---

            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

                 Tuesday, October 15, 2002, Vol. 3, No. 204


                              Headlines

* F R A N C E *

ALCATEL: Bridges Asia and Europe Through Live 3G/UMTS
FRANCE TELECOM: Injects Additional Capital to Subsidiary
FRANCE TELECOM: Eyes Special Entity to Launch Capital Increase

* G E R M A N Y *

KIRCHGRUPPE: Court Rules Against Leo Kirch in Deutsche Bank Suit
MOBILCOM AG: Executives Hope to Extend Loan Deadline

* I T A L Y *

FIAT SPA: Affiliate Receives EUR1 billion Subordinated Loan
FIAT SPA: Government Mulls Plans to Solve Problems
TELECOM ITALIA: Domestic Wireline and Town Council Wire Up Siena

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

SONG NETWORKS: Song Networks N.V. Files Suspension of Payments

* P O L A N D *

POLISH STEEL: To Commence Modernization Project at Sendzimira
TELEKOMUNIKACJA POLSKA: Reports on Bond Issuance Program

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

ABB LTD.: Export Bank Sells Residential Mortgage Transactions
BZ GROUP: Creditors Confirms to Abide Debt Moratorium
CREDIT SUISSE: Credit Suisse Group Files Shelf Registration
CREDIT SUISSE: CSFB Launches the Liquid Swiss Index
CREDIT SUISSE: Asset Management Helps Advisers in Turbulent Times
ZURICH FINANCIAL: S&P Takes Ratings From CreditWatch

* U N I T E D   K I N G D O M *

ABERDEEN ASSET: Notification of Major Interests in Shares
CARLTON COMMUNICATIONS: Carlton and Granada Plan to Merge
GLOBAL CROSSING: Proposes Uniform Plan Solicitation Procedures
HEALTH CLINIC: DCM Optical Holdings Buys Assets for GBP10 Million
KINGFISHER PLC: Purchases Further Holdings in Hornbach
MAN GROUP: Currently in Talks With Old Mutual on GNI Acquisition
MARCONI PLC: Wins Contract to Build 3G Transmission Network
TXU EUROPE: Parent Cuts US$700 Million Lifeline - Reports
TXU EUROPE: To Trim Down Workforce in Geneva Office
WORLDCOM: Wants to Pull Plug on Broadwing Master Service Pact


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


ALCATEL: Bridges Asia and Europe Through Live 3G/UMTS
-----------------------------------------------------
Alcatel, one of the leading telecom infrastructure vendors,
announced that it is establishing daily live 3G/UMTS mobile
videophony communications between Asia and Europe. On September
12th, the Malaysian Ministry of Energy, Communications &
Multimedia as well as other local officials and international
press, appreciated for the first time the quality of such
combined voice and video calls between Kuala Lumpur and Paris
during the official opening of Alcatel's 3G Reality Centre in
Malaysia.

This World Premiere follows the mobile videophony calls conducted
by Alcatel in Europe during the past few months, linking various
3G/UMTS pilot networks deployed by Alcatel in Portugal, Spain,
Italy, France and Sweden. Ever since, Alcatel has been conducting
mobile videophony calls inside Asia, namely between Singapore and
Kuala Lumpur as part of the 3GSM Asia Pacific congress.

In this sequence of successful premieres based on Alcatel's
3G/UMTS leading-edge solutions, the lucky videophony users were
the first in the world to see and hear each other in full
mobility, as well as to watch what was happening "live" in their
respective countries. All these calls were made using 3GPP-
compliant mobile handsets communicating over Alcatel's EvoliumT
Core and radio solutions.
Back in June, Alcatel had already provided Italian and Spanish
supporters with the opportunity to share their passion in
streaming and transferring clips over UMTS of the latest goals
scored during the 2002 Soccer World Cup.

To achieve all this, the same 3G/UMTS Asian mobile handsets are
able to reach both 384 Kbps in packet switch mode and 64Kbps in
circuit switch mode that are allowed by the end-to-end 3G/UMTS
pilot networks deployed by Alcatel around the world in full
compliance with W-CDMA 3GPP standards.

"This World Premiere between Asia and Europe demonstrates
Alcatel's head-start with its 3G future-proven solutions. It
marks a new milestone in our recommended stepped approach towards
UMTS, while capturing user interest and creating market
confidence, which is critical to the successful launch of 3G
networks. We're currently focused on real world deployments,
having delivered over 20 pilot networks to this date, bridging
the world with 3G/UMTS technology", said Marc Rouanne, President
of Alcatel's Mobile Networks activities.

About Alcatel
Alcatel 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.

Note:

The Troubled Company Reporter in its October 3, 2002 issue
reported that Alcatel's unit, Alcatel Canada recently announced
employee reductions of over 400 positions or about 12% of the
overall workforce. This was to address the continuing economic
slowdown in the
telecommunications networking industry.

CONTACT:  Alcatel
          54, rue La Bo,tie
          75008 Paris, France
          Phone: +33-1-40-76-10-10
          Fax: +33-1-40-76-14-00
          Toll Free: 800-777-6804
          Home Page: <http://www.alcatel.com>


FRANCE TELECOM: Injects Additional Capital to Subsidiary
--------------------------------------------------------
Shareholders Enel and France Telecom agreed to make a EUR235
million capital increase for their joint telecommunications
venture Wind, says reports. Enel owns 73.4% of Wind and France
Telecom holds 26.6% through its unit Orange.

The capital increase is meant to finance Wind's fixed-line
investments, new services and residual costs for third-generation
infrastructure.

Wind has recently acquired Blu Spa's assets, which includes the
company's customer base, the Blu brand, part of the company's
employees, approximately 260 Base Transceiver Stations (BTS), 6
shops and a call centre in Palermo.

According to the company's statement, the transaction "confirms
once again its (Wind's) leadership in the Italian
telecommunications market. The additional revenues and margins
contributed by Blu's customer base will improve Wind's
profitability and shorten the time needed to achieve full
financial independence. In addition, Wind consolidates its market
share and improves the quality of its mobile network."

CONTACT:  FRANCE TELECOM
          6, Place d'Alleray
          75505 Paris Cedex 15, France
          Phone: +33-1-44-44-22-22
          Fax: +33-1-44-44-95-95
          Home Page: http://www.francetelecom.fr


FRANCE TELECOM: Eyes Special Entity to Launch Capital Increase
--------------------------------------------------------------
The French government is considering the possibility of creating
a special state-controlled vehicle to help recapitalize France
Telecom, Reuters reports.

As newly appointed chairman Thierry Breton is reportedly solving
the company's EUR70 billion debt, government sources are said to
favor a share capital increase, subscribed 55% by the French
government through the creation of a separate public body.

According to a source familiar with the situation, the entity
"would hold the government's stake in France Telecom and would
issue (shares) with the guarantee of the state."

The "ad hoc structure" would have the capacity to borrow from
banks in order to participate in future capital increase, and
would repay the loans by future disposals.  The source mentioned
that this would neither weigh on the budget deficit nor create
competition problems for EU authorities in Brussels.


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


KIRCHGRUPPE: Court Rules Against Leo Kirch in Deutsche Bank Suit
----------------------------------------------------------------
Public prosecutors dismissed the lawsuit filed by former media
magnate Leo Kirch against Deutsche Bank, whom he holds partly
responsible for the collapse of his media empire, Agence France-
Presse says.

Mr. Kirch contends that public comments by the former chairman of
Germany's biggest bank, Rolf Breuer, against KirchMedia's
financial standing helped pushed the group towards insolvency in
April.

While the media magnate argued that Mr. Breuer violated banking
confidentiality and damaged his reputation, the court ruled he
was innocent, as the knowledge of the state of Mr. Kirch's empire
was already widely known at the time of Mr. Breuer's
pronouncement.

Deutsche Bank, which recently acquired a 40% stake in Axel
Springer Verlag AG as collateral for KirchGruppe's loan, has sold
10% of the shares to the publisher's main shareholder, Friede
Springer.

KirchGruppe succumbed to bankruptcy early this year due to a debt
pile of about EUR5 billion.

MOBILCOM AG: Executives Hope to Extend Loan Deadline
----------------------------------------------------
MobilCom executives are hoping the deadline for repayment of a
EUR4.7 billion loan that came due Monday will be extended, says
the Financial Times.

The telecommunications company was granted a one-month deadline
extension for the repayment of loans by its creditors in
September.  The government granted the rescue facility to ensure
the continuation of the company's business after debt-laden
France Telecom severed its ties with the affiliate, and to allow
its restructuring plan.

"Clear progress has been made in talks about France Telecom
taking over this debt, so it would not be in the banks' interest
to pull the plug now," the report say citing a MobilCom insider.

France Telecom has signed a memorandum of understanding with the
operator's 17 lending banks and its equipment manufacturers that
would see the French group assume the bulk of its former
partner's debt.  A final agreement, however, has not been
drafted, as concerns plague France Telecom and Mobilcom haggles
for additional deals with France Telecom.

France Telecom wants a guarantee that MobilCom will not seek
damages for suspending their 2000 shareholder agreement, which
requires the French operator to provide Mobilcom with EUR18
billion in liquidity over 10 years; whereas MobilCom, sources
say, seeks an additional EUR400 million from France Telecom.

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


FIAT SPA: Affiliate Receives EUR1 billion Subordinated Loan
-----------------------------------------------------------
Italian car manufacturer Fiat SpA's affiliate Italenergia SpA,
said it received a EUR1 billion (US$987 million) subordinated
loan as part of a comprehensive debt restructuring, says Reuters.

Italenergia obtained the financing from its controlling
shareholder Italenergia Bis, which raised the amount this month
through a EUR1.272-billion bond offering guaranteed by
shareholder Electricite de France.

The development means that Italenegia, which controls private
energy group Edison, is halfway through a EUR4 billion debt
overhaul.

In August, Italenergia completed a EUR800 million public offering
of five-year bonds.  The company received bonds worth EUR 829.6
million with the excess demand absorbed by part-use of the over-
allotment facility.

Italenergia and Edison, the country's second-largest power
company after state-controlled Enel, are due to merge by the end
of October, the report says.

Fiat is currently is trying to achieve a turnaround in sales
during the fourth quarter, but weakness in its important domestic
market is cutting the drive short.  It is also planning to
undertake massive job cuts to raise money for investments.

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


FIAT SPA: Government Mulls Plans to Solve Problems
--------------------------------------------------
The center-right government of Italy is studying "market options"
to help troubled carmaker Fiat, according to the Financial Times.

Prime minister Silvio Berlusconi and Fiat executives met Sunday
to discuss possible state aid for the 8,100 Fiat employees that
would be affected by the carmaker's planned job cuts.

Previously, according to Xinhua News, the Italian Premier said
the government "certainly does not want to leave thousands of
Italians out of work in areas that offer no alternatives."

The government plans to extend its trade in old cars, although it
is also considering a more direct means of support for the firm
and its employees, the Financial Times report says.  Any amount
of government aid, however, will have to pass the scrutiny of
European Union competition authorities.

The government earlier allowed consumers to avoid paying the
annual license fee since early July for three years if they trade
in a car without a catalytic converter by the end of 2002 and buy
a new small car--the specialty of Fiat.  Yet, despite the
government incentive, the Italian company's car registrations
fell 11.4%, or four times compared to that of rivals.


TELECOM ITALIA: Domestic Wireline and Town Council Wire Up Siena
----------------------------------------------------------------
Over 21,000 properties connected to the Telecom Italia fibre-
optic network, 60 km of optical cable laid to provide 8,900 km of
fibre and 225 km of coaxial cable. Project investment exceeds
?17.5 million.

Two years after the Siena Town Council and Telecom Italia first
began working together on trials, the plan to wire up the city of
Siena has now become fully operational.

"Siena is the first city in Italy where nobody needs an aerial or
satellite dish on the roof," says Maurizio Cenni, Mayor of Siena.
"The new network offers every single Web-based online service
currently available on the market, plus online applications for
interacting with the Town Council and other local government
bodies."

Riccardo Ruggiero, Telecom Italia CEO, says: "Telecom Italia has
spent over ?17.5 million on the most advanced telecommunications
transmission technologies to wire up 21,000 properties using 60
km of high-capacity optical cable, providing 8,900 km of fibre
and 225 km of underground coaxial cable."
The Siena Town Council is Italy's first to launch a whole series
of e-projects, including the use of digital signatures and the
erection of multimedia booths to offer online access to local
government services in public places.

Telecom Italia is currently completing a network upgrade for a
further 5,000 dwellings for the Town Council in the Petriccio,
Acquacalda, Vico Alto, Marciano/Cappuccini, Bottega Nuova,
Scacciapensieri, Porta Tufi and Porta Romana districts.

Telecom Italia's innovation expertise and technological know-how
have found an ideal partner in the Siena local administration,
which has long been keen to improve services for residents and,
as one would expect of a town like Siena, for traders and
tourists. Siena continues to offer a favourable environment for
the development of the latest online services and applications,
much to the advantage of local people and businesses. Innovation
of this nature helps to increase the penetration of e-commerce
and e-government tools, encouraging new services that generate
both high standards of performance and lower production costs.


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


SONG NETWORKS: Song Networks N.V. Files Suspension of Payments
--------------------------------------------------------------
Song Networks Holding AB announced that its wholly owned
subsidiary, Song Networks N.V., filed a suspension of payments
(Surseance) in The Netherlands. At the same time, Song Networks
N.V. submitted to the Dutch court its proposed plan of
composition on which agreement has been reached with an ad hoc
committee of holders of Song Networks N.V. Senior Notes.

Song Networks is a data and telecommunications operator with
activities in Sweden, Finland, Norway and Denmark. The Company's
business concept is to offer the best broadband solution for data
communication, internet and voice to businesses in the Nordic
region. This means that Song Networks supplies communication
solutions that are attractively customized for each corporate
customer. Song Networks is currently the only pan Nordic operator
investing in local access networks with broadband capacity. The
Company has built local access networks in the largest cities in
the Nordic region. The access networks, which are linked by a
long-distance network is one of the fastest data and internet
super-highways in Europe, with an initial capacity for customers
of up to one gigabit. The Company was founded in 1995 in Sweden
and has approximately 1,000 employees. The head office is located
in Stockholm and there are an additional 34 offices located in
the Nordic region.

CONTACT: Song Networks Holding AB
         Tomas Franz,n, Chief Executive Officer
         Tel:+46 8 5631 0111
         Mobile: +46 701 810 111
         E-mail: tomas.franzen@songnetworks.net

         Song Networks Holding AB
         Jenny Moquist
         Investor Relation Manager
         Tel: +46 8 5631 0219
         Mobile: +46 701 810 219
         E-mail: jenny.moquist@songnetworks.net
         Website: http://www.songnetworks.net


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


POLISH STEEL: To Commence Modernization Project at Sendzimira
-------------------------------------------------------------
The European Union has allowed steel producer Huta Sendzimira, a
member of Polish Steel Mills (PHS), to begin the approximately
PLN800 million-worth (US$193.5 million) modernization of its
plate mill, according to Warsaw Business Journal.

The company's deputy economy minister Andrzej Szarawarski
disclosed that PHS is negotiating with two foreign banks for
PLN600 million (US$145 million) grant and with PKO BP for the
additional PLN100 million (US$24 million). PKO BP confirmed that
it is involved in the project.

It has been reported earlier that PHS is undertaking extensive
restructuring efforts on mills belonging to the holding.
Sendzimira Steel Mill produces 90 tons of goods per month out of
the 150 tons quota it needs to reach to break-even.  In August,
the mill surprisingly produced 140 tons of goods.

The financing is due to be decided based on the budget guarantees
for the Huta Sendzimira project; the Economy Ministry is
motioning to increase the guarantees up to 60% from the 50%
granted in May 2001.


TELEKOMUNIKACJA POLSKA: Reports on Bond Issuance Program
--------------------------------------------------------
Pursuant to Sub-Para 81 point 2 of the Law on Public Trading in
Securities dated 21 August 1997 on the type, form and frequency
of disclosure of current and periodic information by issuers of
securities admitted to public trading (Official Journal No. 118
item 754 as amended)), the Management Board of Telekomunikacja
Polska S.A. (further referred to as 'TP S.A.') hereby informs
that on 11 October 2002 TPSA has issued bonds within the frame of
the Bond Issuance Programme (see our current report no 58/2002)
signed on 15 July 2002 by Bank Handlowy seated in Warsaw, BRE
Bank S.A, and ABN AMRO Bank (Poland) S.A. .

The total par value of the bonds being issued amounts to PLN
100,000,000 and the bonds were issued for a period of six months
with the redemption date on 15 April 2002. The bonds issued under
the Programme shall be denominated in Polish Zloty (PLN) and will
be offered through private placement exclusively on the territory
of the Republic of Poland in the form of non-material, non-
secured, discounted (zero-coupon) bearer bonds.

The bonds will be redeemed as per their nominal value and the
redemption will be executed at the Issuing Agent's office i.e.
Bank Handlowy S.A. seated in Warsaw. The bond rate was based on
the six months WIBOR index (WIBOR 3M). TPSA does not anticipate
introducing the bonds issued under the Programme to public
securities trading.

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


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


ABB LTD.: Export Bank Sells Residential Mortgage Transactions
-------------------------------------------------------------
ABB said today that it has signed an agreement to sell the
residential mortgage transactions of ABB Export Bank to the Swiss
bank, Z�rcher Kantonalbank, for US$ 55 million as part of its
ongoing strategy to reduce net debt and focus on power and
automation technologies.

The deal is scheduled for completion on October 31, 2002.

"This divestment helps us reduce net debt and simplify our
operational and reporting structure," said Peter Voser, ABB's
chief financial officer. "Z�rcher Kantonalbank is in a good
position to take over these activities and manage it to the best
interest of mortgage holders going forward."

ABB Export Bank is part of the Structured Finance business area
of ABB's Financial Services business division.

ABB announced early last month that it was selling most
operations of its Structured Finance business area, also part of
the Financial Services division, to GE Commercial Finance for US$
2.3 billion. At the time, ABB said it was in negotiations to
divest some or all of the ABB Export Bank, ABB's 35 percent
equity stake in the Swedish Export Credit Corporation, and its
aircraft leasing business, whose total book asset value was about
US$ 0.9 billion at the end of June 2002.

ABB (www.abb.com) is a leader in power and automation
technologies that enable utility and industry customers to
improve performance while lowering environmental impacts. The ABB
Group of companies operates in more than 100 countries and
employs about 150,000 people.


BZ GROUP: Creditors Confirms to Abide Debt Moratorium
-----------------------------------------------------
Creditor banks of BZ Group Holding assured that they are going to
abide by the debt moratorium that prevented financier Martin
Ebner from selling the investment empire's stakes in top Swiss
firms.

Financier Matin Ebner entered into a moratorium with creditors in
July, which enabled him to suspend payments as he raised funds by
selling investments only when market conditions are favorable.
The deal was aimed at preventing him from incurring losses from a
premature sale of investments.

A continued slump in Swiss stocks, however, is seen to pressure
Mr. Ebner to proceed with the sale of its holdings in Credit
Suisse Group and engineering group ABB. The company, last week,
had already announced plans to sell its 19.8% holding in Lonza
Group. The action fueled speculations that the group might also
unload the priced stake.


CREDIT SUISSE: Has Loans Outstanding To BZ Group Holdings
---------------------------------------------------------
Credit Suisse Group, which has reported net loss of CHF579
million in the first half, admitted it has around CHF1 billion
(EUR687 million) in loans outstanding to BZ Group.

According to The Wall Street Journal Europe, Hans Ulrich Doerig,
vice chairman of Credit Suisse Group's executive board, the bank
had the loans secured by shares in eight companies. These shares
do not include holdings in Credit Suisse stock, says an insider
from other bank.

The Swiss financial services group's shares have fallen nearly
50% this year, mainly as a result of poor investment returns at
Winterthur, its insurance business.

Credit Suisse Group is a leading global financial services
company headquartered in Zurich. The business unit Credit Suisse
Financial Services provides private clients and small and medium-
sized companies with private banking and financial
advisoryservices, banking products, and pension and insurance
solutions from Winterthur.

Fitch Ratings has recently changed the Outlook on Credit Suisse
Group's 'AA-'Long-term rating to Negative from Stable. The action
follows the announcement that Credit Swiss Group will dole out
CHF2 billion of fresh funding into Winterthur to fill the gap
created by write-down in equity investments.


CREDIT SUISSE: Credit Suisse Group Files Shelf Registration
-----------------------------------------------------------
Credit Suisse Group today announced the filing of a shelf
Registration Statement with the U.S. Securities and Exchange
Commission (SEC) relating to the offering from time to time of up
to USD 2 billion in aggregate amount of debt securities, warrants
and qualifying capital securities. As more than one year has
passed since the listing of Credit Suisse Group's ADRs on the New
York Stock Exchange in September 2001, Credit Suisse Group is now
eligible to file such a shelf Registration Statement. The company
said that the filing was a long-planned step to provide the
company with maximum financial flexibility. Prospectus
supplements to the preliminary base prospectus included in the
Registration Statement in connection with the offer and sale of
any securities will set forth the specific terms of the
securities then being offered.

The shelf Registration Statement filed with the SEC has not yet
become effective. The securities may not be sold, nor may offers
to buy be accepted, prior to the time the Registration Statement
becomes effective. This press release shall not constitute an
offer to sell or the solicitation of any offer to buy nor shall
there be any sale of the securities in any state in which such
offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any
such state.


CREDIT SUISSE: CSFB Launches the Liquid Swiss Index
---------------------------------------------------
Credit Suisse First Boston launched the Liquid Swiss Index (LSI)
at the end of September. The LSI comprises only the liquid
portion of the Swiss bond market and provides timely and reliable
pricing information. It includes a Swiss government bond index
and a Swiss Pfandbrief index. This new index created by Credit
Suisse First Boston will contribute to making the Swiss franc
bond market more transparent and more attractive.

Credit Suisse First Boston's Liquid Swiss Index (LSI), which
includes a separate Swiss government bond index and a Swiss
Pfandbrief index, comprises only the liquid portion of the Swiss
franc bond market. Credit Suisse First Boston traders price all
the securities in the index on a daily basis. This ensures timely
and reliable pricing information and enables investors to conduct
accurate relative value and performance analysis as well as
correct gauging of market trends and conditions.

The selection process for the LSI is steered by the Credit Suisse
First Boston Liquid Index Committee, with individual members
covering the different aspects of the capital market. Chaired by
the Head of Swiss Income Research, the committee comprises
representatives of the Credit Suisse First Boston Swiss Franc
Syndicate and Swiss Franc Bond Trading and Coverage teams. It
also includes members of Credit Suisse Asset Management and IT
support along with a Senior Credit Analyst. All of this, together
with automated daily index composition checking routines, means
that the SLI satisfies all the criteria that a benchmark index is
expected to meet.

Transparent composition

The special feature of the new index is the complete transparency
of the index composition. Clients of Credit Suisse First Boston
can check the exact composition, weighting and credit ratings of
the bonds included in the index at any time by consulting Credit
Suisse First Boston's web-based research platform,
www.csfb.com/research-and-analytics.

Credit Suisse First Boston is convinced that the LSI and the
accompanying monthly reports will contribute to making the Swiss
bond market more transparent and therefore more attractive to
international investors.

Credit Suisse First Boston's Global Indices team is constantly
engaged in engineering analysis tools providing ever more
transparency across the Credit Suisse First Boston index family.
To that effect it has just launched the Cross Currency Selector,
an application allowing rapid cross currency relative value
analysis. The ability to produce tailored reports using web-based
applications will make it easier to track market trends, leading
to increased investor confidence and ultimately translating into
higher market liquidity.

Credit Suisse First Boston
Credit Suisse First Boston (CSFB) is a leading global investment
bank serving institutional, corporate, government and individual
clients. CSFB's businesses include securities underwriting, sales
and trading, investment banking, private equity, financial
advisory services, investment research, venture capital,
correspondent brokerage services and asset management. CSFB
operates in 77 locations in 36 countries across six continents.
The Firm is a business unit of the Zurich-based Credit Suisse
Group, a leading global financial services company. For more
information on Credit Suisse First Boston, please visit our Web
site at www.csfb.com.


CREDIT SUISSE: Asset Management Helps Advisers in Turbulent Times
-----------------------------------------------------------------
Credit Suisse Asset Management announced a series of initiatives
to assist advisers and their clients in turbulent times.

The initiatives stem from research Credit Suisse Asset Management
compiled for their two Hypercompetition papers. Brian Thomas,
Head of Distribution, said "We've been talking to advisers for
the last couple of years and have received extensive feedback on
the challenges they face".

Mr Thomas added "Our Hypercompetition papers highlighted that
financial planners need to stay in control of their businesses in
an increasingly competitive environment. Furthermore, with
turbulent investment markets, advisers need to ensure clients'
expectations are managed realistically. We believe we are able to
offer the right formula to help advisers in today's environment".

In addition to volatile and unpredictable investment markets,
there is an unprecedented level of consolidation in financial
services. As the result of this, Credit Suisse Asset Management
believes advisers may find their clients' portfolios are suddenly
unintentionally overweight a particular manager.

"Advisers are finding industry consolidation is a trigger to
review and potentially modify their clients' portfolios", says
Clayton Coplestone, National Sales Manager. "They are also
finding investors are more risk averse and are looking to invest
in cash and slowly move into more aggressive funds".

"We believe we are able to assist through a number of initiatives
that were released to advisers today", Mr Coplestone added.

Initiatives

Administration Payment

� With the understanding that adjusting clients' portfolios can
be time consuming for advisers' businesses, Credit Suisse Asset
Management will make a one-off administration payment of 0.30% to
advisers that placed net inflows of more than $1m collectively in
the Credit Suisse Asset Management retail funds between 14
October 2002 and 28 February 2003.

Lower Minimum Investments

� To make the Credit Suisse Asset Management funds more
accessible to clients, the minimum initial investment for their
retail Private Investment Funds and Super & Rollovers has been
reduced from $10,000 to $5,000. This is in addition to the
reduction in the mezzanine Select Investment Funds minimum
investment from $100,000 to $50,000 at the beginning of October.

60% Reduction in Cash Option Management Fee

� To assist clients who want to dollar cost average into
investment markets, Credit Suisse Asset Management has reduced
its management fee on its retail cash options by 60% until 31
August 2003.

Information Paper for Advisers

� Credit Suisse Asset Management are also working with a leading
research house to produce an information paper, which will be
made available to advisers, free of charge, to help them to build
the ultimate client portfolio in this new dynamic environment.


Mr Thomas said, "Our initiatives launched today are aimed at
helping advisers reduce cost pressures, improve portfolio design
and assist with dollar cost averaging. These initiatives will
help advisers to assist their clients through these turbulent
times".

Credit Suisse Asset Management is the asset management arm of
Credit Suisse First Boston, part of the Credit Suisse Group, one
of the world's largest financial organizations with approximately
AUD 1,539 billion in assets under management. Credit Suisse First
Boston (CSFB) is a leading global investment bank serving
institutional, corporate, government and individual clients.
CSFB's businesses include securities underwriting, sales and
trading, investment banking, private equity, financial advisory
services, investment research, venture capital, correspondent
brokerage services and asset management. CSFB operates in 77
locations in 36 countries across six continents. The Firm is a
business unit of the Zurich-based Credit Suisse Group, a leading
global financial services company. For more information on Credit
Suisse First Boston, please visit our Web site at www.csfb.com.

As of June 30, 2002, Credit Suisse Asset Management employed
2,262 people worldwide and had global assets under management of
approximately AUD 544 billion. Please note that this is not an
offer for advisory services by Credit Suisse Asset Management.
For more information on Credit Suisse Asset Management, please
visit our Web site at www.csam.com.

CONTACT:  Gabrielle Bauer
          Credit Suisse Asset Management
          Vice President Telephone
          Phone: +61 2 8205 4165


ZURICH FINANCIAL: S&P Takes Ratings From CreditWatch
----------------------------------------------------
Standard & Poor's Ratings Services said that it removed from
CreditWatch and affirmed its single-'A'-plus counter-party credit
and financial strength ratings on Federal Kemper Life Assurance
Co., Kemper Investors Life Insurance Co., and Zurich Life
Insurance Co. of America (collectively referred to as Zurich Life
U.S.).

Standard & Poor's also said that it removed from CreditWatch and
affirmed its triple-'B'-plus counterparty credit rating on Kemper
Corp.

The outlook on all these companies is negative.

These ratings had been placed on CreditWatch on Sept. 5, 2002,
following Zurich Financial Services's (ZFS) announcement that the
group's earnings has deteriorated. Subsequent to the
announcement, ZFS issued a rights offering, which was
successfully executed and authorized by the shareholders on Oct.
11, 2002.

"The ratings on Zurich Life U.S. reflect its strong business
position, strong operating performance, and extremely strong
capitalization," explained Standard & Poor's credit analyst Kevin
Ahern. "Partially offsetting these strengths are the challenges
associated with revenue and earnings growth given the competitive
market pressures and volatile equity market."

The outlook on Zurich Life U.S. reflects the existing pressure on
its operating performance and current negative outlook on ZFS.
Standard & Poor's expects continued pressure on Zurich Life
U.S.'s earnings given its exposure to the equity market. These
pressures are consistent with general market conditions, which
are affecting a large percentage of U.S. life insurers. Despite
this pressure, the quality of earnings is relatively stable given
that a good portion of total earnings is derived from life
insurance.

CONTACT:          Standard & Poor's, New York
                  Kevin Ahern, 212/438-7160


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


ABERDEEN ASSET: Notification of Major Interests in Shares
---------------------------------------------------------
Name of company: Aberdeen Asset Management Plc

Name of shareholder having a major interest:  FMR Corp and its
direct and indirect subsidiaries and Fidelity International Ltd
and its direct and indirect subsidiaries both being non-
beneficial holders.

Name of the registered holder(s):
a. Chase Nominees Limited - 1,797,938 shares
b. State Street Nominees Ltd - 326,700 shares
c. MSCO - 200,000 shares
d. Chase Manhattan Bank London - 2,495,019 shares

Class of security: ordinary shares of 10 pence

Date of transaction: October 8 2002

Date company informed: October 11 2002

Total holding following this notification: 4,819,657

Total % holding of issued class after this notification: 2.75%

Name of contact and telephone number for queries:
John Brett
Tel: 01224 631999

Authorize company official making this notification:
John Brett
Company Secretary
Date of notification: Octobner 11 2002


CARLTON COMMUNICATIONS: Carlton and Granada Plan to Merge
----------------------------------------------------------
The Boards of Carlton and Granada announce that they are in
advanced discussions in relation to a possible merger of the two
companies, paving the way to a consolidated ITV.

The following has been agreed in principle:

  * Granada shareholders will receive 68 percent of the equity
and o200 million of cash on completion. Carlton shareholders will
receive 32 percent of the equity, upon completion, potentially
increasing to 34 percent in 2006 dependent on the achievement of
a share price of the merged group equivalent to 140 pence per
Granada share and on achievement of an agreed earnings target.
Carlton intends to pay an unchanged final dividend for the year
ended 30 September 2002 of 5.0 pence per share.

  * Following completion, Michael Green will become Chairman of
the merged group and Charles Allen will be Chief Executive. In
addition three non-executive directors from each company will
join the board of the merged group.

There can be no assurance that final agreement will be reached. A
further announcement will be made in due course.

Carlton and Granada believe that the proposed structure of the
merger takes into account the current regulatory framework and
expect to undertake extensive consultation with the appropriate
regulatory bodies as soon as practicable. In any event, the
merger would be conditional, amongst other things, upon
regulatory approval.

Commenting on today's announcement, Michael Green, Chairman of
Carlton, said: 'A single ITV is within sight. In a rapidly
changing broadcast industry we need to combine to compete
effectively. Delay is not in the interest of viewers,
advertisers, stakeholders or the future of British broadcasting.'

Commenting on today's announcement, Charles Allen, Chairman of
Granada, said: 'The proposed merger provides a clear route to a
consolidated ITV. It would make ITV more competitive now, in an
increasingly competitive market.

A consolidated ITV will ensure that viewers and advertisers
continue to benefit from choice, diversity and value in an ever
more competitive broadcasting market and ensure that ITV retains
its position at the heart of public service broadcasting. For
viewers, it means we can continue to put our money into
programmes, on-screen. For advertisers, it ensures that ITV will
go on attracting the mass audiences they want.'

No offer or invitation to acquire or exchange securities in
Granada or Carlton is being made now. Any such offer or
invitation will only be made in documents to be published in due
course and any such acquisition or exchange should be made solely
on the basis of information contained in such documents.


GLOBAL CROSSING: Proposes Uniform Plan Solicitation Procedures
-------------------------------------------------------------
In connection with Global Crossing Ltd.'s and its debtor-
affiliates' recently filed Disclosure Statement and
Reorganization Plan, the Debtors ask the Court to:

-- fix a record date;

-- approve the notice and objection procedures in respect of
confirmation of the Plan;

-- approve the Solicitation Packages and procedures for
distribution thereof; and

-- approve the forms of ballot and establishment of procedures
for voting on the Plan.

Fixing a Record Date

Michael F. Walsh, Esq., at Weil Gotshal & Manges LLP, in New
York, relates that in order to set a record date, the registrars
of the Debtors' securities need advance notice of two full
business days to enable those responsible for assembling
ownership lists of the Debtors' publicly traded debt and equity
securities to compile a list of holders as of a certain date.
Accurate lists often cannot be prepared retroactively as to
ownership on a prior date. Accordingly, the Debtors ask the Court
to exercise its power under Section 105(a) of the Bankruptcy Code
and fix October 18, 2002 as the record date for purposes of
determining creditors entitled to vote on the Plan or, in the
case of non-voting classes, to receive the Notice of Non-Voting
Status.

Confirmation Objection Procedures

In accordance with Rule 3017(c) of the Federal Rules of
Bankruptcy Procedure and in view of the Debtors' proposed
solicitation schedule, the Debtors ask the Court to scheduling
the confirmation hearing on December 4, 2002, which is 43 days
after the Disclosure Statement Hearing. The proposed date for the
Confirmation Hearing will enable the Debtors to pursue
consummation of the Plan in a timely fashion.

In accordance with Bankruptcy Rules 2002 and 3017(d), the Debtors
propose to provide to all creditors and equity security holders a
copy of the Confirmation Hearing Notice setting forth:

A. the Voting Deadline for the submission of ballots to accept or
reject the Plan,

B. the time fixed for filing objections to confirmation of the
Plan, and

C. the time, date, and place for the Confirmation Hearing.

The notice will be sent together with the distribution of the
Solicitation Packages.

The Debtors also propose to publish the Confirmation Hearing
Notice, not less than 25 days before the deadline to file
objections to confirmation of the Plan, in the national and
international editions of The Wall Street Journal and the
Bermuda Sun. The Debtors believe that publication of the
Confirmation Hearing Notice will provide sufficient notice to
persons who do not otherwise receive notice by mail.

The Confirmation Hearing Notice provides that objections to plan
confirmation or proposed modifications to the Plan must:

A. be in writing,

B. state the name and address of the objecting party and the
amount and nature of the claim or interest of the party,

C. state with particularity the basis and nature of any objection
or proposed modification, and

D. be filed, together with proof of service, with the Court and
served so that they are received by the Clerk of the Court,
attorneys for the Debtors, U.S. Trustee, attorneys for the
Creditors' Committee, attorneys for the Administrative Agent,
attorneys for Hutchison and attorneys for STT no later than 4:00
p.m., prevailing Eastern Time, on November 22, 2002.

The proposed timing for service of objections and proposed
modifications will afford the Court, the Debtors, and other
significant parties-in-interest sufficient time to consider the
objections and proposed modifications before the Confirmation
Hearing.

The Debtors also request that the attorneys for the
Creditors'Committee and the Administrative Agent be authorized to
serve replies to any objections no later than December 2, 2002.

Distribution of Solicitation Packages

After the Court approves the Proposed Disclosure Statement, the
Debtors propose to mail solicitation packages containing copies
of the Confirmation Hearing Notice and the Disclosure Statement
no later than October 28, 2002.

The Debtors propose to provide certain additional solicitation
materials in the Solicitation Packages. Holders of claims in
classes entitled to vote to accept or reject the Plan will
receive:

A. an appropriate form of Ballot and a return envelope,

B. a letter from the Creditors' Committee recommending
Acceptance of the Plan, and

C. any other materials as the Court may direct.

Mr. Walsh tells the Court that Solicitation Packages for holders
of claims against or interests in the Debtors within a class
under the Plan that is deemed to accept or reject the Plan will
not include a Ballot. Instead, the Solicitation Packages for
these holders of claims and interests will include a Notice of
Non-Voting Status. In addition, the Debtors ask the Court to
determine that they are not required to distribute copies of the
Plan or Disclosure Statement to any holder of an unimpaired
claim, unless the party makes a specific request in writing.

The Debtors also propose that Solicitation Packages not be sent
to creditors whose claims are based on either amounts scheduled
by the Debtors or timely proofs of claim in an amount less than
or equal to the amount scheduled for the claim by the Debtors if
the claims have already been paid in the full scheduled amount.

The Debtors anticipate that some Disclosure Statement Notices
may be returned by the United States Postal Service as
undeliverable. The Debtors believe that it would be costly and
wasteful to mail Solicitation Packages to the same addresses to
which undeliverable Disclosure Statement Notices were mailed.
Therefore, the Debtors seek the Court's approval for a departure
from the strict notice rule, excusing the Debtors from mailing
Solicitation Packages to those entities unless the Debtors are
provided with accurate addresses before October 25, 2002.

The Debtors propose to distribute to certain creditors one or
more Ballots. Mr. Walsh explains that the forms for the Ballots
are based on Official Form No. 14, but have been modified to
address the particular aspects of these Chapter 11 cases and to
include certain additional information that the Debtors believe
to be relevant and appropriate for each class of claims or
interests. The appropriate Ballot forms will be distributed to
certain holders of impaired claims that are entitled to vote. All
other classes are either unimpaired and presumed to have
accepted the plan or will receive no distribution and are deemed
to have rejected the plan.

With respect to the Ballots that will be sent to holders of
claims in Class D and E, the Debtors seek the Court's authority
to send Ballots to record holders of these claims, including,
without limitation, brokers, banks, dealers, or other agents or
nominees. Each Voting Nominee would be entitled to receive
reasonably sufficient copies of Ballots and Solicitation Packages
to distribute to the beneficial owners of the claims for whom the
Voting Nominee holds these claims, and the Debtors will be
responsible for each Voting Nominee's reasonable costs and
expenses associated with the distribution of copies of Ballots to
the beneficial owners of these claims and tabulation of the
Ballots. Additionally, each Voting Nominee would receive returned
Ballots from the beneficial owners, tabulate the
results, and return, these results to the Voting Agent in a
Master Ballot by the Voting Deadline, or arrange for beneficial
holders to receive "pre-validated" ballots for direct return to
the Voting Agent.

Notice of Non-Voting Status

The Debtors propose to send to holders of unimpaired claims, a
notice of non-voting status, which identifies the classes
designated as unimpaired and sets forth the manner in which a
copy of the Plan and Disclosure Statement may be obtained. The
Debtors also ask the Court to determine that they are not
required to distribute copies of the Plan or Disclosure Statement
to any holder of an unimpaired claim, or party to an executory
contract who does not hold either an allowed filed or
a scheduled claim or who holds a scheduled claim listed as
contingent, unliquidated, or disputed, unless the party makes a
specific request in writing.

The Debtors propose to send a Notice of Non-Voting Status-
Impaired Classes, to the holders of the Debtors' publicly traded
stock as reflected in the records maintained by the Debtors
transfer agents and the trustee of any debt securities in non-
voting classes as of the close of business on the Record Date.
However, the Debtors recognize that the records maintained by
these transfer agents or trustees reflect the brokers, dealers,
commercial banks, trust companies, or other nominees through
which the beneficial owners hold the Non-Voting Securities.
Accordingly, the Debtors ask the Court to authorize:

A. the nominee stockholders to forward the Notice of Non-Voting
Status-Impaired Classes or copies thereof to the beneficial
stockholders within five business days of the receipt by the
Nominee Stockholders of the Notice of Non-Voting Status; and
B. the Debtors to provide the nominee stockholders with
sufficient copies of the Notice of Non-Voting Status-Impaired
Classes to forward to the Beneficial Stockholders.

To the extent that the nominee stockholders incur out-of-pocket
expenses in connection with distribution of the Notice of Non-
Voting Status-Impaired Classes, the Debtors seek the Court's
authority to reimburse these entities for their reasonable,
actual, and necessary out-of-pocket expenses incurred in this
regard.

Voting Deadline For Receipt Of Ballots

The Debtors anticipate commencing the solicitation period within
8 days after an order approving the Proposed Disclosure
Statement. Based on this schedule, the Debtors propose that in
order to be counted as a vote to accept or reject the Plan, each
Ballot must be properly executed, completed, and delivered to the
appropriate Voting Agent by:

A. first-class mail, in the return envelope provided with each
Ballot,

B. overnight courier, or

C. personal delivery,

so that it is received no later than 4:00 p.m., prevailing
Eastern Time, on November 22, 2002, which is 32 days after the
proposed commencement of the solicitation period. The Debtors
contend that the solicitation period gives creditors enough time
to make an informed decision whether to accept or reject the
Plan.

Solely for purposes of voting to accept or reject the Plan and
not for the purpose of the allowance of, or distribution on
account of, a claim, and without prejudice to the rights of the
Debtors in any other context, the Debtors propose that each claim
within a class of claims entitled to vote to accept or reject the
Plan be temporarily allowed in an amount equal to the claim as
set forth in the Schedules. If a claim for which a proof of claim
has been timely filed is not listed in the
Debtors' Schedules, the Debtors propose that the claim be
temporarily allowed for voting purposes only, and not for
purposes of allowance or distribution, at $1. The general
procedure will be subject to these exceptions:

A. If a claim is deemed allowed in accordance with the Plan, the
claim is allowed for voting purposes in the deemed allowed amount
set forth in the Plan but only for the purposes of the Plan;

B. If a claim for which a proof of claim has been timely filed
is, by its terms, contingent, unliquidated, or disputed, the
Debtors propose that the claim be temporarily allowed for voting
purposes only, and not for purposes of allowance or distribution,
at $1;

C. If a claim has been estimated or otherwise allowed for voting
purposes by order of the Court, the claim is temporarily allowed
in the amount so estimated or allowed by the Court for voting
purposes only, and not for purposes of allowance or distribution;

D. If a claim is listed in the Schedules as contingent,
unliquidated, or disputed and a proof of claim was not:

-- filed by the applicable bar date for the filing of proofs
of claim established by the Court or

-- deemed timely filed by an order of the Court prior to the
Voting Deadline, unless the Debtors have consented in
writing,

the Debtors propose that the claim be disallowed for voting
purposes and for purposes of allowance and distribution
pursuant to Bankruptcy Rule 3003(c); and

E. If the Debtors have served an objection to a claim at least
10 days before the Voting Deadline, the Debtors propose that
the claim be temporarily disallowed for voting purposes only
and not for purposes of allowance or distribution, except to
the extent and in the manner as may be set forth in the
objection.

The Debtors believe that the proposed procedures provide for a
fair and equitable voting process. If any creditor seeks to
challenge the allowance of its claim for voting purposes in
accordance with these procedures, the Debtors ask the Court to
direct the creditor to serve on the Debtors and file with the
Court a motion for an order pursuant to Bankruptcy Rule 3018(a)
temporarily allowing the claim in a different amount for
purposes of voting to accept or reject the Plan on or before the
10th day after the later of:

A. service of the Confirmation Hearing Notice, and

B. service of notice of an objection to the claim.

The Debtors further propose that as to any creditor filing the
motion, the creditor's Ballot should not be counted unless
temporarily allowed by the Court for voting purposes, after
notice and a hearing.

In addition, the Debtors ask the Court that:

-- whenever a creditor casts more than one Ballot voting the
same claim before the Voting Deadline, the last Ballot
received before the Voting Deadline be deemed to reflect the
voter's intent and thus to supersede any prior Ballots; and

-- creditors must vote all of their claims within a particular
class under the Plan, whether or not the claims are asserted
against the same or multiple Debtors, either to accept or
reject the Plan and may not split their votes. Thus, a
Ballot that partially rejects and partially accepts the Plan
will not be counted.

The Debtors further propose that these Ballots not be counted or
considered for any purpose in determining whether the Plan has
been accepted or rejected:

A. any Ballot that is properly completed, executed, and timely
returned to the Voting Agent, but does not indicate an
acceptance or rejection of the Plan, or that indicates both
an acceptance and rejection of the Plan,

B. any Ballot received after the Voting Deadline unless the
Debtors will have granted in writing an extension of the
Voting Deadline with respect to the Ballot,

C. any Ballot that is illegible or contains insufficient
information to permit the identification of the claimant or
interest holder,

D. any Ballot cast by a person or entity that does not hold a
claim in a class that is entitled to vote to accept or reject the
Plan,

E. any Ballot cast for a claim scheduled as
unliquidated,contingent, or disputed for which no proof of claim
was timely filed,

F. any unsigned Ballot, and

G. any Ballot transmitted to the Voting Agent by facsimile or
other electronic means. (Global Crossing Bankruptcy News, Issue
No. 24; Bankruptcy Creditors' Service, Inc., 609/392-0900)


HEALTH CLINIC: DCM Optical Holdings Buys Assets for GBP10 Million
-----------------------------------------------------------------
Scottish company DCM Optical Holdings, with the help of HBOS,
bought the assets of troubled chain Health Clinic for GBP10
million (US$15.6 million), The Scotsman reports.

HSBC, Health Clinic's bank, which stands to lose GBP25 million
from the insolvency, completed the sell-off process by contacting
administrators in KPMG.

Health Clinic collapsed into administration last week, says the
report.  It floated in 2000 with a stock market value of GBP60
million.  The company reportedly overstated sales to report
losses of GBP800,000, instead of the original GBP3 million to
GBP8 million.

Under the deal, the 20 Eye Clinic shops of Health Clinic will
continue to trade across Britain separate from DCM's Optical
Express stores.


KINGFISHER PLC: Purchases Further Holdings in Hornbach
------------------------------------------------------
Kingfisher plc announces that it has extended its shareholding in
Germany's leading DIY warehouse operator Hornbach by acquiring
17.4 per cent of the non-voting preference shares of Hornbach
Holding A.G. for a cash consideration of EUR36.2 million, taking
its total economic interest in the business to 21.2%.  The Group
has also acquired 5.5 per cent of the ordinary shares of Hornbach
Baumarkt A.G., which is 80 percent owned by Hornbach Holding.
These shares were acquired for a cash consideration of EUR21.5
million.

Sir Geoffrey Mulcahy, Kingfisher's Chief Executive, said:
'We have been really encouraged by the progress we have been
making in developing our relationship with Hornbach. This move
confirms our belief that the business has excellent prospects as
the leading Home Improvement warehouse operator in Germany with
positions in other markets.'

On 27 November 2001, Kingfisher announced that it had acquired a
strategic stake of 25% plus 1 share of the 4 million voting
ordinary shares of Hornbach Holding, which constitute the other
half of Hornbach Holding's total share capital, and that the
Group would account for it as an associated company taking in
12.5% of Hornbach's net income.

Hornbach Holding's main subsidiary is the separately quoted
Hornbach-Baumarkt-AG, which operates 99 stores in six European
countries, including Germany, Austria, the Netherlands, Czech
Republic, Luxembourg and Switzerland.  It also has three separate
garden centres which trade under the umbrella of Hornbach Lafiora
Florapark GmbH.

Kingfisher is Europe's leading home improvement retailer and is
ranked number three in the world. The Company operates more than
590 home improvement stores in 12 countries and enjoys market-
leading positions in the U.K., France, Poland and Taiwan. Sales
for the Home Improvement sector for the year to 2 February 2002
were more than GBP5.8 billion, with retail profit in excess of
GBP430 million.

Kingfisher's Electrical & Furniture business operates more than
830 stores in nine countries. It is Europe's third largest
electricals retailing business by sales and number two by retail
profit. As well as holding the leading position in France and the
number two position in the U.K., Kingfisher also enjoys leading
positions in Belgium and in the Czech and Slovak Republics.
Sales for the year to 2 February 2002 were more than GBP3.7
billion, with retail profit of GBP184 million.

CONTACT: Broker and Institutional Enquiries
         Ian Harding
         Director of Investor Relations
         Tel: +44 (0) 20 7725 4889
         Website: www.kingfisher.com


MAN GROUP: Currently in Talks With Old Mutual on GNI Acquisition
----------------------------------------------------------------
Man Group notes the recent press comment concerning a possible
acquisition of the GNI futures brokerage business from Old Mutual
plc. Man Group confirms that it is in discussions with Old
Mutual, which may or may not lead to the acquisition of the GNI
business for a cash consideration, depending, inter alia, on the
outcome of ongoing due
diligence.

A further announcement may be made in due course as appropriate.

CONTACT:  Man Group plc
          Tel: 0207 285 3000
          David Browne
          Gavin Anderson & Company
          Tel: 0207 554 1400


MARCONI PLC: Wins Contract to Build 3G Transmission Network
-----------------------------------------------------------
Marconi announced that it has been selected by 02, the German
mobile network operator, to build a transmission network to
support the launch of third generation mobile services due to be
introduced in Germany next year. Under the major four-year frame
contract, Marconi will supply its Digital Radio System (MDRS), a
point-to-point microwave radio technology, to enable the
transport of large amounts of third generation traffic from NodeB
base stations to 02's fixed network.

The contract also includes Marconi's Synchronous Digital
Hierarchy (SDH)short-haul systems and antennae systems, as well
as network management, installation, commissioning and training.
The contract also covers long-haul SDH systems and SDH cross-
connect equipment, as well as PDH equipment. Marconi will also
provide consultancy and services support.

Marconi is among the leading providers of telecommunications
transmission equipment in Europe. The company has extensive
experience in installing transmission networks for mobile
operators and is increasingly supplying networks for third
generation (3G) mobile services.

'We have been looking for a SDH microwave radio solution to be
prepared for the ever increasing traffic of new mobile data
services within the transmission part of our network,' said Karl-
Wilhelm Rohrsen, Chief Technology Officer of 02. 'Marconi was
able to prove that they have the right technology to meet our
roll-out requirements and builds on our long-term partnership
with Marconi.'

Commenting on the agreement, Mike Parton, Marconi chief
executive, said: 'Germany is at the forefront in the roll-out of
third generation mobile services and Marconi is playing a central
part by providing reliable, proven transmission networks. The
strength of our technology and our long term customer
relationship played a crucial role in winning this contract and
make us a strong contender to win further 3G transmission network
builds across Europe.'

About Marconi plc
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.

CONTACTS: Heather Green
          Investor Relations
          Marconi plc
          Tel: +44 (0) 207 306 1735
          E-mail: heather.green@marconi.com


TXU EUROPE: Parent Cuts US$700 Million Lifeline - Reports
---------------------------------------------------------
Texas power utility TXU Corp has decided to cut a US$700 million
lifeline for its British arm, TXU Europe, says reports.

Earlier, TXU Corp chief financial officer Mike McNally said that
the company's main concern is the maintenance of the U.S.
operation.

Although TXU promised to support the European operation to help
TXU Europe restructure arrangements, the American parent
maintained that it intends to do an equity injection without
endangering the credit rating of TXU Corp.

According to Reuters, a senior company source told Britain's
Observer newspaper: "The U.S. have said they are unable at the
moment to put equity into Europe given the pressure they are
under in the market".

The European operation, which was hit by weak wholesale power
prices and strong competition, is reportedly affecting the
group's performance.  TXU Corp chose to consider capital
injection over options of selling all or part of the operation,
or severing its link with the subsidiary.

TXU Europe sought trading partners and lenders for help after the
company's US parent, TXU Corp., showed reluctance to provide
US$700 million to the subsidiary, says the Financial Times.

According to the report, some trading partners consented to
waiving options to help the energy company avoid negotiating new
letters of credit.

The energy company warns that if they cannot renegotiate terms
with generators, the company may close its U.K. business or put
it up for sale.

TXU Europe has two thirds of its operations in Britain.  It buys
electricity from six U.K. generators at fixed prices and sells it
on to about 5.5 million customers and the market. The company
needs GBP400 million (US$624 million) a year for the next four
years to maintain its operation. The company also has more
500,000 German and Scandinavia customers.

Utilities analyst at BNP Paribas, estimates TXU Europe's value at
GBP2.6 billion without the loss-making British power purchase
contracts.


TXU EUROPE: To Trim Down Workforce in Geneva Office
---------------------------------------------------
TXU Europe Ltd., which serves 5.5 million customers, plans to cut
60% of its Geneva office workforce, according to reports. While
the company spokesman did not disclose the number of job cuts,
company sources said, 80 to 135 employees will be affected.

The British arm of TXU Corp is among the victims of low power
prices as a result of European marekt deregulation.

Rating agency Standard & Poor's, which downgraded the long-term
corporate credit and senior unsecured debt ratings of TXU Corp's
European subsidiaries to BBB- from BBB+, attributed the energy
company's weak financial performance in 2002 to its exposure to
fixed-power purchase contracts, and intense retail supply
competition, among others.

TXU Chairman Erle Nye disclosed that TXU Europe is renegotiating
long-term electricity contracts to lessen the impact of the
crisis.


WORLDCOM: Wants to Pull Plug on Broadwing Master Service Pact
-------------------------------------------------------------
Worldcom Inc., and its debtor-affiliates are parties to a master
service agreement with IXC Communications Services, Inc., dated
March 25, 1999.  The Agreement has an initial term of five years
commencing on the effective date, February 1, 1999.  Thereafter,
the term will be automatically renewed on a month-to-month basis
unless terminated by either party upon 30 days' prior written
notice.

Pursuant to the Agreement, Lori R. Fife, Esq., at Weil Gotshal &
Manges LLP, in New York, explains that the Debtors lease DS-1,
DS-3, and OC-x capacity on a fiber optic and digital microwave
telecommunications system owned by Broadwing Communications
Services.  The Capacity purchased under the Agreement enables the
Debtors to receive and deliver voice and data traffic.

In accordance with the terms of the Agreement, Ms. Fife notes
that the Debtors are required to pay at least US$230,000,000 for
the Capacity through the termination of the Agreement.  Subject
to certain credits for, among others, late delivery and
interruption, until the full payment of the Total Revenue
Commitment, the Agreement provides that the Debtors will pay to
Broadwing at least US$4,200,000 a month for use of the Capacity.
The Debtors, however, currently use only a small portion of the
Capacity each month.  Specifically, the Debtors have installed
54% of the Capacity under the Agreement; however, the Debtors
are using 15% of that Capacity.  Based on the rates in the
Agreement, the installed Capacity would result in a cost to the
Debtors of US$2,250,000 per month rather than the US$4,200,000
monthly minimum provided in the Agreement.

Accordingly, the Debtors seek the Court's authority to reject the
Agreement, effective as of December 31, 2002.

Based upon the overcapacity in the market, the Debtors do not
believe they will be able to sell or assign the Agreement.  The
Agreement no longer serves any useful purpose for the Debtors. By
eliminating the unnecessary payment obligations associated with
the Agreement, Ms. Fife says, the Debtors' estates will surely
benefit.  "The benefit of the monthly savings clearly outweighs
the detrimental impact, if any, of an asserted rejection damage
claim," Ms. Fife asserts. (Worldcom Bankruptcy News, Issue No. 9;
Bankruptcy Creditors' Service, Inc., 609/392-0900)

DebtTraders reports that Worldcom Inc.'s 6.500% bonds due 2004
(WCOM04USN1) are trading between 12.5 and 13.5 . See
http://www.debttraders.com/price.cfm?dt_sec_ticker=WCOM04USN1
for 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,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


                  * * * End of Transmission * * *