/raid1/www/Hosts/bankrupt/TCREUR_Public/020515.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

              Wednesday, May 15, 2002, Vol. 3, No. 95


                            Headlines

                            *********

* C Z E C H   R E P U B L I C *

VITKOVICE: Ordered to Pay CZK 2.25BB Partial Debt Settlement

* F I N L A N D *

SONERA CORPORATION: Merger With Telia Shaky Due to Share Slump

* G E R M A N Y *

ADVANCED MEDIEN: Settlement in Lawsuit With Wolfgang Petersen
BANGESELLSCHAFT BERLIN: Terra Firma Ready to Pounce on Spoils
CARGOLIFTER AG: May Declare Insolvency Just Days From Now
CENIT AG: Improves Operating Result by 64%, Turn-around in 2002
COMDIRECT AG: Q1 Commissions Down 25% as 6,600 Customers Drop Out
DEUTSCHE TELEKOM: Delays Bond Sale to Await Release of Q1 Figures
DEUTSCHE TELEKOM: To Revive Sale of Cable Units Next Month
KIRCHGRUPPE: BSkyB Demands Performance on EUR1.7 BB Cash Claim
KIRCHGRUPPE: Commerzbank-led Group Bows Out From Springer Race
MOBILCOM AG: Intensifies Concentration on Mobile Business

* I R E L A N D *

DATALEX PLC: Finds Itself in Familiar Territory Again: Bottom

* I T A L Y *

ALITALIA SPA: 2002 Q1 Losses Better Than Year-Ago Figure by 82%

* P O L A N D *

ELEKTRIM SA: Grants BRE Bank Exclusive Rights Over Assets
ELEKTRIM SA: Shares Gain Nearly a Quarter on News of Debt Pact

* S W E D E N *

LM ERICSSON: Inks Deal With Triton GSM/GPRS Overlay Network

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

CABLECOM AG: NTL Places Unit on the Block as Liberty Takes Aim
SULZER MEDICA: Downsizes Staff in Oberwinterthur Facility

* U N I T E D   K I N G D O M *

BIOGLAN PHARMA: Sells Swedish Units to SkyePharma, Wilh. Sonesson
BRITISH TELECOM: Has Strong Challenger in Freeserve, NTL Tie-up
INVENSYS PLC: Sale of CompAir Business and Disposal Update
INVENSYS PLC: Declaration Regarding Recently Named Director
MARCONI PLC: Secures Contract Rail Upgrade Contract for GBP 19MM
RAILTRACK PLC: Update on Focus of Investigation on Accident
RAILTRACK PLC: Response to London Evening Standard Story
RAILTRACK PLC: Derailment at Potters Bar, Hertfordshire, U.K.
RELIANT ENERGY: Moody's Review Includes Capital Vehicle
TELEWEST COMMUNICATIONS: Telia Sells Infrastructure to Telewest


===========================
C Z E C H   R E P U B L I C
===========================


VITKOVICE: Ordered to Pay CZK 2.25BB Partial Debt Settlement
------------------------------------------------------------

A regional court in Ostrava ordered last week debt-laden Moravian
steel and engineering company Vitkovice to pay creditors CZK2.25
billion, says the Prague Business Journal.

The amount represents only 30% of the total claims of some 940
creditors, 79 of them abroad, who applied for settlement, the
report says.

"Creditors who made their claims through the revitalization
agency Revitalizacni Agentura should be paid within 15 days,
while the remainder will receive by June 20 Czech Consolidation
Agency bills of exchange with one-year maturity," the paper says.

The company's woes date back to 2000 when the company bared
losses of CZK8.836 billion.  According to the Troubled Company
Reporter-Europe, the company also suffered, during the same year,
a sharp drop in asset value from CZK20.817 billion to only
CZK9.364 billion.  At end of the year, owners' equity had totaled
(-) CZK4.897 billion.

In November last year, shareholders approved steps to cut the
struggling company's debt burden.  They slashed the company's
share capital from CZK10.62 billion to CZK132.8 million.  
Shareholders also approved a CZK1.5 billion capital hike
resulting from the issuance of 150 million new shares at CZK10
each.

A separate plan for selling Vitkovice Steel, the newly created
steel subsidiary of Vitkovice, was also approved.  The sale plan
is in line with a proposed court settlement with creditors and
will generate funds to pay creditors' claims.

Possible Vitkovice Steel buyers include Shiran, Swiss-based
Duferco, U.S.-based CMC, German steelmaker Salzgitter,
Luxembourg-based Arbed, and local steel producer Trinecke
Zelezarny.

The company had CZK15.9 billion in debts at the end of 2001.
The initial share capital was intended to allow Vitkovice to
settle two-thirds of the obligation.


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


SONERA CORPORATION: Merger With Telia Shaky Due to Share Slump
--------------------------------------------------------------

The continued drop of Telia AB's share price is undermining its
planned merger with Finland's Sonera Corporation.

According to Dow Jones Newswires, a Finnish law mandates that if
a company like Telia gains control of at least two thirds of
Sonera's shares, it must make a cash offer to shareholders who
don't accept its offer of 1.5144 Telia shares for each Sonera
share.  And in determining the fair value of the cash offer, it
must take into account the average price of Sonera's shares over
a previous 12-month period.

If the cash offer is higher, Telia must pay the difference to the
shareholders who have already accepted its shares.  This process
is known as a "top up."

Telia's shares closed Tuesday at SEK28.90, making its offer worth
about EUR4.66 per Sonera share, says the newswire.  This is well
below Sonera's 12-month average of around EUR5.40.

The report, however, notes that it is not yet certain whether
this is the comparison that matters.

"Finnish law appears to offer no firm guidance on how to put a
value on Telia's share offer.  The issue would likely be decided
in court," the newswires admits.

The report says an adverse ruling could mean offering hundreds of
millions of euros extra cash or even prompt the Swedish company
to consider scrapping the whole idea altogether.

According to Dow Jones Newswires, these are the possible options
for valuing Telia's offer:

(1) Use the price of Telia's stock when the deal was announced.
    Under this scenario, there is little risk of a top-up at
    all, since Telia was trading at nearly SEK40 at the time of
    the bid, valuing its offer at around EUR6.5 per share.  
    Sonera's 12-month average is now estimated to be slightly
    less than EUR5.4 and is expected to fall over the coming
    months, since a year ago its shares were trading at nearly
    twice their current price.

    If Sonera's shares stay at their current level and trading
    volumes are normal, its 12-month trading average is expected
    to fall to between EUR4.6 and EUR4.7 by July, when the deal
    could close, according to the current schedule, says Jari
    Jaakkola, executive vice president of investor relations at
    Sonera.

(2) Use the weighted trading average of Telia shares in the 12
    months prior to the closing of the deal. Again, here there
    seems to be little risk of a top-up, since Telia's shares
    traded well above SEK40 for most of the past year. Because of
    the pending offer, Telia shares' decline since then is being
    reflected in the downward movement of Sonera shares.

(3) Use the price of Telia's stock when the deal closes. This is
    the interpretation that could potentially be most costly to
    Telia, based on the recent poor performance of its shares.

    If the deal had closed Tuesday and the current 12-month
    average of around EUR5.40 were used, Telia would be forced in
    theory to pay as much as EUR800 million in cash to top up its
    offer. Again, though, Sonera's 12-month average is expected
    to fall in coming weeks, likely narrowing any gap.

    Telia has the right to walk away from the deal if the "top-
    up" exceeds EUR300 million, or around EUR0.27 per share,
    although many analysts believe it would proceed with the bid
    beyond that threshold. It had roughly SEK2.8 billion in cash
    and cash equivalents at the end of March, according to its
    first-quarter report.

(4) Use the weighted trading average of Telia's shares from the
    announcement of the deal to its closing. The outcome of this
    scenario is uncertain, although the risk of a large cash
    payment appears to be small.

The report says the most viable approach is for regulators to use
the trading average of Telia's shares over a 12-month period
prior to the deal's closing, just as they will to value Sonera's
shares, a person close to the deal said.

Both Telia and Sonera are confident that the combination could
still materialize and both believe it is still early to say
whether a top-up will be necessary, much less how large it might
be, says the report.


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


ADVANCED MEDIEN: Settlement in Lawsuit With Wolfgang Petersen
-------------------------------------------------------------

Advanced Medien AG http://www.advanced-medien.de,in a company  
statement, announced Tuesday that a settlement has been reached
in the lawsuit regarding mutual contract fulfillment between
Advanced Medien AG and the star director Wolfgang Petersen, which
has been underway since August 2001.

In the context of this settlement, both parties are abandoning
the suits they filed with an American civil court and are
mutually waiving their contractual claims.

For the further details of the settlement both parties maintained
strict silence.

The contracts entered into by and between Advanced Medien AG and
Red Cliff Productions LLC on April 11 and June 5, 2000 arranged
for the parties to cooperate in the development of motion picture
productions over a period of several years.

Wolfgang Petersen was responsible for the operative management of
the company and the development of film projects, including film
production.

Advanced was obliged to pay the development costs of these
projects and the administrative expenses of Red Cliff. The
settlement was negotiated by Patriot Advisors, Inc. and Akin,
Gump, Strauss, Hauer& Feld, LLP on behalf of Advanced and by
Bloom, Hergott, Diemer & Cook, LLP and Alschuler Grossman Stein &
Kahan LLP on behalf of Mr. Petersen.

"We are glad that we were able to end the lawsuit with this
settlement. We did not enter lightly into this decision," says
Otto Dauer, chairman of the management board of Advanced Medien
AG. The partners are separating amicably in friendship, and
Advanced Medien wishes Wolfgang Petersen continuing success in
his work as a producer and director.

Advanced Medien's principal activity is the joint financing and
co-production of movies, the marketing of films and the licensing
of film rights.


BANGESELLSCHAFT BERLIN: Terra Firma Ready to Pounce on Spoils
-------------------------------------------------------------

Newly established private equity firm Terra Firma, which is
raising a EUR3 billion fund, has expressed interest in taking
over parts of Bankgesellschaft Berlin, the debt-laden bank the
city of Berlin is unloading.

According to the Financial Times, the fund is not taking part in
the bid for the entire business and is preparing only for a
possible break-up of the group's assets.

Sources close to the equity group did not reveal to the Financial
Times, which part of the bank might appeal to Terra Firma.  
However, one thing is clear -- the group is prepared to pour 40%
of the fund in Germany.

The city owns 81% of Bankgesellschaft, which has so far attracted
at least four interested parties.  The known buyers are
investment banker Christopher Flowers, who recently joined forces
with Texas Pacific Group, and a consortium of German banks
involving NordLB and the DSGV savings bank association.

Terra Firma is ran by Guy Hands, an ex-Nomura executive who
handled the Japanese group's principal finance operation before
going independent in April.


CARGOLIFTER AG: May Declare Insolvency Just Days From Now
---------------------------------------------------------

German airship maker Cargolifter AG could file for insolvency in
a matter of days, not weeks as had earlier been reported, says
Handelsblatt.

Accordingly, a private sector rescue is now remote after Boeing
Inc. categorically confirmed recently that it is not about to
extend financial aid, despite signing an agreement with the
troubled firm lately.

"Boeing won't help out in this case," a spokesman told
Handelsblatt.

The American plane-maker said that it was merely examining
whether Cargolifter's "lighter-than-air" vehicles would be
suitable for commercial, defense and security use.  The
feasibility study is still several weeks from completion and
until then no concrete decision can be made regarding any
involvement in Cargolifter, the spokesman said.

The German daily disclosed that the company had already written
its 500 full-time employees requesting a one-month postponement
of salary payments. Shares lost 23% on Monday to close at
EUR1.99.

Public sector rescue, however, is similarly uncertain.  A federal
economics ministry spokesman said the department is still
awaiting important information from the company on the long-term
financing and the technical feasibility of its projects.

Although the company's woes will be taken up in the cabinet
meeting on this week, a decision on a requested loan of EUR50
million or on a federal/state government guarantee of EUR35.8
million is not expected, a spokesperson for the economics
ministry of Brandenburg, the home-state of Cargolifter, told
Handelsblatt.


CENIT AG: Improves Operating Result by 64%, Turn-around in 2002
---------------------------------------------------------------

The CENIT Group, according to its announcement Monday, as
compared to the fourth quarter 2001 performance, could improve
its results clearly in the first quarter 2002, reduce the bank
liabilities by 36% and present itself to the Stock Market as a
solid Turn Around Candidate.

The implementation of the business goals, to show a significant
increase of profitability and to reach a positive EBIT by the end
of 2002, are therefore according to plan. The positive trend
reversal in the CENIT group is particularly visible in the result
development of CENIT AG Germany.

With a sales revenue of EUR 17.7 million in Germany (2001: EUR
22.4 million) and an EBITDA of plus EUR 0.1 million (2001: EBITDA
EUR 0.1 million) the operative business has turned around to
positive again, after the 4th quarter 2001 had already shown a
result of plus EUR 0.7 million. The EBIT in Germany improved by
47% to minus EUR 0.4 million (2001: EBIT; EUR 0.7 million).

The costs could be reduced once more by EUR 1.7 million,
currently at EUR 9.9 million (2001: EUR 11.6 million).

In the 1st quarter, the cash-flow developed positively. The Group
gained EUR 2.1 million from operational activity (for 2001: -EUR
1.3 million).

The positive result is the outcome of the balanced EBITDA group
result and the optimization of the cash management. The
development of the bank liabilities is another positive aspect,
having decreased by 36% or EUR 4.8 million to an end figure of
EUR 8.6 million.

This development is influenced by the inflows from operational
activity, a careful investment practice and the diminution of the
liquid funds.

The CENIT Group reached a sales revenue of EUR 23.1 million
(2001: EUR 31.0 million). Gross profits amount to EUR 13.1
million (2001: EUR 17.8 million). The EBITDA is balanced (2001: -
EUR 0.4 million). The group EBIT lies considerably better than in
the previous year (2001: -EUR 1.7 million) and shows minus EUR
0.6 million in the first quarter 2002.

Thus, the group EBT states minus EUR 0.7 million. (2001: -EUR 1.9
million). Equity-to-assets ratio of the Group increased from 35%
to 42% in comparison to December 31, 2001. The earnings per share
(EPS) are -EUR 0.15 (for 2001: EPS: -EUR 0.48), undiluted.

Cenit AG is selling its loss-making U.S. and Canadian
subsidiaries back to their original owners as part its
restructuring and cost-cutting measures.

The planned sale of Canadian-based L&H Consultants Inc, which is  
also active in the U.S., is expected to cost Cenit around EUR 3.6  
million. Likewise, the group also plans to sell its U.K.
subsidiary to its original owners.  

Cenit AG has 885 employees worldwide.

For information contact Fabian Rau, Investor Relations, at  
telephone +49 711 78073 - 185 or fax +49 711 78073 - 485 or email  
aktie@cenit.de


COMDIRECT AG: Q1 Commissions Down 25% as 6,600 Customers Drop Out
-----------------------------------------------------------------

Comdirect AG, the online brokerage unit of Commerzbank AG,
continues to lose customer, shedding another 6,600 during the
first quarter, says Handelsblatt.

The daily says Comdirect's customers shrunk to 611,700 (down by
5,200) in Germany and to 647,200 (down by 1,400) if the foreign
operations are included in the tally.  

The broker managed, however, to report a positive development as
far as losses are concerned, which significantly dropped to
EUR1.8 million in the first quarter from EUR18.3 million a year-
ago.  Before taxes, the brokerage even booked a slight profit of
EUR0.3 million, Handelsblatt says.

The company attributed the improvement in the loss department to
its "ambitious" cost-cutting program, which led to a 45% decline
in administration costs to EUR38.9 million.

Transactions for the first quarter fell to 1.4 million from 2
million in the year-ago quarter, while net commission income
slumped more than 25% to EUR21.9 million, the company says.  Net
interest income slipped 20% to EUR16.6 million.

CEO Bernt Weber reiterates that it will be difficult to achieve
breakeven this year.  He will be replaced in June by Achim
Kassow, a former Deutsche Bank executive.


DEUTSCHE TELEKOM: Delays Bond Sale to Await Release of Q1 Figures
-----------------------------------------------------------------
    
Deutsche Telekom has delayed by another week its bond issue worth
EUR5 billion to EUR8 billion, preferring to go ahead with the
transaction only after the publication of its first quarter
results, says Reuters.

Banking observers, however, dismissed suggestions that the delay
is a postponement or worse a precursor to scrapping the deal amid
the less-than-ideal condition for said transaction.

"I don't think it's a postponement at all. I think they are very
keen to do this deal... Basically, they are looking to the Q1
results to reaffirm exactly what they are saying and confirm to
investors that they are delivering on what they said they would,"
Dresdner Kleinwort Wasserstein telecom analyst Bradley Bugg told
Reuters.

The German telecom incumbent is scheduled to release its latest
quarterly figures Wednesday next week.  Analysts say the bond
issue will shortly follow the publication.  They point out that
it is unthinkable for Deutsche Telekom to scrap the issue, as it
had already earmarked the proceeds to refinance some EUR7.5
billion of debts maturing next year.

Last week, the company admitted that it is not bound by any
particular deadline for the issue, explaining that timing is
important amid the soaring yields in the telecoms sector caused
in large part by the downgrade of U.S. long-distance telecoms
firm WorldCom to "junk" status.

The bond sale is lead managed by Deutsche Bank, JPMorgan and
Schroder Salomon Smith Barney.  


DEUTSCHE TELEKOM: To Revive Sale of Cable Units Next Month
----------------------------------------------------------

The six cable units of Deutsche Telekom, which Liberty Media
failed to annex early this year due to objections from the German
cartel office, will be put up for sale anew next month, Bloomberg
said yesterday.

Citing the Financial Times, the news outfit said several private
equity firms and financial investors have approached the German
telecom giant about the assets, which may be sold in three
separate blocks.  N.M. Rothschild & Sons Ltd. is adviser to the
sale.

Bavaria, one of the more attractive units, may fetch as much as
EUR1 billion.  But Merrill Lynch analyst Bernard Tubeileh told
the paper that the entire business could now only fetch between
EUR3 billion and EUR3.5 billion, a far cry from the EUR5.5
billion Liberty had earlier offered.

This disposal is one of the key components of Deutsche Telekom's
plan to reduce its EUR67 million debt-pile.


KIRCHGRUPPE: BSkyB Demands Performance on EUR1.7 BB Cash Claim
--------------------------------------------------------------

BSkyB may have provided the last nail on the coffin of
KirchGruppe when it demanded early this week payment of a EUR1.7
billion put option against Taurus Holdings, the umbrella holding
company of the Germany media behemoth.

According to the Independent, the remaining Kirch units that have
not yet declared insolvency do not have the money to pay the cash
claim, thus it may well be the final rites on the crumbling
empire.

The option is supposed to be exercisable in October yet, but it
is understood that KirchPayTV's insolvency filing last week
entitled the British broadcaster to make the cash call early.

It is not clear how BSkyB will seek the enforcement of the put
option amidst the sorry state of Kirch's finances.  Some have
suggested that the broadcaster may simply take over Kirch's pay-
TV business in lieu of the debt.

BSkyB admits, though, that it does not expect any substantial
return of the amount it had invested in the German group.  The
British company had recently taken a GBP1 billion write-down on
its German investments.

"If the current liquidity issues of Taurus Holding are not
adequately resolved, the group believes that it is unlikely to
receive a significant amount, if any amount, as a result of its
exercise of the put option," a BSkyB statement read.


KIRCHGRUPPE: Commerzbank-led Group Bows Out From Springer Race
--------------------------------------------------------------

Deutsche Bank secured its grip over the 40% stake in Axel
Springer, Europe's leading publisher, after Commerzbank AG failed
to convince partners to snatch the stakes on Friday, says
Handelsblatt.

According to the German daily, the refusal of Springer to lift
the transferability restrictions on the shares discouraged the
partners of Commerzbank, which included Dresdner Bank, Bayerische
Landesbank and Axel Springer's widow, Friede.

Deutsche Bank holds the stake as collateral against a EUR720
million loan extended to KirchGruppe.  The bank intends to float
the stakes just like the plan of the Commerzbank-led consortium,
says the paper.     

Any sale, however, must be cleared by the so-called Formula One
banks.  Bayerische Landesbank, JP Morgan Chase and Lehman
Brothers have a secondary right on the stake because of a EUR1.5
billion loan to KirchGruppe, which the latter used to acquire the
stakes in the motor-racing series.  They also have a call-option
that entitles them to acquire the stake from Deutsche Bank,
provided they pay back the EUR720 million loan, says the paper.

The Formula One banks are currently in talks on what to do with
the stake.  They have five days to secure the call option on the
shares, the paper adds.

Springer, for its part, is amenable to the planned floatation for
as long as this does not occur within the next two to three
years. The publisher also insists on holding on to its right to
restrict the transfer of the shares.


MOBILCOM AG: Intensifies Concentration on Mobile Business
---------------------------------------------------------

As part of its restructuring as a UMTS network operator MobilCom
is intensifying its concentration on mobile telephony.

Fixed-line and Internet activities are being bundled; excess
capacity created during the boom years 1999 and 2000 is being
corrected; and divisions lacking future potential are being cut
loose.

With this organizational restructuring, MobilCom is adapting its
strengths - sales force, flexibility and competitiveness - to the
mobile data sector.

In the first quarter of 2002, public debate on the partnership
with France Telecom impacted negatively on business operations.
For example, the launch of 01566-GPRS planned for February 2002
had to be postponed, requiring the creation of accruals to the
sum of EUR 77.5 million.

In total, special items mainly linked to the controversy with the
French partner cut profits by EUR 90.3 million. The company's
EBITDA including special items and UMTS start-up costs was Euro-
120.7 million (EUR -30.4 million without special items) compared
with EUR -34.8 million for Q1/2001. The figure for EBIT was EUR -
160.1 million
compared with EUR -68.4 million for Q1/2001.

Profit after tax was EUR -116 million compared with EUR -43.5
million for Q1/2001. Profit per share was EUR -1.77 compared with
EUR -0.67 for Q1/2001. Another reason for the current slump in
profits is the decline in network operator bonuses: In Q1/2001,
these accounted for 40 percent of turnover in mobile business,
compared with just 13% in Q1/2002.

This in turn is due to reduced market growth and the fact that
MobilCom as a UMTS network operator is becoming a serious
competitor. In the first quarter of 2002, MobilCom's total
turnover was Euro514.3 million compared with EUR 728.7 million in
Q1/ 2001. The customer base grew to 9.0 million customers
(compared to 7.3 million in Q1/2001), including 4.9 million
cellular customers.

The market share of cellular contract customers remained stable
at 13.5%, with two thirds of all cellular customers committed to
long-term contracts. In terms of contract customers, MobilCom
already occupies third place among Germany's future UMTS network
operators.


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


DATALEX PLC: Finds Itself in Familiar Territory Again: Bottom
-------------------------------------------------------------

Global technology systems provider Datalex Plc sees no end in
sight for the continuing slump of its battered stock, which
slipped again to 30 cents on the Irish Stock Exchange Friday.

The slump has now lowered the company's value to just EUR20
million, a far cry from its EUR497 million value when it first
floated at EUR7.25 a share in October 2000, says The Post.

The slump Friday follows the announcement that finance chief Liam
Booth was stepping down during the annual general meeting on May
28.

Analysts say the company is running out of options and that
management buyout or trade sale are the only viable remedies for
the company.

Last month, the company led by founder Neil Wilson attempted to
restructure the business but to no avail.  He eventually gave up
his executive position as the firm delisted from the Nasdaq. Mr.
Wilson had earlier been replaced as chief executive by Neil Beck
and now reports to him, The Post says.

Mr. Booth is not the first executive to leave the company.  Two
other executive directors, Paul Addy and James Peters, quit the
Datalex board last month, as part of Mr. Beck's plan to create a
primarily non-executive board, says the paper.

In November, the company's share also slipped to 30 cents.  The
company reported revenues of just US$5.5 million in December,
down from only US$5.7 million in the previous quarter.  The
company had EUR55 million in cash on its balance sheet at the end
of last year.


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


ALITALIA SPA: 2002 Q1 Losses Better Than Year-Ago Figure by 82%
---------------------------------------------------------------
  
Italian flag carrier Alitalia SpA bared better loss figures for
the first quarter early this week, stemming losses at just
EUR21.9 million from EUR121.8 million for the same period last
year.

According to the Financial Times, the company benefited immensely
from the emergency restructuring plan adopted after the September
11 terrorist attacks in the U.S.  That plan allowed the company
to slash 900 employees from its 24,000 workforce, which helped
offset an 11% fall in revenues to just under EUR1.1 billion.  
Lower fuel costs also helped the company soften the impact of the
global economic crunch that followed the attacks.

The company plans to raise EUR1.43 billion in a rights issue that
will see the government increase its stake from 53% to 61%.  The
European Commission is expected to scrutinize this deal but the
carrier remains confident the transaction can be structured to
circumvent European law, which forbids state aid to airlines, the
paper says.


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


ELEKTRIM SA: Grants BRE Bank Exclusive Rights Over Assets
---------------------------------------------------------
    
Troubled Polish industrial group Elektrim SA has signed an
"exclusivity" agreement with a BRE Bank-led group over the sale
of its assets, reports Reuters.

BRE Bank and Dutch-based fund Eastbridge are allegedly aiming for
the telecom asset, a 49% stake in Elektrim Telekomunikacja, a
holding that controls Eastern Europe's No.1 mobile phone group.  
The amount of the offer for the stake is not yet known, but if
it's any indication a rival group had once offered EUR450 million
in cash and debt redemption.

The exclusivity pact follows Elektrim's weekend announcement that
it had already secured a tentative approval for its debt
repayment plan from half of the holders of its nearly EUR480
million defaulted bonds.  

The group plans to pay the bonds in full by July 2005 and partly
through a syndicated loan raised by BRE Bank.  The first tranche
of the repayment scheme will be made on June 15 and will amount
EUR200 million, says Reuters.

The second payment of EUR100 million will be made on December 15,
leaving the company with about EUR189 million in outstanding,
which Elektrim can redeem at 30 days' notice.

The group also plans to issue new, restructured bonds, which will
be secured against Elektrim's stake in Telekomunikacja, in which
partner Vivendi Universal controls 51 percent.

Analysts estimate that BRE's exposure in Elektrim is about PLN120
million, incurred when the bank aggressively upped its stake in
the troubled group.  Observers, however, took the exclusivity
pact as a positive sign that the bank may yet get a good return
on its equity engagement in the ailing group.

"This is positive news.  There might be a chance for BRE to get
back what it invested, where before the chances for that were
very slim," banking analyst with the brokerage unit of Pekao
Artur Szeski told Reuters.

BRE is a medium-sized lender with a market cap of US$675 million.  
It is known for bold and largely successful investment plan.

Elektrim's woes worsened in December last year when it defaulted
on its bonds, causing its share price to slip to nine-year lows,
valuing the company as little as US$70 million compared with
US$1.5 billion at one time.  Its court-ordered debt composition
talks with creditors collapsed last month, but it is expected to
have gained valuable time with the tentative approval of the
repayment plan.


ELEKTRIM SA: Shares Gain Nearly a Quarter on News of Debt Pact
--------------------------------------------------------------

Elektrim's share fattened 24% Monday following the announcement
that it had gotten approval from 50% of bondholders over a
repayment plan that will erase more EUR400 million of debts by
2005.

Shares touched the PLN4.22 marker, the highest level since
November last year, says Poland AM.  Share turnover value, also
improved significantly at PLN27.2 million, another indicator of
Elektrim's popularity, says the report.

Still, analysts remain cautious.

"The new agreement does not ensure... that the company will
manage to avoid bankruptcy," Wlodzimierz Giller of Erste
Securities told Poland AM.


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


LM ERICSSON: Inks Deal With Triton GSM/GPRS Overlay Network
-----------------------------------------------------------

Triton PCS, a member of the AT&T Wireless Network, has selected
Ericsson to supply and deploy a majority of the wireless access
infrastructure for its Global System for Mobile
Communications/General Packet Radio Service (GSM/GPRS) overlay
network throughout its footprint.

In addition to the equipment, Ericsson will provide initial
network design and installation, engineering, testing and RF
design and optimization services.

"Triton PCS operates one of the most extensive digital wireless
networks in the Southeastern United States and we are very
pleased to be providing them with superior technical competence
and capability to deliver high-quality systems and services,"
said Angel Ruiz, President, Ericsson Inc.

"Ericsson has shown a firm commitment to working with us to
launch our GSM/GPRS overlay network," said Triton PCS Senior Vice
President of Technology Glen Robinson. "Ericsson's vision and its
ability to provide tailor-made solutions and services will be a
great benefit to us as we move toward next-generation services."

Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication
companies in the world.

Triton PCS, based in Berwyn, Pennsylvania, is a leading provider
of digital wireless phone service in the Southeast licensed to
operate in a contiguous area covering approximately 13.5 million
people in Virginia, North Carolina, South Carolina, northern
Georgia, northeastern Tennessee and southeastern Kentucky. The
company markets its services under the brand SunCom, a member of
the AT&T Wireless Network.

Contact Information:
Ericsson Inc. Corporate Communications
Kathy Egan
Telephone: 212-685-4030
Email: pressrelations@ericsson.com
or
Ericsson Inc. Investor Relations
Glenn Sapadin
Telephone: 212-685-4030
Email: glenn.sapadin@ericsson.com

Telefonaktiebolaget LM Ericsson
126 25 Stockholm
Sweden
Telephone: +46 8 719 3444


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


CABLECOM AG: NTL Places Unit on the Block as Liberty Takes Aim
--------------------------------------------------------------

Under bankruptcy-protection NTL Incorporated is putting up for
sale troubled Swiss unit Cablecom, holding up to its bargain with
creditor banks, which did a u-turn and approve the group's
US$10.6 billion debt-for-equity restructuring last week.

According to banking sources of Reuters, NTL will appoint shortly
an adviser for the sale, which has already attracted Liberty
Media, the investment tentacles of cable tycoon John Malone.

"NTL has agreed to hire an adviser to initiate [Cablecom's] sale
process, and there's an offer from Liberty on the table," a
senior banker told Reuters.  The source, however, clarified that
Liberty's offer has yet to take any form.

The sale is part of the deal with banks in order for the debt
restructuring of the group to go unhindered.  Creditor banks,
particularly those exposed to Cablecom, had earlier threatened to
derail the process if NTL does not increase the 250 basis points
interest margin on Cablecom's debt in order to reflect its
deteriorating creditworthiness.  They also demanded additional
credit support via a cash injection or guarantees from NTL's more
robust U.K. business, the news outfit says.

Last week, however, the banks reversed their stance and allowed
the plan to push through, provided NTL put the Swiss unit on the
block.  

It is understood that banks won't accept an offer less than the
CHF4.1 billion loan they've already extended to the unit.  This
is apart from the CHF200 million they had also agreed to provide
Cablecom to ensure continued operations until NTL exits from
bankruptcy later this year.

If no takers are found, the banks may take up its option and
secure Cablecom's assets and run the business themselves, says
Reuters.

"Banks can still take security and become Cablecom's owners, so
taking a haircut may not make much sense.  It depends what their
pain threshold is," a banker told Reuters.

Cablecom is Switzerland's largest cable operator, which makes it
able to meet interest payments.  Bankers, however, say it will
take up to 10 years before it can repay loan principals.

In mid-April, Moody's downgraded Cablecom's loan from Baa3 to
Caa2, citing concerns about its ability to grow cash flow to a
level adequate to service its debt.


SULZER MEDICA: Downsizes Staff in Oberwinterthur Facility
---------------------------------------------------------

Sulzer Orthopedics Europe, the Swiss-based subsidiary of Sulzer
Medica, plans to launch a program aimed at optimizing efficiency,
thereby providing the company with a solid platform on which to
expand its already strong position in the future.

As of June 1, 2002 the company will begin shifting staff members
to the Oberwinterthur production location and, to a lesser
extent, to the new Sulzer Medica corporate headquarters in
Zurich. The company will abandon the Grabenstrasse administration
facility in Baar, Switzerland while the logistics unit will
remain in Baar.

This restructuring program, to be completed by the first quarter
of 2003, will include all of the company's 655 staff members.
Service units, including bookkeeping, human resources, transfer
pricing and information technology, will be managed by Sulzer
Medica Management in Zurich while sports medicine and other units
carrying out activities on a Group-wide basis will be
subordinated to the Group. Marketing, sales support, product
management, research and development and controlling units will
move to the company's Oberwinterthur location.

The optimization program envisions a reduction of some 100
positions in an initial step, followed by a further 20 positions
in a second step. Effective solutions are being created and
evaluated for those positions that cannot be reduced through
natural fluctuation. While the prospect of redundancies cannot be
ruled out, a separation plan is also being worked out to make
these as painless and socially acceptable as possible.

Sulzer Orthopedics Europe expects this efficiency and
optimization program to generate cost savings of CHF 15 million
per year, including some CHF 8-to-10 million in 2002, not
including supplementary synergic potential.

Richard Fritschi, President of Sulzer Orthopedics Europe, stated:
"In spite of the successes we have enjoyed in our business, we
must reduce our costs and operate with greater efficiency. This
will ensure that our first-class products also generate a first-
class financial performance."

Sulzer Medica CEO, Dr. Stephan Rietiker also underscored the
necessity of pursuing cost-conscious operations within the
company's subsidiaries: "We will promote and support an attitude
of rigorous cost-consciousness and worldwide quality assurance in
all of our business units. We want to enhance our earnings
potential, increasing investments in our products, our markets
and in our customers. In carrying out this program, Sulzer
Orthopedics Europe's front-line activities will not be affected
and the program will in no way influence the company's ability to
supply European customers with the top-quality orthopedics
products that they have grown accustomed to using."

Sulzer Medica's subsidiary companies develop, produce, and
distribute medical implants and biological materials for
cardiovascular and orthopedic markets worldwide. The product
array includes artificial joints, dental implants, spinal
implants and instrumentation, trauma products, heart valves,
synthetic blood vessels and stents for vascular and non-vascular
obstructions. (Swiss Stock Market symbol: SMEN, New York Stock
Exchange symbol: SM).

Media inquiries:
Sulzer Medica Corp. Communications Beatrice Tschanz
Mobile +41 (0)79 407 08 78
Telephone: +41 (0)1 306 96 46
Fax: +41 (0)1 306 96 51
E-Mail: press-relations@sulzermedica.com

Andy Bantel
Natel +41 (0)79 231 56 62
Telephone: +41 (0)1 306 96 53
Fax +41 (0)1 306 96 51
E-Mail: press-relations@sulzermedica.com.

Investor Relations:
Anja Stubenrauch
Telephone +41 (0)1 306 98 25
Fax +41 (0)1 306 98 31
E-Mail: investor-relations@sulzermedica.com


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


BIOGLAN PHARMA: Sells Swedish Units to SkyePharma, Wilh. Sonesson
-----------------------------------------------------------------

London-based bioresearch firm SkyePharma Plc is now the owner of
the drug delivery business of Swedish unit Bioglan AB.  The buyer
paid GBP2.8 million for the unit and assumed GBP1.1 million of
debts, says The Deal.

In an unrelated move, Bioglan's administrators also shipped
Bioglan AB, minus the delivery unit, to Wilh. Sonesson, a Swedish
healthcare company, the report adds.  Financial details of this
deal were not disclose.

SkyePharma Plc, on the other hand, announced Monday it is selling
the European marketing rights to its Solaraze skin care drug to
Shire Pharmaceuticals Group Plc.  This drug had been licensed in
Europe to Bioglan Pharma Plc.  

Shire Pharmaceuticals is paying GBP15 million (US$22 million) for
the marketing rights.  It is unclear yet whether Bioglan will get
part of this money.  Solaraze is a topical therapy for actinic
keratosis, a pre-cancerous skin condition that may result from
excessive sun exposure.

Bioglan Pharma Plc filed for bankruptcy on February 21.


BRITISH TELECOM: Has Strong Challenger in Freeserve, NTL Tie-up
---------------------------------------------------------------

Competition is heating up in the U.K.'s broadband Internet
market, as rivals of British Telecom continue to find ways to end
its hegemony in the segment.

Freeserve announced Monday that it had hooked up with NTL
Incorporated, the U.K.'s biggest cable network operator and which
also has 200,000 broadband customers.

"This agreement gives Freeserve unrivalled options for the
distribution and availability of Freeserve Broadband. Consumers
in NTL's broadband cable franchises are now free to choose
Freeserve Broadband as part of bundles with cable telephony and
TV packages. Plus, we now have a way of capturing existing
Freeserve customers in NTL broadband areas with our own fast-
speed cable offer," Freeserve CEO John Pluthero told the
Independent.

Under the terms of the hookup, Freeserve will manage the sale and
delivery of the NTL broadband equipment in high street stores
such as Dixons.  It will also provide both billing and technical
support to customers of the Freeserve Broadband cable service,
says the paper.

The Freeserve Broadband product will be made available over NTL's
lines later this year.  The price tag for the service has yet to
be pegged.

Both companies hope the tie-up will attract consumers in NTL
areas away from British Telecom, which recently unveiled an
aggressive pricing plan for the service in a bid to hold on to
its customers.  Newly appointed British Telecom CEO Ben Verwaayen
had also recently singled out the broadband arm as the next big-
earner for the company.


INVENSYS PLC: Sale of CompAir Business and Disposal Update
----------------------------------------------------------

Invensys plc announces it has agreed to sell its CompAir business
to Funds advised by Alchemy Partners, the UK based private equity
firm, for a nominal consideration.

Alchemy will be injecting new funds to restructure the business
and Invensys will retain an 18% shareholding.

CompAir produces air and gas compression systems and has net
assets of GBP61 million. In the year ended March 31, 2002* the
business generated sales of GBP205 million and made an operating
loss pre-restructuring of GBP12 million. Restructuring costs in
the period were GBP7 million. Goodwill previously written off to
reserves in respect of compare amounts to approximately GBP21
million.

This disposal is subject to EU regulatory approval and is
expected to complete by the end of June.

In addition to the Energy Storage and Flow Control disposals
previously announced, Invensys has completed a number of other
disposals since September 2001, bringing total proceeds to
approximately GBP750 million (including approximately GBP70
million non-cash). The most significant of the other disposals
were: Australian Transmissions (GBP33 million), Brook Crompton
Industrial HP Division (GBP18 million), Crompton Instruments
(GBP17 million), Brook Crompton Fractional HP Division (GBP11
million), Eberle Relays (GBP6 million) and Eurotherm Gauging
(GBP2 million).

In addition to the completed disposals, conditional contracts
have been exchanged for the sale of Alemite (GBP23 million) and
BAE Automated Systems (GBP3 million).

* unaudited results

Contact Information:

Victoria
Scarth / Jane Hurley
Telephone: +44 (0)20 7821 3712

Invensys plc
Simon Holberton/Ben
Brewerton
Telephone: +44 (0)20 7404 5959
Brunswick


INVENSYS PLC: Declaration Regarding Recently Named Director
-----------------------------------------------------------

With reference to the appointment as a director of Invensys plc
http://www.invensys.com/of Mr Paolo Scaroni, announced on May 1,  
2002, Invensys plc confirms the following information required
under Paragraph 16.4 of the Listing Rules:

1. Mr Scaroni was a director of Burmah Castrol plc from July 24,
1998 to July 10, 2000 and is currently a director of BAE Systems
plc and Pilkington plc; and

2. there are no details to be disclosed in respect of Mr Scaroni
under Paragraph 16.4(b) of the Listing Rules.

Invensys plc is an international production technology and energy
management group which specialize in helping companies to improve
efficiency, performance and profitability. Invensys is
headquartered in London, England.

The group's Production Management businesses work closely with
customers in order to drive up performance of their production
assets and maximize the return on investments in product
technologies. The division includes Foxboro, Wonderware,
Triconex, APV, Eurotherm and Baan and it addresses the oil, gas
and chemicals; food beverage and personal healthcare; and
discrete and hybrid manufacturing sectors.

The company's Energy Management businesses actively work with
clients involved in both the supply and consumption of energy,
developing systems using innovative technologies that improve the
reliability and security of power supplies. The division includes
Energy Solutions, Metering Systems, Appliance, Home and Climate
Controls and Power Systems and focuses on markets connected with
power and energy infrastructure for industrial, commercial and
residential buildings.

Name of contact and telephone number for queries: Victoria
Scarth, Senior Vice President, Corporate Marketing &
Communications 020 7821 3712.

Name of Company official responsible for making notification:
Anna Holland, Assistant Secretary.

Contact Information:
Duncan Bonfield
Invensys plc  
Tel: +44 (0)20 7821 3712
Fax: +44 (0)20 7821 3709

Simon Holberton
Brunswick
Tel: +44 (0)20 7404 5959
Fax: +44 (0)20 7831 2823


MARCONI PLC: Secures Contract Rail Upgrade Contract for GBP 19MM
----------------------------------------------------------------

Marconi http://www.marconi.comhas secured a three-year contract  
extension to provide maintenance support services for an advanced
railway communications network in the U.K., the company announced
Friday.

The GBP19 million agreement extends Marconi's Transportation
division's relationship with Railtrack and ALSTOM, the alliance
partners in the multi-billion pound upgrade of the West Coast
Main Line (WCML).

The alliance partners previously awarded Marconi a GBP75 million
contract in 2000 to design and build the entire communications
network for the upgraded WCML.

Marconi Transportation, a division of the Company's Core Network
Services business, has completed around 40% of the value of the
original contract to date with the remaining 60% scheduled over
the next three years.

Commenting on the decision to extend the contract, Steve Harris,
Director of Marconi Transportation, said: "This confirms
Marconi's ongoing commitment and investment in the transportation
sector."

The WCML upgrade will enable Virgin's new high-speed trains to
reach enhanced permissible line speeds of up to 125 mph on the
London-Glasgow route. Its new communication network will play a
crucial role in this. The network will carry data delivering
advance warning of signal settings to the driver as well as
updates on train positions for the train's control system.

The network will consist of a Marconi Synchronous Digital
Hierarchy (SDH) optical core and a radio transmission system -
Global System for Mobile communications - Railways (GSM-R) - to
carry data to trains. When commissioned, the WCML will have the
first fully commercial signalling application of GSM-R in Europe.

Peter Felton, Business Development Director, Marconi
Transportation, said: "This project is a further example of
Marconi's fast-growing presence in the provision of support,
maintenance and network operation services. It is vitally
important that the WCML's communication network is kept in prime
operating condition and we look forward to delivering this."

Marconi Transportation is an integrated communications business
with over 30 years of transportation experience. Its professional
staff is currently delivering a number of high profile
communications projects that continue to set standards in the
Rail, Road and Air industries.

Marconi plc is a global telecommunications equipment and
solutions company headquartered in London. The company's core
business is the provision of innovative and reliable optical
networks, broadband routing and switching and broadband access
technologies and services.

The company's aim is to help fixed and mobile telecommunications
operators worldwide reduce costs and increase revenues.

The company's customer base includes many of the world's largest
telecommunications operators. The company is listed on both the
London Stock Exchange and NASDAQ under the symbol MONI.

Contact Information:

One Burton Street
London W1J 6AQ  
United Kingdom
Telephone: +44 020 7493 8484


RAILTRACK PLC: Update on Focus of Investigation on Accident
-----------------------------------------------------------

Railtrack said Tuesday that the investigation into the set of
points just prior to Potters Bar station shows significant damage
and leads to a likely conclusion that there was a fracture in one
of the supports (front stretcher bar) as the train passed over
them which caused the points to move and derail the train.

How this came about is being investigated but initial evidence
suggests that nuts that held two other supports in place were
detached from the points, which resulted in the front stretcher
bar bearing all the stresses and finally breaking under the
pressure.

Why the nuts were detached is not known. All inspection reports
show that as recently as Thursday May 9, during the day, there
were no reported defects.

Railtrack Chief Executive John Armitt said:

"This has been a terrible accident and one for which the industry
is truly sorry. We are unclear why nuts which were integral parts
of the points were detached and the investigation will look into
this in great detail. We will not rest until we have exhausted
the investigation, which is proceeding in co-operation with the
British Transport Police and the HSE.

"We have immediately instructed that other points across the
network be checked and so far no similar problem has been found.
We will not, at this juncture, be imposing speed restrictions
across the network because of this accident. However, as we find
out more we will be prudent and keep our safety responsibilities
to the fore in any decision.

"Obviously, people will want to know why this happened and what
will be done. There may even be questions as to whether people
had taken their eye off the ball with all that is going on in the
industry. I can only say that in my six months here, I have seen
nothing but a determination and an absolute commitment to running
a safe railway. This accident is a savage blow to us all."


RAILTRACK PLC: Response to London Evening Standard Story
--------------------------------------------------------

Railtrack made it clear Monday that the condition of the rail was
not an issue in the Potters Bar accident and the Evening
Standard's headline is wholly inaccurate.

Gauge corner cracking (GCC) was picked up at the site and a speed
restriction imposed. The GCC was removed by rail grinding at the
end of last year and the speed restriction removed.

Gauge corner cracking is not considered a factor in the
investigation into the causes of this accident.

Railtrack PLC, currently in railway administration, owns and
maintains tracks, signals, tunnels, bridges, viaducts, level
crossings and stations of Britain's railway network.

The group provides access to the tracks and stations for all
passenger and freight trains, timetable their movements and
operate the signalling as they move on the network.

Chief customers of the rail operator includes the TOCs (Train
Operating Companies) and FOCs (Freight Operating Companies) who
run train services over Railtrack's network.

Contact Information:

Railtrack PLC
Railtrack House
Euston Square
London
NW1 2EE
DX 133075
Euston

Telephone: 020 7557 8000
Fax: 020 7557 9000


RAILTRACK PLC: Derailment at Potters Bar, Hertfordshire, U.K.
-------------------------------------------------------------

Following the tragic accident Friday when a high-speed train
travelling from King's Cross to Norfolk derailed at Potters Bar,
Railtrack's Chief Executive, John Armitt expressed his regret and
said he would ensure that there was a full investigation into the
cause.

John Armitt said:

"As an industry we are deeply sorry for the tragedy at Potters
Bar. Our thoughts are with the relatives and friends of those who
have died and those who have been injured in this tragic
accident."

The 12.45 West Anglia Great Northern (WAGN) train travelling from
King's Cross to King's Lynn derailed outside Potters Bar station
at 12.55. The two last carriages of the four-carriage train
derailed, with the last carriage derailing fully and hitting the
station platform.

John Armitt added: "We are liasing with Family Liaison Officers
from Hertfordshire Police and Hertfordshire County Council Social
Services to assist the bereaved, injured and their families.

"We will not rest until we find the cause of this accident and
learn from this. Today has been a truly dreadful day for the
railway industry."


RELIANT ENERGY: Moody's Review Includes Capital Vehicle
-------------------------------------------------------

U.K.-based Reliant Energy Capital (Europe), Inc. shared the
burden of Moody's decision recently to put on review for possible
downgrade the Baa3 senior unsecured issuer rating and Prime-3
commercial paper rating of Reliant Resources Inc.

The British unit has an unsecured bank credit facility in foreign
currency, according to data at Moody's Web site.  The site did
not disclose the amount of the credit line.  The unit's Baa3
issuer rating assigned and Reliant Resources' Baa3 bank loan
ratings are similarly under review.

The ratings not affected by the review are the Baa3 senior
secured rating assigned to Reliant Energy Mid-Atlantic, the A3
issuer rating assigned to Reliant Benelux, and the Baa1 senior
unsecured rating assigned to Reliant Energy, Inc. (REI) the
company which owns 80% of RRI.  

The review on Reliant Resources, an energy firm based in Houston,
Texas, is Moody's reaction to the company's decision to cancel an
impending US$500 million bond deal ostensibly to review the
financial or other implications of certain power trades.

"The trades under question involve the simultaneous purchase and
sale of power with the same counterparty at the same price. While
the mirror trades likely resulted in negligible financial impact,
they appear to have been motivated to achieve higher volumes. RRI
discontinued the practice late last year," Moody's said.

The ratings noted, though, the steps management has so far
initiated to curtail this practice in the future.  These steps
include the revision of mark-to-market trading activities, which
will significantly affect the projected total EBIT.

"As management executes the revised business model, it will
revise projections, risk measures such as value at risk, and
liquidity needs, all of which are germane to Moody's ability to
assign bond ratings," the ratings agency said in justifying its
move.  

In addition to the revised business model, Moody's also held as
reasons for the review the impact on RRI liquidity of the bond
deal cancellation, revised financial projections including any
offsets to reduced EBIT, the impact of any SEC review, the FERC
probe into possible manipulation of power markets in California,
progress toward the impending separation of RRI from REI, and
other issues.

The review affects approximately US$9 billion of securities.

For more information, contact:

New York
John Diaz
Managing Director
Corporate Finance
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


New York
A. Tucker Hackett
VP - Senior Credit Officer
Corporate Finance
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


TELEWEST COMMUNICATIONS: Telia Sells Infrastructure to Telewest
---------------------------------------------------------------

Telia International Carrier has announced through a company
statement Monday the sale of 48 fibres to Telewest
Communications, the broadband communications and media group.

The infrastructure is on the eastern U.K. leg of Telia IC's
Viking network, which was recently developed through the
acquisition of the assets of 360 Networks in February.

The deal is the first major sale on the newly acquired network
and demonstrates how quickly Telia IC is beginning to see a
return on its investment, initially through fibre sales. Telewest
will utilize the fibre to extend its broadband network
capabilities in the U.K.

"Telia International Carrier recognises dark fibre is still an
active market," said Erik Heilborn, President of Telia IC. For
companies looking to build particular types of customer solution,
or to develop a network in terms of expansion or increasing
redundancy, buying fibre is far more cost-effective than digging
up roads and laying down new infrastructure in the ground.

"This fibre is helping us to further increase Telewest's delivery
of broadband services across the U.K.," said Matthew O'Connor,
Director Telewest's Carrier Services division: "The speed of
deployment was impressive and the service provided by Telia over
the course of our relationship has been excellent."

Further enhancing the Telia Network is the acquisition from
Telewest of three pairs of fibre between Leicester and
Birmingham, completing a figure of eight topography across the
U.K.

Telia's wholly owned subsidiary, Telia International Carrier,
provides IP, Capacity, Voice, Infrastructure services and carrier
neutral colocation solutions. Today, the company is one of the
leading European carriers of transatlantic IP traffic to the
U.S.A. Its wholly owned multi-fibre optic network -- the Viking
Network -- provides high capacity bandwidth and offers end-to-end
connectivity round the world.

The network is a investment-intensive venture expanding Telia
International Carrier throughout Scandinavia, Europe and the
U.S.A. The infrastructure in Europe is designed as a multi-duct
network connecting all significant cities with communication,
supporting IP, Voice and Data.

The network covers approximately 40,000 route kilometers
throughout Europe and the U.S., connecting 50 major cities
through 120 points of presence.

Telia is the Nordic leader in telecommunications. Over the past
year, the company have streamlined the Group, focusing our core
businesses making the company more flexible.

The group's core businesses are: Mobile communications, Internet
services, International carrier operations and Fixed network
operations.

Telia is listed on Stockholmsborsen. Sales Jan- Mar 2002 totaled
MSEK 13,900 (13,592) and the number of employees was 16,804
(29,936). Sales 2001 totaled MSEK 57,196 and the number of
employees was 17,149.

For further information, contact: Mark Vadasz, PR Director,Telia
International Carrier, Phone: +46 8 713 58 30 e-mail:
mark.vadasz@teliacarrier.com.

                                    ***********

        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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  

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

The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


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