/raid1/www/Hosts/bankrupt/TCREUR_Public/030429.mbx             T R O U B L E D   C O M P A N Y   R E P O R T E R

                             E U R O P E

                 Tuesday, April 29, 2003, Vol. 4, No. 85


                              Headlines

F R A N C E

ALCATEL: Space Announces Further Restructuring Measures
ALSTOM SA: Informs Unions of Job Reduction and Restructuring
ALSTOM SA: Sells Industrial Turbines to Siemens for EUR1.1B
PERNOD-RICARD: Chairman Sees Tougher Market Conditions in 2003
SUEZ SA: Announces Sustained Growth for the Q1 of 2003

SUEZ SA: Buffett Considers a Late-Stage Bid for Water Unit
SUEZ SA: Combined Annual and Extraordinary General Meetings
VIVENDI UNIVERSAL: Could be Forced to Lower Price for Games Unit
VIVENDI UNIVERSAL: Opens Bidding for U.S.-based Assets


G E R M A N Y

BAYER AG: Announces Encouraging Sales and Earnings Performance
BAYER AG: Presents Details at Annual Stockholders' Meeting
DEUTSCHE TELEKOM: Remains Mum Over Rumored Antennae Unit Sale


N E T H E R L A N D S

KLM ROYAL: Reduces Capacity on Various Routes Due to SARS


P O L A N D

NETIA HOLDINGS: Engages in Transaction with an Affiliate


S W I T Z E R L A N D

CREDIT SUISSE: Expects Net Profit for the First Quarter 2003
CREDIT SUISSE: Purchasers of Atmel Corporation File Lawsuit
ZURICH FINANCIAL: Holocaust Class Action Dismissed by US Court


U N I T E D   K I N G D O M

ABERDEEN ASSET: Delay in Property Arm Sale Likely, Says Paper
ARCELOR SA: Chairman Remains Cautious on FY Results
BRITISH AIRWAYS: CitiExpress Could Cut Regional Services
CORUS GROUP: Bondholders Could Stymie Bank Debt Restructuring
CORUS GROUP: Likely to Trim Down U.K. Workforce by 3,000

GLAXOSMITHKLINE PLC: Succumbs to Pressure, Cuts Drug Prices Anew
IMPERIAL CHEMICAL: New York Law Firm Files Class Action Suit
MARCONI PLC: Creditor Groups Back Restructuring Arrangement
MERIDIEN HOTELS: Investors, Lenders to Start Rescue Talks May 19
MYTRAVEL GROUP: Admits Hedging, Though Not Essential Practice

PO NA NA GROUP: In Talks With Bankers for Refinancing
REGUS PLC: 4th-Quarter Loss Widens on Lower US Office Demand
SCOTTISH & NEWCASTLE: Confirms Sale of Managed Retail Business
SEYMOUR PIERCE: Announces Disposal of Seymour Pierce Green
SEYMOUR PIERCE: Alchemy Acquires Investment Banking Division

     -  -  -  -  -  -  -  -

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F R A N C E
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ALCATEL: Space Announces Further Restructuring Measures
-------------------------------------------------------
Alcatel Space, a subsidiary of Alcatel (Paris: CGEP.PA and NYSE:
ALA) specialized in space activities, has notified its workers
council that further restructuring measures should be required
due to the continuing weakness of the space market.

As a result, the cost reduction program will be intensified and
staff will be adapted to market conditions. The restructuring
measures will lead to 650 redundancies worldwide in 2003. In
France, a further adaptation plan, concerning 350 people, and an
agreement concerning the methods to be employed should be
proposed.

Furthermore, Alcatel Space in Denmark, which employs 100 people,
and Alcatel Space in Norway, which employs 130 people, should be
closed down by end 2003. The sale of Alcatel Space in
Switzerland, which employs 70 people, is expected in the near
future.

These plans were presented today to employee representatives of
the concerned sites. The objective is to open negotiations in
order to identify the most appropriate measures and determine
details of their implementation within the framework of
negotiated restructuring plans.

Alcatel Space currently has 6,000 employees, including 4,800 in
France.

This announcement is part of the restructuring measures already
announced by the Group.

About Alcatel Space
Alcatel Space is the world's third largest satellite manufacturer
and Number 1 in Europe. Deploying extensive dual expertise in
civil and military applications, Alcatel Space develops satellite
solutions for telecommunications, navigation, radar and optical
observation, meteorology and science. The company is also the
leading European prime contractor for earth observation,
meteorology and navigation ground segments, and for space system
operation. A wholly-owned subsidiary of Alcatel, Alcatel Space
had sales of 1.3 billion euros in 2002. For further information:
www.alcatel.com/space

About Alcatel
Alcatel (Paris: CGEP.PA and NYSE: ALA) provides end-to-end
communications solutions, enabling carriers, service providers
and enterprises to deliver content to any type of user, anywhere
in the world. Leveraging its long-term leadership in
telecommunications network equipment as well as its expertise in
applications and network services, Alcatel enables its customers
to focus on optimizing their service offerings and revenue
streams. With sales of EURO 16.5 billion in 2002, Alcatel
operates in more than 130 countries.


ALSTOM SA: Informs Unions of Job Reduction and Restructuring
------------------------------------------------------------
ALSTOM informs European Works Forum select committee on power
turbo-systems restructuring project

In line with the strategic plan announced on 12 March 2003,
ALSTOM today began the process to inform trade union
representatives regarding its overhead reduction and industrial
restructuring plans.

The first of these restructuring plans, concerning mainly the
Power Turbo-Systems Sector, was presented today to the Select
Committee of the Group's European Works Forum. The project aims
to improve operational performance and adapt the Sector's
industrial base to the severe downturn in the power generation
market.

The Power Turbo-Systems Sector, which currently employs around
11,000 people in turnkey plant activity and in component
activities (heavy duty gas turbines, large steam turbines and
generators) is facing a sharp downturn of the gas turbine market,
a decrease in orders for steam power plants and a significant
market overcapacity.

The main countries which would be affected are France, Germany,
Italy, Poland, Switzerland and the UK, with a proposed reduction
in employee numbers close to 3,000 people.

Following today's meeting, all necessary consultation with our
social partners will take place in the concerned countries, as
part of the Group's commitment to find appropriate solutions for
those employees affected.

ALSTOM is the global specialist in energy and transport
infrastructure. The Company serves the energy market through its
activities in the fields of power generation and power
transmission and distribution, and the transport market through
its activities in rail and marine. In fiscal year 2001/02, ALSTOM
had annual sales in excess of ?23 billion and employed 112,000
people in over 70 countries. ALSTOM is listed on the Paris,
London and New York stock exchanges.


ALSTOM SA: Sells Industrial Turbines to Siemens for EUR1.1B
-----------------------------------------------------------
ALSTOM announces that it has signed binding agreements to sell
its small gas turbines business and its medium-sized gas turbines
and industrial steam turbines businesses in two transactions to
Siemens AG, which are key steps in its continuing disposal
programme.

The total enterprise value of the two transactions is EUR1.1
billion.  Net cash proceeds to ALSTOM are expected to be
approximately EUR950 million after deduction of debt transferred
and certain other adjustments for cash items.

The first transaction will cover the small gas turbines business,
and the second transaction will cover the medium-sized gas
turbines and industrial steam turbines businesses.

The industrial turbines businesses being sold account for
approximately 10% of ALSTOM's Power sector revenues and sales are
typically to specialist industrial customers, for example in the
oil and gas industry.  They include:

-- the small gas turbines business (3 MW - 15 MW) based
principally in the UK;
-- the medium-sized  gas turbines business (15 MW - 50 MW) based
principally in Sweden;
-- the industrial steam turbines (up to about 100MW) business
with manufacturing sites in Sweden, Germany and the Czech
Republic, and global customer service operations.

In the year ended March 31, 2003, ALSTOM's industrial turbines
businesses generated sales of approximately EUR1.25 billion and
an estimated EBIT(1) margin of approximately 7%. They employ some
6,500 people.

The transactions are subject to regulatory clearances and
documentation is being submitted to the relevant merger control
authorities.

Commenting on the sales, Patrick Kron, Chairman and CEO of ALSTOM
said:
"These transactions constitute a key milestone in our action plan
to strengthen our financial base.  We thank all our employees in
the industrial turbines businesses for their support and are
confident that they will have a successful future within the
Siemens Group."

Dresdner Kleinwort Wasserstein and Cr‚dit Agricole Indosuez are
acting as financial advisers to ALSTOM on the disposal.

ALSTOM is the global specialist in energy and transport
infrastructure. The Company serves the energy market through its
activities in the fields of power generation and power
transmission and distribution, and the transport market through
its activities in rail and marine. In fiscal year 2001/02, ALSTOM
had annual sales in excess of EUR23 billion and employed 112,000
people in over 70 countries. ALSTOM is listed on the Paris,
London and New York stock exchanges.

CONTACT:  ALSTOM S.A.
          G. Tourvieille/M. Dowd
          Phone: +33 1 47 55 23 15
          E-mail: internet.press@chq.alstom.com

          Investor relations
          E. Rocolle-Teyssier
          Phone: +33 1 47 55 25 78
          E-mail: investor.relations@chq.alstom.com


PERNOD-RICARD: Chairman Sees Tougher Market Conditions in 2003
--------------------------------------------------------------
Chairman of French drinks group Pernod-Ricard, which recently
sold its shareholding in Kirin Distillery to Kirin Brewery, said
the group's businesses will face a tougher year than in 2002.

Chairman Patrick Ricard said in an interview that "2003 risks
being more difficult" for the group than in 2002 because of
"health problems, the war in Iraq, and the stressed relations
between America and France".

He added that although there are no figures available, the first
half are "always less important for sales than the second half,
which represents 60% of our turnover".

The potential impact of the spread of SARS is also difficult to
predict, according to the chairman.  However, there has been no
sign of deteriorating consumption of the group's products due to
the positions of Paris regarding the war in Iraq.

Moreover, Ricard said the company might also soon announce
investments in mid-range wins produced in New Zealand, South
Africa, and possibly the US, depending on the progress of debt
reduction.

It is known that Pernod-Ricard aims to reduce its debt-to-equity
levels to 0.5-0.6%, a level the company had before it acquired
Seagram's wine and spirits portfolio in 2001, compared with 0.8%
at the end of 2002.

TCR-EU previously reported that Pernod Ricard said it sold its
shareholding in Kirin Distillery to Kirin Brewery, giving it the
entire ownership of the former joint venture Kirin Seagram
Limited.

The sale came after Pernod put up a sale notice on the four
Highland distilleries it closed last October so that it coult
focues resources on its key malts.  Buyers were given the option
to choose any one of its Speyside distilleries: Allt A'Bhainne,
Braeval -- formerly known as Braes of Glenlivet -- Benriach and
Caperdonich.

CONTACT:  PERNOD RICARD
          Home Page: http://www.pernod-ricard.com
          Patrick de Borredon, Investor Relations
          Phone: (33 1) 41 00 41 71
          or
          Barbara M. Burns/New York
          Phone: 212/486-1140


SUEZ SA: Announces Sustained Growth for the Q1 of 2003
------------------------------------------------------
At the Combined Annual and Extraordinary General Meeting of
Shareholders today, April 25, 2003, G‚rard Mestrallet, President
and CEO of SUEZ commented on the first quarter 2003 revenues
prior to the actual publication of the Group revenues on May 5,
2003.

During the first quarter of 2003, Group revenues (excluding
energy trading) should come to EUR 10.7 billion, a 5 % increase
compared to EUR 10.2 billion for the first quarter of 2002.
Excluding change variation, organic growth should rise above 5%,
for both the Energy and Environment businesses.

SUEZ is an international industry and services group providing
innovative solutions in Energy - electricity and natural gas -
and Environment - water and waste services - for industrial,
individual, and municipal customers.
In 2002, SUEZ revenues came to EUR 40,218 million (excluding
energy trading). The Group is listed on Euronext Paris and
Euronext Brussels, as well as on the Luxembourg, Zurich and New
York Stock Exchanges.

CONTACT:  SUEZ SA
          Homepage: http://www.suez.com


SUEZ SA: Buffett Considers a Late-Stage Bid for Water Unit
----------------------------------------------------------
Suez's Uk water company Northumbrian Water may face a second
offer from Northern Electric after it was not taken through to
the second stage in the auction.

The Financial Times reported that Northern Electric, owned by
Warren Buffett's Berkshire Hathaway investment vehicle, is
considering makeing a late-stage offer for Northumbrian Water.

Citing sources, the newspaper further said Northern Electric is
understood to have made a formal offer for the subsidiary --
backed by Goldman Sachs -- in the first round of the auction.

The group, however, was not taken through to the next stage in
the auction.

They are reportedly keen to re-enter the sale, considering that
Mr Buffett has been keen to increase his interest in the UK and
has already looked at buying a number of other utility assets.

Midlands Electric and British Energy are potential acquisitions,
while Northumbrian would provide geographical overlap in the
North East, according to the FT.

The report further added that if Northern Electric does bid, the
deal would be to increase its supply base, rather than bulk up
its customer base.

Meanwhile, UK buy-out group CVC has been told it is the preferred
bidder.  It is also believed that Apax Partners has been told its
bid fell short, although Morgan Stanley Capital Partners, the
investment bank's private equity group, is still in the auction.

Northumbrian Water, valued at GBP3.2 billion (US$5 billion)
including GBP1.2 billion of debt, has attracted a high level of
interest from financial buyers who are keen for asset-backed
companies with stable cash flows which they can securitize.

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

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

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


SUEZ SA: Combined Annual and Extraordinary General Meetings
-----------------------------------------------------------
SUEZ Shareholders, deliberating as Combined Annual and
Extraordinary General Meetings and chaired by G‚rard Mestrallet,
Chairman and CEO, met Friday, April 25, to review the Report of
the Board of Directors for the fiscal year ending December 31,
2002. The Meetings approved the Company's financial statements
for fiscal year 2002 and set the net dividend for the year at EUR
0.71 per share, plus a tax credit of EUR 0.355.

The dividend shall fall due for payment May 2, 2003.

The Shareholders' Meetings notably took the following decisions:

- renewed for four years the Director mandates of Mrs. Anne
Lauvergeon and Mr. Jacques Lagarde.
- appointed as Director for a term of four years Antonio Brufau,
Senior Executive Vice President of Caixa.

Two thousand shareholders attended the Meetings, which were
transmitted live via Internet and will be retransmitted on
Internet for the following three months.

The Board of Directors which followed the General Assembly
completed the making up of the Board's committee appointing:

- Mr. Antonio Brufau, member of the Audit Committee
- Mr. Felix Rohatyn and Lord Simon of Highbury, members of the
Compensation and Appointments Committee.

SUEZ is an international industry and services group providing
innovative solutions in Energy - electricity and natural gas -
and Environment - water and waste services - for industrial,
individual, and municipal customers.
In 2002, SUEZ revenues came to EUR 40,218 million (excluding
energy trading). The Group is listed on Euronext Paris and
Euronext Brussels, as well as on the Luxembourg, Zurich and New
York Stock Exchanges.

CONTACT:  SUEZ SA
          Homepage: http://www.suez.com


VIVENDI UNIVERSAL: Could be Forced to Lower Price for Games Unit
----------------------------------------------------------------
The difficulty in finding a willing banker to finance an
acquisition of Vivendi Universal's electronic games unit could
force the French media group to lower its asking price by half,
the Financial Times reported Sunday.

The paper says bidders are finding it hard looking for financiers
willing to bankroll typically 60-70% of the acquisition price.
Accordingly, bankers involved in negotiations are requiring
buyers to put up as much as 50% equity contribution to the
eventual sale price.

Vivendi had earlier said it expects as much as EUR1.6 billion
from the disposal, which is part of a larger plan to raise EUR16
billion from asset sales by the end of 2004.   A banker
representing one potential buyer told the Financial Times the
French parent would have to lower the sale price to between
US$600 million and US$700 million to conclude the deal.

Microsoft was previously rumored to be the leading buyer, but
hopes for a bid is waning.  Electronics Arts, one of the biggest
computer games producers, only wants parts of the business, which
Vivendi wants to sell in its entirety.

The sale of the business, however, remains a big a possibility.
The paper says several vulture funds have reportedly teamed up
like Thomas H Lee Partners, General Atlantic, Francisco Partners,
Bain Capital and TA Associates.

These private equity companies have a mountain of cash with
relatively little opportunity to spend it on.  In addition, the
business is fairly attractive, as there are only few companies in
the electronic games industry.  Vivendi Games could be merged
with a larger group designed eventually to compete with
Electronic Arts, the paper says.


VIVENDI UNIVERSAL: Opens Bidding for U.S.-based Assets
------------------------------------------------------
The headquarters of Vivendi Universal in France has reportedly
ordered U.S. executives to compile detailed financial information
for bidders of its US subsidiaries, the Financial Times said
Sunday.

An unnamed source told the paper, this order has official kicked
off the disposal of Hollywood studios, theme parks and USA cable
channels.  "Information is being put together for bidders on
different assets, and the group hopes to have non-binding
indicative offers by the end of May," the source told the
Financial Times.

Up for sale are Vivendi Universal Entertainment, which includes
Universal Music, studios and theme parks.  Analysts value the
music division at US$7.3 billion; studios, US$5 billion; and
theme parks, US$1 billion.  VUE is a joint venture created last
year through a EUR12.4 billion acquisition of USA Networks, the
cable TV controlled by Barry Diller, the US media entrepreneur.
Mr. Diller, among others, has a pending shareholder suit against
the company, which could hamper the sale of this business.

A US consortium led by Marvin Davis, the oil tycoon, has already
made a putative US$20 billion offer for all of Vivendi's
entertainment assets including Universal Music, the world's
largest music recording business.  Other potential bidders
include General Electric, parent of the NBC network, the
Dreamworks Studio and Viacom, America's largest media group, the
paper says.

The company hopes to raise EUR16 billion from asset sales by the
end of 2004.  Disposals last year allowed the company to shave
EUR8 billion off its EUR12.3 billion debt.



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


BAYER AG: Announces Encouraging Sales and Earnings Performance
--------------------------------------------------------------
Werner Wenning at the Bayer AG Annual Stockholders' Meeting in
Cologne:
Very encouraging sales and earnings performance / Improving
earning power through internal measures All goals accomplished
and in some cases exceeded in 2002 / The right course is set for
the future

Provided current economic conditions do not seriously worsen,
Bayer AG expects to increase its operating result from continuing
operations by a double-digit percentage in 2003. This was
announced by Bayer AG Management Board Chairman Werner Wenning at
the company's Annual Stockholders' Meeting on Friday in Cologne.
He based his optimism on the Bayer Group's performance in the
first quarter of 2003. Despite pressure on prices and margins in
its industrial business and adverse shifts in exchange rates,
Wenning described Bayer's sales and earnings performance as "very
encouraging."

Group sales from continuing operations in the first quarter of
2003 increased by more than 4 percent to EUR 7.3 billion after
translation, and by over 15 percent in local currencies. The
favorable trend observed in the first two months thus continued
in March. According to provisional first-quarter data so far
available, the operating result also exceeded the figure for the
same period of 2002, which was EUR 840 million. "So the year
clearly got off to a good start, and we plan to build on that,"
said Wenning.

Wenning pointed out that growth forecasts for the current year
are difficult to make at the present time due to the
uncertainties surrounding the global economy and exchange rate
developments. He said a powerful upswing is unlikely in view of
the current economic situation, the ongoing weakness of the
financial markets and the continuing high price of oil, and that
an economic recovery in Germany is not expected before the end of
this year at the earliest. "Despite this difficult starting
position, we at Bayer have set out to accomplish a great deal in
2003," emphasized the Bayer CEO. "Here we are relying mainly on
internal measures to improve earning power."

The company's priorities here are to resolve strategic issues and
above all to improve its performance, and Bayer will therefore
continue to systematically pursue its efficiency-improvement
programs with the aim of saving approximately EUR 600 million
before exceptionals in 2003 alone. Bayer also plans a further
cutback in its capital spending, limiting investment to 70
percent of depreciation as in the past year, though Wenning
emphasized that strategically important investment projects would
not be affected. The company also aims to further optimize
current assets. On this basis Bayer expects to reduce its net
debt to about EUR 7 billion by the end of 2003.

For Bayer, 2002 was a year of transition, as Wenning stressed in
his remarks to the stockholders. Earnings were unsatisfactory,
but the company had used the year to strengthen its profitability
for the long term, and "the most extensive and complex change
process in Bayer's history" had been initiated. He said the goals
the company had set itself had been achieved. "Be it our
corporate structure, the acquisitions and divestitures, the cost
structures, cash flow management or net debt - we accomplished
what we said we would do, and in some cases even exceeded our
goals," Bayer's CEO reported. The focus of these activities was
on reorganizing the entire enterprise to create what he called
"The New Bayer" - a project Wenning said had already been
internally implemented last year. Bayer CropScience AG became
legally independent in the fall of 2002 following the approval of
last year's Annual Stockholders' Meeting, and Bayer plans to
legally establish the other three business area companies and the
three service companies before the end of 2003, subject to the
approval of this year's meeting. "As we already saw in 2002,
Bayer's reorganization provides an important foundation for
shaping our future," Wenning said. "We expect it to play a key
role in improving our earning power."

Bayer also significantly strengthened its product portfolio in
2002. Here, the most significant transaction was the acquisition
of Aventis CropScience, which greatly enhanced Bayer's product
range for the long term and increased the sales contribution of
the high-earning life sciences businesses to more than 50 percent
for the first time. The company also successfully implemented an
extensive divestment program worth a total gross amount of about
EUR 5.5 billion in a difficult market environment. Of the
resulting EUR 4 billion in net proceeds, EUR 3 billion was
already realized in 2002.

Bayer took a number of steps last year to improve profitability.
This included the introduction of comprehensive efficiency-
improvement programs designed to achieve a EUR 2.2 billion
improvement in operating profit by 2005. Last year alone, these
programs boosted the operating result before exceptionals by
approximately EUR 500 million.

Wenning said Bayer had also made very good progress with its
working capital management. In 2002 the company achieved a EUR
1.4 billion reduction and had thus slashed working capital by
more than EUR 3 billion since the project was launched in mid-
2001. "We thereby significantly exceeded our goal of reducing
working capital by EUR 2.5 billion." Bayer also exceeded its
goals for limiting capital expenditures in 2002. The company had
aimed to cut back capital spending to below 80 percent of
depreciation, but in fact the figure was only 70 percent.

All of these measures helped Bayer to significantly improve its
capital structure. The company substantially exceeded its target
of reducing net indebtedness to EUR 10 billion by the end of
2002, actually bringing it down to EUR 8.9 billion.

"Last year we worked systematically to get Bayer back on track,
and indeed made substantial progress," summed up Wenning. "We
have set the right course for the future. I am convinced that our
realignment has given us an excellent basis for success." The
focus of the company's efforts in the coming years will be on
improving capital productivity. Bayer will therefore concentrate
on increasing its gross operating cash flow and managing its
assets.

Wenning also informed the stockholders about the current
situation regarding Lipobay/Baycol, which was voluntarily
withdrawn from the market in the summer of 2001. Without
concession of liability, Bayer so far has entered settlement
agreements with 740 individuals, which will result in total
payments of approximately 219 million U.S. dollars. The company
is currently in settlement negotiations for several hundred
further cases. Some 8,600 suits are pending in the United States.
Bayer will continue to offer fair compensation to people who
suffered serious side effects from Lipobay/Baycol on a voluntary
basis and without concession of liability, emphasized the Bayer
CEO. At the same time, he said Bayer will defend itself
vigorously, as in the past, in all cases in which there is no
connection between its cholesterol-lowering drug and the health
problems that are the subject of the claims, or where a fair
settlement cannot be reached.

Bayer was cleared of all liability in the first two U.S. trials,
and Wenning described these as extremely important "interim
victories." The verdicts support the company's claim that it
acted responsibly and appropriately in the development, marketing
and voluntary withdrawal of Lipobay/Baycol, and that patient
safety was always its top priority. Wenning said that Bayer will
continue to present evidence in the courtroom that Lipobay/Baycol
was a safe and effective drug when taken as directed.


BAYER AG: Presents Details at Annual Stockholders' Meeting
----------------------------------------------------------
Bayer: First-quarter sales improve by more than 4 percent -
Operating result also up year on year
Double-digit growth in operating result predicted for 2003 /
Lipobay/Baycol: more settlement agreements concluded in U.S.

According to preliminary figures, the Bayer Group recorded sales
of EUR 7.3 billion from continuing operations in the first
quarter of 2003. As the company announced prior to the Annual
Stockholders' Meeting on Friday in Cologne, this represents a
year-on-year increase of more than 4 percent after translation
and an improvement of over 15 percent in local currencies.
Provisional first-quarter data so far available indicate that the
operating result also exceeded the figure for the same period of
2002, which was EUR 840 million. The Bayer Group expects to
increase its operating result from continuing operations by a
double-digit percentage in 2003, provided current economic
conditions do not seriously worsen.

At the Annual Stockholders' Meeting, Bayer also presented updated
figures concerning lawsuits pending in the United States in
connection with the drug product Lipobay/Baycol, which was
voluntarily withdrawn from the market in the summer of 2001.
Without concession of liability, Bayer so far has entered
settlement agreements with 740 individuals, which will result in
total payments of approximately 219 million U.S. dollars. Some
8,600 suits have now been filed in the United States.


DEUTSCHE TELEKOM: Remains Mum Over Rumored Antennae Unit Sale
-------------------------------------------------------------
The sale of Deutsche Telekom's antennae unit, Deutsche Funkturm
GmbH, is not yet final, sources told AFX News, contrary to
earlier reports that negotiations with private equity groups had
began.

Rumors have been circulating that vulture funds like Carlyle
Group and Apax Partners have already submitted bids for the unit,
estimated to be worth between EUR2 billion and EUR4 billion.  In
addition, reports have surfaced that Deutsche Telekom had signed
up Morgan Stanley to advise on the sale, AFX News says.

So far, CEO Kai-Uwe Ricke has yet to confirm the reports, but on
January 29, he himself announced that the business is "on the
list" of assets to be disposed as part of the group's goal to
reduce its EUR60 billion debt to EUR50 by year's end.

None of the private equity firms allegedly bidding for the
antennae unit would comment on the rumored sale.



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


KLM ROYAL: Reduces Capacity on Various Routes Due to SARS
---------------------------------------------------------
KLM Royal Dutch Airlines will adjust its flight schedule to
various destinations, primarily in the Far East. Capacity will be
reduced on various routes, either by deployment of smaller
aircraft or a reduction in frequency. KLM has decided to do so in
response to declining demand, mainly as a result of SARS. The
total reduction in capacity will amount to 3% in available ton-
kilometers.

Far East
Flight frequency on the Amsterdam-Beijing route will be reduced
from four to two weekly roundtrips. Flight frequency on the
Amsterdam-Hong Kong route will be reduced from seven to four
weekly roundtrips.

Flight frequency on the Amsterdam-Shanghai route will be reduced
from five to four weekly roundtrips.

Flight frequency on the Amsterdam-Singapore-Jakarta route will be
reduced from seven to five weekly roundtrips.

CONTACT:  Barbara C.P. van Koppen, Director Investor Relations
          Phone: +31 20 64 93099
          Fax. + 31 20 64 888 55
          E-mail: investorrelations@klm.com
          Homepage: http://www.klm.com

          or

          Principal Paying and Exchange Agent in the Netherlands
          ABN AMRO Bank N.V.
          Issuing Istitutions
          Paying Agent Department/Exchange Agency Department
          Kernelstede 2
          P.O. Box 3200
          4800 DE Breda
          The Netherlands


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


NETIA HOLDINGS: Engages in Transaction with an Affiliate
--------------------------------------------------------
Netia Holdings S.A. ("Netia") (WSE: NET, NET2), Poland's largest
alternative provider of fixed-line telecommunications services,
announced that in connection with the contemplated internal
consolidation of the Netia group companies and pursuant to the
option agreement dated December 17, 1996, on April 24, 2003,
Netia bought from Mr. Andrzej Radziminski, member of its
Supervisory Board, 21 shares, PLN 50 par value per share of Telko
Sp. z o.o. ("Telko") with its seat in Warsaw, constituting 26.25%
of Telko's share capital and representing 13.29% of the voting
power at Telko's general meeting of shareholders.

Total consideration paid was PLN 1,050. Netia financed the
transaction from its own capital.


Following consummation of this acquisition, Netia will own 60
shares of Telko constituting 75% of Telko's share capital
representing 87.34% of Telko's voting power. Telko does not
conduct any telecommunications services.

CONTACT:  NETIA HOLDINGS S.A.
          Anna Kuchnio, Investor Relations
          or
          Taylor Rafferty, London
          Mark Walter
          Phone: +44-(0)20-793 6-0400
          or
          Taylor Rafferty, New York
          Abbas Qasim
          Phone: 212/889-4350



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


CREDIT SUISSE: Expects Net Profit for the First Quarter 2003
------------------------------------------------------------
Credit Suisse Group (NYSE:CSR) (Other OTC:CSGKF) announced that
it expects to report a net profit of approximately CHF 650
million for the first quarter of 2003, with a return to
profitability by Credit Suisse First Boston and improved
profitability at Winterthur. Credit Suisse Group announced these
preliminary first quarter results in connection with today's
Annual General Meeting. Detailed first quarter results will be
announced on May 6, 2003. Credit Suisse First Boston expects a
net profit of approximately USD 160 million (CHF 220 million) and
a net operating profit, excluding the amortization of acquired
intangible assets and goodwill, of approximately USD 290 million
(CHF 400 million) for the first quarter of 2003. Its
Institutional Securities segment significantly improved its
performance quarter-on-quarter, benefiting particularly from
strong results in Fixed Income and lower credit provisions.
Credit Suisse Financial Services expects a net profit of
approximately CHF 660 million and a net operating profit,
excluding the amortization of acquired intangible assets and
goodwill, of approximately CHF 690 million for the first quarter.
Both Private Banking and Corporate & Retail Banking increased
their segment profits quarter-on-quarter. Net new assets in
Private Banking increased versus the prior quarter. Insurance and
Life & Pensions, which both returned to profitability in the
fourth quarter of 2002, improved their operational performance,
due mainly to higher investment income and tariff increases. The
Group's first quarter 2003 performance was negatively impacted by
further writedowns on its investments in Swiss International
Airlines and Swiss Life, held at the Corporate Center.

Oswald J. Grubel, Co-CEO of Credit Suisse Group and CEO of Credit
Suisse Financial Services, said: "Our efforts to reposition
Credit Suisse Financial Services since last summer, especially at
Winterthur, are beginning to bear fruit. Given the progress in
both business units, we are optimistic about the further
development of our company." John J. Mack, Co-CEO of Credit
Suisse Group and CEO of Credit Suisse First Boston, said: "We are
very pleased that Credit Suisse First Boston has returned to
profitability in the first quarter. In this challenging market
environment, our whole management team remains intensely focused
on the Group's bottom-line performance."

Update of Winterthur's Consolidated EU Solvency Ratio

On the basis of the final local statutory accounts of
Winterthur's operating entities for 2002, which were completed in
April 2003, Credit Suisse Group has updated Winterthur's
consolidated EU solvency ratio effective December 31, 2002, to
142%. Local solvency ratios of Winterthur's operating entities
worldwide continued to exceed regulatory requirements: for the
ten largest entities, the average local coverage was above 200%,
and the lowest ratio was 135% at year-end. The consolidated EU
solvency ratio is a supplementary financial disclosure for
Winterthur and has no impact on published financial statements
and note disclosures, regulatory insurance filings, or the
Group's internal Economic Risk Capital models. This update does
not change the Group's view regarding the capitalization of
Winterthur.

Realignment of Client Segmentation within Credit Suisse Financial
Services

As previously announced, a new service model for private clients
in Switzerland was introduced within the banking segments of
Credit Suisse Financial Services as of January 1, 2003. As a
general rule, investable assets of CHF 250,000 or mortgages of
CHF 1 million now mark the boundary between the client segments
handled by Corporate & Retail Banking and Private Banking,
respectively. This change will be reflected in the financial
reporting of the Private Banking and Corporate & Retail Banking
segments as of the first quarter of 2003. To ensure
comparability, the respective historic financial information
according to the new format is provided in the attachment.

Credit Suisse Group

Credit Suisse Group is a leading global financial services
company headquartered in Zurich. The business unit Credit Suisse
Financial Services provides private clients and small and medium-
sized companies with private banking and financial advisory
services, banking products, and pension and insurance solutions
from Winterthur. The business unit Credit Suisse First Boston, an
investment bank, serves global institutional, corporate,
government and individual clients in its role as a financial
intermediary. Credit Suisse Group's registered shares (CSGN) are
listed in Switzerland and Frankfurt, and in the form of American
Depositary Shares (CSR) in New York. The Group employs around
78,000 staff worldwide. As of December 31, 2002, it reported
assets under management of CHF 1,195.3 billion.

CONTACT:  CREDIT SUISSE GROUP
          Investor Relations
          Phone: +41 1 333 4570
          Homepage: http://www.credit-suisse.com


CREDIT SUISSE: Purchasers of Atmel Corporation File Lawsuit
-----------------------------------------------------------
Chitwood & Harley announces that it has filed a class action
lawsuit in the United States District Court for the Southern
District of New York, on behalf of all who purchased or acquired
the securities of Atmel Corporation, (Nasdaq:ATML), between July
22, 1999 and August 6, 2001, inclusive (the "Class Period"). The
suit is brought against Credit Suisse First Boston, Frank
Quattrone, and Tim Mahon. A copy of the complaint is available on
our website, http://www.classlaw.comby clicking on Atmel.

The complaint alleges that defendants violated section 10(b) of
the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder by the Securities and Exchange Commission. In
particular, the complaint alleges that defendants issued and
maintained a ``Buy'' recommendation on Atmel securities without
any rational economic basis; failed to disclose that they were
issuing and maintaining these recommendations to obtain
investment banking business; and concealed significant, material
conflicts of interest that prevented them from providing
independent and objective analysis. The Complaint alleges that as
a result of these false and misleading statements and omissions
of material fact, the price of Atmel securities was artificially
inflated throughout the Class Period causing plaintiff and the
other members of the Class to suffer damages.

The deadline to file lead plaintiff papers, for those class
members wishing to serve in this capacity, is May 5, 2003. There
are certain legal requirements to serve as lead plaintiff, which
we would be happy to discuss with you. Any member of the
purported class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member. If you wish to discuss this action
or have any questions concerning this notice or your rights with
respect to this matter, you may contact Lauren Antonino or
Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at
jlm@classlaw.com. You may also contact us through our website,
www.classlaw.com, by clicking on Atmel.

Chitwood & Harley LLP is a class action firm that concentrates
its practice in representing victims of securities fraud and
corporate mismanagement, as well as other complex litigation.
Chitwood & Harley has been appointed lead counsel in major
actions throughout the United States and has been instrumental in
recovering billions of dollars on behalf of its clients. Clients
and courts alike have praised the results achieved by Chitwood &
Harley. Recently, the federal judge in In re BankAmerica
Securities Litigation, which resulted in the highest recovery
last year in a securities class action, commented favorably on
counsel's performance stating: "Class members were well served by
experienced attorneys who, through considerable time and effort,
obtained a significant recovery for their clients," and, "(a)s
the Court has remarked throughout this litigation, class counsel
... have performed at exceptionally high levels, and all parties
have been exceedingly well represented."

For more information about Chitwood & Harley, please visit our
website at www.classlaw.com or contact Jennifer Morris at 1-888-
873-3999 (toll-free), by e-mail at jlm@classlaw.com or at 1230
Peachtree Street, Suite 2300, Atlanta, Georgia 30309.

CONTACT:  CHITWOOD & HARLEY, LLP
          Phone: (888) 873-3999


ZURICH FINANCIAL: Holocaust Class Action Dismissed by US Court
--------------------------------------------------------------
The US District Court for the Southern District of New York has
dismissed with prejudice the class action brought by several
Holocaust victims against member companies of the Zurich Group. A
similar class action brought against European insurers, including
Zurich Life, was dismissed in December 2000. Accordingly, there
remain no class actions pending against any Zurich company based
on events relating to the World War II period.

James J. Schiro, Chief Executive Officer of Zurich Financial
Services, commented the outcome: "As early as 1996, Zurich
created a task force to actively investigate potential claims of
Holocaust victims and to address any that were uncovered. The
dismissal of this lawsuit confirms that the issue has been fully
addressed by Zurich."

The action was instituted in 1998 against a large number of
European insurance companies. It alleged that the defendants had
willfully failed to pay the proceeds of life insurance policies
issued during the Holocaust period to the rightful beneficiaries.
An internal investigation by Zurich established that plaintiffs'
allegations could not be substantiated. These findings have now
been accepted by the plaintiffs, who have agreed to the dismissal
of their claims against Zurich.


Zurich Financial Services is an insurance-based financial
services provider with an international network that focuses its
activities on its key markets of North America, the United
Kingdom and Continental Europe. Founded in 1872, Zurich is
headquartered in Zurich, Switzerland. It has offices in
approximately 60 countries and employs about 68,000 people.

CONTACT:  ZURICH FINANCIAL SERVICES
          8022 Zurich, Switzerland
          Phone: +41 (0)1 625 21 00
          Fax: +41 (0)1 625 26 41
          Homepage: http://www.zurich.com



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


ABERDEEN ASSET: Delay in Property Arm Sale Likely, Says Paper
-------------------------------------------------------------
The sale of Aberdeen Property Investors could be delayed to end
of June, says The Scotsman, citing unnamed sources, who did not
state the reason for the postponement.

According to the paper, there are now three bidders in the
shortlist, which includes UK's second-largest property company,
British Land.  The asking price, however, has been reduced to
between GBP80 million and GBP95 million from GBP130 million.
Aberdeen Asset Management is selling the unit to trim down its
debt-pile.

Meanwhile, the paper says the company will maintain its dividend
policy, despite eroding profitability.  The decision not to
modify dividend at 3.85p per share is meant to reassure investors
that the company's business remains viable.  The payout could
cost the company about GBP6.7 million, meaning its shares have a
yield of more than 15 percent at the current price of about 39p,
the Scotsman says.

At the start of the month, shares of the company lost 40% after
Real Estate Opportunities dropped the company as manager
following a capital loss of GBP165 million.  Things could become
complicated for the company if the Financial Services Authority
orders compensation payments from the collapse in value of split
capital investment trusts, which are considered safe investment
vehicles, the paper says.  The company has said it will return
cash to up to 7,000 investors if prices do not recover.

Earlier this year, the company sold six unit trusts for GBP88
million to New Star.  It plans to generate savings of GBP45
million over the next two years by controlling costs and reducing
staff.  It claims investors fears are exaggerated.


ARCELOR SA: Chairman Remains Cautious on FY Results
---------------------------------------------------
The Ordinary General Meeting of Arcelor's shareholders held on
April 25, 2003 and chaired by Mr. Joseph Kinsch adopted all the
resolutions on the agenda.

In particular, the Meeting approved the accounts of the parent
company for the 2002 financial year and the payment of a gross
dividend of EUR 0.38 per share, due on May 22, 2003.

The items on the agenda were:

-Report of the Board of Directors and opinions of the independent
auditor on the annual accounts and the consolidated accounts for
the 2002 financial year
-Approval of the annual accounts for the 2002 financial year
-Approval of the consolidated accounts for the 2002 financial
year
-Allocation of results and determination of directors' emoluments
and of the dividend
-Determination of attendance fees to be paid to directors
-Discharge of the directors
-Final appointment of a replacement director
-Renewal of the authorisation of the Board of Directors to
acquire shares in the Company or to cause the acquisition of such
shares by other companies in the Group
-Authorisation of the Board of Directors to grant options to
subscribe or purchase shares

2002: A year of integration in a difficult global environment

Throughout 2002 the Arcelor Group operated in a difficult global
economic environment, characterized by a marked slowdown in
growth.

"Our Group's operating performance nevertheless measures up to
our ambitions and expectations. Right from our first financial
year we have demonstrated that by pooling the human, industrial,
commercial and financial resources of the three founding
companies Aceralia, Arbed and Usinor, we can take up the
challenges of globalization with strengthened potential, based on
the determination and competency of our teams", said Mr. Joseph
Kinsch, Chairman of Arcelor's Board of Directors.

Mr. Kinsch emphasized that the General Meeting of shareholders
that marked the conclusion of the group's first year of
operations was a special event. "Today is our first opportunity
to report to you, you who have decided to trust us and to support
the formidable undertaking that Arcelor represents", he told the
shareholders.

Mr. Kinsch recalled that the main operating sectors had posted
some contrasting performances, but that the Group as a whole had
been able to generate the synergies it had announced and had even
exceeded the targets set for 2002. He added that each of the
Group's four sectors had also achieved some significant
management gains.

The Chairman stated that during the first year of its existence
Arcelor had decided to operate according to the principles of
corporate governance, to apply the rules of the IFRS
international financial reporting standards (IAS) and to observe
a commitment to sustainable development in all its activities.

The Chairman of the Management Board, Mr. Guy Doll‚, pointed out
that the Group had succeeded in increasing its selling prices in
several steps. In this context he reemphasized Arcelor's policy
of tailoring supply more closely to demand and of giving priority
to profit margins rather than volumes.

"All these factors have enabled us to achieve a gross operating
profit ahead of our initial objective. From this point of view,
we have accomplished one of the goals set when establishing
Arcelor: to establish a more balanced relationship with our
customers and suppliers, who are much more concentrated than we
are, without compromising the trust they place in us".

Mr. Doll‚ noted that the strategic reflection carried out for
each operating sector "clearly aims to bring each activity up to
the best performance level so as to achieve our value-added
creation objectives". In the flat carbon steel products sector
this strategic orientation, which was approved by the Board of
Directors on January 24 of this year, aims to concentrate
European liquid-phase steel production at the major coastal sites
and for the blast furnaces at the continental locations to be
phased out in due course. As for the stainless steels sector, the
strategic orientation that will be submitted to the Board of
Directors in the weeks to come aims to sustainably enhance the
competitiveness of stainless steel in Europe.

Mr. Doll‚ summarized by saying that "2002 was a year of
integration, 2003 will be a year of consolidation. It is now up
to us to confirm over the longer term the good start that Arcelor
has made".

Outlook

In his analysis of the way the Group's different lines of
business are developing in 2003, Mr. Doll‚ showed both confidence
and caution. "Confidence because our customers' stocks are still
for the time being at normal levels and because we don't have any
particular reason to fear a sudden surge of imports into Europe.

This also allows us to remain confident about the trend in prices
that we are aiming at in 2003 and about our ability to improve
our costs, notably by means of synergies.

But caution as well, because there are some genuine threats to
our business at the global level, be they uncertainties regarding
a global economic recovery or the way exchange rates are moving".

                      ************

Note:

Arcelor has also said it plans to divest assets valued at about
EUR160 million in order to secure EU approval of last year's
merger, involving a total EUR1.7 million of galvanized steel
production capacity.

Only two asset sales, the Finaverdi plant in Italy and the Segal
site in Belgium, remain to be finalized, and should be closed by
the end of 2003.


BRITISH AIRWAYS: CitiExpress Could Cut Regional Services
--------------------------------------------------------
British Airways PLC is set to impose a further restructuring at
its wholly owned subsidiary, CitiExpress, which could include
withdrawing services from several domestic airports.

The Guardian reported that CitiExpress's managing director David
Evans announced to its staff at an internal briefing last week
that 120 jobs could be cut in an attempt to squeeze out GBP20
million of annual savings.

Job losses will largely hit support staff rather than pilots or
cabin crew, as the airline looks for a 5% increase in
productivity and an operating margin of 8%, urging staff to "work
harder and work smarter".

Meanwhile, it is believed that the "fleet and network" review due
to report back next month could recommend pulling out of more
airports, as BA has already withdrawn from Cardiff and Leeds
Bradford.

Citing sources at the airline, The Guardian said the Isle of Man
is among the more vulnerable destinations.  Plymouth and Newquay
are also under the microscope because they use Dash-8 aircraft,
which BA is keen to get rid of. Services from Manchester and
Birmingham airports might be also reduced.

Mr Evans, who declined to discuss the likely outcome of the
review, however said he was "ruling nothing in and nothing out".

He said: "This is all part of the ongoing business planning
process. We'd all acknowledge that things remain very challenging
- the focus on getting the business into shape remains."

A decision to withdraw from any regional airport is likely to
bring political protests, considering the dismay expressed by
Welsh politicians at BA's recent cessation of services to
Cardiff.  They attacked the airline's suggestion that travelers
are able to use Bristol airport as an alternative.

Moreover, the restructuring has contributed to tensions between
managers and unions at CitiExpress.  Employee discontent has
since been a problem at the airlines; with pilots claiming the
subsidiary had mismanaged the restructuring of the unit.

BA's chief executive, Rod Eddington, met union representatives at
the regional operator last week in an attempt to soothe their
fears.

He agreed to appoint a third-party consultant to mediate between
CitiExpress managers and the pilots' union, Balpa, which is
dismayed at the level of uncertainty and job insecurity at the
business.


CORUS GROUP: Bondholders Could Stymie Bank Debt Restructuring
-------------------------------------------------------------
The restructuring of Corus Group Plc's GBP890 million bank debts
could become complicated, according to The Times, which reported
over the weekend that secured bondholders are intent on getting
back their money.

The paper says at least five institutions, which hold between
them 75% of Corus' GBP150 million secured bonds, have hired
Norton Rose, the City law firm, to force repayment of the bonds,
including future income from them.  Already, Norton Rose has
written to Prudential, the bonds' trustee, requesting an
assurance that their rights are safeguarded in the event a deal
with banks is struck.

The Times says Corus has until January next year to replace the
GBP890 million banking facility.  Its options include offering
banks rights over its assets as additional security for any
subsequent loan in return for more favorable terms.
Unfortunately, this plan would require the firm to repay
bondholders, a scenario the company has repeatedly rejected.

An unnamed company source told The Times: "We're not in breach of
any covenants, there's nothing to talk about [with bondholders]."

British Steel, as the company was known then, issued the 25-year
bonds in 1991.  As secured bondholders, they rank above the banks
in any future break-up of the company, the paper says.  The banks
won't likely agree to a restructuring without first-place status
over the company's assets, the paper says.

"No bank in their right mind is going to refinance Corus without
getting security," a source close to the banks told The Times.
"We hold the key to saving Corus. You make us an offer, we will
probably take it.  Corus gets cheaper financing, and the banks
get security."


CORUS GROUP: Likely to Trim Down U.K. Workforce by 3,000
--------------------------------------------------------
Up to 3,000 workers could lose their jobs, if the board Corus
Group Plc will approve the rumored redundancy plan that will
partially shutdown three UK production units, the Financial Times
said over the weekend.

According to the paper, the company will likely announce the
layoffs after the board meeting yesterday and scale down
operations at its production units in Port Talbot, Scunthorpe and
Teesside.

Since its establishment in 1999, the company has absorbed more
than GBP2 billion in losses and its share price has slumped in
recent weeks due to internal wrangling.  It recently appointed a
new CEO, who has been tasked to cut U.K. production of flat steel
products for industries such as general engineering, vehicles and
white goods.

The company employs a total of 25,000 workers in the U.K.


GLAXOSMITHKLINE PLC: Succumbs to Pressure, Cuts Drug Prices Anew
----------------------------------------------------------------
Leading drug-maker, GlaxoSmithKline (GSK), was expected yesterday
to lower anew the price for Combivir, its best-selling AIDS drug,
the Financial Times says.

The price cut is the second in seven months for the Anglo-
American drug company, which has faced intense pressure from
institutional investors and health activists in recent months.
Just this month, CalPERS, the world's largest pension fund,
called on GSK to allow more generics companies to produce copies
of its AIDS drugs in poor countries.

Other intentional investors have also echoed concerns that the
company risk becoming the scapegoat for the AIDS epidemic in
Africa, jeopardizing the profitability of the entire drugs
industry.  They believe a backlash about AIDS in Africa could
limit the industry's ability to charge high prices in rich
countries, the paper says.

In explaining the price cut, GSK says economies of scale and
improved manufacturing procedures had made it possible to reduce
the daily price of Combivir from US$1.70 to US$0.90.  The annual
price per patient is now US$328 compared with to the US$265
charged by Ranbaxy of India, which has had its manufacturing
process approved by the World Health Organization, the paper
says.  The drug-maker says, at this new price, it will no longer
derive any profit from 63 countries, where the offer will take
effect.  The paper says the company began reducing the price of
the drug for developing countries in 2000 when it offered
Combivir for US$2 a day.  It costs US$18 a day in the US.


IMPERIAL CHEMICAL: New York Law Firm Files Class Action Suit
------------------------------------------------------------
The law firm of Spector, Roseman & Kodroff, P.C. announces that a
securities class action lawsuit was commenced in the United
States District Court for the Southern District of New York, on
behalf of purchasers of the common stock of Imperial Chemical
Industries PLC (NYSE:ICI) between August 1, 2002 through March
24, 2003, inclusive.

The Complaint alleges that defendants violated the federal
securities laws by issuing materially false and misleading
statements contained in press releases and filings with the
Securities and Exchange Commission during the Class Period.
Specifically, the Complaint alleges that defendants issued
numerous press releases in which they stated that they had
resolved the Company's distribution and software problems that
the Company had experienced at its Quest division's Fragrance &
Food businesses. Defendants further stated that the Company was
on track to report strong financial results, that the Company had
cleared its backlog of customer orders and that the Company had
not lost any customers as a result of its production problems.

The Complaint alleges that these statements were materially false
and misleading because they failed to disclose among others: (a)
that ICI's software, distribution and production problems at its
Quest division were not "temporary" problems or "unique" to the
Naarden, The Netherlands location, but impacted company-wide
operations and profitability; (b) that ICI's software,
distribution and production problems at its Quest division had
not been "essentially" or "largely" "resolved" or "rectified;"
and (c) that contrary to ICI's representations that it had
cleared its backlog of orders and not lost any customers as a
result of the software, distribution and production problems at
Quest, ICI's customers were, in fact, obtaining new sources of
supply and discontinuing their relationships with ICI.

On March 25, 2003, before the open of trading, ICI issued a
profit warning with respect to its fiscal 2003 first quarter. The
Company announced that its first quarter profit would drop
approximately 24%, as a result of, among other things, "business
lost following the customer service problems in 2002." Following
this announcement, shares of ICI fell from a close of $9.60 per
share on March 24, 2003 to a close of $5.60 per share on March
25, 2003, or a single-day decline of more than 36%, on nearly
twenty times normal trading volume.

If you purchased Imperial Chemical securities during the Class
Period, you may, no later than June 9, 2003, move to be appointed
as a Lead Plaintiff in this class action. A Lead Plaintiff is a
representative, chosen by the Court, that acts on behalf of other
class members in directing the litigation. The Private Securities
Litigation Reform Act of 1995 directs Courts to assume that the
class member(s) with the "largest financial interest" in the
outcome of the case will best serve the class in this capacity.
Courts have discretion in determining which class member(s) have
the "largest financial interest," and have appointed Lead
Plaintiffs with substantial losses in both absolute terms and as
a percentage of their net worth.

If you have sustained substantial losses in Imperial Chemical
securities during the Class Period, please contact Spector,
Roseman & Kodroff, P.C. at classaction@srk-law.com for a more
thorough explanation of the Lead Plaintiff selection process. If
you have relatively small losses, your ability to participate in
any recovery will be protected by the Lead Plaintiff(s), and you
need take no affirmative steps at this time.

If you wish to join this action, please visit http://www.srk-
law.com/dbjoinaclassaction.asp. If you wish to discuss this
action or have any questions concerning this notice or your
rights or interests, please contact plaintiff's counsel Robert M.
Roseman toll-free at 888-844-5862 or via e-mail at
classaction@srk-law.com. For more detailed information about the
firm please visit its website at http://www.srk-law.com.

Spector, Roseman & Kodroff, P.C., located in Philadelphia,
Pennsylvania and San Diego, California, concentrates its practice
in complex litigation including actions dealing with securities
laws, antitrust, contract and commercial claims. The firm is
active in major litigation pending in federal and state courts
throughout the United States. The firm's reputation for
excellence has been recognized on repeated occasions by courts
which have appointed the firm as lead counsel in numerous major
class actions involving violations of the federal securities laws
and the federal antitrust laws, and consumer fraud. As a result
of the efforts of the firm, and its members, hundreds of millions
of dollars have been recovered on behalf of thousands of
defrauded shareholders and companies.

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

CONTACT:  SPECTOR, ROSEMAN & KODROFF
          Robert M. Roseman
          Phone: (888) 844-5862


MARCONI PLC: Creditor Groups Back Restructuring Arrangement
-----------------------------------------------------------
Results of Creditor Voting

Scheme creditors of Marconi Corporation plc and Marconi plc have
voted overwhelmingly to approve the schemes of arrangement with a
very high level of turnout

-- 99.98% by value and 94.71% by number of Marconi Corporation
plc scheme creditors who voted at the meeting voted in favour of
the Marconi Corporation plc scheme

-- 99.97% by value and 93.60% by number of Marconi plc scheme
creditors who voted at the meeting voted in favour of the Marconi
plc scheme

John Devaney, Chairman of Marconi plc, said 'The overwhelming
support received from our creditors today demonstrates clearly
that they share our belief in the inherent value of Marconi as an
ongoing business. We now move on to achieving the final legal
approvals from both the UK and US courts, which will clear the
way for the re-listing of Marconi, which is currently expected to
take place on 19 May 2003.'

The creditor groups of Marconi plc (MONI) and Marconi Corporation
plc today voted overwhelmingly to support its financial
restructuring. At separate meetings of scheme creditors of plc
and Corp, the schemes of arrangement in relation to each of plc
and Corp were approved by a majority in number representing more
than the required 75% in value of the scheme creditors present
and voting (either in person or by proxy) at the respective
Scheme Meetings. Approval of the Schemes by the Requisite
Majorities is a key pre-condition for the Schemes becoming
effective. The Corp Scheme is not conditional on the plc Scheme
becoming effective. However, the plc Scheme will not become
effective unless the Corp Scheme becomes effective.

In order for the Schemes to become effective and legally binding,
UK Court orders sanctioning the Schemes must also be obtained.
The Court orders must then be sealed and copies delivered for
registration to the Registrar of Companies in England and Wales.
The UK Court hearing to sanction the Schemes is currently
scheduled to begin on 12 May 2003.

Corp and plc will not take the necessary steps to make the
Schemes effective unless, inter alia, permanent injunction orders
of the US Bankruptcy Court are obtained in respect of the Schemes
and all other conditions precedent under the working capital and
performance bonding facilities are satisfied or waived. The US
Bankruptcy Court hearing is currently scheduled to take place on
14 May 2003.

It is currently expected that the Schemes will become effective,
with trading in the new securities to be issued by Corp
commencing on the London Stock Exchange on 19 May 2003.

The figures set out below represent the final results of the
voting by scheme creditors, either by proxy or in person, at the
Scheme Meetings.

CORP SCHEME

The result of the voting by the Corp Scheme Creditors present and
voting (either in person or by proxy) at the Corp scheme meeting
is as follows:

Value of Votes Number of Votes

-- FOR 99.98% 94.71%

-- AGAINST 0.02% 5.29%

-- Total 100.0% 100.0%

PLC SCHEME

The result of the voting by the plc Scheme Creditors present and
voting (either in person or by proxy) at the plc scheme meeting
is as follows:

Value of Votes Number of Votes

-- FOR 99.97% 93.60%

-- AGAINST 0.03% 6.40%

-- Total 100.0% 100.0%

About Marconi plc

Marconi plc is a global telecommunications equipment and
solutions company. 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:  MARCONI PLC
          Joe Kelly Heather Green, Investor Relations
          Phone: +44 (0) 207 306 1771
                 +44 (0) 207 306 1735
                 +44 (0) 207 306 1490
          E-mail: joe.kelly@marconi.com


MERIDIEN HOTELS: Investors, Lenders to Start Rescue Talks May 19
----------------------------------------------------------------
Troubled Meridien Hotels & Resorts Ltd. will meet with major
institutional shareholders on May 19 to cook up a rescue package
for the ailing luxury chain, The Wall Street Journal said over
the weekend.

Expected to lead the rescue efforts will be Terra Firma Capital
Partners and Meridien Co-chairman Guy Hands, whose company holds
management control.  A former Nomura International executive, Mr.
Hands masterminded the acquisition of the hotel chain by the
Japanese financial group.    Nomura paid Compass Group Plc EUR1.9
billion for the hotel chain, whose properties include Waldorf and
Grosvenor House in London and L'Etoile in Paris.  It has 140
properties predominantly in Europe, according to the Journal.

Unfortunately for the new owner, the investment turned sour on
September 11, 2001, two months after finalizing the deal.  The
ensuing war on terrorism, the war in Iraq and, most recently, the
SARS outbreak has discouraged international travel, resulting in
low occupation rate.

According to the Journal, the hotel chain has about GBP1 billion
(EUR1.45 billion) in debts, outweighing its estimated business
value of GBP700 million.  To raise money, Meridien is selling
some of its hotels.  In January, the company sold its Barcelona
hotel for GBP50 million.  Over the weekend, the group was
expected to complete the sale of the Ritz hotel in Madrid for
EUR125 million.

The paper says the meeting next month could pit shareholders with
creditors.  Banks that financed the original buyout will have the
option of either accepting Mr. Hands plan, which is still being
developed, or of taking day-to-day control.  Several banks
involved with Meridien, including Royal Bank of Scotland, Abbey
National PLC and Merrill Lynch & Co. declined to comment on their
investments when contacted by the Journal.

Mr. Hands used to be Nomura's star deal-maker, establishing in
1994 Nomura Principal Finance, which acquired a wide range of
assets, including pubs, betting shops and military housing units.
Nomura entrusted the management of its Meridien investment to Mr.
Hands when he set up his own firm last year. The Japanese firm
has a GBP213 million equity stake in Meridien.


MYTRAVEL GROUP: Admits Hedging, Though Not Essential Practice
-------------------------------------------------------------
Package holiday company MyTravel, which is currently negotiating
with banks to secure a refinancing for its almost GBP500 million
of debt, admitted it was involved in hedging due to an oversight.

The troubled package tour operator revealed it has not covered
the financial risks of paying up to a year in advance in foreign
currency for hotel rooms, according to The Scotsman.

The report explained that hedging involves buying currency well
in advance to avoid future fluctuations.

MyTravel defended its decision, saying it was sufficiently
covered and that hedging was not an essential practice.

The move is widely considered to be reckless, and is believed to
become the catalyst for the ultimate collapse of the company.

MyTravel, formerly Airtours, was hit hard by the slump in holiday
bookings in the wake of the September 11 tragedy and a series of
financing gaps.  It has been selling non-core businesses after
issuing profit warnings in the span of five months.

CONTACT:  MYTRAVEL GROUP PLC
          Parkway One, Parkway Business Centre, 300 Princess Rd.
          Manchester M14 7QU, United Kingdom
          Phone: +44-1-61 23-20-066
          Fax: +44-1-61 23-26-524
          Home Page: http://www.airtours.com



PO NA NA GROUP: In Talks With Bankers for Refinancing
-----------------------------------------------------
Po Na Na Group plc announce that they are in discussions with the
Company's bankers concerning ongoing funding facilities which, if
extended, would require a restructuring of the Company's finance
arrangements.

While the Company's core business continues to trade profitably,
some clubs are under-performing and a difficult property market
has delayed the disposal of non-performing units. This delay has
resulted in a temporary requirement for extended finance
facilities and a restructuring of loan repayment commitments.

The Directors are considering all practical options including
expansion of the disposal program insofar as this can be
implemented without significant jeopardy to balance sheet values
in the current commercial property market.

A further statement, including an update on trading, will be
issued on completion of discussions with the Company's bankers.

CONTACT:  PO NA NA GROUP PLC
          200 Fulham Road
          London
          SW10 9PN
          Homepage: http://www.ponana.co.uk/lowres.htm


REGUS PLC: 4th-Quarter Loss Widens on Lower US Office Demand
------------------------------------------------------------
Regus plc, the global serviced office provider (LSE: RGU.L)
announces its results for the three months and the year ended 31
December 2002.

Chairman John Matthews comments: '2002 was perhaps the most
challenging year in the history of the company.  The economic
slowdown that began in the United States in the first half of
2001 deepened during 2002 and was exacerbated by growing
geopolitical uncertainty.

'It became clear early in 2002 that Regus had over expanded in
some markets, most notably in the US and in particular on the
West Coast of the US.  Fuelled by the technology boom in the late
1990s, the West Coast economy became overheated and when the boom
came to an end in early 2001, it was the West Coast that suffered
most.  Regus has around one third of its US centres on the West
Coast.

'In 2001, we had already cut costs by over GBP50 million a year
but with overall revenues continuing to fall in 2002, we set
about attacking the fixed cost base. In a number of our key
markets we sought - with some success - to re-negotiate and re-
structure our lease portfolio.  Notwithstanding this, we
continued to consume cash month-on-month.

'Accordingly, the Board took two decisive steps around the turn
of the year:

In December, we sold a 58% majority interest in our successful UK
business to Alchemy Partners, bringing GBP25.6 million into the
Group immediately and at the same time, putting an additional
GBP16.3 million of capital into the UK business. Further
contingent consideration are expected from Alchemy in 2003 and
2004, dependent on the EBITDA of the UK business.

In January, we decided to seek creditor protection for our US
business in order to allow our American subsidiary time to
reorganise its business and return it to profitability.
Although Chapter 11 allows lessees to terminate leases in a cost
effective way, our intention is to agree space and/or rent
reductions with as many landlords as possible.  This is important
if we are to protect the integrity of our network.  Chapter 11
has no impact on the day-to-day running of our centres in the US
and we plan to exit Chapter 11 sometime later in the year.

'We continue to look for ways to address our few remaining cash
negative businesses.  The largest of these, Germany, is currently
being restructured.

'Our determined drive to attract and retain customers has
resulted in increased occupancy and prices in general have
stabilised.  Global occupancy rose throughout the year and,
including the UK, almost 60,000 customers across 51 countries now
use Regus on a daily basis.  This represents an increase of 11%
compared with the same period in 2001.  We continue to see high
levels of customer satisfaction and it is clear that businesses,
large and small, appreciate the significant benefits of
outsourcing their property requirements.

'Looking ahead, we believe we are taking the necessary steps to
secure a successful future for Regus.  This includes accounting
for a number of exceptional items in 2002.  As the world's
largest provider of serviced offices, we have efficient systems
in place and our people remain committed to delivering the very
best in service to our customers around the globe.

'The transition has been a tough one and we thank our staff,
shareholders, landlords, suppliers and customers for their
patience and support.'

Key financials:
    3 months ended                       Year ended
   31 Dec   31 Dec                     31 Dec      31 Dec
    2002     2001                        2002        2001
    GBPm         GBPm                     GBPm          GBPm

Group turnover
  06.3      118.7        -10.4%      435.6      512.6     -15%
Centre contribution*
  4.3        9.5        -54.7%       22.3       77.8     -71.3%
Operating loss*
(12.0)       (11.7)      -0.3m       (44.3)     (19.0)    -25.3m
Exceptional items
(91.5)        (0.3)                 (92.1)      (90.5)
Operating loss (inclusive of JV's)
(103.5)      (12.0)     -91.5m    (136.4)     (109.5)     -26.9m
Profit on business disposal
  23.0            -                  22.7           -
Loss before interest and tax
(80.5)       (12.0)     -68.5m    (113.7)     (109.5)       4.2m
EPS (basic & diluted)(p)*
(2.1)        (1.2)      -0.9p       (9.6)       (5.2)      -4.4p
EPS (basic & diluted) (p)
(14.3)        (1.2)     -13.1p      (21.9)      (21.0)     -0.9p

* before exceptional items and profit on business disposals

Results of operations

Review of fourth quarter 2002

The following table sets forth the Group's revenue, centre
contribution and workstations (i.e. weighted average number of
available workstations) by geographic region and by established
centres compared with new centres.

As the number of new centre openings has been significantly
reduced, it is felt that the established/new comparison is no
longer relevant and will not appear in future releases.

On 30 December 2002, Regus plc sold 58% of its 94 centre, UK
business to Alchemy Partners.  The 2 centre, 638 workstation
business in Ireland was retained.  All revenues and costs
relating to the UK business have been included in the profit and
loss statement, up to the date of disposal.

To see table:
http://bankrupt.com/misc/REGUS_PLC_Review_of_fourth_quarter_2002.
htm

Revenue

Regus' revenue on a global basis was GBP106.3 million in the
fourth quarter 2002 (GBP118.7 million in the fourth quarter
2001).  The weighted average number of available workstations
increased 1.7% to 87,725 from 86,265 (re-based) over the same
period.  In the fourth quarter 2002, Regus closed ten centres and
opened one new managed centre.

Revenue from established centres was GBP97.4 million in the
fourth quarter 2002 (2001: GBP88.0 million).  Revenue per
workstation in Regus' established centres was GBP1,216 (2001:
GBP1,616). Revenue from new centres was GBP8.9 million (2001:
GBP30.7 million).  Revenue per workstation in Regus' new centres
was GBP1,169 (2001: GBP965).

Revenue in the UK and Ireland was GBP41.4 million (2001: GBP49.1
million) with revenue per workstation of GBP1,523 (2001:
GBP1,834).  One centre was closed and a managed centre opened in
the quarter.

Revenue in the Rest of Europe was GBP35.8 million (2001: GBP36.4
million).  Revenue per workstation was GBP1,149 (2001: GBP1,224),
an improvement on the previous quarter (GBP1,139).  In the fourth
quarter 2002, six centres were closed.

Revenue in the Americas was GBP21.5 million (2001: GBP25.4
million) with revenue per workstation of GBP909 (2001: GBP1,068).
Regus closed two centres in the quarter.

Revenue in the Rest of the World was GBP7.6 million (2001: GBP7.8
million).  Revenue per workstation increased 2% on the previous
quarter to GBP1,328 (2001: GBP1,308). One centre was closed in
the quarter.

Centre contribution

Centre contribution before exceptional items, on a global basis
was GBP4.3 million in the fourth quarter 2002 (2001: GBP9.5
million).  Centre contribution from established centres was
GBP5.8 million (2001: GBP15.3 million) with a centre contribution
margin in established centres of 6% (2001: 17%). Centre
contribution from new centres improved to a negative GBP1.5
million (2001: negative GBP5.8 million).

Centre contribution in the UK and Ireland was GBP6.8 million
(2001: GBP10.5 million).  Centre contribution margin was 16.4% in
the fourth quarter (2001: 21%).

In the Rest of Europe, centre contribution was GBP2.5 million
(2001: GBP3.9 million).  Centre contribution margin in the Rest
of Europe was 7% in the fourth quarter (2001: 11%).

Centre contribution from the Americas was a negative GBP6.2
million, an improvement compared with a negative GBP6.5 million
in 2001.

Centre contribution in the Rest of the World was GBP1.2 million
(2001: GBP1.6 million). Centre contribution margin in the Rest of
the World was 16% in the fourth quarter (2001: 21%).

Administrative expenses

Administrative expenses before exceptional items but including
goodwill amortisation decreased 21% to GBP15.4 million (2001:
GBP19.4 million) due to the effects of the cost reduction
programme.  Overall, administrative expenses fell to 14.4% of
revenues compared to 16.3% in the fourth quarter of 2001, before
exceptional items. Sales and marketing costs decreased 18% to
GBP8.7 million (2001: GBP10.6 million), and also decreased as a
percentage of revenue to 8.2% (2001: 8.9%).  Regional and central
overheads decreased by 24% to GBP6.7 million (2001: GBP8.8
million) and decreased as a percentage of revenue to 6.2% (2001:
7.4%).

Liquidity and capital resources

Cash at bank and in hand at 31 December 2002 was GBP58.6 million
of which GBP29.9 million was free cash, including the net cash
impact of GBP15.6m received so far, from the sale of 58% of the
UK business.  This compares with cash at bank at 30 September
2002 of GBP66.9 million of which GBP35.4 million was free cash.

Total indebtedness at 31 December 2002 was GBP11.0 million,
including a GBP5 million loan from Regus UK. The Group also had
outstanding finance lease obligations of GBP25.2 million, of
which GBP11.8 million is due within one year. Total indebtedness
at 30 September 2002 was GBP18.3 million, including GBP12.0
million in respect of the convertible debentures (see below).

Cash outflow from operating activities in the year ended 31
December 2002 was GBP10.8 million, with an outflow relating to
working capital of GBP9.5 million.  The net working capital
outflow in the three months was GBP14.3 million, which comprised
a decrease in creditors of GBP28.7 million offset by a decrease
in debtors of GBP14.4 million.

Net cash outflow before management of liquid resources and
financing for the three months was GBP7.2 million after paying
tax of GBP1.1 million, interest (net) of GBP0.8 million and net
capital expenditure of GBP3.5 million, offset by a net cash
benefit from the sale of a share of the UK business of GBP15.6
million.

By the end of December, the Group had repaid all of the 5 percent
unsecured, senior convertible debentures issued in December 2001.
No further charge will be incurred in relation to this financing.

Net cash (cash at bank less total indebtedness and finance
leases) increased from GBP20.7 million at 30 September 2002 to
GBP22.4 million at 31 December 2002.

Maintaining adequate liquidity in the Regus Group continues to be
the board's highest priority.  The sale of a majority stake in
the UK business and the filing under Chapter 11 in the US are
evidence of this.  Based upon the assumptions set out in note 5,
the directors have prepared the accounts on a going concern
basis.  In particular, the directors recognise that the outcome
of Chapter 11 proceedings is unpredictable and the Group is
reliant upon the timely receipt of substantially all of the
deferred consideration from Alchemy.

Exceptional items

Included in the results for the year to December 2002 were pre-
tax exceptional charges totaling GBP92.1 million (2001 - GBP90.5
million) as follows:

Cost of Sales

Onerous lease provisions and related closure costs (GBP54.3
million)

The Group has identified loss-making centres where the lease is
effectively onerous.  In these circumstances we have provided for
the fair value of the exit cost or the net loss to the next break
point.  GBP34.2 million of these costs relate to restructuring
our joint ventures and to corporate guarantees included in the
Chapter 11 filing and have been included as an exceptional item
under admin expenses within the profit and loss statement.

Write-down in tangible assets (GBP36.9 million)

The directors have determined that there has been a permanent
impairment to the value of tangible assets in centres expected to
trade at a loss or to be closed, in total or in part, before the
end of the lease term.

Administration Expenses

Write-down of acquisition goodwill (GBP4.0 million)

The directors have determined that there has been a further
impairment to the value of goodwill arising from prior year
acquisitions and have written off the balance in its entirety.

Fees in respect of aborted business sales and mergers (GBP0.7
million)

Professional fees incurred on possible business disposals and
mergers subsequently aborted.

Business interruption insurance receipt (credit of GBP3.8
million)

Partially offsetting the above charges, monies were received for
the loss of a business centre, following the tragic events of 11
September 2001.

Prior year exceptional items

The exceptional pre-tax charge of GBP90.5 million in 2001
included costs related to the reduction in workstation capacity
(GBP37.4m), restructuring costs (GBP5.4m), write-down related to
ESOP (GBP32.6m), write-down of software development assets
(GBP4.6m), fees in respect of the aborted merger with HQ Global
Workplaces (GBP3.3m), write-down of acquisition goodwill
(GBP4.9m) and non-recoverable Ryder Cup expenditure (GBP2.3m).

Profit/(loss) on sale of group undertakings

In the year, two Group undertakings were sold which generated a
GBP22.7 million net profit. The most significant transaction was
the sale of a 58% interest in the UK business to Alchemy
Partners, which contributed GBP23.0 million.  In addition, the
Romanian business was sold to a franchisee at a small loss of
GBP0.3 million.

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

CONTACT:  REGUS PLC
          Financial Dynamics
          David Yates
          Phone: +44 20 7269 7291
          Robert Gurner
          Phone: +44 20 7269 7221


SCOTTISH & NEWCASTLE: Confirms Sale of Managed Retail Business
--------------------------------------------------------------
The Board of Scottish & Newcastle (S&N) announces that:

The Group intends to make a full disposal of its Managed Retail
business of 1,450 pubs, restaurants and lodges.

The Group is in advanced stages of negotiation to acquire full
control of Sociedade Central de Cervejas (SCC), the Portuguese
brewer in which the company currently has a 49% stake.  In
addition, S&N is in advanced negotiations to acquire the
associated water business - Sociedade da Agua de Luso (SAL).

The boards of S&N and HP Bulmer Holdings plc (Bulmer) have
announced the terms for a recommended offer for the shares of
Bulmer.

The Group intends to maintain its dividend policy for the year
just ended, and re-base the dividend to two thirds of its current
level thereafter to reflect the transformation of the Group's
earnings base.

Trading for the year to April 2003 is in line with expectations.
These announcements confirm S&N's position as a powerful and
focused force in international brewing with:


(a) Strong market positions across Europe; leadership in three
out of the top six beer markets, the UK, France and Russia.

(b) An outstanding brand portfolio including three of Europe's
top ten brands, Foster's, Kronenbourg, and Baltika.

(c) A balanced business with strengths in high value, developed
markets in Western Europe, and higher growth markets in Eastern
Europe.

(d) Strong distribution platforms covering a population of more
than 350 million people across Europe.

(e) A track record of successful partnerships in international
beer, including the successful joint venture in Portugal.

(f) The ability to add value to strong beer distribution
platforms by integrating the marketing and distribution of other
beverages.

(g) An experienced management team focused on continuing
operational enhancement of the beer businesses.

Proposed disposal of Managed Retail business

In December 2002, S&N confirmed that it intended to release
capital from its retail estate through an innovative `sale and
manage-back' agreement for part of the estate. In this structure
the assets would have been sold outright with a grant back to S&N
of a long-term management contract to operate the business on
behalf of the new owners. Negotiations to conclude this agreement
made good progress; a preferred party was chosen following a
competitive process, due diligence was conducted and contract
negotiations were effectively concluded at the top end of the
range of values previously indicated.

However, it has become increasingly apparent that a number of
credible and well-funded groups have an interest in investing in
managed retail estates, thus stimulating a new phase of
consolidation. In these new circumstances, the Board believes
that the best option to maximize value for the shareholders of
S&N and to optimize the growth prospects of the Managed Retail
business is to pursue actively a disposal of the whole business.

For S&N Retail, one of the leading businesses in the managed
retail sector, this process will best enable it to participate in
the future development of the industry.

The intended disposal of the Managed Retail business will be
effected through an auction, managed by S&N's advisers, Deutsche
Bank and UBS Warburg, starting immediately. The intended disposal
will require the approval of S&N's shareholders in due course.
Completion is targeted before the end of 2003.

It is intended that a supply contract will be negotiated as part
of the disposal.

Information on the Managed Retail business

S&N Retail is one of the UK's leading managed pub companies,
comprising 1,450 outlets. The estate has high average sales per
unit (GBP14k per week), with a significant bias to food led and
suburban locations (notably through the Chef & Brewer chain). In
Premier Lodge, S&N Retail has the third largest budget hotel
brand in the UK, with 8,200 rooms.

In the year to April 2002, the current estate of S&N Retail
generated EBITDA of GBP272m on turnover of GBP1,009m. The current
net book value of the Managed Retail business is circa GBP2.3bn.

Financial Impact

The proceeds from this disposal will have a significant effect on
the capital structure of the business. By reducing net debt the
disposal will provide additional flexibility in financing the
development of the beer business both in the UK and
internationally. The Board remains committed to maintaining an
efficient capital structure, and will take appropriate actions to
maintain this efficiency.
The disposal of the Managed Retail business will be earnings
dilutive, but will enhance the Group's free cash flow.

Beer Business Developments

S&N has today announced two developments that, once completed,
will further strengthen its core business. Both transactions are
expected to be earnings enhancing in the first twelve months of
ownership.

Bulmer

The Boards of S&N and Bulmer have announced that they have
reached agreement on the terms for a recommended cash offer of
310p per ordinary share of Bulmer.

Bulmer is the UK's leading cider company with a 53% share of the
cider market. It produces, markets, sells and distributes high
quality cider and other products, including Strongbow, the UK's
leading cider brand, with a market share of 42% of branded cider,
volume growth of 4%, and annual volumes exceeding 1.1 mhl.

The acquisition of Bulmer will create many opportunities to
enhance the performance of Bulmer's brands by marketing and
selling them as part of Scottish Courage's portfolio of leading
brands. In particular, Scottish Courage plans to build further on
Strongbow's strong growth in the UK market. In addition to the
GBP6m of savings already announced as part of the existing
management's turn-around plan, the acquisition will result in
significant cost efficiencies, currently planned to be at least
GBP10 million per annum.

Full details of the offer are contained in a separate
announcement made today.

Portugal

S&N is in advanced negotiations to acquire full control of SCC,
the Portuguese brewer and distributor, in which the company
currently has a 49% stake. S&N intends to acquire the remaining
51% stake in the business from its joint venture partners.

In addition, S&N is in advanced negotiations to acquire the
associated water business - SAL. SAL is a leading producer of
branded mineral and spring water, including Luso, the number one
bottled water brand in Portugal. SCC and SAL are already
considerably integrated operationally, with SCC taking
responsibility for brand marketing and on-trade distribution.

This acquisition will be a logical evolution of a very successful
joint venture partnership. Since the joint venture formation
nearly three years ago, the SCC business has performed extremely
well, under a strong and committed local management team. The
investment in Portugal demonstrates the success of S&N's strategy
of working alongside local partners and investing in businesses
with strong market positions, strong brands and effective
distribution.

Dividend policy

The transactions announced today are expected to transform the
Group into a focused international beer business with a
considerably different cashflow, capital expenditure profile and
earnings base. The Board has therefore reviewed the current
dividend policy and has decided to re-base the dividend to an
appropriate level for the requirements of the business in its new
shape, while continuing to reward shareholders with an attractive
level of income.

The Board's intention is that the final dividend for the year
ending April 2003 (to be paid in September 2003, subject to
shareholders' approval at the AGM in August) will be in line with
current market forecasts. Thereafter, the intention is that the
total full year dividend will be re-based to a level
approximately one third lower than the total full year dividend
for the current year.

Given the intention announced previously to move to a December
year-end, the next dividend due to be paid will be in respect of
the eight month period from April to December 2003. This
dividend, to be paid in April 2004, will be set on a pro-rata
basis (i.e. two thirds of a full year) and will reflect the re-
basing described above.

Thereafter, it is intended that interim and final dividends will
be paid in October and April in the approximate proportions of
one third and two thirds respectively of the total annual
dividend.

FRS17 - Pensions Accounting

The Group has decided to adopt FRS17 with effect from the
beginning of the new financial year. This will result in an
additional pre-tax charge to the profit & loss account in the
eight months to 31 December 2003 of GBP37m.

Under FRS17 it is anticipated that the Group will have a pension
fund deficit at 27 April 2003, net of deferred tax, estimated at
GBP470m. The Group has reviewed its level of cash contributions
to take account of the pension deficit. Going forward, on current
estimates, the Group expects to make an annual cash contribution
of around GBP80m, up from an historic level of around GBP40m.

The Group remains committed to its obligations to existing
employees and to pension funding as a key part of its
remuneration package.

Trading Update

Trading for the year to end April 2003 has continued to be in
line with expectations across the UK Managed Retail business, the
UK Beer business and the International Beer business.

In particular, in UK Beer, trading and the restructuring of the
distribution chain continues in line with the update we gave in
February.

BBH continues to perform well. We will be announcing first
quarter results for BBH on 8 May. As we have indicated
previously, relative first quarter performance has been affected
by strong comparatives last year and the reorganization of
Baltika's supply chain. However, BBH is well positioned for
further growth over the full year.

Commenting on today's announcements, Sir Brian Stewart, Chairman
said:

"The developments announced today represent important steps in
the transformation of Scottish & Newcastle, and are in the best
interests of all the Group's businesses and its shareholders.

"Scottish & Newcastle will become a focused international brewer
with a portfolio of strong brands and excellent distribution
platforms in many of Europe's best beer markets. The Group has a
highly experienced international management team recently
enhanced by the appointment of Tony Froggatt as our new Chief
Executive.

"The two developments announced today in Portugal and the UK
demonstrate that there are many exciting and value-creating
opportunities to strengthen our beer businesses.

"The decision to sell our Managed Retail business is the right
one for shareholders and the business. It has become clear in
recent months that the managed retail sector is ready to undergo
significant change and consolidation. By leading this process in
a clear way, S&N will deliver most value for its shareholders,
and offer Bob Ivell and his highly regarded management team the
best opportunity to play a leading role in the future development
of the sector."

For enquiries, contact:

Jeremy Blood (Director of Corporate Affairs)
Linda Bain (Media)
Bridget Walker (Investors)
Phone: +44 (0)131 528 2000


SEYMOUR PIERCE: Announces Disposal of Seymour Pierce Green
----------------------------------------------------------
In connection with the strategic review, the Group announces that
it has entered into a contract for the disposal of the businesses
comprising Seymour Pierce Green, the Group's private wealth
management division, to Peter Green, the managing director of
Seymour Pierce Green.
Seymour Pierce Green includes companies engaged in onshore and
offshore regulated investment management, and trust and advisory
activities.

The consideration, which is payable in cash on completion, is
BGP302,462. It comprises payment for net assets of approximately
GBP252,462 and goodwill of GBP50,000. The losses before tax
attributable to these assets in the year ended 30 September 2002
was GBP399,000.

The disposal of Seymour Pierce Green is a related party
transaction under the AIM Rules. The directors of the Group
consider, having consulted the Group's Nominated Adviser, the
investment banking division of ING Bank N.V., London Branch, that
the terms of the disposal of Seymour Pierce Green are fair and
reasonable insofar as the shareholders of the Group are
concerned. In giving its advice to the Directors, ING Barings has
taken into account the Directors' commercial assessments of the
disposal.

The disposal is conditional upon receiving regulatory change of
control approval.

ING Barings, which is regulated in the United Kingdom by The
Financial Services Authority, is acting exclusively for Seymour
Pierce Group Plc and no one else in connection to the matters
described in this announcement and will not be responsible to
anyone other than Seymour Pierce Group Plc for providing the
protections afforded to its customers or for providing advice in
relation to the contents of this announcement or any transaction
or arrangement referred to herein.

CONTACT:  ING BARINGS
          Jeremy Garrett-Cox
          Phone: 020 7767 1000
          David Bick Holborn
          Phone: 020 7929 5599


SEYMOUR PIERCE: Alchemy Acquires Investment Banking Division
------------------------------------------------------------
Further to the announcements of 29 November 2002 and 21 March
2003 regarding a possible offer for the Group and further
possible offers for Investment Banking, the Group announces that
it has entered into a contract for the disposal of Investment
Banking to Alchemy Partners and a management team led by Keith
Harris, currently Chairman of the Group, and Richard Feigen, who
is head of Investment Banking.

Investment Banking comprises the corporate finance, corporate
broking, institutional sales, research and trading, and private
client stockbrokerage businesses of Seymour Pierce Limited and
Seymour Pierce Ellis Limited. Under the terms of the transaction,
the name Seymour Pierce and all rights to the trading name will
be transferred.

The consideration, which is payable in cash on completion, is
GBP7.35 million. It comprises payment for net assets of
approximately GBP4.35 million and goodwill of GBP3.00 million.
The loss before tax attributable to these assets in the year
ended 30 September 2002 was GBP0.49 million.

Depressed markets and uncertainty in respect of the international
situation continue to negatively affect the business. Given this
background, the board believes the strategic review currently
underway is the best way of maintaining value for all our
shareholders. The disposal of Investment Banking will increase
the cash balances of the Group and will immediately strengthen
the position of shareholders.

As a result of these changes Richard Feigen will resign on
completion as a director of the Group. Keith Harris and the other
board members will remain with the Group to see through the
strategic review.

The disposal of Investment Banking is a related party transaction
under the AIM Rules. The independent directors of the Group, who
exclude Keith Harris, Richard Feigen and Nigel Wray, consider,
having consulted the Group's Nominated Adviser, the investment
banking division of ING Bank N.V., London branch, that the terms
of the disposal of Investment Banking are fair and reasonable
insofar as the shareholders of Seymour Pierce Group Plc are
concerned. In giving its advice to the Independent Directors of
the Group, ING Barings has taken into account the Independent
Directors commercial assessments.

The disposal is conditional upon receiving regulatory change of
control approval.

As announced on 21 March 2003, it remains the boards intention to
return substantially all of the Groups cash to shareholders,
subject to the successful completion of the strategic review and
necessary approvals.

ING Barings, which is regulated in the United Kingdom by The
Financial Services Authority, is acting exclusively for Seymour
Pierce Group Plc and no one else in connection to the matters
described in this announcement and will not be responsible to
anyone other than Seymour Pierce Group Plc for providing the
protections afforded to its customers or for providing advice in
relation to the contents of this announcement or any transaction
or arrangement referred to herein.

CONTACT:  ING BARINGS
          Jeremy Garrett-Cox
          Phone: 020 7767 1000
          David Bick Holborn
          Phone: 020 7929 5599




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

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

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

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