/raid1/www/Hosts/bankrupt/TCREUR_Public/031113.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, November 13, 2003, Vol. 4, No. 225


                            Headlines

G E R M A N Y

ALLIANZ AG: In Line to Post Second Consecutive Quarterly Profit
IG FARBEN: Nazi Industrial Symbol Files for Insolvency


H U N G A R Y

ANTENNA HUNGARIA: Q3 Group Revenues Fall HUF787 Mln Year-on-year


I T A L Y

PARMALAT FINANZIARIA: On CreditWatch Due to Liquidity Concerns


N E T H E R L A N D S

EVC INTERNATIONAL: Third Quarter Turnover Slips 9%
EVC INTERNATIONAL: S&P Assigns 'B+' Rating, Stable Outlook
IFCO SYSTEMS: Apax Affiliate Takes over Majority Stake
GETRONICS N.V.: Moody's Affirms 'B2/Caa1' Ratings
KONINKLIJKE AHOLD: Hires McKinsey to Help Restore Global Biz

KONINKLIJKE AHOLD: Moody's Reviews Ratings; Outcome Uncertain
KONINKLIJKE AHOLD: CBD Balks at Price of Brazilian Assets
ROYAL PHILIPS: Sells ADS in Taiwanese Firm for EUR935 Million


N O R W A Y

PETROLEUM GEO-SERVICES: ADS Now Trades Regularly on Pink Sheets


S W E D E N

INTRUM JUSTITIA: Defrays Accounting Review Cost to Third Quarter
LM ERICSSON: Fixes Spread for Bond Exchange Offer at 230 bps


S W I T Z E R L A N D

SAS GROUP: Retains Gloomy Forecast as Key Indicators Remain Down
SAS GROUP: October Passenger Traffic Drops 5.3% this Year
SAS GROUP: Sells Non-core Properties in Frosundavik


U N I T E D   K I N G D O M

ABBEY NATIONAL: Jocks up Interest Rates after Bank of England
BRITANNIC GROUP: Closes Britannic Retirement to New Business
CABLE & WIRELESS: Drops Patent Infringement Suits Against Akamai
CANARY WHARF: Negotiations Totter Due to Price Disagreements
EUROSTAR GROUP: Owners to Streamline Management Structure

FOCUS WICKES: Fitch Assigns Finance's Mezzanine Notes 'B' Rating
NORTHERN FOODS: Sets Recovery Platform Ahead of CEO's Arrival
NORTHERN FOODS: Chair Hints Further Non-core Asset Disposals
NORTHERN FOODS: Pre-tax Profits Fall 16% to GBP32.5 Million
PPL THERAPEUTICS: Consultation on Disposal Plan Still Ongoing
ROYAL MAIL: Disputes Obligation to Pay Losses Caused by Strike
THOMAS COOK: Expects Full-year Loss to Increase Significantly


                            *********


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


ALLIANZ AG: In Line to Post Second Consecutive Quarterly Profit
---------------------------------------------------------------
Analysts are expecting Allianz AG to post a third-quarter pretax profit of
between EUR463 million and EUR1.33 billion, or an average of EUR820 million,
according to AFX.

The positive result, which is believed to have been driven by a strong
performance in property and casualty insurance operations, is the group's
second quarterly return to black.  Allianz broke even in the second quarter
after a EUR3.2 billion loss in the year-earlier period.  Net income is
expected to be between EUR196-805 million after EUR622 million in the second
quarter and a loss of EUR2.5 billion a year ago.

Allianz said last month it expects to achieve "positive results" for the
first nine months of the year.  Analysts now expect nine-months pretax
profit of between EUR311 million and EUR1.18 billion, and net income of
between EUR196-907 million, or an average of EUR667 million and EUR557
million, respectively.

The company, however, could not say the same about its banking operations.
Allianz warns the bottom line of this division, comprising primarily of
Dresdner Bank, will still be "slightly negative" in the third quarter.  A
turnaround at Dresdner "remains a protracted challenge," Lehman Brothers
said in a recent note.


IG FARBEN: Nazi Industrial Symbol Files for Insolvency
------------------------------------------------------
IG Farben, the company that made the poisonous gas for Hitler's
concentration camps during World War II, filed for insolvency after a real
estate deal with WCM fell through.  The Frankfurt-based company signed
agreement to sell its last significant asset -- 500 apartments valued at
EUR38 million, or US$43 million -- to WCM, but the German investment company
backed out.

WCM said it had signed only a preliminary letter of intent and was under no
legal obligation to pursue the deal.  The collapse of the deal cut its last
hope for survival as the dismal state of the German real estate makes the
idea of another transaction farfetched.  Farben, which holds a stake in
Degesch, developer of Zyklon B gas pellets used at Auschwitz and other
camps, was dismantled by the Allies in 1952 and afterwards lived on as a
trust.

Farben's administrators now said the firm would finally be dissolved, with
the proceeds going to repay bank loans, not Nazi-era victims or their
families.


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


ANTENNA HUNGARIA: Q3 Group Revenues Fall HUF787 Mln Year-on-year
----------------------------------------------------------------
The operations of Antenna Hungaria Rt in the first three quarters of 2003
were profitable at both parent company and consolidated levels with the
parent company's result from business operations exceeding HUF1.6 billion
and its retained profit totaling HUF641 million.  The Antenna Hungaria
group's (consolidated) retained profit totaled HUF289 million.  Again the
consolidated result was highly affected by the consolidation of the Vodafone
Hungary -- this time favorably -- similarly to periods following previous
capital increases without the involvement of the Antenna Hungaria.  The
Antenna Hungaria group's liabilities changed for the better, decreasing by
HUF1.3 billion in the first three quarters of 2003.

As indicated in the preceding quick report the consolidation of the Vodafone
Hungary -- similarly to periods following previous capital increases -- will
influence figures in the third quarter 2003 quick report of the Antenna
Hungaria Rt in a favorable way: the parent company's shareholding decreased
to 12.1% after the capital increase executed in the spring -- without the
involvement of the Antenna Hungaria Rt -- is registered by the Court of
Registration.  As a result of the capital increase with share premium and
the reduction in shareholding equity projected to the parent company's
business stake is HUF955 million than at December 31, 2002, which improved
the consolidated result.  Thus as opposed to losses in the previous period
the third quarter quick report contains profits at consolidated levels as
well.

In the first three quarters of 2003 the turnover of the Antenna Hungaria
group totaled HUF19.1 billion, which is up 4.2% from September 30, 2002.  In
2003 the company group's revenues came from broadcasting at 57%,
telecommunications at 21%, AntennaMikro service at 8%, service and
maintenance at 4%, and other activities at 10% (infrastructure rental,
etc.).

The company group's revenue from operations totals nearly HUF800 million,
which is HUF787 million lower than in the third quarter of 2002.  This
decrease was due to the parent company's one-time revenue from the sale of
real estate in 2002.  At parent company level the Antenna Hungaria's result
of business operations totaled HUF1.63 billion.

Net financial profit improved by more than HUF1 billion compared to the same
period in 2003, mainly as a result of the capital increase at the Vodafone
Hungary with share premium and the decrease in shareholding, as well as a
nearly 20% reduction in interest and interest-type expenses.

In comparison to the third quarter data in 2002 the company group's
liabilities decreased by HUF1.3 billion, and its credit portfolio changed
for the better thanks to the replacement of short-term credit with more
advantageous long-term credit.


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


PARMALAT FINANZIARIA: On CreditWatch Due to Liquidity Concerns
--------------------------------------------------------------
Standard & Poor's Ratings Services said it had placed all its ratings,
including its 'BBB-/A-3' corporate credit ratings, on Italy-based leading
global fluid-milk processor Parmalat Finanziaria SpA, and its main operating
subsidiary Parmalat S.p.A, on CreditWatch with negative implications
following concerns about the quality of the group's accounts and how
Parmalat invests its liquidity.

"Parmalat's auditors Deloitte & Touche S.p.A, which had approved the group's
2002 accounts without reservations, have highlighted a number of limitations
in its review of Parmalat's interim financial information for the first six
months of 2003," said Standard & Poor's credit analyst Hugues de la Presle.

These limitations pertain in particular to Parmalat's investment in and
related transactions with the Fondo Epicurum investment fund.  Fondo
Epicurum is an open-ended private equity fund, which was launched in late
2002 and on which no current financial information is available.

"Parmalat's substantial investment of EUR496.5 million in the Fondo Epicurum
fund, which was not previously made public, also raises serious concerns
about the group's investment policy and its disclosure of financial
information," added Mr. de la Presle.  "Standard & Poor's will exclude this
investment from the group's liquidity when computing Parmalat's debt
measures, which will result in the group having a weaker financial profile
than was previously assumed."

In its assessment of the group, Standard & Poor's will continue to only
consider as liquidity those investments that are low risk, liquid, and short
term in nature, as well as bank balances.  At June 30, 2003, the group had
reported gross debt of EUR5.3 billion.

To resolve the CreditWatch status, Standard & Poor's will seek to obtain
comfort on the accounting issues, and reassurance as to how the group
invests its liquidity.


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


EVC INTERNATIONAL: Third Quarter Turnover Slips 9%
--------------------------------------------------
In connection with the refinancing of much of its existing debt, EVC
International N.V., Europe's largest PVC manufacturer, announced its
unaudited results for the third quarter 2003 and nine months ended September
30, 2003.

Key Features               Third Quarter           Nine Months
                            2003     2002         2003      2002
(EURmillions)

Group turnover              240.8   265.4         791.1   802.0
Operating profit/(loss)      (1.9)   (1.8)         (0.1)    2.5
Net result                   (9.9)  (12.7)        (17.9)  (17.5)
Cashflow before financing                          (2.0)  (18.8)

Market Conditions

The difficult trading conditions experienced in the European PVC market
during the first six months of 2003 continued into the third quarter.
Market sales prices, which had seen a sharp fall through the months of May
and June, continued to fall during July but then started to recover in the
month of August.  Sales prices continued the recovery in September and ended
the third quarter some 16.5% above the levels seen in June.

Prices for the key raw materials, ethylene and chlorine, were lower in the
third quarter compared to Quarter Two and this allowed unitary margins to
start to recover.  However, the recovery in unitary margins occurred in a
seasonally weak volume demand quarter.

Compared to the equivalent three months in 2002, market sales prices were
approximately 19% lower.  Unitary margins were significantly lower than the
third Quarter in 2002 as the reduction in raw material costs were unable to
offset the full impact of the lower sales prices.

For the nine-month period, the average sales prices in 2003 were similar to
those in the equivalent period in 2002, higher relative prices in the first
quarter of 2003 counter balancing the lower prices of the third quarter.
Average unitary margins were lower in 2003 compared to the first nine months
of 2002 due to the higher average raw material prices experienced this year.

Financial Review

Result of operations

(a) Presentation of results

EVC has changed its presentation of exceptional items and no longer shows a
separate line item on the face of the profit and loss account.  Instead, any
exceptional items will be included in the relevant profit and loss account
line item to which they relate with disclosure of such exceptional items in
a footnote to the financial information.

(b) Quarter Three

Group Turnover for the third quarter 2003 was EUR240.8 million, down 9% on
the equivalent quarter last year.  The fall was driven largely by lower
sales prices (market prices were some 18% lower), which were offset, to a
degree by volume improvements despite the production difficulties referred
to below.

Cost of turnover, at EUR233.8 million was 8% lower than Quarter Three in
2002 due to further benefits from the fixed cost reduction program and lower
raw material prices.  These were offset by approximately EUR1.7 million of
increased costs due to the need to continue purchasing alternative EDC
supplies on the spot market.

Operating expenses were EUR8.9 million, down 35% year on year. The reduction
was partly due to some EUR1.5 million of exceptional gains on customer and
supplier settlements in the quarter.

Operating loss before taxation for the Quarter was EUR6.4 million,
equivalent to the previous year.

Net financial expenses, at EUR4.5 million were in line with 2002, whilst
Taxation, at EUR3.4 million was significantly lower than in the comparative
period for 2002 due to the lower overall profitability levels in the current
year.

The Group Net result was a loss of EUR9.9 million in the quarter, a 22%
improvement on the previous year.

(c) Nine months results

Group turnover for the first nine months decreased by EUR10.9 million, or
1.4%, to EUR791.1 million due to a combination of slightly lower PVC resin
prices and lower turnover in the Compounds and Film division due to soft
demand in certain market sectors for compounds and packaging films.  As
reported at the half year, EVC's Polymer business experienced a significant
shortfall in supply of chlorine under one of its long-term supply contracts.
The events that led to this problem were not resolved until late September
and normal contractual supplies have gradually returned to the required
levels.  This supply issue led to disruption in production levels that
restricted, to a degree, sales volumes.

Overall, base raw material costs were higher in the first nine months of
2003 compared to 2002.  The European quarterly contract price for ethylene
was some 5% higher in 2003 and this, combined with the need to purchase
significant quantities of 'EDC' (a pre-mix of chlorine and ethylene) on the
spot market to cover for the shortfall in contractual supply led to
significantly higher raw material costs.  The impact of the supply
disruption also resulted in increased freight and processing costs.  EVC has
estimated that the exceptional costs within Cost of turnover are
approximately EUR10.4 million, EUR1.7 million higher than that in the first
half-year results.
Operating expenses at EUR26.1 million were EUR17.8 million lower than the
equivalent period of 2002, this being primarily due to a EUR10.4 million
exceptional credit received in the first half year.  The exceptional credit
reflects the conclusion of the product liability claim process for which, in
the 2002 full year results, EVC recorded a negative exceptional item in
order to recognize the costs incurred and conditional settlements entered
into as at 31 December 2002.  The year on year reduction in Operating
expenses was also driven by EUR6.3 million of gains on other customer and
supplier settlements and the effect of the continued focus on cost
reductions.  These benefits were offset to a degree by increased costs due
to the strengthening of the EURO, particularly against the U.S. Dollar and
the British pound.  For the nine months period, EVC's financial results
reflect a negative impact on currency movements of EUR4.7 million (2002:
EUR2.5 million negative).

The Group delivered an operating loss of EUR0.1 million compared to an
operating profit of EUR2.5 million last year.  This result is after the
one-off impact of the raw material supply difficulties as noted above, the
full impact of which is estimated at approximately EUR23 million (including
the opportunity cost of lost sales volumes).  The company is seeking redress
for this loss through its insurers.

Taxation was EUR4.0 million for the nine months 2003 compared to a charge of
EUR7.3 million in 2002.  As for the third quarter results, the reduction is
driven by the lower overall level of profitability in 2003.

Net financial expense increased by EUR1.0 million to EUR13.4 million as a
result of a lower level of offsetting interest income; this being due to a
lower average balance of cash on deposit through the nine months.

The net result for the first nine months was a loss of EUR17.9 million
compared to a loss of EUR17.5 million in 2002.

(d) Segmental Information

In a seasonally lower quarter, the Operating profit/(loss) in the third
quarter for Polymers and Compound and Film were -EUR10.5 million and EUR8.6
million respectively.

For the first nine-month period, the Polymers segment recorded an Operating
loss of EUR34.5 million which was EUR11.6 million worse than the equivalent
period of 2002.  This deterioration is due to the lower average unitary
margins available in the market place and the negative impact from the
chlorine supply problems. Compounds and Film delivered an operating profit
of EUR34.4 million (2002: EUR25.4 million), and is stated after the
inclusion of the EUR10.4 million exceptional gain.  The additional EUR6.3
benefit from gains on various other customer and supplier settlements was
largely offset by the negative impact of currency movements and the
difficult market conditions experienced within compounds and packaging film.

(e) Cash flow

Group net cashflow before financing activities was an outflow of EUR2.0
million for the nine months, a significant improvement on the EUR18.8
million outflow in the previous year.  Capital expenditure, at EUR28.6
million, is up on the previous year following continued spend on automation
equipment (in order to facilitate further fixed cost savings) and a new
'stretch film' production facility in our Film business.  An inflow of
EUR0.5 million was achieved on Working capital being the result of lower
overall stock levels offsetting the effect of lower creditor levels and
continued improvements in working capital management.

Financial position

As at the end of September 2003, the Group had gross borrowings of EUR220.4
million, down EUR13.5 million from December 2002; EUR5.7 million of the
reduction is due to debt amortization payments, the balance being due to
movements in exchange rates.  After deducting cash balances of EUR27.5
million, the net debt position at the end of September was 192.9 million,
down EUR4.9 million compared to the EUR197.8 million as at the end of 2002.
The Group is in the process of refinancing the present Bank Syndicate debt
and Long Term Notes that mature in February 2004.  As a result of the
refinancing, EVC believes that cash flows from operations, together with
borrowings that will be made under the new facilities, will be sufficient
for its operating needs and debt service requirements as they become due for
the foreseeable future.

CONTACT:  EVC INTERNATIONAL
          John Hudson, Chief Financial Officer
          Phone: +44 2380 287043
          Fax: +44 2380 287046


EVC INTERNATIONAL: S&P Assigns 'B+' Rating, Stable Outlook
----------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its 'B+'
long-term corporate credit rating to Netherlands-based PVC producer EVC
International N.V., reflecting the group's below average business and
financial profiles.  The outlook is stable.

At the same time, Standard & Poor's assigned its 'B+' long-term corporate
credit rating to EVC International's fully owned finance subsidiary, Ineos
Vinyls Finance PLC.  The outlook is stable.  In addition, the proposed
eight-year EUR160 million senior unsecured notes to be issued by Ineos
Vinyls Finance
PLC and guaranteed by EVC were rated 'B-'.  The rating on the notes is two
notches below the corporate credit rating, in line with Standard & Poor's
structural subordination criteria.

"The ratings on EVC International are primarily constrained by the group's
exposure to the highly cyclical PVC market, its historically poor
profitability and free cash flow generation, and its currently weak
financial profile," said Standard & Poor's credit analyst Christine Hoarau.
"The ratings are supported by the group's leading market position as the
largest European producer of PVC and by management's good track record in
improving the operating efficiency of chemicals businesses."

Standard & Poor's expects that EVC will improve EBITDA generation, thanks to
a continued focus on fixed-cost reductions.  Capital expenditures for growth
and acquisitions are expected to remain limited, especially during cycle
troughs. At the current rating level, Standard & Poor's expects the group to
maintain a funds from operations/net debt (not adjusted for
pensions) ratio of about 20% through the cycle.


IFCO SYSTEMS: Apax Affiliate Takes over Majority Stake
------------------------------------------------------
IFCO Systems N.V. (Frankfurt:IFE1) was informed that Island International
Investment Limited Partnership, an affiliate of funds advised by Apax
Partners, is the new majority shareholder in IFCO Systems N.V.

Major shareholders representing 87.1% of the share capital of IFCO Systems
N.V. have sold their shares to Apax Funds for EUR2.75 per share.  The
transaction has been approved by the merger control clearance authorities.

Apax Funds are currently investigating the possibility of a voluntary public
tender offer for the remaining shares of IFCO Systems.  If Apax Funds were
to proceed with such an offer at this time, the offer price per share would
be the same price paid to the majority shareholders (EUR2.75 per share).
Apax Funds intends to maintain the listing of the shares on the Prime
Standard market of Deutsche Borse.

Karl Pohler, CEO of IFCO Systems, welcomes Apax Funds' acquisition: "With a
strong partner behind us, we can now concentrate on the further expansion of
our business activities.  The new, clear ownership structure guarantees the
company and our customers long-term planning security.  The acquisition by
Apax Funds is a sign of trust in the successful business model, the
management and the employees of IFCO Systems."

IFCO Systems is a worldwide logistics service provider with approximately
160 locations in Europe and North America.  IFCO Systems operates a pool of
more than 65 million Reusable Plastic Containers globally, which are used as
a logistic system predominantly for fresh produce by leading grocery
retailers.  In the United States, IFCO Systems also provides a national
network of pallet management services.  With more than 45 million wooden
pallets recycled annually, IFCO Systems is the market leader in this
industry.  In 2002 IFCO Systems generated revenues of US$380.7 million.

                              *****

IFCO Systems' long-term corporate credit rating was upgraded to 'B+' from
'D' following the Netherlands-based company's restructuring.  At June 30,
2003, IFCO had total debt of US$114 million.

CONTACT:  IFCO SYSTEMS
          Dariush Yazdani
          Phone: +49 89 74491 223
          Mobile: + 49 172 8502560
          Fax: +49 89 744767223
          E-mail: dariush.yazdani@ifco.de


GETRONICS N.V.: Moody's Affirms 'B2/Caa1' Ratings
-------------------------------------------------
Moody's Investors Service affirmed early this week the 'B2' senior implied
and 'Caa1' senior subordinated bond debts of Getronics N.V.  At the same
time, it assigned a 'B3' rating to the company's 5.5% senior unsubordinated
convertible bonds due 2008.  Outlook for the ratings is negative.

According to the rating agency, the 'B3' rating on the EUR100 million
unsubordinated convertible bonds "reflects their effective subordination to
both existing and potential future levels of secured debt at both the
operating and [holding company] levels and the limited amount of tangible
assets that would likely be afforded to these creditors in a downcase (sic)
scenario."

"The 'Caa1' rating of the company's subordinated bonds reflects their
contractual subordination to both the unsubordinated notes and other senior
obligations," says Moody's.

Getronics will utilize proceeds from the convertible bonds to re-finance a
portion of its outstanding EUR250 million, 13% senior subordinated notes due
2008.

As for the negative outlook, Moody's says it "reflect(s) the lack of
visibility in the [Information and communications technology] market and
execution risks associated with the company's plan to further reduce costs,
restructure operations, and align capacity with demand."

Moody's said it would only change the outlook if it sees improvements in
both the company's cash flow generation and underlying profitability.  At
the moment, it said, Getronics is operating in a very challenging
environment that has resulted in material reductions in profitability.

Overall, Moody's believes the company will weather the challenges facing its
market.  It lauded the company's convertible issuance, noting that this
would allow "Getronics to lower its annual interest burden and, more
significantly, reduce amortization requirements on the company's
subordinated bonds over the next several years."

Getronics N.V. is headquartered in Amsterdam, the Netherlands.


KONINKLIJKE AHOLD: Hires McKinsey to Help Restore Global Biz
------------------------------------------------------------
Koninklijke Ahold announced the development of a three-year plan to rebuild
the value of its global operations.  A key component of the plan is the
establishment of arenas.  The decision has been made to establish an arena
consisting of two of their United States retail food chains, Stop & Shop,
based in Quincy, Massachusetts and Giant Food LLC, based in Landover,
Maryland.  McKinsey Consulting has been engaged to determine the most
effective way to restructure and manage this process.

Planning relating to this arena is in the very early stages and formal plans
are not expected to be announced until some time in 2004.  As the process
unfolds, administrative and managerial functions will be combined where
practical, with a strong commitment to maintaining and nurturing the
strength of each brand, the knowledge of the local market, and the strong
involvement in the community that each company is known for.

The Stop & Shop Supermarket Company, based in Quincy,
Massachusetts, employs more than 57,000 associates and operates
341 stores in Connecticut, Massachusetts, New Jersey, New York and Rhode
Island.

Giant Food LLC, headquartered in Landover, Maryland, operates l95
supermarkets in Virginia, Maryland, Delaware, New Jersey, and the District
of Columbia, and employs more than 24,000 associates.

Giant also operates stores in New Jersey and Delaware under the
Super G name.

                              *****

As previously reported, Fitch Ratings is maintaining its Rating Watch
Negative status on both the 'BB-' Senior Unsecured debt and 'B' Short-term
ratings of Koninklijke Ahold N.V., the Netherlands-based international food
retailer.

The rating reflects the view that the company remains a viable operating
entity. However, many of the reasons for Fitch's Rating Watch Negative
remain, particularly the amount of recent interim secured funding within the
group, together with the control and structural subordination mechanisms
this may afford, the reliance on continued support from core banks for
available credit facilities, and near-term (including 2005's bulk) debt
maturities.  It is questionable if the U.S. Foodservice profit margin can
increase from FY02's 1.7% level.  The company has to maximize cash, either
from operational cashflow, sale of activities, or a rights issue.  The
company does not expect to report on these issues, or H103's results, until
mid-October.


KONINKLIJKE AHOLD: Moody's Reviews Ratings; Outcome Uncertain
-------------------------------------------------------------
Moody's Investors Service has launched a review of Royal Ahold's ratings
following the announcement of its financial strategy recently.

The agency currently rates the Dutch retailer's senior implied debts, 'Ba3';
subordinated debt, B2; and issuer, B1.  These ratings remain unchanged, but
the direction of the review status is uncertain.

Moody's explains: "The agency recognizes the positive steps that have been
announced to clarify the strategic direction of Ahold, the roadmap that has
been laid out for a strengthening of the financial profile of the company
and the significant impact that successful execution of the company's rights
issue would have on the company's overall financial structure and liquidity
profile, which warrants the change of direction of the review for a
potential positive outcome.

"Though Moody's judges that it is more likely than not that the rights issue
will be completed as currently planned, there will remain some
conditionality to the execution of this transaction, which accounts for
leaving the direction open to more negative developments of the rating at
this time."

As announced by Ahold, it plans to shore up liquidity via:

     (i) A fully underwritten offer for a Rights Issue to raise
         a minimum of EUR2.5 billion, the proceeds of which will
         be mainly used to reduce indebtedness; and

    (ii) A fully underwritten offer for a new two tranche
         US$1,450 million and EUR300 million medium term secured
         credit facility. Availability of the new credit
         facility is however contingent upon the successful
         completion of the rights issue.

Moody's says the review will focus on the capacity of the company to:

(a) Execute the re engineering of its food retail operations;

(b) Turnaround its US Foodservice division; and

(c) Complete its disposals strategy.

"The review will also look at the status of the ongoing SEC and DOJ
investigation and outstanding class action lawsuits against the company.
Upon completion of the rights issue the agency believes that there could be
the potential for an up-lift in Ahold's ratings, which would probably be
limited to one notch," it added.

Officially named Koninklijke Ahold N.V., the company is a leading
international food provider, with operations in the Netherlands, the United
States, and a presence in the developing markets of Southern and Central
Europe, Latin America and Asia. The company, headquartered in Zaandam, the
Netherlands,  reported 2002 revenues in excess of EUR62.6 billion.


KONINKLIJKE AHOLD: CBD Balks at Price of Brazilian Assets
---------------------------------------------------------
Brazilian retailer CBD ruled out participation in the auction of Royal
Ahold's Brazilian assets, despite its interest to acquire a significant
share in the area, according to Reuters.

Ahold's assets on the block are Bompreco Supermercados do Nordeste, Brazil's
third biggest-selling retailer in 2002; G.Barbosa Comercial supermarkets;
and credit card business Hipercard, all of which operate in Brazil's
northeast.

CBD is among prospective buyers that submitted bids for the assets in
September.  Other interested parties include giant U.S. retailer Wal-Mart
Stores Inc., and French group Carrefour.

Commenting on its recent plan, Leonardo de Paiva Rocha, CBD's finance
director said: "We never work that way with acquisitions."  He did not
elaborate on the matter but said CBD would only "pay an adequate value,"
according to the report.

The bidding for Ahold's assets is taking longer than expected.  Sources
close to the transaction said the process stalls because initial offers
received have been too low.  Complicating the deal is an injunction barring
the sale of Ahold's assets in one block on antitrust grounds.

Clarissa Saldanha, an analyst at Banco Brascan, said a fair price would be
between 30% and 40% of the annual net revenues of the Brazilian assets.
Basing on 2002 figures Bompreco is worth up to BRL1.1 billion (US$391
million) and G. Barbosa is BRL281 million.


ROYAL PHILIPS: Sells ADS in Taiwanese Firm for EUR935 Million
-------------------------------------------------------------
Royal Philips Electronics sold 100 million American depositary shares in
Taiwan Semiconductor Manufacturing Company Ltd., which are equivalent to 500
million common shares.

The sale will provide Philips with gross proceeds of approximately EUR935
million.  Upon closing of the transaction, which is scheduled for Friday,
November 14, 2003, Philips will own approximately 19.1% of Taiwan
Semiconductor Manufacturing Company's outstanding share capital.

Philips will book a non-taxable gain of approximately EUR700 million in its
earnings for the fourth quarter 2003 as a result of this transaction.

The offering of TSMC shares by Philips was announced on October 8, 2003 and
priced on November 10, 2003 at USD10.77 per ADS.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands is one of the world's biggest
electronics companies and Europe's largest, with sales of EUR31.8 billion in
2002.  It is a global leader in color television sets, lighting, electric
shavers, medical diagnostic imaging and patient monitoring, and one-chip TV
products.  Its 166,500 employees in more than 60 countries are active in the
areas of lighting, consumer electronics, domestic appliances,
semiconductors, and medical systems.  Philips is quoted on the NYSE (symbol:
PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from
Philips is located at http://www.philips.com/newscenter.


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


PETROLEUM GEO-SERVICES: ADS Now Trades Regularly on Pink Sheets
---------------------------------------------------------------
Petroleum Geo-Services ASA (OSE: PGS; OTC: PGEOY) has been informed that its
new American Depositary Shares, representing one (1) new PGS ordinary share,
has started trading on a "regular" basis on the Over-the-Counter Pink Sheets
on Tuesday, November 11, 2003, under the symbol "PGEOY", CUSIP number
716599105.  The Company's new ADSs have been trading on the OTC Pink Sheets
on a "when issued" basis under the ticker symbol "PGEYV", since November 6,
2003.

Pink Sheets is the leading provider of pricing and financial information for
the OTC securities markets and is a source of competitive market maker
quotations, historical prices and corporate information about OTC issues and
issuers.  For more information on the Pink Sheets, visit
http://www.pinksheets.com

PGS' Ordinary Shares are trading on the Oslo Stock Exchange under the ticker
symbol "PGS".

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.  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
           Sam R. Morrow
           Svein T. Knudsen
           Phone:  +47-67-52-6400
           Suzanne M. McLeod
           Phone: +1 281-589-7935


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


INTRUM JUSTITIA: Defrays Accounting Review Cost to Third Quarter
----------------------------------------------------------------
Intrum Justitia, Europe's leading Credit Management Services Group, has
substantially completed the review of its English subsidiary, following the
announcement on July 28, 2003, that accounting inaccuracies had been
discovered and that a full investigation was being launched with immediate
effect.

These are the latest developments on the matter:

(a) Initial adjustment for accounting inaccuracies remains at
    SEK80 million, charged to Q2, 2003

(b) Additional provision of SEK104 million charged to Q3, 2003,
    to align operation to Group policy as regards to unallocated
    payment

(c) Costs for review, new processes and routines amounts to
    SEK48 million, of which SEK41 million has been charged to Q3

(d) Evidence of deliberate misstatement of results and balances
    -- further investigation as to legal remedies

(e) New processes for finance reporting and control functions
    implemented during 2003

                              *****

In preparing its half-year accounts, Intrum Justitia discovered accounting
inaccuracies in England.  A new management team for the English operations,
consisting of Mr. John Easden as Country Manager and Brian Hanks as
Financial Manager, was put in place following the discovery.

On its interim report Intrum Justitia AB said its consolidated revenues rose
by 5% to SEK2,121.9 million (2,024.1) in the first nine months of 2003, with
SEK702.2 million (692.3) generated in the third quarter.  Net earnings
amounted to -SEK28.6 million (81.2) in the first nine months.  Net earnings
for the third quarter were -SEK25.5 million (41.4).

To see financial results: http://bankrupt.com/misc/Intrum_Results.pdf


LM ERICSSON: Fixes Spread for Bond Exchange Offer at 230 bps
------------------------------------------------------------
Telefonaktiebolaget LM Ericsson on Monday set the spreads for its recently
announced Bond Exchange Offer.

Under the terms of the Exchange Offer, as defined in the Exchange Offer
Memorandum dated November 4, 2003, holders of the 6.375% Euro Medium Term
Notes maturing May 31, 2006 will be offered the opportunity to exchange up
to EUR0.5 billion of existing Notes for new Ericsson Exchange Securities.

Investors will be able to exchange their holdings in the Notes at a spread
of 230 bps over the DBR 6.25% maturing April 26, 2006.  The new Ericsson
Exchange Securities will be priced to yield 285 bps over the DBR 5.25%
maturing January 4, 2011.

The Exchange Price of the existing Notes and the coupon and price of the new
Ericsson Exchange Securities will be fixed using the respective government
benchmarks at 12:00 noon (London time) on November 21, 2003.  In the
meantime, holders of the existing Notes are asked to submit acceptances to
the Exchange Agent no later than 5:00 p.m. (London time) on November 25,
2003.

NOTE: This press release is not for publication or distribution in whole or
in part, directly or indirectly, in or into the United States.  This notice
is intended to be communicated only to creditors of Ericsson and relates
only to the Ericsson Securities and the Ericsson Exchange Securities.

CONTACT:  LM ERICSSON
          Investor Relations
          Lotta Lundin
          Phone: +46 8 719 6553, +46 730 371 100
          E-mail: lotta.lundin@ericsson.com

          Dealer Manager: J.P. Morgan Securities Ltd.
          Paul Hawker - Liability Management Desk
          Phone: +4420 7777 4185
          E-mail: paul.hawker@jpmorgan.com

          Jonathan Brown - Syndicate Desk
          Phone: +4420 7777 1986
          E-mail: jonathan.j.brown@jpmorgan.com

          Exchange Agent: JPMorgan Chase Bank
          Philip Runciman
          Phone: +4420 7777 2742
          E-mail: phillip.runciman@chase.com


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


SAS GROUP: Retains Gloomy Forecast as Key Indicators Remain Down
----------------------------------------------------------------
Nine-month summary

(a) Operating revenue for the first nine months of 2003 amounted to
SEK43,930 million (48,235), a decrease of 8.9%.  For comparable units, and
adjusted for currency effects, operating revenue for the period decreased by
7.7% or SEK3,698 million and by 10.6% in the third quarter.

(b) Income before depreciation and leasing costs for aircraft (EBITDAR) was
SEK2,947 million (5,962) for the full period.  EBITDAR in the third quarter
amounted to SEK1,737 million (2,130).

(c) Income before capital gains and restructuring costs during the period
amounted to -SEK1,895 million (-83).  This negative result is mainly
attributable to the first quarter. Income for the third quarter was SEK101
million (50).

(d) Income before tax amounted to -SEK1,225 million (233) and SEK564 million
(640) for the third quarter.

(e) Income after tax amounted to -SEK834 million (152) and SEK699 million
(506) for the third quarter.

(f) CFROI for the 12-month period October 2002-September 2003 was 7% (11%).

(g) Earnings per share for the period January-September amounted to -SEK5.07
(0.93) for the SAS Group and equity per share was SEK 83.88 (93.70).

(h) The unit cost for Scandinavian Airlines decreased by 14% in the third
quarter.

(i) The SAS Group's restructuring program, Turnaround 2005, is proceeding as
planned and the implementation rate as of September was somewhat faster than
planned.

(j) The SAS Group's forecast for the full year 2003 is unchanged: income
before tax, capital gains and restructuring costs will be negative by
approximately SEK2 billion.  Uncertainty over yield development will
continue in the fourth quarter

All reports are available in English and Swedish and can be ordered from
SAS, SE-195 87 Stockholm, telephone +46 8 797 00 00, fax +46 8 797 51 10.
The reports can also be accessed and ordered via the Internet:
http://www.sasgroup.net

The SAS Group's monthly traffic and capacity statistics are published on the
sixth working day of each month.  From February
2004 this information will be published on the fifth working day of each
month.  A financial calendar is available at:
http://www.sasgroup.net

CONTACT:  SAS GROUP
          Investor Relations
          Sture Stolen
          Phone: +46 8 797 14 51
          E-mail: investor.relations@sas.se


SAS GROUP: October Passenger Traffic Drops 5.3% this Year
---------------------------------------------------------
Total passenger traffic increased by 0.1% vs. 2002. The SAS Group
transported a total of 2.9 million passengers in October 2003 vs. 3.0
million in 2002, a decrease of 5.3%.  Overall group passenger load factor
decreased by 1.7 p.u. to 64.8% for October 2003 vs. 2002.

Market trends and yield development

The traffic development in October showed a small increase, but continued
pressure on passenger yields across all airlines in the Group.  Overall
passenger load factor decreased 1.7 p.u. and passenger traffic increased by
0.1% during October.  In general, growth has improved slightly on European
routes, but the domestic and intra-Scandinavian markets are still weak.

Braathens traffic increased in October driven by the positive development on
international routes.  Spanair's traffic improved in October with load
factors up 1.5 p.u. vs. 2002 with reduced yields .

A slightly reduced overall yield reduction was expected for September
compared with August and the outcome showed yields down 13.5% month by month
and 12.7% for the period January- September.  Yields on the European routes
were down approximately 20% in September (European yields are also affected
by the introduction of the new low fare initiative Snowflake with 10-11 p.u.
effect on European yields).

The overall yield development in September and indications for October shows
continued pressure on yields.  Price cuts were introduced in Scandinavia as
from October 26.  These are expected to reduce yields further as from
November by approximately 2-3% vs. 2002.  The restructuring plan "Turnaround
2005" is under implementation to secure a sustained profitability level in a
lower yield environment.  Due to the situation with continued yield
pressure, the outlook remains cautious.

CONTACT:  SAS GROUP
          Investor Relations
          Sture Stolen
          Phone: +46 8 797 14 51,
          E-mail: investor.relations@sas.se


SAS GROUP: Sells Non-core Properties in Frosundavik
---------------------------------------------------
The SAS Group has signed an agreement with Nordic Renting for the sale of
office properties in Frosundavik, in Solna Municipality just north of
Stockholm.  The transaction will release capital amounting to slightly more
than SEK1,100 million, reducing the SAS Group's net debt by a corresponding
amount.

The capital gain amounts to approximately SEK700 million.  SAS
simultaneously signed a leasing agreement and will continue to use the
premises in the future.  The costs for the leasing agreement are comparable
to the depreciation and interest expense on the properties that SAS
currently incurs.

"The sale of the properties is part of the SAS Group's focus on its core
operations," explains SAS CEO Jorgen Lindegaard.  "We are releasing capital
that can be used for airline operations, among other purposes, while at the
same time we are letting a professional property-management company acquire
the office properties.  Under the terms of the leasing contract, SAS will
continue to be located in Frosundavik."

The intent is to further centralize the SAS Group's various units to the
premises in Frosundavik.

When Frosundavik was completed in January 1988, SAS was able to gather 1,500
Stockholm-based employees in a single head office facility.  Frosundavik is
a building whose architecture continues to attract interest.

Nordisk Renting AB was formed in autumn 1986 to focus on long-term property
leasing.  The customers mainly comprise major private Nordic companies or
global companies with a Nordic base, as well as public-sector organizations.
Nordisk Renting cooperates with Rezidor SAS Hospitality, among other
clients.   Since June 2003, Nordisk Renting has been part of the Royal Bank
of Scotland Group, one of the world's largest banking groups.

The transaction is contingent on the approval of the relevant authorities.
The SAS Group also retains an option to repurchase the properties during
years 6 to 10 of the contract term.

CONTACT:  SAS GROUP
          Hans Ollongren, SVP, Corporate Communication
                          and Public Affairs,
          Phone: +46 8 797 19 50 or +46 709 97 19 50
          Sture Stolen, Head of SAS Group Investor Relations,
          Phone: +46 8-797 14 51
          Ulf Thorne, Manager, Public and Media Relations
          Phone: +46 8-797 28 33 or +46 709 97 28 33


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


ABBEY NATIONAL: Jocks up Interest Rates after Bank of England
-------------------------------------------------------------
Following the Bank of England's announcement to increase its base rate from
3.50% to 3.75%, Abbey will make these changes to its interest rates:

Mortgages: Abbeys Standard Variable Rate will increase by 0.21%, to 5.75%
[SVR change for new borrowers effective November 12, 2003 and existing
borrowers from December 1, 2003 (existing ANMF borrowers with effect from
December 3, 2003)].  Variable tracker rate mortgages, which automatically
follow changes in the base rate, will increase by 0.25%.

Savings: Rates on Abbey savings accounts will also increase, on average, by
0.21%. Full details will be available soon.

Fixed rate bonds: In a separate move, Abbey is increasing the rates on its
range of fixed rate bonds, by between 0.50% and 0.75%, from Wednesday
November 12.  The highest new rate on the Choices Bond range will be 5.10%
gross p.a. fixed for three years.

Angus Porter, Abbey's Customer Director said: "This is the first increase in
the base rate since February 2000 and homeowners are still enjoying
historically low rates (The last time the Bank of England base rate was
3.50% was January 1955, the last time it was 4.00% was 1963 - interesting to
note, it has never been 3.75% before).  We're balancing the needs of
borrowers and savers, and have now narrowed the gap between base rate and
our standard variable rate to just 2%."

Variable Rate tracker changed for new borrowers effective November 10, 2003,
and existing borrowers from December 3, 2003.  Full details of Abbey's
mortgage range available upon request.

The Bank of England sets a base rate (officially known as a repo rate)
which, along with other factors, is used by banks and building societies, to
set interest rates for mortgages and loans.

Variable tracker rates follow the Bank of England base rate plus or minus an
agreed differential.

New borrowers taking out a mortgage can choose a special introductory offer.
After the initial offer period all mortgages (excluding the flexible and Cat
mortgages) transfer to Abbey's SVR.  All new mortgages are calculated on a
daily interest basis.  Abbey complies with the Mortgage Code, which provides
our customers with additional consumer protection.

                              *****

Abbey National, which posted a GBP1 billion-loss last year, is in the
process of restructuring its ailing finances.


BRITANNIC GROUP: Closes Britannic Retirement to New Business
------------------------------------------------------------
Britannic Group plc has ceased writing new business at Britannic Retirement
Solutions.  The decision is to take immediate effect and all Group sales
will now be concentrated through Britannic Asset Management.

Since its launch in 2000, Britannic Retirement Solutions has become a major
participant in the enhanced annuity market, distributing its products
predominantly via independent intermediaries.  Sales volumes have increased
rapidly from GBP166 million in 2001 to GBP362 million in 2002.  Sales in the
first half of 2003 were GBP174 million, reflecting the focus on improving
margins.  Achieved operating profit at the half year was GBP4 million up
from a GBP7million loss in 2002, and the embedded value of the business at
June 30, 2003 was GBP60 million.

Despite its improving performance, however, the board of Britannic considers
that the prospective risk adjusted return on capital is not sufficiently
attractive to justify the further deployment of Group capital in Britannic
Retirement Solutions, which would be necessary to support further sales.
This would also not be consistent with Britannic's strategy to withdraw
generally from writing insurance based new business.

Britannic Retirement Solutions existing customers are not affected in any
way by the closure to new business.

It is expected that the closure will result in a reduction in the carrying
value of Britannic Retirement Solutions of approximately GBP12 million after
tax in 2003, with approximately one third of this amount relating to
provision for property costs.  The free asset ratio of Britannic Assurance
will remain broadly unchanged as a result of these actions.

Commenting, Paul Thompson, Chief Executive of Britannic said: "This is a
decision taken in the light of the Group's strategy and our view on
prospective returns.  It is a decision made easier by the fact that the
position of annuitants will in no way be affected.  The decision now enables
Britannic progressively to realize the profits embedded in Britannic
Retirement Solutions.'

CONTACT:  BRITANNIC GROUP PLC
          Phone: 01564 202271
          Paul Thompson

          CITIGATE DEWE ROGERSON
          Phone: 0207 638 9571

          Anthony Carlisle
          Phone: 07973 611 888
          Stephanie Barrett
          Phone: 07939 123 220


CABLE & WIRELESS: Drops Patent Infringement Suits Against Akamai
----------------------------------------------------------------
Akamai Technologies, Inc. (NASDAQ: AKAM) announced that, under the terms of
a new agreement, Cable and Wireless Internet Services, Inc., has agreed to
dismiss lawsuits against Akamai in Boston, San Francisco and London alleging
that Akamai's EdgeSuite(R) services infringe several different CWIS patents.

Akamai did not admit liability or make any payments in connection with these
dismissals.  As part of the settlement, Akamai agreed to dismiss several
lawsuits that it had brought against Cable and Wireless Internet Services.
In addition, Akamai and Cable and Wireless Internet Services have agreed not
to sue each other for a period of five years with respect to the patents and
their respective service offerings that had been at issue in these cases.

This agreement does not impact Akamai's existing damages suit
against Cable and Wireless Internet Services in connection with U.S. Patent
No. 6,108,703.  In 2001, a jury in Boston found Cable and Wireless Internet
Services was infringing that patent.
Akamai will continue to press that case separately to try to
obtain compensation for past infringement, and a damages trial in connection
with that suit is expected next year.

"We are pleased that these patent infringement cases against our
EdgeSuite service offering will be dismissed," said Melanie
Haratunian, Akamai General Counsel.  "Independently, we will
continue to pursue our damages claim."

Akamai(R) - The Business Internet, is the world's largest on
demand distributed computing platform for conducting profitable e-business.
Overcoming the inherent limitations of the Internet, Akamai's services
ensure a high-performing, scalable, and secure environment for organizations
to cost effectively extend and control their e-business infrastructure.

Headquartered in Cambridge, Massachusetts, Akamai's industry-leading
services, matched with world-class customer care, are used by hundreds of
today's most successful enterprises and government agencies around the
globe.  For more information, visit http://www.akamai.com

                              *****

As previously reported, Fitch Ratings affirmed its 'BB+' Long-term rating
and 'B' Short-term rating for Cable & Wireless PLC. The Outlook is Negative.

In its report, Fitch recognized that Cable & Wireless's financial
flexibility will be enhanced following the release of GBP1.5 billion from an
escrow account held to the order of Deutsche Telekom AG, after the payment
of GBP380 million to the Inland Revenue to settle its tax position up to
March 31, 2001.  Nevertheless, substantial uncertainties remain with regard
to the leadership and strategic direction of the group.  The Cable &
Wireless Global business model is still unproven and the Cable & Wireless
Regional incumbent telecommunications service provider businesses continue
to face increasing liberalization and competition.

According to a report by Web Hosting Industry Review, Cable &
Wireless' U.S. Web hosting division would soon file for creditor
protection under the federal bankruptcy laws.


CANARY WHARF: Negotiations Totter Due to Price Disagreements
------------------------------------------------------------
The Independent Committee of Canary Wharf Group plc announced on November 3,
2003 that it had entered exclusive discussions with the consortium led by
MSREF (as defined in that announcement) and Simon Glick with a view to
recommending an offer comprising 220 pence in cash and AIM-listed equity,
which was expected to be valued at 35 pence.

The Independent Committee was willing to recommend this offer on the basis
that it believed, over time, the equity participation could enable
shareholders to realize value in excess of the headline figure of 255 pence.
The Independent Committee is concerned, however, that in the light of
representations from certain shareholders, this proposed offer may not
provide a sufficient degree of certainty, although discussions continue.

On November 7, 2003, Brascan Corporation confirmed that it was considering
making an offer for Canary Wharf.  Subsequently, the Independent Committee
received an improved proposed cash offer from Brascan, but at a level below
255 pence.  The Independent Committee has decided not to recommend this
offer and, as result, discussions with Brascan have ended.

In view of the above, there can be no certainty that a recommended offer
will be forthcoming.  A further announcement will be made shortly.

Lazard & Co., Limited is acting for the Independent Committee of
Canary Wharf and no one else in connection with potential offers for Canary
Wharf and will not be responsible to anyone other than the Independent
Committee of Canary Wharf for providing the protections afforded to
customers of Lazard nor for providing advice in connection with potential
offers for Canary Wharf.

Cazenove & Co. Ltd. is acting for the Independent Committee of
Canary Wharf and no one else in connection with potential offers for Canary
Wharf and will not be responsible to anyone other than the Independent
Committee of Canary Wharf for providing the protections afforded to
customers of Cazenove nor for providing advice in connection with potential
offers for Canary Wharf.

CONTACT:  BRUNSWICK
          Phone: 020 7404 5959
          James Bradley

          LAZARD
          Phone: 020 7187 2000
          William Rucker
          Maxwell James

          CAZENOVE
          Phone: 020 7588 2828
          Duncan Hunter
          Richard Cotton


EUROSTAR GROUP: Owners to Streamline Management Structure
---------------------------------------------------------
Loss-making train operator Eurostar will reorganize its management structure
before the end of the year to improve its operations, according to the
Financial Times.

The plan called "Project Jupiter" will see the French, British and Belgian
partners of the three companies that run Eurostar consolidate the company
into one group, Eurostar International.

Guillaume Pepy, chairman of the Eurostar Group and executive vice-chairman
of the French national railway company SNCF said: "This will avoid conflict
of interests between the different shareholders in the different companies."

The new company will be responsible for decision-making and managing
operations.  This would simplify matters since issues will now be tackled by
only one central management.

Louis Gallois, the chairman of SNCF, said negotiations regarding the
rationalization at the high-speed train service "are now in their final
stages."  A decision is expected before the end of the year, he said.

Under the scheme, SNCF would control 55% of the company's shares, while the
other two shareholders, London & Continental Railways and Belgium's SNCB
national railway company, will hold 35% and 10%, respectively.


FOCUS WICKES: Fitch Assigns Finance's Mezzanine Notes 'B' Rating
----------------------------------------------------------------
Fitch Ratings assigned a 'B' rating to Focus Wickes Finance plc's GBP190
million 10.0% Mezzanine Notes due 2011 and the EUR140 million 9.25%
Mezzanine Notes due 2011.  The agency also assigned Focus Wickes Investments
Ltd., a subsidiary of Focus Wickes Finance plc, a Senior Unsecured rating of
'B+' and a Senior Secured rating of 'BB'.  The Short term rating is 'B'.
The rating Outlook is Stable.

The three-notch differential between the 'B' rating assigned to the Notes
and the 'BB' rating assigned to the Senior Secured facilities reflects the
agency's view of the significant difference in the potential recovery
prospects between the two classes of debt in the event of any future forced
restructuring or distressed sale scenario.  Despite structural enhancements
to the Notes relative to a traditional European high yield bond, the
differential reflects the subordination of the Notes as well as the
relatively low tangible asset collateral value.  Moreover, senior lenders
benefit from robust default provision clauses and should be able to achieve
high recoveries by controlling the restructuring process in any credit
distress scenario.

"The Notes initially rank senior to trade payables at the operating company
level and benefit from subsidiary guarantees and second ranking fixed and
floating charges over the same security package afforded to senior lenders",
said Fitch analyst Pablo Mazzini.  "However, the potential release of the
second ranking guarantees and liens in the event of enforcement by senior
lenders, and sale of the business during the 179 days standstill period,
along with the lack of enforcement rights and the higher minimum threshold
of the Noteholders to declare default, represent structural features that
prevent the granting of improved notching to the Notes".

The Notes were issued in July 2003 to refinance the GBP225 million bridge
facility that had been put in place in January 2003 to part finance the
GBP1,075 million recapitalization and partial secondary buy-out of Focus
Wickes group.  This effectively allowed Duke Street Capital to realize part
of its investment in the company and Apax Partners to enter the business by
acquiring a 28.9% equity interest.  Apart from the bridge facility, these
transactions were supported by GBP525 million of senior secured debt
(permanently reduced by GBP35 million upon issuance of the Mezzanine Notes),
of which GBP90 million relates to a revolving credit facility, and an equity
contribution totaling GBP415 million (including new cash and retained
equity).

The Senior Unsecured rating of 'B+' reflects the leading market position and
dual brand approach in the growing and relatively recession resistant U.K.
DIY retail market through the Wickes and Focus brands.  It also reflects the
enlarged size of the group following the acquisition of Great Mills and
Wickes plc, completed in late 2000.  FY02 net sales amounted to GBP1.58
billion and EBITDA to GBP147.5 million (9.3% EBITDA margin before
exceptional items).

Despite the reduction in margins in YTD FY03, mainly caused by certain
one-off costs linked to the latest recapitalization and the roll-out of the
current range harmonization and store streamlining programs, the business
provides a reasonable EBITDA cash conversion level, underpinned by
encouraging industry drivers and future potential cost savings arising from
the combined buying power of the group.

The counterbalance of these positive dynamics is the group's high operating
and financial leverage and, hence, limited financial flexibility.  The
presence of larger players in this market (notably B&Q, owned by Kingfisher
plc) with greater financial resources is another area of concern, as such
players could increase market share by withstanding (or leading) a prolonged
period of price competition.

Consequently, the planned higher exposure to the warehouse segment through
the development of the Wickes and Wickes Extra stores is likely to
perpetuate increased competition in this market, in tandem with the
aggressive store roll-out program from B&Q.  The agency therefore believes
that an increasing proportion of cost savings reinvested in lower pricing in
order to protect market share could potentially lead to weaker operating
profits, although NOCF should continue to be underpinned by further working
capital optimization.

Based on cash resources of GBP49.5 million at April 2003 and FY03 adjusted
EBITDA estimated by Fitch, FY ended October 2003 net leverage is likely to
be around 4.3x (6.1x if capitalizing operating property leases).


NORTHERN FOODS: Sets Recovery Platform Ahead of CEO's Arrival
-------------------------------------------------------------
As we warned in our September trading update, performance in the first half
has been disappointing, with reduced margins resulting from unrecovered cost
pressures in a difficult trading environment.  However, it is important that
these difficulties should not divert attention from the fundamental
strengths of Northern Foods: consistent sales growth, well-invested
facilities, a strong track record in product innovation, a loyal and
committed workforce and a strong financial base.  A group with these
significant advantages should be capable of delivering consistent growth in
earnings and shareholder value.

Our search for a new chief executive to drive forward the performance of the
business is well advanced.  Pending this appointment, we have already begun
a restructuring program designed both to concentrate on our core abilities
and to reduce our cost base across the group.

Results

We have continued to enjoy good sales growth with all but one of our major
customers, driving a 6.5% turnover increase to GBP722.1 million.  This
includes the benefit of acquiring full control of Solway Foods at the end of
June.  Operating profit, before goodwill amortization and exceptional items
of
GBP2.4 million, however, declined by 9.8% to GBP42.2 million, despite a 7.5%
improvement in the results of our Grocery businesses.  A 22.8% reduction in
Convenience operating profit before goodwill amortization and exceptional
items reflected the under-recovery of raw material cost inflation, the loss
of a major savory products contract, and the impact of record summer
temperatures.

Following an 11.0% increase in interest costs as a result of our continuing
share buyback program and the acquisition of Solway Foods, pre-tax profit,
before goodwill amortization and exceptional items of GBP6.7 million, was
16.2% lower than in the previous first half at GBP32.5 million.  Earnings
per share before goodwill amortization and exceptional items were 8.5% lower
at 5.03 pence, with the profit reduction mitigated by a lower tax charge as
well as share buybacks.  On an FRS 3 basis, pre-tax profit was GBP25.8
million (2002: GBP75.0 million) and earnings per share were 3.72 pence
(2002: 11.86 pence).

Dividend and share buybacks

The board has declared an increased interim dividend of 3.30 pence per share
(2002: 3.25 pence), a rise of 1.5%.  This reflects our confidence in the
operational and financial strengths of the group, as well as our
long-standing commitment to a progressive dividend policy and the creation
of shareholder value.

We have continued to purchase shares in the market for cancellation,
acquiring 10.0 million shares at a cost of GBP15.3 million so far this year.
We have returned a total of GBP121.8 million to shareholders by this means
since we began our current share buyback program three years ago.

By Peter Blackburn, Chairman

CONTACT:  NORTHERN FOODS
          Peter Blackburn, Chairman
          Sean Christie, Finance Director
          Phone: 01482 325432

          HUDSON SANDLER
          Keith Hann
          Wendy Baker
          Phone: 020 7796 4133


NORTHERN FOODS: Chair Hints Further Non-core Asset Disposals
------------------------------------------------------------
We acquired the outstanding 60% of Solway Foods on June 30, 2003 for GBP26.7
million plus GBP7.2 million of inherited debt.  This business operates in
fast growing segments of the chilled convenience foods market, including
sandwiches, prepared salad meals and pasta snacks.  Solway Foods performed
strongly over the summer, with its product portfolio benefiting from the
very hot weather.

We acquired the rights to the San Marco pizza brand from Heinz for GBP0.9
million on 22 May 2003, strengthening the portfolio of our successful
Goodfella's frozen pizza business.

On September 5, 2003 we sold Fox's Confectionery to Big Bear Limited for
GBP9.4 million.  We are determined to focus our business on our core
strengths in the supply of chilled and frozen foods and selected grocery
products to the leading retailers.  Further disposals of non-core activities
are being evaluated.

Outlook

Underlying sales in the first five weeks of the second half are up 3.0%
despite the loss of the major savory products contract taking full effect in
August, and consequently having a proportionately greater impact in this
trading period than in the first half.  Our market place remains
competitive, and we expect further raw material cost inflation as a result
of the relative strength of the euro and the impact of hot weather across
Europe.  This has affected the yield of many crops, most notably cereals and
fruit.  In common with other manufacturers, we are negotiating with our
customers to recover these cost increases.  Whilst as always the Christmas
trading period will be critical to our results, with the actions we are
taking we aim to stabilize second half pre-tax profits before goodwill
amortization and exceptional items at around the level achieved in the
comparable period last year.  From this base, we look forward to announcing
the appointment of a new chief executive who will be tasked with unlocking
the substantial unrealized potential of the group.

Peter Blackburn
Chairman


CONTACT:  NORTHERN FOODS
          Peter Blackburn, Chairman
          Sean Christie, Finance Director
          Phone: 01482 325432

          HUDSON SANDLER
          Keith Hann
          Wendy Baker
          Phone: 020 7796 4133


NORTHERN FOODS: Pre-tax Profits Fall 16% to GBP32.5 Million
-----------------------------------------------------------
Sales

Overall sales were up 6.5% in the half, with sales to our five largest
customers up 7.5%.  This uplift was boosted by the acquisition of Solway
Foods, partially offset by the disposal of Fox's Confectionery.

Underlying sales grew by 3.5% in total, with underlying sales to our five
largest customers showing a similar uplift.

Selling price increases of around 0.5% were achieved in the half, though
these failed to recover input cost inflation, particularly in our
Convenience operations.

Continuing Convenience sales increased by 2.2% to GBP490.8 million, with the
second quarter showing a much weaker underlying trend than the first.  This
reflected one customer's decision to transfer a significant savory products
contract to our competitors.  By the end of the current financial year we
expect to have replaced these lost savory products sales in full through
business gains with other major retail customers.

The record hot weather was generally unhelpful though those businesses with
summer biased product portfolios all saw very strong sales uplifts,
especially Solway Foods and Pork Farms.

In Grocery, whilst biscuit sales were down due to the hot summer, our other
businesses did well.  A good barbeque season boosted Dalepak and Green Isle
benefited from strong underlying sales plus the addition of the San Marco
brand.

Operating profit before goodwill amortization and exceptional items

Operating profit was 9.8% down on last year at GBP42.2 million.
Under-recovery of raw material cost inflation, the disruption and reduced
sales caused by the record temperatures, and the business loss referred to
above, all affected this result.  These negative factors were only partially
offset by the benefits of higher volumes in many businesses, increased
efficiencies and the effect of the changes to pension funding, which we
implemented during the previous financial year.

Continuing Convenience operating profit was reduced by GBP8.5 million to
GBP18.3 million as a result of the above issues, though continuing Grocery
operating profit rose by GBP1.5 million to GBP21.2 million despite the
expected shortfall in biscuits.  This reflected strong performances by Green
Isle and Dalepak based on the sales uplifts referred to above.

Solway Foods contributed GBP2.4 million to operating profit during our 13
weeks of full ownership, while the contribution of Fox's Confectionery prior
to disposal was flat compared with the prior first half at GBP0.3 million.

Pre-tax profit

The increased interest cost due to the share buyback program and acquisition
of Solway Foods, plus the cessation of the associate contribution in the
second quarter, left pre-tax profit, before goodwill amortization and
exceptional items of GBP6.7 million, down 16.2% at GBP32.5 million.  On an
FRS 3 basis, as a result of the profit on sale of Ski and Munch Bunch to
Nestle U.K. last year, pre-tax profit reduced to GBP25.8 million (2002:
GBP75.0 million).

Earnings per share

Primarily as a result of the relatively strong performance of our Irish
operations and tax efficient funding, our tax rate before goodwill
amortization and exceptional items has fallen to 20.0%, compared with 22.7%
last year.  This, coupled with the reduction in our average shares in issue,
meant that the fall in earnings per share before goodwill amortization and
exceptional items was limited to 8.5%.  On an FRS 3 basis, earnings per
share were 3.72 pence (2002: 11.86 pence).

Exceptional items

In the first half, exceptional items totaled GBP4.9 million.  This was more
than accounted for by the loss on the sale of Fox's Confectionery of GBP5.5
million, following a goodwill write-back of GBP5.3 million.  We have
retained for future sale the valuable Paynes factory site in Croydon, from
which production was transferred to Fox's Leicester base last year.  Other
exceptional items comprised reorganization costs following the establishment
of the group's shared service center which were more than offset by the
release of provisions no longer required, mainly relating to the sale of Ski
and Munch Bunch to Nestle U.K.  As the year progresses, additional
reorganization costs are likely to be incurred in relation to the
Fox's/Elkes merger and further cost saving initiatives.

Distributions to shareholders

We have increased the interim dividend by 1.5% to 3.30 pence per share,
which will be paid on March 26, 2004 to those shareholders on the register
at January 16, 2004.

We have also continued to buy shares in the market, purchasing 10.0 million
shares for GBP15.3 million in the current year to date.  The buybacks helped
to mitigate the dilution from disposals in the current and prior year.

Capital expenditure

Capital expenditure in the period was in line with depreciation at GBP32.1
million, compared with GBP34.1 million in the first half last year.  The
major projects were the ongoing spend on SAP ahead of the shared service
center commissioning and the refurbishment of the Savoury Foods factory in
Nottingham to accommodate rapid growth in chilled pizza volumes.

Cash flow and balance sheet

The first half saw an increase in net debt of GBP89.8 million, compared with
a reduction in net debt of GBP70.0 million in the previous first half.  Last
year's figure reflected the proceeds of GBP145.0 million from the sale of
Ski and Munch Bunch to Nestle U.K.  We normally expect a cash outflow in the
first half since our borrowings traditionally near their peak in September
and October as we build working capital ahead of the Christmas trading
period.

We returned GBP43.9 million to shareholders through dividends and share
buybacks.

The net cost of acquisitions and divestments was GBP19.9 million.

As a result of the cash outflow, net debt as at September 30,  2003 was
GBP413.4 million (2002:  GBP343.7 million).  EBITDA interest cover, our main
debt covenant, was 7.4 times.

Sean Christie
Finance Director

To See Financial Statements:
http://bankrupt.com/misc/Northern_Foods_Results.htm

CONTACT:  NORTHERN FOODS
          Peter Blackburn, Chairman
          Sean Christie, Finance Director
          Phone: 01482 325432

          HUDSON SANDLER
          Keith Hann
          Wendy Baker
          Phone: 020 7796 4133


PPL THERAPEUTICS: Consultation on Disposal Plan Still Ongoing
-------------------------------------------------------------
Further to its announcement on September 15, 2003, that the Board of PPL had
decided to pursue an orderly sale of the business, the Board is now able to
provide an update on recent progress made in maximizing short-term value for
shareholders.

Consistent with preserving PPL's cash while maintaining the value of PPL's
key assets, staff numbers have been reduced over recent weeks from 55 to 35.
As a result cash burn will be further reduced to below GBP0.2 million per
month (after taking account of the benefit of the Group's R&D tax credit).

Since September 15 PPL has held discussions with a large number of parties
with potential interest in acquiring the business or in purchasing assets
owned by PPL.  Discussions concerning the potential sale of the company
continue with a limited number of parties.

The Board believes that a program of asset disposals can be successfully
pursued in parallel with discussions for the sale of the business and
accordingly, is actively marketing its premises in the U.K. and New Zealand
for sale.  PPL has already received offers for one of the farm premises in
the U.K. and for the office building at Roslin and is in the process of
agreeing definitive terms for their sale.  In addition, PPL is scheduling an
auction of pilot plant equipment for early December 2003.  PPL remains in
discussion with additional parties for other packages of assets.

PPL will provide further updates to shareholders at the appropriate time.

CONTACT:  PPL THERAPEUTICS
          Chris Greig, Chairman
          Lindsay Dunsmuir, Chief Financial Officer

          Phone: 0131 440 4777
          Alistair Mackinnon-Musson
          Philip Dennis
          Hudson Sandler
          Phone: 020 7796 4133
          E-mail: ppl@hspr.co.uk


ROYAL MAIL: Disputes Obligation to Pay Losses Caused by Strike
--------------------------------------------------------------
Royal Mail and Postwatch, a government-funded postal watchdog, are now at
loggerheads over whether or not the former has to compensate customers for
their losses caused by the recent wildcat strikes.

The postal operator believes it is not obliged to pay because the illegal
strikes constituted "circumstances beyond its control."  It adds that a
Postcomm regulation that does not consider industrial action as a valid
excuse to suspend compensation will not take effect until January next year.

"We understand their problem, but we want to do the best for customers," an
unnamed Postwatch spokesman told The Telegraph in an interview.  "The
problem is how they could physically cope with millions and millions of
claims, and they don't want to divert people into setting up additional call
centers while they are dealing with the backlog from the action."

An estimated five million items were delayed as a result of the unofficial
postal strike.  The Telegraph says, "Even if only a quarter of the delayed
items faced a claim at the standard rate, it would cost Royal Mail an extra
GBP4 million (payable in books of first class stamps) as well as the cost of
processing the claims."

The paper said a forced compensation would be a big blow to Royal Mail's
goal to turn a profit this year, its first in five years.  Postwatch could
not care less.

"Postwatch feels that customers deserve a very big apology for this,"
sources close to the talks told The Telegraph. "It has to be a monetary
apology because that is the only sort that the customers understand."


THOMAS COOK: Expects Full-year Loss to Increase Significantly
-------------------------------------------------------------
Thomas Cook's loss in the fiscal year ended October 31 amounted to EUR390
million (US$449 million), Frankfurter Allgemeine Sonntagszeitung said
without specifying sources, according to Bloomberg.

Europe's second-biggest travel company could also reveal a write-off for a
U.K. unit and purchase of airplanes that may amount to a high three-digit
million-euro figure, the German newspaper said, citing company insiders.

The company posted a EUR120 million after-tax net loss for 2001/2002.

The report came after KarstadtQuelle AG, joint operator of Thomas Cook,
scrapped its full-year earnings target partly because of weak business at
the travel venture.

Thomas Cook, owned by Deutsche Lufthansa AG and KarstadtQuelle, is pursuing
a program aimed at saving EUR600 million over the next two years starting
January.   In July the company said there could be deeper job cuts at its
German locations.  In June it said it would reduce its fleet by as many as
13 planes.


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

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