million hole related to irregular accounting of promotional
allowances in the accounts of the U.S. business.

The discovery led to the resignation of Cees van der Hoeven,
Ahold chief executive officer, and Michael Meurs, chief financial
officer.

The company's founder and chief executive officer, Jim Miller, in
a letter to U.S. Foodservice customers last week expressed his
disappointment over the practice committed by "a few trusted
employees."


KONINKLIJKE AHOLD: Berman DeValerio Files Shareholder Lawsuit
------------------------------------------------------------
Koninklijke Ahold N.V. and two former officers are subjects of a
securities class action, which accuses the company of issuing false and
misleading financial statements to the public, Berman DeValerio
Pease Tabacco Burt & Pucillo said today.

The lawsuit was filed March 3 in the U.S. District Court for the
Southern District of New York. Plaintiffs seek damages for
violations of federal securities laws on behalf of all investors
who bought Ahold securities from March 6, 2001 through and
including February 21, 2003 (the Class Period). Berman DeValerio
has represented investors in class actions for over 20 years. To
review the complaint and learn more about becoming a lead
plaintiff, please visit the firm's website at
http://www.bermanesq.com

The lawsuit claims that Ahold and its officers issued false and
misleading financial statements that misrepresented the Company's
true revenue and earnings, causing its securities to trade at
artificially inflated prices.

Ahold stunned investors on February 24, 2003 when it announced
that:

(i) the Company's U.S. Foodservice subsidiary had materially
overstated its income by close to $500 million by improperly
including higher promotional allowances, provided by suppliers to
promote their products, than the Company actually received in
payment;

(ii) the Company's Disco subsidiary had engaged in certain
transactions       that were possibly illegal and were improperly
accounted for; and (iii) the Company's historical financial
statements would be restated to proportionally consolidate, under
Dutch GAAP and U.S. GAAP, several of the Company's joint
ventures.

Moreover, the Company also revealed that its CEO and CFO had
resigned and that the Company's independent auditors had
suspended their fiscal year 2002 audit pending completion of the
investigations into the foregoing accounting irregularities.

As a result of this news, the price of Ahold ADRs fell $6.53 per
share, or more than 61%, to close at $4.16, on heaving volume. On
February 26, 2003, it was announced that the U.S. Securities and
Exchange Commission and the U.S. Attorney's Office were
investigating Ahold.

If you purchased Ahold securities during the period March 6, 2001
through and including February 21, 2003, you may wish to contact
the following attorney at Berman DeValerio Pease Tabacco Burt &
Pucillo to discuss your rights and interests.

   Julie A. Richmond, Esq.
   One Liberty Square
   Boston, MA 02109
   (800) 516-9926 or (617) 542-8300
   law@bermanesq.com

If you wish to apply to be lead plaintiff in this action, a
motion must be filed on your behalf with the court no later than
April 28, 2003. You may contact the attorneys at Berman DeValerio
to discuss your rights regarding the appointment of lead
plaintiff and your interest in the class action. You may also
retain counsel of your choice. To be a member of the class,
however, you need not take any action at this time.

Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class
actions nationwide on behalf of institutions and individuals,
chiefly victims of securities fraud, antitrust law violations,
and consumer fraud. The firm consists of 33 attorneys in Boston,
San Francisco, and West Palm Beach, Florida.

CONTACT:  BERMAN DEVALERIO PEASE TABACCO BURT & PUCILLO
          Contact: Julie A. Richmond, Esq.
          Phone: +1-800-516-9926, or +1-617-542-8300
          Home Page: http://www.bermanesq.com/


ROYAL KPN: Signs Agreement to Unload Business Radio to Zenitel
--------------------------------------------------------------
KPN and Zenitel on Friday announced that they have signed a
Letter of Intent that provides for Zenitel to acquire all 100% of
the shares in KPN Business Radio Solutions B.V. (BRS). The two
parties aim to effectuate the transfer in the first quarter of
2003 retroactively to 1st January 2003. The transaction is
subject to a due diligence study and the approval of the boards
of management of the companies concerned.

BRS offers services in the Netherlands for private and public
mobile radio networks. The company specialises in building and
operating mobile infrastructures used for business-critical
processes. The customers of BRS include companies in the
transport and manufacturing industries and organisations in the
public sector. BRS is a reseller of the Traxys network services
of KPN Mobile The Netherlands B.V. The annual sales of BRS total
approximately EUR 30 million. The company's workforce of
approximately 180 employees will retain comparable conditions of
employment on transfer to Zenitel.

About Royal KPN N.V.
KPN offers residential and business customers high-quality
telecommunications services. The core activities of KPN are
providing telephone and data/IP services via the fixed network in
the Netherlands, data/IP services in Western Europe via KPN
Eurorings and mobile communication services in the Netherlands,
Germany and Belgium. KPN is market leader in the main segments of
the telecommunications market in the Netherlands. KPN is the
third mobile operator in Germany (via E-Plus) and Belgium (via
BASE).

At year-end 2002, KPN's 38,118 employees were serving 7.9 million
customers with fixed telephone lines, 13.4 million mobile
customers and 1.4 million Internet customers.

About Zenitel
Zenitel is a leading European system integrator and service
provider for professional users of cable and wireless technology.
The company offers complete solutions that include data, voice,
multimedia and Internet services and guarantees optimum results.
Zenitel has a structure built around two business units: Wireless
Solutions and Communication & Security Systems. Worldwide the
company employs approximately 850 people (www.zenitel.biz).

                     *****

Royal KPN posted its full year 2002 results with a net loss after
taxes of EUR163 million.  The result was impacted by significant
impairment charges on goodwill and licenses, restructuring
charges and other write-downs of assets and investments.

CONTACT:  ZENITEL
          Patrick De Groote, Chief Executive Officer
          Phone: +32 2 370 54 50
          E-mail: patrick.degroote@zenitel.biz

         Frederic Dryhoel
         Phone: +32 2 713 07 14
         E-mail: fdryhoel@prforce.com


ROYAL PHILIPS: Issues Notice on Meeting of Shareholders
-------------------------------------------------------
Notice convening the Ordinary General Meeting of Shareholders to
be held on Thursday, March 27, 2003, at 2 p.m., in the Okura
Hotel Amsterdam, Ferdinand Bolstraat 333, Amsterdam, the
Netherlands.

The items on the agenda are as follows:
1.  Opening
2.  Annual Report 2002, distribution to shareholders and
discharge
3.  Language of the Annual Report
4.  Composition of the Supervisory Board
5.  Long-term Incentive Plan
6.  Authorization to issue (rights to) shares
7.  Authorization to repurchase shares
8.  Authorization to determine a record date
9.  Any other business
10. Closing

The complete agenda, the Philips Annual Report 2002 and the
binding proposals for nomination together with information
relating to the nominees are available on our website
(http://ww.investor.philips.com)and free of charge from the
office of the Company (Annual Report Office, Building VO-p, P.O.
Box 218, 5600 MD Eindhoven), and ABN AMRO BankN.V., Foppingadreef
22, 1102 BS Amsterdam, The Netherlands (ABN AMRO Servicedesk: +31
765799455).

The Board of Management has determined that for this general
meeting, with respect to common shares the persons who will be
considered as entitled to vote and/or attend the general meeting,
are those persons who on march 20, 2003, after the processing of
all settlements per this date ('Registration Time') have these
rights and are registered as such in a (sub)register designated
by the Board of Management.  The (sub)registers for bearer shares
are the administrations held at the Registration Time by the
banks and brokers which are according to the Dutch Securities
Depository Act (Wet giraal effectenverkeer') participating
institutions ('aangesloten instelling') of Nederlands Centraal
Instituut voor Giraal Effectenverkeer B.V. ('Participation
Institution').

Holders of bearer shares who either in person or by proxy wish to
attend the general meeting, should notify ABN AMRO Bank N.V.,
Service Desk, tel. +31 76 5799455, not later than 4 p.m., March
20, 2003.  They must submit a confirmation by the Participating
Institution, in which administration they are registered as
holders of the shares, that such shares are registered and will
remain registered in its administration up to and including the
Registration Time, whereupon the holder will receive an admission
ticket for the general meeting.  Holders of shares who wish to
attend by proxy have to submit the proxy at the same time.


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


BANK PEKAO: Issues Series F Bonds to Finance Operating Activity
---------------------------------------------------------------
The Management Board of Bank Pekao SA informs that on March 6,
2003 the Management Board has made a resolution No. 45/III/03 on
the Bearer Bonds Issue of the Series F of Bank Pekao SA. Upon
this resolution 2,000,000 of Bearer Bonds of the Series F have
been issued in the Program of the Bearer Bonds Issue of Bank
Pekao SA with numbers from 1 to 2,000,000. Each bond has a
nominal value of PLN100. The total value of the F Series amounts
to PLN 200,000,000.

The main target of the Bearer Bonds Issue is to finance operating
activity of the Bank.

The first day of the subscription of the Series F Bonds is 12th
of March 2003 and the last day of the subscription of the Series
F Bonds is of April 18, 2003.

The Bearer Bonds of the Series F will be repurchased on December
31, 2003, i.e. on the Repurchase Day.

The interest rate of Bearer Bonds of Series F is fixed and
amounts to 5,70% annually and accruals will be calculated since
the first day of subscription for bonds till the day before
Repurchase Day.

The bonds are not collateralized.

The subscription fee will be received and will amount to PLN1 per
each correctly subscribed and paid Series F Bond.

The total value of Bank's liabilities amounts to PLN53,627million
as at the end of fourth quarter 2002. The Bank has not foreseen
significant changes in the value of liabilities till the
Repurchase Day, excluding changes connected with typical banking
operations, which are run by the Bank and which include
collecting deposits.

                    *****

In August, Fitch Ratings downgraded Bank Pekao's individual
rating from 'C' to 'C/D'.

Fitch said the present negative macroeconomic environment in
Poland has materially affected Pekao's loan portfolio quality.
The bank reported a net loss for 2Q 2002, caused by high loan
loss provisions.


ELEKTRIM SA: Announces Increased Holdings of Vivendi Universal
--------------------------------------------------------------
The Management Board of Elektrim S.A. informs that it has been
notified, that Vivendi Universal S.A., a company organized under
the laws of France and having its registered office in Paris,
hereby notifies that on February 28, 2003, it purchased from
Societe Generale Bank & Trust S.A., a company with its registered
office in Luxembourg (hereinafter referred to as SGBT) 3,000
shares of Merging Markets Development S.A., a company with its
registered office in Luxembourg, (hereinafter referred to as
MMD), which shares represent the entire share capital of MMD.

MMD holds 4,179,933 (four million one hundred seventy-nine
thousand nine hundred and thirty-three) shares of Elektrim S.A.,
a company with its registered office in Warsaw, constituting 4.99
% of the share capital of Elektrim and representing 4,179,933
(four million one hundred seventy-nine thousand nine hundred and
thirty-three) votes at the General Shareholders Meeting of
Elektrim, which corresponds to 4.99 % of the total number of
votes at the General Shareholders Meeting of Elektrim.

As a result of the aforementioned transaction, the number of
shares held in Elektrim by Vivendi and its subsidiaries has
increased and currently amounts to 12,596,116 (twelve million
five hundred ninety-six one hundred and sixteen) shares
constituting 15.04 % of the share capital of Elektrim and
representing 12,596,116 (twelve million five hundred ninety-six
one hundred and sixteen) votes at the General Shareholders
Meeting of Elektrim, which corresponds to 15.04% of the total
number of votes at the General Shareholders Meeting of the said
company. The number of shares currently directly held in Elektrim
by Vivendi has not changed and still amounts to 4,079,683 (four
million seventy-nine thousand six hundred and eighty-three)
shares constituting 4.87 % of the share capital of Elektrim,
whereby Vivendi is entitled to exercise 4,079,683 (four million
seventy-nine thousand six hundred and eighty-three) votes at the
General Shareholders Meeting of Elektrim, corresponding to 4.87 %
of the total number of votes at the General Shareholders Meeting
of the above company.

In performance of the requirement set forth in Article 147,
Section 5 of the Act, Vivendi hereby informs you as follows. The
letter dated April 13, 2001, in which Vivendi informed you about
having exceeded, together with its subsidiaries, 10% of the
aggregate number of votes at the Shareholders Meeting of
Elektrim, stated that Vivendi (together with its subsidiaries)
does not intend to further increase its interest in Elektrim
during the period of the next 12 months.  Pursuant to Article
147, Section 5 of the Act, Vivendi confirms that its intention
remains unchanged. The acquisition of shares in MMD resulting in
the increase in the number of shares in Elektrim held indirectly
by Vivendi was due to SGBT exercising its put option, to which
SGBT was entitled pursuant to the option agreement executed with
Vivendi on June 25, 2000.


NETIA HOLDINGS: Selects PricewaterHouseCoopers as Auditor
---------------------------------------------------------
Netia Holdings S.A., Poland's largest alternative provider of
fixed-line telecommunications services, announced Friday that in
accordance with the relevant regulations of Polish law, Netia's
supervisory board selected on March 6, 2003
PricewaterhouseCoopers Sp. z o.o. with its seat in Warsaw at
Aleja Armii Ludowej 14 as its auditor for 2003 and directed
PricewaterhouseCoopers Sp. z o.o. to audit Netia's stand-alone
and consolidated financial statements for 2003.

PricewaterhouseCoopers Sp. z o.o. is listed on the Polish
National Auditors' Council's list of entities authorized to audit
financial statements under number 144. Netia previously engaged
PricewaterhouseCoopers Sp. z o.o. in connection with (i) auditing
Netia's stand-alone and consolidated financial statements for
previous financial years, (ii) obtaining tax advice, (iii)
obtaining consulting advice with respect to Netia's billing
systems and (iv) preparation of Netia's prospectuses in 2000 and
2002.

CONTACT:  NETIA HOLDINGS
          Anna Kuchnio, Investor Relations
          Phone: +48-22-330-2061


NETIA HOLDINGS: Announces Changes in Management Board
-----------------------------------------------------
Netia Holdings S.A., Poland's largest alternative provider of
fixed-line telecommunications services, announced that Ms. Ewa
Don-Siemion and Mr. Avraham Hochman resigned from their positions
as members of Netia's management board effective March 6, 2003.
Management board of Netia Holdings S.A. thanked Ms. Ewa Don-
Siemion and Mr. Avraham Hochman for their major contributions to
the management of the Company and its external legal and
financial affairs, especially during the difficult restructuring
process.

At the same time, Netia's supervisory board appointed Mr.
Zbigniew Lapinski as member of the management board holding the
position of temporary Chief Financial Officer, effective March 6,
2003.

Zbigniew Lapinski graduated from the Warsaw School of Economics
with a master's degree in economics. He joined Netia in 2001.
From 2001 Mr. Lapinski held the position of Netia's deputy Chief
Financial Officer and worked, among others, on the financial
restructuring of Netia. Prior to joining Netia, Mr. Lapinski
worked at the United Nations Industrial Development Organisation
and for five years pursed a career in investment banking working
for Deutsche Bank and Creditanstalt.

CONTACT:  NETIA HOLDINGS S.A.
          Anna Kuchnio, Investor Relations
          Phone: +48-22-330-2061


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


MENATEP ST. PETERSBURG: Long-Term Rating Raised to 'CCC+'
---------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
long-term counterparty credit rating on Russia-based bank Menatep
St. Petersburg (MSPb) to 'CCC+' from 'CCC'. At the same time, the
short-term counterparty credit rating was affirmed at 'C'. The
outlook is stable.

"The rating action reflects the improvement in the Russian
economic environment during the past three years, which has
increased business opportunities for the bank and reduced the
credit risk linked to the bank's clients in the public and
private sectors," said Standard & Poor's credit analyst Ekaterina
Trofimova. "It also reflects MSPb's good commercial profile and
widespread retail network, which provide the bank with the
potential to improve its market position."

The ratings on MSPb are constrained, however, by the bank's
relatively weak financial profile, small capital base, and large
single-party exposures, as well as by structural weaknesses in
the Russian financial sector. MSPb benefits commercially from its
membership in Group Menatep, a financial-industrial group (FIG)
that includes OAO NK Yukos (BB/Stable/--), Russia's second-
largest vertically integrated oil company.

The stable outlook reflects the bank's good business prospects,
underpinned by an expanding client base and better prospects for
macroeconomic stability in Russia.

"MSPb's ability to sustain and improve core performance beyond
2003, as well as a significant increase in the bank's relatively
small capital, would contribute to a possible upgrade," added Ms.
Trofimova. "The PSb's capital policy (set by Group Menatep),
along with its ability to diversify lending and improve
operational efficiency, will determine the future direction of
the ratings."


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


EM.TV & MERCHANDISING: Cancels Deal to Sell Stake in Jim Henson
---------------------------------------------------------------
Children's film producer EM.TV & Merchandising AG and Dean
Valentine, former head of Viacom Inc.'s UPN television network
and Walt Disney Co.'s TV production studio, mutually cancelled an
agreement for the sale of the former's 49.9% stake in Jim Henson
Co. to Valentine.

The German company had planned to complete the sell-off in
January, but until now both parties are still negotiating to
revise the terms of the agreement.

Debbie McClellan, vice president of corporate communications at
Jim Henson Co., declined to comment on why the sale agreement was
canceled, while Richard Fields of Allen & Co, an investment bank
that EM.TV hired to find a buyer for Jim Henson Co., also
declined to comment.

EM.TV is in talks with other bidders regarding the asset it
bought for EUR690 million (US$759.5 million) in 2000, according
to Bloomberg.  Billionaire investor Haim Saban is reportedly
interested in the asset.  London-based Entertainment Rights Plc
and closely held Classic Media LLC are also said to be potential
bidders.

The company is currently trying to steady its finances after an
expansion into Formula One car racing under former Chief
Executive Officer Thomas Haffa left it with significant debts.
It cut jobs and sold some film units to prop up its balance
sheet.

The proceeds of the stake sale are expected to help the company
pay back a EUR25 million (US$27.5 million) loan to finance a
television venture.

EM.TV's stock, which has lost 17%% of its value this year, is
expected to experience another beating after the cancellation of
the agreement.

The company is now valued at EUR114 million, after shares dropped
55% in the past 12 months.


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


LM ERICSSON: Proposes Changes in Management, No Dividend for 2002
-----------------------------------------------------------------
The nomination committee proposes Arne M?ensson and Carl-Henric
Svanberg to be elected Directors of the Board and re-election of
Peter Bonfield, Sverker Martin-L?Eckhard Pfeiffer, Peter
Sutherland, Michael Treschow, Lena Torell and Marcus Wallenberg.
Tom Hedelius has declined re-election.

As a consequence, the nomination committee proposes that the
number of Board members be nine, and that no deputy Board members
appointed.

Also, the committee suggests that the fee to the Board of
Directors be unchanged at maximum SEK 8 million to be distributed
by the Board of Directors among its members. Further, it is
proposed that the Chairman of the Board receives an additional
temporary fee of SEK 5.5 million for each of the years 2002 and
2003 in appreciation of his exceptional work efforts during 2002,
all beyond the normal duties of a chairman, and which will also
be required by the Chairman during 2003.

According to the Articles of Association, the number of Auditors
shall be three and the number of deputy Auditors a maximum three.
The Auditors and deputy Auditors are elected for a four-year
period up to the Annual General Meeting 2007. It is proposed that
the number of deputy Auditors be three, and that the fee to the
Auditors continue to be paid on account.

Carl-Eric Bohlin and Thomas Thiel are proposed by the Board to be
re-elected Auditors and Bo Hjalmarsson to be elected Auditor.
Furthermore, Stefan Holmstr?nd Jeanette Skoglund are proposed to
be re-elected Deputy Auditors and Peter Clemedtson to be elected
Deputy Auditor.

Regarding the election of Members of the Nominations Committee
and determination of the fee to the committee, the company has
received proposals for appointment of Claes Dahlb?, Investor,
Anders Ek,
Robur, Anders Nyr? Industriv?en, Lars Otterbeck, Alecta, and
Michael Treschow as members of the Nomination Committee until the
end of the Annual General Meeting in 2004. Further, the
nomination committee proposes no fee be paid to the committee for
this period.

The Board of Directors proposes no dividend be paid for year
2002.

The Annual General Meeting will also discuss re-purchase of own
stock in connection to the Global Stock Incentive Program 2001,
and a continued stock purchase plan for 2003 according to
previously announced proposals.

Notice convening the meeting and an agenda will be published in
Svenska Dagbladet, Dagens Nyheter and Post och Inrikes Tidningar
on March 10, 2003 and at http://www.ericsson.com/investors

Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication
companies in the world.

CONTACT:  LM ERICSSON
          Pia Gideon, Vice President, External Relations
          Ericsson Corporate Communications
          Phone: +46 8 719 8903
          E-mail: pia.gideon@lme.ericsson.se


SCANDINAVIAN AIRLINE: Unveils Measures to Enhance Efficiency
------------------------------------------------------------
In conjunction with the publication of its year-end report on
February 12, 2003, the SAS Group announced that additional
structural measures would be required to ensure long-term
profitability and competitiveness. A detailed analysis regarding
the SAS Group's markets, traffic flows and competitive situation
is currently under way with the aim of determining the demands
for efficient flight operations for the Group's various traffic
flows and the airlines' future roles in the Group's traffic
system.

Efficient flight operations
All airlines within the SAS Group must achieve efficient flight
operations to ensure long-term competitiveness and profitability.
Efficient flight operations places demands on extensive
structural measures in all areas. For example, the utilization of
aircraft and crews must increase substantially to attain levels
corresponding to the competition. In addition, a more distinct
base separation in Stockholm, Oslo and Copenhagen, a reduction of
the types of aircraft per base, enhancing the efficiency of
maintenance, ground services, sales and distribution and
reduction of overhead and support costs are being evaluated.

There is scope for increases in efficiency within all the Group's
airlines, but Scandinavian Airlines is the Group company with the
greatest need of further structural measures to achieve efficient
flight operations. The identified unit cost reductions in
Scandinavian Airlines to achieve long-term competitiveness is in
the range of 25-40%, in addition to the measures already
initiated depending on which market is being served. Braathens
and Wideroe also need to reduce costs levels, but to a lesser
degree. Spanair and Air Botnia already today fulfill most of the
Group's demands for efficient flight operations in the traffic
they operate.

Timetable
All employees and trade unions are being informed today and in
the days ahead about the analysis work that is under way to
achieve efficient flight operations for the Group's different
traffic flows. No finalized proposal with measures is available
and no decisions have been made to date. Work will be carried out
with the greatest urgency and the timetable is very tight due to
the current situation in the airline industry. The established
negotiation and decision process means that the trade union
negotiations shall be completed so that it is possible to present
a final proposal to the Group Board already in mid-April.


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


CREDIT SUISSE: NASD Charges Frank Quattrone With Accusations
------------------------------------------------------------
NASD on Thursday charged Frank P. Quattrone, formerly the head of
Credit Suisse First Boston's (CSFB's) technology sector
investment banking unit (Tech Group), with "spinning" violations
as well as creating and overseeing a flawed organizational
structure that undermined research analyst objectivity. In a
separate complaint filed today, NASD also charged Quattrone with
failing to cooperate in an NASD investigation into whether he
encouraged CSFB Tech Group employees to destroy documents after
he was notified of NASD and federal investigations. Today's
complaints are an outgrowth of NASD investigations into
investment banking activities, including IPO pricing and analyst
conflict of interest, that began in May 2000.

"Recent investigations into conflicts of interest on Wall Street
have shown that in too many cases in the past, investors'
interests were compromised for greater investment banking
revenues," said Mary L. Schapiro, NASD's Vice Chairman and
President of Regulatory Policy and Oversight. "In restoring
integrity to our markets and investor confidence in our industry,
it is absolutely necessary that we hold individuals responsible
for these abuses accountable. Institutions can only act through
people and when individuals violate our rules, enforcement
actions with meaningful sanctions must follow."

The first of the two complaints filed today alleges the
following:

When Quattrone joined CSFB in 1998, he was already an established
investment-banking star. At CSFB, Quattrone continued to play a
dominant role in the business of underwriting new issues for
technology companies. Quattrone created what amounted to a firm-
within-a-firm at CSFB, bringing with him dozens of colleagues and
associates and fashioning an organizational structure under which
research analysts, investment bankers, and brokers all reported
to him. This structure was enormously successful. In 1999, CSFB
managed more U.S. IPOs than any other firm. In 2000, investment
banking was the firm's second largest revenue source, generating
$3.68 billion, a 60 percent increase over the year before.
Quattrone's profited substantially as well. Between August of
1998 and the end of 2001 he personally received compensation of
over $200 million.

One way Quattrone's Tech Group sought to win and retain
investment-banking business was by "spinning" IPO shares, for
example, giving access to hot IPOs to select corporate executives
who could influence their employers' choice of investment
bankers. Spinning took a uniquely aggressive form in the Tech
Group. In making presentations to prospective investment banking
clients, the Tech Group held out access to IPO shares as an
inducement to the prospective client's officials.

The group also identified "strategic" technology company insiders
and ranked them according to their perceived ability to influence their
companies' choice of investment bankers. At its peak, there were
over 300 accounts popularly known as "Friends of Frank" accounts.
Through managed discretionary trading accounts, the Tech Group
allocated IPO shares to such individuals and, in aftermarket
trading, flipped shares back to CSFB, producing substantial
profits for the owners of the accounts.

To prevent dilution of  the IPO profits, the Tech Group discouraged
the owners from trading in the accounts themselves. To ensure that the
owners knew how much money was being made for them, the group
sent them monthly unofficial performance reports enumerating realized
and unrealized gains and rates of return. The unofficial report on
one such account reflected total gains of more than $1.3 million
and a rate of return of nearly 58,000 percent over a 19 month
time period. Because dispensing such profits to tech company
insiders was tantamount to giving them cash gifts, the practice
violated NASD gifts and gratuities rules.

Another way the Tech Group sought to obtain business was by
holding out to prospective clients the prospect of CSFB's issuing
favorable research about them. Tech Group research analysts
actively participated in soliciting investment-banking business.
"Pitch books" used in presentations to prospective clients
included excerpts from favorable research reports prepared by
Tech Group analysts for other CSFB client companies. Quattrone
created a powerful incentive for analysts to initiate and
maintain positive coverage on investment banking clients by
linking their compensation to investment banking revenue and
encouraging investment bankers to participate in analysts'
performance evaluations. He also allowed issuers to review and
comment on draft research reports, including proposed
recommendations and price targets. These practices compromised
the independence and objectivity of the Tech Group's analysts.

By creating the inherently flawed reporting and supervisory
structure under which these improper practices flourished, and by
allowing and endorsing these practices, Quattrone violated NASD
rules.

This action grew out of the coordinated research analyst
investigations led by the SEC and conducted by NASD in
conjunction with the NYSE and other regulators.

In the second complaint filed today, NASD charged Quattrone with
failing to appear for investigative testimony before NASD. The
expected testimony was to cover a number of subjects including
whether Quattrone encouraged CSFB employees in the Tech Group to
destroy documents after being notified of NASD and federal
investigations. Quattrone was notified as early as June 2000 that
NASD was investigating CSFB's IPO allocation practices, and was
specifically counseled then not to alter or destroy documents.

In September 2000, Quattrone was advised of an SEC investigation
and on December 3, 2000, he was notified of a federal grand jury
investigation of those same practices. Yet on December 5, 2000,
Quattrone sent an e-mail to Tech Group employees encouraging them
to cleanse their files. In January 2002, CSFB settled charges
relating to this IPO profit sharing investigation, paying NASD
and the SEC $100 million.
http://www.nasdr.com/news/pr2002/release_02_005.html.

Under NASD rules, a firm or individual named in a complaint can
file a response and request a hearing before an NASD disciplinary
panel. Possible remedies include a fine, censure, suspension, or
bar from the securities industry, disgorgement of gains
associated with the violations, and payment of restitution.

Investors can obtain more information and the disciplinary record
of any NASD-registered broker or brokerage firm by calling (800)
289-9999 or by sending an e-mail through NASD's Web Site at
http://www.nasd.com/

NASD is the leading private-sector provider of financial
regulatory services, dedicated to bringing integrity to the
markets and confidence to investors through effective and
efficient regulation and complementary compliance and technology-
based services. NASD touches virtually every aspect of the
securities business -- from registering and educating all
industry participants, to examining securities firms, enforcing
both NASD rules and the federal securities laws, and
administering the largest dispute resolution forum for investors
and member firms. For more information, please visit our Web Site
at http://www.nasd.com/.

CONTACT:  NASD
          Nancy A. Condon
          Phone: +1-202-728-8379
          Michael Shokouhi,
          Phone: +1-202-728-8304


CREDIT SUISSE Attorney for Quattrone RespondS to NASD Charges
-------------------------------------------------------------
The following is statement by Howard E. Heiss, Attorney for Frank
Quattrone, responding to charges by NASD:

The NASD charges are completely without merit and represent an
unprecedented attempt to take punitive action against an
individual for conduct that was legal at the time and widespread
throughout the industry.

As Chuck Ward, CSFB's global co-head of investment banking, said:
Mr. Quattrone "is not and was not responsible for overseeing
brokerage accounts or commissions, nor is he or was he
responsible for IPO allocations." (5/2/01 - Wall Street Journal).
Further, CSFB's Legal and Compliance department thoroughly
reviewed and approved the allocation practices that are the
subject of the NASD complaint.

The organizational structure for research and brokerage was
designed and approved by CSFB's top management and legal counsel,
and conformed to all laws and regulations.

The cooperation charge is based solely on the NASD's refusal to
make a reasonable accommodation after taking two full days of Mr.
Quattrone's testimony.

Mr. Quattrone will vigorously contest these unfair and unfounded
charges.

Howard E. Heiss is with the law firm of Morrison & Foerster.

Source: Chlopak, Leonard, Schechter & Associates

CONTACT:  CHLOPAK, LEONARD, SCHECHTER & ASSOCIATES
          Bob Chlopak
          Phone: +1-202-777-3506
          E-mail: bob@clsdc.com


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


AES DRAX: In Debt Restructuring Discussion With Creditors
---------------------------------------------------------
AES Drax power station, the 4,000-megawatt coal-fired plant in
North Yorkshire, England, is in discussions with its banks
regarding a debt restructuring, a company official told Dow
Jones.

According to Gary Levesley, president and station manager,
"Restructuring discussions are starting in earnest now."  The
talks involve 53 banks, including Deutsche Bank, Abbey National,
Barclays PLC and JP Morgan Chase.

Western Europe's biggest power station is hoping to complete the
restructuring by May 31, the date bondholders set as the deadline
for collecting money owed to them.  Non-recourse debts to banks
and bondholders total GBP1.2 billion.

AES Chief Executive Paul Hanrahan said any cash flow generated by
Drax is likely to go to paying debt interest payments and not to
the principal.

He also said: "It's likely lenders will have the ability to take
some of (our Drax) shares as collateral if they think that's
best."

AES Drax ran into trouble after it failed to collect payment for
power supplied to troubled TXU Europe.  Later, TXU Europe
altogether cancelled its long-term contract with the company.

The cancellation forced Drax to sell its power on the open market
at prices far below what it had been getting from TXU Europe.

Parent AES had refused to inject more cash into the unit this
year.


AMP GROUP: Moody's Assigns Negative Outlook to Ratings
------------------------------------------------------
Moody's assigned a negative outlook to the ratings for the AMP
Group on worries about continued pressure on earnings for AMP,
and on the return of the group's U.K. operations to sustainable
profitability.

Negative outlooks were placed on the ratings:

AMP Life LtdAa3 insurance financial strength

AMP Group Holdings LtdA3 senior debt

AMP (UK) Finance Services LtdA3 senior debt

AMP Group Finance Services plcA3 senior debt

Baa1 subordinated debt

AMP Henderson Global InvestorsBaa2 subordinated debt

Pearl Assurance plcA3 insurance financial strength

National Provident LifeA3 insurance financial strength

NPI Finance plcBaa2 subordinated debt

The following ratings were confirmed with a stable outlook

AMP Group Holdings LtdP-2 commercial paper

AMP Group Finance ServicesP-2 commercial paper

AMP (UK) Finance Services plcP-2 commercial paper

AMP made an AU$896 million loss for 2002 as a result of
investment losses, and write-downs on some operations.  While its
core Australian business remained strong, its U.K. businesses
needed to undergo a restructuring.  AMP's U.K. life operations
have come under considerable capitalization pressure as equity
markets have continued to fall.

Moody's warned of continued pressure in AMP's earnings generation
in the short-term, particularly due to the restructuring of the
U.K. businesses.

It cautioned further: "The U.K. operations' continued, albeit
reduced, exposure to U.K. equity market conditions continues to
create some uncertainty."

AMP Ltd, headquartered in Sydney, Australia, had total assets of
A$158 billion as at end 2002.


ARC INTERNATIONAL: Decides to Return Capital to Shareholders
------------------------------------------------------------
On 12 February 2003, the company dispatched a circular to its
shareholders for the purposes of, inter alia, convening an
extraordinary general meeting of shareholders on March 7, 2003 in
connection with the proposed return of capital by the Company to
its shareholders ('Return of Capital').

ARC announces that, at the EGM held earlier Friday, shareholders
passed each of the resolutions proposed, including those relating
to the Return of Capital.

The Return of Capital will be achieved by means of, inter alia, a
tender offer involving the repurchase for cancellation of up to
o48.5 million (less the costs of the tender offer) worth of
ordinary shares of the company. The first stage of this process
will be the cancellation of the company's share premium account
(the 'Reduction of Capital') so as to create sufficient
distributable reserves out of which the ordinary shares can be
repurchased.

The Reduction of Capital is subject to confirmation by the High
Court at a hearing that is expected to take place on or about 2
April 2003. Subject to obtaining that confirmation, it is
anticipated that the Reduction of Capital will become effective
on or about 3 April 2003.

It is expected that shareholders will be sent a circular setting
out the formal terms of the tender offer, together with a form
for participating in the tender offer, on or about 8 May 2003.

                   *****

ARC International PLC has appointed WestLB Panmure Ltd. as joint
corporate broker and financial adviser to review the loss-making
company's capital structure.

For months, the company's major shareholders have been trying to
return most of the company's GBP108 million cash reserve.

CONTACT:  ARC INTERNATIONAL PLC
          Mike Gulett, Chief Executive Officer
          Phone: 001 408 437 3404
          Monica Johnson, Chief Financial Officer
          Phone: 001 408 437 3470

          WESTLB PANMURE
          Andrew Godber/Mark Lander
          Phone: +44 (0) 20 7020 4000

          TULCHAN COMMUNICATIONS
          Julie Foster
          Phone:  +44 (0) 20 7353 4200


BOOTS PLC: Could Have Opted Against Closing Airdrie
---------------------------------------------------
Healthcare chain Boots could have saved its Airdrie factory, as
well as the 1000 jobs expected to go with the closure of the
plant had it followed initial plans of pulling out of continental
Europe.

Internal reports revealed that the Nottingham-based company had
the options of closing its factories in either France or Germany,
exiting Europe altogether, or closing Airdrie.

The report also shows it could have saved five times by shutting
down European operations instead of closing Airdrie.  Unwinding
the European venture is estimated to cost only GBP5 million,
whereas, closing Airdrie is expected to take around GBP27
million.

But Boots chose to shut Airdrie in order to consolidate cosmetic
expertise in France and Germany, fill spare capacity at the
factories, and was the "lowest risk involved in technology
transfer," according to The Herald.

The report also suggested that Boots had intended to close
Airdrie before the end of January, as scheduled, by specifying
that its manufacturing review had to be completed by July 10.

But sources close to the company denied such schedule, saying a
decision was only reached after a board meeting at the end of
January.


BRITISH ENERGY: Government Issues Statement on Extension of Loan
----------------------------------------------------------------
British Energy Plc Extension Of Uk Government Loan Facility,
Update On Amergen, ADR Ratio Change

Loan Facility

The U.K. Government has agreed to extend the facility agreement,
entered into on September 26, 2002 (as amended), in order to
provide financial stability and security whilst British Energy
seeks to achieve the restructuring announced on November 28,
2002.

The Facility will mature on the earlier of September 30, 2004 or
the date on which the restructuring plan becomes effective and
will be reduced from GBP650m to GBP200m to provide working
capital for the business and collateral to support U.K. trading
operations. HMG will be entitled to require immediate prepayment
of the Facility if British Energy does not obtain formal
approvals to the standstill agreements (terms of which were
announced on February 14, 2003) by March 25, 2003 from the
creditors (Eggborough Banks, bondholders, Royal Bank of Scotland,
Enron, TotalFinaElf and Teesside Power Limited) or if in the
opinion of the Secretary of State the restructuring cannot be
implemented in the manner or timescale envisaged.

The Board continues to believe that the proposed restructuring is
in the best interests of the Company and is working closely in
conjunction with its advisers and creditors to implement a
successful restructuring of British Energy in accordance with the
Restructuring Proposals accepted on November 28, 2002 by HMG.
However, if the requirements set out in the restructuring
proposals are not met and the restructuring is therefore not
implemented, 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 that there would be any return to
shareholders.

Update on AmerGen

British Energy and Exelon Generation Company LLC announced in
September 2002 their intention to sell their interests in
AmerGen, which owns and operates three nuclear power stations in
the United States.

British Energy has decided, jointly with Exelon, to terminate
this sale process. British Energy and Exelon together concluded
that none of the proposals received adequately reflected the
intrinsic value of AmerGen.

In accordance with the restructuring principles announced on
November 28, 2002, British Energy is continuing to take steps to
realise its 50% interest in AmerGen and to be in a position to
execute a sale agreement by June 30, 2003.

ADR Ratio Change

As announced in the Interim Results on December 12, 2002, the
Company has been in discussions with the New York Stock Exchange
to ensure that it complies with its continued listing criteria
relating to the minimum share price. Therefore, the ratio on the
British Energy shares traded on the New York Stock Exchange will
be changed from 1 ADR to 4 ordinary shares, to a new ratio of 1
ADR to 75 ordinary shares. It is expected that this change will
be effective by April 30, 2003

CONTACT:  FINANCIAL DYNAMICS
          Andrew Dowler
          Phone: 020 7831 3113


BRITISH ENERGY: DTI Issues Statement on Loan Extension
------------------------------------------------------
Statement From Secretary of State For Trade and Industry to The
House of Commons, March 7, 2003

Extension and amendment to the British Energy Credit Facility
Agreement:

The current British Energy Credit Facility Agreement (CFA) came
into effect in September 2002 and expires on March 9, 2003.

In my statement to the House on February 24, I confirmed that the
Government would be prepared to continue to fund BE's operations
while its restructuring plan was agreed and implemented, and that
I was willing to extend the credit facility at a reduced level
for a period after March 9. In that statement, I also confirmed
that I intended to apply for state aids approval from the
European Commission for this continued financing as Restructuring
Aid. This application is being sent to the Commission [Fri]day.

Sufficient proceeds have been received from the sale of BE's
stake in Bruce Power to enable BE to repay all outstanding
amounts under the credit facility (amounting to about GBP215m
including interest and commission) to my Department [Fri]day. On
a contingency basis, I have decided with BE's agreement, to
continue the credit facility, with the maximum amount available
being reduced from GBP650m to GBP200m.

The credit facility will be extended to the earlier of September
30, 2004 or the date on which the restructuring plan becomes
effective. The controls governing any drawings proposed by BE
will remain in place. The credit facility will become repayable
if certain milestones in the restructuring process are not
achieved. We shall therefore continue to be ready with
contingency plans for the administration of BE to ensure safety
and security of supply.


GEORGE WHITEHOUSE: Administrators Offer to Sell Business
--------------------------------------------------------
The joint administrative receivers, offer for sale the business
and assets of this manufacturer of metal cable trunking,
presswork and security products.

Principal features include: leasehold premises in Kingswinford
c30,000 sq ft, established customer base (since 1915), turnover
cGBP3 million, skilled workforce of 40 employees.

CONTACT:  KPMG CORPORATE RECOVERY
          2 Cornwall Street
          Birmingham B2 2501
          Phone: 0121 232 3000
          Fax: 0121 335 2501
          E-mail: Joanne.abbott@kpmg.co.uk
          Homepage: http://www.kpmg.co.uk
          Contact: Mark Orton or Beverly Marsh
          Or
          GEORGE WHITEHOUSE ENGINEERING
          Building 2, Dandy Bank Road
          Pensnett Trading Estate
          Kingswinford, West Midlands
          DY6 7PP
          Phone:  01384 401314
          Fax:  01384 292798


INVENSYS PLC: To Step Down From FTSE 100 Index This Week
--------------------------------------------------------
Automation and controls group Invensys is expected to step down
from FTSE 100 index this week after posting a record-breaking
share price drop of 75% last month.

The group's shares suffered from the company's profit warning in
mid-February.  The stock is now down to 96% from its peak in
1998.

Invensys has fallen to the 202nd slot of the largest London stock
by market capitalization since week, well outside the 110th spot
needed to ensure blue-chip survival.  It hit record among
companies dismissed for having the lowest place in the FTSE 100
prior to its dismissal.

After the spring quarterly review of FTSE's London indices,
Invensys will be pushed down to the mid-cap FTSE 250.

The U.K.-based group is facing growing pension liabilities,
compounded with tepid sales.  In February, it announced further
asset disposals amidst worry about its ability to keep banking
covenants.


ROYAL SUNALLIANCE: Fitch Says Results Raise More Questions
----------------------------------------------------------
Fitch Ratings, the international rating agency, said Friday that
Royal & SunAlliance Insurance plc's (RSAIP) 2002 year-end results
highlighted concerns over reserve adequacy, solvency margins and
credit losses which could further hinder the company's capital
base and operating performance in 2003. The agency added that
failure to show tangible progress during the next three to six
months could lead to further negative rating actions.

On 25 February 2003, the agency downgraded the Insurer Financial
Strength ratings of RSAIP and its U.S. insurance subsidiaries to
'BBB+' from 'A-' ('A minus'). The agency also downgraded RSAIP's
Long-term rating to 'BBB-' ('BBB minus') from 'BBB', and the
rating on the junior subordinated debt issued by Royal &
SunAlliance Insurance Group plc (RSAIG) to 'BB+' from 'BBB-'
('BBB minus'). The Rating Outlook is Negative.

Although the ratings remain unchanged, the agency has the
following concerns regarding issues that could potentially impact
the group's ability to execute its strategy during 2003.

Firstly, reserve strengthening in 4Q02 was GBP119 million higher
than anticipated and no reassurances were given by senior
management that the group is reserved at the "best estimate" or
the "mid-point" recommended by independent actuaries. Prior year
reserve strengthening in 2002 was GBP595m and Fitch is concerned
that further significant reserve strengthening in 2003 would
reduce the solvency margin towards minimum statutory levels The
agency believes that further reserve strengthening could be
possible, particularly in respect of the group's U.S. business.
This business segment accounted for 30% of net premiums written
in 2002 but represented 60% of the underwriting loss. However,
asbestos and environmental reserves appear to be at a
satisfactory level based on published survival ratios.

Secondly, the agency is concerned that the group meets its
overall regulatory margin by only 1.3x or GBP600m, which would
fall to 1x if the group's reserves were not discounted. The
agency notes that operating below twice the regulatory minimum
solvency margin has traditionally been regarded as a sign of
capital weakness.. It would appear regulators are closely
monitoring the group as it moves towards new U.K. regulatory
requirements in 2004. The new requirements could have financial
consequences for the group, while it also has to deal closely
with the U.S. regulator as a result of temporarily falling below
the 2x level requiring company action for its U.S. operations.

Lastly, the group has indicated for the first time that it is
exposed to losses arising from collateralised debt obligations
(CDOs). The agency believes further credit losses cannot be ruled
out in the current economic environment. The group is currently
forecasting ultimate losses of GBP116m but has total exposure of
USD700m in respect of CDOs.

Partially offsetting these concerns is the news that some core
underlying businesses are starting to show improved earnings, for
example, the U.K. commercial portfolio, which accounted for 20%
of net premiums written in 2002. The group reported a
disappointing 2002 combined ratio of 109.4% although a more
encouraging 102.1% on an accident year basis. 2002 earnings did
include goodwill write-downs in respect of the U.S. businesses of
GBP549m. In addition, it would appear that the group's future
earnings might not be materially impacted by the decision to
increase group pension contributions by GBP30m per annum over the
next ten years, assuming no further significant worsening of the
pension funding shortfall.

Fitch will be closely monitoring the group's progress over the
next three to six months as it seeks to implement its strategy,
and will be assessing if any further rating action is required.

NOTE: These ratings were initiated by Fitch as a service to users
of Fitch ratings. These ratings are based primarily on public
information.

CONTACTS:  FITCH RATINGS
           David Wharrier, London
           Phone: +44 (0)207 417 6292
           Greg Carter, London
           Phone: +44 (0)207 417 6327
           Andrew Murray, London
           Phone: +44 (0)207 417 4303
           Donald Thorpe, Chicago
           Phone: +1 312 606 2353


ROYAL & SUNALLINCE: Statutory Surplus Falls Off Requirement
-----------------------------------------------------------
Standard & Poor's Ratings Services commented on Royal & Sun
Alliance Insurance PLC's (A-/Developing/A-2) recent earnings
announcement, which stated that its operating companies' (RSA
USA; BBB+/Developing/--) statutory surplus has fallen below the
2x regulatory requirement.

This development will not affect the counterparty credit and
financial strength ratings on RSA USA.

The shortfall itself ($20 million in aggregate) is located in
three separate operating subsidiaries within RSA USA, and is
being addressed by management with the Connecticut State
Insurance Department through the immediate sale of fixed-income
holdings. The consolidated statutory surplus of RSA USA was $1.38
billion at year-end 2002.

Related to this announcement, Standard & Poor's will continue to
separately monitor RSA USA's financial strength, capital
adequacy, and ability to reduce its stand-alone exposure to any
potential prospective adverse financial conditions. Standard &
Poor's lowered its ratings on RSA USA (as well the parent) in
November 2002 based on the expectation that capital and earnings
targets for 2002 would not be achieved; the earnings announcement
supports that rating action.

Standard & Poor's continues to expect the parent to complete, as
scheduled, the financial program outlined in November 2002, which
specifically addresses the relative weakness of capitalization in
the group's rating profile. Failure to achieve this expectation
could result in the ratings on both the parent and RSA USA being
lowered.

CONTACT:  STANDARD & POOR'S
          Frederick Loeloff, New York
          Phone: 212/438-7215
          Mark Button, London
          Phone: (44) 20-7847-7045


SFI GROUP: Announces Delay of Interim Results Publication
---------------------------------------------------------
The board of SFI announces that, because the full review of the
Group's financial position announced on October 21, 2002 is still
ongoing, it has decided to delay the publication of its interim
results for the 28 weeks ended December 14, 2002, which are
required to be released under the Listing Rules on or before
March 14, 2003.

A further announcement in this regard will be made in due course.

                     *****

On October 21, 2002, the Company reported that its bankers had
granted temporary waivers in relation to certain breaches of its
banking facilities and that it was working constructively with
them towards implementing revised facilities, which were expected
to be in place around the end of the calendar year.


SOLENT ENERGY: Notice Regarding Meeting of Creditors
----------------------------------------------------
Notice is hereby given that a Meeting of creditors of the above
matter is to be held at The Winchester, Hampshire SO23 7AB on the
March 17, 2003 at 11:30am to consider our proposals under Section
23 (1) of the Insolvency Act 1986 and to Consider establishing a
creditors' committee.

Proxy Forms should be completed and returned to us at RSM Robson
Rhodes, Centre City Tower, 7 Hill Street, Birmingham B5 4UU by
the date of the meeting if you cannot attend the Meeting and wish
to be represented.  In order to be entitled to s vote at the
Meeting, you must give to us, not later than 12.00 hours on the
business day before the day fixed for the meeting, details in
writing of your claim.

CONTACT:  GERALD CLIFFORD SMITH and JOHN NEVILLE WHITFIELD
          RSM Robson Rhodes
          Centre City Tower
          7 Hill Street
          Birmingham B5 4UU

          SOLENT ENERGY LTD
          Spithead Business Centre
          Sandown Isle of Wight
          P036 9PH
          England
          Phone: (0) 1983 402555
          Fax:(0) 1983 402777
          E-mail: sales@solent-energy.com
          Home Page: http://www.solent-energy.com/


THOMAS COOK: Posts After-Tax Net Loss of EUR120 Million
-------------------------------------------------------
Despite a decline in the number of guests, Thomas Cook AG
realized significantly positive operating result in financial
year 2001/2002 (November 1, 2001 to October 31, 2002). Stefan
Pichler, Chairman of the Board and CEO of Thomas Cook AG, said on
the occasion of the Group's annual results press conference held
on Wednesday, March 5 in Frankfurt: "In view of the recession in
leisure travel in Europe, this is an acceptable result." After
all, demand for leisure travel decreased throughout Europe - in
Germany and Austria even at a substantial double-digit rate.

In line with this development, the number of guests declined by
6.2 percent to 13.2 million during financial year 2001/2002.
Sales of 8.1 billion euro were 3.2 percent higher than the
reported previous year's figure of 7.8 million euro. However, as
Thomas Cook U.K. was included for the entire financial year for
the first time, compared with only seven months the previous
year, adjusted sales figures were down by 6.0 percent.

Measures for earnings protection, cost reduction and capacity
management introduced at an early stage within the framework of
the Triple T program to secure earnings, partially offset the
decline. As a consequence, the operating result before the
financial result taxes, and goodwill amortization (EBITA) of 62.2
million euro continued to be positive. Nevertheless, this
represents a decline vis-.-vis the comparable previous year's
figure (150.5 million euro).

Non-Recurring Effects and Non-Scheduled Expenses Impact the
Result
The result was simultaneously impacted by a large number of non-
recurring effects, which totaled 50 million euro. Marketing
expenses for implementation of the new brand strategy totaled 9
million euro and the intended re-dimensioning of the Condor fleet
made necessary a 5 million euro one-time provision for risks.
Additional charges resulted from impairment losses on the
carrying amount of a hotel participation amounting to 25 million
euro and on the goodwill of Kreutzer Touristik totaling 11
million euro because of the decision to re-brand to Thomas Cook
Reisen.

Because of the negative development in guest numbers and the high
non-recurring charges, the Thomas Cook Group recorded an after-
tax net loss of 120 million euro for financial year 2001/2002.
This compares with a net profit 20 million euro the previous
year.

Annual Report according to IAS for the first Time
The consolidated financial statements of Thomas Cook AG were
drawn up for the first time according to the International
Accounting Standards (IAS). As a consequence, also for the first
time, the annual financial statements contain detailed
information concerning the significant segments of the leisure
travel business. Overall, 54.6 percent of gross sales were
generated outside Germany during the financial year - more than
twice the volume of three years ago. The contributions to the
consolidated result by the individual, geographically
differentiated divisions varied considerably.

Following the attack on the island of Djerba in April 2002 and
the flood catastrophe in the eastern part of Germany in August
2002, the German market suffered from a restrained level of
consumer spending to a greater extent than other markets. This
led to double-digit sales declines. Since, moreover, a
substantial part of extraordinary charges was attributable to the
German market, the segment result declined from 68.3 million euro
the previous year to 1.0 million euro.

Thomas Cook U.K. generated a segment result of 46.3 million euro,
compared with 87.2 million euro the previous year. Nevertheless,
the segment result improved considerably on a comparable basis,
as Thomas Cook U.K. had only been included in the consolidated
statements the previous financial year on April 1, 2001, thereby
excluding the characteristically less profitable winter business
in the financial figures. The growth in earnings was achieved
thanks to the extensive Business Transformation Program, which
resulted in a 17 percent reduction in flight capacities, a
consolidation of the divisions and the closing of 11 local
operations. Furthermore, the staff size was reduced by
approximately 2,500.

The segment results of the sales markets in Western and Eastern
Europe increased by nearly 30 percent to 47.9 million euro. This
development reflected several aspects: considerable quantity
growth via a successful product portfolio in the Netherlands; a
profit margin-oriented strategy in the Belgian market; and strong
market successes in Eastern Europe, in particular in the
Hungarian market.

The non-European markets of India, Canada and Egypt, which
generated a total of 6.7 million euro, again realized quite a
favorable segment result, compared with a deficit of 2.6 million
euro the previous year. The Thomas Cook hotels as well as
incoming agencies in-resort also substantially increased their
contributions before one-time effects, with the segment result
increasing thereby from 18.0 million euro the previous year to
29.0 million euro.

Scheduled Repayment of Debt made possible due to Excess of
Operating Cash Flow over Investments

Despite the negative consolidated result, the Group generated an
operating cash flow of 258.8 euro million during the financial
year. In order to maintain the Group's financial strength, the
capital expenditure program was limited to significant strategic
investments and thus a total of 224.2 million euro. This figure
compared with divestitures amounting to 47.3 million euro, which
included the sale of a Boeing 757-200.

The operating cash flow thereby covered not only net investments,
but it also enabled the repayment of the financial liabilities in
the planned amount of 109.3 million euro. The financial
liabilities had originated in the past from aircraft purchases
and the acquisition of Thomas Cook U.K.

Reduction in Number of Employees
As of October 31, 2002, Thomas Cook AG had a total of 27,975
employees - 2.0 percent less than the same date the previous
year. Adjusted for the 881 employees of the companies included in
the financial figures for the first time as of October 31, 2002
(the travel agency chain Broere Reizen, Aldiana Sarigerme and
Thomas Cook Airlines Belgium), the decline amounted to 5.1
percent. The personnel measures were primarily a result of the
group-wide Triple T program as well as the nearly completed
integration of Thomas Cook UK. There were 27,776 employees on
average for the year, compared with 28,388 the previous year.


Thomas Cook AG is one of the world's leading leisure groups. Its
shareholders are Deutsche Lufthansa AG and KarstadtQuelle AG,
each holding a 50 percent stake. The Group encompasses 30 tour
operator brands, around 3,600 travel agencies, 76,000 controlled
beds and a fleet of 86 aircraft in five holiday airlines. In the
2001/2002 financial year, the Group generated more than eight
billion euro in revenue with a workforce of 28,000 and total
guests numbering in excess of 13 million.

CONTACT:  THOMAS COOK AG
          Corporate Communications
          Phone: ++49(0)6171 / 65-1700
          Fax: ++49(0)6171 / 65-1060
          Home Page: http://www.thomascook.info


TXU EUROPE: Fitch Rates TXU Energy's $1.25B Senior Notes 'BBB'
--------------------------------------------------------------
(This is an amended version of a press release issued Thursday,
containing revised information on the $1.25 billion, not $500
million, 'BBB'-rated senior notes.)

Fitch Ratings assigns a 'BBB' rating to TXU Energy Company LLC's
(TXU Energy) $1.25 billion senior notes. Affirmed are TXU
Energy's 'BBB' rating on outstanding senior unsecured bonds
(including pollution control bonds issued through the Trinity
River Authority, Brazos River Authority, and Sabine River
Authority), and the short-term rating of 'F3'. Also affirmed are
TXU Corp's (TXU) ratings of 'BBB-', 'BB+', for its senior notes,
and preference stock, respectively and its short-term rating of
'F3'. The Rating Outlook on all ratings is Stable. Proceeds will
be used to paydown inter-company loans and for general corporate
purposes. The notes are expected to price this week with Lehman
Brothers, and Salomon Smith Barney as joint lead managers.

The rating reflects TXU Energy's capital structure of
approximately 2.83 times (x) net debt-to-EBITDA, sufficient
liquidity to meet refinancing needs, solid cash flow interest
coverage of 6.7x, and a currently low retail churn ratio in
Texas. However, the rating also takes into account Fitch's view
that currently high margins earned by retail power suppliers in
Texas are likely to moderate over time if price competition
becomes more prevalent in that market, though this is not an
immediate concern. An additional concern is the current over-
supply of generation in Texas that has placed pressure on the
energy spot market and has limited the profitability of TXU
Energy's favorable generation portfolio.

TXU's ratings and Stable Outlook takes into account the existence
of sufficient liquidity to meet expected company wide refinancing
and potential collateral requirements, as well as a recent
favorable settlement, with parties who had appealed a Public
Utilities Commission of Texas order approving TXU regulatory
settlement plan, that should pave the way for Oncor Electric
Delivery Co. to issue securitization bonds (totaling $1.3
billion). The Stable Outlook for TXU also factors in Fitch's view
that TXU will not have a material liability for TXU Europe
obligations (the obligations of TXU Europe are currently rated
'D').

Factors that could result in higher future ratings for TXU and
its affiliates are: the TXU group's ability to reduce
consolidated debt and leverage measures during 2003-2004;
sustained improvement in operating performance of TXU Gas and TXU
Australia; and stable operating performance and margins
continuing at TXU Energy despite the constrained credit and
business environment. Ratings could be lowered from the current
levels in the event of substantial, unanticipated erosion in TXU
Energy's margins, possibly as a result of more aggressive price
competition evolving in the retail supply market, or an
unexpected liability for material obligations of TXU Europe.


WESTON MEDICAL: Administrators Puts Business Up for Sale
--------------------------------------------------------
The joint administrators offer for sale, as a going concern, the
business and assets of a business engaged in the development of a
needle free, injection system for the pharmaceutical and biotech
industry.

The principal features include: drug delivery company developing
"intraject" - a needle free, liquid injection system; an
innovative technology platform with strong IPR protection;
pProduct applicability across a wide range of pharmaceutical
formulations; a product that has already had over cGBP50 million
of investment and development expenditure and is currently at a
crucial stage of testing; strong relationships with a wide range
of licensing partners, including large pharmaceutical groups and
biotech companies; and exclusive, royalty bearing license
agreements

CONTACT:  KPMG CORPORATE RECOVERY
          Aquis Court, 31 Fishpool Street
          St Albans AL3 4RF
          Phone: 01727 733122
          Fax: 01727 733128
          Contact: Irvin Cohen
          E-mail: irvin.cohen.kpmg.co.uk


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

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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Kimberly
MacAdam, Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee
Gonzales, Editors.

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

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