/raid1/www/Hosts/bankrupt/TCREUR_Public/020715.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

                  Monday, July 15, 2002, Vol. 3, No. 138


                               Headlines


* F R A N C E *

ALCATEL: Completes Sale of Alcatel Optronics Netherlands
ALCATEL: Will Supply H3G SDH Backbone, MMS in Italy
EUROTUNNEL PLC: Reduces Debt by GBP446MM, Cuts Interest Charges
RHODIA SA: Sets up Food Business JV in Japan With Organo
VIVENDI UNIVERSAL: Cegetel Plans to Merge Unit With SNCF JV

* G E R M A N Y *

BABCOCK-BSH: Parent and Subsidiaries File for Insolvency
DEUTSCHE TELEKOM: Increases EBITDA in First Half of 2002
DEUTSCHE TELEKOM: Supervisory Board Will Meet Tuesday, July 16
KIRCH MEDIA: Sale of Core Assets Set for Delay, Say Bank Insiders

* I R E L A N D *

ELAN CORPORATION: Notification of Major Interest in Shares

* I T A L Y *

FIAT SPA: S&P Assigns Ratings for Fiat's Auto Receivables Deal
FIAT SPA: Will Cut Production to 40,000, Plans 21,700 Layoffs   

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

KPNQWEST NV: Traffic Decline Pushes Foundation to Stop Support
PRIORITY TELECOM: Introduces Fiber Based Internet Solution

* S W E D E N *

LM ERICSSON: Will Provide European IP Backbone Expansion to Telia   
LM ERICSSON: Wins GSM 1900 Contract With Enitel in Nicaragua

* U N I T E D   K I N G D O M *

ASW HOLDINGS: Goes Into Administration, 1,300 Jobs Under Threat
CORUS GROUP: Form Steel Frame House Joint Venture With Redrow plc
ESPORTA PLC: SDCLI's Increased, Final, Unconditional Cash Offer
JENSEN MOTORS: U.K. Car Manufacturer Will Go Into Administration  
MARCONI PLC: Mobile Unit Will Spin Off Defense Communications Ops
MARCONI PLC: Sells Applied Technologies Division for GBP57 MM
MG ROVER: China Brilliance Deal Is Off After Boardroom Upheaval
MG ROVER: MG Residual Values Confirmed by Auction Results
RAILTRACK PLC: Rail Workers Say They Inspected Wrong Track
RAILTRACK PLC: Confirms Receiving Reports on "Rough Ride"
WORLDCOM, INC: Decides Not to Pay Stock Dividend to MCI Group
WORLDCOM, INC: Postponement of Conversion of MCI Common Stock


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F R A N C E
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ALCATEL: Completes Sale of Alcatel Optronics Netherlands
--------------------------------------------------------
Alcatel Optronics -- http://www.alcatel.com--, a world leader in  
optoelectronic components for telecommunications systems, after
finalizing all customary closing procedures, announced Thursday
that the Management Buy Out (MBO) of Alcatel Optronics
Netherlands has been completed, in line with the group's
announcement on June 5.

The non-telecom MEMS and Planar design software were the result
of two start-ups bought by Kymata prior to being acquired by
Alcatel Optronics. The new entity called C2V is independently
owned and financially supported by Greenfield Capital Partners, a
Dutch private equity firm.

A C2V team will be dedicated to Alcatel Optronics for a one and a
half year period on a Planar design research and development
program.

Alcatel Optronics designs, manufactures and sells high
performance optical components, modules and integrated sub-
systems for use in terrestrial and submarine optical
telecommunications networks.

Operating state-of-the-art manufacturing plants in North America
and Europe, Alcatel Optronics is a leading supplier of DWDM
lasers, photodetectors, optical amplifiers, high-speed interface
modules and key passive devices such as arrayed waveguide
multiplexers and Fiber Bragg Grating filters.

It also has experience in integrating active and passive
components and modules into sub-systems.

The Optronics Division is part of Alcatel's Optics Group which
comprises Alcatel's world-leading activities in optical
networking, including submarine and terrestrial transmission
systems, fiber optics and optical components.


ALCATEL: Will Supply H3G SDH Backbone, MMS in Italy
---------------------------------------------------
Alcatel, announced Thursday it has signed a multi-million Euro
frame agreement with H3G, a subsidiary of Hong Kong's Hutchison
Whampoa, one of the world's leading operators of
telecommunications and Internet infrastructures - to implement
H3G's backbone and metropolitan transmission networks in Italy.

Under the terms of the agreement, Alcatel will supply its DWDM
and SDH multi-service transport systems, as well as its new
generation of SDH microwave radio systems, on a turn-key basis.

Their deployment will secure H3G's transmission platform the
degree of flexibility required to support a wide range of
broadband and UMTS-based services, while maximizing savings in
network's total cost of ownership.

Spanning about 6,000 km from Turin in the North to Palermo in the
South of Italy, the national backbone will deploy Alcatel's DWDM
system - supporting up to 32 channels working up to 10Gbit/s -
and SDH Optical Multi-Service Node (OMSN) systems.

OMSNs for metro applications, together with Alcatel's SDH high-
capacity urban microwave radio systems, will also be implemented
in the metro rings planned in the major Italian cities.

H3G's overall network will be supervised by Alcatel's unified
network management solution, able to monitor both SDH fiber and
radio as well as DWDM transport infrastructures.

"The agreement with Alcatel is another step in our strategy to
carry out high-quality infrastructures and technological
platforms. Joined with the exclusive content we have acquired, it
will let is present a winning offer to the market," said Bob
Fuller, H3G's CEO.

The selection further consolidates Alcatel's recognized
reputation as a reliable technological partner for its customers,
based on hundreds thousands of innovative solutions deployed for
the main service providers worldwide.

Alcatel supplies a complete product portfolio of world-class
managed transmission solutions, for both backbone and
metropolitan applications, to help operators move traffic
efficiently throughout the network, while minimizing capital and
operational expenditures.

Designed with distinctive and enduring features, Alcatel's
transport systems enable carriers to offer a full range of
revenue-generating broadband services to business and residential
users with differentiated Quality of Service.

A flexible platform efficiently allocating bandwidth in minutes,
the Alcatel Core Solution integrates the best of Alcatel's
optical cross-connects, DWDM systems that support up to 160
channels @10Gbit/s, upgradable to 240 channels, for long/very
long/ultra long-haul applications and 10Gbit/s TDM systems.

The Alcatel Metro Solution - including metro DWDM systems and
data-aware Optical Multi-Service Nodes (OMSNs) and Optical Multi-
Service Gateways (OMSGs) - brings high-bandwidth capacity to
metro networks at low-cost, delivering diversified services
(Storage Area Networks, ATM services, Ethernet and Gigabit
Ethernet services, optical Virtual Private Networks, ADSL and
UMTS transport, video-conferencing and web-hosting) that make the
most from carriers' investments.

Equipped with ISA (Integrated Service Adapter) plug-in cards,
OMSNs extend the already-rich range of PDH/SDH TDM interface
ports available to ATM switching, IP/MPLS routing, Ethernet (10,
100, 1000 Mbit/s) rate-adaptive transport and transparent Gigabit
Ethernet capabilities.

Both Solutions incorporate proven modular expansion capabilities
that allow service providers to expand or upgrade their networks
in service, thus optimizing bandwidth usage and reducing both
transport infrastructure costs and time-to-market for the
introduction of new data services in the network.

A variety of network configurations, including multiple rings and
mesh structures, can be implemented together with different
protection and restoration mechanisms, to fit operators'
requirements concerning traffic matrix, traffic availability,
bandwidth usage, physical network topology.

Efficient traffic control and routing throughout all network
levels, bandwidth-on-demand and virtual private networks (VPN)
are made available by Alcatel's integrated Network Management
solution, also supporting evolution towards the Generalized
Multi-Protocol Label Switching (GMPLS) protocol.

In wireless transmission, Alcatel's full-range catalogue
comprises high, low-medium capacity microwave systems - based on
PDH (Plesiochronous Digital Hierarchy), SDH (Synchronous Digital
Hierarchy) and North American standard technologies - for
business, mobile broadband distribution and private network
applications.

All the mentioned radio systems are managed by one common and
fully integrated network management platform. Alcatel has
installed more than 250.000 radios in more than 150 countries.

Upon obtaining a UMTS license in Italy in November 2000, with an
offer of EUR 3,253 million, H3G -- http://www.h3g.it-- is now  
aiming at becoming the first Multimedia Mobile Operator of the
Italian market.

Hutchison Whampoa is the majority shareholder with 88.2% of the
corporate capital, and is joined by first-rate Italian and
international players in telecommunications, Internet and new
media, publishing and banking, like S. Paolo Imi, CIR, HDP, BMI,
Gemina and Tiscali.  


EUROTUNNEL PLC: Reduces Debt by GBP446MM, Cuts Interest Charges
---------------------------------------------------------------
Eurotunnel announced Friday that the debt and Equity Note tender
offers launched on March 26, 2002 have successfully closed.

As a result, Eurotunnel's debt has been reduced by GBP446
million, an exceptional profit of GBP442 million will be reported
in the second half of this year, and interest charges will be
reduced by GBP35 million in the current year, by GBP20 million in
2003 and by an estimated GBP30 million per annum from 2006
onwards.*

The principal objective of the transactions announced on 26 March
was to buy back existing debt at a significant discount to its
face value, financed by the proceeds of a new long term
financing. The transactions aimed to:

  * reduce debt by more than GBP400 million
  * reduce annual interest charges
  * extend the maturity profile of Eurotunnel's Senior Debt and
      part of its Junior Debt
  * increase the proportion of Eurotunnel's debt service cost
      which is fixed or capped

The Equity Note tender offer aimed to reduce interest charges in
2002 and 2003.

Following the successful completion of an issue of GBP740 million
fixed rate bonds repayable from 2026-2028, Eurotunnel has:

  * Repurchased GBP839 million of subordinated debt at a weighted
      average price of 43%, resulting in a net debt reduction of
      GBP443 million; and

  * Refinanced GBP343 million of its Junior Debt which was due to
      be repaid between 2007 and 2012 with new debt repayable in   
      2026 and 2028, and extended the maturity of GBP232 million
      equivalent Senior Debt by seven years to 2009-2012.

The take up of the Equity Note tender offer was 60% of the GBP635
million of Notes outstanding, resulting in a reduction in
Eurotunnel's interest charges of GBP16 million in 2002 and GBP17
million in 2003. The acquisition of deferred interest will result
in a debt reduction of GBP3 million.

Eurotunnel's interest charges in 2002 will be reduced by a total
of GBP35 million as a result of the impact of the GBP16 million
reduction in Equity Note interest and a non-recurring saving of
GBP19 million resulting from the debt tender.

Combined with the reduction in interest charges, the extension of
debt repayments significantly reduces Eurotunnel's debt service
over the next decade.

No debt is now repayable before 2006. The transaction has also
resulted in the replacement of GBP1185 million variable rate debt
with GBP740 million of debt at fixed rates until 2026-2028,
substantially reducing Eurotunnel's exposure to variable interest
rates. As a result, over 80% of Eurotunnel's debt is either
capped or fixed until 2009.

These transactions are the latest in a series undertaken since
1999, which has resulted in a cumulative debt reduction of more
than GBP900 million.

Eurotunnel has been advised by Dresdner Kleinwort Wasserstein and
Merrill Lynch International.

Further details of the transactions are set out in the Annex --
http://bankrupt.com/misc/annex.pdf.

Roger Burge, Eurotunnel's Chief Financial Officer, commented:

"We set out to reduce our debt and interest charges and extend
the term of our debt in order to match more closely the 84-year
life of our Tunnel concession. We have succeeded on all fronts
and thereby secured important long-term benefits for our
shareholders."
  

RHODIA SA: Sets up Food Business JV in Japan With Organo
--------------------------------------------------------
Rhodia, through its subsidiaries Rhodia Food and Rhodia Japan and
Organo Corporation announced Friday that they have formed a joint
venture to develop and sell food ingredients and food additives
to the Japanese market.

Organo holds a 51% stake in the joint venture and Rhodia, 49%.

By combining their state-of-the-art technologies and research and
development capabili-ties, both partners expect to achieve a high
synergy in their food business.

The new company, Rhodia Organo Food Tech Co., Ltd., located in
Japan will target primarily the local market. The company will
provide customers with a full range of food ingredient solutions
and systems, technical services, marketing and distribution.

Leveraging strengths and technologies from both Organo and Rhodia
Food, the new company will be a significant player in the fields
of texture ingredients, natural extracts and neutraceuticals.

With headquarters in Cedex, France, Rhodia is one of the world's
leading manufacturers of specialty chemicals.

Providing a wide range of innovative products and services to the
automotive, healthcare, food, cosmetics, apparel, new technology
and environmental markets, Rhodia offers its customers tailor-
made solutions based on the cross-fertilization of technologies,
people and expertise.

Rhodia generated net sales of EUR7.2 billion in 2001 and employs
27,000 people worldwide. Rhodia is listed on the Paris and New
York stock exchanges.

Rhodia Food is part of the Consumer Specialties Division of the
Rhodia Group. Rhodia Food products are used in the dairy market,
meat and sea-food product markets and prepared food and bakery
products markets.

Global leader in phosphates and specialty guars, Rhodia Food are
experts in hydrocolloid, phosphate and culture technologies.

In 2001 Rhodia Food turnover reached 480 million Euros and
employed 1,115 people worldwide. Rhodia has been present in Japan
for the last 30 years. Established in this country through three
companies - Rhodia Japan, Rhodia Nicca, and Anan Kasei - Rhodia
had a total turnover of 27.5 billion yen (US$ 226 million) in
Japan last year.

Organo, as a water treatment engineering company, has a broad
range of businesses related to public infrastructures and to
advanced industries, as well as technological products used in
daily life.

The company holds the top share in water treatment equipment for
electric and electronic industries. Organo's food business began
selling polyphosphates when the food additives were authorized by
the government in 1957.

Utilizing its technologies for application and formulation,
mainly in the natural food ingredients such as hydrocolloids,
protein mixes, saccharides etc., Organo now provides 500 types of
processing food products for the meat, noodle, fish paste,
beverage and confectionery industries.

Organo's food business main characterics are its ability to
develop new applications, its formulation technology, its strict
quality control and its adaptability to meet customers' requests.

Contact Information:

Marie-Christine Aulagnon
Investor Relations
Telephone: + 33-1 55 38 43 01


VIVENDI UNIVERSAL: Cegetel Plans to Merge Unit With SNCF JV
-----------------------------------------------------------
Vivendi Universal's telecoms arm Cegetel Groupe announced it
intentions to hold discussions with French rail operator Societe
Nationale de Chemins de Fer (F.SNC) in a move to merge its fixed-
line business with Telecom Developpement, a report from Dow Jones
said.  

Cegetel's announcement came after SNCF refused to exercise a
EUR461 million put-option on its Telecom Developpement stake,
which is a 50-50 venture between Cegetel Gruppe and SNCF. If
exercised, the put-option could have permitted Cegetel to take
100% of the venture, Dow Jones said.

Citing Cegetel chief executive Philippe Germond, AFX said that as
a result, Cegetel and SNCF have agreed to unite the backbone
operated by Telecom Developpement and Cegetel's fixed-line
business.

Mr. Germond explained that SNCF would hold a minority of the
stake in the merged entity once the merge is completed. He said
however, that the exact figures owned by each partner are still
yet to be assessed, the news outfit reported.

Vivendi Universal owns 44% of Cegetel, while British Telecoms has
a 26% stake and SBC Communications Inc. holds 15%.


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G E R M A N Y
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BABCOCK-BSH: Parent and Subsidiaries File for Insolvency
--------------------------------------------------------
Babcock-BSH AG filed Thursday for insolvency at the appropriate
registry court in Krefeld.

At the same time, this filing will also lead to subsequent
petitions to be submitted on the same day from the following
group companies. They are: Babcock-BSH GmbH and its subsidiaries,
Turbo-Lufttechnik GmbH and Vits Maschinenbau GmbH.

The group had a workforce totaling 1,284 on September 30, 2001
and posted revenues of EUR 268.4 million.


CARGOLIFTER: CL75 Giant Balloon Badly Damaged After Storms
----------------------------------------------------------
Cargolifter AG's CL75 giant balloon fell victim to storms and
came out badly damaged, dealing a big blow to the insolvent
German airship maker's image, the Financial Times reported.

The much-publicized giant balloon, which was supposed to be a
stationary hovering crane, suffered under violent overnight
storms that killed seven people and created destruction in most
of Berlin.

The CL75 balloon's current disheveled state triggered the
reemergence of doubts concerning the technical and economic
feasibility of Cargolifter's projects, the paper said.  

Cash-strapped Cargolifter decided to pin its hopes of survival on
the CL75 after setting aside its plans of the developing of a
bigger 260-meter freight airship, which was capable of carrying
heavy loads up to 160 tons in May. The CL75 was supposed to
launched in the market by 2003, the daily noted.

Dubbed the "first aircrane", the CL75 had a Candaian company as
an initial prospective, which offer to buy the balloon for EUR10
million later this year. A spokesperson for the buyer said it
couldn't say whether the current state of the balloon may affect
the sale, the paper said.

Furthermore, the Financial Times noted that the balloon accident
could be seen as bad timing for the company since it happened
hours prior to a meeting of experts at the company's production
site who would determine whether the technical feasibility of the
CL75 balloon as well as the CL160 should be separately assessed.

The experts' findings are supposed to be aids for the insolvency
administrator examination of the project's risks and potentials,
the paper said.

Cargolifter AG is a company that provides air delivery, freight &
parcel services. Its business uses airships for the worldwide
shipping of oversized and heavy cargos that generally demand more
than one mode of transport.

The company declared itself insolvent after talks on a rescue
package with the local Brandenburg state government and investors
collapsed. It was unable to secure new capital from the
government and investors.


DEUTSCHE TELEKOM: Increases EBITDA in First Half of 2002
--------------------------------------------------------
Deutsche Telekom expects a further increase in EBITDA for the
first six months of the 2002 financial year compared with the
same period last year, the Bonn-based group reported in its
latest press statement.

According to information available so far, T-Mobile increased its
EBITDA in the second quarter once more compared with the first
quarter and thus recorded the best half-year in terms of EBITDA
in the history of the company.

In comparison with the EBITDA of the first half year 2001 of
approximately EUR 1.4 billion, the EBITDA in the first six months
of 2002 improved by well over EUR 1 billion.

T-Mobile's US operations made a particular contribution to this
development, improving its EBITDA by well over 50 % in the second
quarter of 2002 compared with the figure of EUR 106 million in
the first quarter.

VoiceStream recorded a net increase of more than 525,000
customers in the USA in the second quarter of 2002 to more than 8
million at June 30, 2002.

According to current expectations for the U.S. mobile
communications market, this growth in the absolute number of
customers puts VoiceStream among the top 3 mobile communications
providers in the USA in terms of net additions in the quarter.

VoiceStream's net contract additions of 700,000 was offset by a
corresponding reduction in the number of pre-pay customers. In
the same period, T-Mobile further extended its market leadership
with a net growth of 200,000 customers in the second quarter of
the year.

T-Com stabilized its EBITDA relative to the first half of 2001
(EUR 5 billion). T-Com recorded an increase of almost 2 % in its
revenues over the first six months of 2001 of EUR 14.7 billion.

The price adjustments implemented on May 1, 2002 will have a
positive impact on the results in the second half of the year.

The considerable reduction in capital expenditure in the fully
built-out fixed network will lead to a major increase in T-Com's
free cash flow in the course of this year, thus increasing the
financial means available to reduce the Group's debts.

Deutsche Telekom provides telecommunication and information
technology services in Germany and abroad. Activities are divided
into the following divisions: Telephone Network Communications,
Licensed Service Providers/Carriers, Data Communications/Systems
Solutions, Mobile Communications, Broadband Cable/Broadcasting,
Terminal Equipment, Special Value-Added Services and
International Services.

In December 2001, the group recorded USD2.1 billion in losses.
Its balance sheet reflected USD146.7 billion in assets and
liabilities of USD92.3 billion.


DEUTSCHE TELEKOM: Supervisory Board Will Meet Tuesday, July 16
--------------------------------------------------------------
The General Committee of Deutsche Telekom's Supervisory Board has
decided to call a meeting of the Supervisory Board for this
coming Tuesday, July 16, to discuss the company's situation, the
group announced Wednesday.


GRETAG IMAGING: Photofinishing Group Reports Upward Sales Trend
---------------------------------------------------------------
The upward trend in Gretag Gretag Imaging's sales continues. For
the third consecutive quarter sales increased. In the first half-
year of 2002 sales amount to around CHF 163 million (unaudited).

With this result Gretag Imaging has confirmed the target
announced in spring 2002 of a sales increase in line with market
growth.

The Gretag Imaging Group, which is headquartered in Regensdorf,
Switzerland, is one of the world's premier suppliers of
photofinishing and imaging equipment and systems.

The Group's products and services range from minilabs and central
labs to Internet applications. Gretag is listed on the Swiss
Exchange (GIGN) and has about 1,300 employees worldwide.

Agenda

Aug. 29, 2002: Publication of the Semi-annual Report 2002
Sept. 25 - 30, 2002: Photokina 2002 - World of Imaging - Cologne
(Germany)
May 15 2003: Annual General Meeting
Regendsdorf (Switzerland), July 11, 2002

Contact Information:

Kurt Munger
Head Corporate Communications & Investor Relations
Telephone: +41 1 842 26 07
Fax: +41 1 842 27 48
Email: kurt.muenger@gretag.com


KIRCH MEDIA: Sale of Core Assets Set for Delay, Say Bank Insiders
-----------------------------------------------------------------
The sale of the core assets of insolvent Germany company,
KirchMedia is set to be delayed, said bank insiders, a report
from Handelsblatt said.

Last week, KirchMedia had tapered its list of buyers for its core
assets from to ten. It had called for detailed bids due July 31,
a day before a creditors meeting, the paper said.

Citing bank insiders, Handelsblatt said that KirchMedia will be
holding the creditors meeting to review the deadline for the
acceptance of bids. The creditors disclosed that if this date
will be followed, it will shut out of the list interested
companies such as French TV company TF1.

Last Wednesday, TF1 had signified its interest in KirchMedia and
said it would had sent a confidential, non-binding letter to bank
UBS Warburg in order to get more detailed information on the
assets up for sale.

However, banking insiders said that the company may want to look
into the assets more before it would commit itself, the daily
said.

In addition, other interested bidders have not yet completed the
formation of bidding consortia. These include publishers Bauer
and Axel Springer Verlag AG who are searching for a third member.
Another consortium is composed of Commerzbank and Sony
Corporatio, a subsidiary of Columbia Incorporated, the paper
reported.

Other parties include U.S. billionaire Haim Saban and Bavarian
banking group HypoVereinsbank.

Besides TF1, the companies considered to be likely contenders are
Italy's Mediaset, Britain's Granada Group and Berterlsmann,
Handelsblatt said.


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ELAN CORPORATION: Notification of Major Interest in Shares
----------------------------------------------------------
In compliance with the provisions of 9.11 of the Listing Rules of
the Irish Stock Exchange and the UK Listing Authority, Elan
Corporation plc hereby advises that it has received Thursday the
following notification of interests in its ordinary share capital
from Fidelity Investments pursuant to the provisions of section
67 of the Companies Act, 1963:

Number of Ordinary Shares in Elan             %age of Issued
Ordinary Share Capital
15,318,834                                           4.38

Elan Corporation plc is a pharmaceuticals company with
headquarters in Dublin. It operates through its two main business
units: Elan Pharmaceuticals (EP) and Elan Pharmaceutical
Technologies (EPT).

EP is involved in the discovery, development and marketing of
products in the therapeutic areas of neurology, pain management,
oncology, infectious diseases and dermatology.

Clinical development programs are ongoing in the fields of
Alzheimer's disease, multiple sclerosis (MS), inflammatory bowel
disease, Parkinson's disease, spasticity and oncology.

EPT is engaged in the development, licensing and marketing of
drug delivery products, technologies and services to
pharmaceuticals industry clients on worldwide basis.

ELAN reported USD964.6 million in losses in its December 2001
profit and loss statement.  On the same period, the group
reported USD6.8 billion in assets and USD4.3 billion in
liabilities.


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FIAT SPA: S&P Assigns Ratings for Fiat's Auto Receivables Deal
--------------------------------------------------------------
Standard & Poor's said Friday that it assigned its preliminary
ratings to the fixed- and floating-rate notes to be issued in the
Fiat group's EUR824 million auto loan receivables securitization
(see list below).

The notes will be issued by European Auto Securitisation 2002
PLC, a special-purpose entity, and backed by a pool of auto loan
receivables originated in France and Spain by Fiat Credit France
S.A. and Tarcredit, Establecimiento Financiero de Credito S.A.
Fiat Credit and Tarcredit are the lending and finance companies
of the Fiat group in France and Spain, respectively, and are
indirect wholly owned subsidiaries of Fiat Auto Holding B.V.

"This is the fourth public securitization done by the Fiat group
in Europe, bringing the total of its auto receivables programs to
EUR3.7 billion," said Nicolas Malaterre, an associate director
with Standard & Poor's Structured Finance Ratings group in Paris.

Mr. Malaterre commented that the structure of the transaction, in
which the issuer accesses the cash flows of receivables generated
by both the French and Spanish financing operations of the Fiat
group, allows investors the benefit of greater pool
diversification.

"Also, the one-off purchase of receivables, as opposed to the use
of a revolving pool, ensures that the quality of the portfolio is
less uncertain," he said.

The preliminary ratings reflect:

--  The strong protection for noteholders provided by class
subordination;  

--  The suitability of the servicers in performing their
respective roles in this transaction;  

--  The sound legal structure of the transaction; and  

--  The sound payment structure and cash flow mechanics of the
transaction.  

A copy of Standard & Poor's complete presale report for this
transaction is available on RatingsDirect, Standard & Poor's Web-
based credit analysis system, at www.ratingsdirect.com.

The report is also available on Standard & Poor's Ratings
Services Web site at www.standardandpoors.com. Under Presale
Reports, select Structured Finance, then Asset-Backed Securities.

European Auto Securitization 2002 PLC
EUR824 Million Fixed- and Floating-Rate Notes
Class     Rating     Amount (Mil. EUR)
A         AAA        704.52
B         A           45.32
M         N.R.        74.16(a)

N.R.--not rated.

(a) Excluding EUR23.2 million of class M notes (purchase of
insurance premiums in France) which do not constitute credit
enhancement.


FIAT SPA: Will Cut Production to 40,000, Plans 21,700 Layoffs
-------------------------------------------------------------
Troubled Italian carmaker, Fiat SpA will reduce production and
lay-off 21,700 of its workforce in August and September as the
company's sales fell 30% in June, news from the Auto Insider
said.

According to the Auto Insider, Fiat plans to cut the production
of vehicles to 40,000 cars in the next two months. The decision
came after the drop in sales to 30% in June and its market share
plunging to 7.2% below its target of 10% following the failure of
its new Stilo model to generate profits.
  
Fiat shares plunge as low as 1.9% to 12.29 euros giving it's a
market value of EUR6.8 billion. This year, the shares went down
30%, which makes it the worst performance of any auto
manufacturer in the world, the Auto Insider said.

In its statement, the carmaker said the company will sue a
government-subsidized program to idle workers from August 19 to
September 22. The company has 44,000 employees in Europe and
36,000 in Italy. It said the layoffs will range from 750 to
21,700 a week, the news outfit said.
  
Citing the news agency Ansa, the Auto Insider said that Fiat SpA
chief executive officer Giancarlo Boschetti disclosed that the
unit's second quarter results will improve. But he said, "How
much better we'll have to see. We hope the incentives will
produce results."


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=====================


KPNQWEST NV: Traffic Decline Pushes Foundation to Stop Support
--------------------------------------------------------------
Sections of the European KPNQwest network have already been sold
off separately. Most of KPNQwest's former customers, including
KPN, have found alternative connection options.

Hence traffic across the network has declined sharply. That is
why the Foundation sees no reason to continue supporting the
network. KPN has already contributed to keeping the network
operational for more than six weeks, KPN NV announced Thursday.

The receivers and the banks have still not responded positively
to KPN's offer to take over the remaining sections of rings 1, 2
and 3 of the KPNQwest network in Northwestern Europe, despite two
changes in the deadline.

KPN regrets that this offer has not produced results, because an
operational cable network has an appreciably higher value than a
non-operational network.

A continuation of the existing network also represents the best
scenario for protecting as many jobs as possible.

As far as KPN is aware, its offer is the only concrete one which
the receivers have for the West European section of the network.

The offer is certainly competitive, firstly in light of the sale
price for parts of the network in France and Finland, and
secondly because KPN is willing to take on a not insignificant
proportion of KPNQwest's existing liabilities.

Whether the Foundation's decision to stop support of the network
leads to its closure depends on the receivers and the banks.


PRIORITY TELECOM: Introduces Fiber Based Internet Solution
----------------------------------------------------------
Priority Telecom N.V., announced Thursday that it is expanding
its product portfolio by introducing a fiber-based Internet
service in the great Rotterdam area (including The Hague,
Dordrecht, Spijkenisse and Vlaardingen).

The fiber-based Internet service is currently available on the
entire dense fibre network of Priority Telecom that covers 145
cities throughout the Netherlands.

For many businesses Internet access is an increasingly critical
part of their day-to-day operations. It is used for direct
customer contact and it enables flexible working solutions for
employees. Therefore it is important to choose an Internet
service that is reliable, offers high performance and is easily
upgradeable for future growth.

Corporate Internet Access of Priority Telecom enables companies
to benefit from the continuously growing need for bandwidth. The
service is provided over a fiber connection that connects the
customer to the nationwide fibre and IP network of Priority
Telecom.

By providing this managed end-to-end Internet service (including
the IP service and the fiber connection to the customer) Priority
Telecom is able to offer a highly reliable service that is
supported by firm service level agreements.

In addition this fiber connection can be utilized to upgrade the
Corporate Internet Access performance at very short notice in
line with customer requirements or to utilize other Priority
Telecom services such as voice or managed data services.

Proority Telecom reported EUR 14.3 million in losses on its March
31, 2002 unaudited postings. On the same period, its unaudited
balance sheet recorded EUR686.6 million in assets and EUR122.1
million in liabilities.


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


LM ERICSSON: Will Provide European IP Backbone Expansion to Telia   
-----------------------------------------------------------------
Ericsson and Juniper Networks today announced Thursday an
agreement to expand the capacity in the European backbone network
of global operator Telia International Carrier (TIC).

Under the agreement with TIC, Ericsson will deliver IP core
backbone routers based on the new Juniper Networks T640 Internet
Routing Node, as part of its verified and pre-tested Packet
Backbone Network (PBN) solution.

Ericsson will deploy the T640s within the network implemented
last year at TIC. Deployment of the new equipment will begin next
month.

Ericsson's PBN will allow TIC to significantly increase the
bandwidth of its backbone network while reducing capital and
operational costs. The T640 offers throughput speeds of 640 Gbps
(Gigabits per second), seamlessly scaling to multi-terabit
speeds.

"With this combined Ericsson/Juniper carrier-class backbone
implementation, we are building upon our solid backbone structure
in a natural way, getting the necessary capacity and flexibility
to handle the increasing data traffic effectively. Ericsson's
solution enables us to offer our customers the best possible
quality at the lowest possible cost," says Erik Heilborn, Head of
Telia International Carrier.

In 2001, Ericsson provided the fundamental IP Backbone network to
TIC throughout the U.S. and Europe, a significant achievement on
the IP backbone market.

"This new agreement with TIC further strengthens the relationship
between our two companies. Furthermore, it demonstrates
Ericsson's ability and competence in delivering comprehensive,
high-end IP datacom solutions to global operators - and the
competitiveness of our PBN solution," says Karl Thedeen, Key
Account Director for Telia at Ericsson Nordic & Baltics.

Ericsson -- http://www.ericsson.com/press-- provides telecoms  
solutions in more than 140 countries.  

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

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 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.

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

Telia four core businesses are: Mobile communications, Internet
services, International carrier operations and Fixed network
operations.

Telia -- www.telia.com -- is listed on Stockholmsborsen. Sales
2001 totaled MSEK 57,196 and the number of employees was 17,149.

Juniper Networks -- http://www.juniper.net--, headquartered in  
Sunnyvale, California, provides mobile and cable Internet
services at scale for the New Public Network.

Contact Information:

Ericsson Systems (US)
Ericsson Inc.
Glenn Sapadin, 212/685-4030
Email: investor.relations@ericsson.com

Juniper Networks (US)
Kathy Durr, 408/745-5058
Email: kdurr@juniper.net


LM ERICSSON: Wins GSM 1900 Contract With Enitel in Nicaragua
------------------------------------------------------------
Ericsson -- http://www.ericsson-- and Enitel (Empresa  
Nicaraguense de Telecomunicaciones, S.A) announced Friday a
contract naming Ericsson as the sole supplier to Enitel for GSM
1900 equipment, software and services in Nicaragua.

"Our GSM investment starts a new era of development in the
telecom industry in Nicaragua," said Carlos Ramos, CEO of Enitel.
"Nicaragua is experiencing rapid change in the telecom sector,
with privatization and liberalization of the market, and Enitel
is playing a key role. The agreement with Ericsson, the world
leader in GSM technology, will enable us to offer attractive
value-added services for the benefit of all Nicaraguans."

"We are very pleased to be working with Enitel to deploy our
world-leading GSM solution in Nicaragua," said Urban Gillstrom,
president of Ericsson in Central America. "This agreement
reinforces Ericsson's position as the leading supplier of mobile
systems, and our commitment to deliver advanced wireless services
to Central America."

"We are looking forward to working in partnership with Enitel, an
operator that has already proven its viability and strength in
Nicaragua," said Mats V. Otterstedt, general manager for Ericsson
in Nicaragua. "The GSM network will offer nationwide coverage and
will enable Enitel to offer advanced GSM services such as voice
mail, automatic roaming, Pre-paid, and SMS (Short Messaging
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.

Enitel was recently privatized and is now transforming the
company into customer-oriented business. Enitel intends to
satisfy its clients with customized solutions based on their
telecommunications needs.

In less than a year, Enitel will have increased the country's
teledensity from 2.5%, the lowest in Central America, to 6%. This
will be the result of the investments in a new Mobile Network as
well as investments to increase the number of fixed lines before
the end of 2002.

Contact Information:

Ericsson Inc.
Glenn Sapadin
Telephone: 212/685-4030
Email: Investor.relations@ericsson.com


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


ASW HOLDINGS: Goes Into Administration, 1,300 Jobs Under Threat
---------------------------------------------------------------
ASW Holdings Plc has recently went into administration after
struggling with market competition of cheap imported products
from its rivals and imposed U.S. tariffs, a report from AFX News
said.

The company's current state now leaves more than 1,300 jobs
facing uncertain fates.

KPMG has been appointed as receivers.

According to AFX, KPMG's parter Roger Olfield reasoned "the group
had also been badly affected by the strength of the pound."

"The management has worked tirelessly in the hope of securing a
purchaser for the company for several months,"

"We will be continuing these discussions as well as reviewing
other options, which include seeking other buyers for all or
parts of the business," Mr. Olfield added.

ASW's case has triggered the reemergence of controversy
concerning the imposition of US tariffs of up to 30% on imported
foreign steel by the United States, AFX reported.

In response, the British government has asked the US to think
over its decision. The European Union has also filed a complaint
with the World Trade Organization (WTO), the news outfit said.

But ASW explained it has not been directly affected by the US
tariffs but was affected by the consequences, as ASW had to
contend with rivalry against cheap exports that were supposedly
destined for the U.S., AFX reported.

ASW has ask for a suspension of its shares immediately. The
shares closed at 2-1/2 pence on Tuesday.

ASW Holdings Plc makes steel products, principally for the
construction and engineering industries of Western Europe. It has
production facilities in Cardiff, Sheerness and Belfast.

It posted a pretax loss for the year to Dec 31, 2001 of GBP6.4
million, down from GBP11.7 million the previous year.

On Dec 31, 2001, ASW had bank borrowings of GBP41.5 million, up
from GBP40.2 million at the end of 2000, with committed bank
facilities of GBP55.0 million.

ASW was formed on June 29, 1981 as a joint venture between
British Steel and GKN PLC.

Both companies have since disposed of their stakes in the group,
following a management buy-out in October 1987. ASW floated on
the London Stock Exchange on June 2, 1988.


CORUS GROUP: Form Steel Frame House Joint Venture With Redrow plc
-----------------------------------------------------------------
Corus Building Systems, part of the international metals group
Corus, and Redrow plc, the U.K. residential and commercial
property developer, announces the formation of a 50/50 joint
venture, Framing Solutions, to offer steel frames primarily
targeted at the U.K. residential industry.

Framing Solutions combines the complementary strengths of Corus
and Redrow to meet the growing demand for framing systems in the
UK housing market and to provide the required investment for
significant growth. The venture is subject to regulatory
clearance from the European Commission, which is expected by the
end of July.

Corus Building Systems Managing Director, Jim Mathieson said:
"Corus is delighted to work with Redrow. This venture is a good
example of how Corus is growing its downstream value-added
activities. Pooling Corus' extensive experience of providing
metals solutions and Redrow's in-depth knowledge of house
building, I am confident that Framing Solutions will provide a
first class product and service package to customers."

Redrow Chief Executive, Paul Pedley, said: "Redrow has been
investigating alternative construction technologies for some time
and believes that light steel framing offers a viable,
sustainable solution. We are pleased to be working with Corus who
bring their know how and manufacturing skills to the venture,
alongside Redrow's expertise in house building design."

Since 1992 Corus Building Systems has supplied, under the brand
name 'Surebuild', a light- weight steel framing system used for
domestic housing, flats and other similar structures. The frames
are designed in-house by CAD engineers directly from architects'
drawings, are fabricated in the factory to precise tolerances and
are then erected on site by fully trained teams. Nearly 2000
Surebuild buildings are already occupied in the U.K.

Framing Solutions will not be confined to supplying Redrow plc,
nor purely the residential sector. The joint venture will deliver
an enhanced light steel frame design as part of an on-going
evolution of the existing system. Other exciting product
developments delivering innovative solutions for construction are
planned by Framing Solutions.

The system is based upon a "warm frame" concept meaning that the
galvanized frame is kept warm and dry at all times; to achieve
this, insulation panels are added to the outside of the frame to
provide a weather-tight seal within the cavity. The structure is
then clad with traditional face bricks or render.

Framing Solutions will be based at Swadlincote in Derbyshire. It
will initially employ 38 people and it is expected that as the
business develops it will provide further job opportunities of
around 70 over the next 18 months to two years.

Existing customers of Corus Framing are being contacted with
regard to the opportunities and improvements in service that this
joint venture will provide.


ESPORTA PLC: SDCLI's Increased, Final, Unconditional Cash Offer
---------------------------------------------------------------
The board of Duke Street Capital Leisure Investments Limited
(DSCLI) announces that the mandatory cash offer announced on July
12, to be made on its behalf by Hawkpoint for the entire issued
and to be issued ordinary share capital of Esporta not otherwise
held by DSCLI, is now final and unconditional in all respects.  

This Increased and Final* Cash Offer will be 87.5 pence for each
Esporta Share and will value the whole of the existing issued
ordinary share capital of Esporta at approximately GBP145.4
million.

DSCLI has Friday purchased 51,200,000 Esporta Shares in
aggregate, representing approximately 30.8 % of Esporta's
existing issued ordinary share capital from major shareholders of
Esporta at a price of 87.5 pence per Esporta Share.

As a result DSCLI (and persons acting in concert with it)
currently own or control a total of 92,399,868 Esporta Shares,
representing, in aggregate approximately 55.6 % of the existing
issued ordinary share capital of Esporta.

*The Increased and Final Cash Offer is final and will not be
increased or amended except that DSCLI reserves the right to
increase or otherwise amend the Increased and Final Offer should
a competitive situation arise or should the Panel so agree.

Accordingly, the Original Cash Offer made by Hawkpoint on behalf
of DSCLI has now become a mandatory cash offer under the
provisions of Rule 9 of the City Code and, as a result of the
share purchases made today, this Increased and Final* Offer is
unconditional in all respects.

The Increased and Final* Cash Offer represents:

-    a premium of approximately 71.6 % over the closing middle
market price of 51 pence per Esporta Share on October 19, 2001,
the last dealing day prior to press speculation that Esporta was
vulnerable to an offer

-    a multiple of 21.9 times consensus forecast earnings per
Esporta Share for 2002

DSCLI believes Esporta's attempts to persuade Esporta
Shareholders that it has a credible strategy and the ability to
deliver strong growth in the future are entirely unconvincing
and, in the absence of DSCLI's offer, fail to justify Esporta's
recent share price.

In addition, DSCLI believes that Esporta:

-    is taking questionable short term cost cutting and
discounting measures which risk damaging Esporta's premium brand
status and its ability to retain members

-    is facing an increasingly competitive environment with at
least 18 recent and planned openings local to Esporta's existing
clubs

-    has still not fully disclosed the costs and timetable for
exiting its expensive failure in Continental Europe

-    has made severe cutbacks in planned 2002 openings, reducing
Esporta's medium term growth prospects

-    has failed to provide Esporta Shareholders with adequate or
consistent information about the growth in new member numbers,
the year on year rate for which during the first five months of
2002 appears to be declining, and the attrition rate of its
members

-    has not disclosed its expected profits before tax for the 6
month period ended 30 June 2002.  Is this due to its GBP2 million
charge in relation to the implementation of "revenue enhancement
initiatives" and cost saving measures and its GBP2.3 million
charge in relation to the impairment of its Swedish fixed assets?

Bolstered by persistent bid speculation, Esporta's announcement
that it was in bid discussions, and DSCLI's share purchases
Esporta's share price has outperformed its peers by 152 % since
Esporta was first the subject of bid speculation.

DSCLI's offer has provided temporary protection to Esporta
Shareholders from the 16.1 % fall in the FTSE All Share Index
since DSCLI made its offer six weeks ago.

Esporta Shareholders have the chance to accept an offer of 87.5
pence per share in cash now or face the risk of further value
erosion.

Commenting on the Increased and Final* Cash Offer, Nick Irens,
Chairman of DSCLI, said:

"We are deeply worried that the rash of short term ideas from
Esporta will damage the brand and take the business downmarket.
We firmly believe that our increased offer of 87.5 pence per
share represents the best solution for shareholders, as evidenced
by Esporta shareholders having sold over 55 % of Esporta's issued
share capital to DSCLI.  This increased cash offer represents an
excellent opportunity for the remaining Esporta Shareholders to
exit an underperforming business which has an uncertain future."

Unless the context otherwise requires, the definitions used in
the Original Offer Document, together with the definitions in
Appendix III to the full text of this announcement, apply in this
announcement.

This summary should be read in conjunction with the full text of
this announcement relating to the Increased and Final* Cash
Offer.


JENSEN MOTORS: U.K. Car Manufacturer Will Go Into Administration  
----------------------------------------------------------------
Jensen Motors, the U.K. manufacturer of cars said it has decided
to go into administration after a deal fell through over the
weekend, reports from the Business Scotsman and AFX News said.

The reports also said that the decision to go into administration
comes after The MacDonald Partnership backed out of a rescue deal
after it came up against "unexpected problems".   

MacDonald Partnership, a turnaround specialist, said however,
that a deal could be resurrected some time soon, the reports
said.

According to AFX, MacDonald was said "to have offered to invest
capital in Jensen in return for becoming a majority shareholder.
Production would likely have moved abroad, possibly to South
Africa, where costs are cheaper."

Last Monday, Jensen resorted to a redundancy of its whole
workforce at its factory in Speke, the reports said.


MARCONI PLC: Mobile Unit Will Spin Off Defense Communications Ops
-----------------------------------------------------------------
Marconi Mobile, the Italian unit of Marconi Plc is set to
separate its non-defense business from its strategic
communications defense activity in preparation for a flotation,
according to Marconi Mobile chairman Remo Pertica, a report from
AFX News said.

Mr. Pertica also added that the company is "rapidly moving
towards a bourse listing" and it is expected to apply in the
Consob, Italy's market regulator by the end of July, AFX said.

Moreover, the new company, which will be the product of the spin-
off of the defense communications business of Marconi Mobile will
be named Compagnia Marconi 1897 or Compagnia 1897, if Marconi
will disallow the continued use of its name.

Mr. Pertica also revealed that the strategic communications
defense activity stand for 85% of Marconi Mobile's overall sales,
AFX reported.

The business reported sales of EUR502 million and an operating
profit of EUR60 million in March 31, 2002.


MARCONI PLC: Sells Applied Technologies Division for GBP57 MM
-------------------------------------------------------------
Marconi -- www.marconi.com -- announced Friday that it has agreed
the sale of its Applied Technologies division (MTech), to 3i and
funds associated with 3i, for GBP57 million (comprising GBP50
million in cash and a GBP7 million vendor loan note).  

The company will trade as E2V Technologies. The sale of Marconi
Applied Technologies Limited and Marconi Applied Technologies Inc
completed today.  

The completion of the sale of assets of Marconi Applied
Technologies' French business will occur subject to the receipt
of French regulatory approval.

Mike Parton, chief executive, Marconi plc, said: "This
transaction represents good news for Marconi Applied  
Technologies, its customers and staff, as well as Marconi plc,
re-positioning this strong business for long term growth whilst
releasing cash proceeds to Marconi."

Marconi Applied Technologies is a technology innovator and market
leader in radio frequency (RF) microwave and imaging components
and subsystems for the industrial, medical, scientific and
broadcast communications market sectors.  

Headquartered in Chelmsford, Essex, and with a base in Lincoln,
the company employs over 1,350 people worldwide, primarily in the
U.K.  

The division also has operations in the United States, Germany
and France and has established a network of agents and
distributors covering the Americas, Europe, the Middle East and
Africa, Far East and Australia.

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

Contact Information:

Investor Relations
Marconi plc
Telephone: +44 (0) 207 306 1735
Email: heather.green@marconi.com


MG ROVER: China Brilliance Deal Is Off After Boardroom Upheaval
---------------------------------------------------------------
MG-Rover's dream of a link to the burgeoning market in China lies
shattered following a boardroom upheaval at its desired partner
China Brilliance Auto, the company announced in its statement
early in July.

Although no official statement has yet been made, sources within
the Hong Kong- and Shenyang-based company say the deal is
definitely off since the ousting of chairman Yang Rong.

Yang's departure was officially linked to an investigation of
financial mismanagement, but in fact he was removed by the
efforts of the rest of the board, mainly because he was the only
member in favour of the tie-up with MG Rover.


MG ROVER: MG Residual Values Confirmed by Auction Results
---------------------------------------------------------
A range of MG saloons has achieved exceptional sale prices at the
first major auction to be held for the new model line-up.

Averaging just under 80% of current retail prices, the auction
returns offer solid proof of strong RVs (residual values) across
the range of MG saloons.

The auction, a closed safift staged by BCA and open to 70
registered buyers, saw all 120 cars on offer sold, raising nearly
GBP1.4 million, the car manufacturer said in its statement this
month.

Confident, competitive bidding kept values high across the MG
saloon range.

Star performers included ZR 105 3dr and 5dr models and a ZT+ 190
saloon, all of which made over 90% of their current retail value.
A number of ZR Turbo Diesel 5dr models also achieved
exceptionally high prices.

Simon Wheeler, heads MG Rover as vehicles director.


RAILTRACK PLC: Rail Workers Say They Inspected Wrong Track
----------------------------------------------------------
Maintenance contractor Jarvis revealed one of its workers
notified Railtrack about a problem on the line at Potters Bar
just hours before the crash. But Railtrack had inadvertently
directed workers to examine the wrong part of the track, reports
the Guardian Unlimited.

The workers said Railtrack had told them to go in the opposite
direction so the fault on the track was missed by workers, said a
spokesperson from Jarvis, the paper reported.

The paper also said that Jarvis further claimed that it has in
possession a tape-recorded message of the instruction made by
Railtrack.

Jarvis's spokesperson said he can "confirm that we were notified
of a rough ride on the up fast line and we went to inspect the up
line and didn't find anything wrong with it."

He said the workers were not allowed to go to other areas of the
track without permission from Railtrack so it is understandable
that checking other areas did not come to mind.

The health and safety executive and the British Transport Police
were already given documents related to this issue and knew of it
while conducting their investigation, the paper said.

The Guardian reported that "an interim report on the crash
published last week confirmed that the accident was caused by a
set of points, codenamed 2182a, which moved as a train passed
over it, causing a derailment which claimed seven lives."

Furthermore, the paper said, "investigators found that 40 out of
300 nuts on other points around Potters Bar were not fully
tightened, and that the points responsible for the crash had been
wrongly assembled."

The investigators also came to a conclusion after a three-month
investigation, that there was no evidence of vandalism or
sabotage that could have caused the crash, the paper said.


RAILTRACK PLC: Confirms Receiving Reports on "Rough Ride"
---------------------------------------------------------
Railtrack Plc confirms on July 12 that reports of a "rough ride"
in the Potters Bar area were received the night before the
accident and acted upon.

The investigation is looking at the communication process that
took place between all the rail industry staff involved.

Currently the tapes of the conversations are with the police as
part of their investigation and it would be inappropriate to
comment while they continue their inquiries.

The Health and Safety Executive have confirmed that the Potters
Bar accident was caused by detached nuts on a set of points. How
they became detached, inspection of the points and the timeframes
involved form substantial parts of the continuing investigation.

Railtrack will continue to fully co-operate with the
investigation team in an effort to unearth the full facts behind
this tragedy.


WORLDCOM, INC: Decides Not to Pay Stock Dividend to MCI Group
-------------------------------------------------------------
WorldCom, Inc. announced Thursday that, in light of current
circumstances, its Board of Directors has determined the company
will not pay the dividend of USD$0.60 per share of MCI group
common stock that was scheduled to be paid on July 15, 2002.

As previously announced, each outstanding share of MCI group
common stock will be converted into 1.3594 shares of WorldCom
group common stock, effective as of the close of regular trading
on Friday, July 12, 2002.

WorldCom, Inc. -- http://www.worldcom.com/-- is a pre-eminent  
global communications providing for digital generation, operating
in more than 65 countries. The group provides innovative data and
Internet services for businesses.


WORLDCOM, INC: Postponement of Conversion of MCI Common Stock
-------------------------------------------------------------
WorldCom, Inc., announced Friday that at the request of the
Securities and Exchange Commission, the United States District
Court of the Southern District of New York has entered an order
staying for seven business days the previously announced
conversion of each outstanding share of MCI Group Common Stock
into 1.3594 shares of WorldCom Group 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-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
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.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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The TCR Europe subscription rate is US$575 per half-year,
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