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

                           E U R O P E

            Wednesday, March 27, 2002, Vol. 3, No. 61


                            Headlines

* F I N L A N D *

SONERA CORPORATION: Confirms Tie-up Discussions With Telia

* G E R M A N Y *

COMDIRECT BANK: Prints 2001 Report in Red With EUR 160MM Loss
MOBILCOM: France Telecom Blinks, Offers Schmid EUR22 per Share
PHILIPP HOLZMANN: Banks Seen to Extend Loans Pegged on Assets
WUNSCHE AG: Revives Insolvency Petition as Talks With MPC Fail

* I R E L A N D *

ALLIED IRISH: Allfirst CEO Has a Year to Turn Things Around

* N O R W A Y *

KVAERNER ASA: Secures US$ 11MM Deepwater Project From BP

* P O L A N D *

NETIA HOLDINGS: Files Request for Nasdaq Listing

* S W E D E N *

ICONMEDIALAB: Announces US$ 405.0MM Rights Issue

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

ABB LTD: Moody's Lowers Ratings Two Notches Down to Baa2

* U N I T E D   K I N G D O M *

ARTHUR ANDERSEN: KPMG Probes U.K. Involvement in Shredding
ARTHUR ANDERSEN: Deloitte Now Wants to Play Spoiler in KPMG Party
CONSIGNIA: To Toss 10,000 Jobs Before End of Week
ENRON CORPORATION: Malaysian Upends Scottish Bank in Wessex Bid
INVENSYS PLC: Completes Energy Storage Disposal
ITV DIGITAL: Carlton, Granada Face GBP 500MM Shutdown Expenses
JOHN LAING: Notification of Directors' Interests
MARCONI PLC: Bondholders Want Parity With Banks in Rescue Talks
MARCONI PLC: Notification of Morgan Stanley's Interests
PPL THERAPEUTICS: Will Raise GBP 20MM Thru Spinout, Out-licensing
PPL THERAPEUTICS: Records Higher 2001 Losses Than Year Before
RAILTRACK GROUP: Gov't to Extend Aid to Hasten Administration
RAILTRACK GROUP: PLC Secures State-backed GBP 4.4BB Loan
TELEWEST COMMUNICATIONS: Debt-for-Equity Swap Doubtful
THUS PLC: Notification of Legal & General Interests


=============
F I N L A N D
=============


SONERA CORPORATION: Confirms Tie-up Discussions With Telia
----------------------------------------------------------
  
Finish telecom operator Sonera Corporation confirmed Monday that
it is in talks with Swedish counterpart Telia over what many see
might become the first European cross-border link-up.

But the Financial Times says caution is still in the air, as
analysts pointed out that rumors of talks like this had been on
and off the past 12 months.

Analysts say there are no grounds for over-optimism about a
breakthrough, as even the confirmation statement issued by the
companies was hazy, at best.

The paper says both companies issued similar two line statements
in which they said they are in discussions.  They added that it
is "too early to estimate any potential outcome of these
discussions."

According to the report, the statements came after Paavo
Lipponen, the Finnish prime minister, said in a radio interview
on Sunday that talks were under way.

"Discussions are being held, but as to what stage they are [at] I
do not have anything more to say," Mr. Lipponen was quoted as
saying.

The report says Deutsche Bank is advising the Finnish government
and Goldman Sachs in advising Sonera.  In Sweden, Carnegie is
understood to be advising Telia and UBS Warburg the Swedish
government.

The paper says consolidation among European telecoms has been
widely predicted but heavy debt loads, valuation issues and
political concerns have so far blocked progress.

In the case of Sonera and Telia, any deal would be politically
sensitive, with the Finish operator still 53% state-owned while
the Swedish firm remains 70% state-owned.

The report says Telia is under pressure to win back market
confidence after seeing its share price more than halve since its
listing in June 2000.

Sonera, on the other hand, has seen its share price plunge from a
peak of EUR97 in 2000 to EUR5.78 at the close on Friday. The
mauling has been mostly caused by exposure to costly third-
generation licenses, particularly in Germany, and the sharp rise
in its debt load.


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


COMDIRECT BANK: Prints 2001 Report in Red With EUR 160MM Loss
-------------------------------------------------------------

Online brokerage Comdirect Bank is confident it can return to
profit this year, despite ending in the red in 2001.

Speaking during the company's annual results conference Monday,
CEO Bernd Weber said the online broker is poised to ink results
in black when it bares its report next year.

The group unveiled a EUR160.07 million loss in 2001, drowning the
EUR2 million-profit recorded the year before.  The company says
the main culprit for the dismal performance was the disastrous
outcome of its expansion to foreign markets.

The company wrote down a total of EUR204 million for its units in
France, Italy and Britain.  The French subsidiary was sold over
the weekend, while the Italian unit will be shutdown beginning
this weekend.  The firm, however, will keep the British office
open and even expects it to earn a profit by 2004.

The results, however, were not entirely gloomy, says
Handelsblatt.  

Last year, the company was able to increase its German client
base from 577,000 to 617,000. If its foreign operations are taken
into account, the brokerage's total client base is now 684,000,
the report says.

Aside from that, the online brokerage firm also produced an
operating profit of EUR12 million on its German activities, which
saw 245 jobs go last year.  It now employs 1,290 people.

Meanwhile, Mr. Weber says Comdirect's strategy this year includes
taking greater advantage of its ties with parent Commerzbank AG.  

He says both are now looking at ways in which the brokerage could
use Commerzbank's branch network as an additional distribution
network.  For instance, they are currently examining the
possibility of enabling clients to open online portfolios in
Commerzbank branches, Mr. Weber says.

He, however, said that the Internet would remain Comdirect's main
sales channel and that the brokerage would retain its
independence. There were, he said, no plans for its reintegration
within the Commerzbank group.

In addition to this, the company is also considering new pricing
model aimed at encouraging more frequent trading.  The firm says
it has noticed that clients are trading less frequently now than
during the stock market boom of 1999-2000. The total number of
orders fell from 15.3 million to 8.7 million since then, the
company says.


MOBILCOM: France Telecom Blinks, Offers Schmid EUR22 per Share
--------------------------------------------------------------

France Telecom chickened out from its earlier threats to sue
MobilCom Gerhard Schmid over the latter's exercise of an option
that will force the French telecom to buy his shares and
consolidate its mounting debts.

The French company has reportedly blinked over the weekend and
made a EUR22 per share offer for Mr. Schmid's 33% holdings
through bank intermediaries.  It is not clear whether the banks
will hold the stakes on behalf of the French firm.  

If they do, however, it may not trigger a full takeover by France
Telecom, the Financial Times says.

The paper says the offer is not simultaneously being made to
minority shareholders.  It is also not conditional on the French
operator making an offer for the entire company.

The report explains that since the French telecom owns 28.5% of
MobilCom, German law would oblige it to buy out minority
shareholders if it owned Mr. Schmid's stake outright.

If France Telecom was forced to take over MobilCom, it would have
to consolidate the German mobile operator's EUR5 billion to EUR6
billion debt just as it is attempting to reduce its own EUR60.7
billion of borrowings, the report adds.

Mr. Schmid has been at odds with the French firm over the
latter's objection to spend EUR1.3 billion on new wireless
services in Germany.

France Telecom is opposed to the plan preferring, instead, a
link-up with rivals to keep down cost.  The French investor says
MobilCom had "no chance" against larger operators like Deutsche
Telekom and Vodafone unless it joins forces with one of three
other smaller companies that hold German licenses.  


PHILIPP HOLZMANN: Banks Seen to Extend Loans Pegged on Assets
-------------------------------------------------------------

Sources close to bank creditors of insolvent Philipp Holzmann say
the company won't have a hard time securing fresh loans with the
lenders in order to maintain the firm a going concern.

Handelsblatt sources say the banks are willing to cough up
credits for as long as these are guaranteed by properties, a
standard procedure nonetheless in negotiations like these.

The paper says interim administration Ottmar Hermann was
scheduled to meet with creditors Tuesday to negotiate the loan,
which some quarters say is in the region of "low triple-digit
millions of euros."

In separate developments, the paper said the collapse of Holzmann
has not affected an ongoing probe into the company by Frankfurt's
department of public prosecution.

The investigation was commenced following Holzmann's near-
bankruptcy in 1999.  Spokesman Job Tilmann says the department
even expects new evidences to be unearthed as a result of
restructuring measures planned by Holzmann's administrator.

The investigation has already gone as far looking into
allegations that North Rhine-Westphalia's central savings bank
Westdeutsche Landesbank (WestLB) gave out false invoices to
Holzmann.

The probe is also considering the alleged embezzlement by former
Holzmann management board members, including the balance-sheet
manipulations and credit fraud.


WUNSCHE AG: Revives Insolvency Petition as Talks With MPC Fail
--------------------------------------------------------------

German clothing and textile firm Wunsche AG has re-filed its
insolvency petition after talks with Handels-und Finanzholding
Munchmeyer Petersen & Co GmbH (MPC) failed early this week.

Frankfurter Allgemeine Zeitung says the company is blaming the
tax demand against fashion subsidiary Joop! GmbH and the
disappointing performance of fashion brand Cinque for the failure
of the talks.

The taxes in arrears have already amounted to EUR37 million.  Two
weeks ago the company said the taxes were owed by former owner
Wolfgang Joop, as the notification of tax alterations covered the
1990-1991 dues of the subsidiary.   

The fashion firm says the subsidiary only came under its control  
in 1998; hence, the tax due is owed by former shareholders.

MPC came to Wunsche's rescue in January, offering a timely
capital increase and forcing the cancellation of the company's
insolvency petition.

But early this week the investor, in explaining the failure of
the talks, said the risks of investing in Wunsche had been
"simply too high."

Wunsche's debts total over EUR100 million.


=============
I R E L A N D
=============


ALLIED IRISH: Allfirst CEO Has a Year to Turn Things Around
-----------------------------------------------------------
  
Allfirst CEO Susan Keating, who surprisingly kept her neck
relatively scot-free two weeks ago, has a year to turn things
around at the US unit of Allied Irish Banks.

According to the Financial Times, Ms. Keating has a 12-month
lease on her post at which time she should get the bank on track
or face the sack and see the sale of Allfirst to a rival.

The report says top honchos in Ireland decided to extend Ms.
Keating's tenure after recognizing that she had only been in
charge of the treasury business for 12 months, while the US$691
million fraud had been under way for five years.

In addition, she was retained in order to avoid "destabilizing"
the US operation and alienating staff and customers, senior AIB
staff told the paper.

On the decision not to sell the US unit just yet, the head office
says it does not want to peddle the business at a discount.

Rumors are rife that the Royal Bank of Scotland is reportedly
eyeing a merger between its Citizen unit in the US and Allfirst.  
Some quarters have also suggested a tie-up between the company
and its archrival Bank of Ireland.

Six executives, including treasury head David Cronin, were thrown
out the window two weeks ago after an evaluation into to the
rogue trading scam showed they were negligent with their duties.  


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


KVAERNER ASA: Secures US$ 11MM Deepwater Project From BP
--------------------------------------------------------

Kvaerner, the international oil services and products,
engineering and construction, and shipbuilding Group, announced
Monday that Aker Kvaerner has been awarded a contract to supply
advanced drilling and mooring equipment for BP. The contract,
which is worth US$11 million, is for one of the largest oil
fields in the U.S. - almost 2,000 meters of water depth - in the
Gulf of Mexico.

The advanced deepwater equipment has been developed and will be
delivered by Maritime Hydraulics and Maritime Pusnes. Both are
among the world leaders in their sectors. The equipment is due
for completion and delivery in the first quarter of 2003.

The equipment is for a semi-submersible platform which BP is
having built for installation on the Thunder Horse oil field.
Together with three nearby oil and gas fields, Thunder Horse is
part of a pioneering project for oil and gas production in waters
deeper than any field off the coast of Norway.

Maritime Hydraulics is to supply compensation equipment and
equipment for handling drilling equipment. The company, which has
some 800 employees and is based in Kristiansand in southern
Norway, develops and manufactures advanced drilling technology
and drilling equipment.

Maritime Pusnes will supply guide sheaves for the platform's
mooring system. The company develops and produces advanced
mooring equipment especially for deep waters, and various kinds
of ship's gear. Based in Arendal in southern Norway, it has
around 280 employees.

For more information, contact Leif Hauko, President, Maritime
Pusnesm: +47 90 99 0774 or Torbjorn Andersen, Vice President,
Corporate Communications, Aker Kvaerner: +47 22 94 53 or +47 928
85 542.


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


NETIA HOLDINGS: Files Request for Nasdaq Listing
------------------------------------------------

Netia Holdings S.A., Poland's largest alternative provider of
fixed-line telecommunications services, announced Monday that it
received a Nasdaq Staff Determination on March 21, 2002,
indicating that:

(i) Netia was not in compliance with the minimum US$4,000,000 net
tangible assets or the minimum US$10,000,000 stockholders equity
requirement for continued listing on The Nasdaq National Market
set forth in Marketplace Rule 4450(a)(3) and

(ii) Netia had filed for arrangement proceedings in Poland and
had filed a Section 304 petition in the U.S. Bankruptcy Court for
the Southern District of New York which is a grounds for
delisting under Marketplace Rule 4330(a)(1).

As a result, the Nasdaq Staff indicated that Netia's American
Depositary Shares ("ADSs") are subject to delisting from The
Nasdaq National Market.

On Monday, Netia requested an oral hearing before a Nasdaq
Listing Qualifications Panel to review the Staff Determination.

However, there can be no assurance that the Listing
Qualifications Panel will grant Netia's request for continued
listing.

Until the Listing Qualifications Panel reaches its decision
following the oral hearing, Netia's ADSs will remain listed and
resumed trading on The Nasdaq National Market on March 20, 2002.

For more details, contact Anna Kuchnio of Netia's Investor
Relations, at telephone +48-22-330-2061, for further information.


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


ICONMEDIALAB: Announces US$ 405.0MM Rights Issue
------------------------------------------------  
  
The board of directors of Icon Medialab International AB, from
its extraordinary shareholders' meeting held on January 18, 2002,
resolved to increase its share capital with no more than SEK
4,157,977.28 (US$ 405.0 million) by the issue of no more than
51,974,716 shares.

The company's shareholders shall have preferential rights to
subscribe for the newly issued shares, whereby each holding of a
complete batch of two shares shall entitle to the subscription of
one new share. The subscription price shall amount to SEK 3.50
per share.

The record day for resolving on preferential right to subscribe
for shares shall be Monday April 15, 2002. Subscription with
preferential right shall be made during the period from April 17
until April 30, 2002 inclusive.  

Moreover, the board of directors resolved to increase the share
capital with no more than SEK 83,159.52 by the issue of no more
than 1,039,494 shares at a subscription price amounting to SEK
3.50.

The new shares shall be subscribed by Fidessa Asset Management
S.A. and payment shall be made by set-off of the claim arising
from the underwriting undertaking by Fidessa in connection to the
rights issue as set out above.

The new shares constitute payment for the underwriting fee to
Fidessa and correspond to 2% of the total amount of shares issued
in the rights issue.

The complete texts of the resolutions by the Board of Directors
as set out above are obtainable at the company, on address
Sergels Torg 12 in Stockholm.

IconMedialab and Lost Boys merged in January 2002. The group, an
interactive digital solutions provider, operates with 1,500
employees in 14 countries in Europe and the U.S.

For further information regarding this announcement, please
contact William Kellerman of IconMedialab International at
telephone number +46-70-375 90 20 or email at
william.kellerman@iconmedialab.com.


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


ABB LTD: Moody's Lowers Ratings Two Notches Down to Baa2
--------------------------------------------------------

Taking management by surprise, ratings agency Moody's Investors
Service lowered anew its credit grade for "heavily indebted"
Swiss-Swedish power and technology group ABB Ltd., reports the
Financial Times.

Moody's downgraded the company's senior debt rating two notches
to Baa2 and cut its short-term debt rating to Prime 3, raising
the possibility that ABB will no longer be able to rely on a US$3
billion credit facility it drew down last week.

According to the paper, the decision taken by Moody's Monday
night reflected the "ongoing challenges facing ABB as a result of
its high leverage and modest operating cashflow amid a weak
operating environment."

The ratings agency expects the company's cashflow to be "deeply
negative" in the coming months due to US$2 billion of maturing
debt and commercial paper, coupled with seasonal cash flow
patterns.

As this develops, the paper says the company will now be forced
to renegotiate the bank facility it set up with a group of more
than 50 banks in December led by Credit Suisse First Boston and
Citibank.

Under the terms of the unsecured facility, the loan had to be
renegotiated if ABB's rating fell below either Moody's A3 or A-
at Standard & Poor's. If ABB and its bankers cannot agree on
revised terms, the US$3 billion facility will be terminated, the
report says.

Accordingly, the group now has 15 days to renegotiate the
facility otherwise it will no longer have access to the funds it
needs to pay off its commercial paper as it falls due.

The report says the ratings downgrade surprised management, which
until recently tried desperately to dispel speculation that it is
suffering a cash crunch.

ABB CFO Peter Voser said last week that at the end of February
the company had US$5 billion in cash and marketable securities,
of which half was immediately available.


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


ARTHUR ANDERSEN: KPMG Probes U.K. Involvement in Shredding
----------------------------------------------------------

KPMG, which is still trying to assimilate a substantial portion
of Andersen's global practice, is now investigating allegations
that shredding of Enron documents extended across the Atlantic.

The Financial Times says KPMG, in particular, is looking into the
British affiliate, which was named by the Department of Justice
recently as among the offices that destroyed Enron documents.

Early on, Anderson had admitted that aside from Houston, where
the Enron audits were based, shredding also took place in London,
Portland in Oregon and Andersen headquarters in Chicago.

Recently, however, and Andersen internal investigation cleared
all those involved, saying no material documents were destroyed.
Michael D. Jones, a partner who had been based in Houston, played
a part in ordering document destruction in London.

The report says the U.K. practice is central to KPMG's interest
in Andersen, which is focusing on the large partnerships in
Western Europe.  The merger with the London affiliate can propel
KPMG into the No. 1 spot in the U.K. where it will end up having
more than 1,000 partners and close to 20,000 employees.

However, if the London unit is not completely fault-free as
regard the document shredding, it could present KPMG a big
headache, as it could become a target of U.S. litigation over
Enron.


ARTHUR ANDERSEN: Deloitte Now Wants to Play Spoiler in KPMG Party
-----------------------------------------------------------------

After recently giving up hopes to merge with Arthur Andersen,
Deloitte Touche Tohmatsu is now threatening to complain to
regulators the impending tie-up between Andersen and KPMG.

Deloitte CEO Jim Copeland told the Financial Times recently that
he was concerned about the implication of some of the deals being
worked out by the two accounting powerhouse.

"We'll complain to regulators in those areas where we think an
alliance would be unfair competition," Mr. Copeland told the
paper.

Deloitte recently backed out from negotiations with Andersen
after both failed to find a way around the potential liabilities
of Andersen's U.S. operations.  KPMG thereafter took over the
talks.

But without even Deloitte complaining, European competition
authorities have already indicated that a takeover of Andersen's
non-U.S. operations by KPMG will face tough scrutiny from the
European Commission.


CONSIGNIA: To Toss 10,000 Jobs Before End of Week
-------------------------------------------------
  
Some 10,000 jobs will be sacrificed at Consignia before Easter --
not to rid it of sinners -- but to save some GBP1.2 billion of
precious money to prepare itself for competition when the mail
market is opened to more players soon.

According to the Financial Times, the redundancies will affect up
to 6,000 posts at Parcelforce. The balance will be chipped off
elsewhere in the group.

The radical restructuring plan, which has the backing of
ministers, is part of the terms of employment negotiated by Allan
Leighton, who was endorsed to take the chairman's post
permanently.

The report says the Department of Trade and Industry, the only
shareholder of Consignia, is expected to approve the release of
GBP400 million from the Treasury to pay the generous severance
packages of affected workers.

So far, unions have no objection to the radical turnaround plan
after given assurances that none of the Parcelforce job losses
will involve compulsory redundancies, the report says.

Still many fear that the remaining cost savings will require even
bigger job cuts within the Royal Mail, which accounts for the
vast majority of Consignia's 200,000 staff and GBP8.1 billion
operating costs.

Consignia has so far refused to withdraw its earlier suggestion
that meeting the GBP1.2 billion cost savings may require up to
30,000 job cuts.

The report says only a handful of independent observers believe
cutbacks on this scale can be achieved without confrontation with
unions.


ENRON CORPORATION: Malaysian Upends Scottish Bank in Wessex Bid
---------------------------------------------------------------

Malaysian construction group YTL Corp. performed a well-timed and
perfectly executed coup Saturday night to wrestle Wessex Water
from Royal Bank of Scotland.

The Malaysian group upset the consortium led by the bank, with a
last minute GBP1.24 billion-bid. Early on, the bank had been
thought to have already sealed the deal with only formalities
remaining to be settled over weekend.

According to the Financial Times, YTL's bid values Wessex at a 5%
premium to its net regulated asset.  Enron bought Wessex in 1998
for GBP1.36 billion.  Stock market values of water utilities,
however, have since fallen.

Sources privy to the transaction Saturday told the paper that
only a hairline separated YTL's bid from the Scottish bank, but
the former was preferred because it had presented a quicker and
less complex proposal.

The bank partnered with Abbey National and Goldman Sachs in
bidding for the utility.

YTL, which is listed on the Malaysian stock exchange, is 46%
owned by the Yeoh family and is run by Francis Yeoh, one of the
sons of Tiong Lay Yeoh, the Malaysian billionaire.

The bid was made through YTL Power International, a subsidiary
that is 60% owned by YTL Corp., the report says.

The paper says Enron was advised by Schroder Salomon Smith Barney
while YTL was advised by Deutsche Bank.

YTL says proposals would be developed to enable management and
staff of Wessex Water to become investors in the company.


INVENSYS PLC: Completes Energy Storage Disposal
-----------------------------------------------

Invensys plc, the London-based electronics and engineering group,
on Monday announced the completion of the previously announced
disposal of its Energy Storage Group to EnerSys, Inc.

The consideration has been revised by agreement between Invensys
and EnerSys and now amounts to US$425 million, comprising cash
proceeds of US$325 million received on closing, a US$100 million
Loan Note issued by EnerSys, and warrants that, if exercised, may
give Invensys up to a 28% equity stake in the enlarged company.

The Note, which bears interest at the 12 month LIBOR rate, is
unsecured and subject to prepayment on the earlier of certain
financing activities to be undertaken by EnerSys or a change of
control of EnerSys. If the note is not prepaid, it is payable at
the end of eight years.

For more information regarding this announcement, please call
Victoria Scarth of Invensys plc at telephone number +44(0) 20
7821 3712; or Simon Holberton or Ben Brewerton of Brunswick at
telephone number  +44(0) 20 7404 5959.


ITV DIGITAL: Carlton, Granada Face GBP 500MM Shutdown Expenses
--------------------------------------------------------------

Closing down ITV Digital is not cheap after all. According to
analysts, pulling the plug on the joint venture will cost Carlton
and Granada some GBP500 million in liabilities.

In a report, The Observer said a premature exit from the business
would disturb long-term deals that include those with British
Telecommunications and set-top manufacturers, among others.

In 1998 Carlton and Granada, then part of British Digital
Broadcasting with BSkyB, signed two 12-year contracts with BT and
network transmission firm Crown Castle, worth around GBP200
million and GBP120 million respectively.  Aside from this, ITV
Digital also has a multimillion-pound contract to run BT's call
centers.

Contracts with hardware companies that make ITV Digital's set-top
boxes are worth as much as GBP100 million, the report says.
There are also content deals with BSkyB and Flextech, though
these may be easier to exit, industry insiders say.

JP Morgan, on the other hand, says closing down the unit would
also entail nearly GBP30 million for refunding annual
subscriptions and around GBP50 million on redundancies.

This means, according to the report, that ITV Digital and
potentially its parent companies could be tied to contracts worth
more than GBP500 million.  

The report says the cost of closure may outweigh those of keeping
the venture alive. The paper pointed out that the joint venture
only needs at least another GBP300 million in revenue to break
even.

Early this month, the two companies said that they will dissolve
the unit when they merge later this year.  ITV Digital, a unit of
Carlton, was the major factor behind the group's GBP400 million
losses last year.


JOHN LAING: Notification of Directors' Interests
------------------------------------------------

John Laing plc, London-based development and construction group,
announced last week that the company's director, Peter Joseph
Harper, in a non-beneficial capacity as a trustee of the Maurice
Laing Foundation, disposes by a trust fund a total of 2,800,938
ordinary shares (or equivalent to 1.60% of the total shares) of
25p each.

To wit, the breakdown of the disposals are listed as follows:
1,142,000 shares at 175.5 pence each on March 18, 2002; 100,000
shares at 183 pence each March 19, 2002; 1,558,938 pence at 168
pence each March 21, 2002.

Following this notification, Mr. Harper, on beneficial capacity,
will have a total holding of 29,265 shares or an equivalent of
0.168%.

For inquiries regarding this announcement, please contact R K
Miller at telephone number 020 8906 5707.


MARCONI PLC: Bondholders Want Parity With Banks in Rescue Talks
---------------------------------------------------------------

Bondholders who were earlier kept out of the loop in previous
rescue discussions between Marconi and creditor banks welcome the
chance at meeting with management over an alternative plan.

In report Sunday, the Financial Times said bondholders are
willing to sit down and consider another plan for the company for
as long as they are given parity rights with the banks.

"All along we considered there should have been a three way
discussion about the future of the business," lawyer James Roome,
who represents bondholders, told the paper.

The report says the aim of any further talks will still be
keeping the company afloat, rather than breaking it up.  

"Taking cash out of the business would not make the most money.
We are not wild-eyed and seeking to divvy up the cash between the
banks and bondholders," an investor told the paper.

But some disagree.  A small bondholder said: "The company wants a
debt for equity swap. But do banks and bondholders want equity in
this company? No. I'm not going to agree a deal.  A sale of the
assets of the business and divvying up the spoils is in the
lenders' best interests."

Last week, Marconi terminated its efforts to negotiate a
refinancing package with creditor banks, after warning that
demand for its telecoms equipment products would remain weak
through March 2003.

The failure opens the way for new talks that will include
bondholders, excluded from previous discussions, the report says.

But bondholders, who met Friday to map out strategy, say they
will seek clarification from the company on why it gave up the
GBP2.4 billion of untapped bank facilities, and put the GBP2.2
billion it owed to banks "on demand."

They did not disclose what action they will take if the company
fails to make a good explanation.


MARCONI PLC: Notification of Morgan Stanley's Interests
-------------------------------------------------------

Marconi plc, the London-based telecom equipment maker, on March
25, 2002 received notification that on March 22, 2002 Morgan
Stanley Securities Limited (MSSL) and the group companies which
are direct or indirect holding companies of MSSL acquired an
interest in the shares of Marconi that resulted in a holding of a
total of 100,938,270 shares, being approximately 3.61% of the
issued share capital of the company.


PPL THERAPEUTICS: Will Raise GBP 20MM Thru Spinout, Out-licensing
-----------------------------------------------------------------

With available cash balance now only GBP25 million and no new
drugs coming until 2005, PPL Therapeutics is thinking of spinning
out research divisions.

According to the Financial Times, the cloner of "Dolly-the-Sheep"
is aiming to raise GBP20 million from its xenotransplantation and
stem cell research operations and the out-licensing of Fibrin I
and BSSL.

The spinout of the research operations has been under
consideration since last year.  Former research director Alan
Colman and his Embryonic Stem Cell International were earlier
floated as possible contender for the units.

CEO Geoff Cook expects the spinout to result in a cash windfall
of GBP10 million or more, as well as an equity stake of similar
size.

Mr. Cook says his company is also looking for partnership
agreements to out-license Fibrin I, a wound healing treatment,
and BSSL, designed to correct pancreatic dysfunction.  He expects
this accords to generate at least as much cash as the spinout.

Out-licensing deals could be struck within the next two to three
months, he says.


PPL THERAPEUTICS: Records Higher 2001 Losses Than Year Before
-------------------------------------------------------------

"Dolly-the-Sheep" cloner PPL Therapeutics Plc revealed recently
that its losses had reached GBP12.7 million in 2001 on costly
projects related to therapeutic products.

The company, however, said in a statement to UK's Regulatory News
Service that revenue, including grants, rose to GBP2 million in
2001 from GBP800,000 a year earlier.

According to the company, these earnings increase were partly
realized from payments of research partner Bayer AG.  

Still the losses this year is much more than the GBP11.2 million
booked in 2000, Bloomberg pointed out.

PPL has lost about three-quarters of its market value in the last
12 months on concern about rivals' research successes and worries
that Dolly developed arthritis because of the cloning process.

The company is now focusing on an emphysema treatment in
development with Germany's Bayer.


RAILTRACK GROUP: Gov't to Extend Aid to Hasten Administration
-------------------------------------------------------------

Railtrack could exit administration as early as July or August,
as government pledged to dole out another GBP500 million to
hasten the takeover by state vehicle Network Rail Limited.

According to the Financial Times, the aid follows the formal
offer by the government-backed not-for-profit company to acquire
the ailing rail network operator.

The paper says the new management has GBP9 billion earmarked for
buying out Railtrack's shareholders and bondholders. In addition,
the company will also GBP200 million, funded by debt.

With this payment, along with assets salvaged by Railtrack group,
the value of the offer for the company could be between 240p and
260p per share.  This, however, is much lower than the 280p value
at the time the firm was put in administration.


RAILTRACK GROUP: PLC Secures State-backed GBP 4.4BB Loan
--------------------------------------------------------

The Administrators of Railtrack PLC and Railtrack PLC have
secured access to GBP4.4billion of funding from a club of four
banks, the Royal Bank of Scotland plc (who will act as Agent),
Barclays Capital, Dresdner Kleinwort Wasserstein and Merrill
Lynch.  

The funding, which is backed by Government guarantee, will be
available to Railtrack PLC on commercial terms which reflect the
existence of a sovereign guarantee. Twelve banks were invited to
tender, on a competitive basis, to provide the facilities.

Approximately GBP1.9 billion has been drawn to repay loans from
the Secretary of State for Transport, Local Government and the
Regions together with interest against a total Government Loan
facility of GBP2.1 billion. These loans have been used to pay
approximately GBP870 million to trade creditors, GBP720 million
to finance creditors (including both interest and scheduled
maturities) with the balance for working capital needs.

The balance of the new facility will be applied to pay trade
creditors as they fall due, to pay interest and scheduled
principal to finance creditors and to fund the ongoing operation
of the railway network.

For further information regarding this announcement, please
contact Ian O'Doherty, Edelman Public Relations at telephone
number 020 7344 1200.

The refinancing comes after the approval from the European
Commission for state aid of up to GBP5.42 billion for the period
from October 7, 2001 to September 30, 2002.

The guaranteed funding limit of GBP4.4 billion was set by the
Secretary  of State to represent the amount necessary to keep
Railtrack PLC in business prior to a transfer.

The Secretary of State has acknowledged that the business
planning process currently underway at Railtrack PLC and any
contingencies arising could lead to a funding requirement in
excess of GBP4.4 billion. Should a further funding need arise,
the Administrators will discuss the raising of further finance
with the Secretary of State.

Gross debt of Railtrack PLC at the date of appointment of
Administrators was approximately GBP4.9 billion per the
Directors' statement of affairs. It is forecast to be
approximately GBP6.5 billion at March 31, 2002.


TELEWEST COMMUNICATIONS: Debt-for-Equity Swap Doubtful
------------------------------------------------------

Telewest Communications is likely to undergo a capital
restructuring that will see its majority ownership transferred to
banks and bondholders, says The Observer.

The new set-up has now become the only viable option for the
troubled cable TV operator, as its share price dramatically
plunged last week.  The stock price collapsed from 550p two years
ago to 14p on Friday.

But whether or not lenders and bondholders would be willing to
trade their credits for equity is an entirely different question,
says the paper.

The report says banks are increasingly nervous about the
company's future, while shareholders have almost written off
their investment.

If, however, the inevitable debt-for-equity swap materializes,
the report says it would likely feature John Malone's Liberty
Media in a leading role.  The latter owns 25% of Telewest.  

Although the company can still draw down funds of up to GBP1
billion over the next 12 months, City analysts say the firm could
face a funding gap beforehand -- especially if there is a sharp
rise in interest rates.

Just two week ago credit rating agency Moody's said that it had
lost confidence in the ability of Telewest to tackle its
borrowings.

In a statement, Moody's said that after studying Telewest's
recent full-year results it had "heightened concerns" about the
company's ability to grow into "its highly leveraged capital
structure."

Moody's doubted whether enough customers were being attracted or
if those that were being signed up were spending enough. It also
questioned the long-term prospects for the group's business and
its program operations, the report says.

Without an injection of new money from shareholders, "it now
appears increasingly likely...that a restructuring of the
company's balance sheet may be required," Moody's said.


THUS PLC: Notification of Legal & General Interests
---------------------------------------------------

THUS plc, the Glasgow-based internet service provider, has been
informed that Legal & General Investment Management Limited, as
of March 20, 2002, now holds 41,497,890 shares, representing
3.07% of Thus' share capital.

For further information regarding this announcement, please
contact Kathryn Rhinds of Investor Relations Manager at telephone
number 020 7763 3126; Mark Woolfenden of Smithfield Financial at
telephone number 020 7360 4900.

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

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

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

Copyright 2001.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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