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

                             E U R O P E

                 Thursday, September 12, 2002, Vol. 3, No. 181


                              Headlines

* F R A N C E *

ALCATEL: Introduces Colubris Solution Into Its Portfolio
ALCATEL: Launches New One Touch 715 Mobile
VIVENDI UNIVERSAL: Pressure Accountants to Show Profits
VIVENDI UNIVERSAL: French Publisher May Offer Bid for Units
VIVENDI UNIVERSAL: Partners With Interplay and BAWLS

* G E R M A N Y *

CONSORS: To Fire Employees and Close Investment Operation
DEUTSCHE TELEKOM: Government Rules Out Further Stake Sale
DEUTSCHE TELEKOM: May Sell Stake in Satellite Business
DEUTSCHE TELEKOM: Closer to Deal With Banks on EUR5 BB Loan
DEUTSCHE TELEKOM: May Cut Stake in Russian Mobile Operator
KIRCHGRUPPE: Ringier Likely Buyer of 40% Stake in Axel Springer
KIRCHMEDIA: Kirch Obtains Extension on Springer Stake Sale
KIRCHMEDIA: Lines Up Firm Bidder for Axel Springer Stake
MOBILCOM AG: Nokia Cuts Vendor Financing, Making Future Uncertain
MOBILCOM AG: Schmid Won't Settle for Anything Less Than 11 Euros

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

LYCOS EUROPE: Announces Management Changes

* P O L A N D *

ELEKTRIM: Resolution No 129/02
ELEKTRIM: Board Assigns Three Members to Supervise Actions

* S W E D E N *

LM ERICSSON: Selected for USD155 MM GPRS/GSM Expansion

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

ZURICH FINANCIAL: Sells Venture Capital Firm

* U N I T E D   K I N G D O M *

BALTIMORE TECHNOLOGIES: Announces Interim Results
BRITISH AIRWAYS: Faces Ejection From FTSE 100 Index
BRITISH ENERGY: Shares Dropped Despite Government Aid
BRITISH ENERGY: Labour Faces 'Political Crunch' for Bailout Move
BRITISH ENERGY: Contract Reveals Enron as Creditor
BRITISH ENERGY: Notification of Major Interest in Shares
COLT TELECOM: Announces GBP20 Million Bond Buyback      
GLOBAL CROSSING: Judge Gerber Appoints Fee Review Committee
INVENSYS: Asset Management Solution Helps Hendrick Motorsports
PACE MICRO: Releases Chairman's Statement on Trading Conditions
PACE MICRO: Notification of Directors' Interests
PACE MICRO: Partners With TANDBERG TV to Develop IPTV System
PACE MICRO: Presents Earlybird Compatible Home Gateway
RAILTRACK GROUP: To Distribute Loyalty Bonuses to Key Employees
WORLDCOM: Announces Its Post-Restructuring Management Plan
WORLDCOM: Employees Received Inappropriate Advice From WorldCom
WORLDCOM INC: BP Seeks Stay Relief to Set Off Mutual Obligations


===========
F R A N C E
===========


ALCATEL: Introduces Colubris Solution Into Its Portfolio
----------------------------------------------------------
Alcatel (http://www.alcatel.com)announced that it has signed an  
OEM (Original Equipment Manufacturer) partnership agreement with
Colubris Networks, a Canadian-based company specializing in local
wireless systems for the fast-emerging public Wireless LAN hot
spot market.

The agreement reinforces Alcatel's strong position in broadband
access, with a clear market leadership already established in
both ADSL and LMDS solutions. In particular, it will allow
Alcatel to serve the needs of mobile operators wishing to
complement their GSM/GPRS and UMTS service offerings with WLAN
services for specific hot spots. The companies are currently
partnering in several opportunities in Europe and Asia.

Marc Rouanne, President of Alcatel's Mobile Networks activities,
declared:

"We are very pleased to enter this partnership with Colubris
which will allow us to complement our fixed and mobile access
solutions portfolio with an innovative and secure Wireless LAN
access solution. We look forward to providing our mobile
customers with a full set of turnkey solutions including GSM/GPRS
and UMTS networks as well as WLAN and LMDS capabilities".

Barry Fougere, CEO of Colubris, added: "Colubris is delighted to
partner with Alcatel because we believe that together we can
effectively meet the emerging needs of mobile carriers.  We are
convinced that WLAN public access is an ideal complement to
GSM/GPRS and UMTS mobile networks".


ALCATEL: Launches New One Touch 715 Mobile
------------------------------------------
Alcatel (http://www.alcatel.com)introduces the One TouchTM 715.   
This new, GPRS, class 10 mobile phone stands out from the crowd.
Eschewing the formal designs of similar business phones of  its  
class - the One TouchTM 715 has a bold, 70's retrospective feel  
and  shape  to it. Blending intelligent, crisp design with the
latest technology it offers users a funky yet functional
alternative to what's presently available.  Featuring an extra
wide screen in a light (88g) handset, the One TouchTM 715 will
appeal to users who don't need to think twice about mixing
business with pleasure. With a large range of options allowing
for personal creativity, the user can quickly tailor the phone to
their specific needs  - making the One TouchTM 715 very much
their own creation.

Screen size:  XXL  -  With  a  sleek  design that favours pure
lines and performance, the One  TouchTM 715 is fitted with a high
resolution extra wide screen (100 x150 pixels, blue back-
lighting, four levels of gray). Capable of displaying ten lines
of text, the screen can be used in an upright or landscape
format.  It also features a zoom option. On further exploration,
users will discover that a big screen also lends itself to the
phone's overall playing pleasure.

An advanced personalisation tool - The One TouchTM 715 enables
direct complex icon, photograph, full animation, ring tones and
animated icons downloading via the WAP (WAP 1.2.1, EMS 4.0).
Alcatel even had a thought for music lovers by offering
polyphonic ringing using 16 musical instruments. Also capable of
memorizing photos associated with contact files, the One Touch
715 displays the photo of the person calling (or an image the
user associates with the caller). A PC CD-ROM completes this
latest offering providing users with a true multimedia, graphic
and sound studio to express their creativity.

An efficiency tool - The One TouchTM 715 includes a mini PDA
capable of storing 800 contact files, of programming up 1000
appointments and establishing a list of 60 tasks to do: it has
enough space to satisfy the busiest users. Furthermore it offers
the possibility of synchronizing these data with the user's PC or
with that of others via the network (SyncML using a serial link
or the infrared interface. It includes a calculator, Euro
converter and a clock indicating the time according to the time
zones. Its infrared interface allows contact files (Vcard) and
appointments (Vcalendar) to be exchanged. It is Palm and Windows-
CE compatible.

Like any good assistant, the One TouchTM 715 responds perfectly
to its "master's voice".  It executes up to 20 voice commands,
records memos lasting up to 60 seconds and allows voice
recognition on 20 contacts. To help users relax, the One TouchTM
715 offers three interactive games allowing two person network
playing.

Alcatel's One TouchTM 715 will be available starting in September
2002 at a recommended retail price of 249 Euros.


VIVENDI UNIVERSAL: Pressure Accountants to Show Profits
-------------------------------------------------------
Vivendi Universal allegedly persuaded one of its auditors to
skirt around an accounting policy in order to reflect profit on
its results. According to a Le Monde report, the company's
management pressured auditor Salustro-Reydel not to apply French
GAAP to a monetization operation of Vivendi's BSkyB shares.

French markets supervisor, COB, investigated the matter and
discovered letters and e-mails supporting the reports. The
finding also revealed that Vivendi succeeded in suspending
certain accountants from the firm.

Vivendi needed to sell its BSkyB stake as part of its move to
merge with Cana1+ and Seagram to form Vivendi Universal. Failing
to find a buyer, Vivendi transferred the stake to Deutsche Bank
in exchange for cash.

According to the French GAAP, the proportion of BSkyB debt
carried by these shares should have stayed on Vivendi's books.  
Vivendi's other auditor, Andersen of US, however contested that
the debt could be removed from the balance sheet under the US
Securities law.

Salustro's compliance officer, Xavier Paper, reported the matter
to the COB, which ruled out Andersen's argument.  The officer was
suspended following the broke out of the issue.

According to the report, both Salustro and Vivendi refused to
comment on the findings of the probe.   


VIVENDI UNIVERSAL: French Publisher May Offer Bid for Units
-----------------------------------------------------------
French publisher Nicolas Philippe is interested in buying the
European publishing businesses of media giant Vivendi Universal
SA, Reuters reports.

The owner of publishing house Le Serpent a Plumes will make a
joint bid with an investment arm of French bank Credit Agricole.

The sale, which is expected to raise US$5 billion, has worried
French authorities who contend that a block sale of Vivendi's
publishing operations will include sale of assets considered as
national legacies.

The government had made it known to Vivendi chairman Jean-Rene
Fourtou it would prefer a French buyer for the operation.

According to a Les Echos report, Philippe also does not favor a
block sale, as this would shut industrial bidders.

The proceeds of the sale are seen to ease financial pressure on
Vivendi, which has some EUR19 million (US$18.66 billion) debts,
EUR5.6 billion of which are short-term.

CONTACT:  VIVENDI UNIVERSAL SA
          42 Avenue de Friedland
          75380 Paris Cedex 08, France      
          Phone: +33-1-71-71-10-00
          Fax: +33-1-71-71-11-79
          Home Page: http://www.vivendiuniversal.com
  

VIVENDI UNIVERSAL: Partners With Interplay and BAWLS
-----------------------------------------------------
The makers of BAWLS Guarana, the soft drink with the most
caffeine on the market, Interplay Entertainment (Nasdaq: IPLY),
the publisher of "Run Like Hell(TM)", and Vivendi Universal
Games, Interplay's distribution partner, announce a co- promotion
that follows the popular Hollywood paradigm of product placement
in films. This much-anticipated PlayStation(R)2 computer
entertainment system game is slated to ship to retail in early
October.

"BAWLS has become an integral part of the video game world," said
BAWLS Founder and CEO Hoby Buppert, "and a partnership with
Interplay, in one of their most compelling games ever, is an
exhilarating concept." As part of the "Grab Your BAWLS and Run
Like Hell" promotion, BAWLS will produce "Run Like Hell"
collector's edition cases of BAWLS Guarana.

The "Run Like Hell" game will feature BAWLS soft drinks and
vending machines located strategically throughout the game. Nick
Connor, the main character, can drink the beverage as a 'power-
up' to sustain his health and endurance. The state-of-the-art
game will feature gorgeous 3D graphics and a suspenseful
storyline that will keep gamers reaching for their BAWLS.

"BAWLS has become the beverage of choice for gamers searching for
a refreshing and revitalizing drink to keep them fueled for hours
of game play," said Gina Cabrera, Promotions Manager for
Interplay. "This promotion will help to position 'Run Like Hell'
as an intense new experience among the game aficionados that are
loyal BAWLS drinkers."

The promotion marks a first for the company as it continues
reaching out to gamers that comprise a significant portion of its
buyers. "Computer-game fans have embraced BAWLS since its
introduction several years ago," said Hoby Buppert, the company's
founder and CEO. "The soft drink has become the Gatorade of the
cyber-athlete, and we are excited to capture the console gamer
through strategic new efforts like the promotion with 'Run Like
Hell.'"

A BAWLS TV spot featuring thirsty characters from the "Run Like
Hell" game will run on cable TV programs this fall. Visit the
BAWLS and Run Like Hell Web sites at www.bawls.com and
www.interplay.com/rlh / for more contest information and links.

BAWLS Guarana, www.bawls.com , is a high caffeine soft drink made
from the guarana berry from the Amazonian Rainforest. The
caffeine derived from guarana is twice as powerful as the
caffeine derived from coffee. The most recognized soft drink with
computer games, BAWLS reaches millions of computer gamers through
"LAN Parties" and tournaments across the country, its gaming
website www.bawlsgaming.com, and sponsorship of the CPL-
Cyberathlete Professional League.

Interplay Entertainment Corp. is a leading developer, publisher
and distributor of interactive entertainment software for both
core gamers and the mass market. Interplay currently balances its
development efforts by publishing for personal computers as well
as current and next generation video game consoles. Interplay
releases products through Digital Mayhem, Black Isle Studios,
Interplay, its distribution partners and its wholly owned
subsidiary Interplay OEM, Inc. More comprehensive information on
Interplay and its products is available through its worldwide
website at www.interplay.com

Headquartered in New York, NY, Vivendi Universal Games
(http://www.vugames.com)is a global leader in multi-platform  
interactive entertainment and a worldwide operating division of
Vivendi Universal Publishing, the world's third largest
publishing company. A leading publisher of PC, console and
online-based interactive content, Vivendi Universal Games'
portfolio of development studios includes Blizzard Entertainment,
Sierra Entertainment and Universal Interactive. Through its
Partner Publishing Group, Vivendi Universal Games also co-
publishes and/or distributes interactive products for a number of
strategic partners, including Empire Interactive, Fox
Interactive, Mythic Entertainment and Simon & Schuster, among
others. Games are one of parent company Vivendi Universal's key
content areas, along with movies, music and other publishing
activities.


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


CONSORS: To Fire Employees and Close Investment Operation
---------------------------------------------------------
ConSors Discount Broker AG, the German broker bought by BNP
Paribas SA this year, plans to fire more than half of its
employees at its capital markets unit, and close its Frankfurt-
based investment bank, Bloomberg reports.  The cuts in the
workforce will affect 45 workers in Frankfurt.

Spokeswoman Simone Stein said, the unit, Consors Capital Bank AG,
will continue operating on its Berlin-based financial markets
services and consumer banking businesses.

Consors Capital also plans to stop its securities business, which
was set up two years ago in order to manage smaller initial
public offerings booming in Germany during 1999 and 2000.  The
service was also projected to offer its more than 500,000 online
brokerage clients easier access to new shares.

Chief Executive Officer Karl Matthaeus Schmidt admitted the IPO
market "has dried up", the report said.

Spokeswoman Stein assured that Alfred Moeckel, chief executive
officer of ConSors Capital Bank, and management board members
Johannes Eismann and Klaus-Gerd Kleversaat will continue to
function in their positions.


DEUTSCHE TELEKOM: Government Rules Out Further Stake Sale
---------------------------------------------------------
The Federal government will not sell any more shares in Deutsche
Telekom AG or Deutsche Post World Net AG due to the current
market condition, AFX reports.

Finance minister Hans Eichel disclosed that the government will
suspend sales "until the capital markets recover further."  The
declaration was in response to an interview with an opposite
number from the CDU/CSU, Lothar Spaeth, who indicated he was in
favour of selling more shares in the companies.

Deutsche Telekom recently announced its continued growth course
in the first half of 2002 despite the difficult market condition.
The company posted an increase in group revenue of almost 15% to
EUR 25.8 billion, and a net loss of EUR 3.9 billion due primarily
to depreciation and amortization relating to newly consolidated
companies.

The state owns a 30.75 of Deutsche Telekom, and 50% of Deutsche
Post.  


DEUTSCHE TELEKOM: May Sell Stake in Satellite Business
------------------------------------------------------
Telecom operator Deutsche Telekom, which is currently in talks
about selling a cable television and its U.S. mobile phone unit
VoiceStream, may also put its EUR530 to EUR540 million stake in
satellite operator SES, analysts say.

The world's fourth largest telecom operator needs up to EUR7
billion to reach its target of cutting down debt from more than
EUR64 billion (US$62.7 billion) to EUR50 billion by the end of
2003.

Reuters quoted a London analyst saying the telecom operator has
few non-core assets, narrowing the choice to SES.

A KBC Securities analyst Dirk Saelens in Brussels was also quoted
saying the company needs money and is likely to divest its stake
in SES.

Telekom is as well offering its 18% stake in Eutelsat, a deal
being rivaled by PanAmSat Corp. and Intelsat says Wall Street
Journal.

Deutsche Telekom owns 78 million shares or about 13% of
Luxembourg-based SES.  The share lost about half its value at the
beginning of the year.

SES shares were down EUR0.2 at 6.75 as of 1000 GMT on Monday. It
has a free float of 20.7%, and its shares are known for being
illiquid.

SES, meanwhile, disclosed it has no idea of Telekom's plans. It
is currently planning to launch a secondary listing in the United
States.

If Telecom can wait, it might sell the shares when SES pushes
through with the listing, Petercam's Yigal Abend said.

Telekom's spokesman said it would reveal its plans for asset
sales in November, after reviewing its operations.


DEUTSCHE TELEKOM: Closer to Deal With Banks on EUR5 BB Loan
-----------------------------------------------------------
German telecoms company Deutsche Telekom AG is moving closer to
an agreement with its lending banks over a EUR5 billion loan
rollover due this month, AFX News reports.

Citing TelecomFinance, the news agency says it is possible that
Deutsche Telekom will be able to rollover the facility and extend
the maturity date to 2003 within the next 24 hours.    

One banker was quoted in saying that Deutsche Telekom is expected
to announce in a day or two the extension of the loan once they
will receive the EUR5 billion credit facility.


DEUTSCHE TELEKOM: May Cut Stake in Russian Mobile Operator
-----------------------------------------------------------
German telecoms company, Deutsche Telekom AG, is mulling over
reducing its stake in Russian mobile operator Mobile Teles
Systems (MTS), AFX News reports.

Deutsche Telekom however said its will not cut the stake lower
than 25% from its current 36% standing.

AFX further reports that the German company is also considering
the sale of the entire stake but sources said this is not true
adding that the company still plans to stay active in Russia.

The company has admitted in being some EUR4-7 billion short in
its plan to reduce its EUR64 billion debt to EUR50 billion by end
of 2003.

Deutsche Telekom's interim chairman Helmut Sihler is presently
studying the group's finances in order to find ways of filling
this gap. The results of the review will be announced by the end
of November. AFX says the company is currently considering all
options.


KIRCHGRUPPE: Ringier Likely Buyer of 40% Stake in Axel Springer
---------------------------------------------------------------
The withdrawal last week of WAZ Gruppe in the race for the 40%
stake of Leo Kirch in German newspaper group Axel Springer has
opened a door for Swiss publisher Ringier to enter.

According to the Financial Times, the German publisher doesn't
seem to mind that its 56-year "stubborn independence" could end
with the entry of a foreign shareholder in Ringier.  In fact,
Springer has even confirmed that it has been in talks with the
Swiss counterpart on a strategic business combination.

A Springer insider says both sides are reviving loose discussions
on cooperation, including synergies in the tabloid market, where
Axel Springer and Ringier own the popular Bild and Blick dailies
respectively, as well as joint projects in eastern Europe.
      
"Both Springer and Ringier have their own printing capacities so
there might be some savings there as well," the insider told the
Financial Times.

People familiar with the talks, however, said Michael Ringier is
setting conditions before putting his money on any deal.  
Accordingly, the Swiss group's founder wants a seat on the
supervisory board of Springer and the right to nominate a
management board member.  

The report says a deal with Ringier has the backing of Deutsche
Bank, JP Morgan, Lehman Brothers, and Bayerische Landesbank.    
Deutsche Bank holds a primary lien on the stakes, which was
pledged by Mr. Kirch for a EUR720 million (US$706 million) loan.  
The three other banks hold a secondary lien on the stakes.
      
While Deutsche Bank has conducted preparatory work on a secondary
placement of the shares, it is now willing to let Springer
explore a friendly deal before seizing the stake from Mr. Kirch.

The stakes are one of the priced assets of KirchGruppe, the once
mighty German media empire that collapsed under the weight of
some EUR5 billion or so debt-load.


KIRCHMEDIA: Kirch Obtains Extension on Springer Stake Sale
----------------------------------------------------------
Meida magnate Leo Kirch has until September 20 to sell its 40%
stake in publisher Axel Springer, Financial Times reports. The
extension, however, provides that in case Mr. Kirch failed to
obtain a deal before September 20, Deutsche Bank could take the
stake as collateral for a EUR720 million loan to his insolvent
media empire.

People close to the magnate, on the other hand, says Deutsche
Bank might not make such move if it sees the negotiations making
progress.  One of these sources affirmed that Mr. Kirch's
interests are aligned with that of Deutsche Bank, eliminating the
need for court discussions.

As the market value of the Springer stake has recently fallen
below the value of the loan, the bank is now inclined to sell the
stake to Swiss publisher Ringier.  The original plan was to seize
the shares and sell them in a secondary offering.

Ringier is currently negotiating the sale with Mr. Kirch.  It is
as well negotiating with Mathias Do[umlaut]pfner, Springer's
chief executive, and Friede Springer, its largest shareholder,
about a strategic alliance.

Should the proceeds of the sale exceeded the sum owed to Deutsche
Bank, Mr. Kirch, will receive a fee from JP Morgan, Lehman
Brothers, and Bayerische Landesbank, which all have a secondary
lien on the stake.

Mr. Kirch might also withdraw a legal claim against Deutsche
Bank's former chairman if he were allowed to proceed with the
sale, the report said citing one person close to Mr. Kirch.


KIRCHMEDIA: Lines Up Firm Bidder for Axel Springer Stake
--------------------------------------------------------
Insolvent German media conglomerate Kirch's lawyer reveals the
company has singled out at least one firm bidder for its 40%
stake in German publisher Axel Springer Verlag, a report from the
Associated Press says.

In recent days, Kirch has been trying to sell its shares in the
German publishing company in a move to pay its creditors.

Kirch's lawyer refuses to disclose the name of the companies
interested in the stake. Swiss publisher Ringier however, has
confirmed on Monday that it is currently negotiating with Kirch
to buy the shares, the news outfit says.

Another interested bidder, WAZ, Germany's publisher of regional
newspapers has also said it is interested in the shares.

Ringier is the publisher of Blick, a Swiss daily.

Recently, a Munich has extended its decision to September 20 on
whether to allow Kirch more time to sell the stake and pay a loan
of EUR720 million from Deutsche Bank that was secured by the
shares.

Rumors have recently emerged that the fall of the German media
group signaled the possibility that the company may be purchased
by foreign media companies such as Rupert Murdoch and Silvio
Berlusconi and U.S. cable entrepreneur John Malone, creating
imbalance in Germany's otherwise sober media landscape, AFX says.

Kirch also holds a controlling stake in ProSiebenSat.1 Media,
which operates four national TV channels.


MOBILCOM AG: Nokia Cuts Vendor Financing, Making Future Uncertain
-----------------------------------------------------------------
There is still no word as to what France Telecom intends to do
with German affiliate MobilCom AG, but the withdrawal by Nokia of
its vendor financing may be a sign of what's ahead.

Citing Nokia's mid-quarter update, the Financial Times says the
telecom equipment maker withdrew some EUR550 million in vendor
financing commitments not yet drawn by MobilCom.  It also said it
had agreed to terms with France Telecom on the restructuring of
EUR452 million of outstanding commitments, leading to a EUR300
million write-down.

In June, France Telecom reached agreement with MobilCom's
syndicate of 17 creditor banks over a debt-restructuring plan for
the troubled German firm.  In that deal, the banks agreed to
convert 90% of their EUR4.7 billion loan into securities
convertible to shares in the French giant.  The loan was set to
mature in July.

People privy to the situation said at the time that Orange, the
mobile phone arm of France Telecom, will shortly offer to buy the
stakes controlled by 71.5% of shareholders at EUR10 apiece.  This
will value the German affiliate at EUR652.87 million, Troubled
Company Reporter-Europe said in its June 21 issue.

In exchange for forgiving EUR4.2 billion of the EUR4.7 billion
loan, the banks were given the option to own 19 million of France
Telecom shares, which when converted is equivalent to 4% of the
phone giant.  The securities have a strike price of at least
EUR45.  

This deal, however, will only be completed upon the re-
negotiation by France Telecom of another EUR2.1 billion in
MobilCom liabilities in the form of vendor facilities granted by
Nokia and Ericsson.  It will also become void if Orange fails to
secure the 49% stake owned by CEO Gerhard Schmid, TCR-Europe
said.

An unnamed analyst interviewed by the Financial Times still
believes Nokia's withdrawal of vendor financing is not fatal.  If
anything, he said: "[It only] suggests to us that France Telecom
is still looking to buy out other shareholders in MobilCom in
order to avoid litigation but that it plans to liquidate it,
merge it with a rival, or pull it out of 3G immediately
thereafter."


MOBILCOM AG: Schmid Won't Settle for Anything Less Than 11 Euros
----------------------------------------------------------------
The horizon may be getting darker but ex-MobilCom chief Gerhard
Schmid is sticking to his decision not to accept any offer from
France Telecom that is less than EUR11, says Agence France Press.

"I see no reason why we should negotiate outside a range of 11
euros to 17 euros," he said.

Mr. Schmid believes the state-controlled France Telecom will not
allow MobilCom to go under for fear of political backlash.

"If the French government lets a German company with 6,000
employees down, it will have to face the consequences for its
credibility and that of the company it controls," Mr. Schmid told
the Financial Times early this week.

While some say the French group will allow the highly indebted
German affiliate to go bust and cut its exposure in the company,
there are others who believe it is merely dragging its feet on a
takeover plan to put pressure on MobilCom's stocks.

Under German takeover rules, a public offer must reflect at least
the target company's average share price in the past 30 days.  
MobilCom shares traded at 5.70 euros in Frankfurt Monday.

France Telecom is expected to announce its plan for MobilCom any
time this week.


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


LYCOS EUROPE: Announces Management Changes
-------------------------------------------
Dr. Jens Uwe Intat, COO and CFO of Lycos Europe N.V. will leave
the company by October 31st, 2002, to take over a Managing
Director position outside of Lycos Europe N.V. and the
Bertelsmann group respectively. New CFO will become Dr. Ralf
Struthoff, currently Vice President Finance at Lycos Europe N.V.
Dr. Intat`s responsibilities as COO will be assumed by Christoph
Mohn, CEO and sole management board member of Lycos Europe N.V.


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


ELEKTRIM: Resolution No 129/02
-------------------------------
The Management Board of Elektrim S.A. announces that on 9
September 2002 it received from Elliot Advisors (UK) Ltd, acting
on behalf of funds it represents, a letter with a proposal to
purchase all interests and claims which Elektrim S.A. has in
Elektrim Telekomunikacja Sp. z o.o.

The total proposed purchase price for the interests in the amount
of EUR 350 mm comprises as follows:

- EUR 80.5 mm of claims relating to EUR 70 mm face value of
Elektrim's
convertible bonds due in 2004, and
- EUR 269.5 mm of cash.

The above is conditional on, among others, a successful
completion of due diligence, financing for the bid, and adequate
representations, warranties and indemnities from Elektrim S.A.
regarding Elektrim Telekomunikacja Sp. zo.o.


ELEKTRIM: Board Assigns Three Members to Supervise Actions
---------------------------------------------------------
Elektrim S.A. announces that the Supervisory Board of Elektrim
S.A. passed the following resolution during the second part of
its meeting held on 9 September 2002:

Pursuant to article 390 1 the Supervisory Board hereby delegates
each of the following members of the Supervisory Board Mr. Hubert
Janiszewki, Mr Maciej Raczkiewicz and Mr Ryszard Opara to
individually perform the supervisory actions in the following
matters:

a) monitoring the Company's cash flows and entering into
agreements or making payments in excess of 1000,000 PLN or its
equivalent in other currencies,
b) negotiations with bondholders and other Company?s creditors,
c) sale or other disposals of the Company?s assets,
d) the Company's investment in PAK.

Each of the delegated members shall report to the Supervisory
Board on the performance of its supervisory actions and their
results at each Supervisory Board meeting.

Contact Information:

Jacek Dabrowski
Director
Investor Relations
Elektrim SA
Phone: (+48 22) 432 87 75
Fax: (+48 22) 432 84 75
email: jacek_dabrowski@elektrim.pl


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


LM ERICSSON: Selected for USD155 MM GPRS/GSM Expansion
------------------------------------------------------
Ericsson (http://www.erisson.com)has been selected by Advanced  
Info Service Public Company Limited (AIS), as sole supplier of an
end-to-end GPRS network and expansion of the Thai mobile
operator's nation-wide GSM network. The orders are valued at USD
155 million.

Ericsson will provide equipment and services for a complete GPRS
network including the latest GPRS equipment, GPRS Management
System,
IP Security, GPRS Charging equipment, Network Monitoring Tools
and training. AIS will use Ericsson GPRS system to provide
nation-wide data service.

In addition, Ericsson will expand AIS's GSM network, including
in-building coverage and supplying Ericsson's Performance
Enhancement service covering Bangkok Metropolitan and central
north region. Deliveries have already commenced and are expected
to be concluded in the first quarter of 2003.

"AIS has huge demands from its customers and is committed to
provide them with the highest level of services. We have chosen
the good support and proven reliability of Ericsson's technology
and service, which ensures we can give the best service to our
customers," said Mr. Vikrom Sriprataks, AIS's Network Chief.

AIS is the largest mobile phone operator in Thailand. With 8
million subscribers of the total 13 million subscribers, it has
captured 60% market share. AIS is now adding more than 500,000
new registered subscriptions per month.

"These new orders are a continuation of the successful and long-
term relationship we have had with AIS since 1992. AIS'
continuing confidence in Ericsson's leading technology and our
unparalleled position in deploying GSM and GPRS networks is very
gratifying," says
Lars Bjorkenor, President, Ericsson (Thailand) Ltd.

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:

Antoinette Torell
Ericsson Corporate Communications
Phone: +46 8 719 0546;+46 70 676 9279
E-mail: antoinette.torell@lme.ericsson.se


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


ZURICH FINANCIAL: Sells Venture Capital Firm
--------------------------------------------
Troubled Zurich Financial Services has unloaded its UK-based
venture capital firm, Gresham, The Times of London reports.  The
sell-off is seen to indicate that the insurer is living up to its
new strategy of focusing on core business.

Zurich will leave Gresham with GBP265 million of funds under
management. Two thirds of the assets is from existing assets
invested by Gresham for the parent company, the report says.  The
remaining amount is thought of as fresh capital from Zurich.

According to the report, five partners launched the buyout for
the firm, which specializes in investments of GBP5 million to
GBP75 million in medium-sized private businesses.  

Included in the list of bidders is chief executive Paul Marson-
Smith who considered the sale coincidental to Gresham's drive to
expand beyond its parent. The firm has gained approval of FSA to
raise external capital.

The reorganization fueled rumors that the company might follow
the sale with the unloading of UK-based Threadneedle Investments
with GBP45 billion under management.

Zurich Financial Services, which recorded a first-half loss of
GBP1.3 billion, also plans to initiate a GBP1.6 billion rights
issue next month.

The company acquired Gresham in 1998 after it bought British
American Financial Services.


CONTACT:  ZURICH FINANCIAL SERVICES
          Mythenquai 2
          8002 Zurich, Switzerland      
          Phone: +41-1-625-2525
          Fax: +41-1-625-3555
          Home Page: http://www.zurich.com


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


BALTIMORE TECHNOLOGIES: Announces Interim Results
-------------------------------------------------
Baltimore Technologies (http://www.baltimore.com)announced its  
interim results for the six months ended 30 June 2002.

Financial Highlights:

-Total revenues for H1 were GBP22.1 million (H1: 2001 GBP38.9
million).

-Gross Margin was 57.3% (H1: 2001:53.9%).

-LBITDAE (Loss before interest tax depreciation amortisation and
exceptional items) of GBP9.8 million (GBP39.7 million in H1:
2001).

-Non-cash write-offs totalling GBP20.3 million, following
impairment of goodwill, and amortisation charge (GBP503.8 million
in H1 2001).

-Daily sales outstanding (DSO) improved from 83 to 71.

-Cash Balance of GBP23.1 million at 30 June 2002 (H1: 2001
GBP53.9 million).

-Net operating cash outflow reduced to GBP9.4 million from
GBP43.1million in H1 2001.

-Headcount has reduced to 422 (H1: 2001 1177).

Business Highlights

-Major customer wins.

-Launch of new versions of flagship products

Bijan Khezri, Chief Executive of Baltimore Technologies plc
commented:

'We have made very real headway in rationalizing the business
during this half year, yielding significant cash and heavily
reducing the ongoing working capital requirements of the
business. Together, these two factors have strengthened our
financial position enabling us to focus on leadership in our core
business of authentication, digital signing and authorization
technologies, as our technology continues to be a key part in
leading government, finance and wireless infrastructure
projects.'

Baltimore Technologies' products, professional services and
solutions solve the fundamental security needs of e-business.
Baltimore's e-security technology gives companies the necessary
tools to verify the identity of whom they are doing business with
and securely manage which resources and information users can
access on open networks.  Many of the world's leading
organizations use Baltimore's e-security technology to conduct
business more efficiently and cost effectively over the Internet
and wireless networks.

Baltimore's products and services are sold directly and through
its worldwide partner network, Baltimore TrustedWorld. Baltimore
Technologies is a public company, trading on the London Stock
Exchange (BLM).

To view tables, click on this link:
http://bankrupt.com/misc/Baltimore2.pdf

Chairman's Report

For the first time since the end of the financial year 2000, I am
pleased to report results that are in line with expectations.
This half year Baltimore has made good progress with the
restructuring, and with a net cash balance at 30 June 2002 of
GBP23.1 million we do not anticipate the need for any cash
raising exercise. We believe that the company will become EBITDA
positive during the course of H1 next year.

Financial Highlights

As a number of disposals were made during the period a true
comparison to the six months ended 30 June 2001 is difficult.
These results include the contribution from Content and Baltimore
Technologies Japan only until 31 March 2002 and the contribution
from the operations of Baltimore Technologies Pty Ltd until 31
May 2002.

Total revenues for H1 2002 were GBP22.1 million a decrease of 43%
compared to the same period last year. Licence revenues for the
period were GBP8.4 million and accounted for 38% of total revenue
in H1 2002 compared to 47% in H1 2001. Services revenue for H1
2002 of GBP11.0 million, decreased by 34% over H1 last year.

EMEA, APAC and the US accounted for 61%, 22% and 17%,
respectively, of total revenue in the first half of 2002 compared
to 51%, 25% and 24% in the same period last year, which reflects
the decreasing level of business being generated outside of EMEA,
in particular in the US.

Gross Profit Margin of 57% is up from 54% in the first half of
2001, reflecting the increased focus on profitable business.

LBITDA (before exceptional items) of GBP9.8 million improved from
GBP39.7 million in H1 2001, due to the reduced cost base and the
success in focusing on more profitable business. Operating
expenses before exceptional items for H1 2002 were GBP38.6
million, representing a decrease of 79% from GBP181.3 million.
This reflects the impact of the restructuring efforts made.
Exceptional charges in the period totaled GBP17.7 million and
comprised net losses on the sale of former subsidiaries or their
assets of GBP10.6 million and amortization arising on the
impairment of goodwill of GBP7.1 million.

The Company had a cash balance at the end of the period of
GBP23.1 million, having received GBP16.2 million (before costs)
from the sale of the Content business, the sale of shares held in
Baltimore Technologies Japan and the sale of the Australian
operation. The cash out flow was GBP14.3 million over the same
period (including GBP1.3 million in capital expenditure and
rationalization costs and
GBP3.7 million in divestment costs).

The necessity for making a further goodwill impairment charge of
GBP7.1 million (GBP389.0 million H1 2001), which is a non-cash
item, has arisen principally to ensure compliance with FRS 11
reflecting the further fall in the value of acquisitions made in
2000 as a result of the global economic downturn, and the
continuing lower valuations for technology companies. Following
this further Goodwill impairment charge, the remaining intangible
balance in respect of acquisitions is GBP16million.

Management Changes

Phil Smith was appointed as Chief Financial Officer in March, and
Chris Bunker retired as a non-executive director after the Annual
General Meeting. John Cunningham, the senior independent
director, has taken over the chairmanship of the audit committee
in place of Chris Bunker. Currently there are no plans to appoint
any additional non-executive directors.

Outlook

Following the restructuring, the Board and the management team
remain confident that despite the current economic climate, there
is a profitable opportunity for the Company's authentication,
digital signing and authorization technologies.

Chief Executive's Report

During the half year, Baltimore's position as a high-end Public
Key
Infrastructure (PKI) based security provider has been reinforced.

Baltimore's leadership in addressing the security challenges
arising from authentication, authorization and digital signatures
in distributed and open environments across a multitude of IT
platforms has been confirmed in high end government and finance
projects the Company has won during the first half.

After almost 12 months, the restructuring is close to completion
and the Company has reached an important milestone in rebuilding
the business.

Business Highlights

In Finance, contracts have been signed with leading companies
including ING, BBS, and the Czech Savings Bank and others. In the
Government sector, new contracts were signed with the Czech Post,
the Ministry of Defence in Italy, supranational government
institutions in Europe and various government institutions in
Asia-Pacific. In the healthcare sector, there have been wins with
one of the largest pharmaceutical companies in Europe and a large
healthcare company in the US. In the UK, we signed an agreement
in the insurance sector and this may indicate the emergence of
the insurance market embracing public key-based security
solutions.

As a reflection of the overall poor market conditions for
authorization technologies, sales of our SelectAccess product
have been below expectations. However, there has been encouraging
demand in Australia and Asia. We believe that with a total of
around 30 worldwide SelectAccess customers so far, this provides
a promising platform for taking SelectAccess successfully forward
as both a stand-alone product as well as a core technology for
our integrated Trusted Business Solutions.

Innovative Technologies Brought to Market

During the period we have continued investing in our technology
and introduced significant enhancements to our existing flagship
products, UniCERT and SelectAccess.

In April, Version 5.0 of SelectAccess, introduced the first
commercially available product in its class to leverage the
Security Assertion Mark up Language standard (SAML) for cross-
organizational Single Sign On (SSO) and securing Web Services.
SelectAccess 5.0 facilitates extending working relationships
across different platforms and organizations.

In June, UniCERT Version 5.0 was released, introducing innovative
enhancements, such as XML Key Management Specification (XKMS) to
public key authentication technology, by adding new features that
enhance usability, improve the cost-of-ownership, and allow for
faster integration and interoperability across a multitude of
platforms.

Partners continue to play an increasingly important role in our
commercial success as our core technologies emerge as an
integrated solution for high-end IT infrastructure. Our Microsoft
Gold Partner membership is one example as well as our
contribution to the major standards bodies for web services
security where Baltimore continues to influence and shape the
future.

The completion of the development of the Trusted Business
Solutions Suites, to be launched during the fourth quarter of
2002, is an important milestone for our company. Leveraging our
core technologies together with technology partnerships to
provide preconfigured, blueprinted 'out-of-the-box' security
solutions for network, web and data applications will address the
cost, ease-of-use and ease of deployment sensitivities of an
increasingly important customer segment. In particular, the
Suites shall provide promising new business opportunities to our
partners.

Restructuring

As part of the restructuring program, we have reduced our
headcount from 562 on 31 December 2001 to 422 on June 30 2002 and
382 on August 31 2002. This is significantly below the target set
in August last year. We will continue to take action to ensure
Baltimore's long-term competitiveness.

The first half saw the completion of disposals totaling
GBP26.5million, being the sale of Content Technologies, of which
GBP12.0 million was receivable in cash; GBP4.7 million from the
reduction in our stake in Baltimore Technologies Japan of which
cash of GBP2.9million has been received; and the sale of our
Australian operation which raised a further GBP1.3 million in
cash.

We have achieved a significant reduction in our ongoing property
costs with surplus office space being disposed of wherever
possible and we now have 13 offices worldwide compared to 38 at
the beginning of this year. Exceptional costs of GBP10.6 million
relating to the downsizing in this half-year are included in the
operating expenses.

Looking into the future, we believe that PKI - despite still
being primarily an early-adopter technology - will emerge during
the course of the next 12-18 months as the world's leading
business and government security mechanism. In particular,
existing public sector projects around the world do reinforce
this belief.

As a leader in addressing security challenges in complex and
distributed IT environments where openness, integration and
scalability concerns stand out, we believe that web services, as
they evolve, will play to the strengths of our core expertise.
Baltimore Technologies, as a technology provider, will become an
increasingly important ally for major IT companies as cross-
platform security challenges in authentication, authorization and
digital signing need to be addressed.

Exceptional Items

Administrative expenses include exceptional items of GBP17.7
million.

General administrative expenses include loss on disposal of
GBP9.5 million relating to the divestment of Baltimore
Technologies Japan and Baltimore Technologies Pty. Ltd., gain on
disposal of GBP0.4 million relating to Content, gain on the sale
of assets of Chubb Information Security Ltd. amounting to GBP0.6
million and write-off of investment in Baltimore Technologies
Japan of GBP2.1 million.

Amortization includes a charge for the impairment of goodwill of
GBP7.1 million. The revised carrying value of the asset was taken
as the higher of the value in use and net realisable value in
accordance with Financial Reporting Standard 11 - Impairment of
Fixed Assets and Goodwill.

Contact Information:

Alastair Hetherington/Edward Bridges
Financial Dynamics
Tel: +44 207 831 3113


BRITISH AIRWAYS: Faces Ejection From FTSE 100 Index
---------------------------------------------------
British Airways, a member of the royal family of European
airlines, may be ejected from the FTSE 100 index, Times Online
reports.  The airline finished as the 111th biggest company in
Britain by market capitalization on September 10.

The FTSE Indices Committee is scheduled to meet Tuesday to
confirm British Airway's demotion to mid-cap company.  Eviction
from the prestigious FTSE club also means exclusion of the
company from numerous institutional investors' tracker funds.

The expulsion, however, is not entirely seen as a bad light for
British Airways according to the report.  FTSE 100 had evicted
three quarters of original listed companies since its launching
18 years ago.  

The report also told the airline not to worry about getting the
"British" name in disgrace as there are only three companies left
in the club with a patriotic name: British American Tobacco,
British Land and British Sky Broadcasting Group.

From London's Heathrow and Gatwick airports, the airline flies
about 360 aircraft to nearly 270 destinations in some 97
countries. It owns minority stakes in Australia-based Qantas and
Spain's Iberia.

CONTACT:  BRITISH AIRWAYS PLC
          Waterside, Harmondsworth
          London UB7 0GB, United Kingdom      
          Phone: +44-20-8562-4444
          Fax: +44-20-8759-4314
          Toll Free: 800-545-7644
          Home Page: http://www.british-airways.com
  

BRITISH ENERGY: Shares Dropped Despite Government Aid
-----------------------------------------------------
Shares in British Energy dropped despite the GBP410 million
financial aid provided by the British government to keep it from
going into administration.   

The aid allowed the company's shares to resume trading after
being suspended Thursday evening.

The share's market value fell to just GBP173.8 million from more
than GBP2 billion 12 months ago.  The share price plunged 65% to
28p.

The company admitted it needs a permanent cash injection of at
least GBP280 million to be able to refinance GBP200 million of UK
and North American bonds and GBP265 million of other banking
facilities due to be replaced next year, Financial Times reports.

The aid will allow the nuclear generator to negotiate a longer-
term rescue plan with the government.  The government, however,
has reiterated that its focus in providing the funds is to secure
energy supply for the country and not to rescue the company.

Bondholders are still concerned the nuclear generator could still
default on debt maturing next year because those obligations are
not covered by the t410m financing facility.

Jens Jantze, credit analyst at Bear Stearsn, meanwhile said, "A
financial guarantee is not the solution. British Energy needs to
shore up its UK operations by cutting expenses dramatically with
government support."

British Energy provides more than 20% of UK's electricity needs.

CONTACT:  BRITISH ENERGY PLC
          3 Redwood Crescent, Peel Park
          East Kilbride, Strathclyde G74 5PR
          United Kingdom      
          Phone: +44-135-526-2000
          Fax: +44-135-556-5656
          Home Page: http://www.british-energy.com


BRITISH ENERGY: Labour Faces 'Political Crunch' for Bailout Move
----------------------------------------------------------------
British Energy may have successfully steered clear of financial
disaster, but its patrons who engineered the GBP450-500 million
bailout now face a barrage of criticism that even echoes from
within the Labour Party.

The Financial Times says the government of Prime Minister Tony
Blair could face "serious political problems" if the crisis is
not resolved quickly.  

Liberal Democrat trade and industry Spokesman Vince Cable sees
the move as a potential "financial black hole of Millennium Dome
proportions," referring to the ambitious tourism and
infrastructure project in Greenwich, which the government is now
peddling.

"This is a dangerous and foolish step by the government, having
allowed itself to be bullied and blackmailed by a bankrupt
company," Mr. Cable was quoted by the Financial Times as saying.

Liberal Democrats claim British Energy should have been allowed
to go into administration if it could not pay its debts.  "There
is large excess capacity in the nuclear power supply industry, so
the public need not worry about the lights going out," the group
said.

British Energy blames its financial problems on low electricity
prices.  Several electricity traders, customers and suppliers
have already refused to sign new contracts with the company.  
Before the bailout, the company warned ministers that it needs an
additional cash of GBP280 million annually to ensure its long-
term survival as a public company.  This amount is GBP100 million
more than the company had needed before.

The bailout afforded the company several weeks to search for a
solution to its cash crisis.  It is not yet known what steps it
will take.  Rumors abound that it faces imminent insolvency.

Allies of the government, including Martin O'Neill, chairman of
the trade and industry select committee, defended the bailout,
saying the government could not have let the generator go bust.

"I don't think it had any choice," he said.
      
He called on ministers to act urgently to show that the deal was
"not just a sticking plaster job," by putting it into the context
of future energy policy.  The white paper setting out the
government's nuclear power strategy in the wake of British
Energy's problems should be issued sooner, rather than later, Mr.
O'Neill said.

"If there is any good out of this crisis, it (will be to) shake
the government up a bit and accelerate the decision-making
process," he said.


BRITISH ENERGY: Contract Reveals Enron as Creditor
--------------------------------------------------
The administrators of bankrupt U.S. energy trader Enron emerged
as creditors of British Energy under a 15-year power purchase
contract. The revelation came as a surprise to some holders of
British Energy's debts.

The contract is a legacy of Welsh regional electricity firm
SWALEC, which British Energy administrated briefly in 2000,
Reuters says.  The deal allowed British Energy to buy power at
prices some 80 percent above U.K. prices at that time.  

According to the report, the purchase was made to avoid British
Energy's risk in the face of falling wholesale power prices
through SWALEC's sales to end user customers.  Included in the
contract, however, is a Power Purchase Agreement to buy bulk
electricity from Teesside Power Station, a business 50% owned by
Enron's subsidiary Teesside Power Holdings.

British Energy later abandoned the scheme and sold SWALEC to
Scottish & Southern Energy Plc, which did not want the PPA
contract.

Under the contract the nuclear generator is bound to buy about
one fifth of the output of the 1,875 megawatt station.

Struggling U.S. company Aquila is one of the shareholders of
Teesside Power Station, the largest privately owned gas-fired
facility in the world.

British Energy posted its liability at GBP349 million (US$544
million) in its March 2002 accounts.

CONTACTS:  BRITISH ENERGY PLC
           3 Redwood Crescent, Peel Park
           East Kilbride, Strathclyde G74 5PR
           United Kingdom      
           Phone: +44-135-526-2000
           Fax: +44-135-556-5656
           Home Page: http://www.british-energy.com


BRITISH ENERGY: Notification of Major Interest in Shares
---------------------------------------------------------
Name of company: British Energy Plc

Name of shareholder having major interest: Fidelity International
Limited

Number of shares/ amount of stock disposed: 6, 279,167

Percentage of issued class: 1.01%

Class of Security: 44 28/43P ordinary shares

Date company informed: September 9 2002

Contact Information:
Paul Heward
Tel: 01355 262 201

Name of authorized company official responsible for making this
notification: Paul Heward

Date of notification: September 10 2002

REGISTERED/NOMINEE NAME       MANAGEMENT COMPANY     SHARES HELD

CHASE NOMINEES LTD            FISL                   9,531,686
CHASE MANHATTAN BANK LONDON   FISL                   1,615,370
CHASE NOMINEES LTD            FPM                    943,000
MSS NOMINEES LTD              FIL                    18,750,881
CHASE NOMINEES LTD            FIL                    502,036
CHASE MANHATTAN BANK LONDON   FIL                    411,100
HSBC CLIENT HOLDINGS NOMINEE
(UK) LIMITED                  FIL                    315,100
BANK OF NEW YORK LONDON       FIL                    6,706,000


COLT TELECOM: Announces GBP20 Million Bond Buyback      
--------------------------------------------------
COLT Telecom Group plc (http://www.colt.com),a leading European  
provider of business communication services, said today that it
had purchased a further GBP20 million of COLT bonds for a cash
outlay of GBP11 million.

The purchases were undertaken by COLT Telecom Finance Limited as
set out below. COLT Telecom Finance Limited has no intention to
sell the notes it has purchased and arrangements may be made in
due course to cancel such notes.

COLT may purchase additional bonds in the future.

The following bonds have been purchased.

USD15.5 million accreted principal amount of our USD314 million
12% Senior Discount Notes due December 2006;

GBP1.0 million face amount of our GBP50 million 10.125% Senior
Notes due November 2007;

EUR0.2 million face amount of our EUR76.7 million 8.875% Senior
Notes due November 2007;

EUR3.7 million face amount of our EUR306.8 million 7.625% Senior
Notes due July 2008;

EUR4.0 million face amount of our EUR320 million 7.625% Senior
Notes due December 2009;

EUR1.1 million accreted principal amount of our EUR368 million 2%
Senior Convertible Notes due December 2006; and

EUR4.9 million accreted principal amount of our EUR402.5 million
2% Senior Convertible Notes due April 2007.

In aggregate COLT has now purchased:


USD79.8 million accreted principal amount of our USD314 million
12% Senior Discount Notes due December 2006;

GBP9.0 million face amount of our GBP50 million 10.125% Senior
Notes due November 2007;

EUR10.2 million face amount of our EUR76.7 million 8.875% Senior
Notes due November 2007;

EUR56.4 million face amount of our EUR306.8 million 7.625% Senior
Notes due July 2008;

EUR55.3 million face amount of our EUR320 million 7.625% Senior
Notes due December 2009;

EUR16.8 million accreted principal amount of our EUR306.8 million
2% Senior Convertible Notes due August 2005;

EUR93.7 million accreted principal amount of our EUR295 million
2% Senior Convertible Notes due March 2006;

EUR91.1 million accreted principal amount of our EUR368 million
2% Senior Convertible Notes due December 2006; and

EUR102.0 million accreted principal amount of our EUR402.5
million 2% Senior Convertible Notes due April 2007.

Contact Information:

John Doherty
Director
Investor Relations
Telephone: +44 20 7390 3681
Email: jdoherty@colt.net
   

GLOBAL CROSSING: Judge Gerber Appoints Fee Review Committee
-----------------------------------------------------------
To monitor the fees incurred in these Chapter 11 cases, Judge
Gerber appoints a fee committee, nunc pro tunc to January 28,
2002, at the request of Global Crossing Ltd., its debtor-
affiliates, the Official Committee of Unsecured Creditors, the
Senior Secured Lenders, and the United States Trustee for Region
II.

The Fee Committee is authorized to review and analyze fee
statements and fee applications submitted by professionals
appointed by this Court in these Chapter 11 cases and retained by
the Senior Secured Lenders whose fees and expenses are charged
against the Debtors.  The Fee Committee is also tasked to verify
whether these professionals complied with the appropriate
procedures approved by the Court.

Composition of Committee

The Fee Committee will consist of a businessperson appointed by
and representative of each of the Creditors' Committee, the
Senior Secured Lenders, the U.S. Trustee and the Debtors.  Each
member of the Fee Committee will have one vote on all Fee
Committee matters.  In the event of a 2-2 tie on any Fee
Committee matter, the U.S. Trustee will, after further
consultation with the members of the Fee Committee, determine the
issue.

Judge Gerber directs each constituent group to advise the
Debtors' attorneys of the identity of and contact information for
their appointee to the Fee Committee and the designated contact
person for each of such constituent group's professionals.  Then,
the Debtors' attorneys will provide each appointee with a list of
all appointees to the Fee Committee, including their contact
information, a list of all designated contact persons for each of
the Retained Professionals, including their contact information,
and a copy of each Retained Professional's retention application
and previous fee statements and interim fee applications, as
applicable.  The Bank Group Professionals will provide copies of
their fee statements for the period from January 28, 2002 through
June 30, 2002 directly to each of the appointees to the Fee
Committee.

The Fee Committee will elect one member to serve as Chairperson.
The Chairperson will be responsible for scheduling meetings,
collecting and distributing fee statements and applications and
reporting to the Court as may be required.  The attorneys who are
Retained Professionals for the Chairperson will be responsible
for:

-- submitting and prosecuting expense reimbursement applications
for each member of the Fee Committee, and

-- representing the Chairperson on behalf of the Fee Committee
with respect to a Fee Dispute.

In the event that the Fee Dispute involves Retained Professionals
for the Chairperson, Judge Gerber rules that an alternate member
selected by the Fee Committee will act in place of the
Chairperson with respect to that Fee Dispute.

In appointing their representative to the Fee Committee, each
constituent group is requested to appoint a senior businessperson
with final decision-making authority on fee issues, but whose
service on the Fee Committee will not adversely affect or disrupt
the businessperson's organization.

In the event a member of the Fee Committee resigns, the
constituent group represented by that resigning member may
designate a successor member.  The Chairperson will be
responsible for distributing contact information for the
successor member.  The Court may alter the membership of the Fee
Committee at any time.

The Joint Provisional Liquidators

Phillip Wallace, Jane Moriarty and Malcolm Butterfield, as the
Joint Provisional Liquidators appointed by order of the Supreme
Court of Bermuda, or their designee may attend and fully
participate at meetings of the Fee Committee, except that the
JPLs will have no vote on Fee Committee matters and will not be
members of the Fee Committee.

The JPLs will be given notice of Fee Committee meetings and will
be served with copies of all documents relevant to Fee Committee
matters in the same manner and at the same time as the Fee
Committee members.

The JPLs are requested to advise the Debtors' attorney of the
identity and contact information of their designee for purposes
of receiving notice of Fee Committee matters and documents
relevant to Fee Committee meetings.

The JPLs' participation at Fee Committee meetings will not
subject them to the jurisdiction of this Court.

Compensation of Committee Members

Judge Gerber emphasizes that Fee Committee members will receive
no compensation for their service or time expended on Fee
Committee matters.  However, all Fee Committee members are
entitled to reimbursement for reasonable, documented out-of-
pocket costs and expenses.  These Fee Committee expenses include
travel and lodging expenses for attendance at Fee Committee
meetings, but do not include professional fees incurred by
professionals advising Fee Committee members.

Budgets

Judge Gerber directs each Retained Professional to prepare a
budget of the fees it expects to incur over the course of each
two-month period during the pendency of these Chapter 11 cases.
Each Budget will set forth in reasonable detail the services
anticipated to be provided over the next two-month period and the
fees to be incurred.  These services will be allocated by task
codes established by the Debtors and approved by the Fee
Committee.

Each Budget will state whether the Retained Professional's client
has approved the Budget.  To the extent a Budget includes a
variance in respect of a given month contained in a previous
Budget, the Budget should include an explanation of the variance
to the extent the variation is material.

On or before September 15, 2002, the Fee Committee will serve on
each Retained Professional a:

-- timetable for the submission of all Budgets,

-- a description of how the Fee Committee will assess the
reasonableness of each fee application, and

-- a description of any additional information or particular
format that the Fee Committee may desire for Budgets.

The first of these Budgets will be due to the Fee Committee 15
calendar days after the Fee Committee has approved the task codes
and given notice of the task codes to the Retained Professionals,
for the months of August and September.  Each subsequent Budget
will be due by no later than the first business day of every
month thereafter.

To preserve confidentiality, all Budgets or other information
provided by any of the Retained Professionals will be submitted
on a confidential basis, subject only to:

-- the Fee Committee's right to use the Budget on prior notice in
connection with any fee dispute, and

-- the Retained Professional's right to seek a protective order
or similar protection of information it claims confidential.

The Budgets will be submitted and analyzed with the understanding
that they are based on assumptions and that it is not possible to
predict the volume or course of the multitude of matters or
issues that arise in Chapter 11 cases and related litigation.
Upon the filing by a Retained Professional of its interim fee
application, it will provide the Fee Committee with a written
explanation of the major reasons for differences between its
budgeted fees for a given month and its actual fees. This
explanation will be held in strict confidence by the Fee
Committee and will not be disclosed to any other party including
the member's constituency or its advisors.  On the submission of
a monthly fee statement, interim fee application or final fee
application, the Fee Committee will discuss with the Retained
Professional any variance between the fees actually incurred and
those projected to be incurred in the Budget.

Subsequent Retentions

Any professional retained by Court order will be bound by this
Order and the Fee Order and will immediately contact the Fee
Committee to establish the submission of Budgets and fee
statements or fee applications.  The Fee Committee is authorized,
upon appropriate application, to retain any professionals
required to effectively discharge its duties.

Committee Exculpation and Indemnification

Judge Gerber rules that the Fee Committee and each of its members
are:

-- appointed officers of the Court with respect to the
performance of their duties on the Fee Committee, and

-- provided the maximum immunity permitted by law from civil
actions for all acts taken or omitted in the performance of
their duties and powers on the Fee Committee.

No person or entity will commence an action against the Fee
Committee or any of its members in connection with Fee Committee
matters except in this Court.  No person or entity will commence
an action against the JPLs with respect to their attendance at or
participation in Fee Committee meetings or matters except in the
Supreme Court and the JPLs will be accorded immunity from suit to
the same extent as the Fee Committee.

The Fee Committee and each of its members are indemnified by the
Debtors' estates for losses or costs of defense incurred as a
result of acts taken or omitted, in each case in good faith, in
the performance of their duties as a member of the Fee Committee.

Any and all claims or causes of action not instituted against the
Fee Committee or any of its member prior to the 10th day after
entry of an order determining the last final fee application in
these cases will be forever barred and discharged.  All persons
and entities will be enjoined from prosecuting these claims in
any manner thereafter. (Global Crossing Bankruptcy News, Issue
No. 20; Bankruptcy Creditors' Service, Inc., 609/392-0900).

Contact Information:

Ken Simril
Vice President
Investor Relations
Global Crossing
Telephone: +1 310 385-3838
FAX: +1 310 385-3720
E-mail: investors@globalcrossing.com


INVENSYS: Asset Management Solution Helps Hendrick Motorsports
--------------------------------------------------------------
Hendrick Motorsports, one of the largest teams on the NASCAR
racing circuit has selected Avantis, a unit of Invensys
Production Management, to provide an innovative solution to
assure reliability and manage costs on their fleet of NASCAR
racecars. Avantis will work with Hendrick to automate management
of repair and replace schedules so that Hendrick can obtain
maximum utilization of each part without jeopardizing
performance. The Avantis solution will also help reduce
procurement and inventory costs.

Hendrick Motorsports Applications Manager Jim McKenzie likens
asset management to an engine tune-up: "Most people bring their
cars in for tune-ups at the recommended mileage, whether the car
actually needs it or not. It would be much more efficient if they
could monitor the performance of their cars and replace parts
only when needed. With the Avantis solution we anticipate doing
this, which will allow us to reduce costs, while assuring peak
performance," he said.

On its 65-acre racing complex in Charlotte, NC, Hendrick
Motorsports builds racecars from start-to-finish for such noted
NASCAR drivers as, Jeff Gordon, Terry Labonte, Jimmie Johnson and
Joe Nemechek. Each year Hendrick Motorsports builds more than 700
engines on-site, and leases some of those engines to other teams.
Since 1984, Hendrick has grown from a one-car race team to a six-
team operation that has won five of the last seven NASCAR Winston
Cup Championships. Innovation has always been a driving force at
Hendrick Motorsports, and its current application of asset
management technology to motor sports is one of the most recent
examples of that innovation.

Asset management software is typically used to improve
performance, reduce costs, and maximize efficiency in
manufacturing applications. It addresses such issues as "How long
will an engine part last?" and "When does it make sense to
replace an engine rather than keep repairing it?" Hendrick
officials saw the potential benefit in using asset management
technology to answer these and other questions relevant to their
application. By monitoring wear and usage closely and tracking it
in a database, they calculated they could replace parts as needed
to reduce costs and improve performance at the same time.

After reviewing the feasibility of asset management and resources
available, Hendrick Motorsports chose Avantis because of the
company's demonstrated expertise and precise attention to
Hendrick's situation. "We searched for six months and could not
find a solution that would meet our critical requirements," says
McKenzie. "After looking at a number of companies, including our
incumbent vendor, we were introduced to Avantis. Avantis won us
over with their in-depth knowledge of our business and approach
to meeting specific requirements," says McKenzie. "At Hendrick
Motorsports teamwork is the name of the game. Avantis not only
demonstrated a good team effort in presenting their company and
capabilities, but also showed they could partner with us to
analyze our needs and develop an on-target solution. We see the
Hendrick-Avantis team as a winning combination," says McKenzie.

Expectations of Asset Management

Hendrick Motorsports will utilize the Avantis solution for onsite
tracking of engine, suspension and brake assembly components to
determine life span and failure analysis while better managing
costs. "Hendrick has always been a leader in developing engine
technology based on at-track data," says McKenzie. "A key to our
developmental process is reliability analysis. With Avantis we
can build a detailed history of engine performance based on
monitoring actual conditions. This allows us to readily review
and analyze symptoms, and the cause of failure. The first step to
finding the solution is identifying the problem," says McKenzie.

"With Avantis we also expect a substantial cost savings in parts
inventory by reducing the number of parts we carry, and how often
and when we order," says Hendrick Motorsports Controller Scott
Lampe. "We can fully automate the entire procurement process,
including requisitions, purchase orders, expediting, receiving,
quotations, contracts, and invoice matching."

Lampe sees further efficiency and cost savings will be achieved
through improved inventory practices. "With Avantis'solution,
we'll be able to better control tracking of a large number of
specialty items that are subject to unpredictable demand. The
system automates the reorder process by using calculated minimum
stock levels and replenishment lead times," says Lampe.

As part of the business arrangement, Hendrick Motorsports is
licensed to use Avantis products and capabilities, and will
receive ongoing service and support to assure attainment of the
predetermined objectives. They expect to have Avantis ready, up
and running for February 2003 Daytona 500.

"Since coming onto the NASCAR scene, we have established
ourselves as a company of many firsts. We can add another notch
in our steering wheel as the first company to use asset
management in the NASCAR circuit," McKenzie adds.


PACE MICRO: Releases Chairman's Statement on Trading Conditions
----------------------------------------------------------------
Chairman's Statement:

Trading conditions remain difficult, with uncertainty continuing
in our major markets.

We have taken steps to cut costs, and have recently completed
most of the planned reduction in our headcount.  The total
savings from the restructuring are expected to amount to
approximately o15 million in a full year, and will be effective
from September 2002.

We continue to invest in new products and technology so that Pace
remains fully able to meet the needs of our customers and to
retain a leadership position in our market.

As I said in my July statement, we will be loss-making in the
first half of this financial year. We still anticipate some pick-
up of demand in the second half, and we remain confident about
the longer-term prospects for digital television. However, the
rate of deployment will depend on the willingness of the
broadcasters and operators to fund the required levels of
investment.

Contact Information:

Pace Micro Technology
Victoria Road
Saltaire Shipley
West Yorkshire DB18 3LF
Tel: (01274) 532000
Fax: (01274) 532010
email : investor.relations@pace.co.uk


PACE MICRO: Notification of Directors' Interests
------------------------------------------------
Name of company: Pace Micro Technology plc

Names of directors: John Howard Dyson, Timothy James Fern and
Neil Gaydon

Notification relates to above-named directors

Date of granted options: 30 August 2002

Period during which or date on which exercisable: 1 October 2005
to 31 March 2006

Total amount paid (if any) for grant of the option: Nil

Description of shares or debentures involved: class, number
J H Dyson 14,000 ordinary 5p shares
T J Fern 14,000 ordinary 5p shares
N Gaydon 14,000 ordinary 5p shares

Exercise price (if fixed at time of grant) or indication that
price is to be fixed at time of exercise: 18p

Total number of shares or debentures over which options held
following this notification:
J H Dyson 1,023,433 ordinary 5p shares
T J Fern 689,000 ordinary 5p shares
N Gaydon 317,498 ordinary 5p shares

Contact Information:
Anthony Dixon
Tel: 0113 298 3012

Name and signature of authorized company official responsible for
making this notification:
Anthony Dixon Company Secretary

Date of Notification: 2 September 2002


PACE MICRO: Partners With TANDBERG TV to Develop IPTV System
------------------------------------------------------------
Pace Micro Technology (http://www.pace.co.uk)and TANDBERG  
Television have combined their expertise to create an innovative
low-cost entry-level television system for broadband IP
operators. To build on the strength of this close working
relationship, TANDBERG Television has joined Pace ` s IPTV
Partner Programme.

TANDBERG Television develop Internet Protocol Television (IPTV)
head-end systems that are compatible with all Pace ` s IPTV
products including the DSL4000, IP500 and the new IP400 family
range being launched at IBC 2002. The combined TANDBERG
Television and Pace solution is ideal for operators seeking a
cost effective entry-level system for the rapid deployment of
basic services. Pace ` s range of IPTV products are  IP-based
digital home gateways designed to allow telecom service providers
and IP broadband network operators to offer revenue generating
interactive TV services to consumers.

However, in order for viewers to view TV and change channels
using Pace ` s IPTV home gateways an Electronic Programme Guide
(EPG) is needed and for the EPG to exist, user interface graphics
must be created and defined. TANDBERG Television through their
entry-level portal (iTTV Portal) for fibre-to-the-home and xDSL
systems, extracts and presents EPG information into a format
compatible with the Pace IPTV gateway  - HTML or JavaScript. The
EPG is then displayed using a browser built into the gateway.
Pace ` s IPTV gateway and TANDBERG Television ` s iTTV Portal
software provide a complete, cost-effective and simple solution
for broadband operators to deliver IPTV services.

Key benefits of the TANDBERG Television iTTV Portal include its  
" fast zapping " , the automatic EPG with thumbnails and its
support for multiple VOD servers. The portal also supports a
scalability path to larger middleware solutions such as iMagic TV
and Orca. The TANDBERG Television iTTV Portal gives the head-end
administrator full control over all the home gateways in the
network in terms of subscriber management and programme line-up
as well as other services.

In joining Pace ` s IPTV Partner Programme, TANDBERG Television
join a growing number of major IP-based interactive TV
manufacturers, network equipment, middleware developers,
application developers, encoder providers and content security
solutions in the programme. The programme allows Pace and its
partners to develop and market a comprehensive suite of high-
demand interactive TV solutions and streamline the process of
deploying these services to the rapidly expanding market of
interactive TV over IP.

Gary Stephenson, Head of Global Alliances for Pace ` s IPTV
Division commented:  "  We are delighted to  be working with
TANDBERG Television on a combined solution that provides a high
quality, cost effective platform for broadband operators. The
TANDBERG Television system with the Pace home gateway provides a
perfect platform for those wishing to start in IPTV at minimum
cost. We are also pleased to welcome  TANDBERG Television to our
IPTV Partner Programme and look forward to the exciting results
of our work. "

Johnny Dolvik, Cable and Broadband Segment Director from TANDBERG
Television added:  " Pace is an ideal partner to work with on our
iTTV Portal. Their vast experience in IP home gateway technology
make it possible for us to provide an easy to administer and low
cost solution for broadband operators.

Contact Information:

Pace Micro Technology
Victoria Road
Saltaire Shipley
West Yorkshire DB18 3LF
Tel: (01274) 532000
Fax: (01274) 532010
Email : investor.relations@pace.co.uk
   

PACE MICRO: Presents Earlybird Compatible Home Gateway
------------------------------------------------------
At IBC 2002 (Amsterdam, 13-17 September) Pace Micro Technology
(http://www.pace.co.uk)will showcase its Earlybird compatible  
home gateway(set-top box).  Earlybird, an end-to-end system for
new satellite operators created by TANDBERG Television and Irdeto
Access, can now utilise Paces CDTV.410 or DTVA to complete the
solution for the delivery of television services into consumer
homes.

TANDBERG Television and Irdeto Access have developed Earlybird in
response to a shift in the satellite market, which is seeing
audiences fragment and niche broadcasting and local language
platforms grow.  As a result Earlybird is targeted at operators
with between 20,000 and 100,000 subscribers and is designed to
minimise start-up costs and time to market.  The Pace CDTV.410
and DTVA complements this approach as a low-cost flexible home
gateway that is already completely compatible with the Earlybird
network infrastructure.

Patrick Rabu, VP business development for Pace EMEA and APAC,
commented: "Earlybird takes on the challenge faced by smaller
operators worldwide to rollout their services as fast as possible
at a cost that is commercially realistic.  Operators who choose
the Earlybird route to market and select the Pace home gateway
can be confident that they have made a cost and time efficient
choice for their service deployment."

Roger Bolton, satellite solutions segment manager at TANDBERG
Television added:  "Together TANDBERG Television and Irdeto
Access have designed a system that minimises the investment
satellite operators must make to launch new services.  The cost
of the set-top box or home gateway is a significant part of the
overall expenditure and Pace has addressed this in the design of
its CDTV.410 and DTVA, making Pace a logical choice for the
Earlybird system."

Richard Fenton, Manager Channel Management at Irdeto Access,
commented: "The Pace home gateway strongly compliments the
objectives of the original Irdeto Access and TANDBERG concept of
offering a user friendly, economic and reliable entry system for
a broadcast operator. Therefore, we are happy to see them in the
Earlybird package."

Contact Information:

Pace Micro Technology
Victoria Road
Saltaire Shipley
West Yorkshire DB18 3LF
Tel: (01274) 532000
Fax: (01274) 532010
Email : investor.relations@pace.co.uk


RAILTRACK GROUP: To Distribute Loyalty Bonuses to Key Employees
---------------------------------------------------------------
Signal and track firm Railtrack will distribute bonuses proposed
to encourage key employees to remain in the company and help it
through reorganization, BBC reports.

"The scheme was put in place to help administrators fulfil their
initial objective - to ensure that the railways continue to run,"
a spokesman from administrators Ernst & Young was quoted saying
in the report.

Ernst & Young disclosed that 435 employees would receive the
first half of GBP6.7 million (US$10.4 million) loyalty awards.

Bob Crow, general secretary of the Rail, Maritime and Transport
union commented, "It's astonishing to see such high loyalty
bonuses paid out when the railway has been run so disgracefully."

The issue of bonuses, which was given only to a fraction of the
firm's 12,000 employees, has added to the increasing unrest over
pay in many sectors.  The bonus scheme is scheduled to give out a
further trance before the end of March.

Richard Middleton, engineering director, whose responsibilities
included the upgrading of the West Coast main line, is seen as
one of the beneficiaries of the scheme.  Some observers have
reportedly attributed Railtrack's collapse to cost overruns in
the project.

Railtrack, which collapsed October 7 last year, is expected to
emerge from administration early next month.

CONTACT: RAILTRACK GROUP PLC
         Regent's Place, 338 Euston Road
         London NW1 3BT, United Kingdom      
         Phone: +44-20-7557-8000
         Fax: +44-20-7557-9000
         Home Page: http://www.railtrack.co.uk


WORLDCOM: Announces Its Post-Restructuring Management Plan
----------------------------------------------------------
WorldCom, Inc. announced its first steps toward a post-
restructuring management structure. WorldCom, through it's
President and Chief Executive Officer John Sidgmore, today
formally announced it is actively seeking a permanent chief
executive officer for the company. Mr. Sidgmore always intended
for his appointment in April 2002 to be an interim solution in
response to the swift departure of WorldCom's former CEO. When
Mr. Sidgmore was appointed as CEO, his charter was to turn around
a great company and to restructure its financial position. Mr.
Sidgmore had always intended to bring the company to a point of
stability and to hire a new CEO.

Mr. Sidgmore will remain in his current position as president and
CEO until a successor can be retained, which the company believes
can be accomplished in an accelerated timeframe. At that time Mr.
Sidgmore will return to his role as vice chairman. Bert Roberts
will continue in his role as Chairman of the Board.

"I have concluded that having moved WorldCom through the initial
phase of the bankruptcy process now is the appropriate time for
the company to initiate a search for a long-term CEO," said
Sidgmore. "By returning to my vice chairman role, after the
search is complete, I, along with Bert Roberts will be able to
remain active in a strategic capacity while our new CEO manages
the day-to-day operations of the company and the overall
bankruptcy process."

Members of the company's Board of Directors, including Mr.
Sidgmore and Mr. Roberts, will lead the executive search. The
Official Committee of Unsecured Creditors will also actively
participate in the process. As part of this process, WorldCom
will retain a preeminent executive recruiting firm to assist in
the search for a new president and CEO.

Additionally, WorldCom has been adding highly qualified members
to its Board of Directors and will continue to seek additional
members who bring a diverse set of skills to its existing Board.
C.B. Rogers, Jr., former CEO of Equifax, Inc. was elected to the
WorldCom Board on August 29, 2002.

The company remains on track to restructure and emerge from
Chapter 11 protection in mid-2003. Both the Board of Directors
and the Creditors Committee support the search process and the
new management approach.

Over the past three months, the company has continued to make
progress, obtaining financing commitments, adding new Board
members, appointing a new chief financial officer and a chief
restructuring officer, and developing a plan to emerge from
Chapter 11 in a timely fashion.

The management team remains focused on customer and employee
communications. The transition to a new management team will be
seamless to its employees and more than 20 million worldwide
customers. The executive search will be swift and should help
WorldCom emerge more quickly from Chapter 11 as a healthy, viable
entity.


WORLDCOM: Employees Received Inappropriate Advice From WorldCom
---------------------------------------------------------------
Parker & Waichman announces that it will soon file suit against
WorldCom, several of its former corporate executives and Salomon
Smith Barney.

Parker & Waichman currently represents hundreds of current and
former WorldCom employees. These complaints will charge that
WorldCom violated section 10(b) of the Securities Exchange Act of
1934 and Rule 10b-5 promulgated there under, by issuing a series
of materially false and misleading statements. WorldCom has
publicly announced that instead of the $1.4 billion in profits
the Company reported in 2001 and $130 million in the first
quarter of 2002, it actually lost a considerable amount of money
during those same periods.

To create the false profits, WorldCom, under the management of
Mr. Ebbers and Mr. Sullivan, booked basic operating costs as
capital expenditures. This resulted in reduced expenses, and
allowed WorldCom to report false profits instead of losses. This
practice was in clear violation of Generally Accepted Accounting
Principles.

Additionally, Salomon Smith Barney will be named in the
complaints alleging that Salomon Smith Barney's Buckhead
(Atlanta), Georgia office inappropriately advised WorldCom
employees while acting as WorldCom's exclusive employee stock
option administrator. Salomon Smith Barney brokers in this office
often encouraged WorldCom employees to convert their stock
options to stock and transfer those shares into a margin account
so they could buy more, failing to offer any defensive or
diversification strategies.

These brokers based their deceitful recommendations on favorable
WorldCom stock analysis from former Salomon Smith Barney
telecommunications analyst Jack Grubman. The complaint will
allege that Jack Grubman issued "Buy" recommendations for
WorldCom stock without any rational economic basis. Furthermore,
Salomon Smith Barney failed to disclose that it was issuing "Buy"
recommendations to obtain investment banking business from
WorldCom. The failure to disclose such material information
obscured the blatant conflicts of interest that prevented Salomon
Smith Barney and Jack Grubman from providing independent
objective analyses.

The complaint will also allege that:

-- Salomon Smith Barney failed to use and recommend protective
strategies like: Cashless Collars, Zero-Cost Collars and
Purchasing Puts and Calls as hedge

-- Salomon Smith Barney failed to supervise and ensure lawful
compliance at its offices in Buckhead, Georgia

-- Salomon Smith Barney encouraged employees to exercise options
and place shares in margin accounts to buy more shares to pay
taxes

-- Salomon Smith Barney had an inadequate and untrained team to
handle
all WorldCom employees which did not and could not give
individualized advice

-- Jack Grubman continued his strong buy recommendation even
after WorldCom's problems were discovered by other analysts, and

-- Salomon Smith Barney brokers used Jack Grubman's "strong buy"
ratings as a reason to keep WorldCom employees from selling stock
and to encourage them to buy more shares.


WORLDCOM INC: BP Seeks Stay Relief to Set Off Mutual Obligations
---------------------------------------------------------------
According to James S. Carr, Esq., at Kelley Drye & Warren LLP, BP
International Limited and Worldcom Inc., entered into a Global
Services Agreement on November 30, 1999, pursuant to which the
Debtors formed BP Amoco Professional Services Organization.  The
organization was created to administer, integrate and manage, on
an exclusive basis, the global telecommunications needs of BP
International and all of its worldwide affiliates.  The Debtors
and BP entered into several basic forms of agreements with
various categories of third party vendors, each of which had been
providing telecommunications services to BP prior to the
execution of the Agreement, in order to:

-- facilitate the Professional Services Organization's ability to
perform under the Agreement;

-- ensure that BP obtains the requisite level of
telecommunications services in locations where the Debtors
and its affiliates could not, themselves, supply the
telecommunications services to BP; and

-- effectuate an orderly transition to the Professional Services
Organization of the administration of all of BP's
telecommunications services.

Mr. Carr relates that the first of these forms of agreement
involved assignments pursuant to which BP assigned to the Debtors
BP's existing contracts between BP and certain third party
vendors for the supply of telecommunications services. The third
party vendors had supplied these services to BP prior to the
execution of the Global Services Agreement.  In other cases,
pursuant to letters of agency and associated agreements, BP
appointed the Debtors as BP's agent with respect to certain
contracts between BP and other third party vendors for
telecommunications services supplied to BP prior to the execution
of the Global Services Agreement.  The net effect of these
transactions with the third party vendors was to permit the
Debtors to administer all of the pre-existing telecommunications
services provided to BP under all of the pre- existing agreements
with the third party vendors.

Under the terms of the agreements with the third party vendors,
Mr. Carr explains that BP remains obligated to pay the amounts
due to the third party vendors under all of the pre-existing
telecommunications services agreements between BP and the
respective third party vendors.  According to information
provided by the Professional Services Organization, as of the
Petition Date, the third party vendors were owed $6,612,742.01,
which includes $3,519,607 that BP had paid to the Debtors on
account of third party vendors Claim, but that the Debtors had
failed to remit to the applicable third party vendors.

Contemporaneously with the execution of the Agreement, Mr. Carr
informs the Court that BP and the Debtors entered into the US
Call-Off Contract, dated November 30, 1999, which governs all
matters relating to telecommunications services to be provided by
the Debtors in the United States.  Pursuant to the US Agreement,
BP is responsible to pay all amounts due to the >Debtors with
respect to telecommunications services provided in the United
States.

In accordance with the US Agreement, Mr. Carr relates that BP
paid $3,519,607 to the Debtors on account of prepetition third
party vendors Claims.  The Debtors, however, failed to remit the
BP Payments to the third party vendors as required by the US
Agreement.  As a result, as of the Petition Date, the Debtors
were, and continue to be, in breach of the US Agreement and owe
BP, the BP Payments.  In addition, BP owes the Debtors an amount
well in excess of the BP Payments under the US Agreement on
account of prepetition telecommunications services provided by
the Debtors.

By this motion, BP asks the Court to modify the automatic stay to
permit it to offset the BP Payments against the BP Obligations.
To eliminate the risk of double payment, BP seeks the Court's
authority to:

-- set off any additional amounts that BP actually pays to the
third party vendors and to the Debtors against any amounts
    that BP owes to the Debtors; and

-- withhold payments to the Debtors, while prohibiting the
Debtors from invoicing or collecting from BP any amounts for
prepetition services identified on third party vendors' invoices
actually paid directly to the third party vendors by
BP.

BP will provide written notice to the Debtors of these payments.

Mr. Carr contends that cause exists to modify the automatic stay
because:

-- BP's secured claim under Section 506(a) of the Bankruptcy
Code, which arose by virtue of its valid right of setoff
against the Debtors, lacks adequate protection; and

-- BP will suffer immediate and irreparable harm if it is not
permitted to exercise its right of setoff. (Worldcom Bankruptcy
News, Issue No. 6; Bankruptcy Creditors' Service, Inc., 609/392-
0900)

Worldcom Inc.'s 11.25% bonds due 2007 (WCOM07USR4), DebtTraders
reports, are trading at 23 cents-on-the-dollar. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=WCOM07USR4for  
real-time bond pricing.


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

        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, Ma. Cristina Canson and Jean Claire Dy,
Editors.

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

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

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

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


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