/raid1/www/Hosts/bankrupt/TCREUR_Public/030107.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

                 Tuesday, January 7, 2003, Vol. 4, No. 004


                              Headlines


* B E L G I U M *

DEXIA SA: Claims for Damages Reach EUR4.5 Billion
DEXIA BANK: Receives Summons from Stichting Leaseverlies


* F I N L A N D *

SONERA CORP: Regulator Accepts Deal on Telekolmio's Shares


* F R A N C E *

AIR LIB: Trade Union Fears Bankruptcy on Failure to Find Investor
MUELLER INDUSTRIES: Plans to Exit France this Year
SELF TRADE: DAB Ships Self Trade to Fimatex for EUR62 Million
VIVENDI UNIVERSAL: S&P Affirms Rating on Successful Disposals


* G E R M A N Y *

BABCOCK BORSIG: Supervisory Board to See Changes - Sources
DRESDNER BANK: Sees Gloomy Future to Continue in 2003
HERMANN HEYE: Yeoman Now Controls Firm's Core Operations
WALTER BAU: Chairman Denies Financial Woes


* L U X E M B O U R G *

VANTICO GROUP: S&P Lowers Long-term Corporate Credit Grade to 'D'


* P O L A N D *

BRE BANK: Results Contradict President's Expectations
BRE BANK: Announces Acquisition of eCard Shares
BRE BANK: Announces Transaction with BRE-Fundusz Kapitalowy


* S W E D E N *

IKEA: Founder Hints Closure of Flagship Store in Aelmhult


* U N I T E D   K I N G D O M *

IZODIA: Shareholders to Appoint Ernst & Young as Liquidators
LONDON CLUBS: Regulator Imposes Deadline on Stanley Leisure Bid
GLAXOSMITHKLINE: Hunger Strikers Turn Up Heat on GSK
GLAXOSMITHKLINE: Activists Urge Regulators to Junk Bristol Tie-up
ROOSECOTE POWER: Receivers Put Power Station on Sale
SMG PLC: Executive Bonus Payment Under Fire from Investors



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


DEXIA SA: Claims for Damages Reach EUR4.5 Billion
-------------------------------------------------
Spokesman for Legio Lease Foundation, Charles Huijskens, said claims for
damages against Dexia SA over a Dutch share-leasing program have reached
EUR4.5 billion.

According to Dow Jones, Dutch investors wanted compensation as they assert
that they were misinformed about the transaction.

Legio Lease, which Dexia inherited from Aegon as part of Labouchere buyout,
ran into trouble late in 2002 after share prices tumbled in Amsterdam.
Sharp falls in equity prices left investors, who were lent money to buy
blue-chip shares by Dexia under the scheme, without money to pay their debts
with the bank.

The Franco-Belgian bank provided easier payment terms and contract
extensions to Legio Lease investors, but negotiations failed at the
beginning of December with the Legio Lease Foundation, which represents
about 40,000 investors.

Mr. Huijskens attributed the failure of the talks on the failure of the two
sides to reach an agreement on the compensation amount. The Foundation wants
the bank to pay back all the investors, plus interest debt and monthly
charges they paid, totaling between EUR3.0 billion and EUR4.5 billion.  But
Dexia disagreed on grounds that the amount was too high, said the spokesman.

According to the report, Mr. Huisjkens admitted that the amount was an
unrealistic demand, estimating the real damage suffered by his members were
only between EUR1 billion and EUR1.5 billion.  He said it would take up to
two years for a verdict to be reached.

In December, Dexia reserved a EUR496 million provision for Legio
Lease-related costs on estimate that the amount is the maximum possible
loss.


DEXIA BANK: Receives Summons from Stichting Leaseverlies
--------------------------------------------------------
Dexia confirms that Dexia Bank Nederland has received summons from Stichting
Leaseverlies and Consumentenbond on January 2, 2003.  According to the
plaintiffs, Bank Labouchere and its successors would have commercialized
share-leasing products under certain conditions, which would not have
allowed the clients to be fully informed about the risks related to the
products.

These summons have been announced a number of weeks ago by Stichting
Leaseverlies and contain no new elements with respect to the allegations
that this foundation had already made in the past.

Dexia believes that the allegations made by Stichting Leaseverlies and
Consumentenbond have no legal grounds and is confident about its chances of
success, after having proceeded with a full review of the risks, including
legal risks, related to the products commercialized by Bank Labouchere and
its successors. Dexia will therefore resolutely defend its interests before
all competent courts. The legal arguments currently made by the Stichting
Leaseverlies and the Consumentenbond, as well as all other arguments that
have been or will be made in the future, are not applicable or groundless.

Dexia Bank Nederland had announced on December 5, 2002 that it has proposed
a general offer aiming at maintaining the commercial relationship with its
clients.  This offer is currently being finalized and will be communicated
individually to all clients in the coming weeks.

Dexia confirms it has taken all conservatory measures that are required to
cover the risks linked to this situation, and in particular that the
provisions, which have been taken, are sufficient to cover the costs and
risks related to this matter.



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


SONERA CORP: Regulator Accepts Deal on Telekolmio's Shares
----------------------------------------------------------
The Finnish Competition Authority accepted last week the deal between Hameen
Puhelin Oy and Sonera Corporation that was forged in August 2002, according
to which Sonera acquired a 40% minority holding in Telekolmio Oy from Hameen
Puhelin Oy, a company belonging to the HPO Group.

When accepting the company acquisition, the FCA imposed conditions on its
implementation. The conditions include that Telekolmio must offer 15 base
stations owned by it for sale to a competitor or competitors that are
independent of Telekolmio, Sonera and HPO and that have sufficient financial
resources. After the sale, Telekolmio will commit itself to hire the
transmission links required by the base stations on reasonable,
non-discriminatory and unbiased conditions. Sonera will commit itself to
contribute to the implementation of Telekolmio's obligations as a minority
shareholder.

"Sonera is pleased with the FCA's decision to accept the deal on
Telekolmio's shares. Telekolmio is now able to concentrate on its most
important task, which is to serve its customers. The role of Sonera is to
provide competitive services and products," says Jaakko Nevanlinna, Business
Function Executive at Sonera.

"We chose a strong national partner for Telekolmio, which enables us to
offer the most advanced telecommunication services for our customers. It is
important that the FCA arrived at a decision that is positive for us. The
conditions set by the FCA are reasonable," says Reijo Syrjalainen, Group
Director at HPO Group.

In addition to this deal, Hameen Puhelin and Sonera have agreed on extensive
business cooperation involving product development, mobile communications
and broadband business, delivery of data network services, and marketing. In
Sonera's view, the deal on Telekolmio's shares is a separate business
transaction and not a prerequisite for business cooperation between Hameen
Puhelin and Sonera.

Hameen Puhelin and Sonera have appealed to the FCA to grant special
permission for their co-operation in the field of purchases and ADSL. The
FCA continues to examine the issue.

Telekolmio Oy is a subsidiary of Hameen Puhelin, offering services to
corporate customers. Hameen Puhelin acquired the company's entire share
capital in a deal with ElisaCom Ltd last summer. After the deal with Sonera,
Hameen Puhelin Oy owns 60% of Telekolmio. Telekolmio operates in the
Hameenlinna, Lohja and Riihimaki regions. Hameen Puhelin operates in
Hameenlinna, Hattula, Hauho, Janakkala, Renko, Kalvola, Lammi and Tuulos.

The HPO Group consists of Hameen Puhelin Oy, Telekolmio, the Hameen Sanomat
Group and Hameen Tietotekniikkakeskus.


CONTACT: TELIASONERA AB
         Marbackagatan 11
         SE-123 86 Farsta, Sweden
         Phone: +46-8-713-1000
         Fax: +46-8-713-3333
         Homepage: http://www.telia.se

         Business Function Executive Jaakko Nevanlinna, Sonera
         Corporation
         Phone: 02040 60662
         E-mail: jaakko.nevanlinna@sonera.com

         Group Director Reijo Syrjalainen, HPO Group
         Phone: (03) 614 3210
         E-mail: reijo.syrjalainen@hpo-yhtymä.com
                 jaakko.nevanlinna@sonera.com
                 reijo.syrjalainen@hpo-yhtymä.com



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


AIR LIB: Trade Union Fears Bankruptcy on Failure to Find Investor
-----------------------------------------------------------------
French airline Air Lib might file for bankruptcy if an investor could not be
found by January 9, says the trade unions of the troubled airline.

The government had already extended the carrier's operating license from
October 31 to January 31 to allow it to find an investor.  At present, while
it did not offer any alternative to the Air Lib restructuring plan, it also
hinted to support a real investor for the company, Les Echos said citing a
representative of the CGT union.

In December, French daily La Tribune warned of EUR300 million refinancing
needs for Air Lib.  According to the report, the airline has to have EUR199
million to refurbish its fleet and finance a redundancy program that will
lay off 136 more employees.  The company also needs EUR130 million to pay
debts if its efforts to cancel the obligation fail.

According to CFTC delegate, Jean-Christophe Bandler, a filing for bankruptcy
will erase the company's debts but will also endanger 2,500 workers of the
carrier.


MUELLER INDUSTRIES: Plans to Exit France this Year
--------------------------------------------------
Mueller Industries, Inc. announced Thursday last week that it intends to
discontinue its manufacturing operations in France. As a result, the Company
will recognize a loss on discontinued operations of approximately US$14
million, or 38 cents per diluted share for the quarter ending December 28,
2002.

The loss on discontinued operations is net of an income tax benefit of
approximately US$15 million related to French losses previously unrecognized
for tax purposes. Prior period and future results for the Company's French
operations will be reported and classified as discontinued until disposition
of the French operations is completed, which the Company anticipates will
occur during 2003.

Regarding the decision, Mueller Chairman Harvey L. Karp, said, "Mueller's
results in Europe have been adversely affected by the difficult business
environment in France. We have committed to a plan to either divest or
liquidate our manufacturing operations in France and we expect, on a cash
basis, the decision to be neutral, as the tax benefit will approximately
offset the cost of liquidation. Going forward, our remaining European
operations should contribute to operating income and generate positive cash
flow."

Fourth Quarter and Business Outlook

Additionally, Mueller announced that it anticipates fourth quarter earnings
from continuing operations will be within the range of 20 cents to 24 cents
per diluted share. This compares with earnings from continuing operations of
30 cents per diluted share in the fourth quarter of 2001. The principal
factor impacting the operating results is copper tube margins.

Discussing the business outlook, Mr. Karp said, "Historically low mortgage
rates continue to provide a strong impetus for the housing and construction
market. Home prices in most markets are rising and the national economy
appears to be staging a steady recovery. We anticipate that 2003 will be a
good year for Mueller, particularly if copper tube demand and margins
improve. Mueller believes it is the low cost producer of copper tube and,
therefore, is in an excellent position to benefit from increased demand and
margins or to defend its market share."

Mueller Industries, Inc. is a leading manufacturer of copper tube and
fittings; brass and copper alloy rod, bar and shapes; aluminium and brass
forgings; aluminium and copper impact extrusions; plastic fittings and
valves; refrigeration valves and fittings; and fabricated tubular products.
Mueller's operations are located throughout the United States and in Canada,
Mexico, France, and Great Britain.

CONTACT:  MUELLER INDUSTRIES, INC.
          Kent A. McKee
          Phone: +1-901-753-3208 (MLI)


SELF TRADE: DAB Ships Self Trade to Fimatex for EUR62 Million
-------------------------------------------------------------
Germany's DAB Bank AG sold online broker Self Trade to rival brokerage
agency, Fimatex, for EUR62 million (US64.9 million) in cash, or 1/20th of
the US$1.28 billion (EUR1.22 billion) value it had in 2000.  Fimatex
acquired the business' operations in France, UK and Spain.

Self Trade is considered as casualty of the current crisis in on-line
brokering industry, as trading by individual investors decreased by more
than half since stock markets plunged from their peak nearly three years
ago.

The failure ends DAB's hope of expanding outside Germany into France, UK,
Spain and Italy.  First to go were the Italian operations, which were shut
down in early 2002.   Self Trade had 140,000 accounts as of Sept. 30, less
than a quarter of DAB's group-wide total of 606,000.

DAB disposed of the business, which it believed has not the critical mass in
those countries to become profitable, in order to prioritize reaching
profitability for the year.

The group's loss widened to EUR15.4 million in the third quarter of 2002,
from EUR12.9 million in the second, and it has since taken other steps to
cut costs.

The transaction between DAB and Fimatex becomes effective in the first
quarter, with the final price subject to Self Trade's financial position at
the end of the year, according to the Wall Street Journal.


VIVENDI UNIVERSAL: S&P Affirms Rating on Successful Disposals
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' long-term and 'B'
short-term corporate credit ratings on Vivendi Universal SA and its
subsidiaries.

The action follows the French media and telecommunication giant's successful
completion of asset disposals and financing agreements, which the rating
agency believed has improved the group's liquidity position and reduced its
debt burden.

Vivendi's long-term ratings were removed from CreditWatch, with developing
implication, and changed to stable.

The group had confirmed on December 31, 2002 that it was able to sell U.S.
publishing unit Houghton Mifflin for $1.28 billion (around EUR1.3 billion)
in cash.  The completion of the transaction would trigger an affirmation of
Vivendi's ratings, S&P earlier said.

Despite the affirmation, S&P warns that the group's liquidity could again be
pressured if it could not push through with major asset disposals it had
planned for the year, and if the full refinancing of U.S. subsidiary Vivendi
Universal Entertainment's (VUE) US$1.62 billion credit line maturing
mid-2003 proves difficult.

The rating agency, nevertheless, assumes that that Vivendi Universal will
continue to actively reduce debt and improve liquidity through asset
disposals in 2003.

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

          Contact:
          Jean-Bernard Levy, Chief Operations Officer
          Robert de Metz, Executive Vice President



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


BABCOCK BORSIG: Supervisory Board to See Changes - Sources
----------------------------------------------------------
The supervisory board of insolvent German engineering group, Babcock Borsig,
will soon have changes according to sources.  Suddeutsche Zeitung reports
that supervisory board Chairman Friedel Neuber will resign in the second
week of January.

The supervisory board has previously been criticized for delaying insolvency
proceedings.  The Dusseldorf department of public prosecution has accused
the management of having been aware of the financial plight of the company
as early as in the spring of 2002.

TCR-EUR first reported about the company in June last year when it posted a
need for EUR200 million to continue operations.

Formerly known as Deutsche Babcock AG, Babcock Borsig AG operates in the
engineering industry designing and building power generators, water
treatment systems and hazardous waste disposal plants. The group also
manufactures generators, boilers and other equipment for use in these
facilities.

Operating through more than 70 subsidiaries and associated companies
worldwide, Babcock Borsig also produces drying and coating systems,
cleanroom equipment and merchant and naval vessels such as cruise liners,
yachts, and submarines.

German-based logistics company Preussag holds almost 20% of the engineering
group.

Meanwhile, Joachim Theye, the lawyer, is also reported to be planning to
resign.


DRESDNER BANK: Sees Gloomy Future to Continue in 2003
-----------------------------------------------------
Dresdner Bank, which reported a loss of EUR174 million in the third quarter,
rules out a recovery this year, according to Bloomberg.

Bernd Fahrholz, the bank's chief executive said, "A perceptible recovery in
the economic situation is required to ease the situation in the lending
business and in investment banking," adding that "This recovery isn't in
sight."

Dresdner, a unit of Allianz AG, accounts for the EUR972 million of Allianz's
EUR2.5 billion third quarter loss.  It is selling businesses to prevent
further losses.

The pessimism is shared by HVB Group, one of the three biggest German banks
along with Dresdner Bank.  Executives in the sector consider the fall in
stock markets and the slow economic growth last year as the worst since
World War II.

Deutsche Bank, HVB, Dresdner and Commerzbank, lost a combined
EUR962 million in the third quarter as bad loan provisions surged 86
percent.  Analysts predict the similar amounts of provisioning for this
year.

"2003 will be another difficult year for German banks," HVB spokesman Thomas
Pfaff said.


HERMANN HEYE: Yeoman Now Controls Firm's Core Operations
--------------------------------------------------------
Ireland-based Yeoman International acquired all the main areas of business
of insolvent Hermann Heye KG, including the German firm's container glass
activities and Heye International, which manufactures plant for the
container glass industry.

According to Frankfurter Allgemeine Zeitung, the glass group's two divisions
are to be operated as separate subsidiaries, with the status of private
limited company, under a holding company managed by the Irish glass group.
The transaction will displace 265 employees of the group's 1165 staff.

Previously, Heineken NV, which held a 33% stake in Heye Glas Nederland,
maker of the former's green bottles, also fully acquired the business from
the group.  Heye, based in Obernkirchen, Germany, filed bankruptcy in June
2001.


WALTER BAU: Chairman Denies Financial Woes
------------------------------------------
The chairman of Walter Bau AG, Wolf Fitzner, denies speculations that the
company is in financial difficulty, while adding that he expects it to make
a "clear" net profit this year.

To emphasize his point, Mr. Fitzner told Handelsblatt: "There has never been
a bill we have not paid."

As for the EUR100-million bank loan obtained from the beginning of the
previous year, Mr. Fitzner reasoned that the amount was just a precautionary
measure.  He stressed that the company is well prepared for the ongoing
recession in the construction industry.

The chairman even expects Walter Bau to post a net profit this year on an
output of EUR3 billion, as he expects the company to report a EUR30 million
pretax profit for 2002 on an output of EUR3.3 billion.

Meanwhile, Mr. Fitzner said Walter Bau plans to sell its 49% stake in peer
Ed Zueblin by June 30 to raise about EUR190 million to finance new
acquisitions.

CONTACT:  WALTER BAU
          Boheimstr.8
          86153 Augsburg
          Germany
          Phone: +49 (0)8 21/55 82-00
          Fax: +49 (0)8 21/55 82-3 20
          Home Page: http://www.walter-bau.de/



===================
L U X E M B O U R G
===================


VANTICO GROUP: S&P Lowers Long-term Corporate Credit Grade to 'D'
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered the long-term corporate credit
rating on Vantico Group S.A. to 'D' from 'CCC-' following the group's
deferral of a loan payment due December 31, 2002.  The rating was removed
from CreditWatch, where it was placed in June.

The company's deferral on a SFR25.9 million loan obligation to January 28,
2003 constitutes a technical default under the rating agency's criteria for
issuer credit ratings, even if approved by group's banks, according to
Standard & Poor's credit analyst Christine Hoarau.

S&P's statement of its action noted that the epoxy-resins manufacturer is
currently discussing the restructuring of its balance sheet with all
financial stakeholders, including those holding its EUR250 million senior
notes due August 2010.

The rating agency said it expects a bond restructuring to occur, and so Ms.
Hoarau warned that, "Even though a balance-sheet restructuring could be
beneficial to the company's longer-term future, if any bond restructuring
were to include a "coercive" tender offer for outstanding bonds or a
debt-to-equity swap, the rating on Vantico's senior unsecured debt would be
lowered to 'D'."

Despite the group's SFR75 million of available funding, the rating agency
warned that Vantico's group liquidity risk is high due to its dependence on
continued successful negotiations with its senior lenders.

The 'C' rating on Vantico's senior unsecured notes remains on CreditWatch
with negative implications.




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


BRE BANK: Results Contradict President's Expectations
-----------------------------------------------------
BRE Bank posted readjusted 2002 results with over PLN100 million (US$26
million) losses, contrary to the assurance of the bank's President Wojciech
Kostrzewa that the entity would have clean accounts for year 2002, Warsaw
Business Journal said.

Marcin Materna from DM BIG BG estimated that the total loss for the whole
year could even be as high as PLN160 million (US$41.86 million).

Marek Ewieton from ING Investment Management said, "This is a signal that
the bank is having trouble collecting money from its debtors."

Moody's Investors Service downgraded the financial strength ratings of BRE
Bank from D to D- in November.  The action was taken in the context of
ongoing difficulties affecting the Polish banking system, which see some
banks performing better than others.

According to the rating agency, BRE Bank's earnings generation capacity and
corporate loan portfolio has suffered.  Its loan growth, though, continued
to be strong and its cost to income ration increased.  Moody's characterized
the bank's profile more volatile compared to other banks, and its presence
in the retail banking still very small.

The Warsaw-based bank has consolidated assets of PLN23 billion (EUR6.5
billion), and net profit of PLN221 million (EUR62.8 million) in 2001.


BRE BANK: Announces Acquisition of eCard Shares
-----------------------------------------------
The Management Board of BRE Bank SA announces that as a result of investment
portfolio arrangement on December 30, 2002 BRE Bank SA acquired from BRE -
Fundusz Kapitalowy Sp. z o.o., a subsidiary of BRE Bank SA, under civil law
contract 23,856 shares of eCard SA with nominal value PLN100 per one share.
BRE Bank SA owns 100% of shares and votes of BRE - Fundusz Kapitalowy Sp. z
o.o.

The said shares represent 28.57% of capital share of eCard SA and allow
execution of 23,856 votes on meeting of shareholders of the company. The
shares were acquired for total amount of PLN 1.

Value of the shares in the books of BRE - Fundusz Kapitalowy Sp. z o.o. were
PLN 0. Value of the shares in the books of BRE Bank is equal the purchase
price. BRE Bank SA financed the transaction from its own sources. Bank
considers this acquisition as a long-term investment.

After the transaction, BRE - Fundusz Kapitalowy Sp. z o.o. now owns no
shares of eCard SA. Before the transaction BRE Bank SA owned no shares of
eCard SA.


BRE BANK: Announces Transaction with BRE-Fundusz Kapitalowy
-----------------------------------------------------------
The Management Board of BRE Bank SA announces that, as a result of
investment portfolio arrangement on December 27, 2002, BRE Bank SA has
acquired, under civil law contracts, from BRE-Fundusz Kapitalowy Sp. z o.o.,
a 100% subsidiary of BRE Bank SA:

(1) 718 bonds with nominal value US$50,000 per one bond and total nominal
value US$35,900,000, issued by International Trading and Investment Holdings
S.A. with its seat in Luxembourg (ITI) on the basis of document "Convertible
Bonds issued by ITI Holdings S.A." dated June 11, 2001. These bonds were
acquired by BRE Bank SA for a total amount of US$35,900,000.

(2) 300 bonds with nominal value US$50,000 per one bond and total nominal
value US$15,000,000, issued by International Trading and Investment Holdings
S.A with its seat in Luxembourg (ITI) on the basis of document "Convertible
Bonds issued by ITI Holdings S.A." dated June 28, 2001. These bonds were
acquired by BRE Bank SA for total amount of US$15,000,000.

About the fact that BRE Fundusz Kapitalowy Sp. z o.o. waived the right to
convert the said bonds into the shares of ITI, and that ITI waived the right
to demand the conversion the said bonds into shares of ITI, BRE Bank SA
informed in current report RB/96/02 on June 5, 2002.

Total value of all transaction, which took place from October 1, 2002 to
December 27, 2002 between BRE Bank and BRE-Fundusz Kapitalowy Sp. z o.o., is
PLN303,110,033.42 and exceed value of 10% of BRE Bank's capital.  The
acquisition the bonds of ITI by BRE Bank for total amount US$50,900,000 is
the transaction of highest value.



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


IKEA: Founder Hints Closure of Flagship Store in Aelmhult
---------------------------------------------------------
Ingvar Kamprad, founder of the Swedish furniture giant Ikea, admitted that
he has become increasingly concerned that he may have to close some stores
due to the economic downturn.

The Scotsman said in its report that Mr. Kamprad is particularly worried
that Ikea will ditch its flagship store in Aelmhult, 233 miles south-west of
Stockholm, which first opened its doors in 1958.

Being used to champion rapid growth, he said: "I see the responsibility and
what the consequences can be. It's not fun to sit and feel this
responsibility."   Mr. Kamprad added he did not want to be remembered "as
the one who destroyed the livelihood for so many" in Aelmhult.

However, a spokeswoman for Ikea told the Scotsman: "This only affects the
local area in Aelmhult and has no bearing on the UK running whatsoever and
we are going ahead with our expansion plans as normal."

Founded in 1943, Ikea initially sold pens, picture frames, watches,
jewellery and nylons. Two years later Mr. Kamprad moved into mail order. By
1955, it begun designing its own furniture, with the first flat pack design
emerging one year later.

Ikea opened its first UK store in 1987 and now has 11 stores across the UK,
and more than 140 stores with 70,000 workers in 22 countries.

Mr. Kamprad is alarmed Ikea could be expanding too quickly for its own good.



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


IZODIA: Shareholders to Appoint Ernst & Young as Liquidators
------------------------------------------------------------
Izodia, the failed software business, is currently at a loss for persons
authorized to manage the company's remaining business transactions.

According to the Financial Times, Jarlath Vahey, Izodia's only executive
director, has been in North America for most of the past three months and
has been difficult to reach, while Peter Catto, Izodia's sole other board
member and a non-executive director, has also spent little time in London in
recent weeks.  It is noted that Mr. Catto has been pursuing other business
interests in Asia.

The whereabouts of the company's officials were questioned as shareholders
worry that some of its cash deposits, believed to be worth a total of t33
million, may have matured on December 31, and the banks have not been
instructed on how to dispose of the funds.

Mr. Vahey should have submitted his letter of resignation to Izodia's
adviser, Navigator, on December 23, but failed to do so.

Mr. Vahey is an employee at investment company Orb, which was raided in
December by the Serious Fraud Office investigating allegations of "unlawful
misappropriation of funds belonging to Izodia."  Orb, which is Izodia's
largest shareholder with a 29.9% stake, denied the allegations.

The company's shareholders are scheduled to meet to decide on appointing
Ernst & Young as liquidators, and to vote on new directors who will
supervise a return of Izodia's cash.

Navigator, meanwhile, is said to be reviewing its role as adviser after
failing to obtain bank statements that would clearly locate the company's
cash.

Gerald Smith, an Orb director, earlier said that Izodia's cash was held in
several accounts in the UK and in Jersey for "tax optimization purposes".


LONDON CLUBS: Regulator Imposes Deadline on Stanley Leisure Bid
---------------------------------------------------------------
The Takeover Panel, which regulates City merger activity, gave Stanley
Leisure a three-week deadline to come up with a final decision whether or
not to bid for rival London Clubs International.  The move follows LCI's
advisers' plea for the agency to act on the matter.

The gaming group was given until noon of January 2 to offer a formal bid or
refrain from making an approach for at least six months, with no extension
unless allowed by the panel of executive.

Earlier, Stanley approached LCI with a 25p share offer proposal,
including plans to pay off 90% of the company's net debt.  The approach
valued LCI's share capital at GBP36.8 million.  LCI Chairman Michael Beckett
dismissed the offer as ridiculous, but City sources, according to The
Independent, suggested that the group would be prepared to raise its bid.

LCI has net debt of GBP224 million at the end of September 2002.  It needs
to pay back GBP100 million in September from disposal of assets, including
Palm Beach and 50 St. James casinos.  Stanley Leisure had made a bid for
Palm Beach, which is worth an estimated GBP35 million.

A successful bid of Stanley Leisure for LCI is understood to pressure the
latter to keep its agreement to sell five London casinos, including Les
Ambassadeurs, to Hg Capital, a private equity group, to avoid a competition
inquiry.  Stanley Leisure has 28 provincial casinos and three in London,
including Crockfords and the Colony Club.

According to the report, any potential deal is dependent on which casinos
LCI agrees to sell, and on whether Sol Kerzner, the South African gaming
tycoon who owns $15m of LCI's debt, decides to use his investment to make a
move on the UK gaming market.

WestLB Panmure acts as adviser for London LCI.

CONTACT: LONDON CLUBS INTERNATIONAL PLC
         10 Brick Street London W1J 7HQ
         Phone: +44 (0) 20 7518 0000
         Fax: +44 (0) 20 7495 6915
         E-mail: enquiries@london-clubs.co.uk
         Homepage: http://www.lciclubs.com
         Contact: Michael Beckett, Non-Executive Chairman
                  Barry Hardy, Finance Director

         STANLEY LEISURE PLC
         Stanley House
         151 Dale Street
         Liverpool
         L2 2JW
         Phone: 0151 237 6000
         Fax: 0151 237 6179
         E-mail: info@stanley.co.uk
         Homepage: http://www.stanleyleisure.com/
         Contact: Bob Wiper, Chief Executive
                  Michael Riddy, Finance Director
                  Phone: 0151 237 6000

         WESTLB PANMURE
         London, UK
         WestLB Panmure Limited
         Woolgate Exchange
         25 Basinghall Street
         London EC2V 5HA
         Phone: +44 20 7020 4000
         Homepage: http://www.westlbpanmure.com
         Contact:
         Grahame Cook
         Patrick Furer, Joint Chief Executive Officers
         Phone: +44 20 7020 4000


GLAXOSMITHKLINE: Hunger Strikers Turn Up Heat on GSK
----------------------------------------------------
AIDS Healthcare Foundation (AHF), the largest AIDS organization in the US,
applauded Friday the recent South African Black Christmas hunger strike
targeting GlaxoSmithKline's (GSK) AIDS drug pricing that was spearheaded by
AIDS advocates from the National Association of People Living with HIV/AIDS
(NAPWA).

The hunger strike, started on Christmas day in front of GSK's Midrand
offices in the Gauteng Province of South Africa, ended on January 2. It was
part of the "Seven Days Black Christmas" protest to pressure pharmaceutical
companies to provide anti-retroviral medications free of charge in resource
poor countries around the world and to pressure the South African government
to improve its response to the pandemic.

"We stand in solidarity with the Black Christmas hunger strikers and their
recent action in South Africa against GlaxoSmithKline over their
unconscionable AIDS drug pricing policies," said Michael Weinstein, AIDS
Healthcare Foundation president. "These hunger strikers -- many of whom are
also living with HIV or AIDS -- have sacrificed to help turn up the heat on
GSK's policies both in South Africa and around the world."

Glaxo controls the largest share of the global market in HIV medications --
over 40% of the worldwide market for HIV/AIDS drugs -- through exclusive
licensing and patent protections on the key AIDS drugs AZT, abacavir, 3TC,
and the combination formulations Combivir and Trizivir. As a result, AIDS
communities worldwide feel Glaxo's actions and impact directly.

Over the past year, AIDS activists on two continents were forced to file
lawsuits on GSK AIDS drug pricing. While other South African activists took
the pharmaceutical giant to administrative court over high prices, AHF filed
suit in the U.S. challenging profits and patents on drugs manufactured by
GSK, but invented by others.

In the U.S., Glaxo price increases over the past few years have contributed
to waiting lists on state AIDS Drug Assistance Programs (ADAP) for needy
Americans with HIV/AIDS. More recently, GSK shareholders wisely refused an
$8 million salary increase for J.P. Garnier, Glaxo's CEO, because of the
company's miserable financial performance over the past year.

The South African "Black Christmas" hunger strike sent some of the 15 or so
participants to the hospital with diarrhea, cramps and opportunistic
infections.

AIDS Healthcare Foundation is the US' largest provider of specialized
HIV/AIDS medical care. AHF serves thousands of patients in California, New
York and Florida regardless of their insurance status or ability to pay. In
addition, AHF currently operates two free AIDS treatment clinics in Africa:
the Ithembalabantu (Zulu for "people's hope") Clinic in KwaZulu Natal,
Durban, South Africa & the Uganda Cares Healthcare Center in Masaka, Uganda.


GLAXOSMITHKLINE: Activists Urge Regulators to Junk Bristol Tie-up
-----------------------------------------------------------------
AIDS Healthcare Foundation (AHF), the largest AIDS organization in the U.S.,
called last week the possible merger of British pharmaceutical giant
GlaxoSmithKline (GSK) with Bristol-Myers Squibb (BMS) "a certain disaster
for people with AIDS throughout the world" and called on American and
European authorities and investors to block the potential marriage.

"Every year experts predict a rash of consolidation in the fragmented
pharmaceutical industry," noted reporter Andrew Ross Sorkin in a recent New
York Times article on possible corporate mergers and acquisitions in 2003.

Mr. Sorkin noted, "The trouble-plagued Bristol-Myers Squibb may also be a
ripe takeover candidate -- if anyone is willing to approach it.
GlaxoSmithKline, desperate to match Pfizer's size, and the Swiss drug maker
Novartis are considered potential acquirers."

AIDS advocates noted that while Pfizer, the biggest drug maker in the world,
controls about 11 percent of the entire global pharmaceutical market, GSK
controls over 40% of the worldwide market for HIV/AIDS medications.

"In contrast to the significant investment Bristol has made in solving the
global AIDS crisis, Glaxo has no dedicated AIDS fund and refuses to make its
drugs affordable or accessible," said Michael Weinstein, President of AIDS
Healthcare Foundation. "Every day 8,500 AIDS deaths cry out for Glaxo to
reverse their backward policies. We don't want to see BMS' AIDS fund
dismantled by Glaxo's leadership."

Mr. Weinstein contrasted Bristol's "Secure The Future" program -- a
five-year, $100 million partnership with South Africa, Botswana, Namibia,
Lesotho and Swaziland -- with Glaxo's inaction.

"BMS makes substantial resources available in poor countries, and in
contrast Glaxo issues press releases," said Mr. Weinstein.

He also noted Pfizer and Boehringer Ingelheim donate drugs to resource poor
countries -- a practice Glaxo prohibits for its drugs -- while Merck
dedicates $50 million to Botswana's "Enhancing Care Initiative."

Mr. Weinstein said AIDS Healthcare Foundation will urge large investors such
as the California Public Employees Retirement System (CalPERS) to oppose the
merger. In response to the foundation's urging, CalPERS' finance committee
agreed in April to issue a letter to Glaxo regarding their AIDS pricing
policies in developing countries.

CONTACT:  AIDS Healthcare Foundation
          Cesar Portillo, AHF Chief of Public Affairs
          Phone: 323/860-5202
          Ged Kenslea, AHF Communications Director
          Phone: 323/860-5225


ROOSECOTE POWER: Receivers Put Power Station on Sale
----------------------------------------------------
KPMG LLP, the receivers of Roosecote power station in northern England, is
selling the 229-megawatt power plant abandoned by Norweb Energi, the sole
consumer of its power.

Norweb, the unit of TXU UK Ltd., pulled out of its 10-year power purchasing
agreement, after TXU UK Ltd. and its parent TXU Europe Group PLC went into
administration in November.

Mike Seery, a parner with KPMG LLP, told Dow Jones Newswires, "We are
placing an advert (to sell the station) in the press this week."  Without
giving the actual worth of the plant, he estimated the cost of building the
facility at GBP70 million, excluding freeholds on the land and building.

He also disclosed that, "Tens of millions are owed to the banks that
supported the development of the plant, and there are also tens of millions
owed in respect to those who supplied the gas."

The receivers, meanwhile, plan to file a GBP150 million to GBP200 million
claim against Norweb Enerqi.

Lakeland Power, a subsidiary of Edison International (EIX), continues to own
Roosecote.


SMG PLC: Executive Bonus Payment Under Fire from Investors
----------------------------------------------------------
A controversial executive bonus payment will be the subject of investors'
criticism during this month's extraordinary general meeting of media group
SMG plc, says The Scotsman.

A circular distributed to shareholders revealed that Desmond Hudson, chief
executive of the company's publishing division, is in line for a "disposal
transaction bonus" of between GBP150,000 to GBP600,000.  The report added
that the incentive, which is on top of an annual salary of GBP190,000 and
cash benefits of GBP10,000, appeared to be at the top end of the range.

According to the document, the figure assumes a maximum amount payable under
the disposal agreement of GBP220 million.

A spokesman for the company said the bonus was for Mr. Hudson's central role
in the "successful sale of the business at an excellent price."  The
spokesman said it is still premature to determine the amount as this is
still subject to net asset values of the businesses being bought at the time
of completion of the acquisition.

SMG sold the publishing division, whose titles include the Herald and Sunday
Herald, to American publisher Gannett for a headline figure of GBP216
million on December 23.

A SMG shareholder, however, said: "We have absolutely no idea of the amount.
In any case, even the minimum amount seems out of place when there is
increasing scrutiny of excessive executive remuneration."

SMG sold its publishing division in order to halve its GBP400 million debt
and focus on its other businesses, which include television, radio and
cinema advertising.

CONTACT:  SMG PLC
          Callum Spreng, Corporate Affairs Director
          Phone: 020 7882 1199





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
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