/raid1/www/Hosts/bankrupt/TCREUR_Public/030721.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

             Monday, July 21, 2003, Vol. 4, No. 142


                            Headlines


F R A N C E

ALSTOM SA: Nexans Outbids Areva with EUR1.05 Bln Offer for Unit
ASSURANCES GENERALES: Talks to Credit Foncier over Entenial Sale
BSN GLASSPACK: Proposed Secured Notes Assigned 'B-' Rating
SCOR: Fitch Comments on Proposed Life Reinsurance Spin-off


G E R M A N Y

DEUTSCHE NICKEL: Meets Financial Covenants for EUR120 Mln Bond
FT DEUTSCHLAND: Pearson Mulls Stake Sale to Gruner & Jahr
KAMPS AG: Fitch Puts 'BB' Debt Rating on Watch Positive
RWE GROUP: Harpen CEO Widera Takes Over New Management Function


I R E L A N D

ELAN CORPORATION: Misses U.S. SEC Deadline for Annual Report


I T A L Y

ALITALIA SPA: Inks Code-share Agreement with Air France


N E T H E R L A N D S

NUMICO N.V.: Completes Management Buyout of Unicity Network
PETROPLUS INTERNATIONAL: Credit Facility Raised to US$580 Mln
PETROPLUS INTERNATIONAL: 'B+' Rating Placed on Watch Negative
PETROPLUS INTERNATIONAL: Issues Warning Regarding Q2 Earnings
ROYAL PHILIPS: Ratings Cut to 'BBB+' Due to Weak Credit Profile


P O L A N D

BANK MILLENNIUM: Appoints New Member to Management Board
BANK MILLENNIUM: To Offer Up to PLN5 Billion Worth of Bonds
MOSTOSTAL ZABRZE: Deloitte Doubts Firm's Viability
UPC POLSKA: Court Sets September 2, 2003 as Claims Bar Date


S W I T Z E R L A N D

JULIUS BAER: Leaves Institutional Brokerage for Asset Management
SWISS INTERNATIONAL: Cabin Crew Unions OK Redundancy Plan
SWISS LIFE: U.K. Operation Closes to New Individual Business
ZURICH FINANCIAL: Consolidates Two European Data Centers


U N I T E D   K I N G D O M

ABERDEEN ASSET: To Take Center Stage in Industry-wide Inquiry
ABERDEEN ASSET: Clears Rumored Sale of Property Management Biz
BIG FOOD: Shareholders Approve All Resolutions at Annual Meeting
CORDIANT COMMUNICATIONS: Regulator Says Ojjeh Violated City Code
CORUS GROUP: Open to Revival of Sale Talks with Pechiney

GROUND FLAT: Management Buys out Firm; Averts Total Shutdown
HAMLEYS PLC: Children's Stores Refuses to Up Bid; Cancels Offer
HAMLEYS PLC: Recommends Soldier's Revised Increased Offer
HAWTIN PLC: Appoints Stephen Morgan Executive Director
MARCONI CORPORATION: Issues Trading Update for Past Three Months

MARCONI CORPORATION: Sells Umts Business to Finmeccanica
MARCONI CORPORATION: Partially Redeems Secured Notes Due 2008
MOTHERCARE PLC: To Highlight Sales Recovery in Next AGM
NETWORK RAIL: Recovery Still Far, Rail Passenger Council Says
NETWORK RAIL: Rail Regulator to Support Commercial Paper Program

ROYAL MAIL: Improves Efficiency of Delivery System
TELEWEST COMMUNICATIONS: Influential Bondholder Gets Board Seat
THISTLE HOTELS: Delisted from Footsie


                            *********


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F R A N C E
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ALSTOM SA: Nexans Outbids Areva with EUR1.05 Bln Offer for Unit
---------------------------------------------------------------
French cable maker Nexans beat last week the EUR1 billion offer of
state-owned nuclear power firm, Areva, for Alstom SA's profitable
transmission and distribution unit, the Financial Times said.

Citing French business paper Les Echos, the Financial Times reported that
Nexans offered a EUR1.05 billion (US$1.18 billion) for control of the
division that specializes in equipment used to transport electricity between
power plants and consumers.
When Alstom CEO Patrick Kron confirmed receipt of Areva's EUR1 billion-
offer for the unit at the beginning of the month, Areva was considered the
sole contender for the unit, as some even believed Nexans has already walked
out of the process.  But the French cable maker surprised everybody with its
EUR1.05 billion offer.

Still, Areva is seen as the frontrunner in the bidding since it can pay
cash, while Paris-traded Nexans has yet to secure financing for the deal.
The loss-making cable specialist has enterprise value of less than half the
transmission and distribution unit's price tag.  Nexans has a three-part
plan for the unit, according to sources.  This includes securing a loan from
BNP Paribas and one other unnamed bank, launching a capital increase and a
share issue to be subscribed exclusively by Alstom.

Meanwhile, the French government is reportedly behind Areva's offer.  A
European Commission spokesman said: "We are going to ask the French
government for some explanation about the offer."

Alstom is 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.  Earlier this year, it sold its turbines business to
Siemens for EUR1 billion.
It is said that the disposal of the unit is a crucial part of the group's
plan to reduce its debt load from EUR5 billion to between EUR2 billion and
EUR2.5 billion by March 2005.

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


ASSURANCES GENERALES: Talks to Credit Foncier over Entenial Sale
----------------------------------------------------------------
Assurances Generales de France SA said it is in exclusive talks with Credit
Foncier over the sale of its 72% stake in property finance subsidiary,
Entenial, Dow Jones said last week.

According to the newswire, the admission sent shares of the firm to their
highest level since the end of August last year.  The shares went up 4.7% at
EUR41.45 at 1510 GMT.  Dow Jones said the sale could fetch EUR400 million
for the company.  Net profits of Assurances Generales went down 63% last
year due to an almost EUR1 billion share write-offs and poor earnings from
its core property and casualty business.

The sale to Credit Foncier, a unit of French bank Caisse d'Epargne, did not
surprise spectators, as Assurances Generales has long considered the asset
"non-essential."   Entenial specializes in providing banking services and
loans to the real estate sector.  It made a pre-tax profit of more than
EUR53 million last year.  The business has a market worth of EUR520 million,
valuing AGF's stake at just under EUR380 million.

Analysts expect the disposal of the business to help the company tap extra
capital to further strengthen its balance sheet after a slump in share
prices.  Assurances Generales de France SA and Credit Foncier are hoping to
come up with an agreement not later than August 8.


BSN GLASSPACK: Proposed Secured Notes Assigned 'B-' Rating
----------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'B-' subordinated
debt rating to the proposed EUR160 million ($179 million) senior
subordinated secured notes issue by BSN Glasspack Obligation, a fully owned
financing subsidiary of
France-based glass packaging company BSN Glasspack SAS (BSN; B+/Stable/--).

"Although the proposed notes will rank ahead of the existing note holders
and benefit from second security over all of the shares of each of its
direct and, where legally possible, indirect subsidiaries, they will be
notched twice, reflecting the large proportion of prior ranking debt," said
Standard & Poor's credit analyst Vanessa Brathwaite.

At March 31, 2003, BSN had, pro forma for the proposed transaction, total
debt of EUR815 million.  Of this, EUR500 million will rank ahead of the new
note holders. This includes EUR344 million of secured bank debt and EUR150
million drawn under the group's securitization program.  This includes an
increase in senior debt to enable BSN to repurchase about EUR40 million of
its existing EUR180 million bonds.

If the transaction takes place, the proceeds of the proposed bonds, which
mature in 2009, will be used to repay Tranche A of BSN's senior bank debt.
The repayment means that after the group's payment in June 30, 2003, BSN
will have less than EUR10 million of debt amortization annually, apart from
in December 2004, when the group will pay an additional EUR11 million of
debt amortization.

Standard & Poor's expects BSN to meet this reduced debt amortization from
internally generated cash flows.  Nevertheless, the proposed transaction
will increase the group's overall cost of finance because the new bonds will
be more expensive than the bank debt they replace and will also give rise to
additional financing and arrangement fees for the group.

"BSN has also renegotiated the financial covenant package that has
constrained its liquidity and financial flexibility in recent years, which,
together with the small increase in the group's securitization program,
means that both of these measures will be improved," added Ms. Brathwaite.

BSN's credit protection measures should remain adequate for the ratings if
the proposed transaction takes place, provided that the group continues to
generate sufficient cash flow to fund working capital, debt amortization,
and restructuring costs. The group's credit profile is also reliant on
management's expectations that the difficult German market will begin to
improve following the recent rationalization in that market.


SCOR: Fitch Comments on Proposed Life Reinsurance Spin-off
----------------------------------------------------------
Fitch Ratings, the international rating agency, views SCOR's announced plan
to spin off its life reinsurance operations as a defining strategic step for
its future.  Fitch commented that, should the plan be executed, it is likely
to influence the agency's view on the group's business position and
diversification as well as projected profitability and capital adequacy.
Which direction the rating assessment will take can only be determined once
further details of the restructuring are known.

As part of its plans, SCOR is considering opening up the capital of the new
entity to outside partners.  Fitch will carefully monitor the evolution of
the proposed restructuring, in close contact with management, and take
appropriate rating actions when the final details of the operation are
announced.  The restructuring process is expected to conclude before the end
of 2003.

Although it is too early to judge with certainty the impact of the
restructuring exercise, the proposed operation may change SCOR's business
position and ability to generate relatively uncorrelated earnings from
different business lines.  Life reinsurance represents a material proportion
of the company's business, and in 2002 accounted for around 30% of its gross
premium written.  At the same time, possible capital injection from third
parties could lead to improved capital adequacy depending on the terms and
conditions of the transaction, especially the sale price and the percentage
of interest to be disposed of.  However, the projected restructuring
involves some execution risk that could affect the company's life
reinsurance operation.


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G E R M A N Y
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DEUTSCHE NICKEL: Meets Financial Covenants for EUR120 Mln Bond
--------------------------------------------------------------
Fitch Ratings, the international rating agency, has received confirmation
from Deutsche Nickel Technology Group that it has met the financial
covenants included within the documentation for the EUR120 million bond as
of December 31, 2002.  Deutsche Nickel Technology Group's Senior Unsecured
rating is 'BB-' and the Short-term rating is 'B'.  The bond was issued on
August 30, 1999, with a seven-year maturity and a 7.125% coupon.  Following
Deutsche Nickel Technology Group's repurchase of EUR10 million worth of
bonds in 2002, the outstanding amount was EUR110 million as at FY02.

Both ratings were placed on Rating Watch Negative in January 2003 following
concerns about the group's compliance with the financial covenants as of
FYE02.  Fitch's concerns had centered on a potential shortfall in 2H02 cash
generation in two divisions, namely payment systems (Eurocoin) and,
especially, non-ferrous metals, due to the operational restructuring
underway.  In addition, Eurocoin had experienced a rapid reduction in order
levels, following the completion of the rollout phase of the initial euro
coin supply.  The proceeds of the bond issue were mainly used to finance the
working capital build-up in connection with the euro coin orders.

In FY02 Deutsche Nickel Technology Group recorded revenues of EUR328 million
and an operating profit of EUR22.8 million compared to EUR414 million and
EUR27.8 million, respectively in FY01.  The group used its net free cash
flow to reduce the gross debt by EUR53 million in FY02.  It has also
informed Fitch that it aims to continue streamlining its operations, which
is expected to further reduce its working capital in the short-term.

Fitch will conclude the annual review of Deutsche Nickel Technology Group
during the course of 3Q03.  It expects to resolve the Rating Watch, after it
has reviewed the outstanding information requested during a management
meeting held in July 2003.


FT DEUTSCHLAND: Pearson Mulls Stake Sale to Gruner & Jahr
---------------------------------------------------------
Publishing and education group Pearson is already weighing up the future of
its loss-making German-language newspaper just three years after it was
launched as a joint venture with Gruner & Jahr, the publishing arm of
Bertelsmann.

According to an article by online newspaper The Times, FT Group is believed
to have sent Pearson a proposal that could change the ownership structure of
FT Deutschland as the latter carries on its annual review of its businesses.
One option for Pearson is to offload part of its stake in the venture and
allow Gruner & Jahr to take a majority holding.

The Financial Times has been hit by the global advertising recession and the
effect on circulation as a result of heavy job losses in international
financial services, The Times said.
Pearson has not yet decided on the matter and so it remains possible that
Pearson will hold on to the German publication, according to the report.

Pearson was quoted to have said: "We are very proud of FT Deutschland and
consider it a fantastic journalistic success which is still gaining market
share."

FT Deutschland sells more than 90,000 copies a day and is believed to have
diminished losses over time.  Last year the FT Group's associates and joint
ventures lost GBP3 million but the losses at FT Deutschland were offset by
profits from Pearson's 50% stake in The Economist.


KAMPS AG: Fitch Puts 'BB' Debt Rating on Watch Positive
-------------------------------------------------------
Fitch Ratings, the international rating agency, has placed the 'BB' Senior
Unsecured debt rating of Kamps AG on Rating Watch Positive.  This follows
the announcement that Kamps will sell its 49% stake in French bakery
producer Harry's for EUR300 million to a related company of the Barilla
group (which owns Kamps), thereby reducing its leverage.

As part of the transaction, Kamps has exercised the option to buy the
remaining 51% of Harry's it does not own.  This will take place on December
30, 2003 and will be funded by a loan from a Barilla-related entity called
Finbakery Netherlands to Kamps (France) SAS who will then own 100% of
Harry's.  Kamps will own a put option to sell the whole of Kamps (France)
SAS for EUR300 million to Finbakery Netherlands between December 31, 2003
and January 31, 2004.  Kamps' put option to Finbakery Netherlands (to sell
Kamps (France) SAS) will be exercised during this one-month period.
Equally, Finbakery Netherlands will hold an option to buy the whole of Kamps
(France) SAS.

Fitch views this transaction positively, as Kamps should receive cash of
EUR225 million by the end of 2003 and a deferred EUR75m payment within five
years related to the effective transfer of its 49% stake.  Uncertainty
surrounding the Harry's existing call option will be alleviated.
Furthermore, Harry's remains within the larger Barilla group and will
continue to provide benefits from cross-selling and from its leading
position in France, one of the largest bakery markets in Europe.

Under the EUR325 million and EUR250 million Eurobond covenants, the disposal
proceeds to be received by Kamps will be used to pay down debt -- a
reduction of drawings under the bank facilities.  Based on FYE02's figures
(or FY03's forecasts), the reduction in leverage (without treating the EUR75
million deferred consideration as cash) equates to a 0.5x reduction in the
net debt / EBITDA ratio (FYE02 on a pre-exceptional basis was 5.0x).  There
is also a marginal improvement in the pro-forma EBITDA/interest ratio.

Fitch will meet with management in the next three months to discuss the
performance of Kamps, particularly, in its difficult German consumer market,
its process of integration into the Barilla group and a possible
rationalization of the production base.  The agency expects to resolve the
Rating Watch status at this time, which may result in an upgrade of the
rating by one notch. Fitch will also be evaluating FY03's projections and
the expected increase in profits due to planned synergies feeding through,
as well as the risk of Barilla (together with BPL) accessing funds to
finance the acquisition of Harry's.

CONTACT:  FITCH RATINGS
          Giulio Lombardi, London
          Phone: +44 (0) 207 417 6314


RWE GROUP: Harpen CEO Widera Takes Over New Management Function
---------------------------------------------------------------
Dr. Bernd Widera (44), Executive Board member of Harpen AG since January 1,
2000, and chief executive officer of the company since March 2003, will
probably leave the listed Dortmund-based company at the end of the day on
September 30, 2003, to take over a new management function in the RWE Group.
To this effect, the Executive Board of RWE AG, Essen, as part of the Group's
reorganization planned as of October 1, 2003, decided to propose to the
responsible supervisory bodies to appoint Dr. Widera as chief financial
officer of the energy company "Center" (working title), operating under the
roof of the new RWE
Energy AG.

The successor to Dr. Widera in the office of chief executive officer is
likely to be appointed at the Supervisory Board meeting of Harpen AG on
September 3, 2003.


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I R E L A N D
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ELAN CORPORATION: Misses U.S. SEC Deadline for Annual Report
------------------------------------------------------------
Elan Corporation, plc (NYSE: ELN) did not file with the Securities and
Exchange Commission Elan's Annual Report on Form 20-F for fiscal 2002 within
the 15-day extension period provided under its previously filed Form 12b-25.

As announced on June 26, 2003, Elan has been in discussions with
the Office of Chief Accountant and the Division of Corporation
Finance of the SEC. The SEC has questioned Elan's historic
accounting treatment, under U.S. Generally Accepted Accounting
Principles, for Elan's qualifying special purpose entity, Elan
Pharmaceutical Investments III, Ltd., and for a related
transaction. Elan is currently evaluating the issues raised by the SEC and
is devoting significant time and resources to completing and filing its 2002
Form 20-F as expeditiously as practicable.

Elan cannot, however, provide any assurances as to the timing of
the completion of its evaluation or the timing of the filing of
its 2002 Form 20-F.

Elan is focused on the discovery, development, manufacturing, sale and
marketing of novel therapeutic products in neurology, pain management and
autoimmune diseases. Elan shares trade on the New York, London and Dublin
Stock Exchanges.

As reported in Troubled Company Reporter's June 30, 2003 edition, Standard &
Poor's Ratings Services lowered its corporate credit rating on Elan Corp.
PLC to 'CCC' from 'B-'. Standard & Poor's also lowered all of its other
ratings on Elan, a specialty pharmaceutical company, and its affiliates, and
the ratings have been placed on CreditWatch with negative implications.


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I T A L Y
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ALITALIA SPA: Inks Code-share Agreement with Air France
-------------------------------------------------------
Alitalia and its SkyTeam partner Air France have launched a range of new
code-share routes from regional U.K. airports to Italy.

From Tuesday, passengers from Aberdeen, Bristol, Edinburgh, Manchester and
Southampton will be able to fly to Bologna, Florence, Genoa, Milan, Naples,
Pisa, Rome, Turin and Venice via Paris Charles De Gaulle Airport.  Once in
Italy, passengers will also be able to take advantage of further connections
to Ancona, Bari, Brindisi, Catania, Lamezia Terme, Palermo, Perugia, Reggio
Calabria, Trieste and Verona.  This partnership marks a new phase in the
airlines' commercial agreement, which took effect when Alitalia officially
joined SkyTeam in July 2001.

Giovanni Simonini, General Manager Alitalia UK said: "This cooperation
between Alitalia and Air France reflects our commitment to finding new
opportunities to work together in the interests of our passengers and the
development of our strategic global alliance, SkyTeam."

Says Diane Laurent-Jubin, Air France Commercial Director U.K. and Ireland:
"Air France has a strong regional network in the U.K., and we are delighted
that Alitalia customers will be able to benefit from convenient connections
to Italy from their local airport."

Reservations can be made by calling Alitalia on 0870 544 8259, through
travel agents or, online.


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N E T H E R L A N D S
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NUMICO N.V.: Completes Management Buyout of Unicity Network
-----------------------------------------------------------
Royal Numico N.V. has signed and completed the sale of Unicity Network in
the form of a management buy-out.  This disposal will not have a material
impact on Numico's shareholders' equity.

The consideration paid will not be disclosed.  The transaction will result
in a positive net cash inflow of approximately EUR20 million by the end of
the first quarter 2004.  This amount takes the proceeds, resulting tax
benefits and all related costs into account.  Unicity generated a negative
EBITA contribution with sales of EUR43 million in the first quarter 2003.

Commenting on the sale, Jan Bennink, CEO of Numico, stated: "We view the
sale of Unicity Network as yet another important step in the execution of
our strategy to become a high-growth, high-margin specialized nutrition
company.  We are pleased to sell Unicity to the management and believe this
will be positive for the business.  Numico previously signed a letter of
intent with another third party, but this did not lead to a mutually
satisfactory conclusion.  With this transaction we have divested another
non-core asset in order to focus our management attention and resources on
Baby Food, Clinicial Nutrition and GNC."

Unicity Network is a multilevel marketing organization specialized in
nutritional supplements and personal care products, based in Utah.


PETROPLUS INTERNATIONAL: Credit Facility Raised to US$580 Mln
-------------------------------------------------------------
Petroplus International NV announces that it has extended its existing
Secured Revolving Trade Finance Facility for a period of 12 months as of
July 15, 2003.  The Facility has also been increased by US$30 million to
US$580 million providing additional flexibility for the company and two of
its main operating companies.

The renewed Facility has been syndicated by joint mandated Lead Arrangers
ING Bank NV and Barclays Capital, with ING also acting as Agent and book
runner, and is an extension of a US$550 million Facility that was signed
last year.  The existing five-bank syndicate consisting of ING, Barclays,
Credit Suisse, BNP Paribas and Fortis has also been enlarged to include
Societe Generale.

The Facility continues to be in the name of, and will be used by, two of
Petroplus' main operating companies in Switzerland and the United Kingdom.
The Facility is used to finance transactions in oil and oil related products
including amongst others the related inventories.

The US$580 million Facility will be provided on an uncommitted basis by the
banks mentioned above.  Concluding and using this type of secured
uncommitted facility for attracting working capital finance is standard
practice in the oil industry.

                     *****

Profile of Petroplus International NV

Petroplus International NV was established 10 years ago and has since
developed into a leading player in the European midstream oil market.  The
midstream sector encompasses refining, marketing and logistics
(predominantly tank storage).

Petroplus is the owner of refineries in Antwerp (Belgium), Cressier
(Switzerland) and Teesside (United Kingdom) with a total capacity of 270,000
barrels per day.  Petroplus has a sales volume in excess of 20 million tons
a year of oil products and a storage capacity of almost 5 million m³
throughout Western Europe.  Petroplus started in 2001 with the Tango formula
of selling fuel to motorists from unmanned filling stations. Tango is active
in The Netherlands as well as Belgium and is considering further expansion
within Europe.

Petroplus, with its head office in Rotterdam and regional head offices in
Zug and Hamburg, has branch offices in more than 20 countries and employs
approximately 1000 employees.  Petroplus International NV is publicly listed
in the NextPrime segment of Euronext, Amsterdam.

CONTACT:  PETROPLUS INTERNATIONAL N.V.:
          Marcel van Poecke, Willem Willemstein
          Executive Board

          Martijn Schuttevaer, Investor Relations Manager
          Phone: +31 10 242 5900
          Home Page: http://www.petroplusinternational.com


PETROPLUS INTERNATIONAL: 'B+' Rating Placed on Watch Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'B+' long-term
corporate credit rating on Netherlands-based midstream petroleum refiner
Petroplus International N.V. on CreditWatch with negative implications
following the company's announcement that its bank lines have been renewed
on an uncommitted basis following the expiry of its committed credit
facility.

The 'B' senior unsecured debt rating on related, guaranteed entity Petroplus
Funding B.V. was also placed on CreditWatch with negative implications.

Following the expiry of the committed part of its bank lines of $350 million
(which was a part of a wider $550 million banking facility package) on July
15, 2003, Petroplus has now extended uncommitted bank lines to $580 million.

"The CreditWatch placement reflects Standard & Poor's concerns over
Petroplus' liquidity in the medium-term," said Standard & Poor's credit
analyst Maria Gillholm.  "The new uncommitted facility represents a negative
rating event as Standard & Poor's views a sufficient amount of committed
bank lines as essential for Petroplus to be able to manage its working
capital requirements in the long term."

"Furthermore, Standard & Poor's expects Petroplus' financial performance for
the second quarter of 2003 to be weaker than for the first quarter," added
Ms. Gillholm.  This is due mainly to a one-month shutdown of the company's
best-performing asset, the Switzerland-based Cressier refinery, for
maintenance. Cash flow is also expected to be affected in the second quarter
by declining refining margins.

Standard & Poor's expects to resolve the CreditWatch status in the next few
weeks, once management has finalized long-term solutions to preserve the
company's liquidity and after second quarter financials are published.

"Weak financial performance in the second quarter and the absence of
substantial committed bank lines on an ongoing basis might result in the
ratings being lowered by more than one notch," said Ms. Gillholm.


PETROPLUS INTERNATIONAL: Issues Warning Regarding Q2 Earnings
-------------------------------------------------------------
Petroplus International N.V. announces that its second quarter earnings have
been influenced negatively by a number of factors as was also implied in a
communique to a third party.  Refining margins in the second quarter 2003
were lower than in the first quarter 2003 and as already indicated in its
first quarter earnings press release on May 21, 2003, the Cressier refinery
was closed for planned maintenance over a period of six weeks in May and
June.  Petroplus will publish its semi-annual earnings in line with its
recently adjusted financial calendar on August 22, 2003.


ROYAL PHILIPS: Ratings Cut to 'BBB+' Due to Weak Credit Profile
---------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term corporate
credit rating on Dutch diversified technology group Koninklijke Philips
Electronics N.V. to 'BBB+' from 'A-', following a review.  The outlook is
stable.

At the same time, Standard & Poor's lowered its senior unsecured debt rating
on Philips to 'BBB+' from 'A-' and affirmed its 'A-2' short-term debt rating
on the group.

"The rating actions reflect the fact that Philips' credit protection
measures, adjusted for operating leases and unfunded pension and
postretirement liabilities, are insufficient to sustain a 'A-' long-term
rating," said Standard & Poor's credit analyst Michael O'Brien.

"Furthermore, the group's cash flow generation has been below Standard &
Poor's expectations, particularly due to the sluggish performance in some of
the group's core businesses," added Mr. O'Brien.  "The outlook is also
unclear regarding a near-term recovery in semiconductors and consumer
electronics, which is continuing to weaken Philips' credit profile."

Philips' net debt adjusted for leases was about EUR6.1 billion (US$6.8
billion) at June 30, 2003 (EUR8.7 billion when including unfunded pension
and postretirement liabilities at Dec. 31, 2002).

Philips is expected to remain focused on improving profitability and free
operating cash flow (assisted by its cost reduction program) and reducing
debt.  Furthermore, non-core financial holdings provide additional
significant sources of liquidity, making up for shortfalls on the group's
negative free operating cash flow generation in the first half of 2003.


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P O L A N D
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BANK MILLENNIUM: Appoints New Member to Management Board
--------------------------------------------------------
The Management Board of Bank Millennium SA informs that on July 17, 2003 a
meeting of the Bank's Supervisory Board was held, at which the Supervisory
Board appointed Rui Manuel da Silva Teixeira to the Management Board of the
Bank.

Mr. Teixeira is 42 years old.  He graduated from the Oporto Engineering
University in Electro-Technical Engineering and has a post-graduation in
Industrial Management by the Institute of Mechanical Engineering and
Industrial Management.

His first professional experience was in Texas Instruments (Portugal) as a
Test and Quality Engineer.  He joined BCP in 1987 and is a member of BCP top
management since 1994.

At BCP he performed several duties, starting in Retail Marketing by
developing Direct Marketing activities and Sales Support tools.  Furthermore
as Manager he created and developed all Call Centers and Telemarketing
operations of the BCP Group and he was responsible for the Customer
Information System management: during 1994 he was in the project team who
launched Banco 7.  In the end of 1995 he was nominated to the head of the
Quality Division of the BCP Group and in the beginning of 1999 he joined
NovaRede, first as Deputy Coordinator and after as the head of all Network
Support Division.  Since the end or 2001 and prior joining Bank Millennium
he was the Head of the Mortgage Business Division of the BCP Group.

Mr. Manuel Teixeira has not been entered in the Register of Insolvent
Debtors kept pursuant to the National Court Registry Act.  None of his
current duties are competitive to the activities of Bank Millennium SA.


BANK MILLENNIUM: To Offer Up to PLN5 Billion Worth of Bonds
-----------------------------------------------------------
The Management Board of BIG Bank Millennium SA informs that on July 17, 2003
the Supervisory Board of the Bank passed the resolution on the issue of
unsecured bearer bonds.

The Bank's intention is to issue bonds with the total nominal value of not
more than PLN5,000,000,000.  The nominal value of bonds issued in particular
series may be in zloty, Euro, American dollars, or Swiss franks.  Bonds
shall be issued in order to finance current operations of the Bank.

In case of the bond issue is at the highest estimated amount of
PLN5,000,000,000, the ratio of the value of the issue to the Bank's equity
will amount to 318.06% and the ratio of the value of the issue and all the
previously issued and unredeemed bonds to the Bank's equity will amount to
430.77%

As of June 30, 2003 the Bank's equity amounts to PLN1,571,988 thousand.  The
Supervisory Board authorized the Management Board of the Bank to ascertain
the detailed terms of the bond issue.
The Bank intends to admit bonds to public trading in securities and to
secondary trading on the regulated market.


MOSTOSTAL ZABRZE: Deloitte Doubts Firm's Viability
--------------------------------------------------
Mostostal Zabrze Holding S.A., the company that has been involved in
construction projects for more than half a century, is in danger of
defaulting on payments for its liabilities, Warsaw Business Journal
reported, citing auditor Deloitte & Touche.

The auditor has warned in an annual report for 2002 that Mostostal's main
source of capital is its liabilities due to both individuals and banks.  It
also said the construction company's losses in 2002 were PLN127 million, or
70% more than could be deduced from its quarterly reports.

Deloitte & Touche commenting on Mostostal's situation said: "The company is
no longer capable of securing alternative sources of capital and bank
guarantees that would secure its contracts."  This is despite the fact that
Mostostal's sales appear to be 15% higher than initially reported.

The company's problems with its debt appeared only later last year, as the
company had no problems back then in the first half of 2002, according to
the report.

CONTACT:  MOSTOSTAL ZABRZE - HOLDING S.A.
          41-800 Zabrze, ul. Wolnosci 191
          Phone: +48 (0 prefix 32) 271 32 21
                 +48 (0 prefix 32) 373 44 44
          Fax:   +48 (0 prefix 32) 271 50 47
                 +48 (0 prefix 32) 271 19 21
                 +48 (0 prefix 32) 271 26 49
                 +48 (0 prefix 32)  271 80 01
          Homepage: http://www.mostostal.zabrze.pl
                     http://www.mz.pl
          E-mail: post@mz.pl


UPC POLSKA: Court Sets September 2, 2003 as Claims Bar Date
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
fixes the deadline by which all creditors or UPC Polska, Inc.,
wishing to assert a claim, must file their proofs of claim against the
Debtor's estate.  The Court sets September 2, 2003, as the Claims Bar Date
for all creditors to file their proofs of claim or be forever barred from
asserting that claim.

All claims, to be deemed timely filed, must be received on or
before 5:00 p.m., on the September 2 Claims Bar Date.  The Bar Date applies
to all claims that may be asserted whether of a general unsecured, priority
or secured status.

Exemptions to the Claims Bar Date apply to:

    (a) Claims already properly filed with the Clerk of the
        Court;

    (b) Claims under Sections 503(b) or 507(a) of the Bankruptcy
        Code as an administrative expense of the Debtor's
        Chapter 11 case;

    (c) Claims already been paid in full by the Debtor;

    (d) Equity interests in the Debtor, based exclusively
        upon the ownership of common stock, warrants
        or rights to purchase, sell or subscribe to such a
        security or interest;

    (e) Claims allowed by an order of the Court entered on or
        before the Bar Date;

    (f) Claims solely against the Debtor's non-debtor
        affiliates;

    (g) Claims not listed on the Debtor's schedules as
        "disputed," "contingent," "unliquidated" or "unknown";
        and

    (h) Claims arising from the UPC Polska Notes.


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


JULIUS BAER: Leaves Institutional Brokerage for Asset Management
----------------------------------------------------------------
The Julius Baer Group wants to refocus on asset management and will
therefore withdraw from institutional brokerage.  This decision is motivated
primarily by strategic considerations.  Lightyear Capital, a U.S.-based
private equity investment firm, will take over the institutional brokerage
operations of Julius Baer.  In order for Lightyear Capital to carry on the
brokerage activities on a competitive basis, a restructuring will be
required, involving one-time restructuring costs of about CHF55 million for
the Julius Baer Group.  The acquisition is subject to regulatory and other
associated approvals and conditions.

In accordance with a fundamental strategic decision by the Board of
Directors of Julius Baer Holding Ltd., the Julius Baer Group will withdraw
from pan-European institutional brokerage.  "In the future we want to
refocus on our traditional business of asset management," says Raymond J.
Baer, Chairman of the Board of Julius Baer Holding Ltd.

"After thoroughly reviewing the various options, the Board of Directors of
Julius Baer considers the withdrawal from the brokerage operations to be the
best solution for the Group.  Apart from cost considerations, the
possibility of retaining the majority of jobs led to this decision",
explained CEO Walter Knabenhans.  "Julius Baer will retain a 15% minority
interest in Julius Baer Brokerage SA to support a smooth transfer of the
existing client base", he added.

Commenting on the sale, Lightyear chairman Donald B. Marron said: "We are
excited by the acquisition of Julius Baer's brokerage business and were
impressed by the caliber of the management team and the division's
fundamentals.  We look forward to working with Julius Baer's experienced
brokerage team to build the business and continue its success and growth in
Europe."

Julius Baer Brokerage has incurred a loss of around CHF20 million in the
first half of this year.  In order for Lightyear Capital to carry on the
brokerage activities on a competitive basis, a restructuring will be
required, involving one-time restructuring costs of about CHF55 million for
the Julius Baer Group.  The restructuring costs will be charged to the
consolidated financial statements of the Julius Baer Group in the first
half-year.

About Julius Baer

Julius Baer, one of the leading private banks in Switzerland, specializes in
asset management, investment counseling and investment funds for private and
institutional investors from around the world.  It also offers related
services in securities trading.  Julius Baer will henceforth employ a staff
of around 1700 worldwide.  As per end-March 2003, the Group had
approximately CHF103 billion worth of assets under management.

About Julius Baer Brokerage

Julius Baer Brokerage is an independent, multi-local brokerage firm that
focuses on providing high-quality service and research to institutional
investors on European equities.  As a leader in the European secondary
market for equities, Julius Baer Brokerage offers both local market
knowledge and a major European presence -- through an integrated network of
full-service brokers in all major markets in continental Europe.
Complementing Julius Baer Brokerage's personalized service based on local
presence and long-term relationships, Julius Baer Brokerage's research
capabilities are top-ranked and fully independent, offering in-depth
coverage of more than 600 stocks in 15 countries.  Julius Baer Brokerage is
headquartered in Paris and maintains branches in Amsterdam, Frankfurt,
Madrid, Milan, Stockholm and Zurich.

About Lightyear Capital

Lightyear Capital is a New York-based private equity investment firm that
manages approximately US$2 billion in assets, including The Lightyear Fund,
a US$750 million private equity fund.  The Lightyear Fund was formed to
invest in leveraged buyout, recapitalization and growth capital
opportunities in financial services and other select industries.  Lightyear
pursues and sponsors transactions where it can create substantial value for
its management partners and investors through leveraging its investment and
operational expertise and relationship network spanning the financial,
corporate and governmental landscapes.

The half-year results of Julius Baer will be released on August 15, 2003, at
7:00 a.m. CEST.

CONTACT:  JULIUS BAER
          Investor Relations
          Jan A. Bielinski
          Phone: +41 (0) 58 888 5501

          Lightyear Capital
          John Henderson
          Phone: +1 212 843 8054

          Lightyear Capital
          Courtney Manning
          Phone: +1 212 882 5818


SWISS INTERNATIONAL: Cabin Crew Unions OK Redundancy Plan
---------------------------------------------------------
SWISS has reached agreement with Kapers and Unia, its cabin staff
associations, on the terms and procedures for reducing personnel numbers.
Some 935 cabin crew positions are affected by the corporate resizing which
is currently under way.  The Geneva and Lugano crew bases are to be closed,
and crew numbers will also be reduced in Basel.

SWISS has been conducting negotiations with its cabin crew associations
since it announced its corporate resizing, to seek the most partnerly and
socially acceptable solutions possible for effecting the staff reductions
required.  The airline's cabin crew corps will be informed Thursday of the
measures that have now been agreed.

Unlike with the OC 2 pilots, the workforce downsizing cannot be achieved
solely through voluntary reductions in working hours for the company's cabin
crew staff.  But cabin personnel will be offered the opportunity to reduce
their working hours and conclude a corresponding new contract of employment;
and the number of flight attendants not served notice who are willing to
make such reductions may affect the total number of layoffs required.

Cabin staff in Geneva, Basel and Lugano

The crew bases in Geneva and Lugano will be closed.  Crews currently based
there will commute to Zurich in future to commence their flight duties.
Basel will remain a crew base, since all Saab 2000 operations will be
centered there.  But the number of Basel-based flight attendants will be
reduced to 69 positions.

The crew bases in Bangkok, Delhi and Mumbai will be closed.  The Tokyo crew
base will be retained, but with reduced staff numbers.

Negotiations will now continue with the cabin staff associations with a view
to achieving further cost reductions without further layoffs.

Discussions with the company's ground staff associations continue to make
good progress.

CONTACT:  SWISS
          Corporate Communications
          P.O. Box, CH-4002 Basel
          Phone: +41 848 773 773
          Fax: +41 61 582 3554
          E-mail: communications@swiss.com
          Homepage: http://www.swiss.com


SWISS LIFE: U.K. Operation Closes to New Individual Business
------------------------------------------------------------
Swiss Life (U.K.), the specialist protection provider, is to stop writing
new individual business.  Group business is still under evaluation.  Swiss
Life (U.K.) will continue writing new group business.  The Swiss Life Group
is committed to having a Network Partner in the U.K. servicing major
international clients.

The Swiss Life Group announced last September that Swiss Life (U.K.), due to
its special focus on protection, a capital intensive niche market, was no
longer considered to be part of the Group's core business.  Negotiations to
sell the business as a whole, which have taken place over the last few
months, have shown that the expectations of the interested parties did not
come close to matching those of the Swiss Life Group.  The Swiss Life Group
has therefore decided to take different approaches for individual and group
business, respectively, in order to optimize shareholder value.

For individual business, which has high capital requirements, it has been
decided to close to new business with immediate effect.  For group business,
including the international pooling business, different options will be
examined up to mid August.  Until then Swiss Life (U.K.) will continue to
write new group business.  If no acceptable solution can be concluded in the
course of August, Swiss Life (U.K.) will also close to group business except
new international business.  In the case of a complete run-off of the
individual and group business, the Swiss Life Group is confident of
realizing a value of around GBP30million to GBP40 million in excess of the
net asset value over time.

The Swiss Life Group is aware that these announcements are likely to have a
significant impact for staff at Swiss Life (U.K.) and can confirm that Swiss
Life (U.K.) will comply fully with its legal obligations to inform and
consult staff in connection with the development and implementation of its
plans for them.  The Swiss Life Group anticipates that the decision to stop
writing new individual business could ultimately lead to approximately 200
positions being shed at Swiss Life (U.K.).

This decision does not affect Swiss Life (U.K.)'s existing clients.  Future
claims are secure and policies will continue to be managed for their entire
term.  For international clients it is envisaged that the Swiss Life Group
will continue to be represented in the U.K. by a Network Partner.

Swiss Life

The Swiss Life Group is one of Europe's leading providers of life insurance
and long-term savings and protection.  The Swiss Life Group offers
individuals and companies comprehensive advice and a broad range of products
via agents, brokers and banks in its domestic market, Switzerland, where it
is market leader, and selected European markets.  Multinational companies
are serviced with tailor-made solutions by a network of partners in over
fifty countries.

Swiss Life Holding, registered in Zurich, was founded in 1857 as the Swiss
Life Insurance and Pension Company.  Shares of Swiss Life Holding are listed
on the SWX Swiss Exchange. The enterprise employs around 11,000 people
worldwide.

CONTACT:   SWISS LIFE
           Investor Relations
           Phone: +41 1 284 52 76
           E-mail: investor.relations@swisslife.ch
           General-Guisan-Quai 40,
           P.O. Box, 8022 Zurich
           Homepage: http://www.swisslife.com


ZURICH FINANCIAL: Consolidates Two European Data Centers
--------------------------------------------------------
Zurich Financial Services announced that the Data Center in Swindon U.K.
will be integrated into the Data Center in Switzerland.

The consolidation of the two European Data Centers is an important part of
the global IT strategy announced on May 9, 2003, which aims to consolidate
and streamline IT services throughout the company and to manage them in a
centralized and cost-efficient way.  Zurich plans significant cost
reductions by simplifying and standardizing its European Data Center
infrastructure.  The company will be working with its employees on the plans
for the migration, which is subject to regulatory approvals.

Michael Paravicini, Chief Information Technology Officer of Zurich Financial
Services said, "The consolidation of the two Data Centers and a similar
project in the United States are two of many strategic IT projects we
started this year and that are expected to transform our IT functions over
the coming years. Their successful completion will contribute to the
cost-efficient delivery of IT services throughout the Group."

The centralization and streamlining of Zurich's IT functions contributes to
the comprehensive program announced on September 5, 2002, designed to
improve profitability by US$1 billion in the current year.  In addition, the
global IT program has been conceived to deliver efficiency improvements in
2004 and beyond.

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
           Public Relations
          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: To Take Center Stage in Industry-wide Inquiry
-------------------------------------------------------------
A deeper probe into the split-capital investment trust scandal in the U.K.
is likely to involve in a large part the participation of Aberdeen Asset
Management, The Herald cited a source close to the inquiry saying.

The investigation, which the Financial Services Authority has confirmed,
will include individuals who might have involvement in the debacle which
cost more than 50,000 private investors GBP6.5 billion.

The insider said: "Aberdeen Asset were the major player, so it would be very
surprising if they were not a major part of the investigation.

The Financial Services Authority said it had sent letters to "between a
double-digit figure and 50" individuals, informing them they were being
investigated, according to the report.
The source refused to name the individuals under investigation as the
Financial Services Authority is prohibited by the Financial Services Act
from doing so.

Aberdeen embarked on a rapid expansion into the splits sector under former
director Chris Fishwick and became the biggest manager of splits at the
leading of chief executive Martin Gilbert.  Four of Aberdeen's 19 funds went
bust as more than 40 trusts in the sector were forced to cut pay-outs to
investors, and 20 were suspended.  Aberdeen has always refused to admit any
wrong-doing in the fiasco.


ABERDEEN ASSET: Clears Rumored Sale of Property Management Biz
--------------------------------------------------------------
Aberdeen notes recent press speculation regarding a potential divestiture of
its property investment management business, Aberdeen Property Investors, to
The British Land Company PLC.

Aberdeen is currently in detailed discussions with British Land in relation
to a number of alternative structures for the sale of the whole or part of
Aberdeen Property Investors.  The potential value received will be dependent
on the eventual structure of any deal and, at the present time, no guidance
can be given by Aberdeen regarding the expected valuation.  A binding
agreement has not been entered into at this time and there is no certainty
that such an agreement will be entered into.

A further announcement will be made in due course.

CONTACT:  GAVIN ANDERSON & COMPANY
          Neil Bennett
          Phone: 020 7554 1400


BIG FOOD: Shareholders Approve All Resolutions at Annual Meeting
----------------------------------------------------------------
The Big Food Group plc is pleased to announce that its 2003 Annual General
Meeting was held Thursday and the shareholders duly passed all of the
resolutions proposed at the Meeting.

A copy of the resolution, which was proposed as special business at the AGM
has been submitted to the U.K. Listing Authority and will shortly be
available for inspection at the U.K. Listing Authority's document Viewing
Facility, which is situated at:

Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
Tel: 020 7676 1000

                     *****

Headquartered in Deeside, U.K., The Big Food Group Plc is an integrated food
provider offering access to U.K. consumers through retail, wholesale and
food distribution channels.  Average net debt of the company for the
thirteen weeks was approximately GBP260 million.


CORDIANT COMMUNICATIONS: Regulator Says Ojjeh Violated City Code
----------------------------------------------------------------
The Executive has been investigating certain dealings by Mme Nahed Ojjeh in
Cordiant shares.  The Executive has concluded that a number of breaches of
the City Code on Takeovers and Mergers have occurred in relation to the
disclosure of such dealings.

Background

On 29 April, Cordiant released the following statement: "Cordiant announces
that following yesterday's announcement it has received very preliminary
approaches which may or may not lead to an offer being made for the company.
This is one of a number of alternative strategic options that the board is
considering."

As a result of this announcement, an offer period began in relation to
Cordiant.

On June 27, Mme Ojjeh acquired 4,181,000 shares in Cordiant, which, taken
together with shares purchased prior to this date, resulted in an interest
of greater than 1% of the issued share capital.  This transaction should
have been disclosed in accordance with Rule 8.3 of the Code by 12 noon on
June 30.  On July 1, a disclosure was made under Rule 8.3 that Mme Ojjeh had
an interest in 2% of the issued share capital of Cordiant as a result of the
purchase on June 27 and a further purchase on June 30.

On July 8, Cordiant announced that it had received a letter from Mme Ojjeh
dated July 5 stating that she had built a stake in the company during the
period from June 10 to July 4 of approximately 10.75%.  The letter stated
that Mme Ojjeh's interest in Cordiant was held directly in her name, through
members of her immediate family, and through an offshore entity controlled
by her.  No further disclosures had been made during the interim period.

The Executive was concerned that Mme Ojjeh's interest in Cordiant's share
capital had not been disclosed in accordance with the Code and, accordingly,
commenced an investigation into her share dealings.

Undisclosed dealings

As a result of its investigations, the Executive established that a
significant number of dealings in relevant securities had been undertaken
by, or on behalf of, Mme Ojjeh since July 1, i.e. the date of Mme Ojjeh's
first Rule 8.3 disclosure.  As at July 9, Mme Ojjeh announced an interest in
9.89% of Cordiant's issued share capital through her own account, that of
her son, Akram Ojjeh, her daughter, Lara Tlass and DACOR, a company wholly
owned by Mme Ojjeh.  None of these dealings had been disclosed by Mme Ojjeh,
as they should have been, by 12 noon on the business day following the
relevant dealing.  However, they were disclosed by Mme Ojjeh on July 11,
following discussions with the Executive.  Subsequently, on July 17, Mme
Ojjeh disclosed an interest in 10.95% of Cordiant's issued share capital.

Rule 8 and the importance of disclosure

One of the consequences of the commencement of an offer period is that,
under Rule 8.3 of the Code, any dealings in the shares of an offeree company
by a person who owns or controls (directly or indirectly) 1% or more of any
class of shares of the offeree company must be publicly disclosed by 12 noon
on the business day following the date of the transaction.  Further, a
person who owns or controls 5% or more of any class of shares of the offeree
company must disclose any dealings in accordance with Rule 8.1.

The Panel attaches the greatest importance to proper compliance with the
Code's dealing disclosure requirements set out, principally, in Rule 8.  The
Code does not impose numerous restrictions on the ability of significant
shareholders of an offeree company to deal in relevant securities during an
offer period, but it does require prompt and accurate disclosure of any
dealings by such persons.

Disclosure underpins market transparency, which, in turn, constitutes a
fundamental protection for shareholders and others who deal in the U.K.
securities markets.  Disclosure is therefore a reflection of General
Principle 6 of the Code, which provides that:

"All parties to an offer must use every endeavor to prevent the creation of
a false market in the securities of an offeror or the offeree company.
Parties involved in offers must take care that statements are not made which
may mislead shareholders or the market."

The Executive's findings

The Executive has concluded that the various dealings in relevant securities
by or on behalf of Mme Ojjeh referred to above should have been, but were
not, disclosed in accordance with Rule 8.  Further, Mme Ojjeh's letter to
Cordiant of 5 July, declaring an interest of approximately 10.75%, was
incorrect.

The Executive has discussed these breaches with Mme Ojjeh.  Mme Ojjeh has
explained that they arose from her lack of familiarity, as a foreign private
investor, with U.K. regulation.  Mme Ojjeh has also explained that at the
outset she did not have an adviser who was familiar with the Code.

Throughout its investigation, Mme Ojjeh has co-operated fully with the
Executive.  She has apologized unreservedly to the Executive for the
breaches of the Code.

The Executive regrets that these breaches of the Code occurred and considers
that the conduct of Mme Ojjeh has fallen short of the standards required of
parties involved in takeovers.  The Executive emphasizes that all parties
who wish to deal in relevant securities or otherwise become involved in
transactions subject to the Code must comply with the Code and, if
appropriate, take the necessary advice to ensure that they are able to do
so.

Mme Ojjeh is accordingly hereby criticized.


CORUS GROUP: Open to Revival of Sale Talks with Pechiney
--------------------------------------------------------
Corus welcomes the possible revival of talks aimed at disposing some EUR750
million (GBP535 million) worth of aluminum assets to Pechiney of France,
according to The Guardian.

Pechiney may pursue the transaction to ward off unwanted approach from
Canadian aluminum group Alcan, according to speculations.  It has been in
constant touch with the Anglo-Dutch steel maker, but so far executives from
both sides have not met formally met, according to the report.

"If they want to revive that deal and make another bid for the assets, they
just need to come back to us on that," said a Corus spokesman.

The source admitted the steel group is aware of potential interest from
Pechiney, which still holds exclusive negotiating rights over Corus'
aluminum business until the middle of October.

Initial talks regarding the deal fell off earlier due to opposition from the
Dutch part of the group.  Observers now see a better chance for the
transaction to go through partly because Philippe Varin -- a former Pechiney
official -- has been appointed as chief executive at Corus, according to the
report, although, the Dutch workers' council indicated they have not changed
their stance.

Corus is currently in talks with banks over a GBP1 billion-credit facility.
It needs to dispose of assets to pay the cost for another round of
restructuring.


GROUND FLAT: Management Buys out Firm; Averts Total Shutdown
------------------------------------------------------------
Around 25 jobs were secured at steel firm Ground Flat Stock after the
management decided to save the company from being totally closed down by
parent company Firth Rixson Special Steels.

The management led by Darryl Salmons, Nigel Southern, Chris Sayles, David
Renshaw, David Cocker and Wayne Elliot bought the 50-year-old company for an
undisclosed sum.  They plan to rename the company Sheffield Gauge Plate,
according to Yorkshire Today.

Chris Sayles said: "It's great to be keeping the steel industry in Sheffield
alive as we've seen a decline in recent years.  The management know we have
an exciting future ahead of us thanks to our great team of staff."

Ground Flat Stock manufactures flat and square steel plates.  It was one of
seven major U.K. sites belonging to Firth Rixson and has major clients in
both the home and export markets, including Europe's leading supplier of
maintenance, repair and operations products and the U.K.'s top distributor
of industrial tools, according to the report.

Advisers to the deal included Barber Harrison and Platt, Lloyds TSB and Alex
Lawrie Factors, commercial lawyers HLW and South Yorkshire Business Link.


HAMLEYS PLC: Children's Stores Refuses to Up Bid; Cancels Offer
---------------------------------------------------------------
On June 27, 2003 the Board of Children's Stores announced the terms of a
cash offer of 230 pence per Hamleys Share, to be made by ING Investment
Banking on behalf of Children's Stores, for the entire issued and to be
issued ordinary share capital of Hamleys.

On July 3, 2003 Soldier announced an increased offer of 254 pence per
Hamleys Share.  Children's Stores' Offer Price was driven by the potential
synergies of merging Hamleys with the Daisy & Tom chain.   The Board of
Children's Stores has concluded that it would not be commercially viable for
the company to pay more than 230 pence per Hamleys Share.  Accordingly, as
permitted by Note 2 to Rule 2.7 of the City Code and after consultation with
the Panel, the Board of Children's Stores has decided not to pursue its
interest in Hamleys and will not be posting an offer document to Hamleys
Shareholders.

Conditional upon the posting by Soldier to Hamleys Shareholders of an offer
document setting out its Revised Increased Offer and the release of this
announcement, Children's Stores has agreed to sell to Soldier its entire
interest in Hamleys' existing issued share capital amounting to, in
aggregate, 3,513,548 Hamleys Shares on the twenty-first day following this
announcement.  In addition, in the light of this announcement, the
irrevocable undertakings to accept the Offer from certain of Hamleys'
institutional shareholders in respect of, in aggregate, 940,400 Hamleys
Shares will lapse.

Save as otherwise disclosed, as at the date and time of this announcement,
Children's Stores and parties acting in concert with it neither own nor
control any interest in the existing issued share capital of Hamleys.

Commenting on the Board's decision, Tim Waterstone, Chairman of Children's
Stores, said:

"Obviously I am disappointed with what has happened.  Hamleys would have
been a very good fit with Daisy & Tom and would have complemented Daisy &
Tom's growth plans.  However, decisions have to be made for sound economic
reasons and even with the clear synergies between Daisy & Tom and Hamleys it
is not commercially viable for us pay more than 230 pence per Hamleys Share.
I sincerely appreciate the support of Rhone Capital in this process."

ING Investment Banking, which is authorized in the United Kingdom by the
Financial Services Authority for investment business activities, is acting
exclusively for Children's Stores as financial adviser in relation to the
Offer and is not acting for any other person in relation to such offer.  ING
Investment Banking will not be responsible to anyone other than Children's
Stores for providing the protections afforded to its clients or for
providing advice in relation to the contents of this announcement or any
transaction or arrangement referred to herein.

This announcement does not constitute an offer or an invitation to purchase
any securities.

CONTACT:  BELL POTTINGER FINANCIAL
          Phone: 020 7861 3232
          (PR adviser to Children's Stores)
          Jonathon Brill
          John Coles

           ING INVESTMENT BANKING
           Phone: 020 7767 1000
           (Financial adviser and broker to Children's Stores)
           Fraser Marcus
           Simon Newton


HAMLEYS PLC: Recommends Soldier's Revised Increased Offer
---------------------------------------------------------
On June 30, 2003, the independent directors of Hamleys made an announcement
advising Hamleys shareholders to take no action in respect of either the
offer made by Soldier Limited or the offer announced by Children's Stores
Holdings Limited.  The Independent Directors also advised Hamleys
shareholders that they would recommend a course of action in due course.

On Thursday July 3, 2003, Soldier Limited announced a revised increased
offer for Hamleys at 254p per share.  Soldier Limited did not seek a
recommendation from the Independent Directors before announcing this offer
and no documentation in relation to the Soldier Revised Increased Offer has
yet been sent to Hamleys Shareholders.  Earlier Thursday, Children's Stores
Holdings Limited announced that it has decided not to pursue its interest in
Hamleys and that it has conditionally agreed to sell its shares in Hamleys
to Soldier Limited.

As a result of Children's Stores Holdings Limited announcement, the
Independent Directors have resolved unanimously to recommend, in the Soldier
Revised Increased Offer document, that Hamleys Shareholders accept the
Soldier Revised Increased Offer.  The Independent Directors, who have been
so advised by Close Brothers Corporate Finance Limited, consider the terms
of the Soldier Revised Increased Offer to be fair and reasonable. In
providing advice to the Independent Directors, Close Brothers has taken into
account the commercial assessments of the Independent Directors.

The Soldier Revised Increased Offer document, together with a letter from
the Independent Directors recommending it and advising Hamleys Shareholders
of the action that they should take, was posted to Hamleys Shareholders
Thursday.

Jim Hodkinson, Chairman of the committee of Independent Directors, said:

"After a truly competitive process, we are now delighted to recommend the
increased offer of 254p from Soldier Limited.  This offer represents over a
100% premium to the share price before the announcement of bid talks on
March 17, 2003.  Hamleys' shares last traded at this level in June 1998."

The Independent Directors accept responsibility for the information
contained in this announcement.  To the best of the knowledge and belief of
the Independent Directors (who have taken all reasonable care to ensure that
such is the case), the information contained in this announcement is in
accordance with the facts and does not omit anything likely to affect the
import of such information.

Close Brothers Corporate Finance Limited which is authorized in the United
Kingdom by The Financial Services Authority for investment business
activity, is acting exclusively for Hamleys and no one else in connection
with this matter and will not be responsible to anyone other than Hamleys
for providing the protections afforded to customers of Close Brothers
Corporate Finance Limited nor for providing advice in relation to this
matter.

CONTACT:  BRUNSWICK
          Phone: 020 7404 5959
          Rebecca Blackwood
          Melissa McVeigh
          Carolyn Esser

          CLOSE BROTHERS CORPORATE FINANCE LIMITED
          Phone: 020 7655 3100
          Richard Grainger
          John Nener


HAWTIN PLC: Appoints Stephen Morgan Executive Director
------------------------------------------------------
Hawtin PLC is pleased to announce the appointment of Mr. Stephen Morgan as
Executive Director starting Thursday, July 17, 2003. Mr. Morgan has been
with the Group since 1989, and has been company Secretary since 1998.

There are no details relating to Mr. Morgan to be disclosed under paragraph
6.F.2 of the Rules of the U.K. Listing Authority.

                     *****

Finance Director W.J. Dixon resigned from the board last week following the
company's recent announcements relating to the disposal of several of the
group's trading businesses.

Hawtin previously sold its U.K.-based swimming pool equipment manufacturing
and distribution business, Certikin International Limited and its 95% French
subsidiary, MMC SARL.  This was after it sold its loss-making U.K.-based
wetsuit and watersports distribution business, Gul International Limited.
In the twelve months to December 31, 2002, Gul made a loss before taxation
of GBP310,000 on turnover of GBP6.3 million.  Net assets as at that date
were GBP900,000.

Hawtin said it will utilize the proceeds of the sale to further reduce group
borrowings.


MARCONI CORPORATION: Issues Trading Update for Past Three Months
----------------------------------------------------------------
(a) Tough market environment and generally weaker demand reduces
    Group sales to GBP367 million

(b) Recent significant business wins further endorse Marconi
    technology: multi-service access node (BT, Jersey Telecom,
    Travekom), SoftSwitch (Kingston, Jersey Telecom), Next
    Generation optical equipment (Telstra, Telecom Italia)

(c) Cost savings on track to achieve FY04 run-rate targets but
    Q1 operational performance hindered by lower sales volumes;

    (i) approximately two percentage point decline in gross
        margin (before exceptional items) leading to reduced
        operational performance during the quarter

(d) Maintaining momentum on cash management initiatives

    (i) third consecutive quarter of positive operating cash
        flow before exceptional items

   (ii) GBP783 million gross debt more than offset by GBP788
        million cash balances; net cash position GBP5 million at
        June 30, 2003

  (iii) GBP40.5 million cash proceeds from the sale of
        approximately 33% stake in Easynet Group plc received
        after the quarter end

   (iv) Disposal of UMTS business completed and announced
        Thursday (see separate press release)

(e) Q2 Outlook

    (i) Continued cautious view of near term market conditions;
        flat to slightly increased sales expected in second
        quarter

   (ii) Further planned cost savings should lead to sequential
        improvement in operational performance

To view full report:  http://bankrupt.com/misc/Marconi_Corporation.htm


MARCONI CORPORATION: Sells Umts Business to Finmeccanica
--------------------------------------------------------
Marconi Corporation plc (London: MONI) announces that it has completed the
sale of Marconi Mobile Access SpA, a non-core subsidiary also known as UMTS,
to Finmeccanica SpA.  Marconi has agreed to capitalize the business with
approximately EUR6 million (approximately GBP4.2 million) prior to disposal.
The business, which is based in Italy, has 260 employees and annual
operating costs of approximately GBP15 million.

As part of the transaction, Marconi Corporation plc and Finmeccanica SpA
have agreed that there will be no further purchase price adjustments with
respect to the completion balance sheet accounts relating to the sale of
Marconi Strategic Communications to Finmeccanica in August 2002.

In a separate agreement, Finmeccanica has agreed to release the
approximately EUR 12 million (approximately GBP9 million) retained against
the purchase price, and held in an escrow account, following its purchase of
the Strategic Communications business.  These monies will be transferred to
Marconi Corporation plc's Mandatory Redemption Escrow Account pursuant to
the terms of Marconi's Junior Secured Notes and Senior Secured Notes.

About Marconi Corporation plc

Marconi Corporation plc is a global telecommunications equipment, services
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.

CONTACT:  MARCONI CORPORATION
          Investor enquiries
          Heather Green
          Phone: +44 207 543 6910
          E-mail: heather.green@marconi.com


MARCONI CORPORATION: Partially Redeems Secured Notes Due 2008
-------------------------------------------------------------
CUSIP No.: G58129AD2
ISIN No.: XSO166109768

US$66.1 million (GBP41.3 million) Junior Notes to be redeemed at 110%,
reducing principal amount of Junior Notes to US$420.8 million (GBP263.0
million)

Marconi Corporation plc gave notice to the owners of its 10% guaranteed
Junior Secured Notes, due 2008 (the Securities) pursuant to Section 3.02 of
the Indenture dated as of May 19, 2003 made between the company, the
guarantors named therein and JP Morgan Chase Bank (the Trustee) that
pursuant to Section 3.08 of the Indenture $66,098,218 aggregate principal
amount of Securities (the Redemption Securities) will be redeemed on July
31, 2003.

The redemption price shall be 110.0% of the principal amount of the
Redemption Securities redeemed plus accrued interest to the Redemption Date
and any Additional Amounts (as defined in the Indenture).

This mandatory partial redemption has resulted from the previously disclosed
sale of part of the Group's stake in Easynet Group plc and the release of an
escrow account established in connection with the disposal of Marconi's
Strategic Communications business to Finmeccanica SpA.

The paying agent with respect to the Redemption Securities is:

     The Bank of New York
     One Canada Square
     London E14 5AL
     England
     Attention: Corporate Trust Office

On the Redemption Date, the Redemption Price, together with accrued interest
and any Additional Amounts, will become due and payable.  Unless the company
defaults in making the redemption payment, the Redemption Securities shall
cease to bear interest from and after the Redemption Date. The Redemption
Securities will be cancelled following redemption by the company.

About Marconi Corporation plc

Marconi Corporation plc is a global telecommunications equipment, services
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.


MOTHERCARE PLC: To Highlight Sales Recovery in Next AGM
-------------------------------------------------------
Updates on recovery efforts by Mothercare PLC are expected at its annual
meeting, as the struggling high street chain shows faint signs of revival.

Online news agency Teletext said Mothercare, which revealed a full year
pre-tax loss of GBP24.8 million in May, reported a 2.8% rise in its
like-for-like sales in the first seven weeks of the current year.  Investors
will be updated of this, as well as of the group's implementation of
recovery plans that will take three years to complete, on the annual
meeting.  The recovery plans center on boosting performance in five key
areas.

The retailer sells maternity, baby, and children's clothes, nursery
equipment, and toys at more than 400 stores.  Most locations are in the
U.K., while more than a third are franchises in other parts of Europe, Asia,
and the Middle East.

After struggling from poor sales and a high turnover of executives, the
company dissolved its original umbrella company, Storehouse, by selling its
154-store Bhs housewares chain to Monaco-based investor Philip Green, and
adopted the name Mothercare shortly thereafter.

On its results for the 28 weeks ended October 12, 2002, the company's loss
before tax and exceptional items is GBP10.0 million (2001, GBP4.8 million
profit).

CONTACT:  MOTHERCARE PLC
          Ben Gordon, Chief Executive
          Phone: 020 7404 5959 (Tuesday only)
          Mark McMenemy, Finance Director
          Phone: 01923 206 187


NETWORK RAIL: Recovery Still Far, Rail Passenger Council Says
-------------------------------------------------------------
Network Rail has still to do a lot of things to improve performance on the
railways, the chairman of Rail Passengers Council, Stewart Francis, said in
the foreword of the agency's annual report, according to Ananova.

"The greatest challenge for Network Rail is to bring under control the
spiraling costs of work on the railway," he said.  The successor to
Railtrack is cutting personnel to cut costs by over GBP1 billion come March
2006.

He also challenged the company to expedite its planned improvements, as
passengers cannot wait until 2006 for performance to return to the levels
reached before the Hatfield crash in 2000.

"It is clear that in the transition from a private shareholder-owned company
to the new structure, a new ethos and new ethics are called for to help
build passenger faith in the network owner," he said.

More than 120 people were injured in October 2000, when, during Railtrack's
time, a GNER train careered off the track.


NETWORK RAIL: Rail Regulator to Support Commercial Paper Program
----------------------------------------------------------------
The Strategic Rail Authority (AAA/Stable/A-1+) plays an essential role in
the proposed GBP4 billion commercial paper program due to be issued by
Network Rail.

As a liquidity provider supporting the CP program (and ultimate backstop),
the Strategic Rail Authority is contractually required in certain
circumstances (including the exercise of drawstops by six out of the eight
banks providing GBP1 billion of liquidity facilities), and if there was no
warning of imminent default, to provide same-day funding in the event of
maturing CP.  As of the same date, the sole source of same-day liquidity
that the Strategic Rail Authority has at its disposal--other than funds from
the Department for Transport - is funds in hand.  These would probably be
insufficient to repay maturing CP, which could total up to GBP1 billion on
any given day.

As part of its due diligence, Standard & Poor's has satisfied itself that
the Strategic Rail Authority will be in a position to meet its contractual
obligations for full and timely payment under the CP program, and has
discussed with senior officials at the Strategic Rail Authority, Department
for Transport, and HM Treasury how the Strategic Rail Authority might have
available funds to meet a same-day funding call arising under maturing CP.
In coming to this conclusion, Standard & Poor's examined the following:

(a) The cash inflows to Department for Transport, the Strategic
    Rail Authority's sponsoring department, throughout the
    fiscal year, as voted by Parliament;

(b) The process by which the Treasury can put the Department for
    Transport in funds in a timely manner and whether this can
    be done on a same-day basis, if the request is made early in
    the day; and

(c) The legal basis upon which the Treasury's contingencies fund
    could be accessed and the pre-clearances put in place to
    ensure that money would flow quickly.


ROYAL MAIL: Improves Efficiency of Delivery System
--------------------------------------------------
Royal Mail has announced that the amount of mail that goes astray through
being delivered to the wrong person or address has been almost halved during
the past year.

Chief Executive Adam Crozier said: "This is a major step in the right
direction and our people should take the credit for the improvement in
performance.  However, every single letter is important so there's a lot
more to do but these results demonstrate Royal Mail's commitment to
improving our service to customers."

Delivery mistakes are the main cause of mail loss or significant delays.
The latest research by the company estimates that around 280,000 letters a
week -- around 0.07% of the 21 billion letters a year handled by Royal Mail
could be lost or substantially delayed.  The previous year the figure was
around 500,000 a week.

Customer addressing errors also lead to letters going missing.  But millions
of badly addressed letters still get through to the right person on time --
postmen and women manage to deliver around 15 million letters a week that
are incorrectly addressed.  Royal Mail's National Return Letter Center in
Belfast handles mail that cannot be delivered and has no return address on
the outside.  Last year the center handled around 72 million letters,
successfully returning around a quarter of them.

Royal Mail recommends that customers check that addresses, including
postcodes, are correct -- more than 8 million letters a day are sent with
either no postcode or an inaccurate one.  A return address on the back of
envelopes ensures that any letter that cannot be delivered is sent back
swiftly to sender.

Royal Mail's actions to improve its delivery standards include better
equipment for local delivery offices and improved training for new recruits
and temporary employees.

The latest figures are from independent research carried out by Royal Mail
as part of its license from industry regulator Postcomm.  This requires the
company to ensure stringent mail protection measures and to provide annual
estimates of mail loss.

                     *****

Postcodes and addresses can be checked through Royal Mail's website at
http://www.royalmail.com This is a free facility that allows eight
postcodes to be checked in a 24 hour period. Postcodes Online is one of the
U.K.'s most popular web pages with more than 32 million hits a year.

Customers can also obtain postcodes through the Postcode Enquiry Line on
08457 111 222.  Calls are charged at local rate outside of office hours and
at weekends; premium 50p per minute rate applies during office hours
(8am-6pm).

A range of Royal Mail products and services are available to help businesses
with addressing on mailings.

CONTACT:  ROYAL MAIL
          Phone: 020 7250 2468 (24 hours)
          148 Old Street
          LONDON
          EC1V 9HQ
          Homepage: http://www.royalmail.com


TELEWEST COMMUNICATIONS: Influential Bondholder Gets Board Seat
---------------------------------------------------------------
Telewest Communications will soon be forced to accept bondholders led by
hedge fund manager Bill Huff into its board, as the finalization of the
revised terms of its GBP3.5 billion financial rescue comes to an end.

Mr. Huff stands to become the largest shareholder in the restructured
company, and will likely have board representation, according to The Times.
The bondholders are understood to have defeated supporters of the plan
mapped out by managing director Charles Burdick to staff the board with
independent non-executives.

Mr. Huff's position would allow him, and other key bondholders to benefit on
the long-delayed merger of NTL and Telewest by determining the timing of the
transaction, according to the report.  He is at an advantageous position as
his claimed 20% bond holdings is due to be converted into a similar
proportion of shares after the restructuring.  His New Jersey-based hedge
fund also holds 14% of NTL, where he holds another board position.


THISTLE HOTELS: Delisted from Footsie
-------------------------------------
Thistle Hotels PLC, the British hotel chain badly hit by the slump in the
tourism industry, has received approval for its application to withdraw its
shares from the Official List of the U.K. Listing Authority and to cancel
trading on the London Stock Exchange's market for listed securities, AFX
News reported.

The approval for the application it lodged last month took effect from the
start of trading on July 17, 2003.

Thistle has long been considered a takeover target, with its management
coming under fire for poor performance, and a reluctance to return cash to
investors.

In May, BIL made a recommended unconditional increased and final cash offer
for Thistle shares at 25 13/20 pence.

CONTACT:  THISTLE HOTELS PLC
          Phone: 020 7895 2304
          Ian Burke, Chief Executive Officer


                            *********


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.  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
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publishers.

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

The TCR Europe subscription rate is US$575 per half-year, delivered via
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