/raid1/www/Hosts/bankrupt/TCREUR_Public/030731.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

                 Thursday, July 31, 2003, Vol. 4, No. 150


                              Headlines



C Z E C H   R E P U B L I C

SPOLANA NERATOVICE: Sokato to Insist on Liquidating Company


F R A N C E

ALCATEL: Records EUR675 Million Net Loss in Second Quarter 2003
ASSURANCES GENERALES: Negotiates with ING re AGF Belgium Disposal
RHODIA SA: Outlook Revised to Negative Due to Poor Q2 Results
VIVENDI UNIVERSAL: Metro-Goldwyn Withdraws Offer for U.S. Asset


G E R M A N Y

BERTELSMANN AG: Falling Earnings Prompt Foundation's Budget Cut
BERTELSMANN AG: Sale of BertelsmannSpringer Partially Cleared
DEUTSCHE BANK: Repon 16 Class 2 Notes on Watch Negative
DEUTSCHE TELEKOM: Regulator Approves T-Com Rates Proposal


I T A L Y

ALITALIA SPA: Massive Crew Sickness Organized, Report Says
CIRIO FINANZIARA: Rescue Plan Unlikely to Get Nod, Reports Say


N E T H E R L A N D S

KONINKLIJKE AHOLD: Wal-Mart Eyes Latin America Assets


N O R W A Y

PETROLEUM GEO-SERVICES: Commences U.S. Chapter 11 Filing
PETROLEUM GEO-SERVICES: Case Summary & 20 Unsecured Creditors
PETROLEUM GEO-SERVICES: Fitch Downgrades Senior Notes to 'D'


P O L A N D

BANK PEKAO: Deputy President Fiorentino to Resign from Office


S L O V A K   R E P U B L I C

VSZ KOSICE: Using Reserve, Retained Profits To Cover 2002 Losses


S P A I N

LYCOS EUROPE: Losses Reduced Significantly in First Half 2003


S W E D E N

FRAMFAB AB: Reports Interim Results for January to June 2003
FRAMFAB: Plans to Carry Out Limited Special Issue of New Shares


S W I T Z E R L A N D

ABB LIMITED: Reports Solid Progress in Second Quarter
ABB LTD.: Asbestos Issues Threaten to Block Crucial Disposal
ABB LTD.: Cegelec Acquires Building Systems Belgium, Netherlands


U N I T E D   K I N G D O M

ABBEY NATIONAL: To Reveal Profits Plunge Amidst Restructuring
AES DRAX: AES Cautions Creditors on International Power's Offer
AMP LIMITED: Sells Australian Construction Finance Loans
BRITISH AIRWAYS: Continuing Talks with Trade Unions
CARBO PLC: To Cut Additional Jobs Under Restructuring Plan

COOKSON GROUP: Releases Results for First Half of 2003
EINSTEIN GROUP: Television Subsidiary Goes into Liquidation
HARTSTONE GROUP: Cost-Cutting Fails to Prevent Plunge into Red
SCHRODER EMERGING: Discloses Final Terms of Asset Transfer
SMG PLC: Settles Case Brought by Chris Evans on His Dismissal

ST. JAMES'S: Issues Interim Results for Six Months
YEOMAN PLC: Administrators Finalize Sale of Laser-Scan Business


                            *********


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C Z E C H   R E P U B L I C
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SPOLANA NERATOVICE: Sokato to Insist on Liquidating Company
-----------------------------------------------------------
Representatives of Spolana Neratovice minority shareholder Sokato
threatened to file a complaint against the results of the
company's extraordinary meeting after other shareholders did not
approve its proposal to liquidate the company.

Brno-based company Sokato questioned the validity of the vote of
Spolana's majority owner Unipetrol.  Sokato board chairwoman Hana
Tovarkova, in addition, criticized Czech Consolidation Agency
CKA's vote saying: "Unipetrol and CKA are controlled by the state
and must announce beforehand that they will be acting in concert.
They did not do that [Mon]day."  The minority shareholder
maintained that without the votes, the proposal would have been
passed.

Ms. Tovarkova said: "We believe that the proposals we have
submitted have actually been approved."

But the report says otherwise, since Sokato itself did not vote
for its proposal.  Sokato did not explain why.

Unipetrol said Sokato could file a complaint against the result,
but did not comment further.

Spolana Neratovice sustained a loss of CZK491.3 million, and
CZK699.7 million in 2002, and 2001, respectively.



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


ALCATEL: Records EUR675 Million Net Loss in Second Quarter 2003
---------------------------------------------------------------
Highlights:

(a) Sales up sequentially by 6% at EUR3,149 million;
(b) Gross margin improved sequentially and by 5 points YoY;
(c) Operating results turn positive at EUR21 million;
(d) Net cash position remains strong at EUR476 million.

Alcatel's Board of Directors (Paris: CGEP.PA and NYSE: ALA)
reviewed second quarter 2003 results.  Second quarter sales
increased sequentially by 6% to EUR3,149 million.  At a constant
exchange rate, sales increased by 9%.  Year over year, sales
decreased 26% (19% at constant exchange rate).  Income from
operations amounted to EUR21 million, while net loss was
registered at EUR675 million or diluted EUR(0.56) per share (USD
(0.64) per ADS).

Serge Tchuruk, Chairman and CEO summarized the Board's
observations:

"Alcatel returned to operational profitability in the second
quarter with each business segment either at breakeven or
positive.  Gross margins continued to grow sequentially leading
to a 5-point improvement year over year.  Fixed costs declined
substantially in Q2.  They should continue to decline in coming
quarters and, based on expected trends, the relative rate of
change in sales and fixed costs should favorably impact
profitability.  Our employees can be proud of these
accomplishments, as they have been achieved in a depressed
market, with a weakened U.S. dollar and unprecedented pricing
pressures."

"We continue to maintain a severe restructuring pace, with our
net loss reflecting associated termination and depreciation
costs, including those related to the divestment of the Optronics
business.  Once again working capital improvements cover cash
outs, leaving our positive net cash situation practically
unchanged.  This extensive restructuring is combined with
strategic moves, such as the divestiture of our optical
components business, and with process improvements in core
operations.  These programs will continue throughout the second
half, resulting in a streamlined company with minimum capital
employed in operations."

"At the same time, we remain focused on offering solutions
responding to the increasing concern of carriers for revenue
growth opportunities, particularly in broadband access and   
mobile infrastructure and applications.  Our good performance in
Q2 in these areas offset continuing challenges in the overall
optics portfolio and in cellular handsets.  Also, we are pleased
by our increasing momentum in enterprise IP telephony and
applications.  Our acquisition of TiMetra, a technology leader in
IP edge service routers, will considerably enhance our capability
in the IP carrier space".

Outlook

"While our environment remains difficult, we still anticipate
that the market in the second half of this year will be close to
the second half of 2002, at a constant dollar/euro exchange rate.  
For the third quarter we expect Alcatel's revenues to be about
stable, with a continued improvement in our operating results in
line with the declining trend of our costs."

"Today we are comfortable with our previously stated targets for
the year.  We intend to significantly increase our marketing
efforts as our customers are beginning to look more towards the
future and are exploring their own strategic options".

Second Quarter Business Update

Fixed Communications

Second quarter revenue increased sequentially by 6.8% to EUR1,405
million from EUR1,315 million.  The broadband access activity
benefited from a sustained demand in DSL worldwide and recorded
sales of 5.5 million lines during the first half of this year, a
55% increase compared to the first half of last year.  Voice
networks turned in a good performance, especially in China.   
Optical network sales increased substantially from a very low
level in Q1, particularly in terrestrial transmission where
significant growth was recorded in the SDH business.  However,
the overall optical market continues to be depressed.

Fixed Communications was breakeven at the operating level,
compared to a loss of -EUR81 million in Q1 with increasing
profitability in the broadband access activity.  Optical networks
continued to narrow its losses due to the effects of
restructuring.

Mobile communications

Second quarter revenue increased sequentially by 4.5% to EUR834
million from EUR798 million.  Mobile networks grew in the
quarter, particularly in China, and continued to gain market
share, which more than offset the weak mobile phone sales.

Income from operations was EUR10 million compared to EUR15
million in Q1.  The mobile networks' sequential growth in
profitability was partially offset by the negative results of
mobile phones.

Private Communications

Second quarter revenue increased sequentially by 6.3% to EUR1,012
million over EUR952 million.  This increase is primarily
attributed to the space activity which registered good satellite
deliveries and which also benefited from substantial order intake
during the quarter.  Enterprise activities were sustained by an
upturn in the IP telephony markets where Alcatel is well
positioned, which offset the decline of the traditional voice PBX
business.  Genesys turned in a very good performance during the
quarter, particularly in Europe.  The Integration and Services
business continues to grow, in particular private communications
network design as well as fixed infrastructure projects in
emerging markets.

Income from operations was EUR37 million compared to a loss from
operations of -EUR21 million in Q1.  The increase was largely
volume related but also resulted from better margins and lower
fixed costs with a significant contribution from Integration and
Services and Transport Solutions.

Second Quarter 2003 Results (unaudited)

PROFIT AND LOSS STATEMENT:

Net Sales: EUR3,149 million vs. EUR4,234 million 2Q 02 (down 26%)
and vs. EUR2,958 million sequentially (up 6%).

Geographical distribution of sales:
- W. Europe:            42%
- Other Europe:           8%
- North America:        15%
- Asia:                 17%
- RoW:                  18%

Gross margin: 31.4% (30.2% for Q1 2003).

Selling, general and administration costs: -EUR568 million (18.0%
of sales).

Research and development expenses: -EUR401 million (12.7% of
sales).

Income (loss) from operations: EUR21 million, which included
-EUR2 million in inventory depreciation vs. -EUR16 million in Q1
03,

Earnings before tax and amortization of goodwill: -EUR447 million
and included:

(a) Interest paid on convertible bonds -EUR12 million

(b) Net financial loss of -EUR67 million

(c) Restructuring costs of -EUR305 million

(d) Net other revenue/(expenses) of -EUR84 million

Net Income Pre-Goodwill and Minority Interest: -EUR568 million

Net Income: -EUR675 million and included a related tax charge of
-EUR17 million, share in net income of equity affiliates and
discontinued activities of -EUR104 million, goodwill amortization
of -EUR115 million, and minority interests of EUR8 million.

Diluted A share EPS: -EUR0.56 [USD (0.64) per ADS] based on an
average of 1.20 billion A shares.

BALANCE SHEET ITEMS:

Operating working capital: EUR987 million, a sequential decrease
of EUR273 million

Cash and equivalents: EUR7,000 million, compared to EUR6,206
million at the end of Q1 2003.

Net Cash: EUR476 million.

Gearing:  (11%)

Operating Cash Flow: -EUR35 million.

About Alcatel

Alcatel provides end-to-end communications solutions, enabling
carriers, service providers and enterprises to deliver contents
to any type of user, anywhere in the world.  Leveraging its   
long-term leadership in telecommunications networks equipment as
well as its expertise in innovative applications and network
services, Alcatel enables its customers to focus on optimizing
their service offerings and revenue streams.  With sales of
EUR16.5 billion in 2002, Alcatel operates in more than 130
countries.


ASSURANCES GENERALES: Negotiates with ING re AGF Belgium Disposal
-----------------------------------------------------------------
Assurances Generales de France SA said in a statement it is in
negotiation with ING regarding the eventual disposal of its
Belgium bank subsidiary AGF Belgium Bank.

The company also said last week it was in exclusive talks with
Credit Foncier over the sale of its 72% stake in property finance
subsidiary, Entenial.

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.  

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.

CONTACT:  AGF
          Investor Contacts
          Jean-Michel Mangeot
          Phone: 33 (0)1 44 86 21 25
          E-mail: jean-michel.mangeot@agf.fr

          Marc De Ponteves
          Phone: 33(0) 1 44 86 20 99
          E-mail: marc.de_ponteves@agf.fr

          Vincent Foucart
          Phone: 33 (0)1 44 86 29 28
          E-mail: vincent.foucart@agf.fr


RHODIA SA: Outlook Revised to Negative Due to Poor Q2 Results
-------------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
France-based chemicals manufacturer Rhodia SA to negative from
stable, following poor second quarter results.  At the same time,
Standard & Poor's affirmed its 'BB+' long-term and 'B' short-term
corporate credit ratings on the company.  The 'BB' senior
unsecured debt ratings and the 'BB-' subordinated debt ratings
were also affirmed.

"The group's financial leverage is still excessive at a time when
the operating performance of Rhodia might continue to suffer from
raw material price volatility and weak demand across key end
markets," said Standard & Poor's credit analyst Ralf Kortuem.

Over the past 12 months, ended June 30, 2003, Rhodia reported
EBITDA (restated for divestitures and current foreign exchange
rates) of EUR558 million (after restructuring expense of EUR30
million), which compares with net financial debt (including
securitizations) of about EUR2.6 billion at June 30, 2003.  In
addition, the group's pension obligations were underfunded by
more than EUR900 million at Dec. 31, 2002.

"The group's financial performance in the third quarter will
likely remain weak," said Mr. Kortuem.  "Although the group's
average raw material costs should decrease in the near term,
positive effects on operating margins are unlikely to be realized
fully before the fourth quarter.  In addition, there are
currently no signs of an immediate improvement in the economic
environment," he added.  This expectation is corroborated by last
week's third-quarter profit warning of Royal DSM N.V. (DSM; A-
/Stable/A-2). The chemicals activities of Rhodia and DSM are
exposed to a number of common end markets.

The ratings on Rhodia might be lowered if the group's operating
performance remains depressed over the next few quarters, if
further deleveraging through disposals cannot be achieved
quickly, or if the targeted fixed-cost reductions from the
group's ongoing restructuring program do not lead to a recovery
in earnings.  The group is expected to modestly reduce its net
financial indebtedness (including securitizations) by year-end
2003, supported by seasonal movements in working capital,
continued control of capital expenditure, proceeds from the
agreed disposal of the flame-retardant activity, and the
expectation of a slight recovery of EBITDA in the fourth quarter.


VIVENDI UNIVERSAL: Metro-Goldwyn Withdraws Offer for U.S. Asset
---------------------------------------------------------------
Metro-Goldwyn-Mayer Inc. decided not to push ahead with its
US$11.5 billion offer for Vivendi Universal's U.S. entertainment
assets, according to Bloomberg.

The film studio controlled by billionaire Kirk Kerkorian said the
company's asking price was too high.

Vivendi's price expectations weren't ``consistent with our
valuation of the assets,'' the company said in a statement.  The
asset for sale includes the Universal film studio and theme parks
and the USA, Trio and Sci Fi cable networks.

Metro-Goldwyn's withdrawal from the bidding process left four
potential buyers: Edgar Bronfman Jr., General Electric Co.'s NBC,
John Malone's Liberty Media Corp. and Viacom Inc.  

The move could make Vivendi lose leverage in its negotiations
with the remaining bidders, the report quoted an investor saying.

``Every time a strong bidder removes itself from the bidding
process, it's going to remove the urgency of the other bidders to
some degree,'' said Anthony Valencia, an analyst at TCW Group
Inc. in Los Angeles, which owns about 2.4 million MGM shares.

Vivendi said earlier it would consider an initial share sale for
Vivendi Universal Entertainment if it does not find a buyer
willing to pay for its asking price.



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


BERTELSMANN AG: Falling Earnings Prompt Foundation's Budget Cut
---------------------------------------------------------------
Bertelsmann Foundation will see its budget cut by 9.7% next year
due to difficulties at Bertelsmann AG, Bloomberg said citing
Focus magazine.

According to the report, the budget, which currently stands at
EUR72 million, will be cut by EUR7 million (US$8.1 million) in
2004 as falling earnings hit Germany's largest media company.  
Bertelsmann also cut its dividend payment to the Guetersoh-based
foundation by a third to EUR63 million this year.

The Bertelsmann Foundation currently oversees 120 projects in
areas such as education, politics and health.  It has recently
tasked former McKinsey & Co. consultant Johannes Meier to manage
the foundation's finances and personnel.  Mr. Meier will start
his responsibility on October 1.  He will be closely working with
the foundation's chairman, Heribert Meffert.


BERTELSMANN AG: Sale of BertelsmannSpringer Partially Cleared
-------------------------------------------------------------
The European Commission has authorized the acquisition of joint
control by the investment companies Candover and Cinven of the
German based academic and professional publisher
BertelsmannSpringer.  

The transaction will lead to a combination of BertelsmannSpringer
and the Dutch publisher Kluwer Academic Publishers acquired by
Candover and Cinven in 2002.  

It will also combine BertelmannSpringer's business with the
French professional publisher MediMedia, co-controlled by Cinven.  
The Commission found that the transaction would raise competition
concerns in the market for professional medical publishing in
France.  Candover and Cinven successfully resolved these concerns
by offering commitments.

Both BertelsmannSpringer and Kluwer Academic Publishers are
active in the global market for academic publishing with a
special focus on scientific, technical and medical (STM)
journals, nearly exclusively published in English language.  This
market deals with the access to the latest developments in
academic research.  It exhibits some specific features: A main
feature is the "must have" characteristic of certain journals.  
Universities depend on the information provided in such journals
and cannot afford to cancel subscriptions without loosing access
to the most recent issues discussed in the academic community.  A
further feature of the market are considerable annual price rises
for more than a decade.

The combined BertelsmannSpringer and Kluwer Academic Publishers
will be the number two player in the market - lagging far behind
the market leader Elsevier Science.  Given the heterogeneity of
journals and books published in different scientific disciplines
and the heterogeneous nature of these books and journals even if
published within a discipline, the Commission found no
indications for a collective dominant position of Elsevier
Science and the new entity resulting from the merger.

BertelsmannSpringer and MediMedia are both active in the French
and German markets for professional medical publishing. These
markets comprise newspapers, magazines, drug directories mainly
addressed to doctors and financed by advertising.  Whereas the
transaction did not raise competition concerns for the German
market, the Commission's investigation showed that the operation
would lead to a dominant position on the French market.  Candover
and Cinven removed these competition concerns by offering to
divest BertelsmannSpringer's French business in the market for
professional medical publishing, known under the name "Groupe
Impact Medicine".


DEUTSCHE BANK: Repon 16 Class 2 Notes on Watch Negative
-------------------------------------------------------
Standard & Poor's Ratings Services said it placed the 'CCC-'
credit rating on the class 2 notes issued by Deutsche Bank AG in
its Repon 16 securitization on CreditWatch with negative
implications.  This follows the receipt of a credit event notice
on a reference entity and the continued deterioration of the
credit quality of the remaining entities in the pool.  The
ratings on the other notes issued in Repon 16 are unchanged.

The credit event, the sixth to date in this transaction, was
triggered after reference obligor Mirant Corp. filed a Chapter 11
petition on July 14, 2003. The transaction has now experienced a
pool principal reduction of EUR120 million and a net loss of
EUR79.64 million, materially reducing principal in the junior
class 3 notes by EUR23 million (63% of the initial value).

"Benchmark Mirant securities are currently trading at 42% of par,
having peaked at 84% in April this year," said Suresh Hegde, a
credit analyst at Standard & Poor's European Structured Finance
Ratings group in London.

"The transaction now requires a recovery of at least 30.449% to
save 100% loss of principal on the class 3 notes and subsequent
primary principal erosion in the class 2 notes."

The ratings on the notes issued under Repon 16 will continue to
reflect the credit support in the form of subordination provided
by the first-loss pieces, the credit risk of the reference
portfolios, the mechanics of the credit default swaps, and the
'AA-' rating on Deutsche Bank's existing European MTN program,
within which the Repon securitizations were completed.

                                          RATINGS LIST
Class                                        Rating
                                       To                   From
Repon 16
EUR41.7 Million Credit-Linked Notes 2  CCC-/Watch Neg       CCC-


DEUTSCHE TELEKOM: Regulator Approves T-Com Rates Proposal
---------------------------------------------------------
The Regulatory Authority for Telecommunications and Posts has
approved T-Com's rates proposal for analog T-Net lines and price
reductions in the City zone.  The new prices will apply from
September 1, 2003.  The basic monthly charge for the analog T-Net
line will then be EUR15.66.  As part of this price measure, the
basic monthly charge for a T-Net 100 will be adjusted to
EUR18.45.  From September, the one-time installation charge for
lines will come to EUR59.95, and the charge for reactivating a
previous subscriber line will be EUR29.94 with the approval.

To prevent their customers from being disadvantaged by these
changes, T-Com is reducing its standard City rates by up to 50%.  
For this purpose, the City zone time intervals for the analog T-
Net line and the T-ISDN lines have been harmonized and
simplified.  The favorable T-Com City rate applies to calls to
all neighboring local networks within 20 km, as well as calls in
the customer's own local network.

The Regulatory Authority has not yet reached a decision on the
new attractive optional rate plans applied for in June: the new
AktivPlus xxl will make it possible to make free calls on
Saturdays.  Customers who take up this offer in future, would
then be able to make free calls to the German fixed network on
Saturdays, Sundays and national public holidays for a monthly
fee.

T-Com also plans to offer its customers the new AktivPlus
Calltime 120 rate for a small monthly charge.  The innovative
rates model includes 120 minutes of free calls per month in the
City and Deutschland zones.  From the 121st minute, the favorable
AktivPlus prices for City and Deutschland calls apply.

For further information click: http://www.telekom3.de/en-
p/medi/2-pr/2003/07-j/030729-regulierungsb-ar.html



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I T A L Y
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ALITALIA SPA: Massive Crew Sickness Organized, Report Says
----------------------------------------------------------
The reports of illnesses that cancelled Alitalia' flights early
in June "was an organized protest," according to the Guarantee
Commission on the Right to Strike.

Large numbers of flight attendants called in sick for three
straight days at the beginning of June.  The staff denied acting
in concert but at that time, Dow Jones said the flight attendants
were upset about the struggling Italian airlines plan to cut back
on the number of attendants on domestic flights and on European
flights.  

Agenzia Giornalistica Italia said the Commission, which
considered the group's action a violation, found out that doctors
issued dozens of medical certificates on the same day.

The Commission could not sanction the organizers of the 'strike,'
but recommended that Alitalia discipline staff who could not
present a valid reason.


CIRIO FINANZIARA: Rescue Plan Unlikely to Get Nod, Reports Say
--------------------------------------------------------------
Cirio Finanziaria was widely expected to have only a slim chance
of having its restructuring plan approved by bondholders.  

According to Agenzia Giornalistica Italia, Cirio's board of
directors, who met last week, took note of unlikely getting a
quorum to approve the plan.  There will be a majority, but not a
quorum, the report said.

On Monday the board presented to bondholders a debt-for-equity
swap that they claimed could stave off bankruptcy.  Livolsi &
Partners and Rothschilds were given mandate to explore possible
ideas on the integration of the proposed contents of the plan.  
But bondholders could prove hard to convince, Food Navigator said
prior to the meeting.

The plan could effectively wipe off up to 80% of the value of
their bonds, the report said.  Many bondholders believe they
could actually get at least part of their investment under
bankruptcy, according to the report.

Local press reports say a proposal from former chairman Sergio
Cragnotti remains the only alternative solution for Cirio after
creditor banks refused to dump more cash into the company, and
the Italian government ruled out participation.

Cragnotti was seen as the main reason for Cirio's troubles, and
his offer to join forces with Turkey's Cukurova group to pay off
Cirio's debts was rejected earlier this month.  But Cirio might
soon cling to the proposal of its former executive if bondholders
reject its own proposal, the report said.

Cirio's troubles began in November last year when it defaulted on
a bond repayment.



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


KONINKLIJKE AHOLD: Wal-Mart Eyes Latin America Assets
-----------------------------------------------------
Wal-Mart Stores Inc., the world's biggest retailer by sales, is
reportedly interested in buying Royal Ahold N.V.'s businesses in
Brazil, Argentina and Peru.

Online news agency Food Navigator, citing a Reuters' report, said
Wal-Mart could be about to fortify its reputation as the most
international of U.S.-based retailers with the possible
acquisition of Ahold's Latin American units.  

Sources close to the matter told Reuters Wal-Mart hasn't made an
offer yet for the Brazilian unit because it wants to make a
single bid for all three units.  However, the U.S. retail giant
could face rival bids for the Brazilian units from France's
Carrefour and local market leader Companhia Brasileira de
Distribuicao, the sources further suggested.  

Troubled Dutch retailer Ahold is selling its Latin American
business as part of a major strategic overhaul and to help pay
off debts of EUR12 billion.

Its Brazilian assets include supermarket chains Bompreco
Supermercados do Nordeste and G Barbosa Comercial, as well as the
company's Hipercard credit card business.  Bompreco, Brazil's
fourth-largest retailer, has 119 stores, while G Barbosa has 32
stores.

The company is also looking for a buyer for its Disco unit in
Argentina and its two Peruvian supermarket chains.



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N O R W A Y
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PETROLEUM GEO-SERVICES: Commences U.S. Chapter 11 Filing
--------------------------------------------------------    
Petroleum Geo-Services ASA (OSE: PGS; OTC: PGOGY) announced
Tuesday that as the next step in its ongoing restructuring
efforts, the company voluntarily filed a petition for protection
under Chapter 11 of the United States Bankruptcy Code in the U.S.
Bankruptcy Court for the Southern District of New York.

This filing is an important development in the restructuring
process which, as previously announced on June 18, 2003, is
intended to, among other things, maximize recovery to
stakeholders of the Company and provide a solid capital
structure, aligned with projected future cash flows, that can
support the Company's future business development.  This filing
follows a previously announced agreement with a majority of both
the Company's banks and bondholders and its largest shareholders
whereby they have agreed to support the company's Plan of
Reorganization in the Chapter 11 case.

This case will be at the parent company (PGS ASA) level only and
will not involve the company's operating subsidiaries, which will
continue full operations, leaving current and future customers,
lessors, vendors, employees and subsidiary creditors unaffected.  
It is intended that none of the company's subsidiaries would be
involved in a Chapter 11 case.

As previously announced, the proposed restructuring involves a
restructuring of the PGS Group's total debt to a sustainable
level, from approximately US$2.5 billion to approximately US$1.3
billion.  This is achieved through conversion of the existing
bank and bond debt into new debt and a majority of PGS's post-
restructuring equity.

The company also filed the Plan with the Court, which reflects
the previously announced terms of the restructuring.  In summary,
the major terms of the Plan are as follows:

Petroleum Geo-Services's US$2,140 million senior unsecured
creditors (Affected Creditors), comprising US$680 million of bank
debt and US$1,460 million of bond debt, would be entitled to
select between two alternative recovery packages, one consisting
of a senior unsecured term loan facility and the other consisting
of a combination of unsecured notes and 91% of PGS post-
restructuring equity, to be reduced to 61% after Petroleum Geo-
Services shareholders acquire 30% of the total post-restructuring
shares for US$85 million.  Both recovery packages would be
entitled to cash in excess of US$50 million, as further defined
in the Plan.

Creditors of the Petroleum Geo-Services Group other than the
Affected Creditors and holders of PGS Trust I Trust Preferreds
would not be affected by the restructuring and would retain their
existing claims upon completion of the restructuring.

Holders of Trust Preferreds would be given 5% of Petroleum Geo-
Services's post-restructuring equity.

Existing shareholders would be given 4% of Petroleum Geo-
Services's post-restructuring equity and the right to acquire
shares on the terms set forth above to reach 34% of the equity,
underwritten by three of Petroleum Geo-Services's major
shareholders, Umoe AS (US$60 million), CGG (US$22 million) and TS
Industri Invest (US$3 million).

Under the Plan, Petroleum Geo-Services would have the right to
establish a US$70 million secured working capital facility and a
US$40m bonding facility.

In connection with the filing of the Plan, the company also filed
with the Court a related disclosure statement that includes,
among other things, background information regarding the company
and the circumstances giving rise to its Chapter 11 filing, a
description of the terms and conditions of the Plan (including
the treatment proposed for holders of claims and interests) and
relevant valuation analyses and financial projections which are
updated from the analyses and projections previously disclosed on
June 18, 2003.  The company has also submitted the Plan,
Disclosure Statement and a draft prospectus with the Oslo Stock
Exchange.  Petroleum Geo-Services intends to make available
copies of the filing documents on its website at
http://www.pgs.com

The company intends for the restructuring to be completed before
the year-end 2003, following Court approval of disclosure
materials and creditor and shareholder approval.

Petroleum Geo-Services is a technologically focused oilfield
service company principally involved in geophysical and floating
production services.  Petroleum Geo-Services provides a broad
range of seismic- and reservoir services, including acquisition,
processing, interpretation, and field evaluation.  Petroleum Geo-
Services owns and operates four floating production, storage and
offloading units (FPSO's).  Petroleum Geo-Services operates on a
worldwide basis with headquarters in Oslo, Norway.  For more
information on Petroleum Geo-Services visit http://www.pgs.com

CONTACT:  PETROLEUM GEO-SERVICES
          Sverre Strandenes, SVP Corporate Communications
          Dag W. Reynolds, Director European
          IRPhone: +47 67526400

          Suzanne M. McLeod,
          U.S. IRPhone: +1 281-589-7935


PETROLEUM GEO-SERVICES: Case Summary & 20 Unsecured Creditors
-------------------------------------------------------------
Debtor: Petroleum Geo-Services ASA
        PGS House
        P.O. Box 89
        1325 Lysaker, Norway
        aka Petroleum Geo-Services AS

Bankruptcy Case No.: 03-14786

Type of Business: The Debtor is a technology-based service
                  provider that assists oil and gas companies
                  throughout the world.

Chapter 11 Petition Date: July 29, 2003

Court: Southern District of New York (Manhattan)

Judge: Burton R. Lifland

Debtor's Counsel: Matthew Allen Feldman, Esq.
                  Willkie Farr & Gallagher
                  787 Seventh Avenue
                  New York, NY 10019-6099
                  Tel: 212-728-8000
                  Fax: 212-728-8111

Total Assets: Approximately $3,686,621,000 (as of May 31, 2003)

Total Debts: Approximately $2,444,341,000 (as of May 31, 2003)

Debtor's 20 Largest Unsecured Creditors:

Entity                      Nature Of Claim       Claim Amount
------                      ---------------       ------------
Law Debenture Trust Co.     Bond Debt             $450,000,000
of New York, as Indenture
Trustee under 7 1/8% Notes
due March 2028
780 Third Avenue
31st Floor
New York, NY 10017
Attn: Daniel R. Fisher, Esq.
Senior Vice President
Tel: 212-750-6474
Fax: 212-750-1361

Chase Manhattan Int'l Ltd.  Bank Debt             $430,000,000
(now JPMorgan Europe Ltd
plc), as agent under a certain
Revolving Credit Agreement
dated as of September 4, 1998
125 London Wall, London EC2V 7RF
United Kingdom
Attn: Albert C. Stein,
Vice President
Tel:+44 207 777 3377
Fax:+44 207 777 3459


Law Debenture Trust Co.     Bond Debt             $360,000,000
of New York, as Indenture
Trustee under 7-1/2% Notes
due March 2007
780 Third Avenue
31st Floor
New York, NY 10017
Attn: Daniel R. Fisher, Esq.
Senior Vice President
Tel: (212) 750-6474
Fax: (212-750-1361

Law Debenture Trust Co.     Bond Debt             $250,000,000
of New York, as Indenture
Trustee under 6-1/4% Sr
Notes due November 2003
780 Third Avenue
31st Floor
New York, NY 10017
Attn: Daniel R. Fisher, Esq.
Senior Vice President
Tel: (212) 750-6474
Fax: (212-750-1361

The Bank of Nova Scotia,    Bank Debt             $250,000,000
as agent under a certain
$250,000,000 Credit Facility
dated March 14, 2002
Scotia House
33 Finsbury Square,
London EC2A 1BB
Attn: James Forward,
Managing Director Energy
and Project Finance
Tel: +44 207 826 5751
Fax: +44 207 454 9019

Law Debenture Trust Co      Bond Debt             $200,000,000
of New York, as Indenture
Trustee under 6-5/8% Notes
due March 2008
780 Third Avenue
31st Floor
New York, NY 10017
Attn: Daniel R. Fisher, Esq.,
Senior Vice President
Tel: 212-750-6474
Fax: 212-750-1361

Law Debenture Trust Co.     Bond Debt             $200,000,000
of New York, as Indenture
Trustee under 8.15% Notes
due July 2029
780 Third Avenue
31st Floor
New York, NY 10017
Attn: Daniel R. Fisher, Esq.
Senior Vice President
Tel: 212-750-6474
Fax: 212-750-1361

OakTree Capital Mgt.        Bondholder            $182,031,000
333 South Grand Ave.,
28th Floor
Los Angeles, CA 90071
Attn: Sheldon Stone/
      Rich Mason
Tel: 213-830-6300
Fax: 213-830-8564/
     213-830-6494

Manufacturers and Traders   Bond Debt            $143,750,0002
Trust Company (successor
by merger to Allfirst
Trust Co. Nat'l Association),
as Indenture Trustee under
9-5/8% Junior Sub. Debentures
due 2039
25 South Charles Street,
16th Floor
Baltimore, MD 21201
Attn: Jay Smith,
Corporate Trust Services
Tel: 410-244-4223
Fax: 410-244-3725

MacKay Shields              Bondholder            $111,920,000
9 West 57th Street
37th Floor
New York, NY 10019
Attn: Donald Morgan
Tel: 212-758-5400
Fax: 212-754-9187

MetLife Securities          Bondholder             $90,995,000
10 Park Avenue
Morristown, NJ 07962
Attn: Thomas Lenihan
Tel: 973-254-3243
Fax: 973-355-4760

Atlantic Life Insurance    Bondholder              $77,333,000
(TIMCO)
1 Tower Squire
9 Plaza Building
Hartford, CT 06183
Attn: Jordan Stitzer
Tel: 860-277-3992
Fax: 860-277-9996

John Hancock Fin'l          Bondholder             $71,385,000
Services
101 Huntington Avenue
Boston, MA 02199
Attn: Roger Nastou
Tel: 617-572-9614
Fax: 617-572-5493

California Public           Bondholder             $65,232,000
Employees Ret. System
400 P St.; Suite 3492
Sacramento, CA 95814
Attn: Dan Keifer
Tel: 916-326-3380
Fax: 916-341-2875

Varde Investment Partners   Bondholder             $63,747,000
3600 West 80th St.;
Suite 425
Minneapolis, MN 55431
Attn: George Hicks &
      Marcia Page
Tel: 952-853-9315
Fax: 952-893-9613

AIG/SunAmerica Asset Mgt.   Bondholder             $43,000,000
2929 Allan Parkway
Houston, TX 77019
Attn: Gordon Massie
Tel: (713) 831-1910
Fax: (713) 831-6218

AEGON USA Investment Mgt.   Bondholder             $37,318,000
4333 Edgewood Road, N.E.
Cedar Rapids, IA 52499
Attn: David Halfpap
Tel: 319-398-8556
Fax: 319-398-8913

HBV Capital Management      Bondholder             $28,667,544
200 Park Avenue
New York, NY 10166
Attn: Jonathon Bean
Tel: 212-808-3950
Fax: 212-808-3908

Nationwide Insurance Co.    Bondholder             $26,100,000
1 Nationwide Plaza
Columbus, OH 43215
Attn: Tom Gleason &
      Mike Groseclose
Tel: 614-249-7111
Fax: 614-249-2418

Allstate Investment Mgt.    Bondholder             $25,235,000
3075 Sanders Road
Northbrook, IL 60062
Attn: Eric Simonsin
Tel: 847-402-5000
Fax: 847-402-9788


PETROLEUM GEO-SERVICES: Fitch Downgrades Senior Notes to 'D'
------------------------------------------------------------
Fitch Ratings has lowered the rating of Petroleum Geo-Services'
senior notes and trust preferred securities to 'D' from 'C'
following the company's announcement on Tuesday that it has filed
under Chapter 11 of the U.S. Bankruptcy Code.  The rating
reflects the restructuring of the of Petroleum Geo-Services
Group's total debt to a sustainable level, from approximately
$2.5 billion to approximately $1.3 billion.  This will likely be
achieved through conversion of the existing bank and bond debt
into new debt and a majority of of Petroleum Geo-Services's post-
restructuring equity.  Fitch will withdraw the rating after 30
days consistent with its policy on defaulted/bankrupt credits
with limited market interest.  



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


BANK PEKAO: Deputy President Fiorentino to Resign from Office
-------------------------------------------------------------
Bank Pekao, which recently announced the resignation of its
president, will see yet another boardroom change as Pekao's
deputy president Paolo Fiorentino, will also step down, according
to Warsaw Business Journal.

The report citing Pekao's spokesman said Mr. Fiorentino will be
replaced by Luigi Lovaglio, the incumbent deputy president of
Bulbank, the biggest Bulgarian bank.

Bank Pekao president, Maria Wisniewska, will leave her post on
September 30.  She will be replaced by former Prime Minister and
current director of EBRD Jan Krzysztof Bielecki.

Ms. Wisniewska, who is neither retiring nor transferring to a new
job, clarified that her decision was not influenced by
conflicting development strategies within the bank.

"I believe that Pekao's strategy dating from 1998 has been
successfully completed," said Wisniewska, according to Warsaw
Business Journal.

It is unclear whether there are further changes in the management
board, but the spokesman said: "The new president would decide on
this issue."



=============================
S L O V A K   R E P U B L I C
=============================


VSZ KOSICE: Using Reserve, Retained Profits To Cover 2002 Losses
----------------------------------------------------------------
VSZ Kosice shareholders made two significant decisions at its
annual general meeting, one of which is how to cover the firm's
SKK4.85 billion loss in 2002, according to Interfax-Europe.

The shareholders agreed to use a SKK226.8 million reserve and
retained profits of SKK2.06 billion to cover part of the losses,
instead of cutting share capital.

They also decided against the wishes of minority shareholders to
withdraw the firm's shares from the capital market as proposed by
Penta Investments Ltd.  The move will restrict the trading of the
shares among current shareholders.  Minority shareholders argued
this will deprive some 80,000 small shareholders of the chance to
sell their stakes.  One small shareholder even threatened to file
legal action against the firm's majority owners.  

Minority shareholders include National Property Fund, which owns
16% of the company.

Following the withdrawal of VSZ Kosice's shares, the Bratislava
Stock Exchange will be left with only 13 major Slovak firms on
its list.

The Penta group holds a nearly 32% stake in VSZ, while the
London-based A.R.T. Investments Ltd. has a 33% share.



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


LYCOS EUROPE: Losses Reduced Significantly in First Half 2003
-------------------------------------------------------------
For the first six months 2003, Lycos Europe`s total revenues
declined by 32% to EUR42.4 million compared to EUR62.1 million in
the same period last year.  For the second quarter 2003, revenues
went down by 28% to EUR21.6 million compared to EUR30.0 million
in the same quarter 2002.  This decline was due to the sale of
loss-making subsidiaries and the loss of the advertising
agreement with Bertelsmann in October 2002.

Adjusted for the sale of group companies total revenues decreased
by 20% for the first six months 2003.  On the same pro forma
basis advertising revenues dropped by 39% while paid services and
shopping revenues increased by 83% to now EUR9.7 million.

Due to the restructuring program initiated in 2001 and the
subsequent reduction of operational costs Lycos Europe succeeded
again in significantly reducing its losses.  EBITDA (Earnings
Before Interest, Taxes, Depreciation, and Amortization) reduced
by 49% to -EUR20.5 million for the first six months 2003 compared
to -EUR39.8 million for the same period last year.  For the
second quarter 2003, EBITDA amounted to -EUR9.6 million compared
to -EUR22.4 million in the same quarter 2002.  Net loss reduced
by 81% from -EUR147.1 million for the first six months 2002 to -
EUR27.2 million for the same period 2003.  Adjusted for a
goodwill impairment loss of -EUR100.4 million in 2002 net loss
reduced by 42%.  For the second quarter, net loss reduced by 55%
from -EUR27.5 million in 2002 to -EUR12.5 million in 2003.  On
June 30, 2003, Lycos Europe`s cash, cash equivalents and deposits
amounted to EUR195.7 million.  Lycos Europe`s financial
statements have been prepared in accordance with the United
States generally accepted accounting principles.



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


FRAMFAB AB: Reports Interim Results for January to June 2003
------------------------------------------------------------
Framfab began collaborating with 30 new clients during the first
half of the year, while continuing to enjoy the trust of all of
its big clients.  Owing partly to postponed assignments, net
revenue was lower than in the first quarter.  Net revenue totaled
SEK132.3 million (195.7) in January-June and SEK59.7 million
(87.8) in April-June.

The loss after tax was -SEK72.7 million (-29.4) for January-June
and -SEK69.3 million (-23.0) for April-June, -SEK37.2 million of
which was attributable to the divestment of shares in B2 Bredband
AB and -SEK11 million to provisions for planned measures.  
Earnings per share amounted to -SEK0.15 (-0.06) in January-June
and -SEK0.14 (-0.05) in April-June.

Cash flow of -SEK1.9 million (-7.4) for April-June represented a
considerable improvement over January-March.  The previously
announced proceeds of SEK12.8 million from the divestment of the
B2 Bredband AB holding will be received in the third quarter.

Framfab again established that it holds a leading position in the
field of digital brand communication by winning a Grand Prix at
the Cannes Lions International Advertising Festival.  This is the
fourth year in succession that the company has won an award at
Cannes.

The Malmo and Stockholm operations underwent restructuring during
the second quarter.  The company has decided to launch further
measures in the Group.  The measures will reduce annual costs in
excess of SEK40 million.

Poorer profitability as a result of restructuring and delayed
assignments, along with the third quarters traditional weakness,
is affecting the company's financial strength.  Framfabs clients,
which consist chiefly of large multinational groups, seek
suppliers that are financially strong.  As a result, the board
has proposed that an extraordinary meeting of shareholders
bolster liquidity by approving a limited special issue of new
shares.  An additional objective of the issue is to attract big
shareholders and be financially prepared for the likely
consolidation of the sector.

Given the present state of the business cycle, the board does not
expect a rapid recovery from the ongoing sluggishness of the
market in the second quarter.  Although it is difficult to
predict how the current weak demand will affect revenue for the
second half of the year, the objective for the company is to
attain profitability during the fourth quarter by means of
reduced costs.  Framfab is talking with other players about
potential strategic constellations that can generate additional
cost and marketing benefits.

The full report including tables can be downloaded from
http://www.waymaker.seor www.framfab.com

Framfab is a leading provider of consulting services and business
solutions based on Internet technology.  Most of Framfabs
customers are big international companies, including 3M, AXA, the
Coca-Cola Company, Danske Bank, Electrolux, Ericsson, Hydro
Texaco, IKEA, Kelloggs, Maersk Sealand, NEC Packard-Bell, Nike,
Observer, Postbank, SAAB, Volvo Car Corporation and UBS. Framfab
operates in Denmark, Germany, the Netherlands and Sweden. The
company is quoted on the O list of the Stockholm Stock Exchange
(ticker symbol FRAM).  For more information, please visit
http://www.framfab.com

CONTACT:  FRAMFAB
          Hollandargatan 20
          114 84 STOCKHOLM
          Phone: +46 (0)8 41 00 10 00
          Fax: +46 (0)8 20 28 08
          Home Page: http://www.framfab.com


FRAMFAB: Plans to Carry Out Limited Special Issue of New Shares
---------------------------------------------------------------
Framfab's clients, which consist chiefly of large multinational
groups, seek suppliers that are financially strong.  Thus, the
company deems it desirable to reinforce its financial position in
order to continue attracting new clients and retaining existing
ones.  A special issue of new shares will provide Framfab with
the opportunity to increase the number of its big shareholders
and ensure a favorable financial position prior to the likely
consolidation of the sector, in which the company plans to play
an active role.

Framfab's cash flow of -SEK1.9 million for the second quarter
represented a considerable improvement over the first quarter.  
Proceeds of SEK12.8 million from the divestment of shares in B2
Bredband AB will strengthen Framfab's cash position in the third
quarter.

As previously announced, Framfab's Malmo and Stockholm operations
were restructured during the second quarter and 30 employees left
the company.  The company has decided to launch further measures
in the Group.  The measures will reduce annual costs in excess of
SEK40 million, but will result in short-term charges on Framfab's
earnings and cash flow.  In addition, the third quarter is
traditionally weak and clients are demanding more extended terms
of payment for big assignments.  As a result, the board has
decided to increase the company's liquidity reserve.

Given the current shareholder structure, an issue that accords
priority to existing shareholders would be time-consuming and
entail high transaction costs.  Thus, the board does not regard
such an option to be defensible given that the company has only a
small capital requirement.  A special issue of new shares, which
will allow greater latitude to adjust the amount issued to the
company's needs, can be carried out in a timely and cost-
effective manner.

In view of the above, the board has decided to convene a special
meeting of shareholders for August 8, 2003 and to propose that
the meeting authorize the board to, on one or more occasions
until the next annual general meeting, issue a total of no more
than 130,000,000 new shares to a limited number of strategic or
financial investors.  Determination of the subscription price is
to be based on the market value of the company's stock at the
time of each issue.

Assuming that the issue is fully subscribed for at a subscription
price corresponding to the current market value of the stock,
Framfab will raise approximately 39 million kronor prior to
underwriting costs.  If the issue is fully subscribed for, the
company's share capital and votes will be diluted by
approximately 20%.

Framfab is a leading supplier of consulting services and business
solutions based on Internet technology.  The company's clients
are primarily large international firms, including 3M, AXA, Coca-
Cola, Danske Bank, Electrolux, Ericsson, Hydro Texaco, IKEA,
Kelloggs, Maersk Sealand, NEC Packard-Bell, Nike, Observer,
Postbank, SAAB, Volvo Car Corporation and UBS.  Framfab has
operations in Denmark, Germany, the Netherlands and Sweden.  The
company is quoted on the O list of the Stockholm Stock Exchange
(ticker symbol FRAM). For additional information, go to
http://www.framfab.com

CONTACT:  FRAMFAB AB
          Sven Skarendahl, Chairman of the Board
        Phone: +46 8 41 00 10 00
        E-mail: sven.skarendahl@framfab.se

        Anders Ekman, Chief Executive Officer
        Phone: +46 8 41 00 10 00
        E-mail: anders.ekman@framfab.se

        Christian Luiga, Chief Financial Officer
        Phone: +46 8 41 00 10 00
        E-mail: christian.luiga@framfab.se

        Tobias Bulow, Group Communications Manager
        Phone: +46 709 41 22 58
        E-mail: tobias.bulow@framfab.se



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


ABB LIMITED: Reports Solid Progress in Second Quarter
-----------------------------------------------------
Highlights:

(a) Double-digit EBIT growth;

(b) Cost reduction program yields savings of US$160 million;

(c) Net income burdened by discontinued operations, capital
    losses from divestments;

(d) Core divisions' operating cash flow at US$381 million.


ABB Q2 2003 key figures (US$ millions)
                    April-June 2003  April-June 20021  % change
                                                        nominal
Orders  
Group                   4,929             4,667           +6%
Power Technologies      1,923             1,809           +6%
Automation Technologies 2,473             2,322           +7%

Revenues  
Group                   5,061             4,534          +12%
Power Technologies      1,939             1,786           +9%
Automation Technologies 2,463             2,171          +13%

EBIT*            
Group                     171               150          +14%
Power Technologies        146               130          +12%
Automation Technologies   198               162          +22%
Non-core activities       -33                12

EBIT margin      
Group                    3.4%              3.3%
Power Technologies       7.5%              7.3%
Automation Technologies  8.0%              7.5%
Income/(loss) from discontinued operations                              
                         -87                -3
Net income/(loss)        -55                38

* Earnings before interest and taxes, see Summary Financial
Information for more information

1 Restated to reflect the move of businesses to discontinued
operations, a restatement filed by the Swedish Export Credit
Corp., and the impact of the equity conversion option
(bifurcation) on the convertible bond issued in May 2002. See
Summary Financial Information for more information

To see full report and financials:  
http://bankrupt.com/misc/ABB_LTD.htm


ABB LTD.: Asbestos Issues Threaten to Block Crucial Disposal
------------------------------------------------------------
ABB Ltd.'s complicated asbestos settlement case is threatening to
scuttle the proposed sale of the engineering group's oil, gas and
petrochemical division.

A leading U.S. trial lawyer promised to file legal action on any
buyer that would transact the purchase of the business, according
to the Financial Times.

Lawyers acting for asbestos victims argued that ABB's court-
approved settlement plan, which would cap its main exposure at
about US$1.2 billion, does not cover its oil, gas and petroleum
division at the same level.

Peter Voser, ABB's finance director, responded: "This is just a
technical issue: there is no real difference in the protection
given to the two companies."

Candover, the U.K. private equity fund, is reported willing to
pay about US$1bn for the unit.

"I find it astonishing that anybody would buy [the oil, gas and
petrochemical] when there is a risk of continuing asbestos
exposure," said Steven Kazan, a California lawyer representing
alleged victims of the division's Lummus subsidiary.

"Lummus is a relatively small part of ABB's total liability right
now but if it were bought by a large, wealthy company they would
attract many more claims."


ABB LTD.: Cegelec Acquires Building Systems Belgium, Netherlands
----------------------------------------------------------------
Cegelec, the international technological service group for the
public and private sector, has announced the acquisition of ABB
Building Systems in Belgium and the Netherlands.  This operation,
which reinforces the group's existing activities in those two
countries, gives Cegelec a strategic position in the Benelux
market.  This acquisition -- the first significant one since the
LMBO at the end of 2001 -- was made possible by the group's rapid
progress in reducing its level of debt.  The sale is subject to
approval by the appropriate authorities in Belgium.

In Belgium and the Netherlands, Cegelec currently has annual
revenues of EUR170 million and employs 1,700 staff.  This new
acquisition makes Cegelec one of the leaders in the electrical
and HVAC (Heating Ventilation & Air Conditioning) market in
Belgium.  In the Netherlands, Cegelec is once again greatly
strengthening its position, after the integration of the
Installation activity of Siemens at the beginning of the year.

After the integration period and the implementation of synergies,
in 2005, Cegelec revenues should amount to EUR350 million for the
Benelux countries.

About Cegelec

Cegelec (http://www.cegelec.com)is an integrated global group  
providing technological services to companies and local
authorities.  Cegelec has sales of approximately 2,8 billion and
employs 26,000 people in 30 countries.

Cegelec offers efficient solutions in: Energy, Electricity;
Automation, Instrumentation and Control; Information and
Communication technologies; HVAC, Mechanics and Mechatronics;
Long Term Service agreement.

About ABB

ABB (http://www.abb.com)is a leader in power and automation  
technologies that enable utility and industry customers to
improve performance while lowering environmental impacts.  The
ABB Group of companies operates in around 100 countries and
employs about 135,000 people worldwide.

CONTACT:  CEGELEC
          Laurence Mugniery, Communication Vice President
          Phone: +32 2 642 30 70
                 +33 1 55 51 47 40
          E-mail: laurence.mugniery@cegelec.com



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


ABBEY NATIONAL: To Reveal Profits Plunge Amidst Restructuring
-------------------------------------------------------------
Abbey National, Britain's sixth biggest bank, which is currently
undergoing a radical restructuring, is expected to disclose a
massive drop in half-time profits after taking a near GBP600
million hit for disastrous corporate loans.  

Profits are predicted likely to be down to GBP160 million from
GBP697 million at the same period last year, according to The
Observer.  Stockbroker Fyshe's own forecasts for the pre-tax
profits nailed the amount to GBP265 million, according to
Teletext.  

The plunging profits, however, are likely to be overshadowed by
an update on its sell-off program, online news agency Teletext
reported.

Under the program, the banking group will turn itself into a
mortgage and savings bank.  More details about this new direction
are expected when Abbey National reveals results.

Abbey said it had GPB2.8 billion in junk bonds, corporate debt
deemed to be sub-investment grade.  Sales of these bonds at a
loss are at the root of the write-downs to be unveiled.  

CONTACT:  ABBEY NATIONAL
          Jon Burgess, Investor Relations
          Phone: 020 7756 4182
          E-mail: jonathan.burgess@abbeynational.co.uk


AES DRAX: AES Cautions Creditors on International Power's Offer
---------------------------------------------------------------
U.S. energy group, AES, warned AES Drax's creditors against
accepting International Power's offer to acquire a stake in the
U.K.-based plant and pay part of its debt, according to The
Times.

International Power said last week it is willing to pay GBP80
million, or 55p in a pound for a 36% stake and 15% of the plant's
GBP1.3 billion-debt.  The offer was made just days before the
expiry of a one-month extension to a standstill agreement with
Drax's lenders.

AES chief operating officer, Joseph Brandt, in a letter to
creditors dismissed the offer as "little more than an expression
of interest," according to the report.  He recalled International
Power's several expressions of interest in Drax's restructuring
over the past nine months, saying in the letter: "On each
occasion . . . International Power failed to follow through with
anything promising enough for the senior creditors to pursue."

Drax's banks are also understood to be silently skeptical of
International Power's offer.  According to the report, they are
more preferable to AES' offer of 47p in the pound for the debt.

AES, meanwhile, gave the Yorkshire power station until August 5
to accept its restructuring plan, or they would withdraw the
offer.


AMP LIMITED: Sells Australian Construction Finance Loans
--------------------------------------------------------
AMP has agreed to sell its remaining Australian property finance
loan portfolio comprising AU$232 million of construction and
property investment loans to Suncorp-Metway.  This sale
represents the last major portfolio sale in the banking and
finance asset divestment program announced on November 14, 2002.

The agreement follows the sales of:

(a) the Australian and New Zealand credit card portfolio to
    American Express, announced on December 23, 2002;

(b) AMP's U.K. banking portfolio to Newcastle Building Society
    (UK), announced on March 28, 2003;

(c) the NewZealand residential mortgage and retail deposit
    portfolios to HSBC and the majority of the property fiancne
    portfolio to GE Commercial Finance, both announced on April
    14, 2003;

(d) the New Zealand rural loan portfolio to Rabobank, announced
    on May 22, 2003.

The sale is expected to be completed by August 1, 2003, subject
to contractual obligations.  The final purchase price will be
dependent on a number of factors, including account balances at
the date of completion, and is expected to be in line with book
value.

AMP has been advised on this transaction by Caliburn.

CONTACT:  AMP LIMITED
          Level 24, 33 Alfred Street
          Sydney NSW 2000 Australia
          ABN 49 079 354 519


BRITISH AIRWAYS: Continuing Talks with Trade Unions
---------------------------------------------------
Talks between British Airways and the Trades Union adjourned for
the evening of July 29.

The talks resumed at midday (U.K. time) on Wednesday, July 30.

Mervyn Walker, British Airways Director of Heathrow, said:
"British Airways was invited [Tues]day to attend the Trades Union
Congress to join the three trade unions in a fresh round of
talks.

"It has been a day of constructive talks and progress has been
made.

"All sides have decided to adjourn the talks this evening and
resume them tomorrow [Wednesday] at midday."

                     *****

Workers at Heathrow staged unofficial industrial action two weeks
ago to oppose British Airway's introduction of swipe
cards, which monitors employees' working hours.  They claimed
British Airways will use the new system to send people home
during quiet periods, forcing them to make up the time during
busy periods, according to the report.  They also fear that the
airline will introduce split shifts.

A British Airways official denied the allegations, although he
admitted there are plans to employ more people at busier periods
than at quieter ones.


CARBO PLC: To Cut Additional Jobs Under Restructuring Plan
----------------------------------------------------------
The board of Carbo announces that following a further
restructuring and review of business operations in the U.K. and
Germany, the company has regrettably concluded that an additional
rationalization of the workforce is required.  75 employees are
to be released in the German operations with a further 16 in the
U.K.

The rationalization of the workforce will improve productivity,
reduce fixed costs and enhance the future profitability of the
Group.  The Board estimates that redundancy costs of
approximately GBP1 million will be paid.

                     *****

The company previously said that in the period since June 6,
losses within its abrasives production at Trafford Park have
continued.  It also said that as part of the further
restructuring and plans to return the U.K. operations to
profitability, Carborundum Abrasives G.B. Limited, the U.K.
manufacturing subsidiary of the company, was placed into
administration.

CONTACT:  CARBO PLC
          Lars Nyqvist (Chief Executive)         
          Phone: 0161 872 8291
          Stuart Dootson (Finance Director)      
          Phone: 0161 872 8291


COOKSON GROUP: Releases Results for First Half of 2003
------------------------------------------------------
Highlights:      

(a) Profits improve over first half of prior year

     (i) operating profit* from continuing operations up 67% to  
         GBP22.2 million  

    (ii) profit before tax* rises GBP17.4 million to GBP5.5  
         million;
  
(b) Net debt reduced by GBP64 million since the end of 2002 to
    GBP364 million;  

(c) Decision taken to exit from the Electronics division's loss-
    making Equipment sector;

(d) Benefits of cost saving initiatives continue to accrue;

*(before goodwill amortization and exceptional items, including
  Speedline)

Commenting on the results and current outlook, Stephen Howard,
Group Chief Executive, said:

"The benefits of the work that has been done to reduce Cookson's
cost structure, particularly in the Electronics division, are
evident in these results.  Profits increased in the first half
and all three divisions were profitable in the second quarter.  
Furthermore, net debt at the end of June was less than half that
of a year ago.

"Management continues to focus on improving the performance of
all of its businesses in the face of a challenging trading
environment.  Emphasis has been placed on addressing those parts
of the business that are currently unprofitable and,
consequently, we have decided to exit from the loss-making
Equipment sector of the Electronics division.  This process is
underway.  

"It is anticipated that underlying market conditions in the
second half in the electronics industry will remain generally
unchanged from the first half, with the impact of SARS receding.  
Steel production in the Ceramics division's major markets, North
America and Europe, is expected to remain at a similar level to
the second quarter.  Activity in the Precious Metals division is
normally higher in the second half of the year due to the
traditional fourth quarter jewelry-buying season.  Based on these
assumptions and on the benefits from our internal actions
continuing to accrue, operating profit in the second half of 2003
for the Group's continuing operations is expected to improve over
the first half."  

To see full report and financials:  
http://bankrupt.com/misc/COOKSON_GROUP.htm


EINSTEIN GROUP: Television Subsidiary Goes into Liquidation
-----------------------------------------------------------
Einstein Group plc announces that on Thursday July 24, 2003, its
subsidiary, Einstein TV Limited, went into liquidation under a
compulsory winding up order.  Einstein TV was unable to agree
terms with an ex member of staff who had issued a winding up
petition against Einstein TV for arrears of salary despite
Einstein having made a cash and shares offer to the individual.

The company's other subsidiaries continue to trade and the TV
channel continues to be transmitted in different territories
within Europe.

The cash position of the company remains tight, and the company
is still in negotiations with certain parties regarding further
funding.


HARTSTONE GROUP: Cost-Cutting Fails to Prevent Plunge into Red
--------------------------------------------------------------
Highlights of Preliminary Results for year ended March 31, 2003:

(a) US margins and sales under severe pressure;

(b) Operating loss of GBP6.6 million (2002:GBP2.2 million
    profit);

(c) Shareholders' funds down to GBP13.0 million (2002: GBP23.5
    million).

Commenting on the announcement, Hartstone's chairman, Shaun
Dowling said:

"Despite cutting overheads by US$4.1 million in the U.S., the
downturn in sales and reduced margins have led to very high
losses.  Future recovery depends on an upturn in department store
sales for good quality shoes and accessories.  In the meantime,
given current market conditions, the directors are evaluating
strategic options for the future of the group."
To see full report and financials:
http://bankrupt.com/misc/HARTSTONE_GROUP.htm

CONTACT:  THE HARTSTONE GROUP PLC    
          Phone: 01494 787700

          Shaun Dowling, Chairman
          John De Morgan, Company Secretary


SCHRODER EMERGING: Discloses Final Terms of Asset Transfer
----------------------------------------------------------
Ordinary Shares with 'A' rights - the rollover option

As at 12.00 noon on Friday July 25, 2003 the net asset value of
the Rollover Pool was GBP23,031,108 (equating to a net asset
value of 64.1054 pence per A Share) and the creation price of an
accumulation unit in Schroder Global Emerging Markets Fund unit
trust (Schroder GEM) was 39.72 pence.  In consideration for the
transfer of the assets in the Rollover Pool to Schroder GEM,
holders of A Shares will therefore receive 1.6139 Units for every
A Share held.  Units have been allotted to holders of A Shares on
that basis, and it is intended that contract notes in respect of
such allotments be posted to allottees during the course of this
week.  No initial charge will be made on the issue of these
Units.

Ordinary Shares with 'B' rights - the cash option

Following approval of the scheme of reconstruction by
shareholders at the Extraordinary General Meeting held on July
16, the company's managers have fully realized the stocks held
within the Liquidation Pool.  Following such realization, cash in
the Liquidation Pool available for initial distribution in
accordance with the terms and conditions of the scheme to the
holders of the Company's 58,314,856 'B' Shares amounts to
GBP37,278,936, equating to a value of 63.927 pence per B Share.  
It is intended that checks in respect of this initial cash
distribution to those B Shareholders who held their Ordinary
Shares in certificated form be dispatched during the course of
this week.  CREST accounts of B Shareholders who held their
Ordinary Shares in uncertificated form are also expected to be
credited during this week.

Warrants

In accordance with the terms and conditions of the scheme of
reconstruction, warrantholders will receive cash at the rate of
3.25 pence per warrant.  It is intended that checks in respect of
the payment to warrantholders be dispatched during the course of
this week.

Further distributions

Non-cash assets (such as debtors and VAT reclaims) held by the
Company at the commencement of the liquidation (which cannot be
transferred to Schroder GEM or form part of the initial cash
distribution to holders of B Shares) will be realized by the
company's liquidators and any cash remaining after the final
settlement of all liabilities of the Company will be distributed
pro rata to all shareholders on the Company's share register as
at Friday July 25, 2003 except that, if a shareholder is entitled
to a distribution of less than GBP3.00, the distribution will be
paid to Schroder GEM (although there will be no further issue of
Units).  The precise timing of any such distribution will depend
upon the rate of progress of the liquidation.

CONTACT:  SCHRODER INVESTMENT MANAGEMENT LIMITED          
          John Spedding
          Phone: 020 7658 6000

          DELOITTE & TOUCHE                               
          Jamie Smith/Nicholas Dargan
          phone: 020 7007 3012


SMG PLC: Settles Case Brought by Chris Evans on His Dismissal
-------------------------------------------------------------
SMG plc said it has reached full and final cash settlement in
relation to the case brought by Mr. Chris Evans, who was
previously dismissed by Virgin Radio.  Under the agreement, SMG
will receive GBP7 million, covering all costs and damages.

Mr. Evans previously insisted he is due some shares and payments
for damages when Virgin Radio terminated his contract.  But
Justice Lightman ruled late last month that Virgin Radio acted
properly in its move, and that Mr. Evans had to pay the company
for damages.

CONTACT:  SMG PLC          
          Callum Spreng, Corporate Affairs Director
          Phone: 0141 300 3640


ST. JAMES'S: Issues Interim Results for Six Months
--------------------------------------------------
St. James's Place Capital plc, the wealth management group,
announces its new business and financial results (which are
presented on an unsmoothed basis in line with the rest of the
industry) for the half-year ended 30 June 2003.

Key points include:

(a) While operating profit of GBP25.1 million (2002: GBP45.4
    million) was down on the prior year, the strong growth in
    funds under management resulted in profits from core business
    of GBP36.4 million, up 78%;

(b) New business down 17% compared with first half of 2002;

(c) New business for second quarter 19% higher than first
    quarter;

(d) Protection regular premium business up 12% compared with
    first half of 2002;

(e) Funds under management at GBP6.7 billion up 14% since the
    start of the year (2% over twelve months);

(f) Size of partnership up 2% since the start of the year and
    applications up 63% on the corresponding period last year;

(g) Fees from wealth management up 70% to GBP8.0 million compared
    with GBP4.7 million for half year 2002;

(h) Net asset value per share 115.3p;

(i) Dividend maintained at 1.25p per share;

Sir Mark Weinberg, Chairman commented:

"We are pleased with the 12% increase in regular premium
Protection sales over the past six months and the 70% growth in
fees in our Wealth Management Services.  Our strategy of
marketing a wide range of best of breed products and services
through our team of high quality advisers, the St. James's Place
Partnership, has benefited us in these challenging marketing
conditions.

"We believe as strongly as ever in our advice-based business
model and at a time when distribution is key, we have seen a 63%
increase in applications from experienced advisers to become
members of the Partnership."

To see full report and financials:  
http://bankrupt.com/misc/ST._JAMES::S_PLACE.htm


YEOMAN PLC: Administrators Finalize Sale of Laser-Scan Business
---------------------------------------------------------------
Yeoman Group plc has announced that the administrators of Laser-
Scan Limited have completed the sale of the goodwill and certain
assets of the company to a group of investors including Laser-
Scan's managing director, Dr. Michael Sanderson, and certain
employees of Laser-Scan.  The terms of the sale include GBP45,000
for chattel assets and a commission of 5% on sales of the on-
going business for the first 12 months of operation subject to a
claw-back of certain costs that may be incurred with regard to
past employees.  The disposal is not expected to generate any
significant proceeds for YEOMAN, nor to expose Yeoman to any
further financial liability from its former subsidiary.

As announced with YEOMAN's interim results in June 2003, this is
an important step in the restructuring of the Group to enable it
to focus on its core mobile navigation business.  Other steps for
the streamlining of the Group, which include the disposal of the
marine navigation division, Brookes and Gatehouse, are proceeding
as planned.

CONTACT:  YEOMAN GROUP PLC
          Charles Marshall, Finance Director                      
          Phone: 01590 679777

          GAVIN ANDERSON & COMPANY
          Neil Bennett or Keith Brookbank                         
          Phone: 0207 554 1400


                            *********


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.

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