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        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

             Monday, April 28, 2003, Vol. 4, No. 82

                            Headlines


C Z E C H   R E P U B L I C

UNION BANKA: Lawsuit Against CNB Rejected by Arbitration Court
UNION BANKA: Suspects in Bank Chairman's Abduction Arrested


F I N L A N D

BENEFON OYJ: Applies for Statutory Corporate Re-organization


F R A N C E

ALSTOM SA: Unions Expect Job Cuts Announcement at Meeting
RHODIA SA: Senior Managers Issue Stand on New Business Model


G E R M A N Y

BAYER AG: Bayer Polymers, PolyOne Form Joint Venture
DEUTSCHE TELEKOM: Antennae Unit Attracts Leading Vulture Firms
GERLING-KONZERN: It's Not Risky to Deal with Firm, Says Client
HVB GROUP: Undecided on Unit Sale; Signal Iduna Interested
INFINEON TECHNOLOGIES: Remains Mum on Hynix Punitive Tariff

KIRCHMEDIA GMBH: Saban's Bid for ProSiebenSat, Film Library OK'd


H U N G A R Y

POSTABANK: K&H Bank Considers Acquisition of Business


I T A L Y

TELECOM ITALIA: Deminor Threatens Suit to Block Olivetti Merger
TELECOM ITALIA: Merger Terms "Reasonable," Says Deloitte


L U X E M B O U R G

MILLICOM INTERNATIONAL: Announces Results For First Quarter


N E T H E R L A N D S

AEGON: May Hire Morgan Stanley For U.S. Subsidiary Sale
KONINKLIJKE AHOLD: Declines to Comment on Tesco Takeover Rumors
KONINKLIJKE AHOLD: Faces Class Action in New York
KONINKLIJKE AHOLD: Chitwood & Harley Files Securities Suit in US


N O R W A Y

PETROLEUM GEO-SERVICES: Announces Steps To Further Reduce Costs


P O L A N D

ELEKTRIM S.A.: Receives Partial Award From Arbitral Tribunal
NETIA HOLDINGS: Amends Prospectus Prepared Under Polish Law


S P A I N

AVANZIT SA: Creditor Banks Stand in the Way of Turnaround Plan


U N I T E D   K I N G D O M

ABBEY NATIONAL: To Release Interim Result July 30
ARBRE ENERGY: Indian Businessman Buys Firm Out of Liquidation
AUSTIN REED: Founder's Grandson Will Bid Despite Deadline Expiry
BRITISH AIRWAYS: Faces Second Lawsuit Over Flight BA 149
BULLOUGH PLC: Issues Chairman's Statement at AGM

CLM BUILDING: Joint Administrator Offer Business for Sale
CORUS GROUP: Shareholders Urged to Reject Proposed Executive Pay
CORUS GROUP: There's no Truth to Rumored 12,000-Job Cut
EGG PLC: Presents Q1 Financial Results and New Business Figures
IMPERIAL CHEMICAL: Faces Shareholders Securities Class Action

MARCONI PLC: To Hold Creditors Meeting April 25
PIZZAEXPRESS PLC: Venice Bidder Offer Extended To May 9
SOMERFIELD PLC: Analysts Expect Lovering, McKenzie to Up Bid

     -  -  -  -  -  -  -  -

===========================
C Z E C H   R E P U B L I C
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UNION BANKA: Lawsuit Against CNB Rejected by Arbitration Court
--------------------------------------------------------------
The lawsuit filed by Ostrava-based Union Banka (UB) against
Czech National Bank (CNB) has been turned down by an arbitration
court, according to CNB governor Zdenek Tuma.

Mr. Tuma said the arbitration court denied, to the full extent,
UB's claim of Kc1.75 billion from the central bank for the
previous takeover of bank Skala.  Effectively, UB cannot take
any remedial measures against the verdict.

The arbitration proceedings at the court of the Economic and
Agricultural Chambers had been repeatedly postponed.  CNB had
rejected UB's claim since the very beginning since both sides
during a composition agreement in 1999 had agreed that neither
of the parties could demand any additional compensation.

UB closed down on February 21 due to insufficient liquidity.
Its trouble stemmed from an unmanageable expansion when it took
over struggling financial houses in mid-1990.  A restructuring
plan was submitted on March 3, but was later rejected by the
Finance Ministry.

The bank is now in danger of losing its license, since its
balance can only deteriorate due to the arbitration.  UB will
have to deduct the money.  A previous verdict once prompted CNB
to withdraw UB's license.  The Ostrava-based bank, however,
appealed against the decision.  The CNB is expected to make a
final verdict probably next week against which an appeal cannot
be made.

CONTACT:  UNION BANKA
          ul. 30 dubna c. 35
          70200 Ostrava
          Phone: 596108111
          Fax: 596120134
          Home Page: http://www.union.cz
          E-mail: union@union.cz


UNION BANKA: Suspects in Bank Chairman's Abduction Arrested
-----------------------------------------------------------
Three men suspected of kidnapping Giuseppi Roselli, chairman of
Union Group, the parent of insolvent Union Banka, are now in
police custody awaiting trial, The Prague Post said last week.

Jaroslav Starka, president of top-flight soccer league club,
Marila Pribram, the paper said, his bodyguard, Zdenek Karnos,
and Pribram-based entrepreneur, Roman Kolar, make up the three-
men crew who allegedly abducted Mr. Roselli on April 7.

Lawyer Antonin Janak, who represents Mr. Kolar, claims however
that Mr. Roselli's kidnapping was faked.  "Roselli really was in
Starka's cottage, but of his own will.  In fact, he was playing
cards there with his bodyguard."

Mr. Janak claims the reason why Mr. Roselli hid at Mr. Starka's
house was that he did not want to attend and vote at an
extraordinary general meeting of Union Banka.  The police,
however, have found no proof that Mr. Roselli staged the
incident.

According to police reports, two armed and masked men stopped
Mr. Roselli's car in the center of Prague and forced his
bodyguard to drive out of the city.  After arriving at their
destination, the men threatened to kill Mr. Roselli and forced
him to sign up to two dozen sheets of paper.  The next morning
they released the bodyguard but held Mr. Roselli, who turned
himself in to the police that evening, the paper said.

The bank is currently seeking approval to restructure its
operations in partnership with a Goldman Sachs-led consortium.
Union Banka acting Managing Director Petr Votoupal told The
Prague Post the bank was considering selling its chain of
branches and offices to another bank.


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


BENEFON OYJ: Applies for Statutory Corporate Re-organization
------------------------------------------------------------
Benefon has applied for statutory corporate re-organization and
started an industrial co-operation procedure for cost-savings.
The reader is advised to give a special notice to the following
chapter regarding implemented measures due to the financial
state of the Company.

The Board of Benefon has decided to apply for statutory
corporate re-organization according to the Finnish corporate re-
organization act and filed corresponding application to the
court of first instance in Turku. Decision to apply for re-
organization was made after negotiating with company's main
creditors. Main creditors of the company see re-organization as
a beneficial solution for the company.

The financing arrangements of Benefon necessitated by the
financial situation of the company have not proceeded as
planned. Therefore, and for securing the pre-requisites of
continuing operations of the core business of Benefon and the
related debt re-structuring, the Board decided to file an
application for statutory corporate re-organization. With the
same, the Board, according to the Finnish corporate act decided
to submit the matter for the decision of the ordinary
shareholders' meeting to be summoned soonest.

The company will report on the matter with the progress of the
processing of the application.

Further, related with the decided re-organization application,
the Board has decided to start an industrial co-operation
procedure for implementation of the cost cutting needed in the
re-organization program. The started industrial procedure
excludes R&D functions.

Benefon Oyj has published its non-audited annual accounts for
accounting year 2002 on its bulletin of February 11, 2002. The
Board of Directors of company have approved the annual accounts
today and company's auditors have delivered the audit report.
The Board of Directors has approved the annual accounts made on
an on-going concern principle. This assumption is not valid at
the moment and the Board has undertaken measures for correcting
the situation and reorganizing the company in order to secure
continuity of company's operations. Since the audit report
contains certain statements concerning company's situation and
financial position Benefon has decided to attach the audit
report to this bulletin in its entirety. Because of the
situation the Board of Directors will, if needed, draft new
annual accounts to be proposed for confirmation by the
shareholders' meeting.

AUDIT REPORT CONCERNING ANNUAL ACCOUNT OF ACCOUNTING YEAR 2002
(in-official translation):

To shareholders of Benefon Oyj

We have audited the book-keeping, financial statements and
administration of Benefon Oyj from fiscal year 2002. The
financial statement prepared by the Board and the managing
director consists of the Board report and the result report,
balance sheet and the auxiliary information of the group and the
mother company. Based on our audit, we herewith make a statement
about the financial statement and administration.

The audit has been performed according to good auditing
practises in an appropriate manner to verify that there are no
essential errors or omissions and to check for the legality of
the actions by the Board and the managing director.

The financial statement on 31.12.2002 and the interim reports
made public in FY 2002 have been made with the assumption of a
going concern, which has been central in assessing the book
value of especially the R&D activations and the inventory. With
the delay in the financing solution, the financing and the
liquidity situation of the company in our opinion at the moment
does no more give basis to make the financial statements on this
principle.

As the going concern principle cannot be applied, the assets
should be valued at their realisation value and the activations
should be booked as costs. As a result, the net assets of the
company does not meet with the requirements set by the
companies' act, and the provisions of chapter 13 of the act will
become applicable.

As our statement we present that the financial statements have
not been made according to the bookkeeping act and to other
pertinent regulations and rules. It does not give correct and
sufficient information about the financial situation of the
group and the mother company for this reason. The financial
statements of the group and the mother company cannot be
confirmed.

The members of the Board and the managing director can be
provided with discharge of their responsibilities from the
fiscal year 2002 we have audited The proposal of the Board about
the treatment of the result in consideration of the aspects
brought forth above is according to the companies act.

CONTACT:  BENEFON OYJ
          Jorma Nieminen, Chairman of the Board


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


ALSTOM SA: Unions Expect Job Cuts Announcement at Meeting
---------------------------------------------------------
Troubled French engineering company Alstom SA was expected to
present unions with job-cut plans during a meeting last Friday
attended by the select committee of Alstom's European works
council and Alstom management.

According Dow Jones Newswires, citing union sources, the job
cuts are part of a EUR300 million restructuring plan announced
in March.  Unions fear up to 10,000 jobs could be lost.

A spokesman from Alstom confirmed that restructuring is on the
agenda of the meeting Friday.  He also said he "couldn't rule
out" that job cuts would be part of the restructuring plan.

Troubles in Alstom started when Renaissance Cruises Inc., its
biggest customer, filed for Chapter 11 protection.  The latter
suffered a sharp fall in demand for cruises after the September
11 terrorist attack in the U.S.

Earlier this month Alstom pre-announced a EUR1.3 billion net
loss for 2002, along with an admission that Alstom would not
achieve financial targets set out in its March 2002 "Restore
Value" restructuring plans.  Losses last year are blamed on the
provisions taken to cover technical faults with some gas
turbines sold by ABB Ltd. that were later acquired by Alstom.

Alstom is currently disposing assets to offset an expected
EUR1.3 billion loss in the year to March 2003.  It was able to
secure credit lines of EUR1 billion to stave off a crisis in the
short term, but it is reliant on the capital increase working.


RHODIA SA: Senior Managers Issue Stand on New Business Model
------------------------------------------------------------
We, the 120 members of Rhodia senior management, have invested
an average of one year's salary in Rhodia shares.  We want to
state our position regarding Rhodia's evolution when it is
considered at Rhodia's annual shareholders meeting.

Rhodia is committed to a strategy of creating value based on a
focus on our key markets, close relationship with our customers
and advanced through cross-fertilization of our technologies. We
are convinced that this business model will enable Rhodia to
create more value than through the mere addition of its separate
parts.

In an extremely difficult economic environment, Rhodia 2002
results improved significantly, particularly through the
creation of 300 MEUR in free cash flow, the achievement of a 12%
ratio of EBITDA / sales, and the launching of 70 new products.
We have improved our fundamentals, in terms of innovation,
bringing added value to our customers, industrial efficiency,
and safety, which will ensure the Group's success for the
future.

The Group has reduced its debt by 1/3 in 2 years. This must
continue, but without threatening Rhodia's business model. We
therefore would consider any strategy based on a breaking up of
the Group as reckless and focused only on short-term gain, and
would not support it.

As senior managers,

-- we confirm our personal commitment on behalf of Rhodia and
for the efficient implementation of its strategy

-- we reject the campaign of attack that has extremely negative
effects on the Company,

-- we strongly recommend the rejection of any resolution which
has no objective other than to undercut the implementation of
this strategy,

-- we expect a Board of Directors that can focus totally on
ensuring the success and sustain the Group's progress.

CONTACT: Philippe Cohet
         Phone: 06 86 26 05 87


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


BAYER AG: Bayer Polymers, PolyOne Form Joint Venture
----------------------------------------------------
Bayer Polymers LLC and the PolyOne Corporation have formed a
Joint Venture for the development, production and marketing of
polyurethane systems in the USA and Canada. Each company will
own 50 percent of the new joint venture, which will be known as
BayOne Urethane Systems LLC. The joint venture will employ
approximately 50 employees and is scheduled to become
operational in June 2003. It will be headquartered in St. Louis,
Missouri.

Systems houses provide ready-to-use, pre-formulated polyurethane
raw materials systems - isocyanates and polyol blends - which
are used in industry for specific, custom-formulated specialty
applications, notably in the automotive and construction
industries, in the thermal insulation of refrigerating
appliances and in the furnishings and footwear industries. Our
local presence will enable us to supply our country and client-
specific solutions rapidly and will considerably enhance
customer loyalty.

"With this new joint venture, Bayer Polymers and PolyOne will be
able to capture new markets. The new company will leverage Bayer
Polymers' strengths in technology and raw materials with the
regional manufacturing capabilities and technical service know-
how of PolyOne. This will enable us to provide superior products
and service to our customers," explains Peter Vanacker, Senior
Vice President and Head of Polymer Solutions at Bayer Polymers
Americas Region.

"By combining the portfolios of Bayer Polymers and PolyOne,
BayOne Urethane Systems, LLC will be able to offer clear
benefits to a large customer base," added Denis Belzile, Vice
President and Head of the Specialty Resins and Formulators Group
at PolyOne.

The Bayer sites that are to be involved in the joint venture
include the research and development facilities and sales
offices of the Bayer Corporation in Pittsburgh, Pennsylvania,
the production and laboratory facilities in New Martinsville,
West Virginia and the research and technical services facilities
in Dalton, Georgia.

PolyOne's sites in St. Louis (headquarters of the joint venture,
production and laboratory facilities), Commerce, California and
Sussex, Wisconsin (production and laboratory facilities) and
Kennesaw, Georgia (laboratory facilities and technical services)
will also be involved in the joint venture.


DEUTSCHE TELEKOM: Antennae Unit Attracts Leading Vulture Firms
--------------------------------------------------------------
Buyout firms have once more flocked to the offices of Deutsche
Telekom to bid for its antennae unit, said to be worth as much
as US$2.2 billion, Bloomberg said late last week.

The report says Carlyle Group Inc., along with British partner
Apax Partners & Co.; and Permira, which has teamed up with
Providence Equity Partners Inc., are among those eyeing the
unit.  The sale of the unit, which has over 18,000 phone and
television antennae, is part of the German telco's program to
cut debt from EUR61 billion to EUR50 billion this year.

The other likely bidders, according to people familiar with the
situation, are Charterhouse Development Capital Ltd., a U.K.
buyout firm, and U.S. rivals Blackstone Group LP and Kohlberg
Kravis Roberts & Co.  Spokesmen for Apax, Permira, Carlyle,
Providence and Deutsche Telekom declined to comment when
contacted by Bloomberg.  Andrew Walton, a spokesman for Morgan
Stanley, which is advising Deutsche Telekom, declined to comment
as well.

Bloomberg says the investment bank has yet to send sale
prospectuses to potential buyers, and Bonn-based Deutsche
Telekom hasn't yet decided how much of the business it will
sell.

The buyout firms that are eyeing the unit are among those that
figured in huge deals recently, according to Bloomberg.  Earlier
this year, Apax and Providence teamed up to buy six cable-
television networks from Deutsche Telekom for as much as EUR2.1
billion.

Providence and Carlyle, on the other hand, joined forces last
year to buy France Telecom's Dutch cable television unit,
Casema, for EUR665 million.  Apax also partnered with Hicks,
Muse, Tate & Furst Inc. in 2001 to buy BT Group Plc's yellow
pages business for GBP2.1 billion, Bloomberg said.

Bloomberg says buyout firms use funds raised from investors and
bank loans to acquire companies and then try to sell them within
five years for a multiple of the purchase price.  European
takeovers by private equity firms more than doubled to US$47
billion last year, as companies sold businesses to repay debt,
the news agency said.


GERLING-KONZERN: It's Not Risky to Deal with Firm, Says Client
--------------------------------------------------------------
Despite its widely known financial difficulties, German insurer
Gerling-Konzern Allgemeine Versicherungs AG has still retained
MLP AG as client, Dow Jones Newswires said recently.

The German financial services adviser, in a bid to rally support
for Gerling, said last week it finds no negative effects in
using Gerling's ailing reinsurance unit as re-insurer for its
life policies.

"There will clearly be no effect on the balance sheet," MLP
Chief Financial Officer Uwe Schroeder-Wildberg was quoted by Dow
Jones as saying during an analyst conference in Frankfurt.

For more than a year now, Gerling has been unable to find a new
financial backer to fill the void that will be vacated by
Deutsche Bank, which owns 34.5% of the group.  Although private
owner Rolf Gerling owns the remaining 65.5%, he is not expected
to meet the group's long-term financial obligations.  Thus, it
is imperative to look for a more stable institutional investor.

The group had previously held talks with Haftpflichtverband der
Deutschen Industrie VVaG on the possible sale of its primary
insurance business, but it ended without result earlier this
month.

In a separate deal involving the sale of its Global Re unit to
Globale Management GmbH, owned by investor Achim Kann, the
German financial services authority, BAFin, blocked the deal.
Gerling is now appealing the ruling.

Gerling closed its reinsurance operations to new business after
suffering losses of more than EUR500 million in 2001, largely as
a result of Sept. 11 claims and provisions at its U.S. unit, the
newswire said.


HVB GROUP: Undecided on Unit Sale; Signal Iduna Interested
----------------------------------------------------------
Indecision plagued the Annual General Meeting of losing German
HVB Group AG, as shareholders considered whether to sell the 75%
stake in Vereins- und Westbank AG (V+W).

V+W chairman Stephan Schueller confirmed that no decision has
yet been reached on the matter.

Two possible candidates for the market are W+W and Norisbank AG.
Plans to sell a 25% stake in Bank Austria Creditanstalt via an
IPO have already been announced.

Meanwhile, German insurer Signal Iduna has made known that it
wants a seat on the supervisory board of HVB Group's V+W unit.
Handelsblatt reported the move is a first step to launching a
takeover, with Signal currently holding a 4% stake in the bank.

Hamburger Sparkasse (Haspa) and Assicurazioni Generali SpA's
German unit, AMB Generali AG, have also been reported to be
interested in acquiring Vereins- und Westbank.


INFINEON TECHNOLOGIES: Remains Mum on Hynix Punitive Tariff
-----------------------------------------------------------
Troubled Infineon Technologies AG declined to comment on
speculations circulating South Korean press that the EU has
imposed a 33% preliminary punitive tariff on imports of DRAM
memory chips from Hynix Semiconductor Inc.

A spokesman for the German chipmaker said they would not make a
statement until the EU confirms the rumored fine.  It is known
that the EU ruling follows the US Department of Commerce's
preliminary decision in early April to impose up to 57.37% in
tariffs on DRAM imports from Hynix Semiconductor.

Infineon and Micron Technology Inc. have reportedly argued that
Hynix had been given an unfair competitive advantage through
state subsidies in the form of a bank-led bailout package;
including debt rollovers and debt-for-equity swaps and some tax
benefits.

As a consequence, Infineon reported its eighth consecutive
quarterly loss on the back of the sustained weakness of memory
chip prices.


KIRCHMEDIA GMBH: Saban's Bid for ProSiebenSat, Film Library OK'd
----------------------------------------------------------------
Haim Saban's bid to takeover control of Germany's leading TV
broadcaster, ProSiebenSat.1, and KirchMedia's film library has
already cleared the first of two regulatory hurdles, Reuters
said late last week.

The German Cartel Office, in a statement, said it did not expect
the deal to lead to market domination.  The U.S. billionaire has
no other assets in the German TV industry.  The bid will next
pass through Germany's media regulator, the Commission for
Investigation of Concentration in the Media Industry.  It is not
expected to meet any hitches there, as well, Reuters says.

Mr. Saban's purchase of a controlling stake in ProSiebenSat and
Europe's largest film library should be concluded by the middle
of June, says the newswire.


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


POSTABANK: K&H Bank Considers Acquisition of Business
-----------------------------------------------------
State-owned Postabank Rt, recently salvaged by the Government
after posting HUF70 billion in losses (US$305 million), or a
sixth of its fund, during a run on the bank in February 1997, is
seriously being considered for acquisition by K&H Bank Rt.

K&H CEO Tibor Rejto confirmed that they are interested to
acquire Postabank for a fair price, although purchase is not
regarded as vital for K&H.  He said the state-owned bank is a
good target for banks wishing to strengthen their retail side
and small business services.

TCR-Europe recently reported that the investigation into the
consolidation of Postabank has been successfully completed by
the ASZ.  The conclusion was contrary to earlier charges, as it
was revealed that the roughly Ft174.5 billion that various
Governments devoted to salvaging the State-owned bank was spent
appropriately and effectively.

The bank is once again operating prudently, with doubtful and
high-risk loans having been moved to workout Kft and Reorg-
Apports' portfolio.


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


TELECOM ITALIA: Deminor Threatens Suit to Block Olivetti Merger
---------------------------------------------------------------
Deminor, the adviser of minority shareholders, will scrutinize
every document that supports Deloitte & Touche's opinion that
the merger terms of Telecom Italia and Olivetti SpA are fair.

An auditor's report prepared by Ernst & Young is the latest
document Deminor has rejected as basis in concluding that the
merger is advantageous.

"Ernst & Young's 'auditors report' is not an independent
fairness opinion. Its purpose is limited to assessing whether
the valuation methods are appropriate from a theoretical point
of view," Deminor was quoted by AFX News as saying recently.

"The report does not address the fairness of the valuation
obtained nor does it state whether and why the transaction at
the conditions proposed is in the interest of Telecom Italia and
its minority shareholders," it said.

"The only document dealing with fairness issues seems to be
Goldman Sachs' 'fairness opinion' to Telecom Italia's board.
This document has not been made available to the public,"
Deminor said.

Still, the Goldman Sachs opinion cannot be considered impartial
because this firm was appointed by Telecom Italia and not by its
independent directors, Deminor said.  The adviser also
reiterated earlier queries on the valuation of Olivetti at
market value, and including its premium to net asset value,
after publication of detailed valuation documents.

"It should be pointed out that no holding (company) discount
seems to have been applied to Olivetti.  It is uncommon to value
a holding company without taking into account a discount,"
Deminor said.

According to AFX News, a discount of 10-15% was used when STET
merged with Telecom Italia in previous years.  Deminor claims
there are no documents explaining the valuation of Olivetti's
tax asset or details on discounted cashflow valuation of Telecom
Italia wire-line and Telecom Italia Mobile SpA.

Deminor vows to challenge the deal at all cost, threatening to
take legal action, if necessary.  Initially, the adviser plans
to call a meeting of Telecom Italia savings shareholders, of
which Deminor represents 25%, to vote on the merger, as well as
making filings to Italy and US regulators.


TELECOM ITALIA: Merger Terms "Reasonable," Says Deloitte
--------------------------------------------------------
Court-appointed independent assessor, Deloitte & Touche,
declared Wednesday the terms of the Telecom Italia-Olivetti
merger "reasonable," prompting the opposition to intensify their
campaign against the deal.

While Telecom Italia took the assessment as a vindication,
Brussels-based shareholder activist group, Deminor, vowed to
push for a vote on the deal when it calls for a special meeting
of savings-class shareholders.  The group claims to be
representing more than a quarter of Telecom Italia's "savings-
class" shareholders.

The objection to the deal is largely based on the impression
that the terms are disadvantageous to minority shareholders.
Under the deal, Telecom Italia will swap seven Olivetti shares
for each of its shares.  To execute the swap, Olivetti will also
take on up to EUR9 billion (US$9.9 billion) in debt to satisfy a
legal requirement and pay cash to Olivetti shareholders who do
not want to become Telecom Italia shareholders.

Telecom Italia is banking on the merger to improve cashflow and
bond agency ratings.  For it to go through, two-thirds of
Telecom Italia shareholders must vote in favor during the
extraordinary meeting scheduled at the end of May.

Olivetti has EUR15 billion in net debt and owns 55% of Telecom
Italia ordinary voting stock.


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


MILLICOM INTERNATIONAL: Announces Results For First Quarter
-----------------------------------------------------------
-- EBITDA Margin of 50%*
-- 20% increase in EBITDA to $69.0m (Q1 02: $57.7m)*
-- 11% increase in revenue to $138.8m (Q1 02: $124.8m)*
-- 36% increase in quarterly EBITDA in Asia from Q1 2002*
-- 25% increase in quarterly revenue in Asia from Q1 2002*

International Cellular SA (Nasdaq Stock Market: MICC), the
global telecommunications investor, announces results for the
quarter ended March 31, 2003.

Financial summary for the quarters ended March 31, 2003 and 2002
                                March 31     March 31     Change
                                  2003         2002
Worldwide subscribers (i) *
- proportional cellular         2,962,603      2,369,603   25%
- gross cellular                4,248,714      3,331,533   28%

US$ `000
Revenues*                         138,793        124,783   11%
Operating profit before
depreciation and amortization,
EBITDA(ii)*                        68,988         57,700   20%
EBITDA margin*                        50%            46%    -
Profit (loss) before financing,
taxes and disposal of investments  74,147         14,053    -
Profit (loss) for the period       26,226        (26,340)   -
Basic and diluted earnings (loss)
per common share (US$)              1.61          (0.54)    -
Weighted average number of shares
(thousands)                        16,284         49,191    -

(i) Subscriber figures represent the worldwide total number of
subscribers of cellular systems in which MIC has an ownership
interest.
Subscriber figures do not include divested operations or the
subscribers of Tele2 AB, in which MIC has a 6.8% interest at
April 24, 2003.

(ii) EBITDA; operating profit before interest, taxation,
depreciation and amortization, is derived by deducting cost of
revenues, sales and marketing costs, and general and
administrative costs from revenues.

* Due to local issues in El Salvador, MIC has discontinued
consolidating El Salvador on a proportional basis with effect
from May 2001. All comparatives in this press release, other
than those noted in the appendices, exclude divested operations
and El Salvador in respect to subscribers and for financial
results, up to and including EBITDA.

Marc Beuls, MIC's President and Chief Executive Officer stated:
"MIC has reported another strong quarter with EBITDA of $69.0m,
an increase of 20% against the same period in 2002. In
particular the Asian market was growing at an exceptional rate
with revenues up by 25% and EBITDA increasing by 36%. In Africa
we saw the first signs of a turnaround producing an in crease in
EBITDA of 29%. The Group EBITDA margin moved up to 50% showing
how the cost reductions and the focus on core business that
started in 2002 are continuing to benefit MIC's financial
performance. In addition, total debt on our balance sheet has
been further reduced by $90.6m in the quarter or $288.3m
compared with the same period last year."

"Last week on April 16, MIC announced that it had received
unconditional commitments from approximately 67% of the holders
of its 13« 2006 notes to tender their notes in the ongoing
private exchange offer and consent solicitation, under certain
amended terms. The Offer is extended to May 2, 2003; if 85% of
the bondholders accept, the restructuring will be accepted and
this will give MIC a suitable capital structure for the
underlying business. We are excited at this prospect as it will
enable the management to focus on growing the mobile businesses,
which have some of the best prospects of any mobile businesses
in the world, and will enable management to deliver increased
value to shareholders."

FINANCIAL AND OPERATING SUMMARY
Subscriber growth:
-- An annual increase in worldwide gross cellular subscribers of
28% to 4,248,714 as at March 31, 2003
-- An annual increase in worldwide proportional cellular
subscribers of 25% to 2,962,603 as at March 31, 2003
-- In the first quarter of 2003 MIC added 245,803 net new gross
cellular subscribers
-- An annual increase in proportional prepaid subscribers of 34%
to 2,641,734 as at March 31, 2003

Financial highlights:
-- Revenue for the first quarter of 2003 was $138.8 million, an
increase of 11% from the first quarter of 2002
-- EBITDA increased by 20% in the first quarter of 2003 to $69.0
million, from $57.7 million for the first quarter of 2002
-- The Group EBITDA margin was 50% in the first quarter of 2003
increasing from 46% in the first quarter of 2002
--  Total cellular minutes increased by 6% for the three months
ended March 31, 2003 from the previous quarter with prepaid
minutes increasing by 12% in the same period

On January 21, 2003 MIC made an Exchange Offer and Consent
Solicitation to bondholders of the 13«% Senior Subordinated
Notes due 2006

On January 24, 2003 the Board proposed a reverse stock split of
the issued shares of the Company by exchanging three existing
shares of a par value of $2 each for one new share with a par
value of $6. The Extraordinary General Meeting to approve this
reverse stock split was held on February 17, 2003

In February 2003 MIC successfully completed the sale of its
Colombian operation, Celcaribe S.A., to Comcel S.A., a
subsidiary of America Movil. The net proceeds for MIC's interest
in the equity of Celcaribe S.A., were $9,876,000.

In the first quarter of 2003, MIC sold 44,129 B shares in Tele2
AB to Industrif”rvaltnings AB Kinnevik at market prices

During the quarter, total reported debt has been reduced by
$90,609,000, including the effect of the divestment of Colombia

Subsequent events:
-- On April 16, 2003 MIC announced that it had received
unconditional commitments from approximately 67% of the holders
of its 13«% Senior Subordinated Discount Notes due 2006 to
tender for MIC's ongoing private exchange offer and consent
solicitation under certain amended terms. Holders of the Old
Notes who tender their Old Notes will receive for each $1,000 of
Old Notes validly tendered $720 of Millicom's newly issued 11%
Senior Notes due 2006, or the "11% Notes", and $81.7 of
Millicom's newly issued 2% Senior Convertible PIK (payment in
kind) Notes due 2006, or the "2% Notes", both maturing June 1,
2006 (which, when issued, could result in a maximum dilution to
existing Millicom stockholders of approximately 30%, assuming no
issuance of additional 2% Notes in lieu of cash interest). The
11% Notes will have the right to receive semiannual amortization
payments due June 1, 2004, December 1, 2004, June 1, 2005 and
December 1, 2005. The 2% Notes will be convertible into
Millicom's common stock at a conversion price of $10.75 per
share (taking into consideration Millicom's recent reverse stock
split). At maturity or upon redemption, Millicom will have the
right to, at its option, in whole or in part, pay the then
outstanding principal amount of the 2% Notes, plus accrued and
unpaid interest thereon, in cash or in shares of its common
stock. The expiration date for the exchange offer and consent
solicitation is extended until May 2, 2003.

REVIEW OF OPERATIONS SUBSCRIBER GROWTH*
At March 31 2003, MIC's worldwide cellular subscriber base
increased by 28% to 4,248,714 cellular subscribers from
3,331,533 at March 31, 2002. Particularly significant percentage
increases were recorded in Ghana, Cambodia, Sri Lanka and
Vietnam. MIC's proportional cellular subscriber base increased
by 25% to 2,962,603 at March 31, 2003, from 2,369,603 at March
31, 2002. Within the 2,962,603 proportional cellular subscribers
reported at the end of the first quarter, 2,641,734 were pre-
paid customers, representing a 34% increase on the 1,976,407
proportional prepaid subscribers recorded at the end of March
2002. Pre-paid subscribers currently represent 89% of gross
reported proportional cellular subscribers.

FINANCIAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2003*
Total revenues for the three months ended March 31, 2003 were
$138.8 million, an increase of 11% from the first quarter of
2002. MIC's operations in Asia recorded revenue growth of 25% on
an annualized basis, with Vietnam producing growth of 35% from
the first quarter of 2002. Revenues for Africa for the first
quarter of 2003, increased by 24% to $14.8 million from the same
period last year.

The volatile economic situation in South America is reflected in
the 6% decrease in first quarter revenues for Latin America
relative to 2002, although the Central American market continued
to perform strongly with Guatemala producing a revenue increase
of 22% from the first quarter of 2002. Using the exchange rates
for 2002, Latin America would have recorded revenue growth of
over 8%.

EBITDA for the three months ended March 31, 2003 was $69.0
million, an increase of 20% from March 31, 2002. EBITDA for Asia
increased by 36% from the first quarter of 2002 to $37.6
million, with particularly strong increases produced by Pakcom,
Sri Lanka and Vietnam, which recorded growth from the first
quarter of 2002 of 55%, 46% and 40% respectively. The strong
EBITDA growth in the region as a whole reflects the buoyancy of
this market and the impact of stringent cost cutting measures.
MIC Africa produced EBITDA growth of 29% from the first quarter
of 2002 to $5.7 million.

The positive impact of cost cutting in Latin America was
reflected in the EBITDA for the region, which increased slightly
from the first quarter of 2002 to $24.9 million, despite the
adverse currency movement, with margins increasing from 44% to
47%. At constant 2002 exhange rates, EBITDA for Latin America
would have increased by 14%. The main contributors to EBITDA
increase were Guatemala and Bolivia, which recorded increases of
37% and 26% respectively from the first quarter of 2002.

CORPORATE LIQUIDITY AND DEBT INDICATORS
                                        At March 31, 2003
Cash at the corporate level                 $m 44.0
Cash upstreamed from operations             $m 20.8
Toronto Dominion debt outstanding           $m 56.4
Tele2 shares pledged to Toronto Dominion    6,184,293
Total Tele2 shares                          9,968,414

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. The Group's
cellular operations have a combined population under license
(excluding Tele2) of approximately 382 million people. In
addition, MIC provides high-speed wireless data services in five
countries. MIC 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 17.7 million customers in 22 countries. The Company's shares
are traded on the Luxembourg Bourse and the Nasdaq Stock Market
under the symbol MICC.

To see financials:
http://bankrupt.com/misc/millicom_international.pdf

CONTACT:  MILLICOM INTERNATIONAL CELLULAR S.A., LUXEMBURG
          Marc Beuls, President and Chief Executive Officer
          Phone: +352 27 759 101
           Jim Millstein, Lazard, New York
           Phone: +1 212 632 6000

           Peter Warner
           Daniel Bordessa
           Cyrus Kapadia
           Lazard, London
           Telephone: +44 20 7588 2721

           Andrew Best, Investor Relations
           Phone: +44 20 7321 5022
           Shared Value Ltd, London
           Homepage: http://www.millicom.com


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


AEGON: May Hire Morgan Stanley For U.S. Subsidiary Sale
-------------------------------------------------------
Dutch insurer, Aegon, may hire Morgan Stanley to advise it on
the sale of its U.S. subsidiary, Transamerica Finance
Corporation (TFC), said Reuters, citing a source privy to the
matter.

Morgan Stanley, however, has not yet received a formal mandate,
but is reportedly "lined up for the last two months."  In the
meantime, both Aegon and Morgan Stanley had not confirmed the
rumored appointment.  The Aegon Association, controlling
shareholder of the company, had previously availed of Morgan
Stanley's services in selling 350 million shares.

Aegon, which posted a 35 percent drop in its 2002 net profit,
indicated that it is willing to sell TFC. The Company had
earlier slashed its dividend payment, said the report.  Aegon
Chief Financial Officer Joseph Streppel recently told
shareholders at a meeting that the Company is willing to sell
TFC, "but not just at any price."


KONINKLIJKE AHOLD: Declines to Comment on Tesco Takeover Rumors
---------------------------------------------------------------
Royal Ahold, which ran into financial trouble in February, has
refused to comment on rumors that it is about to be taken over.
Speculations have spread that UK supermarket chain, Tesco PLC,
is looking at the possibility of taking over the Dutch retailer,
following the disclosure of accounting irregularities at its US
Foodservice division.

Last month, Ahold's interim Chairman Henny de Ruiter rebuffed
suggestions of takeover, indicating that he doesn't believe it
is the "only means of rescuing Ahold".

Ahold's shares fell over 65% since the discovery of the more
than US$500 million profits overstatement in its US Foodservice
unit.  The controversy wiped some EUR4 billion off its market
value and forced the downgrade of its bonds to junk status.  The
latter made refinancing of some EUR12.3-billion (US$13.25
billion) debt more expensive.

Since then, reports have speculated that Tesco could make a move
on the retailer.  Ahold, however, can protect itself against a
hostile takeover by taking a poison pill in the form of issuing
shares to a friendly entity.

Ahold granted an option to Stichting Ahold Continuiteit, or
Ahold Continuity Foundation, to buy cumulative preferred shares
up to the total value of all outstanding shares of its capital
stock.  This is provided for in Ahold's filing 20F with the
Securities and Exchange Commission, which says, "The option
agreement and the cumulative preferred share have certain anti-
takeover effects. The issuance of all authorized cumulative
preferred shares will cause substantial dilution of the
effective voting power of any shareholder, including a
shareholder that attempts to acquire us, and could have the
effect of delaying, deferring and preventing a change in our
control."

Meanwhile, TCR-Europe earlier cited company sources confirming
that Ahold is likely to seek a merger after it rids itself of
its present woes.

Source, however, said: "That will take a lot of time for wooing
and cooing but it is inevitable... Because the main source for
profits at a retailer is not just the number of clients you can
sell to, but the discounts you can extract from your suppliers."

CONTACT:  KONINKLIJKE AHOLD
          Ahold Corporate Communications
          Phone: +31.75.659.5720
          P.O. Box 3050 1500 HB
          Zaandam Netherlands
          Phone: +31 (0)75 659 57 20
          Fax: +31 (0)75 659 83 02
          Home Page: http://www.ahold.com


KONINKLIJKE AHOLD: Faces Class Action in New York
-------------------------------------------------
The Law Office of Kenneth A. Elan filed a class action against
Koninklijke Ahold N.V. (AHLN) and certain of its officers and
directors, in the United States District Court for the Southern
District of New York.

This suit is brought on behalf of all persons or entities, other
than defendants, who purchased Ahold securities between May 16,
2000 and February 21, 2003, inclusive (the "Class Period").

The complaint alleges that during the Class Period, the
defendants caused the release of false and misleading statements
regarding the Company's financial results, causing Ahold's
securities to trade at artificially inflated prices.

On February 24, 2003, before the market opened, the Company
announced significantly reduced earnings for the year ended
December 29, 2002. It also announced that (1) it would restate
its financial statements for the fiscal year 2001 and interim
results for 2002, and (2) during the fiscal 2002, year-end audit
by Deloitte Touche Tohmatsu ("Deloitte") significant accounting
irregularities were discovered in the recognition of income.
According to the Company, Ahold's operating earnings for 2001
and expected operating earnings for fiscal year 2002 have been
overstated by amounts exceeding $500 million. The accounting
irregularities relate to the early booking of promotional income
at U.S. Foodservice Inc. ("U.S. Foodservice), a wholly owned
subsidiary of Ahold.

In addition to the restatement in earnings related to U.S.
Foodservice, the Company also announced it would restate its
historical financial statements so as to proportionally
consolidate under Generally Accepted Accounting Principles
("GAAP") certain subsidiaries, which it partially owned.
Previously, the full results of these subsidiaries were
consolidated in Ahold's results with the minority share in
earnings and equity then deducted, during the relevant periods.
The consolidation of the full results inflated Ahold's reported
sales results.

As a result of the defendants' false and misleading statements
during the Class Period, the price of Ahold's securities was
artificially inflated throughout the Class Period. By way of
example, in reaction to the above announcements, the Company's
common shares price plummeted approximately 63% to close at EUR
3.59 on February 24, 2003. The news had similar affect on the
ADRs. The price of the ADRs declined from $10.69 to $4.16. The
price of Ahold's securities has not recovered.

Plaintiff seeks to recover damages on behalf of the proposed
Class and is represented by The Law Offices of Kenneth A. Elan.
If you are a member of the proposed Class, you may move the
court no later than April 28, 2003 to serve as a lead plaintiff
for the Class. In order to serve as a lead plaintiff, you must
meet certain legal requirements.

CONTACT:  Kenneth A. Elan, Esq. Law Offices of Kenneth A. Elan
          217 Broadway New York
          NY 10007
          Phone: 212-619-0261
          Fax: 212-385-2707
          Contact: Kenneth A. Elan, Esq.
          Phone: 212/619-0261
          Fax: 212/385-2707


KONINKLIJKE AHOLD: Chitwood & Harley Files Securities Suit in US
----------------------------------------------------------------
Chitwood & Harley LLP announces that it has filed the first
class action complaint on behalf of purchasers of securities of
KONINKLIJKE AHOLD N.V. d/b/a ROYAL AHOLD, Inc. (NYSE:AHO) from
March 10, 1998 through February 21, 2003, inclusive (the "Class
Period"). The suit was filed in the United States District Court
for the Southern District of New York under Civil Action Number
03CV2847. The suit is against AHOLD, certain of its officers and
directors, and its subsidiary, U.S. Foodservice, Inc.

During the Class Period, defendants issued many statements and
filed reports with the SEC, which depicted the Company's sales,
operating results, earnings, and financial performance. The
complaint alleges that these statements were materially false
and misleading because: (1) AHOLD had reported the full revenues
and operating results of several joint ventures in which the
company held non-controlling interests, in contravention of
applicable accounting rules; (2) AHOLD had significantly
overstated its operating earnings for its U.S. Foodservice
division. The complaint further alleges that the Company lacked
sufficient internal controls resulting in an inability to
determine the true financial condition of AHOLD, which led to
the value of the Company's sales, operating results, earnings,
and financial results being materially overstated at all
pertinent times.

On February 24, 2003, before the market opened for trading,
AHOLD announced that it discovered over $500 million in
"overstatements of income related to promotional allowance
programs," which will require the Company to restate its
previously-issued financial reports for fiscal years 2001 and
2002. On this day, the Company also announced that it would
restate its historical financial statements so as to
proportionally consolidated under GAAP ICA Ahold, Jeronimo
Martins Retail and Disco Ahold International Holdings and, for
the periods during which they were 50% owned, Bompreco and Paiz
Ahold. On the day of this disclosure, shares of AHOLD declined
over 60%, to close at $4.16 per share, on volume of more than 16
million shares traded, or nearly thirty times the average daily
volume. The market capitalization loss on this one day alone was
over $4 billion.

For more information about Chitwood & Harley, visit its website
at http://www.classlaw.comor contact Lauren Antonino at
1-888-873-3999.ext 6888 (toll-free), by e-mail at
lsa@classlaw.com  or at 1230 Peachtree Street, Suite 2300,
Atlanta, Georgia 30309.

CONTACT:  Chitwood & Harley, LLP
          Lauren Antonino
          (888) 873-3999 ext. 6888


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


PETROLEUM GEO-SERVICES: Announces Steps To Further Reduce Costs
---------------------------------------------------------------
Petroleum Geo-Services ASA (OSE: PGS; OTC: PGOGY) announced
Thursday a proposed reduction in office based personnel by
approximately 250 people. The personnel reduction is a part of
PGS' ongoing cost reduction program with the objective of
reducing ongoing cash expenses on an annual basis by USD 75
million by 2003. The proposed headcount reductions will mainly
come in the Company's business centers in Houston, Texas,
Walton, England and Oslo, Norway. The extraordinary costs
related to the proposed reductions are expected to occur during
the second and third quarter 2003.

Petroleum Geo-Services ASA is a holding company that offers a
range of technologically focused exploration and production
services through its subsidiaries, collectively referred to as
the PGS Group of Companies.

The Company's primary customers are oil and gas companies and
governing oil and gas authorities worldwide.


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


ELEKTRIM S.A.: Receives Partial Award From Arbitral Tribunal
------------------------------------------------------------
The Management Board of Elektrim S.A. informs that it received
Thursday through its attorneys in the arbitration proceedings
before the International Arbitral Centre of the Austrian Federal
Economic Chamber in Vienna in case No. SCH-4682 DeTeMobil
Deutsche Telekom MobilNet GmbH ("DT Mobil") vs. Elektrim S.A.,
Kulczyk Holding S.A., TUiR Warta S.A., BRE Bank S.A., and Drugi
Polski Fundusz Rozwoju-BRE Sp. z o.o., a partial award issued in
the Arbitration.

In the award, the Arbitral Tribunal has dismissed all of the
claims raised by DT Mobil, as well as the counterclaim submitted
by Elektrim S.A. The parties claim as to proceedings costs are
reserved for decision in a subsequent award.

The Management Board of the Company reminds that in the
arbitration, DT Mobil challenged the acquisition by Elektrim
S.A. of 14 728 shares in Polska Telefonia Cyfrowa Sp. z o.o.
("PTC") on 26 August 1999 and claimed damages. DT Mobil also
demanded a declaration that Elektrim S.A. is in material default
of the PTC Shareholders Agreement which would have enabled DT
Mobil to exercise a call option to all of Elektrim's shares in
PTC at the option price set forth in the PTC Shareholders
Agreement.

In its counterclaim, Elektrim S.A. claimed damages and demanded
a declaration that DT Mobil is in material default of the PTC
Shareholders Agreement which would have enabled Elektrim S.A. to
exercise a call option to all of DT Mobil's shares in PTC at the
option price set forth in the PTC Shareholders Agreement.

The decision of the Arbitral Tribunal is a favorable development
for Elektrim S.A. in that it constitutes a confirmation that the
acquisition of PTC shares from Kulczyk Holding, Warta, BRE Bank
and  Drugi Polski Fundusz Rozwoju BRE in August 1999 r. was
legal and fully effective.


NETIA HOLDINGS: Amends Prospectus Prepared Under Polish Law
-----------------------------------------------------------
Netia Holdings S.A. (WSE: NET, NET2), Poland's largest
alternative provider of fixed-line telecommunications services,
today announced that pursuant to a decision dated April 22,
2003, the Polish Securities and Exchange Commission granted its
consent to introduce the following amendments to Netia's Polish
Prospectus, dated April 17, 2002, prepared under Polish law in
connection with the issuance of warrants and series J shares and
series K shares and made available in Poland on December 2, 2002
(the "Prospectus"):

In Chapter I of the Prospectus the following new section 3.3.11
shall be added:

3.3.11 Restrictions of Rights of U.S. Persons

"The Series I and II Notes and Subscription Warrants offer
constitutes a public offer for the purposes of the United States
law and is not subject to any general registration exemptions
under the United States law. In order to benefit from
registration exemptions in the United States, certain rights
attached to the Subscription Warrants shall be restricted. In
particular, U.S. Persons holding Subscription Warrants shall
not, save for limited exceptions under the Securities Act, be
able to exercise the right to subscribe for Series J Shares
resulting from the Subscription Warrants and will not be able to
transfer the rights attaching to Subscription Warrants unless in
offshore transactions which comply with the Regulation S under
the Securities Act or transactions made pursuant to registration
exemptions under Rule 144 and 144A under the Securities Act or
any other exemptions under the Securities Act (see the
discussion in section 23.2.1 of Chapter III). Those restrictions
shall no longer apply if the Series J Shares and the
Subscription Warrants are registered with the SEC. As of March
28, 2003, the Company is not able to state if the Series J
Shares and Subscription Warrants are going to be registered.
Consequently, there is a possibility that the rights of U.S.
Persons will be permanently restricted."


In Chapter III of the Prospectus the following sections shall
have a new wording as provided below:

23.2.1 General Information on Subscription Warrants

"Each Series I and Series II Note confers the right to subscribe
for two Series J Shares:

-- one Share within two years from the Series I and Series II
Notes issue date,

-- the other Share within three years from the Series I and
Series II Notes issue date.

The right to subscribe for one Series J Share which is related
to the Series I and Series II Notes and is to be subsequently
separated from them constitutes Subscription Warrants, and:

-- a warrant which confers the right to subscribe for the Series
J Shares within two years from the Series I and Series II Notes
issue date shall be a Two-Year Subscription Warrant.

-- a warrant which confers the right to subscribe for the Series
J Shares within three years from the Series I and Series II
Notes issue date shall be a Three-Year Subscription Warrant.

One Subscription Warrant confers the right to subscribe for one
Series J Share.

The persons entitled to acquire the Subscription Warrants
Separated from Series I and Series II Notes are the Entitled
Shareholders, i.e. those shareholders who hold the company's
shares on the date immediately preceding the date of the opening
of the subscription for the Series H Shares. The entitled
persons shall acquire the subscription Warrants Separated from
the Series I and Series II Notes free of charge, on the terms
described in this Chapter.

The Subscription Warrants, as transferable property rights
attached to securities, are securities within the meaning of
Art. 3 section 2 of the Law on Public Trading in Securities.

No collateral has been established on the Subscription Warrants.
Neither do they incorporate any preferences or obligations to
perform additional services.

As at the Prospectus date, no contractual limitations exist with
respect to the transfer of rights attached to the Subscription
Warrants.

Until the Series J Shares and the Subscription Warrants are
registered with the SEC (if at all), the U.S. Persons who hold
the Subscription Warrants will not be entitled to:

-- exercise the right to subscribe for Series J Shares resulting
from each Subscription Warrant, except for the cases when the
exercise of such rights by certain U.S. Persons is admissible
under the Securities Act or other laws of the United States of
America;

-- offer, sell, encumber, transfer for security or otherwise
assign the rights to the Subscription Warrants, unless: (a) in
an offshore transaction which complies with Regulation S under
the Securities Act; (b) pursuant to an exemption from
registration under Rule 144 or 144A under the Securities Act;
or (c) pursuant to another exemption from registration under the
Securities Act.

The Management Board shall notify if Netia registers Series J
Shares and the Subscription Warrants with the SEC within 2 days
of such registration."

23.2.2.1 Persons Entitled to the Right to Obtain the
Subscription Warrants Attached to Series I Notes

"The persons entitled to acquire the Subscription Warrants
Separated from Series I Notes shall be the Entitled
Shareholders, i.e. those Netia shareholders who held the Shares
recorded in their securities accounts or, in such Entitled
Shareholders' name, in the register of the Issue Sponsor, at the
end of the day immediately preceding the opening of the
subscription for Series H Shares. The Subscription Warrants
attached to Series I Notes shall be acquired by the Entitled
Shareholders upon the crediting of the Subscription Warrants to
such Entitled Shareholders' securities accounts or, in their
name, to the Issue Sponsor's register, as stipulated in the
Prospectus.

The legal basis for transferring the Subscription Warrants in
secondary trading to the Entitled Shareholders shall be the
permit issued under Art. 93 of the Law on the Public Trading in
Securities (see section 23.2.2.3 of this Chapter).

In the event the securities account in which the Shares were
recorded on the date on which the right to obtain the
Subscription Warrants attached to Series I Notes was determined
has been closed, the Subscription Warrants shall be recorded in
such person's name in the Issue Sponsor's account.

The entitled persons should note that their right to transfer
the Subscription Warrants and exercise the right to subscribe
for the Series J Shares attached thereto may be restricted
between the date of receiving the Subscription Warrants and the
date of registering them with the SEC (if at all). For a
detailed description of the limitations, see section 23.2.1
above."

23.2.2.8 Persons Entitled to Submit Applications

"The persons entitled to submit Applications shall be the
Entitled Shareholders, i.e. those Netia shareholders who held
the Shares recorded in their securities accounts or, in such
Entitled Shareholders' name, in the register of the Issue
Sponsor, at the end of the day immediately preceding the opening
of the subscription for Series H shares. The Subscription
Warrants Separated from Series II Notes shall be acquired by the
Entitled Shareholders upon the crediting of the Subscription
Warrants to such Entitled Shareholders' respective securities
accounts or, in their name, to the Issue Sponsor's register,
based on such Entitled Shareholders' respective Applications and
under the Prospectus and the terms and conditions of the
Application stipulated in the Prospectus.

The Subscription Warrants which are transferred following the
filing of the Application shall be subject to the restrictions
stipulated in section 23.2.1 above related to transferring such
Subscription Warrants and exercising the right to subscribe for
Series J Shares attached thereto."

23.2.3 Exercise of Rights Attached to the Subscription Warrants

"Subscription Warrants entitle their holders to subscribe for
Series J Shares at any time within:

-- two years from the issue of Series I and Series II Notes - in
the case of Two-Year Subscription Warrants,

-- three years from the issue of Series I and Series II Notes -
in the case of Three-Year Subscription Warrants, at a fixed
price, in accordance with the rules for distribution of Series J
Shares.

Subscription orders for Series J Shares, constituting the
exercise of rights conferred by Subscription Warrants, shall be
accepted by the brokerage houses maintaining the securities
accounts in which the Subscription Warrants are held, or based
on a deposit certificate issued by an entity other than a
brokerage house which maintains the securities account.
Brokerage houses shall submit the received and accepted orders
to the Polish NDS, which shall, on the Issuer's behalf, deliver
an appropriate number of Series J Shares by crediting such
Series J Shares to the entitled person's securities account in
the NDS and simultaneously cancel the same number of the
relevant Subscription Warrants in such person's account.

The holders of Subscription Warrants attached to the Series I
and II Notes shall be persons entitled to subscribe for the
Series J Shares.

Detailed rules governing subscription for the Series J Shares
have been set out in Section 24.3 of this Chapter.

Until the Series J Shares and the Subscription Warrants are
registered with the SEC (if at all), the U.S. Persons who hold
the Subscription Warrants will not be entitled to:

--  exercise the right to subscribe for Series J Shares
resulting from each Subscription Warrant, except for the cases
when the exercise of such rights by certain U.S. Persons is
admissible under the Securities Act or other laws of the United
States of America;

--  offer, sell, encumber, transfer for security or otherwise
assign the rights to the Subscription Warrants, unless: (a) in
an offshore transaction which complies with Regulation S under
the Securities Act; (b) pursuant to an exemption from
registration under Rule 144 or 144A under the Securities Act;
or (c) pursuant to another exemption from registration under the
Securities Act.

The Management Board shall notify if Netia registers Series J
Shares and the Subscription Warrants with the SEC within 2 days
of such registration."

24.3.1 Persons Entitled to Acquire Series J Shares

"The persons entitled to subscribe for Series J Shares shall be
the persons who hold the Subscription Warrants attached to
Series I and Series II Notes recorded in their securities
accounts or, in such their name, in the register of the Issue
Sponsor.

Until the Series J Shares and the Subscription Warrants are
registered with the SEC (if at all), the U.S. Persons who hold
the Subscription Warrants will not be entitled to:

--  exercise the right to subscribe for Series J Shares
resulting from each Subscription Warrant, except for the cases
when the exercise of such rights by certain U.S. Persons is
admissible under the Securities Act or other laws of the United
States of America;

--  offer, sell, encumber, transfer for security or otherwise
assign the rights to the Subscription Warrants, unless: (a) in
an offshore transaction which complies with Regulation S under
the Securities Act; (b) pursuant to an exemption from
registration under Rule 144 or 144A under the Securities Act;
or (c) pursuant to another exemption from registration under the
Securities Act.

The Management Board shall notify if Netia registers Series J
Shares and the Subscription Warrants with the SEC within 2 days
of such registration."

In Chapter IX the following definition shall be added to
Schedule No. 6 Definitions and Abbreviations:

"U.S. Person" means (i) any natural person resident in the
United States, (ii) any partnership or corporation organized or
incorporated under the laws of the United States, (iii) any
estate of which any executor or administrator is a U.S. person,
(iv) any trust of which any trustee is a U.S. person, (v) any
agency or branch of a foreign entity located in the United
States, (vi) any non-discretionary account or similar account
(other than an estate or trust) held by a dealer or other
fiduciary for the benefit or account of a U.S. person, (vii) any
discretionary account or similar account (other than an estate
or trust) held by a dealer or other fiduciary organized,
incorporated, or (if an individual) resident in the United
States, and (viii) any partnership or corporation if (A)
organized or incorporated under the laws of any foreign
jurisdiction and (B) formed by a U.S. person principally for the
purpose of investing in securities not registered under the U.S.
Securities Act, unless it is organized or incorporated, and
owned, by accredited investors (as defined in Rule 501(a) of the
U.S. Securities Act) who are not natural persons, estates or
trusts."

Netia also stated that on April 14, 2003, the Company made
publicly available an Exhibit to the Prospectus which contains:
(i) consolidated and stand-alone annual reports for the year
ended December 31, 2002 prepared in accordance with Polish
Accounting Standards; (ii) the extended consolidated fourth
quarter 2002 report prepared in accordance with Polish
Accounting Standards; (iii) the consolidated financial
statements for the year ended December 31, 2002 prepared in
accordance with International Accounting Standards and
previously submitted with the U.S. Securities and Exchange
Commission; and (iv) all information publicly disclosed between
December 2, 2002 and April 10, 2003 in accordance with the
requirements of the Polish Law on Public Trading in Securities
dated August 21, 1997 (as amended and restated).

CONTACT:  Netia, Warsaw
          Anna Kuchnio (IR)
          Phone: +48-22-330-2061
          or
          Jolanta Ciesielska (Media)
          Phone: +48-22-330-2407
          or
          Taylor Rafferty, London
          Mark Walter
          Phone: +44-(0)20-7936-0400
          or
          Taylor Rafferty, New York
          Abbas Qasim
          Phone: 212/889-4350


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


AVANZIT SA: Creditor Banks Stand in the Way of Turnaround Plan
--------------------------------------------------------------
Avanzit SA, the Spanish telecom engineering and media firm under
creditor protection for close to a year now, is looking at a
mid-November exit from court proceedings, says Dow Jones.

Under its viability plan, disclosed Thursday last week, the
company will sell media unit, Telson, and reach agreement with
creditors on a debt restructuring by the end of May.  By August,
it aims to have closed all its Latin American units, apart from
those in Argentina and Peru, the newswire says.

In a filing with the stock market regulator, the company
admitted that some of its creditor banks are not amenable to the
plan and don't support its proposal to raise cash by accepting
an offer for its media unit, Telson.

Dow Jones says the company has three core business lines:
telecom networks installation and engineering; multimedia
production and post-production; and Information Technology
implementation and outsourcing.

Its troubles began when Spanish telecom giant, Telefonica SA,
cut spending, amid the crisis in the telecom and media
industries and the downturn in Latin America.  Avanzit said
Thursday the support of Telefonica is crucial to the success of
its turnaround plan.  The company derives the bulk of its
revenues from Telefonica.

Dow Jones pegs Avanzit's market capitalization at EUR39 million.


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


ABBEY NATIONAL: To Release Interim Result July 30
-------------------------------------------------
The meeting will deal with the proposed resolutions as outlined
in the Notice of Meeting, and will provide a summary of the
business and financial performance in 2002.

The following are extracts from the speech to be made by Lord
Burns, Chairman at the meeting.

'Last year, I spoke of the challenges we were facing. Looking
back at 2002, it is clear that these were greater than expected.
The loss made in 2002 is extremely unsatisfactory, and on behalf
of the Board I would like to express our regret for the results
and dividend cut. The loss reflected the harsh impact on Abbey
National of extremely difficult market conditions.  We were not
well positioned for these market conditions, and this led to a
number of material charges and write-offs.

When we presented the 2002 results in February this year, we
highlighted our strategic goals as well as the challenges
expected. These included a tough market, and the working through
into our results of various negative issues from 2002.  These
challenges apply to both the Portfolio Business Unit, in the
form of realization losses, and our PFS businesses.

Progress has already been made in 2003 in implementing the
strategy of focusing solely on UK Personal Financial Services.
The major structural changes are now in place and many other
important building blocks are coming together.

In our Portfolio Business Unit, we have made good progress on
risk reduction and asset sales since the beginning of the year
and we were pleased to complete the First National sale to GE
Consumer Finance earlier this month.

Our PFS trading performance so far this year generally reflects
the issues we set out in February.  In addition, as other
companies have reported, significantly lower investment product
sales have been recorded to date.

I am convinced that we have the right strategy for Abbey
National and a bright future ahead of us, despite the current
problems and difficulties in financial markets. We have a very
fine business, with a strong brand and franchise and great
potential.  Our employees are key to our success and I would
like to thank them for their continued hard work and commitment.
We are united in our determination to restore Abbey National to
a path of value creation for our shareholders.'

Further Updates

The Interim results on 30 July will provide a formal update of
financial trading performance in 2003 and progress on our new
strategy. A summary of key trends will also be available in the
Pre-Close Statement on 18 June.

CONTACT:  Thomas Coops (Director of Communications)
          Phone: 020 7756 5536

          Jon Burgess (Head of Investor Relations)
          Phone: 020 7756 4182

          Christina Mills (Head of Media Relations)
          Phone: 020 7756 4212

          E-mail: investor@abbeynational.co.uk


ARBRE ENERGY: Indian Businessman Buys Firm Out of Liquidation
-------------------------------------------------------------
PricewaterhouseCoopers, the liquidator of Yorkshire-based Arbre
Energy, confirmed last week that it had already sold the
pioneering energy power plant, but refused to identify the
buyer.

The liquidator told Yorkshire Today it has been instructed by
the mystery buyer not to reveal anything about the deal.  Rumors
are rife, however, that the buyer is an Indian businessman
backed by U.S. financiers.

The plant, which use willow trees for fuel, is a GBP40 million
prototype for producing renewable energy.  Department of Trade
and Industry and the regional development agency, Yorkshire
Forward, poured in GBP10 million into the venture, which is now
majority owned by Energy Power Resources (EPR).  It's other
shareholders, include Swedish renewable energy firm, TPS, which
holds a 10 percent stake in the plant.

EPR decided to put the plant in liquidation in August last year,
after Yorkshire owner, Kelda, withdrew financial support for the
plant.  Kelda originally set up Arbre Energy in 1998, but sold
it last April in a deal that gave EPR all of Kelda's renewable
energy generation business.  Kelda had agreed to continue
funding the development costs of Arbre on condition it could
pull out at any time if it felt the project was not "technically
or economically viable," which it chose to do in July.

Fifty local farmers contracted to grow willow trees fear,
however, that the new owner will use other sources of fuel.  It
is believed that the Non Fossil Fuel Obligation contracts, which
gave EPR a premium electricity price provided the plant was
fuelled by willow, are not included in the deal.  The Renewable
Energy Growers, the group of 50 farmers, told Yorkshire Today
they have been told the existing contracts are now invalid.

Vice-chairman Gareth Gaunt said: "Our fear is the contracts will
not be re-negotiated and an alternative fuel to willow will be
used instead.  We were told by DEFRA (Department of the
Environment, Food and Rural Affairs) a year ago we could only
sell the willow for fuel and now we have no idea what this sale
really means for Arbre."

Mr. Gaunt said members were owed in excess of GBP90,000, but had
received no information on any forthcoming payment.

He added: "What is worrying is that GBP10 million of public
money was invested into Arbre when it was first opened. Has the
Government lost interest in its investment?"

A DTI spokesman told Yorkshire Today he was unable to give any
details on the DTI's involvement in the deal but an announcement
confirming any funding would be made shortly.

The plant is located in Eggborough, near Selby, the paper says.
Oil giant, BP, and energy firm, Innogy, were earlier rumored to
be interested in the plant.


AUSTIN REED: Founder's Grandson Will Bid Despite Deadline Expiry
----------------------------------------------------------------
Monaco-based entrepreneur Nigel Robertson, great-grandson of the
founder of the Austin Reed retail chain, is ignoring a deadline
for bids set by the company's financial advisor, according to an
article in the Guardian. The deadline expired on Thursday.

Close Bros, Reed's financial adviser intended to distribute
financial information to any short listed bidders so that they
could refine their plans prior to a formal bid, after the
deadline expired. However, the advisers refused to make a
statement as to how many bids have been received.

At least two potential buyers have reportedly submitted their
bids before the deadline: rival entrepreneur Richard Thompson
and Slater Menwear, a Scottish retail chain. Slater triggered
the potential action when it approached Austin Reed.

However, Mr. Robertson was not discouraged by the fact that the
deadline had passed.

"It may be a deadline for Close Bros, but it is not a deadline
for us. Austin Reed is a public company and should be looking to
maximize shareholder value. If the bid comes next week they will
still have to look at it," he said.

The businessman indicated that he "very much hopes" to make an
offer by April 30, said the report.


BRITISH AIRWAYS: Faces Second Lawsuit Over Flight BA 149
--------------------------------------------------------
A new group of passengers who were held hostage in Iraq during
the first Gulf War filed last week a lawsuit seeking financial
compensation from British Airways for their ordeal, according to
AFX News.

The suit by 134 individuals -- seven former passengers and their
relatives -- was lodged with a court in Paris.  A ruling is
expected on June 26, the newswire says.  The plaintiffs claim
the carrier exposed them to unnecessary risks when it allowed
British Special Forces to board with them.

Flight BA 149 was bound for Kuala Lumpur from London, but it
stopped in Kuwait City, purportedly to refuel.  Unknown to
passengers, the invasion of Kuwait had begun.  Hundreds of
westerners, including everyone on the BA flight were captured
and deported to Iraq.  In Baghdad, the plaintiffs claim, they
were used as human shields at several possible bomb targets,
including power stations, oil refineries and military sites.
Many fell ill with dysentery and cholera, they said.  They were
gradually released, with the last captives, mostly British and
American nationals, freed in December 1990.

According to AFX News, this is not the first suit filed against
the carrier in relation to the incident.  A Paris court in 1995
ordered the airline to pay several hundred thousand euros to a
group of French plaintiffs who were among those taken hostage.
The court ruled that British Airways unnecessarily exposed its
passengers to danger.  Relatives of the hostages were also paid
compensation, an award upheld by France's highest appeals court.

BA lawyer, Fernand Garrault, believes the court "made a mistake"
in 1995 when it ruled in favor of the first group of passengers.
"The invasion of Kuwait was unpredictable but it was even more
unpredictable that Iraq would take civilians hostage and use
them as human shields," he stressed during an interview with AFX
News.

He pointed out that BA had successfully appealed to Britain's
upper house of parliament -- the House of Lords -- against
claims filed by passengers in England and Scotland, and that a
court case in the U.S. had been dismissed.

Dominique Menard represents the current plaintiffs, says the
newswire.


BULLOUGH PLC: Issues Chairman's Statement at AGM
------------------------------------------------
The following is the text of a statement made by the Chairman at
the Annual General Meeting of Bullough held earlier Thursday:

'Offer for the Company

The Board of Bullough have noted the recent announcement by
Montpellier Group plc of a conditional cash offer for Bullough
at 12 pence per share by Tobull Limited, a wholly owned
subsidiary of Montpellier Group plc, valuing Bullough at GBP6.38
million.

The Independent Directors of Bullough (who comprise the Board
other than Peter Gyllenhammar, a director of Montpellier) and
our advisers consider this offer to be inappropriate at this
present time.

The Independent Directors are of the opinion that the value of
the various parts of the Bullough Group are worth considerably
in excess of the current market value of the Group.  The Board
can confirm that it has received firm indications of interest
for one division and discussions are progressing. Should these
firm indications of interest lead to a disposal of the division
it is expected that the net proceeds received by Bullough will
be in excess of that being offered by Tobull Limited for the
entire Bullough Group.  This disposal route, which would involve
the return of cash to shareholders, therefore offers the
prospect of far better returns to the Shareholders than
acceptance of the offer by Tobull Limited.

Montpellier has an existing 29.9% shareholding in Bullough and
is represented on the Board by Peter Gyllenhammar.  Peter
Gyllenhammar has been kept fully informed of the financial
position and prospects of Bullough including current trading and
the indications of interest.

The Independent Directors strongly recommend that Shareholders
take no action in respect of their Bullough shares and that
Shareholders do not sign any documents until they receive formal
advice from the Independent Directors.

Current Trading

Trading in the first three months of the year has been in line
with expectations.

The loss sustained in the first quarter in Workplace Solutions
in comparison to the previous year, has been significantly
reduced despite lower turnover. Temperature Control showed a
modest improvement over the previous year.

The restructuring action taken throughout 2002 in Workplace
Solutions has lowered the cost base such that despite lower
sales in the first quarter, in comparison to the prior year, the
loss was reduced close to break even level. The full benefit of
this cost restructuring action will be seen over the coming
months of the current financial year.   In our Temperature
Control division Trianco is showing some sign of improvement
despite sales with its major customers being at a disappointing
level.  Johnson & Starley has started the year well and has
improved performance over the prior year.

The combined impact of restructuring together with the capital
investment programme implemented in 2002 is now delivering real
benefit.   Effective control of working capital has been
maintained and group borrowings remain at a negligible level. '

CONTACT:  Howard Marshall, Bullough
          Phone: 01372 379088
          Richard Welton, Arbuthnot
          Phone: 0121 710 4501


CLM BUILDING: Joint Administrator Offer Business for Sale
---------------------------------------------------------
Electrical Appliance & Assurance Tester - Warrington

CLM Building Services Limited
(In Receivership)  The company's main activity is the testing of
portable electrical appliances and fixed wire installations
throughout the UK.

-- Turnover year ended December 31, 2002 circa GBP5 million
-- Range of customers including major public sector bodies
-- Approximately 120 staff
-- Lesehold premises in Warrington

Grant Thornton, the UK member of Grant Thornton International,
is authorized and regulated by the Financial Services Authority
for investment business.

CONTACT:  GRANT THORNTON
          Joint Administrative Receivers
          Less Ross
          Grant Thornton, Heron House
          Albert Square, Manchester M60 8GT
          Homepage: http://www.grant-thornton.co.uk


CORUS GROUP: Shareholders Urged to Reject Proposed Executive Pay
----------------------------------------------------------------
Trades Union Congress, an association of labor unions, has
called on Corus Group Plc shareholders to block the company's
remuneration report during the annual general meeting Tuesday.

TUC General Secretary Brendan Barber, in an interview with AFX
News, said the company should be a little more sensitive in
approaching executive remuneration following the ouster of
former executive Chairman Sir Brian Moffat.  The latter had been
criticized for atrocious executive bonuses, among others, before
getting axed last week.

"With a background of job losses, a staff pay freeze and the
continuing threat of redundancies it is hard to see how in
changing the bonus plan in this way Corus has adhered to the
combined code (of principles of good governance)," Mr. Barber
told AFX News.

"Indeed if the background in Corus is not seen as exactly the
kind of scenario that requires sensitivity over remuneration it
is difficult to see how this section of the Code will ever be
anything more than words on a page," he said.

"In addition, we are aware that concerns have been raised about
the remuneration report by other parties including investors and
voting advisers.  These concerns include both the bonus
incentive plan and the share option scheme.  Given all these
factors we urge shareholders to vote against the remuneration
report," he said, adding, "This is the time for a fresh start at
Corus.  A more sensitive approach to executive remuneration
would be a good way to demonstrate a new culture of
partnership."

TUC has already advised its 1000 strong network of pension fund
trustees of the call to vote against the remuneration policy.
The network covers funds with a total of GBP260 billion in
assets, the newswire said.


CORUS GROUP: There's no Truth to Rumored 12,000-Job Cut
-------------------------------------------------------
British steel-maker, Corus Group Plc, denied reports that came
out last week that it is planning to axe 12,000 workers to
arrest its GBP1 million-a-day losing skid.

The Evening Gazette quoted an unnamed Corus spokesman saying
last week: "We have never said anything like that. It is sloppy
reporting. They are referring back to a speculative story they
ran themselves."

Ian Crichton, a local union leader, similarly blasted the
report: "This is yet another example of negative speculation and
is vandalistic in context.  The UK workforce is only 22,000 to
start with."

Mr. Crichton is leading a Teesside delegation to Corus' annual
general meeting tomorrow with the message that the company must
start talking to its workforce.

"The one component missing in the past has been open dialogue
between the company and the workforce," he told the Evening
Gazette in an interview.

Unions had earlier planned a demonstration at the meeting
against chairman Sir Brian Moffat, but Mr. Crichton says this
exercise is no longer needed following the announcement of a new
chairman and chief executive.

"The focus now might be on proving to the shareholders that
Corus has a future, and under a new management team hopefully
there will be a culture change," he said.


EGG PLC: Presents Q1 Financial Results and New Business Figures
---------------------------------------------------------------
'Our UK business has delivered strong growth in both customers
and profits during the quarter. In France, our first product, la
Carte Egg, which we recently launched has taken off more slowly
than we had hoped for but having achieved high levels of brand
awareness we remain confident about Egg France's long term
prospects.'

Paul Gratton, CEO, Egg plc

Highlights:

Analysis of Group Profit and Loss Account


                                 Q1 2003           Q1 2002
                                  GBPm                GBPm
Egg UK                            17.3               5.0
Egg France                       (23.9)             (0.5)
Other International               (2.3)             (1.3)
Subsidiaries/Associates/JV's      (1.6)             (0.8)
Restructuring                     (5.2)                 -
Group (Loss)/Profit before Tax   (15.7)               2.4

Group

-- Group operating income up 29% to GBP95.2 million (Q1 2002:
GBP73.7 million)
-- Group loss before tax of GBP15.7 million (Q1 2002: GBP2.4
million profit)
-- Group loss per share 2.2p (Q1 2002: earnings per share of
0.2p)
-- Total group assets of GBP10.5 billion (Q1 2002: GBP8.8
billion)

UK
-- Egg UK delivered a profit before tax of GBP17.3 million (Q1
2002: GBP5.0 million)
-- 165,000 net new customers acquired in the first quarter (Q1
2002: 157,000)
-- Unsecured lending balances grew by GBP200 million (Q1 2002:
GBP160 million) leading to quarter end balances of GBP3.5
billion (31 March 2002: GBP2.5 billion)
-- Strong sales growth in personal loans with drawdowns of
GBP213 million, up 85% on Q1 2002 (GBP116 million).
-- Credit quality remains strong and benchmarks continue to show
Egg's card portfolio significantly outperforming industry norms.

France

-- Brand awareness (55%) and consideration (23%) are highly
encouraging
-- We expect 45,000 of our accepted applications since launch to
convert to full customers (27,000 had completed the activation
process by period end).
-- Total French customer base now approximately 108,000.
-- Loss before tax of GBP23.9 million (?35.3 million) for Q1
reduced from GBP27.3 million (?42.3 million) in Q4 2002.
-- Based on experience to date we expect to increase the profit
and loss account investment in France over the next three years
by ?140 million compared to original estimates. We believe the
new plan, with a total investment of approximately ?300 million,
delivers an attractive French business of equal value to that
anticipated prior to launch.

Other

-- Q1 2003 saw GBP2.3 million spent on research into potential
international market entry strategies.
-- Restructuring costs of GBP5.2 million were incurred in Q1.

Chief Executive Paul Gratton said:

'The UK business has delivered strong growth having successfully
increased both customer numbers and profits in an increasingly
competitive marketplace and in a market where we have seen some
weakening in consumer confidence.

'Personal loan sales were strong again in Q1 with disbursements
of GBP213 million, up 85% on the same period last year. Revenues
exceeded GBP95 million for the quarter on the back of improving
margins and healthy levels of other operating income. In
addition we continue to actively manage costs and we have seen
no deterioration in the credit quality of our retail asset
portfolio which remains industry leading for credit cards.

'France remains an attractive market for Egg, with 9 million
consumers within our target customer base. High brand awareness
and consideration are both encouraging, giving us a platform on
which to build. We remain very pleased with the quality of
customers we have attracted to date. Early usage of the card is
higher than anticipated and the percentage of customers
borrowing is increasing in line with our plans. We have
successfully migrated our card proposition from the launch focus
on cashback to a clear and attractive credit offer to our
customers.

'That said the business has started more slowly than we had
anticipated and based on experience to date, we are adjusting
our targets for Egg France which we set at the beginning of
2002. We intend to increase the profit and loss account
investment over the next three years by approximately ?140
million and now expect breakeven to be delivered in 2005. We are
concentrating on building value through a deeper relationship
with customers.

'As indicated in February we have been conducting research
during the first quarter in the USA. Early findings suggest that
there would appear to be attractive opportunities in the USA for
an Egg branded proposition, however in the short term we do not
intend to progress market entry plans. We are committed to
delivering long-term value to shareholders through building an
international business of scale and leading the industry for
innovation in financial services to the ultimate benefit of our
customers.'

Overview of Group Results

Summary profit and loss account by quarter (Unaudited)

         Q1 2003   Q4 2002   Q3 2002   Q2 2002    Q1 2002
          GBPm      GBPm      GBPm      GBPm       GBPm
Net Interest Income
         64.3       58.0      53.8       56.2     55.3
Other Operating Income
         30.6       30.9      25.8       24.5     18.4
Egg UK Operating Income
         94.9       88.9      79.6       80.7     73.7
    Operational and Administrative Expenses
        (32.9)     (36.8)    (33.3)     (31.7)   (31.7)
Brand and Marketing Costs
         (9.0)      (7.9)     (6.0)     (12.9)    (7.8)
Development Costs
         (4.9)      (3.3)     (4.2)      (4.2)    (5.7)
    Depreciation and Amortisation
         (4.0)      (4.2)     (4.7)      (4.7)    (4.9)
    Provisions for Bad and Doubtful Debts
        (26.9)     (23.7)    (21.2)     (20.6)   (18.6)
Egg UK Operating Profit
         17.3       13.0      10.2        6.6      5.0
Egg France
        (23.9)     (27.3)    (13.9)      (5.0)    (0.5)
Other International
         (2.3)      (0.7)     (0.6)      (0.8)    (1.3)
    Subsids/Associates/JV's
         (1.6)       2.3      (0.8)      (2.0)    (0.8)
Restructuring Costs
         (5.2)        -         -          -        -
Group (Loss)/Profit before tax
        (15.7)     (12.7)     (5.1)      (1.2)     2.4


Egg UK

Revenues

Net interest income grew strongly in Q1 2003 to GBP64.3 million
mainly reflecting an improvement in deposit margins as the final
eligible customers rolled off the bonus account incentive
pricing.

Other operating income (GBP30.6 million) remained strong up 66%
on the same period last year. Commission from selling creditor
insurances and fees from our growing card book remain the main
contributors to this figure.

Costs

Operational and administrative costs remain tightly managed and
we are achieving lower unit operating costs. In addition,
savings were achieved in overheads following the restructuring
program.

Brand and marketing costs were GBP9.0 million in Q1 2003 and
contributed to Egg delivering a stronger sales performance than
last quarter with 165,000 customers acquired (Q4 2002: 141,000).

UK development costs increased to GBP4.9 million for the
quarter, the highest spend since Q1 last year. This reflects a
number of new initiatives including the build of a new customer
data warehouse that will further improve both Egg's marketing
campaign activity as well as further deepening our credit
analytics capabilities.

Depreciation at GBP4.0 million in Q1 2003 continued the downward
trend started towards the end of last year.

Bad Debt Provisions

Credit quality remains strong and provision levels reflect
growth in the portfolio and the stage in life cycle of unsecured
lending. There has been no deterioration in the underlying
performance of the book. This results in a quarterly charge for
Q1 2003 of GBP26.9 million (Q4 2002: GBP23.7 million).

Egg France

The loss in France for Q1 was GBP23.9 million (?35.3 million).
This was in line with our revised plans for the French business.
The bulk of the loss results from operational and administrative
expenses (GBP9.6 million) and brand and marketing (GBP9.7
million). The operational costs are relatively fixed in nature
at present but have the capacity to absorb significant growth.
We will continue to invest in brand and marketing as we develop
our business in France.

Subsids/Associates/JV's

The GBP1.6 million net loss in Q1 2003 includes GBP0.9 million
for Funds Direct which is mainly in relation to development
costs for the integrated business to business platform currently
being built. In addition goodwill amortisation accounts for a
further GBP0.4m with Egg's share of Marlborough Stirling
Mortgage Services Limited and IfOnline Group Limited losses
being GBP0.3 million.

Restructuring Costs

The GBP5.2 million charge is made up of two different
components. The largest element (GBP3.1 million) reflects a
recent reorganisation within Egg's IT development function.
Following the conclusion of the build of Egg France launch
systems, a review was undertaken as to the best way to resource
and run the IT development team. This resulted in a decision to
locate the team in one place rather than across two sites and
also to reduce the level of fixed costs within the function to
allow more flexibility in how Egg manages its development
pipeline.

In addition, we have effected a restructure within the UK and
French overhead areas at a cost of GBP2.1 million. We expect
this to deliver equivalent cost savings within a year.

Other International

These costs (GBP2.3 million) predominantly represent the
investment in consumer, technology and proposition research
conducted in the USA during Q1. The initial findings show that
there is an opportunity for an Egg branded proposition to be
successful in the USA but in the short term we do not intend to
progress market entry plans. We intend to restrict spending on
research and development on international opportunities and
capabilities to GBP3.5 million in total in 2003.

Business Performance

Egg UK

Summary New Business Figures by Quarter

        Q1           Q4           Q3           Q2           Q1
       2003         2002         2002         2002         2002
Net New Egg Customers ('000)
       165          141          107          205          157
Net New Customers by product ('000)
- Deposits
        10           10           45           57            2
- Credit Card
       181          130           75          182          157
- Personal loans
        13           15           16            8            5
- Mortgages
         -            1            1            2            1
- Egg Invest
         1            -            1            5           13
- Egg Insure
        27           23           18           12            9


Products
GBPm       GBPm        GBPm         GBPm         GBPm
- Egg Card Balance Growth
71           83          126          207          145
- Egg Personal Loan Drawdowns
213          294          269         150          116
- Egg Mortgage Drawdowns
83          124          132          118          110
- Egg Deposit Flows (net)
(334)      (221)         671        1,947         (345)

Cumulative Figures

                 31 Mar            31 Mar       31 Dec 2002
                  2003              2002
Total Egg Customers (1) (2)
               2,725,915         2,107,872         2,561,167

Customers by product (1)
- Credit Card (4)
                2,093,229         1,525,526         1,912,526
- Savings (3)
                  750,658           627,555           740,506
- Personal loans (3)
                  160,745           107,438           147,453
- Mortgages (3)
                   30,444            26,346            29,947
- Egg Invest (3)
                   56,465            49,897            55,909
- Egg Insure (3)
                  112,633            32,951            85,468


Product balances (1)    GBPm            GBPm              GBPm
- Egg Card             2,401            1,914             2,330
- Egg Savings          7,374            5,311             7,708
- Egg Personal Loans   1,096              609               967
- Egg Mortgages        1,253            1,061             1,233
- Prudential Savings     215              270               236
- Prudential Mortgages 1,054            1,348             1,127
- Prudential Personal Loans
                         4                 9                 5


Notes:

(1.) Cumulative as at the date indicated.
(2.) If a customer holds more than one Egg product they are
treated as a single customer for the purposes of this line item.
(3.) Joint holders are treated as two or more customers.
(4.) Includes second cardholders and individuals whose
applications have been accepted in principle and who have been
allocated a credit limit but for whom the application process
has not yet been completed.

Egg UK

Customers

The Egg customer base grew by a further 165,000 during the first
quarter. It is pleasing to note that our card offer is still
proving attractive to customers two years after we introduced 0%
on balance transfers and given the number of imitation offers
now available.

Unsecured Lending

The UK credit card business attracted 181,000 net new customers
during the quarter, taking the total over 2 million, with card
balances standing at GBP2.4 billion at period end. We noted a
slowdown in consumer spending in the early part of Q1 2003,
especially in areas like travel and other discretionary
expenditure. March showed some recovery with approximately
GBP400 million growth in credit card borrowing across the UK
according to the BBA, resulting in net growth in UK credit card
balances for the quarter as a whole of GBP280 million. Against
this industry background and taking into account our deliberate
strategy to cross sell unsecured loans, we are pleased with our
increase in Egg Card balances of GBP71 million for the quarter
which was in line with our plans and represents a 25% market
share of new lending.

Personal loan customers increased by 13,000 in the quarter with
high levels of disbursements (GBP213 million). This was up 84%
on the equivalent Q1 result in 2002. The loan book now exceeds
GBP1 billion in balances.

Our focus remains on cross-selling loans to the credit card
base, offering a holistic approach to unsecured lending. In
total we have seen a net growth in balances of GBP200 million in
Q1 across cards and loans (Q1 2002: GBP160 million). This
continues to be a healthy growth rate with our lending strategy
focused on helping customers structure their debt in a sensible
manner and bringing more of their borrowing to Egg, using their
behavioural credit scores to offer the most appropriate
customers pre-approved loans.

Savings

Q1 saw a predicted net outflow on deposits (GBP334 million)
reflecting the fact that the bonus internet savings account
(with GBP3 billion of inflows) came to the end of its life in
the quarter. This level of outflows is consistent with our
plans, given seasonality, and lower than we experienced in Q1
2002.

Other Products

Egg Mortgage completions in Q1 at GBP83 million were down on
2002 quarterly levels. The product remains competitive in the
standard variable rate market and continues to win awards for
value and flexibility, however we continue to take a low key
approach to the mortgage market, choosing not to compete with
the wide variety of introductory offers available to consumers.

Egg Invest is effectively in tick-over mode pending the revamp
to the proposition that is now in development and we did no
marketing during the ISA season.

Egg Insure had another solid quarter and now has a customer base
of 113,000.

Egg France

With regard to France, we have reviewed our experience to date,
in particular the response from consumers, and have revisited
the strategic analysis of the French market as a whole. This
review has reaffirmed our confidence in the opportunity to build
a valuable business in France consistent with the scale of our
original ambition.

As we noted in February the business has taken off more slowly
than we had anticipated. However brand awareness and
consideration are both highly encouraging, which gives us a
platform on which to build and we remain very pleased with the
quality of customers we have attracted to date.

The customer base in France now totals 108,000. We currently
have 27,000 cards in issue and we expect this to increase to
approximately 45,000 following completion of the extensive
verification procedures that are needed to comply with French
legislation. Encouragingly, early data shows these customers to
be using their card more frequently than expected, with a usage
rate of approximately 19 transactions per month.

We have successfully migrated our original card proposition from
the 5% cashback-led incentive offer at launch to a clear credit
offer to consumers. We now offer a borrowing rate of 9.9% on the
card with cashback of 1% on all purchases. There is an annual
fee of ?35 with an introductory offer waiving it for six months.
We will be adding other new products later this year.

Following our strategic review we now expect the total profit
and loss account investment to be in the region of ?300 million
and breakeven to be delivered sometime during 2005. The majority
of the additional ?140 million investment in the period to
breakeven reflects increased brand and marketing expenditure and
delays to revenue generation which will lag by approximately six
months from our original plans.

Financial Review

This section analyses Q1 2003 Group results compared to Q1 2002.

Net interest income increased to GBP65.3 million for the quarter
(Q1 2002: GBP55.3 million) resulting from the growth in retail
asset balances (31 March 2003: GBP5.7 billion, 31 March 2002:
GBP4.8 billion).

Other operating income increased by GBP11.5 million to GBP29.9
million primarily reflecting fees and commissions earned from
the larger credit card book (GBP3.0 million increase) and
commissions and profit share earned from selling creditor
insurance at point of sale on personal loans (GBP6.6 million
increase).

Operational and administrative expenses increased by GBP19.7
million to GBP52.1 million, mainly attributable to the GBP9.6
million of operational costs associated with running Egg France
and the inclusion of GBP5.2 million of restructuring costs.

Brand and marketing costs increased by GBP7.7 million to GBP15.5
million at Group level mainly due to the Egg France costs of
GBP6.5 million.

Development costs increased to GBP8.6 million at Group level (Q1
2002: GBP6.8 million) with the Egg France development programme
(GBP1.7 million) and the USA research (GBP2.0 million) being
offset by a reduction in core UK development spend of GBP1.9
million.

Depreciation increased by GBP1.0 million to GBP6.2 million due
to Egg France charge of GBP2.1 million offset by a GBP1.1
million decrease in the UK depreciation figures. The majority of
the investment needed to deliver the core systems and product
infrastructure in the UK was incurred in 1999 and 2000 and as a
consequence we are now seeing a reduction in depreciation charge
as this expenditure becomes fully written off.

The charge for bad and doubtful debts at GBP27.9 million (Q1
2002: GBP18.6 million) reflects the continuing growth in the
retail asset portfolio. In particular the proportion of
unsecured lending, especially personal loans, has increased
within the portfolio. Underlying credit quality remains strong.

The tax charge was GBP2.7 million (Q1 2002: GBP0.9 million).
This can largely be attributed to the fact that the UK business
is generating profits and no tax relief has as yet been
reflected for the losses incurred in France.

Loss attributable to ordinary shareholders after tax was GBP18.3
million compared to a profit of GBP1.5 million for the period to
31 March 2002.

Loss per share was 2.2p compared to earnings per share of 0.2p
in Q1 2002.

Total assets increased to GBP10.5 billion as at 31 March 2003
(31 March 2002: GBP8.8 billion). Debt securities grew by GBP0.4
billion to GBP4.1 billion due to the strong inflow of savings
balances since the start of Q2 2002, which created additional
liquidity. In addition retail assets grew by GBP0.9 billion to
GBP5.7 billion (31 March 2002: GBP4.8 billion) mainly due to the
continued success of the credit card business which accounted
for GBP0.5 billion of the increase (31 March 2003: GBP2.4
billion, 31 March 2002: GBP1.9 billion) and the increase in
personal loans by GBP0.5 billion to GBP1.1 billion from GBP0.6
billion. Mortgage balances reduced by GBP0.1 billion to GBP2.3
billion, due to the Prudential branded book remaining in run-
off.

Total liabilities increased to GBP10.1 billion as at 31 March
2003 (31 March 2002: GBP8.4 billion), largely as a result of a
strong inflow of funds into customer deposit accounts (the bonus
savings account) in the second and third quarters of 2002.

Capital adequacy ratios at 31 March 2003 were 10.9% (tier 1) and
14.6% (total) (31 March 2002: 9.5% (tier1) and 12.9% (total)).
Following a public securitisation of GBP500 million of credit
card receivables in 2002, a further GBP500 million of assets
have been securitised in the first quarter. A credit default
swap over GBP1.7 billion of the mortgage book has also been
transacted in Q1 replacing the previous GBP0.9 billion swap.
These transactions along with tight management of risk-weighted
assets has resulted in improved capital ratios which enables us
to absorb the planned additional investment in France and
positions us well for future growth.

Independent review report by KPMG Audit Plc to Egg plc

Introduction

We have been engaged by the company to review the financial
information set out on pages 17 to 25 and we have read the other
information contained in the first quarter's report and
considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

This report is made solely to the company in accordance with the
terms of our engagement to assist the company in meeting the
requirements of the Listing Rules of the Financial Services
Authority. Our review has been undertaken so that we might state
to the company those matters we are required to state to it in
this report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the company for our review work, for this
report, or for the conclusions we have reached.

Directors' responsibilities

The first quarter's report, including the financial information
contained therein, is the responsibility of, and has been
approved by, the directors. The directors are responsible for
preparing interim reports in accordance with the Listing Rules
of the Financial Services Authority which require that the
accounting policies and presentation applied to interim figures
should be consistent with those applied in preparing the
preceding annual accounts except where they are to be changed in
the next annual accounts in which case any changes, and the
reasons for them, are to be disclosed.

Review work performed

We conducted our review in accordance with guidance contained in
Bulletin 1999/4: Review of interim financial information issued
by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of Egg plc
management and applying analytical procedures to the financial
information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have
been consistently applied unless otherwise disclosed. A review
is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a
lower level of assurance than an audit. Accordingly we do not
express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material
modifications that should be made to the financial information
as presented for the three months ended 31 March 2003.

KPMG Audit Plc
Chartered Accountants

To see financials: http://bankrupt.com/misc/EGGplc.htm


IMPERIAL CHEMICAL: Faces Shareholders Securities Class Action
-------------------------------------------------------------
Law Offices Of Charles J. Piven, P.A. announced Thursday that a
securities class action has been commenced on behalf of
shareholders who purchased, converted, exchanged or otherwise
acquired Imperial Chemical Industries PLC (NYSE:ICI) American
Depositary Shares (ADSs), each representing 1 pound Sterling
Ordinary Share, during the period between August 1, 2002 to
March 24, 2003, inclusive.

The case is pending in the United States District Court for the
Southern District of New York. The action charges that
defendants violated federal securities laws by issuing a series
of materially false and misleading statements to the market
throughout the Class Period which statements had the effect of
artificially inflating the market price of the Company's
securities.

No class has yet been certified in the above action. Until a
class is certified, you are not represented by counsel unless
you retain one. If you are a member of the Class, you may move
the court no later than June 9, 2003 to serve as a lead
plaintiff for the Class. In order to serve as a lead plaintiff,
you must meet certain legal requirements. To be a member of the
class you need not take any action at this time, and you may
retain counsel of your choice.

If you were a purchaser of shares of the Company listed above
during the period indicated and want to discuss your legal
rights, you may e-mail or call Law Offices Of Charles J. Piven,
P.A. who will, without obligation or cost to you, attempt to
answer your questions. Law Offices Of Charles J. Piven has been
involved in securities litigation for over ten years. You may
contact Law Offices Of Charles J. Piven, P.A. at The World Trade
Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore,
Maryland 21202, by email at hoffman@pivenlaw.com or by calling
410/332-0030.

More information on this and other class actions can be found on
the Class Action Newsline at www.primezone.com/ca

CONTACT:  Law Offices Of Charles J. Piven, P.A., Baltimore
          Charles J. Piven
          (410) 332-0030
          E-mail: hoffman@pivenlaw.com


MARCONI PLC: To Hold Creditors Meeting April 25
-----------------------------------------------
Further to its announcement on April 22, 2003, Marconi plc
(MONI) announces that the interim security provided to Marconi's
principal lenders over cash held by Highrose Limited, a special
purpose subsidiary of Marconi Corporation plc was released
earlier Thursday.

The scheme creditor meetings of Marconi Corp. and Marconi plc
are to be held on April 25, 2003 following which a further
announcement will be made.

About Marconi plc

Marconi plc is a global telecommunications equipment and
solutions company headquartered in London. The company's core
business is the provision of innovative and reliable optical
networks, broadband routing and switching and broadband access
technologies and services. The company's customer base includes
many of the world's largest telecommunications operators. The
company is listed on the London Stock Exchange under the symbol
MONI. Additional information about Marconi can be found at
http://www.marconi.com.

CONTACT:  David Beck/Joe Kelly Heather Green
          Public Relations/Investor Relations
          Phone: +44 (0) 207 306 1771
                 +44 (0) 207 306 1735
                 +44 (0) 207 306 1490
          E-mail: joe.kelly@marconi.com
                  heather.green@marconi.com


PIZZAEXPRESS PLC: Venice Bidder Offer Extended To May 9
-------------------------------------------------------
The Board of Venice Bidder announces that, as at 3.00 pm on 24
April 2003, being the latest closing date of the Offer, Venice
Bidder owns, controls or has received valid acceptances of the
Offer in respect of, in aggregate, 10,332,835 PizzaExpress
Shares, representing approximately 14.4 per cent of the existing
issued ordinary share capital of PizzaExpress.  The Board of
Venice Bidder announces that the Offer has been extended and
will remain open for acceptance until 3.00 pm on 9 May 2003.

As announced previously, the Board of Venice Bidder is
considering its position following the offer made by
GondolaExpress PLC for the entire issued and to be issued
ordinary share capital of PizzaExpress and it therefore strongly
urges PizzaExpress Shareholders to take no action in respect of
that offer until Venice Bidder has clarified its own position.

As at 3.00 pm on 24 April 2003, valid acceptances of the Offer
had been received in respect of 4,201,177 PizzaExpress Shares,
representing approximately 5.9 per cent. of the existing issued
ordinary share capital of PizzaExpress.

On 27 February 2003, Venice Bidder announced that it had
received undertakings to accept the Offer in respect of, in
aggregate, 109,750 PizzaExpress Shares, including undertakings
to accept from parties acting in concert with Venice Bidder in
respect of, in aggregate, 80,750 PizzaExpress Shares.  Valid
acceptances have been received in respect of all of these
PizzaExpress Shares and these are included in the totals above.

Following commencement of the Offer Period, Venice Bidder
acquired 6,131,658 PizzaExpress Shares, representing
approximately 8.5 per cent of the existing issued ordinary share
capital of PizzaExpress.

Immediately prior to the commencement of the Offer Period,
Venice Bidder and persons deemed to be acting in concert with
Venice Bidder owned or controlled 80,750 PizzaExpress Shares,
representing approximately 0.1 per cent of the existing issued
ordinary share capital of PizzaExpress.  This comprised the
beneficial holdings of the Venice Management Team.  Save as set
out above, neither Venice Bidder nor any of the directors of
Venice Bidder nor (so far as Venice Bidder is aware) any party
deemed to be acting in concert with Venice Bidder owned any
PizzaExpress Shares or rights over PizzaExpress Shares on 13
December 2002 (the last business day before the commencement of
the Offer Period) nor have they acquired or agreed to acquire
any PizzaExpress Shares or rights over PizzaExpress Shares
during the Offer Period.

CONTACT:  Nic Bennett, Financial Dynamics
Phone: 020 7831 3113


SOMERFIELD PLC: Analysts Expect Lovering, McKenzie to Up Bid
------------------------------------------------------------
The board of Somerfield has unanimously rejected the GBP509
million takeover offer of businessmen John Lovering and Bob
McKenzie, Times Online said Thursday.

Analysts interviewed by the British daily say the board will
likely bite the offer if the two retail entrepreneurs up their
103p-a-share bid to between 115p and 120p.  The two had
previously said they would not pursue a hostile bid, but
observers expect them not to walk away just yet.

Dresdner Kleinwort Wasserstein is reportedly advising
Somerfield, while Bridgewell is understood to be leading the
negotiations for Misters Lovering and Mackenzie.  The two
businessmen are thought to be backed by a consortium of banks
led by HBOS and the Royal Bank of Scotland, Troubled Company
Reporter-Europe says.


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

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

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


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