/raid1/www/Hosts/bankrupt/TCREUR_Public/021125.mbx             T R O U B L E D   C O M P A N Y   R E P O R T E R

                             E U R O P E

                 Monday, November 25, 2002, Vol. 3, No. 233


                              Headlines


* B E L G I U M *

LERNOUT & HAUSPIE: Seeks to Settle Suit Filed by SEC

* F I N L A N D *

SONERA CORP: Shareholders in Sonera Accepts Telia's Public Offer

* F R A N C E *

ALCATEL: Matav Awards Transmission Network Expansion in Hungary
ODDO: Fitch Lowers Individual Rating to 'C' From 'B/C'
VIVENDI UNIVERSAL: Davis to Push Offer for U.S. Businesses
VIVENDI UNIVERSAL: EDF to Okay Purchase of Stake in Water Utility

* G E R M A N Y *

BERTELSMANN: Sells German-language Operations of Bol.com
COMMERZBANK AG: Fitch Downgrades Sponsored Note Program
DEUTSCHE TELEKOM: Offers Customized Communications Solutions
INFINEON: To Report Significant Operating Losses for Fiscal Year
MOBILCOM AG: Job Cuts Lower Than Union's Prediction

* G R E E C E *

ANTENNA SA: Moody's Reviews Rating for Possible Downgrade

* P O L A N D *

ELEKTRIM SA: Grants Financial Support to ZE Patnow-Adamow

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

CREDIT SUISSE: CSAM Rates Commercial Property Core Portfolio
ZURICH FINANCIAL: Appoints New Group Finance Director

* U N I T E D   K I N G D O M *

ANITE GROUP: Issues Half-Year Trading Statement, 70 Jobs to Go
ANTISOMA PLC: Gets Research and Development Tax Credit Payment
BABCOCK INTERNATIONAL: Sale of Loss-Making Operations Ups Profits
CABLE & WIRELESS: In Row With Digicel Over Interconnection
EQUITABLE LIFE: Financial Advisers Suggest Winding Up
GLAXOSMITHKLINE: Restores Savings on the Orange Card Company
MARCONI PLC: Provides Update on Progress of Restructuring
MOTHERCARE PLC: Issues Results for the 28 Weeks Ended October 12
ROYAL & SUN: Likely to Announce Asset Disposal in Turnaround Plan


=============
B E L G I U M
=============


LERNOUT & HAUSPIE: Seeks to Settle Suit Filed by SEC
---------------------------------------------------
Lernout & Hauspie Speech Products moves to settle the suit filed
by the Securities and Exchange Commission, alleging that the
software maker engaged in fraudulent schemes to inflate income
and revenue from 1996 to 2000.

The company had asked the bankruptcy court handling its Chapter
11 case for settlement approval, according to Dow Jones.  The
news agency learned that the parties have reached a tentative
resolution, and the U.S. Bankruptcy Court in Wilmington,
Delaware, is set to consider approving the settlement at a
hearing Friday.

Under the settlement, Lernout & Hauspie is prohibited from making
any public statement denying the complaint's allegations or
creating the impression that the order is without factual basis.
The deal also revokes the registration of the company's common
stock.

Lernout & Hauspie admitted it may not be able to successfully
defend itself against the regulator's complaint as the company's
audit committee indeed discovered cases of questionable revenue
recording.


=============
F I N L A N D
=============


SONERA CORP: Shareholders in Sonera Accepts Telia's Public Offer
----------------------------------------------------------------
Telias [SSE:TLIA] public offer to holders of shares and warrants
in Sonera [HEX:SRA, NASDAQ:SNRA] has been accepted by owners
representing more than 90% of the total number of shares and
votes in Sonera. According to the calculations, 1 060 062 362
Sonera shares (including shares represented by Sonera ADS:s) and
26 750 072 Sonera warrants, in aggregate representing 95.0% of
the shares and votes (fully diluted) in Sonera, have been
tenderd. An important condition for the merger between Telia and
Sonera has thereby been fulfilled.

The board of Telia has established that all conditions to the
merger have been fulfilled, with the exception of the condition
in section 1.01 (e) (viii) in the combination agreement between
Telia and Sonera. Telia's board will consider this condition
before the trading in the newly issued shares commences.

The Helsinki Exchanges has decided to admit the Telia shares and
warrants 2002/2005:A to listing on the main list of the Helsinki
Exchanges. Moreover, the Telia ADSs have been admitted for
trading on Nasdaq.

The newly issued Telia shares and warrants are expected to be
available on book-entry accounts on Monday, December 9, 2002,
when trading in the newly issued Telia shares, ADS:s and warrants
2002/2005:A is intended to commence.

Trading in Sonera exchanged shares and exchanged warrants 1999A
is expected to commence on the Helsinki Exchanges Pre List today,
November 21, 2002."

Trading in already issued Telia shares will continue as usual on
the Stockholm Stock Exchange.

Telia is the Nordic leader in telecommunications. Over the past
year, we have streamlined the Group, focusing our core businesses
making the company more flexible. Our four core businesses are:
Mobile communications, Broadband and Internet, Fixed networks and
International carrier operations. Telia is listed on
Stockholmsb"rsen.

Sales Jan-Sep 2002 totaled MSEK 42,727 (42,226) and the number of
employees was 16,244 (22,509). Sales 2001 totaled MSEK 57,196 and
the number of employees was 17,149.


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


ALCATEL: Matav Awards Transmission Network Expansion in Hungary
---------------------------------------------------------------
Alcatel's next-generation optical SDH multi-service systems will
provide increased capacity and flexibility

Alcatel (Paris: CGEP.PA and NYSE: ALA), the world leader in
optical networking, and Matav, Hungary's leading
telecommunication service provider, announced the signature of a
three-year turnkey frame agreement to expand Matav's transmission
metro and backbone network in Hungary. Based on Alcatel's data-
aware optical SDH multi-service systems, the project will enable
Matav to greatly enhance its current network capacity and
flexibility to support new additional high-quality broadband -
such as ATM and Ethernet - and universal mobile telecommunication
system (UMTS)-based services, while lowering the total cost of
network ownership.

Alcatel will supply its next-generation Optical Multi-Service
Nodes (OMSNs) for metro and backbone applications to increase
Matav's network efficiency. Equipped with Alcatel's Integrated
Service Adapter (ISA) plug-in cards, OMSNs will empower Matav's
network infrastructure to further diversify its service offering,
as well as to efficiently handle future multimedia traffic
requirements. Alcatel will team the OMSNs with its sophisticated
network management platform to provide secure and cost-effective
traffic control and routing across the entire network.

"By upgrading its transport network, Matav will be able to better
address the growing end user demand for high-bandwidth services
such as Ethernet and optical virtual private networks" stated
Vilmos Koralewsky, R&D Director of Matav. "Alcatel's managed
solution makes it the ideal partner for leveraging Mat v's
nation-wide network to offer innovative services and lower
operating costs."

"We are pleased to support Matav in its expansion strategy with a
unified solution for voice and advanced data service delivery,"
stated Jean-Marie Vansteenkiste, President of Alcatel's optical
networks activities. "Alcatel's data-aware systems provide
seamless integration capabilities and the reliability required by
operators to scale their current infrastructures at incremental
costs, where and when needed".

The award further consolidates Alcatel's leadership in global
optical networking, as well as the top spot captured in next-
generation Optical Edge Devices (multi-service SDH/SONET
systems)*.

*According to RHK report in 3Q02

About Matav
Matav is the principal provider of telecom services in Hungary.
Matav provides a broad range of services including telephony,
data transmission, value-added services, and through its
subsidiaries is Hungary's largest mobile telecom provider. Matav
also holds a majority stake in Stonebridge Communications AD
controlling MakTel, the sole fixed line and the leading mobile
operator in Macedonia. Key shareholders of Matav as of September
30, 2002 include MagyarCom, owned by Deutsche Telekom AG
(59.21%), while 40.79% is publicly traded

About Alcatel's Optical Multi-Service Nodes (OMSN)
Designed for both metro and core applications, Alcatel's Optical
Multi-Service Nodes provide world-class next-generation SDH
functionality and capacity through aggregation of broadband
multi-protocol traffic patterns. Their deployment allows
operators of optical transport networks to achieve the optimal
balance between new competitive service offerings and traditional
revenue-generating services by introducing a wide variety of data
managed services - including top-level differentiated QoS
capabilities, variable service rates and traffic congestion
management. Supporting STM-4c, STM-16c and STM-64c concatenated
payloads, OMSNs deliver integrated ATM and Packet Ring/MPLS
switching, as well as LAN interfaces (Ethernet, Fast Ethernet and
Gigabit Ethernet) by integrating ISA plug-in modules. Although
configurable as ADMs (Add-Drop-Multiplexers), OMSNs have full
cross-connect capability thanks to their symmetrical and scalable
architecture. OMSNs are flexible for use in all network
topologies - i.e.: point-to-point, linear chains, multiple rings,
meshed networks - and ensure complete synergistic use of hardware
items across the systems, from common parts to traffic ports.
Additionally, they all have fully non-blocking SDH matrices
(HO/LO) and support all standard PDH interfaces.

About Alcatel's ISA (Integrated Service Adapter) plug-in cards
ISA plug-in cards integrate data-aware features into SDH
transport networks enabling operators and service providers
efficiently handle expanded data traffic while increasing overall
revenues. The ISA solution extends the already-rich range of
PDH/SDH TDM interface ports available on Alcatel's OMSNs by
providing ATM and Packet Ring/MPLS switching, Ethernet rate-
adaptive transport and transparent Gigabit Ethernet capabilities.
ISA cards can be adapted into new or previously installed OMSNs
as an add-on - where and when needed - that optimizes bandwidth
management and reduces both transport infrastructure costs and
time-to-market for the introduction of new data services in the
network. ISA multi-service capabilities are managed by an add-on
network management application that guarantees tight and
efficient operations across the data and transmission network
layers.

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.

According to leading telecom market research firm RHK, Alcatel
was the 2001 world leader in global optical transport -
encompassing terrestrial and submarine applications - with 17%
market share, in terrestrial optical transport with 14.2% market
share and in submarine optical transport with 41% market share,
an unprecedented achievement in the telecom industry. Alcatel's
optics business comprises optical components, optical fibers,
SDH/SONET and DWDM systems, cross-connects, microwave radio
links, network intelligence, and services for both terrestrial
and submarine applications.


ODDO: Fitch Lowers Individual Rating to 'C' From 'B/C'
------------------------------------------------------
Fitch Ratings downgraded Oddo's long-term rating to 'BBB+' from
'A-' and its Individual rating to 'C' from 'B/C'.  The
stockbroker's short-term rating of 'F2' and Support rating of '4'
are, meanwhile, affirmed. The Long-term rating is assigned a
stable outlook.

According to the international rating agency, the action reflects
the strong pressure the company is feeling from the depressed
French stock market.  The rating agency takes the action while
considering the company's good core fundamentals, which include
strong capitalization and good quality management.

Fitch predicts no foreseeable improvement in the near future for
the business environment.

The rating agency notes that since May 2001 Oddo suffered from
reduced volatility and lower trading volumes in the primary and
secondary markets.  The condition was largely attributed to the
54% fall of the French CAC 40 Index since its peak in September
2000.

The phenomenon resulted to the lowering of the firm's operating
income and operating profit by 26% and 41% respectively in 2001,
and down a further 24% and 55% in the first eight months of 2002.

Yet, Fitch affirms that Oddo's performance has been partially
safeguarded by recurring revenues from portfolio and asset
management activities, efforts to reduce the cost base and
positive exceptional items.

Oddo is registered for trading on the Paris Stock Exchange and on
the French Futures Exchange.  Its four main activities are:
stock, option, bond and future brokerage; asset management and
private banking; proprietary trading through option market making
and cash/future arbitrage; and corporate finance, on a limited
basis.


VIVENDI UNIVERSAL: Davis to Push Offer for U.S. Businesses
----------------------------------------------------------
Marvin Davis, the 31st richest American, is pushing with his
offer to buy Vivendi Universal's U.S. assets despite being
refused by the entertainment company on grounds that the business
are not being sold.

In a statement, Mr. Davis says the talks would continue in the
new year and may close within four months.

Investors say Davis may return with a higher bid, or encourage
other investors to consider an acquisition, says Bloomberg.

According to the report, The Wall Street Journal said that Davis
and a group of private-equity companies are ready to pay US$15
billion for the assets and assume US$5 billion of debt.  Davis
and Vivendi's spokesman did not confirm the figure, while a
spokesman for Davis declined to comment.

In conjunction with his declaration in September to keep the
assets, Chief Executive Officer Jean-Rene Fourtou named Barry
Diller to run the U.S. operation.  Mr. Diller will manage the
business under his current role for six months.

Davis, meanwhile, did not assign a role for Mr. Diller in his
plan.  He just mentioned that Brian Mulligan, former chief
financial officer of Seagram/Universal, would play a ``leading
role'' at the company.

Investors believe Mr. Davis would not pursue his offer just like
others he left out, particularly the bid to buy a stake in the
Desert Inn casino-hotel in Las Vegas and New York City's General
Motors building.

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: EDF to Okay Purchase of Stake in Water Utility
-----------------------------------------------------------------
The board of Electricite de France is expected to approve the
purchase of a 4% stake in Vivendi Environnement that would
entitle the former to buy the same worth of stake in two years to
make it the group's largest shareholder.

The EUR400 million-worth purchase is considered as part of a
government-backed plan to keep the water and waste group French.
Caisse es Depots et Consignations is also expected to acquire
part of the asset to keep the group from falling into foreign
bidders.

The media and entertainment group targets to raise nearly EUR2
billion from the sale of the first 20.2% in Vivendi
Environnement.  Its 40.4% stake, worth EUR3.7 billion at market
prices, is being sold in two stages through off-maket
transactions in compliance with a lock-up agreement.

Vivendi is selling asset to pre-empt Vodafone's purchase of a 26%
in Cegetel, the telecommunications group which owns mobile phone
operator SFR.  The conglomerate needs EUR4 billion to contest the
bid.

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


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


BERTELSMANN: Sells German-language Operations of Bol.com
---------------------------------------------------------
Bertelsmann sold the German-language operations of its troubled
online book retailer, Bol.com, to rival buch.de internetstores
AG, for a 25.1% stake in buch.de and EUR800,000 (US$801,000) in
cash.

The sale involves bol.com's German, Swiss, and Austrian customer
base and Internet domains.

German media giant, meanwhile, is also selling bol.com's business
in the Netherlands, and is in talks on the sale of its 50% stake
in Swedish online bookseller, Bokus, to Kooperativa Forbundet.

Bertelsmann DirectGroup spokesman, Gerd Koslowski, says the
company is keeping its online retail activities in China, Italy
and Britain, which are part of the core book club activities.

The German media giant put Bol.com for sale as it abandons
operations in Internet-related business.


COMMERZBANK AG: Fitch Downgrades Sponsored Note Program
-------------------------------------------------------
Fitch Ratings has lowered the rating of Four Winds Funding LLC, a
US$3.5 billion floating-rate note program, sponsored by
Commerzbank AG, to 'F2' from 'F1'. The rating action is a result
of Fitch's Nov. 20, 2002 downgrade of Commerzbank's short-term
rating to 'F2' from 'F1'. Four Winds LLC was solely established
to issue floating-rate notes and use the proceeds to finance the
purchase of asset-backed commercial paper issued by Four Winds
Funding Corp. Commerzbank serves as a primary credit and
liquidity support provider to the asset-backed commercial paper
issued by Four Winds Funding Corp., and therefore, the bank's
downgrade directly impacts the credit protection and liquidity
support afforded to the floating rate note holders.

The bank's downgrade reflects Fitch's view that Commerzbank will
continue to struggle to report more than minimal operating
profitability given the poor economic environment, despite
intensified cost-cutting measures and relatively sound risk
controls. Fitch is also concerned about the bank's low
capitalization, which it can only hope to improve in the short to
medium term by reducing risk assets. The bank is addressing some
of the structural difficulties it faces but, given the absence of
a strong profitable retail franchise that would enable it to
compete effectively with its European peers, it remains largely
dependent on external economic factors and market conditions to
improve revenue generation and reduce loan loss provisions.


DEUTSCHE TELEKOM: Offers Customized Communications Solutions
------------------------------------------------------------
Deutsche Telekom is assisting craft businesses to fulfil their
important role in the market by offering them customised
solutions to help make them fit for the competitive nature and
possibilities of the internet. As well as free training in the 96
T-Punkt shops for corporate customers throughout Germany (T-Punkt
Business), Deutsche Telekom is offering cost-effective solutions
for fast internet access in the form of the T-DSL and T-DSL
Business products.

On the occasion of the conferment of the Internet Prize of German
Crafts, held at Deutsche Telekom's Berlin Representative Office,
Achim Berg, Member of the T-Com Board of Management responsible
for the company's National Business, emphasised, in the presence
of Rezzo Schlauch, State Secretary for the Federal Ministry of
Economics and Labour, and Dieter Philipp, President of the German
Confederation of Small Business and Skilled Crafts (ZDH): "As one
of the sponsors of this award and with our initiative 'SMEs go
online', we are aiming to make small and medium-sized enterprises
and craft-based firms fit for the information age. "Small and
medium-sized businesses in particular are to be given the impetus
to invest in the possibilities of new information and
communications technology", according to Berg. "We are using all
resources available within the Deutsche Telekom Group to offer
small and medium-sized craft businesses innovative complete
solutions tailored to their individual needs from one single
source."

Under the motto "Zukunft gewinnen - Handwerker ans Netz" (Grasp
the Future - Craft Workers go Online), the Federal Ministry of
Economics and Labour has, for the second time, initiated an
internet competition for the skilled craft sector. The Internet
Prize of German Crafts is awarded on a yearly basis by Deutsche
Telekom AG, together with the ZDH and the business magazine
"Impulse". The aim of the prize is to draw the attention of craft
businesses to the advantages, possibilities and applications
available on the worldwide web so that they recognise the
benefits of the Net and learn how to use it even better as a
"tool of the future".

This public-private partnership is looking for examples of
innovative and practice-oriented, internet-based applications
from within the craft sector. The prize is awarded for the "best
examples" of internet-based communications technology, which lead
to improvements in working processes and increase efficiency in
purchasing, production and sales.

For further information on the Internet Prize of German Crafts,
go to: www.zdh.de/internetpreis/ bzw. www.telekom.de/handwerk And
for information of Deutsche Telekom AG's products and services,
visit: www.telekom.de


INFINEON: To Report Significant Operating Losses for Fiscal Year
----------------------------------------------------------------
Infineon's operating losses before tax and interest for the
current fiscal year through September 2003 may exceed EUR200
million (US$200 million), which is contrary to analyst forecasts
of an operating profit for the period.

The Financial Times Deutscland learned the information in an
internal paper drawn up by the semiconductor manufacturer's
supervisory board.  Infineon, in the document, warned of sharper
increases in costs for the company's dynamic random access memory
(D-Ram) chips - and for its semiconductor mobile communications.

The world's third-biggest producer of chips for personal
computers expects an operating loss of EUR220m for memory chips
due to the sharp decline in demand in recent months.

The Financial Times noted that the company's chief executive,
Ulrich Schumacher, earlier declined to forecast result for the
current fiscal year, due to the unpredictability of the market
condition, while analysts from Goldman Sachs and WestLB predicts
operating profits of EUR200 million.

The company, meanwhile, expects sales to rise by 35% to about
EUR7 billion, as opposed to analyst's predictions of EUR6.2
billion.


MOBILCOM AG: Job Cuts Lower Than Union's Prediction
---------------------------------------------------
The job cuts at troubled German telecom group, Mobilcom, is
smaller than what the trade union predicted.

Mobilcom will slash 1,850 workers, short of the 2,100 expected by
union in September.  The company has 5,000 employees.

According to press agency APA, IG-Metal union delegate, Kaj
Petersen, confirmed that the work council and management have
been informed of the figures.

Mr. Peterson explained that the decrease in number of the job
cuts is due to the decision to retain some of the workers of the
callcenter in Kiel, and to dismiss part-time employees from
MobilCom's internet subsidiary, freenet.de, instead.


===========
G R E E C E
===========


ANTENNA SA: Moody's Reviews Rating for Possible Downgrade
---------------------------------------------------------
Moody's Investors Service placed the ratings of media group,
Antenna, under review for possible downgrade to reflect continued
weakness in the group's perfomance.  The action affects EUR265
million of Debt Securities.

The ratings affected are:

- Senior implied rating at Ba3

- Senior unsecured issuer rating at Ba3

- US$ 115 million of 9.00% senior unsecured notes due 20007 at
Ba3

- Euro 150 million of 9.75% senior unsecured notes due 2008 at
Ba3

The rating agency notes that, while Antenna shows small year-
over-year improvement in EBITDA for the third quarter of 2002,
EBITDA for the full-year is expected to be materially below
Moody's previous expectations.

Moody's attributes Antenna's weakened financial position to
increased competition in both TV broadcasting and publishing,
compounded with a weakened Greek advertising market.

The agency intends to focus its review on

- on-going competitive trends in the Greek media market and their
effect on the company's cash flow profile,

- potential developments in the Greek advertising market

- expectations for overall revenue growth and cost reductions
(and resultant de-leveraging on a Debt/EBITDA basis) over the
short to medium-term

- Antenna's ability to further improve its cash burn rate, going
forward, and

- expectations with respect to the realisation of value (and
usage of proceeds) from the company's Euro 46mm investment (made
during 2000) in Athenian Holdings.

Antenna operates television broadcaster and television
programming producer Antenna TV, radio station Antenna FM, and
publishing company Daphne.


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


ELEKTRIM SA: Grants Financial Support to ZE Patnow-Adamow
---------------------------------------------------------
The Management Board of Elektrim S.A. announces that following
the decision to grant financial support to ZE Patnow-Adamow-Konin
S.A. for the continuation of the investment project and pursuant
to the agreement with bondholders, Elektrim S.A. transferred all
funds provided for in the loan agreement to ZE PAK S.A., i.e. the
PLN equivalent of EUR 32 million.



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


CREDIT SUISSE: CSAM Rates Commercial Property Core Portfolio
------------------------------------------------------------
Credit Suisse Asset Management believes commercial property
should be seen as a core component of a portfolio rather than an
alternative asset class. Our reasons for this can be outlined as
follows:

- UK Commercial Property has outperformed other asset classes
over 3, 5 and 10 years. The total return forecast for 2002 is
9%.*

- Property values rise and fall, but with limited correlation to
equities in particular.

- Property offers bond characteristics due to lease length with
potential for income enhancement from upward only rent reviews.

- Current property yields are at an historic high - average
income yield is 7.1%.**

- Property offers the opportunity for capital enhancement,
through active management.

- Many pension funds currently need income to match liabilities.

- Property was 20% of an average pension fund 20 years ago - now
poised to re-emerge as a core asset class rather than just
another 'alternative investment'. ***

CSAM believes that the issue of illiquidity of property as an
asset class has been overplayed, and property is little different
from any other sector where the investor is making sufficiently
large disinvestments.

The implications of FRS17, where unfunded pension liabilities
must be stated in a company's balance sheet, are leading analysts
to look further at measuring risk. (FRS17 requires recognition,
in a defined benefit pension scheme's funding company's balance
sheet, of the market value of the pension fund's assets and
liability to fund future pensions). CSAM believes the conclusion
is that the equity and bond characteristics of property mean that
it should be considered a core asset class.

Glenn Newson, Head of Property at Credit Suisse Asset Management,
said:

"As the number of retail funds grow, and as institutions increase
weightings, the future for property as a core asset class looks
well placed. If the sector can also overcome the reluctance by
asset allocators for weightings to float within a prescribed
band, rather than seek to dispose of property if the stockmarket
falls, then property really will be a core component. We believe
property should be a long term strategic part of asset
diversification."

* Source: IPD Monthly Index
** Source: Quarterly Rents & Yields Report
*** Source: EGi Research

Credit Suisse Asset Management is the institutional and mutual
fund asset management arm of Credit Suisse First Boston, part of
the Credit Suisse Group, one of the world's largest financial
organizations with approximately o524.2 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 September 30, 2002, Credit Suisse Asset Management employed
2,270 people worldwide and had global assets under management of
approximately o181.8 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:  Jane Collins
          Credit Suisse Asset Management
          Co-Head UK Institutional Marketing Telephone
          Phone: +44 (0) 207 426 2873

          Jim Owen
          Credit Suisse Asset Management
          Co-Head UK Institutional Marketing Telephone
          Phone: +44 (0) 207 426 2541

          Gay Collins / Ben Curson
          Penrose Financial Telephone
          Phone: +44 (0) 207 786 4888



ZURICH FINANCIAL: Appoints New Group Finance Director
-----------------------------------------------------
Zurich Financial Services has appointed Patrick O'Sullivan, 53,
to be Group Finance Director and member of the Group Executive
Committee effective December 2, 2002.  Patrick O'Sullivan has
been Chief Executive, General Insurance and Banking, at Zurich
Financial Services UKISA Division since 1998.  In his new
responsibility he will assume leadership for all of the Group's
finance functions, and he will be reporting to Zurich's Chief
Executive Officer James J. Schiro.

James J. Schiro said: "Patrick's skill and breadth of experience
will provide the leadership and discipline needed to strengthen
all aspects of our financial function. He will help drive our
profit improvement initiative and further develop our
relationships with financial institutions and investors."

Before joining Eagle Star Insurance Company in 1997, which became
part of the Group as a consequence of the merger with BAT
Financial Services, Patrick O'Sullivan held management positions
with Bank of America, Goldman Sachs International, GE Capital and
BZW, the Investment Banking arm of the Barclays Group, where he
was Chief Operating Officer from 1996 to 1997.  Patrick
O'Sullivan is a Fellow of the Institute of Chartered Accountants
in Ireland and a graduate of Trinity College, Dublin, as well as
the London School of Economics.

Zurich Financial Services is an insurance-based financial
services provider with an international network that focuses its
activities on its key markets of North America, the United
Kingdom and Continental Europe. Founded in 1872, Zurich is
headquartered in Zurich, Switzerland. It has offices in
approximately 60 countries and employs well over 70,000 people.

CONTACT:  Zurich Financial Services
          Media and Public Relations
          8022 Zurich, Switzerland
          Phone: +41 (0)1 625 21 00
          Fax: +41 (0)1 625 26 41
          Home Page: http://www.zurich.com


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


ANITE GROUP: Issues Half-Year Trading Statement, 70 Jobs to Go
--------------------------------------------------------------
Anite Group plc, the European consultancy and services company,
announces a trading update for the six months ended 31 October
2002.

Current Trading

As indicated at the time of the Annual General Meeting in
September, market conditions continue to be challenging but we
remain confident that, for the year as a whole, the underlying
performance of the Group will be in line with expectations,
continuing to benefit from its business and geographical
diversification.

In respect of the first half, as indicated at the time of the
preliminary results in July, pre-tax profits before exceptional
items and goodwill amortisation will be lower than the
corresponding period in 2001/2 as result of a GBP2m increase in
research and development spending within our Telecoms and Public
Sector divisions, together with the second half bias in the
delivery patterns of the strongly growing Public Sector business.
In addition, first half restructuring costs of o1m have been
incurred together with pre-sales costs in relation to the
successful award of the GBP 11m State of Victoria contract.

The Group's focus for the period has been on managing its assets
and good housekeeping, as evidenced by strong cash generation,
driving the synergies of the businesses, successfully
renegotiating the earnouts and reducing costs.

Key points for the period since the preliminary results in July
include:

At the Group level, revenue growth has been achieved but margins
have been impacted, as expected, by higher R&D costs, and first
half restructuring costs, leading to lower profits.

The recruitment of a new Finance Director is progressing well -
we expect to be in a position to announce an appointment early in
the New Year. In the period under review, the finance director's
role has been ably handled by other members of our finance team,
both at head office and in the divisions.

The interim results will include the exceptional GBP 0.75m cost
relating to the departure of the outgoing Finance Director.

There has been strong cash generation and control of working
capital in the first half and the Group is operating comfortably
within its banking facilities:

Net debt (including outstanding loan notes): at the half year end
stood at around GBP 17m (30 April 2002: GBP 11.5m), after GBP 16m
of earnout payments.  A similar level of net debt is anticipated
at the year's end after paying a further GBP 12m in earnout
payments.

Restructuring:
First half - there has been a headcount reduction of 30,
principally in Consultancy in Germany and Travel, giving
annualised savings of o1m, with a first half restructuring cost
of GBP 1m.

Second half - there will be a headcount reduction of a further
70, principally within Public Sector, which is expected to give
annualised savings of o3m at a cost of GBP 1.5 - GBP 2m.

The earnout obligations for Calculus, Carus, Didgicom, MSPS,
Parsec, and Rox, representing 78% of the Group's total potential
earnout liabilities, have been successfully renegotiated;
negotiations to crystallise the remaining smaller uncapped
earnouts are underway.  A detailed breakdown will be provided at
the time of the interim results.

A review of goodwill relating to past acquisitions will result in
an impairment charge of c. GBP 35m being included in the interim
results, principally in respect of Anite Calculus, which was
acquired in December 2000.

All acquisitions have been successfully integrated. Only one
acquisition was completed in the current financial year (CME in
June), and none are currently expected in second half.

The Group has seen strong order intake of GBP 114m in the first
half; the divisional outlook and order book positions are as
follows:
Public Sector - the outlook is excellent with an order intake to
revenue ratio of 1.2. Orders in the first half were up 50% on the
same period last year including the recently announced GBP 11m
State of

Victoria contract which utilised the skills of five of the
Group's companies

Travel - the outlook is reasonable with an order intake to
revenue ratio 0.8.  The MyTravel contract proceeding to plan

Telecoms - the outlook is reasonable with an order intake to
revenue ratio of 0.9. Testing solutions order intake was up 16%

Consultancy - the outlook is uncertain with an order intake to
revenue ratio of 1.0.  Approximately 25% of consultancy sales
were represented by applications management and support on longer
term contracts

Divisional review

Public Sector
Public Sector has enjoyed a strong order intake in the first half
and there is a strong order pipeline going forward.  Substantial
progress was made in the first half, although as previously
indicated profits were impacted by increased R&D and the timing
of deliveries.

Public Sector is now our largest business, currently with over
900 people, built up through organic investment and acquisition.
All the acquisitions have now been integrated into one
organisational structure with three divisions focused on local
and regional government; central government; and Scotland.  The
integration has given us the opportunity to remove duplicated
activities without impacting the division's capacity to exploit
growth, and we have therefore instigated a plan to reduce the
total number of employees by 70, approximately 8% of Public
Sector's workforce, providing annualised savings of GBP 3m.

As part of this reorganisation, we have strengthened the
division's management.  John Gibson, who joined us from Bull
Information Systems Ltd where he was chief executive, has been
appointed managing director of Public Sector, whilst Ian Tait,
has been appointed to the new role of head of European and
International Operations, having been managing director of Public
Sector.

Dati, a Latvian based software development group which provides
software and services and for which we have an option to acquire,
has as expected been used on a number of projects in Public
Sector and other divisions. The benefits of this low cost
offshore development resource are that it enables us to continue
to invest in product development at a considerable saving and to
take advantage of new business opportunities.

Travel

The Travel division continues to make good progress following the
acquisition and integration of FSS, despite tough market
conditions.  Travel will also benefit from further cost savings
made from a reduction of 12 employees. The high percentage of
revenues derived from managed services, applications management
and support contracts provides good forward visibility and a
predictable revenue stream from its key customers.  However,
discretionary spend from travel market customers is proving less
predictable because of the current economic climate.

In the light of recent speculation surrounding MyTravel, it is
appropriate to clarify our trading position with this customer.
We have a long-term managed services contract with MyTravel that
continues to be implemented successfully and without
interruption.  The customer in return continues to meet all its
obligations to us.  The annualised value of this contract
represents around 5% of the revenues of the Travel division and
the contract period is for 10 years with a 3 year break clause.

Prospects for the Travel division remain good on the back of its
strong market position and the long-term nature of its managed
contracts, although its market remains challenging.

Telecoms

The core testing business continues to perform well in a
difficult market.  The prospects for 3G testing are steadily
improving and as a result we continue to invest in R&D in this
sector.   Order intake for core testing solutions, which
represents approximately 93% of the turnover of our Telecoms
business, has increased by 16% driven by continued success in 2G.
We have a healthy prospect list for both 2G and 3G solutions.

The remainder of the division includes Anite Calculus, a supplier
of billing solutions to the telecom market, which we acquired in
December 2000.  Since acquisition, the billing market has not
performed as expected, and we have decided, therefore, to review
the carrying value of the goodwill acquired with this business.



Consultancy

The Consultancy business continues to trade profitably, albeit at
a lower level than last year.  The market for Consultancy
services is under extreme pressure with an over-supply of
services and shortening contract cycles.  In addition, we have
seen particular pricing pressure in the Netherlands and Germany.
As a result, we have taken the opportunity to rationalise our
German businesses, which has resulted in the closure of offices
and a reduction in staff.

The division continues to focus on utilisation levels, keeping
overheads low and diversifying the business as far as possible in
applications management and support contracts. Overall the
division continues to benefit from:

-- Application and management support contracts in Germany

-- An increase in public sector contracts won through the German
armed forces

-- Over 100 of our consultants being linked to long-term
contracts with customers - resulting in a variable cost structure

-- Strong margins and utilisation in our French and U.K.
consultancy base.

Commenting on the trading update, John Hawkins, Chief Executive
of Anite, stated:

"Overall, we are confident that, for the year as a whole, Anite
will perform in line with expectations, continuing to benefit
from its business and geographical diversification against a
background of tough trading conditions.

"Our strategy to focus on building strong market positions in
our chosen sectors means that the Group, following the actions
taken to renegotiate the earnout obligations, reduce costs and
drive synergy benefits from the integration of its recent
acquisitions, will be well placed to recover strongly in 2003/4.

"We will provide a further update on trading and a detailed
review of the actions taken, at the time of the Group's interim
results announcement, which is currently planned to be released
on Wednesday, 11 December 2002."

CONTACT:  Anite Group plc
          Phone: 0118 945 0129
          Home Page://www.anite.com
          John Hawkins, Chief Executive
          Neil Bass, Group Financial Controller

          Weber Shandwick Square Mile
          Phone: 020 7950 2880
          Reg Hoare


ANTISOMA PLC: Gets Research and Development Tax Credit Payment
--------------------------------------------------------------
Antisoma announces that it has received GBP1,096,356.00 plus
applicable interest relating to a claim for a Research and
Development tax credit payment in respect of the financial year
ended 30 June 2002.

Note:

Recently, Antisoma announced that as a result of the higher
research and development costs and lower revenues, losses in the
period have increased to GBP 3.0 million.

CONTACT:  Antisoma plc
          Raymond Spencer, Chief Financial Officer
          Phone: +44 (0)20 8799 8200


BABCOCK INTERNATIONAL: Sale of Loss-Making Operations Ups Profits
-----------------------------------------------------------------
Babcock International reports good news as sale of its loss-
making materials-handling businesses made it post sharp rise in
pre-tax profits from GBP100,000 to GBP7 million.  Operating
profits were up 16% to GBP9.2m for the six months to the end of
September.

The company further expects to benefit from the new GBP3 billion
Ministry of Defense order to build two new aircraft carriers.  It
believes that the deal would secure more than 100 jobs at its
Rosyth dockyard in Fife.

Chief Executive Gordon Campbell hopes to get rid of its loss-
making materials businesses by next June.  Babcock hopes to
proceed with the sale of its Chronos Richardson, accepting that
the offer price would be less than book value.  The sale of
Chronos leaves the company with one marine unit to be sold.

Mr. Campbell suggested to re-classify the business as services
business, rather than an engineering company, to attract better
ratings on the stock market.


CABLE & WIRELESS: In Row With Digicel Over Interconnection
----------------------------------------------------------
Irish investor Digicel has accused the U.K.'s Cable & Wireless of
delaying an interconnection agreement.  The company has already
been granted mobile services in St. Lucia and St. Vincent.

"We want to conclude an interconnection agreement to meet our
service schedule, but C&W is blocking this," says Seamus Lynch,
chief operating offer of Digicel.

Mr. Lynch says C&W is reluctant to share the market as "70 per
cent of the company's profits come from the Caribbean".
The British telecommunications provider, whose exclusive
operation license is currently being surrendered to the Caribbean
government, declined to comment holding that its negations with
new players in the market are "are subject to very stringent non-
disclosure agreements."

Although both parties refused to reveal the nature of the
disagreement in the negotiations, the Financial Times learned
that Digicel has accused C&W of not ordering equipment to allow
interconnection.

The British government reportedly rejected the offer of Digicel
to order the equipment and seek reimbursement.

Donnie DeFreitas, managing director of Ectel, the telecom
regulator for five eastern Caribbean islands, confirmed that the
disagreement concerns the "speed of the process."

C&W reported revenues at C&W Regional, which runs fixed-line and
mobile businesses across the Caribbean, at 8 % higher over the
previous year at GBP1.46 billion (US$2.3 billion).


EQUITABLE LIFE: Financial Advisers Suggest Winding Up
-----------------------------------------------------
Financial advisers recommend winding up of Equitable Life to
protect policyholders after the assurer warned it may not be able
to pay bondholders interest that falls due next August.

Tom McPhail, pensions research manager at Hargreaves Lansdown,
said: "Insolvency has become such a real possibility that a
voluntary wind-up would be a preferable option."

A wind-up would let investors transfer funds to a new life
assurer, halting further decline in the value of their policies,
whereas, possible insolvency of the insurer could only lead to
further fall in the value of investment.

According to The Herald, advisers noted that the number of
members seeking to bailout had increased sharply.

Clients have been openly advised to withdraw while it is still
possible.  The report says, Linlithgow-based advisers Alan Steel
Asset Management confirmed they had been advising clients with
any surviving policies to exit as soon as possible.

But a spokesman for Equitable said a wind-up is "a very costly
process that served no one's interests".

Liz Kwantes, spokeswoman for one of the Equitable policyholder
groups, meanwhile suggested that government give the firm an
interest-free loan to avoid further cuts in the policyholders'
pay-outs.

She also demanded hiring full-time executive directors to the
company's board, as it only has a chief executive and chief
financial officer.


GLAXOSMITHKLINE: Restores Savings on the Orange Card Company
------------------------------------------------------------
GlaxoSmithKline (NYSE: GSK) announced today that the company is
restoring the original savings levels offered on its medicines
through the Orange Card program. The company also will reimburse
cardholders who purchased GSK medicines using their Orange Card
during the period from October 1 through mid-November. Checks
will be sent to eligible cardholders in an amount equal to the
difference between the program's original savings level and the
amended savings level.

In October 1, GSK lowered the savings levels it offered on its
outpatient medicines through the Orange Card and Together Rx
programs because of uncertainties about how these programs would
be treated under government pricing regulations. Last month,
these pricing issues related to the Together Rx were resolved
and, recently, Medicare officials clarified their position on the
GlaxoSmithKline's Orange Card program.

"More than 100,000 seniors have benefited from the savings they
get by using the Orange Card," said Robert Ingram, GSK's Chief
Operating Officer and President, Pharmaceuticals. "I am delighted
that we're now able to restore Orange Card savings levels for
these Medicare recipients who enjoy the benefits of their Orange
Cards."

The administrator of the card program will process checks to
eligible Orange Card enrollees. No action is needed on the part
of those who used their Orange Card to purchase GSK medicines
during the period of amended savings - checks will be sent
automatically. Orange Card participants who have questions,
should call 1-866-333-9721.

GlaxoSmithKline - one of the world's leading research-based
pharmaceutical and healthcare companies - is committed to
improving the quality of human life by enabling people to do
more, feel better and live longer.

The Orange Card was launched by GSK almost one year ago as the
first manufacturer prescription savings program for low-income
seniors and the disabled enrolled in Medicare, who do not have
private or public insurance drug coverage. The card was designed
so participants would realize average savings of 30% off the
usual price they pay for outpatient GSK medicines at the
pharmacy. Orange Card income limits are $30,000 for an individual
and $40,000 for a couple (roughly 300% of the federal poverty
level). To date, more than 100,000 people have signed up for the
card.

The Together Rx Card is a joint pharmaceutical company initiative
to provide significant point-of-sale savings on a wide variety of
prescription medicines to lower-income Medicare enrollees using a
single card. Together Rx is designed so cardholders would realize
savings ranging from approximately 15% to 30% and in many cases,
substantially more off the price they usually pay for
prescription medicines at the pharmacy. More than 150 medicines
from Abbott Laboratories, AstraZeneca, Aventis Pharma, Bristol-
Myers Squibb Company, GSK, Novartis Pharmaceuticals Corp. and
Johnson & Johnson are available through the card. Each company
sets its own level of savings independently. Those eligible for
the card are individuals enrolled in Medicare, who lack
prescription drug coverage of any kind and who earn less than
US$28,000 annually (US$38,000 for couples). Income requirements
differ in Alaska and Hawaii. Nearly 400,000 people have signed up
for the card.


MARCONI PLC: Provides Update on Progress of Restructuring
---------------------------------------------------------
Following the announcement by Marconi on 29 August 2002 of the
indicative terms of the proposed financial restructuring, the
Company continues to make progress in documenting the transaction
in conjunction with a co-ordinating committee of syndicate banks
and an informal ad-hoc committee of bondholders.

The Company still expects to complete the restructuring in line
with the terms announced in August, including the initial cash
distribution of GBP260 million, of which o95 million has already
been paid in the form of interest payments. There are, however, a
number of detailed issues that are being addressed which have
impacted the completion of the scheme documentation and listing
particulars required to launch the restructuring.

The delay in finalising the documentation means that the Company
no longer believes that the expected date for completion of the
restructuring, 31 January 2003, is achievable. The Company is
having constructive discussions with its creditor committees
regarding a new target date for completion within the first
quarter of 2003. The revised proposals will be considered by
creditor constituencies over the next few days and the Company
expects to make a further announcement in the near future. In the
light of this delay, the Company has decided to postpone
publication of its interim results, originally scheduled for 26
November 2002, until Thursday, 5 December 2002.

Marconi's Board continues to believe that the proposed
restructuring is in the best interests of Marconi, and its
stakeholders as a whole. The Board expects that it will continue
to receive the support of both the syndicate banks and the
informal ad-hoc committee of bondholders.

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 customer base includes
many of the world's largest telecommunications operators. The
company is listed on the London Stock Exchange under the symbol
MONI. Additional information about Marconi can be found at
www.marconi.com

CONTACTS:  Joe Kelly/David Beck
           Public Relations
           Phone: +44 (0) 207 306 1771
           E-mail: joe.kelly@marconi.com

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


MOTHERCARE PLC: Issues Results for the 28 Weeks Ended October 12
----------------------------------------------------------------
Summary

-   Group sales up 0.8% to GBP228.0m, (2001, GBP226.2m), UK like-
for-like sales down 2.1%, International sales up 29.5%, Direct
sales up 11.0%

-   Gross margin down by 0.8 percentage points, affected by
discounting, product and business mix

-   Cost increases of 13.8%, driven by warehouse and distribution

-   Loss before tax and exceptional items GBP10.0m, (2001,
GBP4.8m profit)

-   U.K. like-for-like sales in the five weeks to 15 November
2002 now positive, 1.4%, and at higher gross margins

Mark McMenemy, Finance Director and acting Chief Executive,
comments:

'After a very difficult period for the business, the sales
picture is now positive and the stores well stocked for Christmas
trading.  Gross margins are now benefiting from a less
promotional stance.  The high cost of warehousing and
distribution continues to be a major impediment, and new options
to bring it back to acceptable levels are being urgently
considered.'

FINANCIAL RESULTS

28 weeks ending 12th October, 2002

Group sales in the first half increased by 0.8% to GBP228.0m
(2001, GBP226.2m).  The gross margin declined by 0.8 percentage
points.  This was due to a combination of discounting, product
mix  and growth in the lower margin International business.
After a 13.8% increase in costs, the Group made an operating loss
of GBP9.9m, (2001, GBP3.9m profit) before exceptional items.  The
loss before tax and exceptionals was GBP 10.0m, (2001, GBP4.8m
profit).

An exceptional credit of GBP 10.0m, a non-cash release of a
corporation tax provision relating to a property reorganisation
in 1996/7, is explained in note 2 to the group profit statement.

Basic and diluted earnings per share were 0.0p (2001, 1.0p).  The
loss per share before exceptional items was 14.9p (2001, earnings
per share 7.1p).  As a result of the performance in the first
half, no interim dividend will be paid, (2001, 1.0p).

Working capital requirements have been held since the year end,
with excess stock from the Spring/Summer being successfully
traded out through the clearance stores.  Capital investment of
GBP 8.9m in the first half reflects the ongoing new store
programme, with five out of town stores opened in the first half,
and the development of the model
for the high street.  The Company has no long-term debt and
overall net debt of GBP 0.9m, (being cash at bank and in hand
of GBP 2.3m and an overdraft of GBP 3.2m).

UK Stores
Sales in UK Stores fell by 2.3% to GBP 195.1m (2001, GBP 199.8m),
2.1% down on a like-for-like basis.  Sales of Clothing,
especially babywear, under-performed through Spring/Summer, while
warm weather in September held back sales of the Autumn ranges
until the last three weeks of the half.  Hardware (home, travel
and toys) was flat for the first six months, but has performed
well since September against weak comparatives arising from the
disruption after the warehouse move in August 2001.

The average gross margin in the UK Stores fell as a result of the
weaker sales of Clothing compared to other, lower margin,
product.  In addition, discounting was required to dispose of
residual Spring/Summer clothing lines successfully, initially
through the main chain and, from August, through five clearance
stores converted for the purpose.  Profitability was also
affected by increased warehouse and  istribution costs.  As a
result, UK Stores made an operating loss of GBP 12.7m, (2001, GBP
2.1m profit).

Mothercare International
Mothercare International benefited from the focus on a small
number of core territories.  Most franchises were ahead
with the Middle East strongly up.  Overall, International sales
increased by 29.5% to GBP24.7m, (2001, GBP19.1m) against
weak comparatives, and the order book for next Spring is well
ahead.  Profitability improved strongly with operating
profits increasing to GBP2.8m, (2001, GBP1.9m).

Mothercare Direct
Mothercare Direct, the catalogue and website business, continued
to make good progress both in its own right, and in enhancing the
range of product that can be made available to customers in
store.  The business generated by Mothercare.com, while still
small, grew by 43% against strong comparatives.  Sales by
Mothercare Direct in total increased by 11.0% to GBP 8.1m (2001,
GBP 7.3m), and the business broke even against losses of GBP0.1m
in the comparable period.

DEVELOPMENT OF THE BUSINESS

Warehousing and distribution The primary focus in warehousing and
distribution over the past twelve months has been to restore
service levels and meet the stock volume requirements of the
business, particularly during the all-important peak periods.
This objective has been achieved, but at a very high cost of GBP
18.3m (2001, GBP 9.7m).  Various initiatives were jointly
undertaken with Tibbett and Britten to drive down costs in the
Daventry warehouse and to improve operational efficiency, but
these did not result in the expected level of improvement.  As a
consequence, warehouse and distribution costs have not reduced as
anticipated and continue to run at an unacceptable 8.0% of sales.
Options to address this issue are currently being intensively
examined.  In the meantime, the Daventry warehouse will continue
to be supported by the second warehouse at Coventry, operated by
Exel, which has been retained until March 2004.

Ranging and sourcing
Under the new Product Director appointed in May 2002, the
Autumn/Winter ranges were rationalised wherever possible to
reduce potential end of season markdown.  There is much work
still to be done but the number of options is being substantially
reduced as too many options lead to fragmented ranges,
operational complexity and excessive cost.  Action
already taken will see further progress in the Spring.

Design and technical input is being increased, and communication
with the customer based on the excellence of the product, through
the campaign 'because little things matter'.  The merchandise
sourcing strategy continues to develop with sourcing in more
depth, across fewer options, from a reduced supplier base to
unlock further potential in the intake margin across all product
categories.

STORE DEVELOPMENT

Out of town stores
Five stores were opened in the format proven in the blueprint
stores in Kew, Milton Keynes and Rotherham, which themselves
continue to show improved sales densities.  The new locations are
Bradford, Leicester, Manchester (Eccles), Newbury and Walsall,
while Bristol opened at the end of the previous financial year.
The search for high quality outlets in the right locations
remains a key priority but the current shortage of such sites
means that there may be no new openings in the second half.

High street stores
The first stage in the development of a high street format for
the future was unveiled in the refurbished Hammersmith store in
early October.  Whilst still early days, sales growth is
currently ahead of planned performance in both Clothing and
Hardware.  The store focus is on delivering specialist service,
improved facilities and access to a much wider range of
merchandise through in-store, easy-to-use ordering linked to the
home delivery service of Mothercare Direct.  The high street
model will be refined as we learn from the Hammersmith store's
trading performance over Christmas and the January sale period,
prior to remodelling further high street stores in the next
financial year.

MANAGEMENT CHANGES

Ben Gordon assumes the role of Chief Executive Officer on 2nd
December, 2002.  On that date Mark McMenemy will resume his role
as Finance Director having acted as Chief Executive since 15th
July, 2002.  As previously announced, Ian Peacock became Chairman
on 1st November, 2002.

CURRENT TRADING

Group sales in the five weeks ending 15th November have increased
by 6.7%.  All sales channels are showing improvement.

Within the total increase, UK like-for-like sales are ahead by
1.4%.  The business is well positioned for Christmas trading and
inventory is currently at satisfactory levels, although it is
early in the second half and peak trading is
still to come.  The form of trading is substantially different to
last year when the business was in distress with a heavy reliance
on promotion.  A greater proportion of the merchandise is now
being sold at full price and this is having a beneficial effect
on gross margins.

TRADING UPDATE

A trading update will be published in January, 2003 after the
Christmas and early January sales period.

Preliminary announcement of unaudited results

To see Group Profit Statement:
http://bankrupt.com/misc/Mothercare.htm

CONTACT:  Mothercare plc
          Mark McMenemy, Finance Director and acting Chief
          Executive
          Phone: 020 7404 5959


ROYAL & SUN: Likely to Announce Asset Disposal in Turnaround Plan
-----------------------------------------------------------------
Royal & Sun Alliance is expected to announce asset disposals in
its turnaround plan, in the hopes of raising no more than a
GBP300 million (US$470 million) profit on book value.

The insurer is understood to have plans of disposing its Asia-
Pacific business through an initial public offering, while hoping
to announce soon a buyer for RSIU, a surplus lines business in
the U.S.

According to the Financial Times, Roman Cizdyn, insurance analyst
at Commerbank, said the U.K.'s second-biggest general insurer is
pressured to sell RSIU after the group's fiancial credit ratings
was lowered to A- by the agencies AM Best and Standard & Poor's.

According to the analyst Royal & Sun has to unload the surplus
business while it can still attract buyers.

Royal & Sun is currently looking for a chief executive after Bob
Mendelsohn was ousted in September.  Two executives from motor
insurer Direct Line, were being considered for the rule.


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

       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 and Ma. Cristina Canson, 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 * * *