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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

                 Friday, September 27, 2002, Vol. 3, No. 192


                              Headlines

* A U S T R I A *

CYBERTRON TELEKOM: Creditors Accept Composition Proceedings

* F R A N C E *

ALCATEL: Alcatel Space Announces Restructuring
VIVENDI UNIVERSAL: Board Announces Strategic Direction
VIVENDI UNIVERSAL: Canal+ Group Disposes of Canal+ Technologies
VIVENDI UNIVERSAL: To Unload Telepiu for EUR1 Billion
VIVENDI UNIVERSAL: To Delay Sale of Publishing Assets

* G E R M A N Y *

DEUTSCHE TELEKOM: Kabel Deutschland to Boost Profitability
MOBILCOM AG: To Announce Massive Job Cuts, Say Reports

* I R E L A N D *

AIB PLC: In Talks With M&T Bank to Sell Allfirst, Say Insiders

* I T A L Y *

FIAT SPA: Considers Further Workforce Reduction to Raise Cash

* P O L A N D *

ELEKTRIM SA: Announces Changes in Supervisory Board of Subsidiary
TELEKOMUNIKACJA POLSKA: Announces Board's Current Report

* U N I T E D   K I N G D O M *

AORTECH: Business in Danger of Being Broken up or Sold
AORTECH: Shares Fall on First-Half Turnover Warnings
BEDE PLC: Announces Interim Results for the First Half of 2002
BIOCOMPATIBLES INTERNATIONAL: Announces Holdings in Company
BRITISH ENERGY: Rumors of BNFL's Interest Buoy Share Value
CABLE AND WIRELESS: Interests in Ordinary Shares
CABLE AND WIRELESS: Interests in Ordinary Shares
EDIOS PLC: Announces Major Interests of Directors
FUTURE NETWORK: Announces Changes in Board
INDIGOVISION GROUP: Announces 4th Quarter Financial Results
LASTMINUTE.COM: Announces Director Dealings
MARCONI SA: Marconi to Power the Telkom ADSL Roll Out
P&O PRINCESS: Announces Directorate Changes
ROYAL SUN: Restructuring to Affect Between 150 to 200 Staffers
SCIPHER PLC: Announces Holdings in Company
WORLDCOM INC.: To Sell Pentagon City to TST for US$101 Million


=============
A U S T R I A
=============


CYBERTRON TELEKOM: Creditors Accept Composition Proceedings
-----------------------------------------------------------
A concept to fulfill settlement quota and continue the company's
operations was approved by a large majority of the creditors
Dividend in composition 40% within 24 months, thereof 7% in cash
On June 27, 2002, the Board of Management of CyberTron Telekom AG
was forced to file for composition proceedings with the
Commercial Court of Vienna after Telekom Austria had switched off
the interconnection lines between the telecommunications network
of CyberTron and Telekom Austria AG. At yesterday's composition
meeting within the period of 90 days, the company's proposals to
meet the composition requirements and thus continue the company's
operations were accepted by more than 98 percent of the creditors
present. The proposal provides for a fulfillment of a 40%
dividend in composition, which will be paid out to the creditors
in a 7% cash quota and 3 further installments within the next 24
months.

Operating activities of CyberTron Telekom AG will be cut
substantially during this period, on the one hand to reduce the
entrepreneurial risk, which is in stark contrast to fulfilling
the composition requirements, and on the other hand to adjust the
cost situation to the new size of the company and make available
a maximum of liquid funds to meet the requirements as fast as
possible. Essentially, the administration of the company's assets
will be the prime task in the coming 24 months.

Within the framework of the restructuring of the company and
securing liquidity to fulfil the composition requirements, the
51% share held in CyberTown Information Technology GmbH was sold
on September 23, 2002.

CyberTron will remain listed in the Vienna Stock Exchange during
the period of the composition proceedings.

On September 19, 2002, Advent International Corporation, USA,
informed the company that the share of the funds of Advent
International has declined below 5% of the share capital of
CyberTron Telekom AG.

To see latest financial statements:
http://bankrupt.com/misc/Cybertron.pdf

CONTACT:  CyberTron Telekom AG
          Christian Forstner
          Company Spokesman
          Tel.:(+43-1)919 29-1202
          Fax:(+43 1) 919 29-1359
          E-mail: investor@cybertron.at


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

ALCATEL: Alcatel Space Announces Restructuring
-----------------------------------------------
Alcatel Space announced an industrial reorganization plan at its
French facilities in Cannes, Nanterre, Toulouse and Valence to
cope with the steady decline in the space sector.

Restructuring measures, which will be applied within the scope of
Alcatel's worldwide cost reduction programare a further workforce
reduction of about 400 during the first half year of 2003 in
order to adapt to market trends.

Furthermore, Alcatel Space decided to launch an industrial
conversion project for its Valence plant, which has 250
employees. This project will be carried out in consultation with
unions, to conduct jointly a study to explore the reconversion of
the production unit by seeking external industrial workloads with
partners.

Alcatel Space will work closely with labor representatives to
reduce its workforce and carry out the Valence industrial
conversion project, and will do so in a socially responsible
manner. In particular, it will offer early retirement, leave for
training and employees outplacement. Alcatel Space's workforce in
France has 5200 people at the end of 2002.

Alcatel Space ranks among the world's leading space systems prime
contractors.   Leveraging its dual expertise in civil and
military applications, Alcatel Space develops satellite
technology solutions for telecommunications, navigation, optical
and radar observation, meteorology, and scientific applications.
The company is also Europe's number one prime contractor for
Earth observation, meteorology and navigation ground segments, as
well as space systems operations. A fully-owned subsidiary of
Alcatel  (100%), Alcatel Space generated 2001 revenues of 1.4
billion Euros
and has 6,500 employees.

Alcatel  (Paris:  CGEP.PA and NYSE: ALA) designs, develops and
builds innovative and competitive communications networks,
enabling carriers, service providers and enterprises to deliver
any type of content, such as voice, data and multimedia, to any
type of consumer, anywhere in the world. Relying on its leading
and comprehensive products and solutions portfolio, stretching
from end-to-end optical infrastructures, fixed and mobile
networks to broadband access, Alcatel's customers can focus on
optimizing their service offerings and revenue streams. With
sales of EURO 25 billion in 2001, Alcatel operates in more than
130 countries.


VIVENDI UNIVERSAL: Board Announces Strategic Direction
------------------------------------------------------
Vivendi Universal (Paris Bourse: EX FP; NYSE: V) announced that
its Board of Directors met September 25, 2002. It noted the
resignation of six of its members: Mrs. Esther Koplowitz, Mr.
Richard Brown, Mr. Eric Licoys, Mr. Samuel Minzberg, Mr. Simon
Murray and Mr. Serge Tchuruk.

On the proposal of the Chairman, Mr. Jean-Rene Fourtou, the Board
elected Mr. Fernando Falco y Fernandez de Cordoba as a non-
executive director. The Board of Directors is thus reduced to a
more streamlined 12 members. Mr. Jean-Rene Fourtou asked the
Human Resources Committee to propose a complete reorganization of
the various Board Committees at the next Board Meeting with a
view to finalizing them and, if necessary, bringing them into
line with the new European and U.S. standards that are currently
in development, as well as the Bouton report on corporate
governance in France.

Following the meeting, Mr. Jean-Rene Fourtou, Chairman and CEO of
Vivendi Universal, declared:

"The Board has noted with satisfaction the decisive progress made
during the past three months. We are leaving the crisis behind
us. The main sources of loss have been reduced, sold or halted,
or are about to be. The reduction of the company's debt has
started through a major asset disposal plan that will be carried
through with determination with the target of achieving at least
12 billion euros over 18 months. Vivendi Universal Publishing
future disposal is part of this plan.

The Board has approved the decision to enhance the value of the
company's entertainment businesses and develop them. It is a
market in which Vivendi Universal is already among the world
leaders. To meet that challenge, our objective is to create a
true partnership, on both sides of the Atlantic, with the senior
executives and talented employees that are the key to these
businesses. The partnership will be based on financial agreements
and management methods."

Jean-Rene Fourtou went on to add: "With regard to Cegetel, the
Board was pleased with the company's excellent results, and we
are continuing to study every possible solution that would be
favorable to our shareholders and compatible with our primary
financial objectives. It must be understood that we do not have
the capacity to take back majority control of Vivendi
Environnement. We, therefore, must make optimum use of our
interest in Vivendi Environnement, and examine, in close
collaboration with its management, how the relationship between
Vivendi Universal and Vivendi Environnement should develop.

The Vivendi Universal Chairman concluded: "The employees have
experienced moments of great anxiety during the past year. I want
to thank each of them, on behalf of the company, for the
significant work they have accomplished and to acknowledge their
professionalism."

1. We are leaving the crisis behind us.

In a very unfavorable economic climate, marked by the Enron and
Worldcom scandals, the downgrading of Vivendi Universal's status
by the rating agencies and the banks' sudden loss of confidence
in the company's future, brought the financial crisis to a height
in early July. The cash crunch came when the company had an
untenable level of debt given the available cash flow (35 billion
euros at June 30, 2002, of which 19 billion euros for Media and
Communication), with repayment terms that were too tight and
could not be rescheduled.

The situation was resolved in two phases.

    - On July 10, 2002, Vivendi Universal obtained a short-term
credit line of 1 billion euros from a group of seven
international banks. This facility pushed back the risk of
immediate default, and gave the company time to negotiate
refinancing so that it could meet its needs over a longer term.

    - On September 18, 2002, the banks agreed a 3 billion euro
medium-term credit line, replacing the 1 billion euro facility
obtained in July. This loan takes the form of three tranches,
each one secured, with repayment dates spread over the period
from November 2003 to December 2004 at the latest. It will give
the company a breathing space pending receipt of revenue from the
disposal of assets.

    The risk associated with the company's cash position is
therefore in the process of being eliminated, especially since
negotiations on extending the repayment date of the Vivendi
Universal Entertainment credit line (1.6 billion euros) from
November 2002 to November 2003 are at a very advanced stage.

2. The main sources of loss have been reduced, sold or halted, or
are about to be

The main sources of loss have been clearly identified. They have
been reduced, sold or halted, or are about to be: Canal+ Italy,
Poland, Benelux and Scandinavia are going to leave Vivendi
Universal's landscape. Vizzavi has been sold (excluding Vizzavi
France, which is now wholly owned). Scoot and Divento are in the
process of being closed.

The other Internet assets will be sold or integrated with the
businesses to which they report. In addition, measures have been
taken to reduce Paris and New York headquarters costs, as well as
communication and sponsorship expenditure.

3. The company is progressing in its debt reducing program
through a significant asset disposal plan that will be carried
through with determination

Within the next 18 months, Vivendi Universal is expected to sell
off assets worth 12 billion euros, of which divestments of at
least 5 billion euros will be completed within nine months. This
plan will return the company to a financial situation that should
earn it BBB/Baa2 status from the rating agencies.

The main assets in the disposals plan, subject to consultation
with employee representatives and labor unions, include:

-  Canal+ activities outside France (Italy, Poland, Benelux,
Scandinavia) and Canal+ Technologies;
-  The interest in the "new Canal+ above 49%";
-  Telecoms activities outside France (Poland, Hungary, Kenya,
etc.);
-  Internet activities;
-  Press (Comareg, Express-Expansion) and publishing (VU
Publishing);
-  Minority interests;
-  Miscellaneous assets (property, distribution, airplanes,
energy production, etc.);
-  Monetization of a minority stake of VU Games

With the exception of VUP, these are primarily non-core
businesses, which should have been sold off anyway due to the
difficulties involved in managing such a complex and disparate
range of activities.

Several disposals, for a total amount of around 1.1 billion
euros, have already been finalized.

In addition, Vivendi Universal confirms having received
acquisition proposals for Vivendi Universal Publishing (VUP) in
its entirety. These proposals are currently being studied, in the
best interest of the shareholders of Vivendi Universal, Vivendi
Universal Publishing and VUP employees.

Vivendi Universal specifically asked all potential acquirers to
include in their proposals commitments regarding the preservation
of VUP's French cultural heritage. These commitments will be made
public.

4. The entertainment businesses will be enhanced and developed

Vivendi Universal's aim is to streamline its consolidation scope.
The new Vivendi Universal is an entertainment company focused on
the creation of consumer content, and with two important minority
interests, Cegetel and Vivendi Environnement.

Vivendi Universal is among the world's leading media and
communication companies and is number one in Europe.
Entertainment (music, film, TV, parks and games) is its core
business. The company has excellent assets, strong prospects for
growth in these activities, high quality management teams and
creative talents, and outstanding brands (Universal and Canal+).
These will contribute to the enhancement of the media and
communication activities with the primary goal of creating
maximum value for all of its shareholders.

With regard to Cegetel, against the new backdrop created by the
expiry of the standstill clauses in the shareholder agreements,
Vivendi Universal is studying every possible solution that will
favor value creation, in accordance with terms that are
compatible with our priority financial objectives.

With regard to Vivendi Environnement, as Vivendi Universal cannot
take back majority control, the aim is to optimize our stake and
to examine, with Vivendi Environnement management, how
relationship between Vivendi Universal and Vivendi Environnement
should develop.

5. First-half 2002 financial statements

The Board of Directors approved the reviewed financial statements
for the first half of 2002. These financial statements will
replace the interim results published on August 14, 2002. The
full statements will be published in the usual way and made
available on www.vivendiuniversal.com in the Shareholders
section, as well as on the Investor Relations Website at
http://finance.vivendiuniversal.com.They will also be available
on request from the Shareholder Information Department.

6. The PwC assignment

The PwC assignment consisted of delivering some information to
the new general management about some specific aspects, but it
was not an audit of Vivendi Universal's accounts. To date, this
assignment has not revealed any malfunction of a nature to bring
the sincerity of the written financial information provided by
Vivendi Universal into question. On the contrary, it has revealed
the complexity of that information and has led to the
identification of ways and means of improving and coordinating
the procedures used by the various business units and the holding
company, in particular in terms of cash, Vivendi Universal
commitments, and basic accounting structures and processes. The
Board noted senior management's decision to take full account of
these recommendations and adopt the measures necessary for
implementing them as quickly as possible.

Important disclaimer

CONTACT:  VIVENDI UNIVERSAL
          Investor Relations
          Paris
          Laura Martin
          Phone: 917/378-5705
          Laurence Daniel
          Phone: +33 (1).71.71.1233
          New York
          Eileen McLaughlin
          Phone: +(1) 212/572-8961


VIVENDI UNIVERSAL: Canal+ Group Disposes of Canal+ Technologies
---------------------------------------------------------------
Canal+ Group, a Vivendi Universal (Paris Bourse: EX FP; NYSE: V)
subsidiary, sold its 89% stake in Canal+ Technologies to Thomson
Multimedia for E190 million in cash.

This transaction, approved by the respective Boards and which
still needs to be examined by the relevant competition
authorities, is part of Vivendi Universal's disposal of assets
program announced on August 19.

Thomson Multimedia is already a shareholder of Canal+
Technologies, together with Canal+ Group, Sun Microsystems, Sony
and Sogecable. Last April, Vivendi Universal and Thomson
Multimedia concluded a strategic partnership agreement in the
domain of digital media related to the fight against piracy,
broadband products and video services.

Canal+ Technologies will continue to provide technology and
services to Canal+ Group and its digital TV operators, as well as
to all the third-party operators with whom it is in business.

CONTACT:  VIVENDI UNIVERSAL
          Investor Relations:
          Paris
          Laura Martin
          Phone: 917/378-5705
          Laurence Daniel
          Phone: +33 (1) 71-71-1233
          New York
          Eileen McLaughlin
          Phone: 212/572-8961


VIVENDI UNIVERSAL: To Unload Telepiu for EUR1 Billion
-----------------------------------------------------
Media company, Vivendi Universal, agreed to sell Italian pay-
television unit Telepiu SpA for EUR1 billion (US$980 million),
according to Bloomberg.

The sale is part of Chief Executive Officer Jean-Rene Fourtou's
plan to raise EUR12 billion to cut the company's EUR19 billion
debt.  Mr. Fourtou is also planning to shed the media giant's
publishing business and stake in its game division.

News Corporation, the company negotiating to buy the asset, while
confirming the talks says, "no definitive agreement has yet been
signed."

Vivendi and News Corp had earlier agreed to a EUR1.5 billion
price for the asset, but News Corp.'s Rupert Murdoch later balked
at the price.

The sale of the business to News Corp is expected to lower
Vivendi's debt by EUR920 million according to Mr. Fourtou.

CONTACT:  VIVENDI UNIVERSAL
          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: To Delay Sale of Publishing Assets
-----------------------------------------------------
Media giant Vivendi Universal may delay the sale of Vivendi
Universal Publishing while it decides over the three bids offered
by consortia of investment funds and Lagardere SCA, Dow Jones
reports.

According to sources, the conglomerate failed to make an
immediate decision, as the bids were submitted only late Monday
and early Tuesday.  The company's Chairman, Mr. Jean-Rene
Fourtou, announced his strategic restructuring plans Wednesday.

One consortium of bidders comprise French bank Credit Agricole
SA's investment fund UI, U.S. investment fund Carlyle Group LP
and Eurazeo, a listed vehicle of Lazard bank.

The second group of bidders includes BNP Paribas's investment arm
PAI and U.S. fund Kohlberg Kravis Roberts & Co. L.P.

Lagardere also filed for the whole unit, instead of bidding only
for the French assets it had earlier signed interest to acquire.
The French media and aerospace group plans to immediately resell
the conglomerate's U.S. publishing house Houghtn Mifflin,
according to a source.

CONTACT:  VIVENDI UNIVERSAL
          Investor Relations
          Paris
          Laura Martin
          Phone: 917/378-5705
          Laurence Daniel
          Phone: +33 (1).71.71.1233
          New York
          Eileen McLaughlin
          Phone: +(1) 212/572-8961


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


DEUTSCHE TELEKOM: Kabel Deutschland to Boost Profitability
----------------------------------------------------------
Deutsche Telekom's cable subsidiary Kabel Deutschland is changing
its pricing structures and introducing new digital channels for
its customers.

Starting November 1, prices for both individual and business
customers subscribing to analogue cable will increase slightly in
response to changing market conditions; they had remained the
same for the past five years. The new pricing structure is
designed to boost Kabel Deutschland's profitability and to
provide greater transparency for consumers. It will also become
more attractive for first-time subscribers to sign up as Deutsche
Telekom's cable subsidiary is lowering its initial connection fee
by almost 100 percent to under EUR 30.

In the meantime, Kabel Deutschland is also offering additional
digital TV programs to its customers. Three of the digital
bouquets will consist of foreign channels from countries like
Italy, Poland and Turkey; another will offer German programs. A
fifth package with Russian-language channels is also being
prepared.

The new price scheme is valid in the company's remaining cable
units in Bremen/ Lower Saxony, Hamburg/ Schleswig-Holstein/
Mecklenburg-Western Pomerania (in northern Germany), Berlin/
Brandenburg, Saxony/ Saxony-Anhalt/ Thuringia (in the East),
Bavaria and Rhineland-Palatinate/ Saarland (in the South).

CONTACT:  DEUTSCH TELECOM AG
          Friedrich-Ebert-Allee 140
          53113 Bonn, Germany
          Phone: +49-228-181-0
          Fax: +49-228-181-8872
          Home Page: http://www.telekom.de


MOBILCOM AG: To Announce Massive Job Cuts, Say Reports
------------------------------------------------------
Troubled German telecom company, MobilCom, is expected to
announce over a thousand job cuts after a negotiation with
employee representatives according to reports.

AFX cited German daily Die Welt quoting a supervisory board
member saying that 800 jobs will be slashed at the company's
mobile phone operation and 400 will go at its UMTS third
generation mobile phone network business.

Earlier reports say MobilCom plans to freeze expansion of its
high-speed, multi-media, cellular network UMTS, as part of
restructuring plans.

As for a possible exit in the UMTS business, company sources say
the move is unlikely, as it would seriously reduce the value of
the group.  MobilCom is instead looking for a partner to build up
UMTS networks and services.

As before, spokesman Matthias Quaritsch refused to comment on the
report, saying, "We cannot confirm the figures, the management
and the works council are meeting on Friday to discuss the
restructuring concept, job cuts are a part of that."

CONTACT:  MOBILCOM AG
          Hollerstra�e 126
          D-24782 B�delsdorf, Germany
          Phone: +49-43-31-69-11-73
          Fax: +49-43-31-69-28-88
          Home Page: http://www.mobilcom.de


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


AIB PLC: In Talks With M&T Bank to Sell Allfirst, Say Insiders
--------------------------------------------------------------
Allied Irish Banks PLC is selling Allfirst Financial Inc. to M&T
Bank Corp for US$3 billion, The Wall Street Journal reports
citing people close to the talks.

The sale is expected to stabilize AIB's unit, which had been
involved in a GBP400 million frauds early this year. The
Baltimore-based subsidiary disclosed US691 million losses in
foreign exchange in dealings with John Rusnak.

Under the deal, Allied Irish would retain about 22% of the newly
combined company, although industry experts also foresee AIB
gradually abandoning the stake.

News of the divestment early in September buoyed AIB's shares.

According to a TCR-Europe report, analysts at Fox-Pitt, Kelton,
regarded the possible sale as "strategically positive."  It is
also hoped to allay rumors about the sale of AIB itself.


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

FIAT SPA: Considers Further Workforce Reduction to Raise Cash
-------------------------------------------------------------
Fiat Auto Chief Executive, Giancarlo Boschetti, who says the firm
has 20 to 30% excess manpower capacity, is considering further
job cuts to raise money for investment, says CNN.

"If you reduce capacity by 20 percent you can find money for
investment...That is what we are doing,'' CNN quotes Mr.
Boschetti's disclosure to reporters.

The chief executive admits the carmaker's structure is not
"ideal", adding that it is currently undertaking massive cost
reduction program.  He reiterated the company's plan to allot
EUR2.4 billion to EUR2.5 billion annually in developing new
products.

As for its Fiat Auto, the firm's head maintained an open answer
to the question whether the division would slash more employees.
Reports had came out earlier that Fiat SpA may dismiss as many as
6,000 employees in its auto unit in the coming months in order to
cut costs. The number represents 15% of the division's workforce.

Mr. Boschetti disclosed that the unit needed a minimum of 3.5%
overall cost reduction each year. Fiat Auto recorded an operating
loss of EUR823 million in the first half.

CONTACT:  FIAT SPA
          250 Via Nizza
          10126 Turin, Italy
          Phone: +39-011-686-1111
          Fax: +39-011-686-3798
          Toll Free: 800-804027
          Home Page: http://www.fiatgroup.com/e-index.htm


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


ELEKTRIM SA: Announces Changes in Supervisory Board of Subsidiary
-----------------------------------------------------------------
The Management Board of Elektrim S.A. announces that on 24
September 2002 an Extraordinary Meeting of Shareholders of
Elektrim-Volt S.A. (Elektrim's subsidiary) was held which made
changes in the Company's Supervisory Board.

The following persons were recalled from the Supervisory Board:
- Mr Maciej Radziwill - SB Chairman,
- Mr Andrzej Skowronski - SB Vice Chairman,
- Mr Jan S. Rynkiewicz - SB member
- Mr Jacek Walczykowski - SB member

The following persons were appointed to Elektrim-Volt's
Supervisory Board:
- Mr Ryszarda Opara - SB Chairman,
- Mr Wojciech Janczyk - SB member,
- Mr Tomasz Wypych - SB member.

Beginning 24 September 2002, the Supervisory Board of Elektrim-
Volt S.A. is composed as follows:
1. Mr Ryszard Opara - SB Chairman,
2. Mr Robert Butzke - czlonka RN,
3. Mr Wojciech Janczyk - SB member,
4. Mr Ryszard Kapluk - SB member,
5. Mr Tomasz Wypych - SB member.


TELEKOMUNIKACJA POLSKA: Announces Board's Current Report
--------------------------------------------------------
Pursuant to sub-article 81.1 point 2 of the Public Securities
Trading Act of 21 August 1997 (Polish Official Journal No. 118
item 754, as amended), the Management Board of Telekomunikacja
Polska S.A. ('TP S.A') hereby informs that from 1 October 2002 it
will introduce changes to the Tariff of International Long
Distance Telecommunications Services, involving reduction of:

1) charges for international long-distance call services to
fixed-line networks in the countries of Andorra, Austria,
Belgium, Cyprus, the Czech Republic, Denmark, Finland, France,
Germany, Gibraltar, Greece, Holland, Hungary, Ireland, Island,
Italy, Liechtenstein, Luxembourg, Malta, Monaco, Norway, Faeroe
Islands, Portugal, San Marino, Slovakia, Spain, Switzerland,
Sweden, the United Kingdom, Vatican down to PLN 1.20 + VAT per 1
minute call; and

2) charges for international long distance call services to
fixed-line and mobile networks in the countries of Australia,
Canada and the United States of America down to PLN 2.00 + VAT
per 1 minute call.

Charges for international long-distance call services to mobile
networks in countries named in point 1 above remain unchanged.

From 1 October 2002 TP S.A. also introduces changes to the
charges for its Poland Direct service involving reduction of:

1) charges for international long-distance Poland Direct call
services from fixed-line networks in the countries of Austria,
Belgium, Cyprus, the Czech Republic, Denmark, Finland, France,
Germany, Greece, Holland, Hungary, Italy, Luxembourg, Malta,
Norway, Portugal, Slovakia, Spain, Switzerland, Sweden, the
United Kingdom, Vatican down to PLN 1.20 + VAT per 1 minute call;
and

2) charges for international long distance Poland Direct call
services from fixed-line networks in the countries of Australia,
Canada and the United States of America down to PLN 2.00 + VAT
per 1 minute call.

The above-mentioned reductions of between 13.5% and 43% in the TP
S.A. international long-distance service prices should improve
accessibility of those types of services to TP S.A. subscribers,
both individuals and businesses.

CONTACT: Richard Moskalewicz
         Tel: (+48 22)661-74-26
         Fax:(+48 22) 828-74-59
         E-mail: emer@mailer.cst.tpsa.pl


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


AORTECH: Business in Danger of Being Broken up or Sold
------------------------------------------------------
Cardiac technology company, Aortech, may be broken up or sold to
improve shareholder value, The Scotsman reports.

According to the report, Aortech may either be sold out or open
its technology portfolio to welcome a number of joint ventures.
This would enable the comany to return its cash pile, estimated
at GBP8 million, to shareholder.

"At today's price it would be a fire sale...The real value lies
in the technology. New investment is not going to come from the
market place - it will be from third party access to the
technology," says chief executive Bill Strachan.

Mr. Strachan, who joined the company only in July, admits the
business needs fresh funding.

He also admitted commencing "strategic options" to reduce the
group's spending to GBP500,000 a month in order to conserve
reserves until fresh funding from investors arrive.

The restructuring of the company had reduced its workforce from
240 to 130, clossed its US sales division, and halved its
Australian operation.

The company disclosed its income for the interim period to 30
September would be 45 per cent down on the previous corresponding
period. Turnover is expected to come in at about o1.3 million,
while losses would be 40 per cent higher at about o7 million, due
to restructuring.

AorTech's shares fell 20.7 per cent, or 3p, to a meager 10p after
a profit warning.

To see latest financial statements:
http://bankrupt.com/misc/Aortech.pdf


AORTECH: Shares Fall on First-Half Turnover Warnings
-----------------------------------------------------
The shares of heart valve developer, AorTech, went down almost
38% on Wednesday, after the company announced a 45% drop in
first-half turnover due to reduced order and lower price of
products.

Shares skidded down to 9 p shortly before noon, valuing the firm
at only GBP3.4 million. At the start of the year the shares were
traded at a high of 200 p.

According to The Scottsman, Aortech predicts a turnover for the
six months to the end of September to be around GBP1.1 million.
The decline is attributed to lower sub-contract work and lower
heart valve prices in Europe and the Far East due to competition.

Sales at the firm's TruCCOMS heart monitoring system are also
lower-than-expected.  It predicted first-half losses to increase
by 40% to around GBP7 million. The loss includes around GBP1
million in charges relating to 50 job cuts at the Bellshill base
and the closure of its US office.

For the past two months, AORTech has been restructuring to
enhance the group's medium and long-term prospecs.  In August,
the firm forego a GBP36 million acquisition of the critical care
divisionof rival Becton Dickinson.  It is also planning to end
contract for TruCCOMs at the end of the month.


BEDE PLC: Announces Interim Results for the First Half of 2002
--------------------------------------------------------------
Bede plc a leader in the design and manufacture of specialist
X-ray instruments and associated software, is pleased to announce
its interim results for the six months ended 30 June 2002.

Key Points

- Turnover GBP3.1m (2001: GBP3.1m)
- Operating loss (pre depreciation, amortisation, exceptionals)
GBP1.5m
(2001: GBP0.3m)
- Loss before tax ( pre exceptionals ) of GBP1.7m (2001 : 0.1m)
- Loss per share 6.4p (2001: 0.4p)
- Order book GBP1.9m (2001: GBP3.1m)
- Continued investment in products, infrastructure and
distribution
-  Significant progress in development of new products for
diversified  markets

Post review period:

- Tokyo Electron Limited (TEL) appointed as sole distributor in
Japanese territory - TEL expects agreement to lead to sales of
around $20m within next three years

Norman Price, Chairman, said: 'The competitive strength of our
current product range and services has enabled the Group to
maintain revenues in a difficult and uncertain market
characterised by budget constrained purchasing delays.

Enhancements to our distribution network, including the important
distribution agreement with Tokyo Electron Limited in Japan, are
expected to contribute to future revenue growth in 2003.
Additionally, the Group expects to build upon early success in
targeting new markets and to achieve increasing revenues from new
products sold into pharmaceutical and other markets from the
second half of 2002 onwards.

The Group's strategic vision, together with an immediate focus on
controlling operational costs and a strong competitive position
in our core business underpins the potential of the Group and I
am confident that Bede will be an early beneficiary of any
improvement in prevailing market conditions.'

Chairman's Statement

Introduction

I report on the trading and performance of the Group for the six
month period to 30 June 2002.

Bede has continued to implement its strategic plans, outlined in
previous reports, resulting in a greatly increased
professionalism, a range of new products and increasing
competitiveness in our chosen markets.

The general economic downturn, and in particular the severe
depression in the Group's core semiconductor market, continues to
affect results in the short term. We are therefore concentrating
on completing the development of new products and distribution
channels in diversified markets and are taking sensible action to
control operational costs, without compromising the long-term
potential of the Group.

The ongoing development of our sales and distribution network,
including the recently announced distribution agreement with
Tokyo Electron Limited for sales in Japan, has resulted in
continued growth of the qualified prospect base and recent new
product introductions in the pharmaceutical and other markets
have been extremely well received. This, together with the recent
investment in all areas of the business, makes the Group
extremely well positioned to deliver strong growth from any
improvement in the semiconductor market and from sales of
products into new diversified markets.

General

The continuing depression in the semiconductor sector led to a
lower level of revenues in the second quarter as target customers
continued to postpone their capital expenditure. Nevertheless,
the Group's successful entry into the silicon-based semiconductor
industry provided a new source of revenue in the period that
mitigated the worst effects of the downturn, enabling sales of
GBP3.1m for the six months to 30 June 2002, comparable with those
achieved in the corresponding period of 2001 (2001 : GBP3.1m).
The generally poor sales climate in the period also led to
increased pricing pressure from the Group's competitors which,
together with some promotional discounting of new products,
resulted in a gross margin percentage for the period of 47% (2001
: 51%).

Other operating income and charges were in line with expectations
and loss before tax (pre exceptionals) was GBP1.7m (2001 :
GBP0.1m).

At 30 June 2002, the Group had net assets of GBP13.0m (2001 :
GBP15.0m) and cash reserves of GBP3.3m (2001 : GBP10.1m). The
cash expenditure in the past 12 months is consistent with that
expected from our stated investment strategy, such as the move
into a new factory in December 2001. The Group has also invested
in increased levels of inventory, including finished goods, to
enable it to capitalise quickly on the first upturn in demand.

Sales Outlook

Order bookings for the six month period were GBP3.2 million,
giving a book to bill ratio for the period of 1.0 (2001 : 1.2).
Sales for the first half, together with confirmed order bookings
at the end of the period were GBP5.0 million (2001 :
GBP6.2million).

Uncertainty in the pace of economic recovery, especially in the
semiconductor markets, is clearly affecting the short-term
outlook for the Group. In the medium to long term, a record level
of qualified prospects, together with recent investment in
infrastructure, products and distribution channels and a
successful entry into new diversified markets makes the Group
better placed than most to benefit from any improvement in market
sentiment.

The Group recently announced the completion of a distribution
agreement with Tokyo Electron Limited (TEL), a major global
semiconductor equipment manufacturer, for sales of Bede's
products in Japan.  This deal represents a major breakthrough for
the Group and is not only significant in terms of achieving
penetration into the important Japanese market, but is expected
to accelerate the acceptance of Bede's X-ray products worldwide
in the high-volume semiconductor manufacturing industry. TEL
expects to achieve sales of Bede products of around $20m in the
first three years of the agreement.

Operational Infrastructure

As previously reported, the Group now has in place an effective
business structure to support the expected significant future
growth in turnover and earnings.

In September 2002, the initial implementation of a new business
information system was successfully undertaken. The system will
cover all aspects of Group operations, including customer
relationship management, resource planning, financial reporting
and operational control.

This investment will become an integral part of the business
platform necessary to support future operating efficiencies,
controlled business growth and customer service.

New Business and Innovation

The Group has made significant progress in its development of new
products for diversified markets.

The first sale of the Bede MonitorTM product, a chemical and
pharmaceutical process development tool, was achieved in June
2002. Initial demonstrations of both Bede AnalystTM, a high
performance diffractometer for use in the pharmaceutical industry
and Bede ScanTM, a tool to measure defects in semiconductor
wafers, were met with favourable reaction and strong interest at
recent trade shows in America and Europe in July and August 2002.

Interest continues in the products of Reflex sro for extreme
ultra-violet (EUV) and X-ray lithography optics and other
applications. Increasing revenues are expected from the sale of
Reflex products from 2003 onwards.

The Group still expects modest revenues from its diversification
activities in the current financial year and significant sales in
2003, independently from any expected improvement in its core
semiconductor markets.

Summary

The competitive strength of our current product range and
services has enabled the Group to maintain revenues in a
difficult and uncertain market characterized by budget
constrained purchasing delays.

Enhancements to our distribution network, including the important
distribution agreement with Tokyo Electron Limited in Japan, are
expected to contribute to future revenue growth in 2003.
Additionally, the Group expects to build upon early success in
targeting new markets and to achieve increasing revenues from new
products sold into pharmaceutical and other markets from the
second half of 2002 onwards.

The Group's strategic vision, together with an immediate focus on
controlling operational costs and a strong competitive position
in our core business underpins the potential of the Group and I
am confident that Bede will be an early beneficiary of any
improvement in prevailing market conditions.

I look forward to sharing news of our development in future
reports.

Norman E Price
Chairman
25 September 2002

Independent review report by KPMG audit plc to Bede plc

Introduction

We have been instructed by the Company to review the financial
information for the six months ended 30 June 2002 which comprises
the consolidated profit and loss account, the consolidated
balance sheet, the consolidated cash flow statement and the
related notes 1 to 9. We have read the other information
contained in the interim report and considered whether it
contains any apparent mis-statements or material inconsistencies
with the financial information.

Directors' responsibilities

The interim report, including the financial information contained
therein, is the responsibility of, and has been approved by, the
directors. The directors are responsible for preparing the
interim report in accordance with the Listing Rules of the
Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should
be consistent with those applied in preparing the preceding
annual accounts except where they are to be changed in the next
annual accounts in which case any changes, and the
reasons for them, are to be disclosed.

Review work performed

We conducted our review in accordance with guidance contained in
Bulletin 1999/ 4: Review of interim financial information issued
by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of Group
management and applying analytical procedures to the financial
information and underlying financial data and based, thereon,
assessing whether the accounting policies and presentation have
been consistently applied unless otherwise disclosed. A review is
substantially less in scope than an audit performed in accordance
with Auditing Standards and
therefore provides a lower level of assurance than an audit.
Accordingly, we do not express an audit opinion on the financial
information.

Review conclusion

On the basis of our review we are not aware of any material
modifications that should be made to the financial information as
presented for the six months ended 30 June 2002.

KPMG Audit Plc
Chartered Accountants
Newcastle upon Tyne
25 September 2002

To view consolidated profit and loss account, refer to the
information sourced from UK-Wire/ RNS:
http://bankrupt.com/misc/bede2.pdf

CONTACT: Neil Loxley
         Chief Executive
         Bede plc :
         David Hall
         Finance Director
         Tel: +44 (0)191 332 4700
         Website: www.bede.co.uk


BIOCOMPATIBLES INTERNATIONAL: Announces Holdings in Company
-----------------------------------------------------------
The Company was today advised, pursuant to Section 198 of the
Companies Act 1985, that as at close of business on 20 September
2002 Lehman Brothers International (Europe) had an interest in
2,626,807 ordinary shares in the Company representing 5.92% of
its issued ordinary share capital.


BRITISH ENERGY: Rumors of BNFL's Interest Buoy Share Value
----------------------------------------------------------
Shares of British Energy picked up over rumors that state-owned
BNFL is interested in taking a stake in the troubled nuclear
generator. The shares closed at 21 pct at 22.2 pence Wednesday.
British Energy's sterling bond due March 2006 stood at 47 pct to
52 pct of par value.

According to sources of The Daily Telegraph, BNFL wants to take
stakes in the company for the reprocessing of the nuclear
generator's spent fuel.  British Energy earlier complained that
the 300 mln stg fee it pays to BNFL for the service hampers its
ability to compete in the UK market.

Both companies declined to comment on the report, though.

The company is currently pushing for a reduction in nuclear fuel
reprocessing charges by state-owned BNFL with the government.

Rating agency Fitch is observing developments in the negotiations
regarding company's liabilities to the reprocessor. The agency
sees a chance for the contracts of this obligations to change, a
movement that is expected to affect British Energy's GBP2.1
billion liabilities as well.


CABLE AND WIRELESS: Interests in Ordinary Shares
------------------------------------------------
The Company was notified on 24 September 2002 that on 20
September 2002 the Trustees of Cable and Wireless plc Employee
Share Ownership Trust disposed of 44,216 Ordinary Shares at a
price of o1.2675 per share.

Following the disposal, 55,467,331 Ordinary Shares are currently
held under the Trust. Robert Lerwill, Graham Wallace, Don Reed,
Adrian Chamberlain and David Prince (all being directors of Cable
and Wireless plc) in their capacity as members of the class of
beneficiaries under the Trust and Towers Perrin Share Plan
Services (GSY) Limited in their capacity as Trustees of the Trust
are deemed to have a non-beneficial interest in these Ordinary
Shares.

No Directors are disposing of any beneficial interests in the
Company.

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


CABLE AND WIRELESS: Interests in Ordinary Shares
-------------------------------------------------
The company was notified on 25 September 2002 that on 24
September 2002 the Trustees of Cable and Wireless plc Employee
Share Ownership Trust disposed of 450 Ordinary Shares at a price
of o1.16 per share and 35,000 ordinary shares at a price of o1.15
per share.

Following the disposal, 55,431,881 Ordinary Shares are currently
held under the Trust. Robert Lerwill, Graham Wallace, Don Reed,
Adrian Chamberlain and David Prince (all being directors of Cable
and Wireless plc) in their capacity as members of the class of
beneficiaries under the Trust and Towers Perrin Share Plan
Services (GSY) Limited in their capacity as Trustees of the Trust
are deemed to have a non-beneficial interest in these Ordinary
Shares.

No Directors are disposing of any beneficial interests in the
Company.


EDIOS PLC: Announces Major Interests of Directors
-------------------------------------------------
Eidos plc announces that, on 24 September 2002, Desktop ESOP
Trustee Limited, the Trustee of the Eidos employee benefit trust,
acquired 236,500 Ordinary shares in Eidos plc at a price of
115.75 per share.

All the executive directors of Eidos plc are (together with all
other employees) potential beneficiaries of the trust and are
therefore treated as becoming interested in the shares acquired
by the Trustee. The registered holder of the shares is Desktop
ESOP Trustee Limited.

This notification is made in accordance with paragraph 16.13 of
the Listing Rules.

CONTACT: Michael Arnouti
         Company Secretary
         Tel: 020 8636 3434

FUTURE NETWORK: Announces Changes in Board
------------------------------------------
The Future Network plc, the international specialist consumer
magazine publisher, announces the resignation from the board of
Brendan Clouston, who joined the board as a non-executive
director in June 1999.

Future's Chairman, Roger Parry, commented: 'Brendan has been a
non-executive director since the Company was listed on the London
Stock Exchange and the Board is grateful to him for his
contribution throughout this period.  With Future now in much
better shape, we fully understand Brendan's wish to spend more
time on his other business interests.  He leaves with our best
wishes and our thanks.'

CONTACT: The Future Network plc
         Greg Ingham
         Chief Executive
         Tel: 01225 442244
         John Bowman
         Finance Director


INDIGOVISION GROUP: Announces 4th Quarter Financial Results
-----------------------------------------------------------
IndigoVision Group plc (IND.L), a leading supplier of video
intellectual property, will announce its fourth quarter and
preliminary results for the period ended 31 July 2002 on Thursday
10 October
2002.

CONTACT: James Melville-Ross / Juliet Clarke
         Financial Dynamics
         Tel: 020 7831 3113


LASTMINUTE.COM: Announces Director Dealings
--------------------------------------------
Following an allotment of 579,374 additional shares by the
Company on 23 September 2002 to Vimal & Gillian Khosla in
satisfaction of an initial Earn-out Consideration payment
pursuant to the terms of the agreement for the acquisition of
Travelselect.com, lastminute.com plc has been notified by Vimal
Khosla, a Director of the Company, that 579,374 shares have today
been sold by himself and Gillian Khosla at a price of 93.0p per
share.

Vimal Khosla continues to have a remaining interest over the
6,457,423 shares (2.74% of the issued share capital of the
Company) issued to himself & Gillian Khosla at the time of the
acquisition of Travelselect.com Limited in April 2002; the
acquisition was satisfied solely by the issue of shares by
lastminute.com plc to the Vendors.

CONTACT: lastminute.com plc
         Martha Lane Fox
         Group Managing Director
         Tel: 020 7802 4498


MARCONI SA: Marconi to Power the Telkom ADSL Roll Out
-----------------------------------------------------
Marconi is to play a key role in the deployment of broadband
communications and services in South Africa. The company is to
supply and install Telkom South Africa's first commercial
Asymmetric Digital Subscriber Line (ADSL) network under a frame
contract that will run initially for two years with a value that
will depend on subscriber demand.

The ADSL deployment is a key phase in Telkom's preparations for
its imminent initial public offering and the deregulation of the
South African telecommunications market. Telkom is targeting
residential, small and medium-sized enterprises and the small-
office home-office market with new ADSL services, including high-
speed Internet access with always-on connections on an
incremental basis. ADSL will enable faster downloads, file-
sharing across remote IT networks and the ability to access
Internet-based broadband entertainment services, including games,
video and music.

Richard Bicker Caarten, Managing Director, Marconi SA, said:
"Marconi is proud to be able to partner with Telkom in providing
a world-class broadband network and its associated services to
South Africa. We believe broadband services can offer South
Africans a plethora of valuable applications from commercial uses
to distance learning, telemedicine to online gaming. This
contract is in line with Marconi's drive to supply Africa with
broadband networks capable of providing services that can benefit
the continent both socially and economically."

Under the contract, Marconi will supply and install its Access
Hub high-density DSLAM (Digital Subscriber Line Access
Multiplexer) along with its ServiceOn Access network management
platform. DSLAMs, usually located in an operator's central
office, are network devices that connect multiple customer
Digital Subscriber Lines (DSLs) to a high-speed backbone using
multiplexing techniques. The ServiceOn Access platform allows for
efficient network management. When a fault is detected, ServiceOn
Access signals an alarm and automatically re-routes the traffic
(be it voice, data or otherwise) to avoid service disruption. The
fault alarms are routed directly to the person accountable for
that section of the network and from there the fault is
immediately forwarded via e-mail, fax or even SMS to the nearest
technician, along with comprehensive instructions for
rectification of the fault. This maintains the integrity and
reliability of network service levels.

Marconi's Access Hub high-density DSLAM and ServiceOn Access
management system are core to Telkom's broadband roll out. They
will enable Telkom to:

* Provide a high-speed access network for delivery of
* Remotely manage all elements of the network (wired,
wireless, copper and fibre) on a single platform,
* Aggregate all traffic types into a single solution that
includes Asynchronous Transfer Mode (ATM) switching and
Internet Protocol (IP) routing.

"This agreement demonstrates the flexibility and competitive
strengths of Access Hub high-density DSLAM," said Graham Sykes,
VP Product Marketing and Business Development, Broadband Systems.
"It indicates that Marconi technology assists customers in
generating significant new revenue streams by cost effectively
delivering value-added high-speed services. This follows
Marconi's contract wins with Telecom Italia, where we are
supplying 700,000 ADSL and SHDSL lines (Asymmetrical and
Symmetrical High-density Digital Subscriber Lines)."

Marconi plc is a global telecommunications equipment and
solutions company headquartered in London. The company's core
business is the provision of innovative and reliable optical
networks, broadband routing and switching and broadband access
technologies and services. The company's aim is to help fixed and
mobile telecommunications operators worldwide reduce costs and
increase revenues.

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

CONTACT:  Patrick Murphy
          Tel: +44 (0) 115 906 4151
          Email: patrick.murphy@marconi.com


P&O PRINCESS: Announces Directorate Changes
-------------------------------------------
The Board of P&O Princess Cruises plc announces that it has asked
Lord Sterling who was scheduled to retire from the Board on 22nd
October, to continue as Chairman until the position of the Group,
following the regulatory process, is concluded.

His agreement follows the Board being informed by Mr. Peter Foy,
currently Deputy Chairman, that he wishes to stand down from that
role for personal reasons, but will continue as a non-executive
Director. Sir John Parker, currently a non-executive Director,
will take over as Deputy Chairman, with immediate effect.

Commenting on his decision, Lord Sterling said:

'I am sad that Peter Foy has decided that he is unable to take
over from me as Chairman, but am glad that he will remain on the
Board. I am pleased that Sir John Parker will take over as Deputy
Chairman. We approach a pivotal phase for the future of the
company and I am more than prepared to see it through.'

Sir John Parker said:

'I am delighted that Lord Sterling has agreed to stay on as
Chairman until the current situation is resolved. I look forward
to working closely with him and with our CEO, Peter Ratcliffe.'

CONTACT: Brunswick
         Tel: 020 7404 5959
         John Sunnucks
         Sophie Fitton


ROYAL SUN: Restructuring to Affect Between 150 to 200 Staffers
--------------------------------------------------------------
Insurance company Royal & Sun Alliance is planning to make
between 150 and 200 employees redundant, says The Scottsman.
Between one-half and two-thirds of the positions being in the
Glasgow office, says the report.

The reduction came despite the company's effort to prevent job
losses by redeploying staff.  Royal & Sun Alliance made
adjustments in its operating structure in order to improve
efficiency and support plans for the growth of its commercial
arm.

According to UK chief executive Duncan Boyle, "Today's changes
are about taking our strong UK general insurance business and
reshaping it so that we are in an even better position to compete
and grow in the future."

Staff from the firm's Commercial and MORE THN divisions is to be
concentrated in larger groups at a reduced number of sites.  The
plan is expected to affect 700 staff.

TCR-Europe reported in August Moody's placement of the group's
rating under review for possible downgrade citing as reason for
the action "concerns over the company's capacity to maintain its
capital position in order for it to continue to benefit from
strongly improving general insurance markets."

Royal & Sun Alliance Insurance Group is one of the UK's largest
insurers, covering everything from people to Olympic stadiums.
The company sells its life, property/casualty, and specialty
policies both directly and through intermediaries.


CONTACT:  ROYAL & SUN ALLIANCE GROUP PLC
          30 Berkeley Sq.
          London W1J 6EW United Kingdom
          Phone: +44-20-7636-3450
          Fax: +44-20-7636-3451
          Home Page: http://www.royalsunalliance.com


SCIPHER PLC: Announces Holdings in Company
------------------------------------------
Scipher plc were advised on 25 September 2002 that UBS Global
Asset Management Life Ltd, have an interest in 2,785,613 ordinary
shares in the Company, this representing 3.05% of its issued
ordinary share capital.


WORLDCOM INC.: To Sell Pentagon City to TST for US$101 Million
--------------------------------------------------------------
Worldcom Inc., and its debtor-affiliates seek the Court's
authority to sell an office complex known as "Pentagon City" and
related personal property to TST/Pentagon City LLC, an affiliate
of Tishman Speyer Properties for US$101,425,000.

According to Marcia L. Goldstein, Esq., at Weil Gotshal & Manges
LLP, in New York, Pentagon City is a two-building office complex
located at 701 South 12th Street and 601 South 12th Street in
Arlington, Virginia.  In the months prior to the Petition Date,
the Debtors reduced its workforce in the Washington, D.C. area
and began to consolidate its office space occupancy.  By early
May 2002, the Debtors determined that the continued ownership of
Pentagon City was no longer necessary or desirable. Accordingly,
the Debtors marketed Pentagon City for sale to potential
purchasers.

Ms. Goldstein states that the Debtors prepared an extensive
information package for interested parties and provided numerous
tours of Pentagon City.  Twenty-seven parties expressed interest
in the property and the Debtors received bids from 16 parties. As
the marketing period approached its conclusion in mid-June 2002,
the Debtors identified the four most attractive offers from
potential purchasers.  As the Debtors evaluated these proposals,
the Debtors received an offer from TST/Pentagon City LLC.  After
analysis, the Debtors determined that the Purchaser's offer
represented the highest and best offer for Pentagon City.  After
several weeks of negotiations, the Debtors and TST/Pentagon City
LLC entered into a contract for the sale of Pentagon City on July
11, 2002.

By selling the Assets, the Debtors will generate cash to devote
to their reorganization and the operation of their core
telecommunications business.  The Purchase Price provided under
the Agreement represents the best offer received by the Debtors
during the period in which the Debtors marketed Pentagon City for
sale.  The Debtors believe the Purchase Price represents
fair market value for the Assets and that the Agreement is the
culmination of good faith, arm's-length negotiations between the
Debtors and TST/Pentagon City LLC, and is not in violation of
Section 363(n) of the Bankruptcy Code.  Therefore, the sale of
the Pentagon City Assets is well within the sound business
judgment of the Debtors and should be approved.

The Debtors also ask the Court to approve the sale of the
Pentagon City Assets "free and clear of all liens, claims and
encumbrances," with any Liens to be transferred and attached to
the net proceeds obtained for the Pentagon City Assets with the
same validity, priority, force and effect these Liens had upon
the Pentagon City Assets immediately prior to their sale, subject
to further order of the Court.  The Debtors' postpetition secured
lenders have consented to the proposed sale. (Worldcom Bankruptcy
News, Issue No. 8; Bankruptcy Creditors' Service, Inc., 609/392-
0900)

                                     ***********

         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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or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


                  * * * End of Transmission * * *