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            T R O U B L E D   C O M P A N Y   R E P O R T E R

                             E U R O P E

                 Wednesday, May 14, 2003, Vol. 4, No. 94


                              Headlines

* A U S T R I A *

RHI AG: Finalizes Restructuring on Core Business Refractories

* F R A N C E *

ALCATEL: Avanex Corp. to Acquire Optical Components Division
ALSTOM SA: Fraud Suspected, Police Raid Paris Headquarters

* G E R M A N Y *

BAYER AG: Completes Sale of PolymerLatex to Soros Private Equity
BERTELSMANN AG: Funding of Napster Focus of Vivendi Unit Suit
BERTELSMANN AG: In Preliminary Merger Talks With AOL Time Warner
BERTELSMAN AG: Sells BertelsmannSpringer to U.K. Equity Firms
COMMERZBANK AG: Bank Is Takeover Target, Says Former CEO
DAB BANK: Results for First Quarter 2003 Marks Turnaround
HVB GROUP: IPO of Bank Austria Scheduled at Beginning of July
NETLIFE AG: Releases Operating Result for First Quarter
PRO DV: Submits Improved Result for the First Quarter of 2003

* I T A L Y *

FIAT SPA: Clarifies Capital Structure Ahead of Rights Issue

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

KONINKLIJKE AHOLD: Announces Several Changes in Management
KONINKLIJKE AHOLD: U.S. Unit Head Expected to Face Calls to Quit
ROYAL KPN: To Implement New Remuneration Structure Next Year
ROYAL KPN: Strong EBITDA Increase, Reduces Net Debt Further
ROYAL KPN: Announces New Members of Supervisory Board
STORTEBOOM GROUP: Files for Insolvency Due to Avian Influenza

* S W E D E N *

TELIASONERA: Hands Over Telia Mobile Finland to Finnet Oy

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

AKER KVAERNER: Posts Loss for First Quarter
CREDIT SUISSE: Winterthur to Sell Republic Group of Companies
JULUIS BAER: Annual General Meeting of Julius Baer Holding Ltd.
SWISS RE: Sells Stake in PartnerRe, Makes CHF 230M Capital Gain
SWISS RE: Chief U.S. Economist Comments on Fed Rate Action
SWISS RE: Gives Positive Outlook, But Has to Cut Dividend

* U N I T E D   K I N G D O M *

AMP LIMITED: Develops Financial Support Package for Advisers
BRITISH ENERGY: Shares Exhibiting Unusual Stock Market Activity
BSOFTB PLC: Passes Resolutions Related to Voluntary Winding-up
BSOFTB PLC: Regulators Announces Temporary Suspension of Trading
CORDIANT COMMUNICATIONS: Receives Preliminary Buyout Approaches
ESSIENT PHOTONICS: Stripped of Intellectual Rights to Technology
MARCONI PLC: Court Sanctions Creditor Schemes, Hearing Set
SMG PLC: Suspends Increases in Basic Salaries for Executives
TRINITY MIRROR: Appoints General Manager for National Titles


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


RHI AG: Finalizes Restructuring on Core Business Refractories
-------------------------------------------------------------
RHI and Carinthia-based PI Management- und Beteiligungs GmbH
signed a contract on May 9, 2003 to sell Villas Austria GmbH,
F�rnitz/Austria. The company produces high-grade waterproofing
systems under the Villas brand for all kind of buildings.

Villas is market leader in Austria and has a strong position in
the Middle East and Europe.

For Villas and the location F�rnitz/Carinthia, the change in
ownership opens up good perspectives, as the designated Villas
management is involved in the board of management of the buyer,
too. Villas at present employs 133 people, sales revenues of the
activities for sale now amounted to EUR 36 million in the year
2002.

Financing of the transaction is ensured by Hypo-Alpe-Adria Bank
AG.

Following the sale of the Engineering division last year and by
selling Villas, RHI can widely finalize the restructuring of the
group on the core business refractories (RHI Refractories) and
the insulating division (Heraklith AG).


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


ALCATEL: Avanex Corp. to Acquire Optical Components Division
------------------------------------------------------------
Avanex Corporation (Nasdaq: AVNX), a global pioneer of cost-
effective, high-performance intelligent photonic processing
subsystem and module solutions designed to unleash the power of
the optical layer in telecommunications networks, Alcatel (PARIS:
CGEP.PA and NYSE: ALA), and Corning Incorporated (NYSE: GLW)
jointly announced today the signing of a definitive agreement
pursuant to which Avanex will acquire Alcatel's and Corning's
optical components businesses in combined transactions valued at
approximately $63.5 million based on Avanex's May 9, 2003 closing
price of $1.12 per share.

The acquisitions by Avanex will combine the complementary optical
business capabilities of three of the industry's leading
providers of optical components, modules and subsystems for fiber
optic transmission networks, and enable Avanex to offer one of
the broadest lines of advanced optical technologies and
intelligent photonic solutions to enhance the speed and capacity
of optical communications systems. After the acquisitions, Avanex
will offer products that address optical wavelength generation
and modulation, multiplexing and demultiplexing, signal
amplification, wavelength routing and dispersion compensation.
Avanex estimates that after the acquisitions, it will have over
$250 million in cash and 1,600 employees on the closing date.

Walter Alessandrini, Chairman, President and Chief Executive
Officer of Avanex, noted today: "Our acquisition of these two
complementary businesses is a logical, timely and appropriate
step for success in today's market environment. These
acquisitions position Avanex as an industry leader with a broad
customer base, full suite of industry-leading products,
competitive cost structure, strong manufacturing expertise and
worldwide R&D capabilities. In addition, there is significant
potential for synergies arising from these transactions including
immediate opportunities for cost reductions and incremental
sales."

"Avanex's strategy is to be the leading supplier of optical
solutions. Our customers want suppliers who can deliver end-to-
end solutions that are cost-effective and of the highest quality.
After the acquisitions of Alcatel's optical components division
and certain optical component business lines from Corning, Avanex
will have the scale and resources to effectively supply our
customers with their product needs."

As part of this transaction:
-- Alcatel and Corning will receive as consideration 28% and 17%
respectively of Avanex's outstanding common stock of the post-
transaction company, which currently translates into
approximately 35.2 and 21.4 million shares. Following the
transaction, Alcatel and Corning have agreed to certain
restrictions on the voting and transfer of their Avanex shares.
-- Avanex will acquire all outstanding equity of Alcatel's
optical components division. This business will include key
operations located in France and the United Kingdom.

-- Alcatel is expected to contribute over $110 million in cash,
to be finalized at closing.

-- Avanex and Alcatel will enter into a supply agreement whereby
Avanex will supply solutions for Alcatel's optical networking
products over a three-year period.

-- Assets to be purchased from Corning include optical amplifier,
dispersion compensation, and micro optics operations located in
New York and Corning modulator operations located in Italy.

-- Corning is expected to contribute over $20 million in cash, to
be finalized at closing.

-- Alcatel and Corning will assign approximately 1,400 patents to
Avanex and additionally license several thousand patents to
Avanex as part of the transaction.

-- At closing, Dr. Joseph A. Miller Jr., senior vice president
and chief technology officer of Corning, is expected to join the
Avanex Board of Directors.

Alcatel's optical component division had sales of EURO 7.3
million for its March 2003 quarter. The division's products
include lasers, photodetectors, optical amplifiers, transponders
and key passive devices such as arrayed waveguide gratings and
Fiber Bragg grating filters. Alcatel's optical component division
had 950 employees as of March 31, 2003.

The business lines to be acquired from Corning had sales of
approximately $11 million for the March 2003 quarter. Key
products from these business lines include optical amplifiers,
dispersion compensation modules, Lithium Niobate and electro-
absorptive modulators, and micro optics products. These business
lines had 490 employees as of March 31, 2003.

The companies anticipate closing the transaction by the end of
Avanex's first fiscal quarter, ending September 30, 2003, subject
to customary closing conditions, including the approval of the
stockholders of Avanex and required regulatory approvals. The
Boards of Directors of all three companies have approved the
transaction.

Citigroup Global Markets Inc. is acting as exclusive financial
advisers to Avanex with respect to this transaction.

Additional information about the acquisitions and where to find
it.

Avanex will file a proxy statement describing the transaction
with the United States Securities and Exchange Commission (SEC).
In addition, Avanex will file other information and documents
concerning the transaction and its business with the SEC. WE URGE
INVESTORS IN THE COMMON STOCK OF AVANEX TO REVIEW THE PROXY
STATEMENT AND OTHER INFORMATION TO BE FILED WITH THE SEC BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION. These documents will be
available without charge on the SEC's web site at www.sec.gov and
may be obtained without charge from the SEC at telephone number
800-SEC-0330. INVESTORS SHOULD READ THE PROXY STATEMENT CAREFULLY
BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS.

Avanex's executive officers and directors may be deemed to be
participants in the solicitation of proxies from the stockholders
of Avanex in favor of the share issuances in connection with the
acquisitions. A description of the interests of Avanex's
executive officers and directors in Avanex is set forth in the
proxy statement for Avanex's 2002 Annual Meeting of Stockholders,
which was filed with the SEC on September 23, 2002. Investors and
security holders may obtain more detailed information regarding
the direct and indirect interests of Avanex's executive officers
and directors in the acquisitions by reading the proxy statement
filed with the SEC when it becomes available.

About Avanex
Avanex designs, manufactures and markets photonic processors for
the communications industry. Avanex's photonic processors offer
communications service providers and optical systems
manufacturers greater levels of performance and miniaturization,
reduced complexity and increased cost- effectiveness as compared
to current alternatives.

CONTACT:  AVANEX
          Investor Relations
          Mark Weinswig
          Phone: 510-897-4344
          Fax: 510-897-4345
          E-mail: mark_weinswig@avanex.com


ALSTOM SA: Fraud Suspected, Police Raid Paris Headquarters
----------------------------------------------------------
French financial police raided the Paris headquarters of Alstom
SA Monday morning, following an order from judge Phillipe
Courroye, who is conducting investigations related to allegations
of fraud against the company.

Dow Jones Newswires cited judicial sources saying investigators
suspect the real estate operation conducted by Alstom in 1994
included secret commissions worth several million euros.

An Alstom spokesman confirmed the information, saying the raid
concerned a real estate operation in 1994 relating to the
construction of a new headquarters in Saint-Ouen, a Paris suburb.

He also said that Alstom is continuing to cooperate with the
investigating judge, who has reportedly been conducting an
investigation into the alleged fruad for several months.

ALSTOM is the global specialist in energy and transport
infrastructure.  However, it went into trouble when Renaissance
Cruises Inc., its biggest customer, filed for Chapter 11
protection.  The latter suffered a sharp fall in demand for
cruises after the September 11 terrorist attack in the U.S.

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

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

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


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


BAYER AG: Completes Sale of PolymerLatex to Soros Private Equity
----------------------------------------------------------------
Bayer/Degussa joint venture sold to Soros Private Equity Partners

Bayer and Degussa have sold PolymerLatex GmbH & Co. KG of Marl,
Germany, for EUR 235 million to financial investor Soros Private
Equity Partners. The transaction announced in March 2003 was
closed on May 9, 2003 after approval had been received from the
relevant antitrust authorities.

Bayer and Degussa each owned 50 percent of PolymerLatex, a joint
venture established in 1996 that has become a leading supplier of
latex products for paper, carpets/molded foam and specialty
applications.

Bayer will use the proceeds of this divestment to further reduce
net debt.


BERTELSMANN AG: Funding of Napster Focus of Vivendi Unit Suit
-------------------------------------------------------------
The music unit of Vivendi Universal filed a suit in the U.S.
District Court in New York against Bertelsmann AG over the
latter's investment in the defunct file-sharing service.

Universal Music Group claims Bertelsmann took part in copyright
infringement on the peer-to-peer network by investing in Napster.
Bertelsmann's investment in Napster amounted to more than US$85
million.

The suit, which says the German media company "deliberately and
egregiously infringed" Universal's copyrights, is seeking as much
as US$150,000 for each work that was infringed.

The file-swapping service offered by Napster was shut down in the
summer of 2001 after a federal court in San Francisco ordered it
to remove pirated music.

Universal also accused Bertelsmann of taking control of the
Napster file-swapping service to "financially benefit itself at
the expense of Universal and its artists."  It is also suing
Napster investor Hummer Winblad Venture Partners.

Music publishers are also suing the company for the same grounds.
Interestingly, Bertelsmann's BMG music arm is also among the
plaintiffs lodging complaints for copyright violations.

The Universal suit may be aimed at discouraging potential backers
of the current generation of file-sharing software providers,
says The Wall Street Journal.


BERTELSMANN AG: In Preliminary Merger Talks With AOL Time Warner
----------------------------------------------------------------
The music arms of AOL Time Warner and Bertelsmann are in
preliminary talks about a possible merger that could challenge
the position of other music companies.

The Wall Street Journal said Warner and BMG, the music division
of Bertelsmann, are reviewing possibilities of consolidating
their recorded music divisions in a 50-50 basis.

Both had earlier proposed a merger with EMI of Britain the
world's third largest music group, but interests were dampened by
regulatory concerns.

The two companies declined to comment on reports of the latest
negotiations that one person familiar with the talks call "a
little more serious this time."  People close to the German group
warned, however, a deal was not imminent.

The talks were reportedly being led by Roger Ames, chairman of
Warner Music, and Rolf Schmidt-Holtz, head of BMG.

EMI is reportedly monitoring the transaction, which could
potentially weaken its position and challenge Univeral Music as
the world's largest music group.

Both companies are beset by losses.  AOL Time Warner had an
operating loss of US$14 million in the first quarter, while
Bertelsmann had EUR399 million net loss.  The loss was mainly due
to the EUR60 million cost of restructuring and integrating Zomba,
the music label it acquired last year for EUR2.7 billion.


BERTELSMAN AG: Sells BertelsmannSpringer to U.K. Equity Firms
-------------------------------------------------------------
German media group Bertelsmann AG has finally agreed to sell its
science and trade publishing business to private equity firms
Cinven and Candover for more than EUR1 billion ($1.2 billion).

Completion of the deal will make Cinven and Candover, who managed
to beat two rival bidders for BertelsmannSpringer, Europe's
largest publishers of specialist scientific and business
journals.

The U.K. private equity firms submitted a joint bid for
BertelsmannSpringer, along with rivals CVC Capital Partners with
U.S. firm Blackstone Group and British-based academic publisher
Taylor & Francis Group, which teamed with Apax Partners.

Proceeds from the sale is likely to be used by Bertelsmann to
reduce it EUR2.7 billion ($3.12 billion) debt and pursue
acquisitions in other areas, including music, television, and
consumer publishing.

Reports indicate that Cinven and Candover will integrate
BertelsmannSpringer with KAP, the Dutch scientific journal
business which they acquired from Wolters Kluwer of the
Netherlands for EUR600 million last year.

The Financial Times said the deal, will help repair Bertelsmann's
balance sheet following last year's EUR2.3 billion acquisition of
US record laber Zomba.

That transaction breached Bertelsmann's self-imposed rule that
debt should not exceed 1.5 times annual cash flow, and increased
the pressure to sell BertelsmannSpringer.

Previously, Bertelsmann ruled out other strategic deals pending
the sale of BertelsmannSpringer, which operates 70 publishing
companies.  The group, however, has made open its intention to
participate in consolidation of the music industry and expand its
television interests.

CONTACT:  BERTELSMANN AG
          Carl-Bertelsmann-Stra�e 270
          33311 G�tersloh
           Germany
           Phone: ++49.5241.80-0
           Fax: ++49.5241.80-9662


COMMERZBANK AG: Bank Is Takeover Target, Says Former CEO
--------------------------------------------------------
The threat of a takeover by a rival looms over Germany's third-
largest bank, Commerzbank AG, even after its return to profit in
the first quarter.

Ex-CEO and head of the Commerzbank's supervisory board Martin
Kohlhaussen confirmed that the bank's share price doesn't fully
reflect Commerzbank's improved earnings yet, making the
Frankfurt-based bank an interesting takeover target.

Kohlhaussen further revealed that Commberzbank's share price is
"very unsatisfactory" and the danger of a takeover "very big".
However, he clarified that the bank is currently not in talks
with larger rival HVB Group over a possible combination.

It is noted that Commerzbank shares rose by almost two-thirds
from a low of EUR5.33 in March.  It closed at EUR8.80 last
Friday, as the bank posted its first profit in three quarters in
the first three months of this year.

The boost in profit was made possible as cost cuts took hold and
lending risks eased.


DAB BANK: Results for First Quarter 2003 Marks Turnaround
---------------------------------------------------------
-- Consolidated result before taxes: -EUR 0.776 million/ Rigorous
cost management lays the basis for profitability in fiscal year
2003

As announced DAB bank Group, Munich (http://www.dab-bank.com),
which operates in Germany and Austria, successfully managed the
turnaround, reporting a result before taxes close to break-even
at -EUR 0.776 million in the first quarter of 2003. In Austria,
the result of direktanlage.at AG was again around the break-even
point. In Q1 2002, DAB bank AG had reported a Pre-tax loss of -
EUR 9.395 million in Germany and -EUR 25.429 million for the
Group.

Rigorous cost management and the first sales success formed the
basis for the Group's near break-even result in the first quarter
of 2003. Compared to Q1 2002, the administrative expenses in
Germany were reduced by 23%, to EUR 20.835 million (Q1/2002 DAB
bank AG:  EUR 27.125 million). In view of the market situation,
with slightly more than six trades per account and year, the
executed trades were at the lower end of the expectations.

On Group level, net commission income came to EUR 12.645 million
(Q1/2002 DAB bank AG: EUR 15.038 million), net interest income
EUR 6.374 million (Q1/2002 DAB bank AG: EUR 2.678 million) and
administrative expenses EUR 23.495 million (Q1/2002 DAB bank AG:
EUR 27.125 million). Thus, the Management Board of DAB bank
regards this as the basis for break-even for the full year 2003.

In the first quarter of 2003, the Group had 458,117 customer
accounts, nearly the same as in the preceding quarter (Q4/2002
DAB bank Group: 460,714). Despite the considerable decline of
leading indices over the last three months, customer assets under
management fell only slightly to EUR 9.12 billion (Q4/2002 DAB
bank Group: EUR 9.38 billion).

Key figures                        Q1/2003  Q4/2002*   Q1/2002**
Net commission income    mn Euro     12.645    15.025     15.038
Net interest income      mn Euro      6.374     7.559      2.678
(before risk provisions)
Administrative expenses  mn Euro     23.495    57.665     27.125
Pre-tax result           mn Euro     -0.776   -33.022     -9.395
Earnings per share          Euro      -0.01     -0.69      -0.08

*  Pro-forma-figures of DAB bank AG, DIRFONDS and direktanlage.at
AG
** Figures of DAB bank AG


HVB GROUP: IPO of Bank Austria Scheduled at Beginning of July
-------------------------------------------------------------
The proposed IPO of Bank Austria Creditanstalt (BA-CA), owned by
HVB Group, is scheduled at the beginning of July, an internal BA-
CA planning document revealed, according to Financial Times
Deutschland.

The schedule of the listing lags an earlier expectation of HVB to
set the floatation at mid or late June.

Bank Austria is planning to list shares in Vienna, Frankfurt and
Warsaw, the papers also revealed.  An investor roadshow and
bookbuilding is scheduled from May 23 to July 8.  Shares will
trade in Vienna from July 9, the report says.

A maximum of a 24.9% stake in BA-CA will be sold, and 80-90% of
the shares will go to institutional investors, the paper further
indicates.

Analysts expect HVB to generate EUR1.1 billion for the stake.
Proceeds of the sale are to help the German group refurbish
capital eroded by heavy losses.

HVB incurred losses due to more than EUR2 billion bad loan
charges.  It is also selling its profitable consumer credit arm
Norisbank AG to help the company recover.


NETLIFE AG: Releases Operating Result for First Quarter
-------------------------------------------------------
-- 2.84 million EUR turnover yields operating result of minus
0.48 million EUR;

-- IT investment environment in financial services sector remains
difficult;

-- 2002 cost reduction measures take effect in operating result
slightly above plan;

Netlife AG, Hamburg (ISIN DE0006763907), achieved operating
result of minus 0.48 million EUR for the first quarter of 2003
from a turnover of 2.84 million EUR (previous year: 3.52 million
EUR). Thus, operating results remained at the previous year's
level (previous year quarter: minus 0.49 million EUR). The
reluctance of the financial services sector to invest in IT has
continued throughout the current year.

Netlife AG had previously implemented various measures throughout
last year in reaction to the difficult market environment and
improved the company's cost structure. These measures are now
visibly impacting on the current year, thus, results for the
first quarter of 2003 were slightly above those planned by the
Management Board. As at the end of the quarter, liquid assets
amounted to 1.62 million EUR and were only slightly below the
levels of the previous year's quarter and year-end 2002.

The Management Board


PRO DV: Submits Improved Result for the First Quarter of 2003
-------------------------------------------------------------
According to provisional figures PRO DV Software AG, an IT
specialist for process-optimizing and geo-based business
solutions, attained a gross performance of 4.2 (previous year:
4.8) million euros in the first quarter of this year.

Essentially this development resulted from the spinning off of
two shareholdings last year and the ongoing weakness of the
market.

The operating result (EBIT) improved to -0.75 million euros in
the first three months of 2003, compared to -1.90 million euros
in the past year. This improvement in results also reflects the
successful implementation of the extensive cost reduction program
and the consolidation of the portfolio of shareholdings.

The balance sheet situation at PRO DV continues to be a good one
with a balance-sheet total of 28.6 million euros and an equity
capital ratio of 78 percent.

The cash and cash equivalents at the end of the first quarter
were 14.49 million euros (previous year: 14.84 million euros).

With a view to the current tense situation on the market, the
current level of capacity utilization, and taking into account a
forward-looking analysis of all the business divisions and
shareholdings, the company continues to expect a gross
performance of 18.3 million euros for 2003 with an operating
result (EBIT) of -2.0 million euros.

The complete quarterly report will be available as a download in
the Internet under http://www.prodv.defrom May 15, 2003 onwards.

CONTACT:  PRO DV
          Christian Niederhagemann (Investor Relations Manager)
          Phone: +49 231 9792 341
          Fax: +49 231 9792 200
          Email: ir@prodv.de
          Home Page: http://www.prodv.de


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


FIAT SPA: Clarifies Capital Structure Ahead of Rights Issue
-----------------------------------------------------------
Industrial group Fiat moved to assure investors of its capital
structure ahead of an expected rights issue by urging creditor
banks to switch a EUR3 billion (US$3.5 billion) convertible loan
into ordinary debt.

The effort to remove conversion rights from the loan is
understood to be aimed at setting a favorable background against
which new chief executive Giuseppe Morchio will present his
rescue plan for the company.  Mr. Morchio is scheduled to unveil
his strategy at the end of June.

The simplified capital structure will make a rights issue easier.
Fiat though will have to pay a higher interest rate to persuade
the banks to switch their convertible loan.

Fiat's emergency loan agreement with banks a year ago provides
that Capitalia, Banca Intesa, Sanpaolo IMI and UniCredito
Italiano can convert the debt into shares representing more than
a quarter of the company if Fiat fails to meet targets for debt
reduction.  The talks are linked with discussions about the
rights issue.

According to the Financial Times, at least two of the creditor
banks are believed to be considering altering the convertible
into a straight loan and subscribing to part of the issue.  But
one bank is understood to have insisted to see Mr. Morchio's
rescue plan before deciding on its move.

The banks are not keen to convert the loan into shares, which
would take place at a steep premium to the current share price,
the report added.

Fiat's financial results which was presented Tuesday is expected
to give a snapshot of the company's restructuring plan.

The rights issue is aimed at raising EUR1 billion to EUR2 billion
for the support of Fiat's struggling carmaking division Fiat
Auto, 20% owned by General Motors.

Mr. Morchio and Rick Wagoner, chief executive of General Motors,
are scheduled to meet on Thursday.

According to the report, Mr. Morchio is believed to want to put
in place a new joint cost-savings agreement with GM before
presenting his restructuring plan.  The scheme would bolster the
plan and help convince GM that it should eventually inject EUR1
billion into Fiat Auto, the report says.  Fiat wants to inject
some EUR5 billion of new capital in Fiat Auto.


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


KONINKLIJKE AHOLD: Announces Several Changes in Management
----------------------------------------------------------
Ahold has nominated Arjan Both as Managing Director AMS Marketing
Service. His appointment is pending the approval of the AMS
Supervisory Board and shareholders. Both (45) is currently Senior
Vice President Marketing & Format Management Albert Heijn.
Previously, he was Vice President Ahold European Sourcing.

As his successor, Sander van der Laan, currently CEO of Gall &
Gall, has been appointed Senior Vice President Marketing & Format
Management Albert Heijn.

Van der Laan (34) was previously Unit Manager Meat & Perishables
Albert Heijn.

Felix Fernandez (40), currently Managing Director AMS, has been
appointed Vice President Merchandising Execution Peninsula at
Ahold Supermercados in Spain.

In addition, Ahold has proposed the nomination of Maarten Dorhout
Mees as CEO of Gall & Gall. Dorhout Mees (45) is currently Chief
Financial Officer Ahold Europe.

Van der Laan will remain responsible for Gall & Gall until August
1, 2003.

Dirk Anbeek (40), currently Chief Financial Officer ICA Ahold AB,
has been appointed Chief Financial Officer Ahold Europe,
effective August 15, 2003.

As his successor, Michael Korridon has been appointed Chief
Financial Officer ICA Ahold AB, effective June 1, 2003. Korridon
(40) is currently Chief Financial Officer ICA Baltics AB.

CONTACT:  ROYAL AHOLD
          Corporate Communications
          Phone: +31.75.659.57.20


KONINKLIJKE AHOLD: U.S. Unit Head Expected to Face Calls to Quit
----------------------------------------------------------------
The head of Ahold's U.S. food service unit, James Miller, will
likely be faced with renewed pressures to resign from his post,
according to a person familiar with the situation.

The supervisory board of the Dutch retailer is "more likely" to
ask for the resignation of Mr. Miller, at a meeting Tuesday, the
source told The Wall Street Journal.

Ahold's U.S. Foodservice has been involved in accounting
irregularities concerning vendor rebates that necessitate Ahold
to restate earnings by $880 million for the period between 2000
and 2002.

Mr. Miller kept his job despite the resignations of Ahold CEO
Cees van der Hoeven and finance chief Michiel Meurs, and the
subsequent management clean up after the discovery of the
accounting irregularities.  His continued stay in his post left
industry executives asking why.

Mr. Miller was cleared of knowledge in the problems in an
internal inquiry, but according to the report, an internal legal
inquiry continues, and so does investigations by the Securities
and Exchange Commission and the U.S. attorney's office in
Manhattan.

A spokesman for Mr. Miller referred all comments to Ahold.  An
Ahold spokeswoman had no comment.


ROYAL KPN: To Implement New Remuneration Structure Next Year
------------------------------------------------------------
In a letter to KPN shareholders, the Supervisory Board of KPN has
provided information about the current remuneration and severance
packages of the Chairman and members of the KPN Board of
Management, insofar as not already disclosed in the Annual Report
2002 and the Form 20F. The disclosures already made meet all
requirements under prevailing legislation in the Netherlands and
the United States.

The Supervisory Board intends to introduce a new remuneration
structure for the top management of KPN as of January 1, 2004,
including a defined link between short-term and long-term
remuneration components.

The following documents accompany this press release:

-   the letter to shareholders

-   a letter from the Minister of Finance to the Supervisory
Board of KPN concerning this subject (enclosure I)

-   'Principles of Directors' Remuneration' (enclosure II)

-   remuneration and severance packages of the Chairman and
members of the Board of Management (enclosure III)


The Hague, May 12, 2003

To all KPN shareholders

The Press has recently devoted considerable attention to the
remuneration and severance packages of certain directors and
former directors of KPN. As enclosure I shows, the Minister of
Finance has also approached KPN on this matter. For these
reasons, the Supervisory Board now wishes to give you further
information about the content and background of these packages.

You will be aware that the KPN Supervisory Board has its own
responsibility under Dutch corporate law in determining the
remuneration and severance packages of individual directors. The
Supervisory Board has a remuneration policy for members of the
Board of Management, as described in enclosure II to this letter.

This policy has resulted in the remuneration and severance
packages for Board of Management members summarized in enclosure
III.

KPN has met all legal requirements through its disclosures in the
most recently published Annual Report and in Form 20F under US
stock exchange rules.

Over the past few months, the current remuneration policy has
been a subject of renewed discussion within the Supervisory
Board. The Supervisory Board will listen carefully to any
comments made on the current policy at the forthcoming
General Meeting of Shareholders and will similarly give due
consideration in its further decision-making to the letter from
the Minister of Finance and to any guidelines put forward by the
Tabaksblat Committee, that is examining corporate governance in
the Netherlands.The Supervisory Board intends to introduce a new
remuneration structure for top management as of 1st January 2004
and it will be stated in the Annual Report for 2003.

The severance package agreed with Mr Smits of EUR 2.8 million
covers the bonus for 2002, the lump sum payable for options
expiring through his departure and the compensation due for
severance after more than 20 years of service with the company.
The total amount does not exceed the amount under the
'Kantonrechtersformule'.*


* 'District Court Formula'

The severance payment of EUR 1.6 million for Mr Pieters is based
on contractually agreed arrangements and the
'Kantonrechtersformule'.* After adoption of the annual
statements, the bonus awardable for 2002 (payable in
2003) is expected to amount to approximately 111% of basic salary
after the cut of 15% in basic salary.

The remuneration package of the Chairman of the Board of
Management was agreed in the summer of 2001 under exceptional
circumstances. KPN was on the verge of collapse. Under these
extreme conditions, the Supervisory Board was obliged quickly to
find an exceptional CEO who was additionally already sufficiently
familiar with the company to be able to set to work without
delay. Mr. Scheepbouwer was willing to swap his lengthy and
successful position as CEO of TPG for the uncertain position of
CEO at KPN only if KPN was prepared to agree some substantial
benefits, including a considerable performance-related variable
remuneration. This was reported at the time of Mr. Scheepbouwer's
introduction.

The special circumstances existing at that time mean that the
package agreed with Mr Scheepbouwer is exceptional in KPN's
remuneration policy.

With hindsight, now that KPN again finds itself in safe waters,
it is easy to contemplate a different and less generous
remuneration package. The Supervisory Board wants it to be known
that it continues to consider the remuneration package to be
justified. The Supervisory Board was and remains of the opinion
that the appointment of Mr Scheepbouwer at that time was the
right decision and that the agreement reached with him served the
interests of shareholders, employees and other stakeholders.

It is now evident that this decision has resulted in a
substantial improvement of the situation at the company and has
assured its continuity. Following Mr Scheepbouwer's arrival, the
net debt decreased from EUR 22.3 billion to EUR 11.2 billion at
the end of the first quarter of 2003; the free cashflow that was
EUR 384 million in the red at year-end 2001, was EUR 2.8 billion
in the black at the end of 2002. The margin has improved from
29.5% to 40.3% at the end of Q1, 2003.

The assessment of the rating agencies has gone up from a 'BBB-
with negative outlook' to a 'BBB positive outlook' and from 'Baa3
with prospects of a further downgrade' to 'Baa2 with prospects of
a further upgrade'. This has resulted in a recovery of
shareholder value that compares favourably with similar companies
in the telecommunications industry. The closing price of the KPN
share on the final stock exchange day before Mr Scheepbouwer's
appointment was EUR 2.38 compared with a price of around EUR 6.00
now. The stock market value of the company on 7th September 2001
was barely EUR 3 billion. It is now EUR 14 to EUR 15 billion,
whereby it should be noted that a public offering of EUR 5
billion occurred towards the end of 2001. The autonomous increase
in value in the 'Scheepbouwer' period amounts to approximately
EUR 6.5 billion. KPN's situation, considered hopeless in
September 2001, has been turned around and the company now enjoys
a positive valuation in the financial world and among employees,
customers, analysts and credit rating agencies.

Yours faithfully,

Mr A.H.J. Risseeuw
Chairman
Supervisory Board

To See Enclosures:
http://bankrupt.com/misc/Enclosures.htm


ROYAL KPN: Strong EBITDA Increase, Reduces Net Debt Further
-----------------------------------------------------------
-- Strong increase EBITDA to EUR 1,208 million
-- Net debt further reduced to EUR 11.2 billion

Net result including exceptional items

KPN reported a net profit after taxes of EUR 770 million compared
with a net loss after taxes of EUR 348 million in the
corresponding period of 2002.

Exceptional items

The exceptional items amounted to a net gain of EUR 657 million
(Q1-2002 a net charge of EUR 123 million). The main items in the
first quarter 2003 were the gain resulting from the termination
agreement MobilCom and the book profit on the sale of Directory
Services.

Profit before taxes excluding exceptional items

Profit before taxes increased from a profit of EUR 5 million to a
profit of EUR 346 million.

The main reason for this improvement was a higher EBITDA caused
by growth in the Mobile division and successful cost saving
programs in the Fixed division and Other activities. Furthermore
lower amortization, depreciation and interest charges contributed
to a higher profit before taxes.

Key developments

-- EBITDA* growth to EUR 1,208 million (Q1 2002: EUR 940 million)

-- Net debt reduced to EUR 11.2 billion (Q1 2002: EUR 15.4
billion)

-- Revenues* in core divisions increased by 5.6%

-- Free Cash Flow of EUR 582 million and cash inflow from sale of
non-core assets of approx. EUR 600 million

-- Rating improvements to BBB positive and to Baa2 with review
for further upgrade

-- Early redemption and cancellation BellSouth loan facility of
EUR 1.6 billion

* excluding exceptional items

CEO Ad Scheepbouwer

'KPN's efforts to drive down costs, improve efficiencies and
simplify the business are now clearly visible in bottom-line
profits. Whilst we have been able to raise the challenging
financial targets we set ourselves, the most rewarding aspects of
these results are the stable fixed revenues and the growth in
Mobile. Restoring real growth at KPN is a key objective of the
management.'

To See Outlook 2003 and Consolidated Statement of Income:
http://bankrupt.com/misc/Outlook.htm

Revenues excluding exceptional items

The operating revenues in the core divisions Mobile and Fixed
increased in total by 5.6% or EUR 162 million. The operating
revenues of Mobile increased by 15% or EUR 159 million,
reflecting the combined effect of increased traffic revenues and
consolidation effects.

Operating revenues of Fixed showed a 0.2% growth of EUR 3
million. Fixed Networks still realized modest growth while
Business Solutions' revenues decreased (mainly resulting from a
decrease in internal revenues and the sale of the activities of
KPN Belgium).

Total operating revenues increased by EUR 72 million (2.5%). The
growth of EUR 162 million in the core divisions was partially
offset by lower revenues of EUR 66 million in Other activities.
This is primarily a result of the partial sale of our unit
Network Construction and lower revenues from our retail
activities.

EBITDA excluding exceptional items

EBITDA of the core divisions increased by 22% or EUR 215 million,
to EUR 1,198 million.

EBITDA of Fixed improved significantly by EUR 153 million due to
cost saving programs, including the savings caused by workforce
reduction of both Fixed Networks and Business Solutions.
Furthermore, EBITDA increased due to lower purchasing costs of
traffic and network operations in Fixed Networks.

EBITDA of Mobile increased by EUR 62 million, where consolidation
effects and increased traffic volumes more than offset higher
acquisition- and marketing costs.

Total EBITDA increased by 28.5% or EUR 268 million to EUR 1,208
million. Besides the growth in EBITDA of the core divisions,
EBITDA of Other activities increased by EUR 53 million, mainly
due to the partial sale of Network Construction and cost saving
programs, including the savings caused by workforce reduction.

Cash flow

Cash flow from operating activities in the first quarter of 2003
amounted to EUR 780 million (2002: EUR 805 million). Free cash
flow amounted to EUR 582 million compared to EUR 550 million in
the first quarter of 2002.


Net debt

Net debt (interest bearing debt less cash and cash equivalents)
at the end of the first quarter of 2003 decreased to EUR 11.17
billion from EUR 12.35 billion at the end of 2002. Net debt in
the first quarter of 2003 benefited from the proceeds from the
sale of Directory Services (Telefoongids Media B.V.) of
approximately EUR 500 million, the receipt of EUR 110 million by
E-Plus from MobilCom as part of the termination agreement of the
roaming agreement between the two parties and cash flow from
operating activities.

Workforce and restructuring

At the end of the quarter, KPN employed a total of 33,060 FTEs
(full time equivalents), of which 19,484 FTEs were subject to the
KPN collective labor agreement in The Netherlands. At the end of
2002, this number was 20,533 FTEs. Of the 1,049 FTEs reduction in
Q1 2003, 512 FTEs were due to the outsourcing of non-core
activities (e.g. KPN Valley R&D activities and Logistics) and the
remainder was reduction via social plan and natural attrition.

Pensions

In the fourth quarter of 2002, KPN recognized an additional
pension charge of EUR 52 million due to the fact that the
coverage ratios at the end of 2002 of its main pension funds fell
below certain thresholds. During the first quarter of 2003,
financial markets further deteriorated. If circumstances do not
change before the end of the year, this will lead to the
recognition of an additional pension charge of approximately EUR
111 million in the fourth quarter of 2003, which will have to be
paid in the second quarter of 2004. Total shortfall is EUR 397
million. Figures mentioned above are based on the situation as
per April 30, 2003.

Financing

On March 12, 2003, Standard & Poors changed its outlook on our
senior unsecured long-term debt rating of BBB from stable to
positive, after having raised our rating to BBB from BBB- on
December 5, 2002.


On April 10, 2003, Moody's raised our senior unsecured long term
debt rating to Baa2 from Baa3, with this rating being placed on
review for further upgrade, after having changed our outlook
based on Baa3 from stable to positive on January 22, 2003.
According to Moody's, the upgrade reflects the progress that we
have made in deleveraging in 2002, and an expectation that our
free cash flow generation may enable us to continue to reduce
debt in the future.


On April 14, 2003, KPN signed a renegotiated credit facility of
EUR 1.5 billion with a term of three years and an extension
option of one year. KPN also executed the early redemption of EUR
1,638 million it had borrowed under a subordinated loan facility
from BellSouth on April 22, 2003. The entire loan facility with
BellSouth has been cancelled.

Tax consequences of the financial restructuring

At the end of 2002, KPN reported the uncertainties with regard to
the tax consequences of the financial restructuring of KPN
Mobile. As a result of these uncertainties, KPN did not recognize
any (deferred) tax liability or (deferred) tax asset in the year
ended December 31, 2002.

As of the date of this press release, the discussions with the
tax authorities are ongoing. As a result, the uncertainties with
regard to the tax consequences of the financial restructuring
remain and, as a result, no (deferred) tax liability or
(deferred) tax asset has been recognized in the first quarter of
2003.

KPN reiterates its earlier given expectation that Royal KPN, KPN
Mobile and E-Plus will not pay corporate tax during 2003 and
2004.


Sale of Planet Internet Belgium

On April 25, 2003, KPN and Scarlet Telecom completed the sale of
KPN's Belgian Internet provider 'Planet Internet Belgium' to
Scarlet. As of that date all 135 employees are employed by
Scarlet.


Hutchison 3G UK

Our subsidiary KPN Mobile received a request for GBP 150 million
of shareholder funding from Hutchison 3G UK. On April 25, 2003,
KPN Mobile announced, that after careful consideration, it has
informed Hutchison 3G that it will not grant this shareholder
loan.

Fixed

(Amounts in millions of euro or %, figures not audited)

Excluding exceptional items         Q1 2003      Q1 2002       %

Operating revenues                   1,842        1,839     0.2

EBITDA                                 782          629    24.3

EBIT                                   457          282    62.1

EBITDA margin                          42.5%        34.2%

In the first quarter of 2003, KPN continued to experience the
shift that started in 2001 from retail volumes to wholesale
volumes, as a result of services such as (local) Carrier (Pre)
Select and Internet Originating Services (or '0676-Internet
services' under which ISPs can bill their own customers for their
internet usage).

                                 Q1 2003      Q1 2002       %

Total number of connections in thousands

PSTN                             6,257        6,498    -3.7

ISDN                             1,549        1,462     6.0

Total                            7,806        7,960    -1.9


Due to the increased demand of broadband Internet, the number of
ADSL connections increased significantly to 418,000 connections
(2002: 175,000).


Total number of connections in thousands  Q1 2003  Q1 2002    %

ADSL                                          418   175   138.9


EBITDA increased due to lower payments to other operators for the
use of their network (despite stabilized revenues) and cost
savings also from the reduction in workforce.

EBIT improved due to a combination of improved operational
results (EBITDA) and lower depreciation charges stemming from the
investment optimization programs in 2001 and 2002.

Mobile

(Amounts in millions of euro or %, figures not audited)

Excluding exceptional items      Q1 2003        Q1 2002       %

Operating revenues               1,208          1,049    15.2

EBITDA                           416            354    17.5

EBIT                             151             81    86.4

EBITDA margin                    34.4%          33.7%


The 15.2% growth in operating revenues reflects higher revenues
through increased traffic revenues and consolidation effects.
Traffic revenues increased but were in part offset by lower
equipment sales. Increased traffic revenues were mainly the
result of an improved customer-mix.

In the first quarter of 2003, the total number of customers in
our markets increased from 13.4 million at December 31, 2002 to
13.5 million at March 31, 2003.  (March 31, 2002 13.6 million.)

KPN aims to strengthen E-Plus' number three position in Germany
by increasing the customer base to at least 8 million by the end
of 2003, with margins in the next quarters in the range of 20 to
25%.

The growth in EBITDA was achieved through all of our operators in
our markets and included consolidation effects (E-Plus) and the
aforementioned growth in revenues. The increase in EBIT was
mainly due to positive developments in EBITDA.

In the first quarter of 2003, the total number of i-mode
customers in The Netherlands, Germany and Belgium increased from
236,000 customers at December 31, 2002 to 285,000 customers at
March 31, 2003.


Total number of subscribers in thousands as of March 31
                           Q1 2003        Q1 2002      %

The Netherlands            4,908          5,178   -5.2

Germany                    7,446          7,334    1.5

Belgium                    1,131          1,058    6.9

Total                      13,485         13,570   -0.6

Of which i-mode            285              8


Other activities

(Amounts in millions of euro, figures not audited)

Excluding exceptional items Q1 2003        Q1 2002       %

Operating revenues          232            298   -22.1

EBITDA                       10            -43

EBIT                        -30            -91


This segment mainly comprises other and supporting activities.
Revenues decreased primarily due to the effects of the
deconsolidation of non-core assets such as Network Construction
and lower revenues from our retail activities.

EBITDA and EBIT increased as a result of reorganizations and cost
reduction programs.

Appendix 1


Exceptional Items


Amounts in millions of euro    Q1               Q1
                               2003             2002
Mobile division

Gain resulting from the termination agreement MobilCom
                               222                -

Book profit on the sale of UMC  15                -

Book profit on the sale of Pannon GSM
                                 -              335

Other activities

Bookprofit on the sale of Directory Services
                                435                -

Total impact on Operating revenues
                                672              335

Fixed division

Write-down of assets held for sale and inventories
                                 -              -28

Provision for future losses on maintenance contracts KPNQwest
                                 -             -125

Other activities

Estimated loss on the sale of Network Construction
                                 -              -63

Total impact on EBITDA          672              119

Impairment charges

Intangible fixed assets         -15                -

Goodwill on KPNQwest             -              -31

Fixed assets relating to KPNQwest
                                 -              -23

Total impact on EBIT and profit/(loss) before taxes
                               657               65

Impairment net asset value KPNQwest
                                 -             -270

Tax effect on exceptional items  -               82

Total impact on Group profit/(loss) after taxes
                              657             -123

CONTACT:  ROYAL KPN
          Investor Relations
          Phone: +31-(0)70-4460986.
          Home Page: http://www.kpn-corporate.com/


ROYAL KPN: Announces New Members of Supervisory Board
-----------------------------------------------------
Mr. J.B.M. Streppel and Mr. M. Bischoff were appointed as new
members of the Supervisory Board of KPN N.V. Mr. V. Halbertstadt
was reappointed as a member and Mr. C.H. van der Hoeven stepped
down at his own request.

Mr. Streppel (53) is a member of the Board of Management of Aegon
N.V. He previously held various management positions at Aegon
N.V., Labouchere N.V. and FGH Bank N.V. His present positions
further include membership of the Supervisory Boards of Aegon
Nederland and FGH Bank N.V.

Mr. Bischoff (61) is a member of the Board of Management of
DaimlerChrysler. He was previously Chairman of the Supervisory
Boards of Adtranz, Temic and Airbus Industries and held various
management positions at DaimlerChrysler AG. His present positions
further include membership of the Board of Management of
Mitsubishi Motors Corporation and membership of the Supervisory
Board of Bayerische Hypo-und Vereinsbank AG. He is also Chairman
of the Board of Management of the European Aeronautic and Space
Company.

                     *****

Standard & Poor's Ratings Services said in March it revised its
outlook on Netherlands-based telecommunications services provider
Koninklijke KPN N.V. (KPN) to positive from stable due to the
group's continued success in deleveraging and improving
operational performance.


STORTEBOOM GROUP: Files for Insolvency Due to Avian Influenza
-------------------------------------------------------------
Storteboom Group, the largest independent poultry processor
slaughtering approximately 24% of the total Dutch production
output, filed for insolvency after being hit by the recent
outbreak of avian influenza in the country.

Just-food.com news agency reported that the Dutch poultry
processor, based in the north of the country, is currently
seeking for an investor to help it fund its operations.

Storteboom is already having financial difficulties even before
the outbreak of disease, according to Dutch News Digest.  Intense
competition from poultry producers in Thailand and Brazil had
adversely affected the business.

The report said that two of the company's processing facilities
in the Gelderse Vallei, western Netherlands, have been closed and
350 part-time employees have been laid off.

The 750 full-time employees have been placed on temporary leave.

CONTACT:  STORTEBOOM INTERNATIONAL B.V.
          Netherlands
          Phone: + 31 (0) 594 677 519
          Fax: + 31 (0) 594 677 518
          E-mail: oleksandr.antonyuk@storteboom.nl
          Hompage: http://www.storteboom.nl/


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


TELIASONERA: Hands Over Telia Mobile Finland to Finnet Oy
--------------------------------------------------------
TeliaSonera has agreed to sell Telia Mobile Finland to Finnet OY
(DNA Finland OY, Finnish 2G OY and Suomen 3P OY). The disposal of
Telia Mobile Finland has been required by the EU for approval of
the merger between Telia and Sonera.

The deal is expected to be completed during the first half of
2003.

The transaction is conditional upon the necessary approvals from
the EU and the Finnish competition authorities.

TeliaSonera, formed through a merger of Telia and Sonera in
December 2002, is the leading telecommunications group in the
Nordic and Baltic regions. TeliaSonera is listed on the Stockholm
Exchange, the Helsinki Exchanges and Nasdaq Stock Market in the
USA. Pro forma Net sales January-March 2003 amounted to 20
billion SEK (EUR 2.2 billion). The number of employees was
28,000.

                     *****

The company said last month: "Following the merger betwen Telia
and Sonera in December 2002, and the new division of
responsibilities within the Group, an extensive overhaul has been
made of the profit center TeliaSonera Finland in order to
establish the number of jobs needed in the segment oriented
working approach and in order to achieve a competitive cost level
throughout the company."


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


AKER KVAERNER: Posts Loss for First Quarter
-------------------------------------------
In the first quarter 2003, order reserves increased and operating
profits before goodwill and pension amortisation remained at a
healthy NOK 210 million. This was in line with previous quarters,
despite a 20 percent decline in revenues, a clear sign that last
year's improvement programme is taking hold.

The first quarter marked an important change. While the order
reserve declined in the four previous quarters, the backlog at
the end of March increased to NOK 36.5 billion, up from NOK 34.6
billion three months earlier.

The order intake was NOK 10.5 billion in the first quarter, with
several important orders being booked. For both Oil & Gas (O&G)
and Engineering & Construction (E&C), order intake in the first
quarter alone equalled that of the second half of last year.

Several significant contracts have been awarded in the second
quarter. In April and May so far, contracts and letters of intent
amounting to around NOK 7 billion have been announced by the
Group. Meanwhile, some parts of the Group need new orders,
particularly the shipyards.

All business areas delivered profits in the first quarter 2003.
Earnings before interest, tax and amortisation (goodwill and
pension) (EBITA) were NOK 210 million in the first three months
this year, mainly from O&G and Shipbuilding. E&C reported a NOK
35 million profit, still marginal but higher than in any quarter
last year. The first quarter profit included a gain of
approximately NOK 60 million from sale of properties in Aberdeen.

Amortisation, including that related to the UK pension plan,
amounted to NOK 166 million and net financial items were negative
NOK 82 million. Loss before tax was NOK 38 million, down from
previous quarters but in line with earlier outlook statements.

Working capital increased as planned by NOK 1.5 billion in the
first quarter, mainly within Shipbuilding. Correspondingly, cash
and short-term interest-bearing receivables were reduced to NOK
3.7 billion and net interest-bearing debt was NOK 740 million.
The equity ratio remained at 27.5 percent.

As indicated previously, profits will remain relatively weak in
the first half of the year, due to weak markets and
correspondingly low order intake in 2002. Profits will increase
in the two last quarters of 2003 when the new orders take effect.

Further information The following supplementary information is
available on both Aker Kvaerner's home page www.akerkvaerner.com
and on the Oslo Stock Exchange http://www.oslobors.no

CONTACT:  AKER KVAERNER ASA
          Phone: +47 67 51 30 36
          Investor Relations
          Tore Langballe, Vice President, Group Communications


CREDIT SUISSE: Winterthur to Sell Republic Group of Companies
--------------------------------------------------------------
Winterthur announced that it is selling its Republic group of
companies, Winterthur's regional operation in the Southwestern
US, to an American investor group led by Wand Partners Inc. The
contract price is USD 127 million.

Subject to approval by the appropriate regulators, the
transaction is expected to be completed in the second half of
2003.

Following the sale, Winterthur will take advantage of closer
affiliations within its three remaining U.S. operations to
strengthen their business model and further enhance their
profitability.

                     *****

Credit Suisse said in its first quarter financial statement that
Winterthur's results recovered further in the first quarter, with
both Life & Pensions and Insurance improving their profitability
versus the fourth quarter due primarily to increased investment
income, tariff increases and lower administration costs.


JULUIS BAER: Annual General Meeting of Julius Baer Holding Ltd.
--------------------------------------------------------------
This year's regular annual general meeting of Julius Baer Holding
Ltd. is scheduled for Wednesday May 14, 2003 at 4.00pm at the
Kongresshaus in Zurich, Switzerland.

Agenda

-- Annual report, financial statements and Group accounts for the
year 2002, reports of the Statutory and the Group Auditors
-- Appropriation of disposable profit
-- Discharge of the Board of Directors
-- Elections to the Board of Directors
-- Appointment of the Statutory and the Group Auditors
-- Partial conversion of registered shares into bearer shares and
capital reduction
-- Election of the Chairman of the Board
-- Miscellaneous

For further information please see the invitation form. Speeches,
presentations and the press release with results and decisions
will be published immediately after the meeting.


SWISS RE: Sells Stake in PartnerRe, Makes CHF 230M Capital Gain
----------------------------------------------------------------
Swiss Re has agreed to sell its remaining shareholding in
PartnerRe, comprising about 16% of PartnerRe's shares. As a
result of the sale, Swiss Re's capital gain is expected to be CHF
230 million.

On April 29, 2003, Swiss Re requested that PartnerRe file a
registration statement with respect to Swiss Re's 8.3 million
shares in PartnerRe with the United States Securities and
Exchange Commission (SEC). The registration statement was
declared effective by the SEC on May 5, 2003.

Swiss Re was the sponsoring investor in PartnerRe's formation in
1993. The sale is in line with Swiss Re's strategy to actively
allocate capital to its core reinsurance business, where
conditions are currently positive. Swiss Re's capital gain from
the sale is expected to be CHF 230 million.

The transaction is expected to close on Friday May 9, 2003.

Swiss Re is a leading reinsurer and the world's largest life and
health reinsurer. The company is global, operating from 70
offices in 30 countries. Since its foundation in 1863, Swiss Re
has been in the reinsurance business. Swiss Re has three business
groups: Property & Casualty, Life & Health and Financial
Services. Swiss Re offers a wide range of traditional reinsurance
products and related services, which are complemented by
insurance-based corporate finance solutions and supplementary
services. Swiss Re is rated "AA+" by Standard & Poor's, "Aa1" by
Moody's and "A++" by A.M. Best.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy common stock or any other
securities of PartnerRe, nor will there be any offer,
solicitation or sale of common stock or any other securities in
any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification
under the securities laws of such state or jurisdiction. A
prospectus relating to the proposed common stock offering may be
obtained by contacting the underwriter in connection with the
transaction: Citigroup Global Markets Inc., Brooklyn Army
Terminal, 140 58th Street, 8th Floor, Brooklyn

CONTACT:  SWISS RE
          Investor Relations
          Phone: + 41 43 285 4444


SWISS RE: Chief U.S. Economist Comments on Fed Rate Action
----------------------------------------------------------
Following an announcement that the Federal Reserve Board would
hold the target federal funds rate at 1.25 percent, Swiss Re
chief economist Kurt Karl said, "Though the Fed is on hold for
now, given the deteriorating economic environment in recent
months it has shifted its bias to easing. We expect the Fed to
cut rates by October, because the economy is unlikely to grow
rapidly in the near future.

"The Iraq situation, rising oil and natural gas prices, and cold
weather combined to weaken growth significantly in the first
quarter and reduced momentum into the current quarter," said
Karl. "The rate of growth is now sufficiently weak to warrant
another cut in interest rates. Inflation is not a problem and
unemployment is rising - classic signals for a Fed cut. Though
the Iraqi conflict clouded the economic situation for a time, job
losses of over a half million in three months should convince the
Fed that monetary easing is required. The likelihood of a double-
dip recession, though down slightly, is still high - about 25
percent.

"Europe is currently economically weaker than the US and the
appreciation of the euro is not helping its fragile recovery,"
Karl added. "Hence, the European Central Bank is likely to lower
interest rates again in the near future, particularly since
inflation is not much of a threat. The Bank of Canada will
continue to raise interest rates, despite the U.S. weakness,
because of strong growth and increasing inflationary pressures."

Swiss Re is a leading reinsurer and the world's largest life and
health reinsurer. The company is global, operating from 70
offices in 30 countries. Since its foundation in 1863, Swiss Re
has been in the reinsurance business. Swiss Re has three business
groups: Property & Casualty, Life & Health and Financial
Services. Swiss Re offers a wide range of traditional reinsurance
products and related services, which are complemented by
insurance-based corporate finance solutions and supplementary
services. Swiss Re is rated "AA+" by Standard & Poor's, "Aa1" by
Moody's and "A++" by A.M. Best.

                     *****

Swiss Re's 2002 result was a loss of CHF 91 million due to the
decline in world stock markets.

CONTACT:  SWISS RE
          Michael McNamara
          Phone: +1 212 317 5663
          E-mail: michaelD_mcNamara@swissre.com
          Alayna Tagariello
          Phone: +1 212 317 5472
          E-mail: alayna_tagariello@swissre.com


SWISS RE: Gives Positive Outlook, But Has to Cut Dividend
---------------------------------------------------------
The chairman of Swiss Reinsurance, Peter Forstmoser, told
shareholders at an annual meeting in Zurich that the reinsurance
industry is benefiting from favorable conditions.

The world's second-largest reinsurer after Munich Re is hoping to
return to profitability this year after posting a net loss of
CHF91 million in 2002 due to declining equity markets. Impairment
charges, primarily on equities, of CHF 3.9 billion ultimately led
to the loss, the company said.

But while Mr. Forstmoser is giving an upbeat outlook for the
insurer's business, the company still has to cut its dividend to
CHF1 a share, from CHF2.50.

The meeting which approved the cuts also elected Novartis AG's
chief financial officer, Raymund Breu, and former General Motors
Corp. chairman John Smith to Swiss Re's board of directors.

Swiss Re, which operates from 70 offices in 30 countries, has
three business groups: Property & Casualty, Life & Health and
Financial Services. It has been in the reinsurance business since
1863.


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


AMP LIMITED: Develops Financial Support Package for Advisers
------------------------------------------------------------
AMP Limited, the locally owned public company that is ranked
number 40 out of the top 2000 companies in Australia, has
reportedly devised a financial support package for its 1,500
self-employed advisers in the county.

The Sydney Morning Herald newspaper reported that AMP developed
the package in an effort to stop the advisers from leaving the
company, which recently announced that it would break down its
business into two separate and distinct groups.

The package is also designed to compensate them for the battering
the brand and its shares have taken over the past year, it said.

An aspect of the plan is believed to involve AMP matching any
money spent on marketing by the planners to assure nervous
customers that the company's troubles do not warrant stoppage of
investments in it.

The chief executive of the Australasian Association of AMP
Advisers, Neil Whelan, described the move as a positive step as
AMP's advisers are still feeling the "pain".

AMP recently had its ratings downgraded by rating agency Moody's,
following the Australian group's announcement of its intention to
raise AU$1.5 billion of new equity capital as part of its
demerger plan.

AMP plans to break down its business into two separate and
distinct groups, one containing the majority of the UK businesses
(UK plc), and the other retaining the Australasian businesses
(new AMP).  Both groups will be operationally and financially
independent.

CONTACT:  AMP LIMITED
          Level 24, 33 alfred Street
          Sydney NSW 2000 Australia
          ABN 49 079 354 519
          Contact: Mark O'Brien, Investor Relations
          Phone: 9257 7053


BRITISH ENERGY: Shares Exhibiting Unusual Stock Market Activity
---------------------------------------------------------------
British Energy's American depository receipts rose by 47% to
US$9.25 following last week's indication from Britain's
Department of Trade and Industry that it would remove certain
barriers to the company's restructuring.

The nuclear generator's shares also recently traded at $8.45, up
$2.16, or 34.3%, on composite volume of 508,300 shares at the New
York Stock Exchange.  Average daily volume is 246,832 shares.

The company's stock rose 38.9% Friday, and closed at $6.29.

The unusual stock market activity prompted the NYSE to ask
British Energy to issue a a public statement on indicating
whether there were any corporate developments which may explain
the unusual stock activity.

But the energy company declined to comment saying its policy is
to not issue statements on unusual stock market activity or
rumors.

British Energy obtained a GBP650 million emergency loan last year
after electricity prices in the UK took a plunge.  This loan was
extended to September 2004, but the amount was reduced to GBP200
million.

CONTACT:  BRITISH ENERGY PLC
          3 Redwood Crescent, Peel Park
          East Kilbride, Strathclyde G74 5PR,
          United Kingdom
          Phone: +44-135-526-2000
          Fax: +44-135-556-5656
          Home Page: http://www.british-energy.com
          Contact:
          Paul Heward, Investor Relations
          Phone: 01355 262201


BSOFTB PLC: Passes Resolutions Related to Voluntary Winding-up
--------------------------------------------------------------
BSOFTB Plc announces that all the resolutions proposed at the EGM
held today [Monday] were passed. The resolutions proposed all
related to the voluntary winding-up of the company and the
distribution of the company's assets to its shareholders.

Accordingly, this process will continue and the admission of
BSOFTB's ordinary shares to trading to AIM will be cancelled with
effect from 8.00 a.m. on May 13, 2003.

                     *****
The company detailed in April the voluntary winding-up process as
follows:

The members' voluntary winding-up process enables a company which
is able to meet all of its liabilities to formally wind-down its
affairs under the Insolvency Act 1986 with the requisite consents
of its shareholders.

This process started yesterday [April 16, 2003] when the Board
met to consider and approve:

1. a statutory declaration of solvency of the company under which
the directors of the company confirmed that they have made full
enquiry into the company's affairs and they made a statement that
the company will be able to pay its debts and any interest due
within twelve months of any shareholder resolution to wind the
company up; and

2. a notice to be sent to shareholders of the company convening
an extraordinary general meeting of the company to consider
various shareholder resolutions relating to the proposed winding-
up. The EGM will take place on 12 May 2003 at 12 noon and will be
held at the offices of BSOFTB's solicitors, DLA at 101 Barbirolli
Square, Manchester M2 3DL.

Procedure at the EGM

In order to approve the voluntary winding-up of the company the
EGM is being convened to consider four shareholder resolutions
which are set out in the Notice and are as follows:

(1) 'That the company be voluntarily wound up.'

The purpose of this resolution, which will be proposed as a
special resolution, is to wind-up the company for the reasons
mentioned.

(2) 'That Paul Stanley of Begbies Traynor be and is hereby
appointed as liquidator for the purposes of such winding-up.'

The Board recommends that Paul Stanley of Begbies Traynor be
appointed as liquidator and it will be his responsibility to
administer the wind-down of the company.

(3) 'That in accordance with the provisions of the company's
articles of association, the liquidator be and is hereby
authorized to divide among the members in kind all or any part of
the company's assets.'

Once the liquidator has paid-off the company's liabilities he
will return the company's assets to its shareholders and this
resolution authorizes the liquidator to do that.

(4) 'That the liquidator's fees payable by the company in
relation to the winding-up are approved at a rate of 0.2% of the
company's assets.'

The Board recommends that the liquidator's fees are calculated in
accordance with the resolution set out above.

Following the EGM and if the proposed resolutions are passed, an
advertisement regarding the winding-up will be placed in the
London Gazette within fourteen days along with advertisements in
appropriate national and local press. This will enable the
liquidator to establish and finalise the liabilities of the
company to be met before its assets are returned to its
shareholders.

Recommendation

The Board considers the resolutions to be proposed at the EGM to
be in the best interests of the company and shareholders as a
whole. Accordingly, the directors of BSOFTB unanimously recommend
that shareholders vote in favor of the resolutions to be proposed
at the EGM, as they intend to do in respect of their own holdings
and related trusts amounting in aggregate to 17,441,541 Ordinary
Shares, representing approximately 50.4 percent. of the existing
issued ordinary share capital of the company.

CONTACT:  BSOFTB PLC
          Phone: 0161 266 1008
          Bob Morton, Chairman
          Fiona Morris, Chief Executive


BSOFTB PLC: Regulators Announces Temporary Suspension of Trading
----------------------------------------------------------------
At the request of the company trading on AIM for the under-
mentioned securities has been temporarily suspended from May 12,
2003 7:00am pending an announcement.

Ordinary Shares of 10p each        (0-563-105)(GB0005631055)
          fully paid


If you have any queries relating to the above, please contact AIM
Regulation at the London Stock Exchange on 020 7797 4154


CORDIANT COMMUNICATIONS: Receives Preliminary Buyout Approaches
---------------------------------------------------------------
Cordiant (NYSE:CDA) (LSE:CRI) announced on April 29, 2003 that it
had received very preliminary approaches that could lead to an
offer for the company. Since then, Cordiant has been actively
evaluating a range of more detailed proposals, including possible
offers for the company or involving its recapitalisation.
Cordiant's Board continues to pursue discussions with various
parties, which it is seeking to bring to a conclusion in the near
future in the best interests of the company and its clients.
However, none of the proposals currently under consideration is
likely to result in an offer at the current share price.

In the meantime, the non-core disposal program already announced
continues to make good progress and in the case of certain of the
company's assets, has reached an advanced stage

Throughout these developments, Cordiant has continued to work
closely with its lenders. Cordiant's Board is encouraged by both
the support of its lenders and the constructive discussions that
continue concerning the short-term and long-term funding of the
group.

The Board will continue to keep shareholders informed of
developments.

CONTACT:  CORDIANT COMMUNICATIONS
          Phone: +44 (0) 20 7262 4343
          David Hearn, Chief Executive Officer
          Andy Boland, Finance Director
          Nathan Runnicles, Head of Investor Relations

          COLLEGE HILL
          Phone: +44 (0) 20 7457 2020
          Alex Sandberg
          Adrian Duffield


ESSIENT PHOTONICS: Stripped of Intellectual Rights to Technology
----------------------------------------------------------------
The issues surrounding the collapse of Essient Photonics are
further complicated with the revelation that the former hi-tech
star did not own the intellectual property for its technology.
The company's first round of funding amounted to GBP4.9 million.

Established in February 2002, Essient's technology is based upon
eight years of leading edge research. The company designs and
manufactures optoelectronic components, and offers products that
demonstrate significant reductions in physical size and power
dissipation.

According to The Herald, under its start-up agreement, Essient
had to wait for the second-round funding to have the patent.  But
the failure of the GBP9.7 million funding was actually what
ushered the collapse of the former technology this month.

London-based Pond Ventures, which led Essient's first-round
funding deal, said talks towards securing the amount fell because
Essient failed to reach "certain milestones by this point, such
as delivering commercial prototypes," although the Glasgow
Universtiy, where its research is conducted, insisted it
continues to own the intellectual property.

Industry observers blamed the company's demise to the prolonged
economic downturn which dampened investors interest in tech-
oriented businesses.

But some creditors are blaming Scottish Enterprise for supporting
a company they say say placed orders but had no funds to pay the
bills.

The recent development also complicates the role of Kroll Buchler
Phillips, the accounting firm whose Glasgow partnership is acting
as the liquidator on behalf of the long list of creditors who are
owed money by the company, according to the report.

In the absence of the intellectual property, the liquidator is
expected likely to have a difficult time finding a buyer for the
company, since Essient had not yet developed a commercial
commodity.

Previously, Fraser Gray, a partner at Kroll Buchler Phillips,
said he expected unsecured creditors would be owed GBP500,000, on
top of about GBP5 million owed to secured creditors, such as
venture capitalists.

But without the intellectual property, the book value of the
company will certainly be reduced, making it less likely for
unsecured creditors to recover their money.

Gray said: "Essient, of course, still has physical assets, such
as some machinery, staff, and it also has its goodwill.

"But it is true that the intellectual property holds the key to
the value of the company.

"We are now in discussions with the university, and although this
process isn't as straight forward as it would have been if
Essient had owned the intellectual property, we don't see this as
a barrier to sale."

Essient received GBP177,000 from Scottish Enterprise, and
GBP45,000 from Scottish Enterprise Lanarkshire.


MARCONI PLC: Court Sanctions Creditor Schemes, Hearing Set
----------------------------------------------------------
Marconi plc (MONI) announces that U.K. Court orders were obtained
today [Monday] to sanction the plc and Marconi Corporation plc
schemes of arrangement. The US Bankruptcy Court hearing is
scheduled to take place on May 14, 2003 following which a further
announcement will be made.

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


SMG PLC: Suspends Increases in Basic Salaries for Executives
------------------------------------------------------------
Debt-laden newspaper publisher SMG suspended executive basic pay
hike last year due to continued advertising weakness that
significantly affected profitability.

Chief executive Andrew Flanagan will still receive a basic salary
of GBP400,000. A GBP64,000 bonus plus benefits, though, made his
total package rise 16% to GBP476,000.  The bonus is given for
reaching personal targets, and is not profit performance-related.

SMG refused to say whether the freeze in salaries will again
happen this year.  The publisher is not expecting a turnaround in
advertising revenues until 2004.

The company, which reported a full-year, pre-tax-loss of GBP16.1
million last year, sold its publishing business to Gannett last
month to halve a GBP400 million debt load.

CONTACT:  SMG PLC
          Andrew Flanagan, Chief Executive
          Phone: 0141 300 3300

          George Watt, Group Finance Director
          Callum Spreng, Corporate Affairs Director

          Brunswick
          James Hogan
          Ben Brewerton
          Phone: 020 7404 5959


TRINITY MIRROR: Appoints General Manager for National Titles
------------------------------------------------------------
Trinity Mirror appointed Ellis Watson as general manager of the
company's national titles as part of a revamp of the newspaper
publisher's management structure.

Mr. Watson, who is currently managing director of Celador
International, will be responsible for Daily Mirror, Sunday
Mirror and The People.  He will assume direct responsibility for
advertising, circulation and marketing at the newspapers.  Mr.
Watson worked for 10 years as marketing director at the Sun and
News of the World.

Flagship title Daily Mirror has suffered from a significant
decrease in circulation following a disastrous price war with
U.K.'s best-selling paper, the Sun.

According to the Financial Times, the stance of the Daily Mirror
editor, Piers Morgan, to take a harsh anti-war stance before and
after hostilities in Iraq broke out has also been blamed for the
drop in readership.  Mr. Morgan decided to focus on "hard news"
and less on celebrity gossip following the September 11 attacks.

In an effort to increase circulation, Ms. Bailey plans to cater
to the taste of readers who live outside London.  Part of the
move is highlighted by the 14-day summer diet program featured on
the paper's Monday edition.

Ms. Bailey, which joined Trinity from IPC, the magazine group
owned by AOL Time Warner, is launching a strategic review of the
company due to be announced in July.

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

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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
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