/raid1/www/Hosts/bankrupt/TCREUR_Public/021223.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, December 23, 2002, Vol. 3, No. 253


                              Headlines

* F I N L A N D *

SONERA CORPORATION: Posts Prospectus Supplement

* F R A N C E *

ALCATEL: Repositions Its Organization for Growth
ORANGE: Cancels 3G Project in Sweden, Plans to Return License
VIVENDI UNIVERSAL: Probe Turns to Former Officials for Evidence
VIVENDI UNIVERSAL: Sells Stake in Sithe Energies Inc.

* G E R M A N Y *

ALLIANZ AG: Unloading Losing Dresdner Bank Not Unlikely
DAIMLERCHRYSLER AG: EU Commission OKs Hyundai Motor Partnership
DYCKERHOFF AG: Moody's Cuts Ratings in Latest Review
KIRCHMEDIA GMBH: Premiere Finds Buyer, Permira to Get 70% Stake
KIRCHMEDIA GMBH: Reaches Agreement With Paramount, Columbia
QUAM: Ends Existing Business Relations With E-Plus

* I T A L Y *

FIAT SPA: Merger With GM Not a Good Idea Right Now, Say Analysts

* P O L A N D *

NETIA HOLDINGS: To Hold Extraordinary General Meeting January 15

* R U S S I A *

TNK INTERNATIONAL: Slavneft Bid Triggers Ratings Review

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

ABB LTD.: Honeywell Asbestos Pact Undermines Firm's Position
ABB LTD.: Wins $30 Million Contract in Canada
ABB LTD.: Investors Demand More Details on New Credit Facility

* U N I T E D   K I N G D O M *

BRITISH ENERGY: To Halt Plant Services for EU Compliance
CREDIT FIRST: Ordered to Pay GBP4 Million Fine for Japan Mess
IZODIA: Investigation May Cause Delay, Say Investors
LCC INTERNATIONAL: Appoints New Chief Financial Officer
ROYAL DOULTON: Plans to Dispose Part of Baddeley Green
ROYAL MAIL: Names Ex-soccer Czar to Chief Executive Post
ROYAL & SUNALLIANCE: Shareholders Doubt New Management
TXU EUROPE: EU Commission Gives Nod on Powergen Proposal
UK COAL: Names Replacement of Retiring Chairman


=============
F I N L A N D
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SONERA CORPORATION: Posts Prospectus Supplement
-----------------------------------------------
Announcement of the prospectus supplement in respect of
TeliaSonera's mandatory redemption offer to holders of shares,
ADSs and warrants in Sonera - the offer commences on December 30,
2002 TeliaSonera Thursday announces that the prospectus
supplement with respect to TeliaSonera's mandatory redemption
offer for the outstanding shares, including shares represented by
American Depository Shares ("ADSs"), and warrants in Sonera, has
been approved by the Finnish Financial Supervision Authority. An
amendment to TeliaSonera's registration statement on Form F-4
containing the mandatory redemption offer prospectus supplement
has also been filed with the US Securities and Exchange
Commission (SEC) and an application to have the prospectus
supplement recognized by the Stockholm Exchange has been made.

The prospectus supplement will be distributed to all current
directly registered holders of Sonera shares, ADSs and warrants
by mail, together with instructions on the procedures to be
followed in order to accept the offer. The prospectus supplement
is also, as from December 20, 2002 available on TeliaSonera's and
Sonera's respective websites, www.telia.com/investorrelations and
www.sonera.com(investors).

The mandatory redemption offer period commences on December 30,
2002 and expires on January 31, 2003. The preliminary results of
the mandatory redemption offer are expected to be announced on or
about February 6, 2003.

Under the terms of the mandatory redemption offer:

For each Sonera share you tender, you may elect to receive
1.51440 TeliaSonera shares or, alternatively, EUR 5.00 in cash.
For each Sonera ADS you tender, you may elect to receive 0.30288
TeliaSonera ADSs or, alternatively, the U.S. dollar equivalent of
EUR 5.00 in cash (less applicable fees and expenses). Each Sonera
ADS represents one Sonera share and each TeliaSonera ADS
represents five TeliaSonera shares.

For each Sonera warrant of a certain series issued pursuant to
Sonera's 1999 and 2000 stock option programs you tender, you may
elect to receive one TeliaSonera warrant of a corresponding
series or, alternatively, between EUR 0.02 and EUR 1.66 in cash
depending on the series of warrants you tender. Each TeliaSonera
warrant entitles the holder to subscribe for 1.5 TeliaSonera
shares.

The amount of TeliaSonera shares, TeliaSonera ADSs and
TeliaSonera warrants offered in the mandatory redemption offer in
exchange for each Sonera share, Sonera ADS and Sonera warrant,
respectively, is the same as that offered in the recently
completed exchange offer. The cash price of EUR 5.00 per share
being offered to holders of Sonera shares, including Sonera
shares represented by Sonera ADSs, is based on the volume-
weighted average trading price of Sonera shares on the Helsinki
Exchanges during the 12-month ending on November 15, 2002.

If you elect to receive cash consideration in the mandatory
redemption offer for your tendered Sonera securities:

TeliaSonera will pay for all Sonera securities that have been
validly tendered in the mandatory redemption offer for cash as
promptly as practicable after the receipt of acceptance relating
to such securities.

The payment of the cash consideration will be made:

- in the case of a tendering Sonera shareholder or Sonera
warrantholder, into the bank account related to the book-entry
account of such tendering Sonera securityholder on or about five
business days after the execution of the sale of the tendered
Sonera securities to TeliaSonera on or outside the Helsinki
Exchanges. Such sale will be executed within five business days
after the receipt of acceptance relating to such Sonera
securities; and in the case of a tendering Sonera ADS holder, (a)
by book-entry transfer of the applicable amount in U.S. dollars
into the DTC account of the DTC participant which tendered the
Sonera ADSs on behalf of such holder in the mandatory redemption
offer by means of the DTC bookentry confirmation system or (b) by
means of a check in U.S. dollars to the order of the tendering
Sonera ADS holder as provided in the corresponding letter of
transmittal, in either case as promptly as practicable the
execution of the sale of the Sonera shares underlying the Sonera
ADSs to TeliaSonera on or outside the Helsinki Exchanges.
-
If you elect to receive TeliaSonera securities in the mandatory
redemption offer in exchange for your tendered Sonera securities:


TeliaSonera will accept for exchange and will exchange all Sonera
securities that have been validly tendered and not withdrawn
pursuant to the terms of the mandatory redemption offer at the
earliest practicable time following the expiration date of the
mandatory redemption offer.

Such TeliaSonera securities will be delivered to you or, in the
case of tendered Sonera ADSs, to an account for the benefit of
the depositary for TeliaSonera ADSs, at the earliest practicable
date after the expiration of the mandatory redemption offer
period which, in the case of Sonera shares or Sonera warrants,
shall be on or about 11 business days following the expiration
date of the mandatory redemption offer.

Assuming that there is no extension of the mandatory redemption
offer period the TeliaSonera shares and TeliaSonera warrants are
expected to be entered into the relevant book-entry accounts on
or about February 17, 2003.

Sonera shareholders should also be aware that TeliaSonera has
started a separate compulsory acquisition proceeding under
Finnish law under which the remaining holders of Sonera shares
will be required to surrender their remaining Sonera shares to
TeliaSonera for redemption at a ''fair price.'' To the extent
shareholders do not participate in the mandatory redemption as
described in the prospectus supplement, their Sonera shares will
be redeemed in connection with the compulsory acquisition
proceeding. TeliaSonera has offered to redeem the remaining
Sonera shares in the compulsory acquisition proceeding for EUR
5.00 per share. As described in the prospectus supplement,
however, the ultimate redemption price in the compulsory
acquisition proceeding is subject to arbitration proceedings and
legal appeals pursuant to applicable Finnish law. TeliaSonera
will provide Sonera shareholders with additional information
regarding the compulsory acquisition proceedings as required
under Finnish and other applicable law.


Cautionary Disclaimer/Legend

On December 9, 2002, Telia announced the completion of its
exchange offer for all of the outstanding shares, including
shares in the form of American depositary shares, or ADSs, and
certain warrants of Sonera. Effective December 9, 2002, Telia
changed its name to TeliaSonera. As a result of the completion of
the exchange offer, TeliaSonera is, pursuant to Finnish law,
making a mandatory redemption offer to acquire all of the
outstanding shares, including shares in the form of ADSs, and
warrants of Sonera were not tendered in the exchange offer. The
contents of this document are neither an offer to purchase nor a
solicitation of an offer to sell shares of TeliaSonera. Any offer
in the United States will only be made through a prospectus, as
amended or supplemented, which is part of a registration
statement on Form F-4 which Telia originally filed with the U.S.
Securities and Exchange Commission (the "SEC") on October 1,
2002. Sonera shareholders who are U.S. persons or are located in
the United States are urged to carefully review the registration
statement on Form F-4, as it may be amended from time to time,
the prospectus, including any amendments or supplements thereto,
included therein and other documents relating to the offer that
TeliaSonera has filed or will file with the SEC because these
documents contain important information relating to the offer.
You are also urged to read the related
solicitation/recommendation statement on Schedule 14D-9 that was
filed by Sonera with the SEC on October 1, 2002 regarding the
offer. You may obtain a free copy of these documents at the SEC's
web site at www.sec.gov. You may also inspect and copy the
registration statement on Form F-4, and any amendment thererto,
as well as any documents incorporated by reference therein, and
the Schedule 14D-9 at the public reference room maintained by the
SEC at 450 Fifth Street, NW, Washington, D.C. 20549. Please call
the SEC at 1-800-SEC-0330 for further information about the
public reference room. These documents may also be obtained free
of charge by contacting TeliaSonera AB, Investor Relations, SE-
123 86 Farsta, Sweden. Attention: External Communications or
Investor Relations (tel: +46 8 7137143, or Sonera Corporation,
Teollisuuskatu 15, P.O. Box 106, FIN-00051 SONERA, Finland.
Attention: Investor Relations (tel: +358 20401).

YOU SHOULD READ THE PROSPECTUS, AND ANY AMENDMENTS OR SUPPLEMENTS
THERETO, AND THE SCHEDULE 14D-9 CAREFULLY BEFORE MAKING A
DECISION CONCERNING THE OFFER.

CONTACT: SONERA CORPORATION
         Teollisuuskatu 15
         P.O. Box 106 FIN-00051
         SONERA, Finland
         Homepage: www.sonera.com
         Contacts: Jyrki Karasvirta
         Vice President,
         Acting Head of Corporate Communications


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F R A N C E
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ALCATEL: Repositions Its Organization for Growth
------------------------------------------------
From Networks Equipment to Communications Solutions

Alcatel announced December 18 to its employees a new organization
focused on future growth prospects.

As of January 1st, 2003, Alcatel reorganizes along three market
segments covering the entire range of voice and data
communication solutions:

- Fixed communications, where Alcatel will capitalize on its
position as the world leader in broadband.
- Mobile communications, where Alcatel will leverage its growing
momentum in 2 and 2,5 G markets into the 3 G space.
- Private communications, which will address markets other than
telecommunication carriers, such as enterprise, space and large
institutions.

In all these three market segments, Alcatel will expand in the
field of services and applications to support the strong drive of
its customers towards cutting costs and growing revenues.

Each segment will be addressed by a dedicated business group
which will be organized to enhance its capabilities in:

- developing end-to-end network solutions optimizing and
guaranteeing performance and quality of service
- offering to its customers a range of services to reduce
operating expenses, based on long term partnerships,
- designing communication solutions to provide new revenue
streams with a broad range of value added applications.

"Restructuring is well underway". said Serge Tchuruk. "We are
executing. But, looking forward, we are already focusing on
future growth prospects. I am convinced that this is the right
organization to do so".

"The implementation of this new organization is also an
opportunity to better ensure a greater efficiency in the
execution of the undergoing restructuring plan. It will reduce
costs while positioning the group as a solutions-oriented
company, fully market-driven," added Serge Tchuruk.

Based on a proforma reflecting current sales trends, Alcatel's
revenue would be roughly 40% in fixed and around 30% in both
mobile and private communications.


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.


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


ORANGE: Cancels 3G Project in Sweden, Plans to Return License
-------------------------------------------------------------
Even the assurances of the Swedish telecommunications regulators
to accommodate any delay in 3G rollouts was not enough for
Orange, which announced last week that it will pull the plug on
its 3G ambitions in the country.

The Financial Times said the French-based mobile phone operator
would make redundant the 234 people it employs in Sweden by mid-
January.  The decision came just a day after Ulrika Messing,
Sweden's IT minister, indicated she was prepared to accept some
delay in the roll-out of 3G in Sweden.

The paper says difficult market conditions and the pressures of
owning third generation mobile phone licenses in the country are
the main reasons for Orange's pullout.  The French company was
one of four awarded with the license by the Swedish government in
2000.  Under the original terms of the license, the grantees
committed to providing 99 percent coverage in the country by the
end of 2003.

The timetable has looked increasingly unrealistic, not least
because the operators have found it difficult to get planning
permission to erect masts, the paper said.  Orange had over the
last four months been pushing to be granted more time for its
rollout but was originally rebuffed by the regulator.

"In practice Orange now has two options - to hand back its
Swedish license to the regulator who issued it or to sell its
Swedish company including the license. The company would not on
Thursday comment on its plans for the license," the Financial
Times said.

The paper says Orange would likely face a problem extricating
itself from the company it set up with Hutchison 3G and Vodafone,
to jointly build their third generation networks in Sweden.


VIVENDI UNIVERSAL: Probe Turns to Former Officials for Evidence
---------------------------------------------------------------
Following the raid of its headquarters in Paris, authorities are
now reportedly directing their search for evidence of fraud at
officials formerly connected to Vivendi Universal, New York Post
late last week.

Citing Dow Jones, the newspaper said former Vivendi board member,
now honorary chairman of Societe Generale, Marc Vienot, was the
latest target of the raid.  The paper said police had recently
raided his office and two houses in search of Vivendi documents
to support allegations of financial corruption.

Mr. Vienot believes as many as 10 other officials with
connections to Vivendi have had their homes or offices searched.
Vivendi has confirmed the raids on its headquarters. It would not
confirm that other board members had been targeted, the report
said.

The investigation by the French prosecutors is just one piece of
the financial and legal mess left behind by former CEO Jean-Marie
Messier, who was ousted in July.  Vivendi is also under
investigation by the COB, the French equivalent of the SEC, as
well as the SEC's Miami office and the U.S. Attorney's Office for
the Southern District of New York. It also faces 16 separate
shareholder lawsuits in the United States - 12 in New York and
four in California, the paper said.

Last week, the company announced plans to sue French minority
shareholder association, APPAC, for allegedly spreading lies
about the beleaguered company.

"The aim of the action is to halt the spread of false information
through the destabilization campaign being conducted by APPAC,"
Vivendi said in a statement.

According to the report, APPAC filed a complaint in July alleging
that Vivendi had falsified financial documents and misled
investors about the health of the company, which nearly went
bankrupt last summer.  Under French law, such organizations bring
claims to a criminal court, and APPAC's complaint has led to a
wide-ranging investigation by French authorities.


VIVENDI UNIVERSAL: Sells Stake in Sithe Energies Inc.
-----------------------------------------------------
Vivendi Universal announced Friday that the company has sold its
34% stake in Sithe Energies, a U.S. power generation company to
Apollo Energy LLC.

Payment in cash was made to Vivendi Universal for an amount (net
proceeds of the transaction) of US$323 million .

As part of the transaction, Vivendi Universal retains ownership
rights to certain minor assets, which are currently the subject
of a separate disposal process.

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



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G E R M A N Y
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ALLIANZ AG: Unloading Losing Dresdner Bank Not Unlikely
-------------------------------------------------------
Selling loss-making German bank Dresdner Kleinwort Wasserstein
(DrKW) is currently not in the agenda of insurance giant Allianz
AG, but the possibility is not entirely farfetched.

Citing Allianz insiders, AFX News said last week the sale of the
bank to the planned merged entity of Credit Agricole and Credit
Lyonnais is possible in the future.  Dresdner made a net loss of
EUR1.239 billion in the first nine months this year.  The bank
has contributed to the woes of Allianz, whose chief surprised the
market last week by announcing his resignation earlier than
expected.

The resignation caps the disastrous year for the insurance giant,
which reported net losses of EUR2.5 billion in the third quarter
-- EUR972 million of which was caused by troubled Dresdner Bank.  
Allianz acquired the bank for EUR24 billion last year.  


DAIMLERCHRYSLER AG: EU Commission OKs Hyundai Motor Partnership
---------------------------------------------------------------
The joint venture of DaimlerChrysler AG and Hyundai Motor Co.
received clearance from the EU Commission last week after the
latter did not receive objections from third parties, the
Associated Press said.

The two companies had availed of the Commission's simplified
antitrust procedure, which clears mergers or acquisitions after
one month if no objections are raised by third parties.  
DaimlerChrysler aims to win more business in Asia through the 50-
50 partnership.

DaimlerChrysler already owns 10 percent of Hyundai Motor,
according to the Associated Press.  Under the plan,
DaimlerChrysler is exercising a call option for Hyundai Motors'
commercial-vehicles arm, paying EUR400 million (US$410.6 million)
in a stock deal for a 50 percent stake.  Together, the companies
are building an engine plant and have created a 50-50 joint
venture called Daimler Hyundai Truck Corp.  The plant will be
fully operational in 2005, the report said.

The German-American automaker is still restructuring, but its
financial footing is relatively stable these days.  Early this
year, the company projected operating profit to exceed thrice the
level of 2001 (EUR1.35 billion).  


DYCKERHOFF AG: Moody's Cuts Ratings in Latest Review
----------------------------------------------------
A weakened financial profile and reduced financial flexibility
were the reasons cited by Moody's last week as it concluded a
review on Dyckerhoff AG's ratings with a downgrade and a negative
outlook.

Approximately US$800 million of securities were affected by the
latest rating action.  Dyckerhoff AG's senior long-term debt and
issuer ratings were lowered to Ba1 from Baa3 and its short-term
debt rating to Not Prime from Prime-3. The senior debt issued by
Lonestar Inc., guaranteed by Dyckerhoff AG, was also downgraded
to Ba1.  Moody's also assigned a senior implied rating of Ba1 to
Dyckerhoff AG.

Aside from the depressed cash flow of the group -- largely due to
its exposure to the troubled German market -- Moody's also took
into account the recent announcement that Buzzi Unicem and the
Dyckerhoff family have entered into an agreement that
significantly modifies Dyckerhoff AG's shareholder structure and
adds an element of strength to the company's bondholders.

"The negative rating outlook reflects the challenges presented by
the complexities of the market disruptions and the still
developing nature of the Buzzi/Dyckerhoff integration," Moody's
said.

"Firstly, the current over-capacity for cement in Dyckerhoff's
domestic market requires rigorous capacity adjustments to
preserve margins and ensure competitiveness of participants in
the mid- to long-term.

"Secondly, the cartel office ruling may have a significant
bearing on volumes and prices going forward, potentially
extending the ongoing pressure on prices.

"Finally, the nature of the Buzzi/Dyckerhoff alignment is still
dynamic: while it seems compelling on economic grounds, the
concept needs to be perfected legally for it to effectively
support Dyckerhoff bondholders. Until the two units are fully
integrated operationally and financially, uncertainty in this
context remains," Moody's said.

The Dyckerhoff Group has a cement production capacity of 25
million tons, with operations in eight countries. For 2002,
turnover is expected to be around EUR1.5 billion.

The Buzzi Unicem Group is the second largest cement producer in
Italy, with substantial operations also in the USA and Mexico, a
total capacity of 15 million tons and an estimated 2002 turnover
in the range of EUR1.5 billion.

For more information, contact:

Donald Burri
Senior Vice President
European Corporates
Moody's Investors Service (London)

Heiko Neumann
Vice President - Senior Analyst
European Corporates
Moody's Investors Service (Frankfurt)


KIRCHMEDIA GMBH: Premiere Finds Buyer, Permira to Get 70% Stake
---------------------------------------------------------------
Private equity house Permira is expected to take majority control
of bankrupt pay-TV operator Premiere in the first quarter next
year, the Financial Times said late last week.

According to the paper, Permira and creditors of Premiere are now
finalizing a deal that will give the former about 70% of
Premiere's stakes.  The banks will most likely end up with 20
percent, partly through the conversion of some of EUR750 million
(US$770 million) in unpaid loans.  The banks include Bayerische
Landesbank, which is half-owned by the Bavarian state, Bawag, its
Austrian arm, and HypoVereinsbank, Germany's second largest.

Chief executive Georg Kofler confirmed the deal last week, but
did not disclose any detail other than the plan to wrap up
everything within the first quarter next year.  Mr. Kofler and
two fellow managers are set to get about 10% of the shares, says
the Financial Times.

"We are delighted by this breakthrough because it means we can
now concentrate 100 percent on running Premiere," Mr. Kofler told
the paper.

Premiere filed for insolvency in May, one month after parent
KirchMedia did the same.  The collapse of KirchMedia hastened the
collapse of the media empire of Leo Kirch.  Mr. Kofler has since
taken the company through a radical restructuring with a view to
floating on the stock exchange in a few years.

Mr. Kofler said the deal would inject more than enough cash to
cover the EUR150 million to EUR200 million it needs to reach
breakeven by the first quarter of 2004.


KIRCHMEDIA GMBH: Reaches Agreement With Paramount, Columbia
-----------------------------------------------------------
The road to recovery for Premiere is becoming smoother by the
day.  After striking a deal with private equity house Permira,
the company next signed contracts with Hollywood film studios
Paramount and Columbia.

According to AFX News, Paramount agreed to grant Premiere access
to cinema and TV films for five years, while Columbia sold a
package of films to the German pay TV channel.  Premiere has
already renegotiated contracts with the film studios Fox,
Dreamworks, Universal, Metro-Goldwyn-Mayer and Warner, the report
said.  Premiere said it is confident it will be able to come to a
new agreement with Disney, too.

Permira is expected to gain control of 70% of the restructuring
pay-TV operator by first quarter next year.


QUAM: Ends Existing Business Relations With E-Plus
--------------------------------------------------
E-Plus, subsidiary of Royal KPN N.V., has reached an amicable
agreement with Quam.

Quam will pay EUR150 million to E-Plus before the end of December
2002 as compensation for the termination of all existing business
relations between the two companies in Germany.

E-Plus has also the right to take over individual UMTS sites of
Quam if these fit in the UMTS network rollout plan of E-Plus.


=========
I T A L Y
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FIAT SPA: Merger With GM Not a Good Idea Right Now, Say Analysts
----------------------------------------------------------------
Industry observers believe a General Motor-Fiat Auto merger at
this point will spell disaster for both companies.  

Citing Automotive News, Reuters said GM Europe could save
precious cash if it avoids a merger with Fiat Auto, which could
cost as much as US$1 billion.  At present, the GM Europe faces
mounting losses, falling market share and sluggish sales in its
core markets of Germany and Britain.  Merging with the money-
losing Fiat Auto would only add to its problems, analysts told
Automotive News.

"We are not convinced that two sick players make a healthy
company, and both companies are competing in the same segments,"
an analyst at a major German bank told Automotive News.

GM bought a 20 percent stake in Fiat Auto for US$2.2 billion in
2000 hoping joint ventures in developing engines and in
purchasing supplies and equipment would save the companies a
combined US$2 billion a year by 2005, Reuters says.   The
performance at both companies, however, has deteriorated over the
past two years.  In October, GM wrote down its Fiat Auto stake by
nearly US$2.2 billion to US$220 million.

Reuters says GM's investment included an option giving Fiat the
right to sell the remaining 80 percent stake in Fiat Auto to GM
beginning 2004.  But a reorganization at Fiat Auto planned by
parent company Fiat SpA would likely cancel the option, Reuters
says.


===========
P O L A N D
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NETIA HOLDINGS: To Hold Extraordinary General Meeting January 15
----------------------------------------------------------------
Netia Holdings S.A. Poland's largest alternative provider of
fixed-line telecommunications services (in terms of value of
generated revenues), announced Thursday that it will hold an
Extraordinary General Meeting of Shareholders on January 15, 2003
in Warsaw.

The proposed resolutions to be considered at this meeting
concern, among other things, changes to Netia's Statutes, changes
in the composition of Netia's supervisory board and establishment
of certain security interests over certain assets of the Netia
group companies in order to secure the obligations under the EUR
50 million Senior Secured Notes due 2008 to be issued by Netia
Holdings B.V. in connection with the ongoing restructuring of
Netia.

Some of the information contained in this news release contains
forward-looking statements. Readers are cautioned that any such
forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and that actual
results may differ materially from those in the forward-looking
statements as a result of various factors. For a more detailed
description of these risks and factors, please see Netia's
filings with the Securities and Exchange Commission, including
its Annual Report on Form 20-F filed with the Commission on March
28, 2002, its Current Report on Form 6-K filed with the
Commission on April 3, 2002, its Current Reports on Forms 6-K
filed with the Commission on May 6, 2002, its Current Report on
Form 6-K filed with the Commission on May 7, 2002, its Current
Report on Form 6-K filed with the Commission on May 20, 2002, its
Current Report on Form 6-K filed with the Commission on May 24,
2002, its Current Report on Form 6-K filed with the Commission on
June 28, 2002, its Current Report on Form 6-K filed with the
Commission on July 2, 2002, its Current Report on Form 6-K filed
with the Commission on July 31, 2002, and its Current Report on
Form 6-K filed with the Commission on August 2, 2002, its Current
Reports on Form 6-K filed with the Commission on August 6, 2002,
its Current Report on Form 6-K filed with the Commission on
August 9, 2002, its Current Report on Form 6-K filed with the
Commission on August 15, 2002 its Current Report on Form 6-K
filed with the Commission on August 16, 2002, its Current Report
on Form 6-K filed with the Commission on August 28, 2002, its
Current Report on Form 6-K filed with the Commission on August
30, 2002, its Current Report on Form 6-K filed with the
Commission on September 16, 2002, its Current Report on Form 6-K
filed with the Commission on September 20, 2002, its Current
Report on Form 6-K filed with the Commission on September 24,
2002, its Current Report on Form 6-K filed with the Commission on
October 1, 2002, its Current Report on Form 6-K filed with the
Commission on October 15, 2002, its Current Report on Form 6-K
filed with the Commission on October 17, 2002, its Current Report
on Form 6-K filed with the Commission on October 22, 2002, its
Current Report on Form 6-K filed with the Commission on October
25, 2002, its Current Report on Form 6-K filed with the
Commission on November 5, 200, its Current Report on Form 6-K
filed with the Commission on November 5, 2002 Current Report on
Form 6-K filed with the Commission on November 6, 2002, Current
Report on Form 6-K filed with the Commission on November 18, 2002
, Current Report on Form 6-K filed with the Commission on
November 21, 2002, Current Reports on Form 6-K filed with the
Commission on December 3, 2002 and Current Reports on Form 6-K
filed with the Commission on December 10, 2002. Netia undertakes
no obligation to publicly update or revise any forward-looking
statements.

CONTACT: NETIA
         Anna Kuchnio (IR)
         Phone: +48-22-330-2061


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


TNK INTERNATIONAL: Slavneft Bid Triggers Ratings Review
-------------------------------------------------------
Moody's Investors Service announced last week that it had placed
under review the ratings assigned to TNK International, Tyumen
Oil (TNK) and Siberian Oil Company (Sibneft) after the group made
the winning bid for the 75% stake of Slavneft.

Slavneft is the ninth-largest oil company in Russia, according to
Moody's.  Through their 50:50 trust, Invest Oil, TNK
International and Sibneft successfully acquired the stake for a
price of US$1.86 billion to be disbursed in February.

"While the companies jointly have the resources to undertake an
acquisition of this magnitude, it will considerably leverage the
balance sheets of both TNK International and Sibneft. In addition
Slavneft's own existing debt of around US$600 million and any
future debt will be senior to the two issuers' rated debt,"
Moody's noted.

The rating agency says its review will assess "the impact of the
additional debt on TNK International and Sibneft, how quickly the
companies may recover their financial stability under different
oil price scenarios, the potential positive impact of the
synergies and efficiency measures which the companies can drive
through Slavneft's operations, and the quality of the cash flow
streams to be derived from the acquisition."

"There are a number of uncertainties including the exact terms of
the acquisition between the two parties and the acquirors' medium
term strategies in respect to the new joint venture. The review
will also need to encompass Slavneft's investment needs,
financial policies and dividend plan," Moody's said in a press
statement.

Under review are the Ba2 senior implied rating of TNK
International, the Ba2 local currency issuer ratings of Tyumen
Oil (TNK) and Siberian Oil Company (Sibneft), the Ba3 foreign
currency rating of TNK and Ba3 loan participation note ratings of
both Sibneft and TNK (guaranteed by TNK International).

Registered in the British Virgin Islands, TNK International Ltd.
is the holding company of the TNK group. Its principal subsidiary
is JSC Tyumen Oil Company (TNK), headquartered in Moscow.  OAO
Siberian Oil Company (Sibneft) is also headquartered in Moscow.  
TNK and Sibneft are two of Russia's leading vertically integrated
oil companies, TNK being the fourth largest and Sibneft the
fifth-largest on the basis of oil and gas production.

For more information, contact:

Richard Stephan
Managing Director
Corporate Finance
Moody's Investors Service (London)

Jeremy Hawes
Senior Vice President
Corporate Finance
Moody's Investors Service (London)


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


ABB LTD.: Honeywell Asbestos Pact Undermines Firm's Position
------------------------------------------------------------
ABB Ltd's hope of limiting its asbestos liability to US$1.1
billion was seriously put in jeopardy late last week after
Honeywell announced a settlement worth US$2.9 billion.

Honeywell is offering asbestos victims US$900 million on top of
US$2 billion in insurance cover to settle 200,000 outstanding
claims relating to its Narco cement subsidiary, the Financial
Times says.  Another company, US oil services group Halliburton,
had previously agreed to a settlement worth US$2.8 billion in
cash plus US$1.3 billion in shares and loan notes for about
300,000 claims.

The report says ABB, which recently began negotiations with its
lawyers, estimates it will be able to reach a similar agreement
for 111,000 claims that will limit its liability to US$300
million plus US$812 million in assets held by its US subsidiary.

"Although direct comparisons are difficult, its offer of about
US$10,000 per claim is significantly lower than other recent
settlements even though its subsidiary, Combustion Engineering,
was more directly involved in asbestos-intensive products," the
Financial Times said.

The Swiss-Swedish engineering group, however, insists it can
resist pressure to increase its offer by threatening to put its
US subsidiary into unplanned bankruptcy, which would force
lawyers into a lengthy fight.

JP Morgan analyst Swantje Conrad partly agrees, but nevertheless
doubts the position is sufficient.  In an interview with the
Financial Times, he said: "ABB may be in a better position as a
foreign company - in the case of a Chapter 11 without a trust
solution, the claimants have to try to get the money from the
Swiss parent company. On the other hand, ABB's exposure to
asbestos through Combustion Engineering is much more direct than
Halliburton's."

Halliburton started the negotiations in February and it took nine
months to come close to a settlement.  Judging from this
experience, the paper says ABB's target of less than six months
appears ambitious.


ABB LTD.: Wins $30 Million Contract in Canada
---------------------------------------------
Ailing Swiss-Swedish engineering group ABB Ltd. announced last
week that it had won an order for more than US$30 million from
Aluminerie Alouette, Canada.  The company was contracted to
design, supply, install and commission the electrical power
supply system of an aluminium smelter in Quebec.

Construction work on the site is due to begin early next year and
production is scheduled to start in 2005, the company told AFX
News.  Aluminerie Alouette is expanding is existing aluminium
plant, located near the estuary of the St. Lawrence River, and
expects annual output to rise to 550,000 tonnes from 243,000, ABB
said.


ABB LTD.: Investors Demand More Details on New Credit Facility
--------------------------------------------------------------
Bondholders are griping about the lack of information related to
the recent banking facility negotiated by ABB Ltd. that is
reportedly secured on a range of assets.

Bear Stearns analyst Jens Jantzen warned that the company would
likely face rough sailing the next time it returns to the bond
market to refinance debts if details of the new credit line are
not disclosed fully.  The Financial Times reports that many
investors consider it insufficient the current information about
the covenants included in the loan.

"Bondholders will have no possibility to anticipate covenant
breaches and take comfort that liquidity is actually assured,"
said Mr. Jantzen in an interview with the Financial Times.

"We have seldom had so few details and so many vague statements
from a company in ABB's financial position," he said.  Mr Jantzen
said it would be good for ABB to organize a meeting with
bondholders.

The bank loan has already led to a rating downgrade, with
Standard & Poor's cutting ABB's long-term debt rating to junk.
The downgrade to BB+ reflects the fact that the new loan is
secured on some of ABB's assets, giving banks a claim to the
company's assets ahead of bondholders.

In October, Moody's Investors Service cut ABB's debt rating to
junk and has said it might also lower the rating further.


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


BRITISH ENERGY: To Halt Plant Services for EU Compliance
--------------------------------------------------------
Greenpeace lawyer Kate Harrison told the Wall Street Journal
Thursday that British Energy must shut down some of its nuclear
power plants in accordance to European laws on the GBP650 million
U.K. government loan to the company.

According to the report by the Wall Street Journal, Greenpeace
and renewable power company Ecotricity will file a case in a
European court against a European Commission approval of the loan
if it does not include the plant closure condition.

The lawyer said the loan violates European competition law if
there is no adequate compensation to companies made less
competitive by the bailout, which would be in the form of closing
some reactors in the case of British Energy.

Harrison said the rules clearly states that "where there is
overcapacity, then state aid should not be approved without
compensatory measures."  She added that the commission's decision
was politically motivated, and was not in line with a liberalized
market, the Journal said.

Earlier, the Commission was reported to have approved the loan,
though it has yet to publish the details of its provisions within
days.

Greenpeace said it withdrew a suit against the British government
in the U.K. courts so it could mount an offensive in the European
Court of Justice.

British Energy asked for a government bailout in September to
keep it from going into administration. The nuclear powered
electricity generator is only one of many power companies that
have suffered from a 40% drop in U.K. wholesale power prices
since 1998.


CREDIT FIRST: Ordered to Pay GBP4 Million Fine for Japan Mess
-------------------------------------------------------------
Just a year after it was ordered to pay a hefty 40 million yen
fine in Japan for misleading local regulators, Credit Suisse
First Boston is facing yet another penalty, this time in Great
Britain.

The U.K. Financial Services Authority ordered last week the
investment-banking arm of Credit Suisse to pay GBP4 million in
fines for attempting to mislead Japanese financial regulators and
tax authorities between 1995 and 1998.  The fine is considered
the largest ever imposed by the UK regulator, says the Financial
Times.

In March last year, Japan's Financial Services Agency also fined
CSFB for related events uncovered in 1999 and subsequently
revoked the license of CSFB's derivatives arm, Credit Suisse
Financial Products (CSFP), which is now called Credit Suisse
First Boston International.  

According to the Financial Times, the UK FSA probe discovered
that Credit Suisse Financial Products had removed documents from
its offices, deleted trading information, deliberately faxed
relevant documents to another room where it believed regulators
would not find them and sent faxes in the name of another company
in order to avoid scrutiny.
     
A spokesman for the UK FSA told the paper the bank appeared to be
seeking to convince the banking side of the Japanese regulator
that it was not conducting banking business, while trying to
convince the securities side it was not doing securities
business.
   
"CSFP feared that the Japanese financial regulator might conclude
it was doing business without the necessary Japanese license.  
CSFP also thought that the tax authority might decide that this
business should be taxed in Japan," the UK FSA said.

The UK regulator became involved in the case because Credit
Suisse First Boston International is authorized in the UK, the
paper said.  The three-year probe has been one of the biggest the
UK FSA has ever undertaken involving a 12-strong team who
reviewed 100,000 documents and carried out 47 interviews in
different countries.

A spokesman for the Japan FSA told the Financial Times last week
that it was unlikely it would consider imposing additional fines
on CSFB, even though the UK investigation unveiled separate
matters that occurred in the three years leading up to the events
of 1999.

CSFB officials could not be reached for comments.  The company
has yet to make an official pronouncement as to whether or not it
will contest the fine.


IZODIA: Investigation May Cause Delay, Say Investors
----------------------------------------------------
Izodia investors expressed concern over the possible delay in
liquidation and distribution of its GBP33m cash that the Serious
Fraud Office's investigation could cause.

Financial Times reported that SFO raided Orb's offices in St
Helier and London, Izodia's largest shareholder, following
allegations of unlawful appropriation of funds belonging to
Izodia and possible related offences.

Effectively, Izodia adviser Navigator is seeking permission from
the London Stock Exchange to send a circular inviting
shareholders to vote on appointing a liquidator at an
extraordinary meeting on January 17. Izodia shares remain
suspended, the report says.

It is noted that Izodia's stockbroker, Old Mutual Securities, and
lawyer Fladgate Fielder, which has acted both for Izodia and Orb,
were asked by the SFO to provide information. Both said they were
co-operating fully with the SFO's inquiry.

Meanwhile, Camerlin, a Malaysian investment company, said talks
to sell its 22 per cent stake in BIL International to a party
believed to be Orb had ended.  BIL International is the largest
shareholder in Thistle Hotels.

Orb, which acquired 37 of Thistle's 58 hotels in March, said in
October it was considering a bid. On Monday, the Takeover Panel
gave Orb until January 15 to do so.

Further reports say that in August, former director of Izodia Mr.
Ross Peters raised his concerns in an E-mail to Sir Anthony
Jolliffe, Izodia's then chairman, about the control of its cash.
He said an Izodia employee had told him that "the treasury
function had been assumed by Orb" and that Jarlath Vahey, an Orb
employee who later replaced Mr. Peters as one of Izodia's
directors, had transferred money to a Jersey account in Izodia's
name.

Shortly after sounding the alarm, however, Ross Peters and
another director were pressed to resign by a representative of
Orb, described by Mr. Peters as an "orchestrated" change of board
control.

Mr Peters added in the letter: "I believe control of the
company's cash should not be left with Orb/Jar Vahey and should
be placed under the direct control of the independent non-execs."

Mr Vahey opted to talk to the press, according to the Financial
Times. Gerald Smith, an Orb director, said this week that part of
Izodia's cash had been moved to Jersey for "tax optimisation"
purposes. Mr Peters could not be reached for comment.

In another E-mail sent by Mr Peters on August 23, the day his
resignation and that of Patricia Chapman-Pincher was announced,
he said Mr Smith told them he no longer wished them to remain on
Izodia's board, which left them in an "impossible position".


LCC INTERNATIONAL: Appoints New Chief Financial Officer
-------------------------------------------------------
LCC International, Inc., a global leader in wireless voice and
data turn-key technical consulting services, announced Thursday
that Graham Perkins will join the Company as its Chief Financial
Officer, effective January 2, 2003.

In his role as Senior Vice President, Chief Financial Officer and
Treasurer, Mr. Perkins will assume responsibility for LCC's
global financial management as well as operational support for
the Company's wireless design, deployment, operations and
maintenance service offerings.

Mr. Perkins brings over 30 years of international financial and
general management experience from positions held in Europe,
Africa, The Middle East, Asia and the United States. In addition,
Mr. Perkins has spent over 17 of his 30-year career in the
telecommunications sector working for service providers,
equipment manufacturers and systems integrators.

C. Thomas Faulders, III, Chairman and CEO of LCC said, "Graham is
an excellent addition to the LCC team. Our criteria for a Chief
Financial Officer was someone with a solid background in telecom,
strong finance and accounting credentials and an individual who
has first hand experience in global business practices. Graham's
career nicely complements our requirements for our finance lead.
We are anxious to get Graham on board and contributing to our
business goals."

Mr. Perkins joins LCC from Dorsal Networks (recently acquired by
Corvis Corporation) where he was the Chief Financial Officer and
Treasurer. Prior to Corvis, Mr. Perkins helped found and served
as the Chief Financial Officer, Vice President, Treasurer and
Secretary for Iconixx Corporation, an e-business solutions
provider focused on emerging wireless and broadband technologies.

Mr. Perkins spent six years with Bell Atlantic Corporation, now
Verizon Communications, where he held CFO positions in several of
their domestic and international business units, including
financial oversight of both wireline and wireless investments
throughout the world.

Prior to joining Bell Atlantic, Mr. Perkins led the financial
team at the VSAT division of Hughes Network Systems and held
various financial and strategic planning positions with Contel
Corporation, including general management of its Saudi Arabian
operations, based in Riyadh.

Earlier experience included public accounting and management
consultancy with Deloitte, Haskins & Sells (now Deloitte &
Touche) and Ernst & Whinney (now Ernst & Young).

Mr. Perkins is a Fellow of the Institute of Chartered Accountants
in England & Wales and holds an MBA from Cranfield School of
Management in the U.K.

About LCC

LCC International, Inc. is a global leader in voice and data
design, deployment and management services to the wireless
telecommunications industry. A pioneer in the industry since
1983, LCC has performed technical services for the largest
wireless operators in North and South America, Europe, The Middle
East, Africa and Asia.

The Company has worked with all major access technologies and has
participated in the success of some of the largest and most
sophisticated wireless systems in the world.

Through an integrated set of technical business consulting,
training, design, deployment, operations and maintenance
services, LCC is distinct in its ability to provide comprehensive
turnkey services to wireless operators around the world. News and
additional information are available at www.lcc.com

Statements included in this news release which are not historical
in nature are forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 including, without limitation, statements
regarding increased demand for the Company's services, the
Company's ability to secure new business, and those factors
highlighted in LCC International, Inc.'s Annual Reports on Form
10-K and Quarterly Reports on Form 10-Q, which could cause the
Company's actual results to differ materially from forward-
looking statements made by the Company.


CONTACT: LCC International, Inc.
         Tricia Drennan
         Phone: 703/873-2390
         Fax: 703/873-2300
         tdrennan@lcc.com


ROYAL DOULTON: Plans to Dispose Part of Baddeley Green
------------------------------------------------------
Royal Doulton, which manufactures, distributes and sells prestige
and premium branded ceramic and glassware products to the
giftware, collectables and table-top markets, has conditionally
agreed to dispose of part of its freehold site at Baddeley Green
to Redrow Homes (West Midlands) Limited for a total consideration
of EUR6.5m payable in cash.  Of this consideration, EUR0.65m cash
will be paid today with a further EUR4.35m cash payable upon
completion. The final EUR1.5m cash will be paid no later than 30
June 2005.  The consideration is subject to downward adjustment
of up to EUR210,000 in certain circumstances.  The Disposal forms
part of the strategy which was supported by Royal Doulton
Shareholders at the time of the Rights Issue to realize value
from surplus assets.

The Disposal is subject to shareholder approval, in connection
with which a circular to Royal Doulton Shareholders will be
posted in January 2003.

Wayne Nutbeen, Chief Executive, commented:

'I am pleased to report that we are continuing to make progress
on the restructuring measures that we set out at the time of the
Rights Issue in the Spring.  Cash receipts from disposal of
surplus assets, excluding the current disposal of part of the
Baddeley Green site, are now expected to total over EUR9m in the
current financial year, which compares favorably with a target of
not less than EUR10m by the end of 2004.

Since we last reported to shareholders in respect of the half
year to 30 June 2002, reorganization measures have continued to
meet plan.  Trading conditions in the second half have been
challenging and remain competitive, but we nevertheless
anticipate that overall results for the year as a whole will be
broadly in line with market expectations.'


Proposed disposal of part of the Baddeley Green site and update
on restructuring

Introduction

The Board today announces that it has signed a conditional
agreement to dispose of part of its freehold site at Baddeley
Green (the 'Disposal Site') to Redrow Homes (West Midlands)
Limited ('Redrow Homes') for a total consideration of EUR6.5m
payable in cash (the 'Disposal').  Of this consideration,
EUR0.65m cash will be paid today with a further EUR4.35m cash
payable upon completion. The final EUR1.5m cash will be paid no
later than 30 June 2005.  The consideration is subject to
downward adjustment of up to EUR210,000 in certain circumstances,
further details of which are set out in the paragraph below
headed 'Principal terms and conditions of the Disposal'.  The
Disposal forms part of the strategy which was supported by Royal
Doulton Shareholders at the time of the Rights Issue to realize
value from surplus assets.

In view of the size of the Disposal relative to the Group,
completion is conditional upon the approval of Royal Doulton
Shareholders.  This approval will be sought at an Extraordinary
General Meeting to be convened shortly.  There is a further
condition which must be satisfied prior to completion, details of
which are set out in the paragraph below headed 'Principal terms
and conditions of the Disposal'. Completion will take place after
these conditions have been satisfied.

A circular to shareholders containing details of the Disposal and
convening the EGM together with forms of proxy are expected to be
dispatched to Royal Doulton Shareholders in January 2003.

Background to and reasons for the Disposal

The Company has continued to implement the restructuring program
and strategy endorsed by Royal Doulton Shareholders at the time
of the Rights Issue in February 2002.

At that time, the Group detailed its plans to: close retail
outlets that were making an inadequate contribution; rationalize
the number of directly supplied wholesale accounts in the UK and
Europe; and close its factory at Baddeley Green in Stoke on
Trent, transferring production of Royal Albert tableware to the
Group factory in Indonesia.  The latter move was designed to
allow the Group to focus manufacturing by brand, to improve
service levels and efficiencies and also to allow the Group
flexibility to manage its brand portfolio strategically.

These initiatives were designed to progress the process of
restoring viability to the business by seeking a substantial
improvement in the Group's trading performance through the
reduction of production costs, overhead costs and employee
numbers, without the need to rely on increasing sales to achieve
results.

Since the time of the Rights Issue, the Board has continued to
monitor opportunities to ensure that value is extracted from both
operational and financial initiatives and, amongst other things,
has sought to realize cash from the sale of assets surplus to the
business.

With the closure of the manufacturing operations sited on
Baddeley Green prior to 31 December 2002 and the transfer of
production to the Group's Indonesian factory completed, the
Baddeley Green Site is surplus to the requirements of the
business. The Board has therefore undertaken extensive marketing
of the Disposal Site, being that part of the land upon which the
manufacturing operations stood. This is a brownfield site
suitable for residential development, for which residential
planning permission has been approved.  The Board believes that
the Disposal is an excellent opportunity to realize cash and was
encouraged by the interest shown in this site by third parties.

Information on Baddeley Green

The Disposal Site comprises a brownfield site with an area of
approximately 4.11 hectares (10.15 acres) which currently
contains a purpose built manufacturing premises which measures
approximately 23,225 sq.m. (250,000 sq. ft.).

At 30 June 2002, the land and buildings comprising the Disposal
Site at Baddeley Green had a net book value of EUR3.7m.

Your Board has been advised by Jones Lang LaSalle that as at
today's date the market value of the Disposal Site is fairly
represented in the sum of EUR6m.  The market value basis of
valuation assumes that the circumstances (details of which are
set out below) leading to a fall in value of up to EUR210,000 do
not arise.

Principal terms and conditions of the Disposal

The Disposal Site is being sold by Swinnertons Limited, a wholly
owned subsidiary of Royal Doulton, for a consideration of EUR6.5m
cash to Redrow Homes.

A deposit (refundable should the conditions referred to below not
be satisfied by 24th June 2003), of EUR0.65m will be paid
Thursday to Royal Doulton's solicitors and held until completion,
with a further EUR4.35m cash payable upon completion. The
remaining EUR1.5m deferred consideration will be secured by a
legal charge granted by Redrow Homes on the security of the
Disposal Site and will be paid either on the release of the
hundredth house constructed on the Disposal Site by Redrow Homes
or on 30 June 2005, whichever is the earlier.  From the deferred
consideration, Redrow Homes is entitled to deduct a sum of up to
EUR210,000.  This comprises up to EUR150,000 as a contribution
towards the cost of relocating a third party's telecommunications
equipment on the Disposal Site, to the extent the costs incurred
in doing so exceed EUR100,000.  The balance of up to EUR60,000 is
a contribution towards the cost of highway works required as a
condition of planning permission for the Disposal Site, to the
extent a budgeted cost of EUR90,000 is exceeded.

Completion is conditional upon the passing of the resolution
approving the Disposal at the Extraordinary General Meeting and
upon the completion of an agreement with Stoke on Trent City
Council pursuant to section 106 of the Town and Country Planning
Act 1990 as amended by the Planning and Compensation Act 1991 in
relation to the planning obligations prescribed by the planning
permission for residential development benefiting the Disposal
Site, both conditions to be satisfied by 24 June 2003.

Financial effects of the Disposal

The proceeds of the Disposal will be used in part to reduce the
Group's indebtedness under its existing facilities and in part to
fund the continuing restructuring program.

Based on the net book value at 30 June 2002 of the asset being
disposed of the Board expects to report a gain of EUR2.8m before
any restructuring costs.

Extraordinary General Meeting

A circular convening an Extraordinary General Meeting is expected
to be posted to Royal Doulton Shareholders in January 2003
setting out further details of the Disposal and the resolution to
be proposed at the meeting in connection with the Disposal.

Cazenove & Co. Ltd, which is regulated in the United Kingdom by
the Financial Services Authority, is acting exclusively for Royal
Doulton plc and no-one else in connection with the Disposal, and
will not be responsible to anyone other than Royal Doulton plc
for providing the protections afforded to clients of Cazenove &
Co. Ltd nor for providing advice in relation to the Disposal or
any matter referred to herein.


CONTACT: Wayne Nutbeen/Geoff Martin
         Royal Doulton
         Phone: 01782 404040

         Lesley Allan/Wendy Baker
         Hudson Sandler
         Phone: 0207 796 4133


ROYAL MAIL: Names Ex-soccer Czar to Chief Executive Post
--------------------------------------------------------
Beginning February next year, Royal Mail will be headed by a new
CEO in Adam Crozier, the man credited for the turnaround of
England's football team, says Reuters.

Mr. Crozier, 38, was signed up last week to help steer the ailing
postal corporation out of the bog.  Best known for his
masterstroke in reviving the fortunes of the Football
Association, Mr. Crozier will be assisted by Elmar Toime, who was
appointed executive deputy chairman.  Mr. Toime is currently the
chief executive of New Zealand Post.

"The combination of Elmar Toime's experience in postal services
and Adam Crozier's modernizing touch is a very powerful cocktail
that will ensure the delivery of our renewal plan and restore
Royal Mail to being the best postal service in the world,"
Chairman Allan Leighton said in a statement.

Mr. Crozier left English soccer's governing body at the end of
October after clashes with other leading officials over how
football should be run.  He was responsible for bringing in Sven
Goran Eriksson as the first non-Englishman to lead the England
squad in late 2000 and saw the team progress to the quarterfinals
of the World Cup.

Despite widespread criticism at the time, his choice proved a
masterstroke with the Swede taking the team to the World Cup
finals in Japan and South Korea after winning their qualifying
group, Reuters said.

Before joining the FA in January 2000, Mr. Crozier held the post
of joint chief executive at advertising agency Saatchi & Saatchi.

Both Mr. Crozier and Mr. Toime will receive a basic annual salary
of 500,000 pounds, plus bonus and incentive arrangements on a
one-year rolling contract.  A Royal Mail spokeswoman told Reuters
any bonus plans would be performance-related and would not be
paid if the company did not hit its target of returning to
profitability by April 2005.

Mr. Crozier will replace current CEO John Roberts.  The latter
has served the firm as chief executive since 1995 and joined the
post office in 1967.  He had earlier promised to step down upon
the appointment of his successor.


ROYAL & SUNALLIANCE: Shareholders Doubt New Management
------------------------------------------------------
Despite Royal & SunAlliance's appointment of a new chief
executive officer in an effort to secure the company's hazy
future, shareholders remained unconvinced the new team will
succeed, the Independent says.

Following the departure of then CEO Bob Mendelson in September,
the board reportedly scoured the market for a replacement. The
search ended Thursday with Andy Haste, currently chief executive
of Axa Sun Life, the life and pensions business of the Axa group,
becoming chief executive of RSA. John Napier, chairman of the
water group Kelda, is to take over from Sir Patrick Gillam when
he retires as chairman in March.

Mr Haste led the consumer division of GE Capital before joining
Axa.  He will start his new post in April, while Mr Napier will
join in January and will take over as chairman in March.

The Independent further reports Sir Patrick was "enormously
pleased" with the appointments, saying Mr Napier, who has no
experience of insurance, was adept at turning round companies and
would do the same job at RSA. He also said he had left the
business with a very good management succession, expressing
regret that he and Mr Mendelsohn had been unable to find a buyer
for the group's life businesses before 11 September.

However, analysts are concerned that the chairman is an unknown
to insurance and that Mr Haste's experience lies in life and
pensions business, while RSA is steering a course to become a
property and casualty insurer. "At a time when the company is at
such a crucial stage, there will be no one on the board that
either knows the industry or knows the company," one analyst
said.

The share price has failed to recover, closing down more than 5
per cent at 118p Thursday, as concerns over the group's ability
to pull off its disposal package hinged on the credibility of its
new management.

Roger Hill at UBS Warburg told the Independent Andy Haste will
have to be judged on his results. "Shareholders are not
immediately behind him because he doesn't have a profile. The
company is in desperate need of proper shareholder support and
that would have been helpful to have at the start of a new
appointment," Mr Hill added.


TXU EUROPE: EU Commission Gives Nod on Powergen Proposal
--------------------------------------------------------
The proposal of Powergen PLC to acquire parts of UK-based TXU
Europe was granted the go ahead last week by the European
Commission, AFX News says.

Powergen is controlled by E.ON AG.  In November, Standard &
Poor's Ratings Services lowered the credit rating on the notes
issued by TXU Europe Funding Ltd. to 'D' from 'CC', following the
downgrade of the senior unsecured debt rating on TXU Eastern
Funding Co.  At the same time, the notes were removed from
CreditWatch, where they had been placed on October 23, 2002.

The rating on the senior unsecured debt issued by TXU Eastern
Funding acts as a supporting rating to the notes issued by TXU
Europe Funding, a special-purpose entity that issued EUR500
million secured 7% notes on November 29, 2000.  The rating on TXU
Eastern Funding's debt was lowered to 'D' and removed from
CreditWatch on November 20, 2002, after the company filed for
administration.

TXU Europe had earlier announced it would divest big assets,
including TXU Nordic Energy and majority stakes in two German
utility companies.  The company succumbed into administration
after its U.S. parent, TXU Corp, abandoned the energy concern.

CONTACT:  TXU Europe Limited
          The Adelphi, 1-11 John Adams St.
          London WC2N 6HT, United Kingdom
          Phone: +44-20-7879-8081
          Fax: +44-20-7879-8082
          Home Page: http://www.txu-europe.com


UK COAL: Names Replacement of Retiring Chairman
-----------------------------------------------
Struggling coal producer UK Coal Plc announced last week Chairman
John Robinson will retire at the next Annual General Meeting on
April 29, 2003.  He will be replaced by David Jones CBE, who was
appointed last week as non-executive director.  He will serve in
that capacity beginning January 1, 2003, AFX News said.

Mr. Jones, 60, joined The National Grid Company PLC in 1994 as
group chief executive and retired on March 31, 2001. He is
currently chairman of Teesside Power Ltd and a non-executive
director of Bull Information Systems.

Geological problems and escalating cost are currently eating up
the bottom line of UK Coal.  In a previous issue, Troubled
Company Reporter-Europe said the company faces 36 million pounds
in losses over the next two years due to ground problems that
makes coal so expensive to mine.  Other estimates place the
company's losses at GBP164 million.

In September, the company bared interim six months profit of
GBP0.5 million compared with last year's GBP30.7 million loss in
the same period.  Loss before tax amounted to GBP12.5 million, up
from last year's GBP10.8 million.  Sales volume dipped slightly
to 9.6 million tonnes from last year's 10.4 million tonnes.


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

        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.


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