/raid1/www/Hosts/bankrupt/TCREUR_Public/020710.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, July 10, 2002, Vol. 3, No. 135


                              Headlines

* F I N L A N D *

SONERA CORPORATION: Appeal Against Decision Accepted by SAC

* F R A N C E *

ALCATEL: Will Supply Key Infrastructure for Bulldog's Network
FRANCE TELECOM: Fitch Lowers Long-term Rating to BBB-
VIVENDI UNIVERSAL: Execs Try to Get EUR 1.02BB Deal From Banks
VIVENDI UNIVERSAL: Confirms Active Talks With Main Credit Banks
VIVENDI UNIVERSAL: Will Cut Stake in Vivendi Environment

* G E R M A N Y *

BABCOCK BORSIG: Engineering Group's Rescue Talks Break Down
CARGOLIFTER: Share Slips to 5.15% as Rescue Deals Collapse
KIRCHGRUPPE: Creditors Inherit 75% Shares in F1 Stake
INTERSHOP COMMUNICATIONS: Appoints New President for EMEA
RTV FAMILY: Prematurely Terminates Deal With Nelvana
ELAN CORPORATION: Announces Leadership Changes

* I T A L Y *

ALITALIA: Italian State Reduces Stake in Alitalia by 30%

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

KPNQWEST NV: Telia Will Buy French, Italian Assets of KPNQwest

* S P A I N *

REPSOL YPF: Repsol Not Interested in Selling YPF to Petrobas
REPSOL YPF: Share Rises After Announcement of Debt Reduction

* S W E D E N *

LM ERICSSON: Signs Contract With Chinese TCL Mobile
LM ERICSSON: Files Amendment to F-3 Statement With SEC

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

GRETAG IMAGING: Photo Finishing Says Liquidity Is Under Control

* U N I T E D   K I N G D O M *

ANKER AUTOMATION: Receivers Sell Machine Manufacturing Business
COOKSON GRP: Shares Plummet as Group Calms Fears on Finances  
JOHN LAING: Notification of Major Interests in Shares
LEVI STRAUSS: Expects Added USD25 MM in Restructuring Expenses
METTONI GROUP: Appoints Ernst & Young Administrative Receivers
PACE MICRO: Company Profile
STENOAK ASSOCSER: Banks Appoint Administrative Receiver
STENOAK ASSOCIATED: Company Profile
WORLDCOM, INC: Bondholders Mull Over Debt Swap to Save Company
WORLDCOM, INC: CEO, CFO Exercise 5th Amendment in Probe
WORLDCOM, INC: Files Revised Statement With SEC


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F I N L A N D
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SONERA CORPORATION: Appeal Against Decision Accepted by SAC
-----------------------------------------------------------
Sonera Corporation -- www.sonera.com -- on Monday received the
Supreme Administrative Court's decision in the appeal filed on
January 21, 2002.

Sonera had appealed the decision of the Competition Council dated
December 20, 2001, prohibiting the transaction between Sonera and
Loimaan Seudun Puhelin Oy (LSP) in which Sonera bought 16.7% of
the LSP shares in a directed issued.

The Competition Council ordered that the deal should be halted.
On February 14, 2002, the Supreme Administrative Court
stayed the enforcement of the Competition Council's LSP decision
for the duration of the proceedings in the Supreme Administrative
Court.

The Finnish Competition Authority and LSP also appealed the
Competition Council's decision to the Supreme Administrative
Court.

In the July 4, 2002 announcement the Supreme Administrative Court
stated: "Lannen Puhelin Oy, Salon Seudun Puhelin Oy, Suomen 2G
Oy and DNA Finland Oy did not have the right to request, by appealing
from the decision of the Finnish Competition Authority on the monitoring
of acquisitions to the Competition Council, that the Competition Council
should prohibit the acquisition."

In the substantiation, the Supreme Administrative Court stated
that the Act on Competition Restrictions does not stipulate that
competitors to the parties of an acquisition would have the right
to submit a proposal to the Competition Council to the effect
that the acquisition should be prohibited.

The effects on their position that the competitors mentioned were
caused by an acquisition that they could not directly subject to
evaluation in the administrative juridical procedure.

"We are happy with the decision and shall cooperate with the
Finnish Competition Authority to meet the commitments specified
in the Competition Council's decision," says Sonera's Deputy CEO
and COO Aimo Eloholma.

Sonera will start taking the measures required by the Finnish
Competition Authority's decision.

Sonera's current holding in Loimaan Seudun Puhelin Oy is 29.1%
(including the 16.7% considered by the Supreme Administrative
Court), and so far Sonera's total investments in LSP shares have
been about EUR 28.7 million.

Sonera is a provider of mobile and advanced telecommunications
services. Sonera is growing as an operator and as a provider of
transaction and content services in Finland and in selected
international markets.

The company also offers advanced data solutions to businesses,
and fixed network voice services in Finland and neighboring
markets. In 2001, Sonera's revenues totaled EUR 2.2 billion,and
profit before extraordinary items and taxes was EUR 0.45 billion.
Sonera employs about 9,000 people.

Contact Information:

Sonera Corporation
Aimo Eloholma
Deputy CEO and COO

Jari Jaakkola
Investor Relations
Executive Vice President

Telephone: +358 400 507599
Email:aimo.eloholma@sonera.com


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F R A N C E
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ALCATEL: Will Supply Key Infrastructure for Bulldog's Network
-------------------------------------------------------------
Broadband services provider Bulldog Communications announced
Monday it has entered into a commercial agreement with Alcatel to
provide Bulldog with digital subscriber line (DSL) and network
infrastructure equipment.

Bulldog will offer both asymmetric and symmetric based services
to business customers in the South East of England.

Alcatel dominates the market for DSL equipment, with three times
the market share of its nearest competitor and over 17 million
DSL lines shipped to date. Alcatel will supply equipment
including the Alcatel 7300 Advanced Services Access Manager
(ASAM), the world's most widely deployed broadband access
platform, in preparation for Bulldog's commercial service launch
in late 2002.

Additionally, Alcatel will supply Bulldog with the industry-
leading Alcatel 7670 Routing Switch Platform, a multiprotocol
multiservice core that will aggregate the broadband traffic, and
the Alcatel 5620 Network Manager, which manages access through
core. Alcatel has also entered into a support agreement for the
network.

"From a technical and operational point of view, Alcatel is the
partner of choice," said Peter Hall, Chief Operating Officer for
Bulldog. "Alcatel is recognized across the industry as the
broadband leader, with a proven track record for successful
implementations with the world's largest service providers.

With Alcatel's high quality and scalability, Bulldog can ensure
consistent quality of service for new customers, keeping
operational costs down while steadily growing our business."

Graham Sargood, Bulldog's director of Networks and Engineering,
added: "Alcatel's global experience, extensive product and
service offerings and local resources strengthen Bulldog's
ability to compete with the most effective, efficient DSL
network."

"Alcatel's extensive investment in research and development and
our close participation and contribution to the standards bodies
give Bulldog access to leading edge technology," said Michel
Rahier, President of Alcatel's broadband networking activities.
"Bulldog is an exciting company that is well positioned for
future success in the UK broadband market. We are delighted to be
supplying the company with its network infrastructure."

Bulldog is a broadband services provider and enabler of DSL-based
broadband solutions. Founded in 2000, Bulldog has commercial
agreements with ISP's, integrated communications providers, cable
companies and utility companies wishing to offer broadband
enabled services to their clients.

Alcatel -- http://www.alcatel.com-- designs, develops and builds  
innovative and competitive communications networks, enabling
carriers, service providers and enterprises to deliver any type
of content, such as voice, data and multimedia, to any type of
consumer, anywhere in the world.

With sales of EUR 25 billion in 2001 and 99,000 employees,
Alcatel operates in more than 130 countries.


FRANCE TELECOM: Fitch Lowers Long-term Rating to BBB-
-----------------------------------------------------
France Telecom's long-term rating of BBB+ and short-term rating
of F2 was downgraded by credit rating agency Fitch to BBB- and F3
respectively. The rating was also placed under negative
implications, a report from Les Echos and Financial Times said.

The report said that Fitch's decision to lower the rating was
based on the company's "reduced financial flexibility, slower
than anticipated debt reduction and concerns about its cash
position, particularly in 2003 and 2004, when its has to pay back
substantial debt."

In addition, Fitch said rating has not been lowered sooner in the
anticipation of a French government's backing.

Despite of the downgrade, the shares of the French telecom
company rose 17.62% on Friday.


VIVENDI UNIVERSAL: Execs Try to Get EUR 1.02BB Deal From Banks
--------------------------------------------------------------
Executives of indebted French media conglomerate Vivendi
Universal are trying to close a deal worth EUR1.02 billion with
creditor banks in an attempt to solve the group's short-term
liquidity woes, news from the Financial Times said.  

According to the daily, the company is expecting to close the
agreement as soon as possible. It did not outline the size or
duration of the rescue package but the funding is said to be a
short-term deal that would be substituted with another facility.  

Bankers have disclosed that the negotiations sometimes went
through a rough ride with non-French lenders taking a tougher
line than the other more exposed French banks, the daily said.

The paper also reported that the company is also begging some
credit rating agencies such as Standard & Poor's to grant the
company a reprieve from the series of debt downgrades it has
received in the past days. The downgrades, according to Vivendi
might exacerbate the company's worsening short-term debt status.

The company has a total net debt of EUR19 billion. It currently
faces a possible debt-default with EUR1.8 billion debt repayments
due this month. But the company said this could be offset by a
EUR2.4 billion of cash and some unused credit lines, the paper
said.

But due to current downgrades of the company's credit ratings, a
EUR3.8 billion due to be rolled this month may be affected.

Moreover, the Vivendi's creditor banks, which include BNP
Paribas, Societe Generale and Deutsche Bank, wanted to pacify
fears on the company's creditworthiness. They have insisted that
the company should provide a more in depth strategic plan and
should commit to the sale of its assets, the Independent
reported.


VIVENDI UNIVERSAL: Confirms Active Talks With Main Credit Banks
---------------------------------------------------------------
Vivendi Universal confirmed through a statement to the press
Monday that it is in active negotiations with its main credit
banks to address the short term liquidity concerns disclosed
after the July 3, 2002 board meeting.

The company expects to conclude an agreement very shortly.

Investor Relations
Paris
Laura Martin
Telephone: +33 (1).71.71.1084 or 917.378.5705
Laurence Daniel
Telephone: +33 (1).71.71.1233

New York
Eileen McLaughlin
Telephone: +(1) 212.572.8961


VIVENDI UNIVERSAL: Will Cut Stake in Vivendi Environment
--------------------------------------------------------
The Board of Directors of Vivendi Universal and the Supervisory
Board of Vivendi Environnement, which met last month, validated a
plan to reduce Vivendi Universal's stake in Vivendi Environnement
under appropriate terms and conditions.

The Board of Directors of Vivendi Universal unanimously
authorized the company to reduce to slightly over 40% its stake
in Vivendi Environnement.

The transaction will be completed when market conditions are
appropriate and as soon as practicable.

The Vivendi Universal Board of Directors determined to act on
this plan through: the sale of Vivendi Environnement shares
(representing slightly more than 15% of VE); and a capital
increase of up to 1.5 billion euros through a sale of shares by
Vivendi Environnement, which will, additionally, decrease Vivendi
Universal's ownership in Vivendi Environnement to slightly over
40%.

In addition, an agreement had been reached with Mrs. Esther
Koplowitz, Director of Formento de Construcciones y Contratas
(FCC), under which Mrs Koplowitz will not exercise her existing
call options when Vivendi Universal reduces its stake in Vivendi
Environnement under 50%.

This agreement reflects FCC's and Mrs. Koplowitz' continued
confidence in the growth potential of Vivendi Environnement and
will deepen their productive partnership.

The Vivendi Environnement capital increase will enable Vivendi
Environnement to finance its future growth and development, while
at the same time improve its debt-to-equity ratio.

The sale of Vivendi Environnement shares is expected to result in
U.S.GAAP deconsolidation of Vivendi Environnement. This operation
will be accretive to Vivendi Universal on both a cash and net
basis. It will also provide greater clarity for investors while
maximizing Vivendi Environnement's stability and control.

Overall, the reduction of Vivendi Universal's ownership of
Vivendi Environnement is another important step toward its Board
of Directors' and management's stated objective to deleverage the
company.

Vivendi Universal is a consumer-focused, performance-driven and
values-based global media and communications company, positioned
to be the world's preferred creator and provider of
entertainment, education and personalized services to consumers
anywhere, at any time, and across all distribution platforms and
devices.

Investor Relations - Europe
Nathalie Pinon
Telephone: +33 1 71 75 01 67

Brian Sullivan
Investor Relations - US
Telephone: +(1) 401 737 4100


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G E R M A N Y
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BABCOCK BORSIG: Engineering Group's Rescue Talks Break Down
-----------------------------------------------------------
Efforts to save Babcock Borsig from insolvency fizzled
following failed talks led by political supporters, the Financial
Times reported.  The troubled German company had been attempting
to reach an agreement with creditor banks regarding a restructuring
plan.

The failure of the last-ditch talks led by the German federal
government and the State of North-Rhine Westphalia was a blow
since the banks' decision was seen as a crucial factor for the
company's survival. The governments had promised to prepare
EUR300 million as funding.

The banks however, refused to back a bail-out. A board member of
Commerzbank, Mr. Wolfgang Hartmann said on Monday that he
believes the company is not worthy of restructuring and even
incapable of it.

Moreover, Commerzbank executives insisted that there is no
feasible plan for the company. They also expressed their concern
that the EUR800 million, which Babcock is asking won't be
sufficient in the long term.

The banks also have doubts about the effectiveness of Babcock's
capability to survive since the German company has gone through
the same problems in 1995-96. They said it is now up to the
insolvency administrator to take over the needed drastic cost
cutting and restructuring.

Evaluation of group's units has begun with insolvency
administrator Helmut Schmitz determining which of the units will
continue operations.
How many of Babcock's jobs will be affected have not yet been
ascertained, the paper said.

Babcock currently needs an estimated EUR700 million funding
requirement. This includes EUR200 million that the company must
secure right away so it could pay outstanding wages and other
payments.

The Oberhausen-based company operates through more than 70
subsidiaries and associated companies worldwide to design and
build power generation, water treatment and hazardous waste
disposal plants.

Babcock also manufactures generators, boilers and other equipment
(for use in these facilities) and produces drying and coating
systems, cleanroom equipment, and merchant and naval vessels.

The company's debt is reported to be EUR840 million. Preussag
(logistics, Germany) holds almost 20% of the company.


CARGOLIFTER: Share Slips to 5.15% as Rescue Deals Collapse
----------------------------------------------------------
Cargolifter AG share dove by 5.15% yesterday to 0.92 euros
following balked deals for the rescue of the business, the
Financial Times said.

The report further said DFX Flying Vision is the latest among the
companies to have backed out of planned deals with Cargolifter.
DFX had planned on producing helium balloons at Cargolifter's
production site using the company's lighter-than-air technology.

The company's main activities include: development, construction,
operation and marketing of large airships for the worldwide
transportation of large and heavy goods.


KIRCHGRUPPE: Creditors Inherit 75% Shares in F1 Stake
-----------------------------------------------------
KirchMedia's 75% shares of Formula 1's commercial rights has been
moved to three of its main creditors, a report from The Times and
Autosports Online said.

The report said that the creditors intention regarding the shares
is still undisclosed. But it is possible that they will sell the
shares in order to retrieve some of their original investment.

It was reported earlier that KirchMedia borrowed USD1 billion
from German bank, BayernLB, to fund the procurement of EM.TV's
stake in F1. The company was also said to have received USD300
million from U.S. investment banks JP Morgan and Lehman Brothers,
the papers said.


INTERSHOP COMMUNICATIONS: Appoints New President for EMEA
---------------------------------------------------------
Intershop Communications AG -- http://www.intershop.com--,  
a provider of e-commerce software for enterprises, on July 8
appointed Werner Fuhrmann as President Europe, Middle East and
Africa (EMEA).

This organizational change is part of the Company's strategy to
further strengthen its entire sales organization.

Werner Fuhrmann joins Intershop from Groupe Bull/Integris, a
leading European IT services provider. In the course of his
successful management career at Bull, he most recently held the
position of Chief Operating Officer of Integris and Member of the
Groupe Bull senior management team.

Previously he was the Bull AG General Manager for Central Europe
and a member of the German management board for Bull AG.

"With his broad international experience in enterprise solution
sales and general management, Mr. Fuhrmann will be a key
contributor to the success of Intershop," commented CEO Stephan
Schambach.

"With industry-leading software packages for B2B, B2C,
procurement and content management, Intershop offers the most
complete e-commerce software portfolio for enterprises. After
successfully restructuring the Company and significantly reducing
costs, today Intershop is one of the most attractive software
companies in the market," commented Werner Fuhrmann.

Contact Information:          

Investor Relations
Klaus F. Gruendel
Telephone: +49-40-23709-128
Fax: +49-40-23709-111
Email: k.gruendel@intershop.com


RTV FAMILY: Prematurely Terminates Deal With Nelvana
----------------------------------------------------
RTV Family Entertainment AG -- http://www.rtv-ag.de-- and  
Nelvana have agreed to terminate the mutual output deal
immediately, RTV said in its statement Monday.

The deal would have expired on December 31, 2002, after which
RTV would have acquired 5 series from Nelvana, while
Nelvana would have acquired 2 series from RTV.

This would have resulted in a negative cashflow for RTV of
more than US$ 3 million. In the current market environment
and stretched liquidity situation of RTV, a major cashflow
improvement is more important than building up library.

RTV achieved the premature termination of the mutual output deal
by agreeing to a licensing rights swap. All signed sublicense
agreements, for TV, video, music and merchandising rights, will
be honored and outstanding payments will be to the benefit of the
original licensor.

RTV will continue to air in its Ravensburger TV slot the
currently planned series until December 31, 2003. Expected Net
Sales for 2002 will now be about EUR 30 million, as compared to
about EUR 60 million that had been expected at the beginning of
the year.

EBIT expectation will decline further beyond the recently
announced extraordinary deprecations. The major cashflow
improvement constitutes another building block of the RTV
turnaround plan.

By returning licensing rights for 15 series a write-off of
approximately EUR 8 million will be necessary. This amount had
not yet been included in the major extraordinary deprecations as
recently announced.

On the other hand, RTV will capitalize those license rights
returning from Nelvana. The net effect will be negative. This
will be partially offset by the waiving of the Nelvana claims
against RTV.

In order to prevent a further eroding of the current equity
capital base, the main shareholder Ravensburger AG has declared
that it will subordinate part of its inter-company loan of about
EUR 5 million granted last year.



ELAN CORPORATION: Announces Leadership Changes
----------------------------------------------
Elan Corporation, plc Tuesday announced that Donal Geaney has
stepped down from the Board of Directors and his position as
Chairman and Chief Executive Officer.

The Elan Board of Directors has initiated an immediate search for
a Chief Executive Officer. In addition, Thomas Lynch has stepped
down from the Board of Directors and his position as Vice
Chairman. Mr. Geaney and Mr. Lynch will act as Senior Advisors to
the Chairman to support a newly constituted Executive Committee
of the Board.

The Board of Directors elected Garo Armen, Ph.D. as Chairman of
the Board of Directors and Chairman of a five person Executive
Committee. Dr. Armen, a Director of Elan since 1994, is Chairman
and Chief Executive Officer of Antigenics, Inc.

The Executive Committee will implement Elan's previously
announced action plan. That plan involves strengthening Elan's
cash position through asset dispositions, cost reductions and
focusing on its core products while continuing development of its
key products in clinical development.

At present Elan continues to have cash balances in excess of $1.3
billion and expects to have sufficient resources to implement its
action plan.

The other members of the Executive Committee are Laurence
Crowley, Ann Maynard Gray, Kyran McLaughlin and Daniel P. Tully.
Mr. Crowley is Chairman of the Bank of Ireland and Chairman of PJ
Carroll & Co. Ms. Gray, formerly president of Diversified
Publishing Group of Capital Cities/ABC, Inc., is a Director of
Duke Energy Corporation and The Phoenix Companies, Inc. and a
Trustee of J.P. Morgan Funds.

Mr. McLaughlin, formerly head of equities and corporate finance
of Davy Stockbrokers, is a Director of Riverdeep Group, plc and
Ryanair Holdings, plc.

Mr. Tully, Chairman Emeritus of Merrill Lynch & Co., Inc. was
Chairman and Chief Executive Officer of Merrill Lynch & Co.,
Inc., Vice Chairman of the New York Stock Exchange, Vice Chairman
of the American Stock Exchange and Chairman of the Board of
Governors of the National Association of Securities Dealers.

The Executive Committee will have broad authority over the
management of Elan on an interim basis until a Chief Executive
Officer is recruited. Senior management of Elan will report
directly to the Executive Committee during this transition
period.

Individual members of the Executive Committee will take a hands-
on approach, with specific authority in their individual areas of
experience, to guide Elan's management through this transition
period. Following the Board's actions, Dr. Armen said, "The Board
would like to thank Donal and Tom for their contribution to the
development of Elan and recognize their contribution to the
historic successes of Elan and for that we are appreciative."

Dr. Armen added, "Elan has excellent businesses and is developing
several promising new products. Leveraging this solid foundation,
we expect to prioritize the Company's focus on products crucial
to Elan's success and on development programs that are essential
for Elan's future. Consistent with previously announced plans, we
also intend to simplify the Company's balance sheet for
transparency and ease of understanding by our investors."


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I T A L Y
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ALITALIA: Italian State Reduces Stake in Alitalia by 30%
--------------------------------------------------------
The Italian council of state last Friday approved the Italian
government's proposal to privatize national airline Alitalia and
state-owned Enel, reports from Ile Sore 24 Ore and Financial
Times said.

The government of Italy proposal focuses on the reduction of its
stake Alitalia and Enel to at least 30% in the next 18 months,
the reports said.

Aside from the reduction of its stake, the government of Italy
also plans to sell stakes in Telecom Italia, Seat, Ente Tabacchi
Italiani, Mediocredito Friuli Venezia Guilia, Coopercredito,
Tirrenia and Fincantieri, the report revealed.

The government's plans according to the papers, has been
considered ambitious. It is looking at acquiring about EUR20
billion from sales of assets over the next 18 months.


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


KPNQWEST NV: Telia Will Buy French, Italian Assets of KPNQwest
--------------------------------------------------------------
Telia International Carrier (Telia IC) has strengthened its
position in France and Italy by expanding its fully owned Viking
Network through the purchase of assets of a French subsidiary of
KPNQwest, Telia said Monday.

Through the deal with KPNQwest's liquidator, Telia IC gets access
to a duct-based high capacity network between Paris-Lille and
Paris-Kehl (Germany) including a metro ring in Paris. Installed
IP, SDH and DWDM equipment is an important part of the agreement.

- This investment represents a few percent of our annual
investment budget and will give us a significant presence in one
of Europe's most telecom intensive regions, says Erik Heilborn,
President Telia IC.

The deal will also include the routes Paris-Lyon-Marseille-Turin-
Milano, Lyon-Geneva and Lille-Calais, if current third party
maintenance suppliers provide conditions at market rate.
The purchase significantly extends Telia ICs existing network in
the region.

Telia's wholly owned subsidiary, Telia International Carrier,
provides IP, Capacity, Voice, Infrastructure services and carrier
neutral collocation solutions. Today, the company is one of the
leading European carriers of transatlantic IP traffic to the USA.

Its wholly owned multi-fiber optic network - the Viking Network -
provides high capacity bandwidth and offers end-to-end
connectivity round the world.

The network is an investment-intensive venture expanding Telia
International Carrier throughout Scandinavia, Europe and the USA.

The infrastructure in Europe is designed as a multi-duct network
connecting all significant cities with communication, supporting
IP, Voice and Data.


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S P A I N
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REPSOL YPF: Repsol Not Interested in Selling YPF to Petrobas
------------------------------------------------------------
Repsol has expressed disinterest in selling its Aregentina-based
YPF to Petrobas, according to Petrobas chief Francisco Gros, a
report from Spanish news agency EFE said.  

According to EFE, Mr. Gros was recently in Spain for Petrobas's
debut on the Madrid-based stock exchange Latibex. He has revealed
his plans of expanding in Argentina where he sets an investment
if USD140 million for the next four years.

Mr. Alfonso Cortina, chief executive officer of Repsol YPF, said
last week that Repsol will consider offers for YPF. But he also
said he doubts that there are interested parties, EFE reported.

Earlier reports said that Repsol YPF was pressured to take
charges worth billions of dollars as a reflection of the effects
of the currency devaluation and financial crisis in Argentina.

Petrobas is one of the largest Latin-American corporations with a
market value of USD26.7 billion.


REPSOL YPF: Share Rises After Announcement of Debt Reduction
------------------------------------------------------------
Repsol YPF's share plummeted 9.14% yesterday to 12.42 euros after
the announcement that its debts have been decreased to about
EUR10 billion from EUR16.669 billion, the Financial Times
reported.

The paper said the sale of 24% of Gas Natural in May brought
about the decrease in the company debt by EUR4 billion.

Further, the debt reduction was also made possible by the rise of
the euro, which has help lessen the group's debt by EUR1.2
billion, because a large portion of the company's finance is in
dollars.


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


LM ERICSSON: Signs Contract With Chinese TCL Mobile
---------------------------------------------------
Ericsson has won a contract for supplying 2.5G (GPRS) mobile
handset platforms to TCL Mobile Communication Ltd., China, the
biggest domestic mobile handset supplier in China, the Swedish
group said Monday.

TCL Mobile Communication will utilize Ericsson Mobile Platforms'
state-of-the-art mobile platforms in its handset product
development and production.

"The co-operation is the combination of Ericsson's world-class
platform technology with TCL Mobile's Chinese culture based
industry design and strong marketing and sales. We are confident
that this offering will enable TCL Mobile to launch new products
quickly," says Dr. Wan Mingjian, CEO of TCL Mobile.

"China has the world's largest user base of mobile phones and
with its strong market position TCL Mobile is absolutely our
right partner. Based on Ericsson's mobile platforms offering, we
are assured that TCL Mobile will meet its high demands on handset
development, products and rapid time to market for its
customers," says Tord Wingren, President of Ericsson Mobile
Platforms.

The deal shows evidence of the transforming mobile phone
industry, where previously a handful of companies would supply
the complete products to their customers. Today the market trend
is that a large number of vendors will build consumer products
using crucial solutions supplied by a small number of specialized
companies.

This brings opportunities for Chinese companies to compete with
large international mobile vendors.

In line with the agreement, TCL Mobile Communication develops
value added 2.5G GPRS phones based on Ericsson's core mobile
handset technology. Ericsson holds the world's largest portfolio
of 2.5G and 3G Intellectual Property Rights. Part of this
portfolio is now offered to the market through Ericsson Mobile
Platforms, positioning Ericsson as a leading supplier of the core
handset technology.

Ericsson is shaping the future of Mobile and Broadband Internet
communication 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.
  

LM ERICSSON: Files Amendment to F-3 Statement With SEC
------------------------------------------------------
In connection with the proposed rights offering, Ericsson has
filed an amendment to the Registration Statement on Form F-3 with
the United States Securities and Exchange Commission (SEC) in
Washington DC Monday.

The filing does not represent the final Form F-3 and is subject
to further amendments.

The filed Form F-3 does not contain any information regarding the
terms and conditions of the proposed rights offering.

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.

Contact Information:

Gary Pinkham
Vice President
Investor Relations
Telephone: +46 8 719 0858, +46 730 371 371
Email: investorrelations@ericsson.com

Maria Bernstrom
Director
Investor Relations
Telephone: +46 8 719 5340, +46 70 533 4750
E-mail: maria.bernstrom@lme.ericsson.se


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


GRETAG IMAGING: Photo Finishing Says Liquidity Is Under Control
---------------------------------------------------------------
The cash position of Gretag Imaging Holding AG is "stretched"
but under control, the group announced it its latest statement.

According to Swiss finance weekly Stocks, Gretag's Jung in an
inverview  said that the company has progressed regarding its
liquidity situation in recent months.

Jung confirms he expects full-year sales to grow to about 4 to 6%
in line with the overall market growth.

The Swiss group in its statement last week said that current
orders are in line with expectations. Majority of the the orders
demand come from its digital systems operations.


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


ANKER AUTOMATION: Receivers Sell Machine Manufacturing Business
---------------------------------------------------------------
Anker Automation Limited
Machine Tool Manufacturer

The Joint Administrative Receivers, Gerald Smith and John
Whitfield, offer for sale the business and assets of Anker
Automation Limited.

- Manufacturer of inspection machines for the fastenings industry
    with a turnover of circa GBP1.2 million
- Modern freehold premises of 12,000 sq feet in Tamworth, Staff
    with good conncetion to motorway network
- Subcontract sorting and machining capabilities
- Plant, machinery and stock with a book value of circa
    GBP450,000

Contact Information:

Wendy Andrews
RSM Robson Rhodes
Centre City Tower
7 Hill Street
Birmingham B5 4UU

Telephone: 0121 697 6000
Fax: 0121 697 6112


COOKSON GRP: Shares Plummet as Group Calms Fears on Finances  
------------------------------------------------------------
Cookson's shares rose to 19.5% last Saturday following
company disclosures aimed at pacifying growing fears regarding
its financial status, the Independent reported.  

The company disclosed that its first-half sales might reach about
EUR900 million following a solid second quarter, the daily said.

In addition, the Independent reported that the company's sales in
the second quarter to June 30, were 7% better than the previous
quarter. The company said such improvement was brought about by a
general uplift across all its divisions. Its shares closed up
8.5p at 52p.

Moreover, Cookson also expects that during the first half of the
year, operating profits will improve due to the company's series
of cost-cutting measures. The company predicted that second-quarter
profits will be better than the first-quarter figure.

Earlier, the company's shares experienced pressure amid concerns
on how the company will be able to resolve its EUR750 million
debt. The company's trading update gave the market, which has become
increasingly apprehensive, an assurance that it may be able to
survive its financial woes.

The company now expects its net debt to total EUR750 million at the
end of June, a somewhat improved figure than what analysts had
expected, the daily reported.


JOHN LAING: Notification of Major Interests in Shares
-----------------------------------------------------
John Laing plc, the London-based residential construction group,
announced Monday that Schroders plc, on behalf of its
discretionary clients, has the following interests ordinary 25p
in the company:

SCHRODER NOMINEES LIMITED                543,963
CHASE NOMINEES LIMITED                   15,167,009
BRITISH COAL SUPERANNUATION FUND A/C P   2,200,000
IMPERIAL PENSIONS NOMINEES LIMITED       1,000,000
MINEWORKERS' PENSION SCHEME A/C R        1,064,461
BT GLOBENET NOMINEES LIMITED A/C 6B      388,461
NUTRACO NOMINEES LIMITED                 223,384
MELLON TRUST                             364,159

Total holding following this notification = 20,951,437

The total percentage holding of issued class following this
notification comprise 11.956% of the company's total shares in
issue.

The above holding includes interests held by Schroder Investment
Management Limited that has an interest in 19,367,284 ordinary
shares in the company and an affiliated company Sim North America
Inc that has an interest in 1,584,153 ordinary shares in the
company.


LEVI STRAUSS: Expects Added USD25 MM in Restructuring Expenses
--------------------------------------------------------------
Levi Strauss & Co. revealed in its quarterly report filed with the
U.S. Securities and Exchange Commission last week, it is looking
at additional restructuring expenses worth USD25 million for the
next 12-18 months, a report from the Associated Press said.  

The San Francisco-based company said the additional costs will
cover maintenance costs before the sale of closed plants. The
company reported charges linked with plant closures in the U.S.
and Scotland, worth USD150.2 million in the second quarter ended
May 26, the paper said.  
  
Levi Straus further revealed it is looking at a better
performance in sales during the second half of fiscal year 2002.
The improvement in sales will be brought about by "current
bookings and product orders, the expected impact of new product
introductions, steps it is taking to improve margins for its
retailers, and its planned use of targeted promotional
initiatives."

Levi Strauss is an apparel company that produces jeans, casual
and dress pants, shirts, among others. It owns several plants
worldwide and markets its products in more than 100 countries.


METTONI GROUP: Appoints Ernst & Young Administrative Receivers
--------------------------------------------------------------
Following the announcement of July 1, 2002 regarding the
suspension  of trading in the shares of Mettoni Group plc, the
company appointed on July 5, 2002 M D Rollings and S S Dubey of
Ernst & Young Joint Administrative Receivers.

The Company and its subsidiaries continue to trade while the
Joint Administrative Receivers assess the group's position, with
a view  to achieving a sale of parts or all of the group as a
going concern.

Mettoni is a London-based company which provides network and
communication related solutions.

Major shareholders include: Chase Nominees Ltd  (22.57%(dup)),
Clydesdale Bank (Head Off)(21.54%), Friends Ivory & Sime PLC
(19.39%(dup)), Vidacos Noms Ltd (9.44%), OMERS (5.83%), Stephen
Driskel (4.69%), RBSTB Nominees Ltd (3.96%), M Patel (3.29%) and
R G Arrowsmith (5.04%).  


PACE MICRO: Company Profile
---------------------------  
Name:      Pace Micro Technology PLC
           Victoria Road
           Saltaire, Shipley
           West Yorkshire
           BD18 3LF United Kingdom

Telephone: (01274) 532000
Fax:       (01274) 532010
Email :    finance@pace.co.uk

SIC:       Electronics Manufacturer
Employees: 1411
Net Loss:     GBP 38.5 million (June 2002)  
Total Assets:  GBP 182.5 million (June 2002)
Total Liabilities: GBP 80.9 million(June 2002)

Type of Business:  Pace Micro Technology PLC develops, designs
and distributes digital receivers and receiver decoders which
provide a gateway for the reception of digital television and the
reception/ transmission of interactive services, telephony and
high speed data.

The group also provides support services and software
applications to its gateway customers.

Trigger Event: Pace Micro Technology PLC already revealed earlier
this year a series of warnings that the group is likely to incur
losses from trading operations in the second half.

The group blamed its crisis on the prolonged difficult trading
environment of the global digital TV industry.

PACE also claims that the insolvency of cable operator NTL, Inc.
contributed the its difficulties as PACE said it had stopped all
shipments of set-top boxes to NTL.

Chief Executive: M M Miller
Chairman: Sir Michael Bett CBE  
Financial Director: J H Dyson  

Bankers: Barclays Bank PLC
Financial Advisers: Credit Suisse First Boston  
Stockbrokers: Hoare Govett Ltd , Credit Suisse First Boston
                (Europe) Ltd  
Auditors: KPMG
Law Firms: Travers Smith Braithwaite , Pinsent Curtis Biddle  
Financial PR Advisers: Citigate Dewe Rogerson  

Total Shares in Issue: 226.25 million 5p ordinary shares

Major Shareholders:

12.94%  Schroder Inv Mgmt Ltd
11.09%  FMR CORP and Fidelity Int Ltd
3.34%   Pace Micro Technology Trust
3.01%   Legal & General Inv Mgmt
19.70%  D R Hood OBE
3.92%   R A Fleming
0.11%   Other Directors


STENOAK ASSOCSER: Banks Appoint Administrative Receiver
--------------------------------------------------------
Following the suspension of the listing of the shares of Stenoak
Associated Services (PLC) on the AIM Market on Friday June 22,
2002, the Company has been in emergency discussions with its
major stakeholders, including its bankers, credit insurance
agencies and major suppliers in an endeavor to resolve the
extreme problems created by the withdrawal of credit insurance to
certain of the Group's suppliers.

Despite all efforts to find a solution to these problems, and in
order to protect the position of creditors, the Board has taken
the regrettable decision to invite the Group's principal bankers
to appoint Administrative Receivers over the holding company and
certain of the principal trading subsidiaries.

The directors wish to emphasize that:

1. Moxon Traffic Management Limited, which is a major player in
the traffic management market and based in Huddersfield,
continues to trade normally and is not affected by the Group
receivership;

2. Midpave Limited, which is a surfacing contractor based in
Hampshire, continues to trade normally and is not affected by the
Group receivership;

3. Allen Group, which comprises Allen Civil Engineering Limited,
Allen Surfacing Limited, and FJ McGregor Plant Hire Limited,
which is a civil engineering and surfacing business based in
Manchester, continues to trade normally and are not affected by
the Group receivership.


STENOAK ASSOCIATED: Company Profile
-----------------------------------  
Name:    Stenoak Associated Services PLC
         Highlands Lane
         Henley-on-Thames
         Oxfordshire
         RG9 4PS United Kingdom   

Phone:   +44-1491 575 921
Fax:     +44-1491 579 713
Email:   http://www.stenoak.co.uk/

SIC:     Construction & Building Materials
Employees:  879 (Dec 2000)
Net Loss:   GBP 2.2 million (Dec 2000)    
Total Assets:  GBP 57.4 million (Dec 2000)
Total Liabilities:  GBP 37.5 million (Dec 2000)

Type of Business:  Stenoak Associated Services PLC, formerly
known as Stenoak Services PLC, provides specialized maintenance
services to the transport infrastructure industry. These include
road and airfield surfacing, traffic management, highway, safety
and acoustic fencing, barrier manufacture and infrastructure
management.

Trigger Event: The withdrawal of SAS's credit insurance from
certain of the group's suppliers contributed to the group's
financial woes.

After failed negotiations with bankers, credit insurance agencies
and major suppliers in an attempt to resolve the group's crisis,
SAS's banks were forced to call in receivers over the holding
company and certain of its main trading subsidiaries.

Chairman: J. G. Sanger  
Chief Executive: D. Khadem
Finance Director: S. Wyeth

Bankers:  Barclays Bank PLC
Financial Advisers: Close Brothers Corporate Finance Ltd, KBC
Peel   
                      Hunt PLC  
Stockbrokers:       KBC Peel Hunt PLC  
Auditors:           AV Audit
Law Firms:          Olswang
Financial PR Advisers: Communication Group (The) PLC

Total Shares in Issue: 17.76 million shares at 10.0p ordinary
shares

Major Shareholders:

15.54%      Akam Ltd
12.09%(dup) Oakover Investments
3.38%       Fidelity Intl Ltd
12.09%(dup) A P Drewe
11.39%      S Hume-Kendall
0.25%       Other Directors


WORLDCOM, INC: Bondholders Mull Over Debt Swap to Save Company
--------------------------------------------------------------
Bondholders of troubled U.S. telecom company Worldcom Inc. are
expected to suggest a debt-for-equity swap that could spell hope
for the company by erasing a major portion of its USD32.8 billion
debt, Reuters reports.

Mr. Wilbur Ross, a distressed debt investor said that no formal
proposal has been formed. But bondholders have been discussing
the possibility of such move, Reuters said.

In addition, experts observe that a debt-for-equity swap would
perhaps be a part of the prepackaged bankruptcy filing.

If Worldcom would push for a debt-for-equity swap, it would
eventually be able to get out of its massive debts and have a
more stabilized footing against its debt-ridden competitors, the
daily said.

Experts further noted that bondholders are deeply interested in
the survival of the company because there is a big chance that
they would be able to get their money back.

The controversial company has already found an interested bidder
in IDT Corp., which had unofficially expressed its interest in
acquiring Worldcom for a deal worth USD5 billion.

Bondholders are also concerned that Worldcom might acquiesce to
pledge collateral to its banks in exchange for financing in a
desperate move to avoid bankruptcy. If this will happen,
bondholders will fall behind banks in the retrieval of claims,
the paper said.

Reuters further said that there is a possibility for Worldcom
shareholders to end up with nothing if the company would file for
bankruptcy. This is because the company's value is lesser than
its outstanding debt and under a bankruptcy filing, creditors
must be paid in full before shareholders could get anything.

Mr. Ross said that the company has outstanding shares of more
than 2.96 billion. It has a 25-cent share price, which means the
market is valuing the company at more than USD700 million,
Reuters reported.  

Two weeks ago, the company's bonds dove to just 15 cents from 74
cents after it revealed accounting irregularities.  

The company has been charged by the Securities and Exchange
Commission with accounting fraud. It is said that it has hired
the Blackstone Group to work as restructuring advisers and Weil
Gotshal & Manges, to assist in discussion for regarding
bankruptcy matters, the daily said.    

On Monday, the company was on the brink of bankruptcy after it
committed a debt default leaving lenders disgruntled. The lenders
demanded repayment for the company's USD4.25 billion debt.


WORLDCOM, INC: CEO, CFO Exercise 5th Amendment in Probe
-------------------------------------------------------
Troubled Worldcom's former chief executive Bernie Ebbers and ex-
chief financial officer Scott Sullivan exercised their fifth
amendment privilege against self incrimination in response to a
U.S. congressional committee's questions about the company's
alleged misrepresentation of accounts, BBC News said.

The congressional committee had expected to determine how the
accounting fraud, which amounts to USD3.8 billion went unnoticed.
It also attempts to determine if Worldcom violated any laws, the
daily said.

According to the BBC, Mr. Ebbers resigned from Worldcom two
months before the discovery of the accounting misdeed. In a
meeting with the committee, Mr. Ebbers refused to testify as
advised by his lawyers and denied his involvement in the alleged
scam, saying that once Worldcom's activities are revealed, people
will see that he never engaged in fraudulent activities during
his term.

Mr. Ebbers statement caused a commotion among two Republican
Congressmen, Max Sandlin and Richard Baker. They said that Mr.
Ebbers' comments after refusing to answer questions are an
indication that he has waived his Fifth Amendment fights, the
paper reported.

Furthermore, the committee chairman, Mr. Michael Oxley told M.
Ebbers that the committee that the committee can charge him with
contempt of Congress. He also said that the committee has rights
to recall Mr. Ebbers to ask him question within the jurisdiction
of his initial statement, the BBC said.  

Meanwhile, Worldcom's chairman Bert Roberts, Salomon Smith Barnet
telecoms analyst Jack Grubman and Melvin Dick, ex-partner of
Worldcom auditor Arthur Andersen, are also scheduled to testify
on Monday.


WORLDCOM, INC: Files Revised Statement With SEC
-----------------------------------------------
WorldCom, Inc. announced Monday that it has delivered to the
U.S. Securities and Exchange Commission (SEC) a revision to its
description, delivered to the SEC on July 1, 2002, of the facts
and circumstances underlying the events described in and leading
to WorldCom's June 25, 2002 press release regarding its intent to
restate its 2001 and first-quarter 2002 financial statements. The
revision is more detailed and includes four exhibits.

The revised statement is available on WorldCom's corporate
website at http://www.worldcom.com/infodesk/.

WorldCom, Inc. -- http://www.worldcom.com-- is a pre-eminent  
global communications provider for the digital generation,
operating in more than 65 countries.

Meanwhile, effective as of the close of regular trading on July
12, 2002, WorldCom announced that the company will eliminate its
tracking stock structure and have one class of common stock.

                                     **********

        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-
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USA, and Beard Group, Inc., Washington, DC USA. Kimberly
MacAdam, Larri-Nil Veloso, Maria Lourdes Reyes and Jean Claire
Dy, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2754.

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