/raid1/www/Hosts/bankrupt/TCREUR_Public/030122.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

                 Wednesday, January 22, 2003, Vol. 4, No. 15


                              Headlines

* F R A N C E *

FRANCE TELECOM: In Search for New EUR5 Billion Credit Line
METALEUROP NORD: Parent Decides to Withdraw Financial Support
METALEUROP NORD: Parent's Decision Likely to Cause Downfall
VIVENDI UNIVERSAL: Reviews Davis' Offer for US Media Assets

* G E R M A N Y *

ALLIANZ AG: A.M. Best Lowers Two Allianz Suisse Companies
EM.TV & MERCHANDISING: Trial Against Former Owners to Continue
INFINEON TECHNOLOGIES: First Quarter EBIT Loss Down to EUR31 MM
INFINEON TECHNOLOGIES: To Grant Independence to Divisions
INFINEON TECHNOLOGIES: Gains Market Share Despite Difficulties
MOBILCOM AG: Shareholders to Vote for Vogel as Head of Board
MOBILCOM AG: Supervisory Board Appoints New Sales Director
ROESCH AG: Head Resigns Following Bankruptcy Filing

* I T A L Y *

FIAT SPA: Confirms It Has Plans of Divesting Auto Unit

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

KPN NV: Completes Sale of Vision Networks to Betbari

* P O L A N D *

4MEDIA: Asks Court to Commence Settlement Proceedings

* S P A I N *

AVANZIT SA: Creditor Banks to Negotiate Sale of Telson Anew

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

BZ BANK: Crisis at Parent Raises Doubt on Financial Status
CREDIT SUISSE: Comments On Preliminary Financial Results

* U N I T E D   K I N G D O M *

BAE SYSTEMS: Denies Speculations of Merger Talks with Boeing
CABLE & WIRELESS: Sells US e-Messaging Solution to Xpedite
MYTRAVEL GROUP: Cresta Attracts 20 Potential Acquirers
TXU EUROPE: Powergen Plans to Integrate Retail Business


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


FRANCE TELECOM: In Search for New EUR5 Billion Credit Line
----------------------------------------------------------
France Telecom is seeking a new EUR5 billion (US$5.33 billion) credit line
after rejecting an option to renew its existing financing, bankers involved
in the transaction said.

The phone company chose to extend the maturity of its debt instead of
renewing the existing financing for another 12 months after its expiration
in February, bankers told Bloomberg.

The new credit is intended to replace the EUR5 billion portion of France
Telecom's EUR15 billion credit that came from a group of 47 banks in
February 2002.  The group includes ABN Amro Holding NV, Barclays Plc, BNP
Paribas SA, Citigroup Inc., Credit Suisse First Boston, Deutsche Bank AG and
Societe Generale SA.

Last week, the Paris-based company sold EUR5.9 billion of bonds.  Proceeds
of the offering are intended to help the company pay maturing debt this year
and to sustain operations until the planned EUR15 billion capital increase
in the equity markets is completed.

With EUR3 billion raised in a separate bond issuance in December, and EUR6
billion of cash balance, analysts expect France Telecom to cover debt
repayments for the year.

CONTACT:  FRANCE TELECOM
          6, Place d'Alleray
          75505 Paris Cedex 15, France
          Phone: +33-1-44-44-22-22
          Fax: +33-1-44-44-95-95
          Homepage: http://www.francetelecom.fr
          Contacts: Thierry Breton, Chairman
                   Michel Combes, Executive Committee, Finance


METALEUROP NORD: Parent Decides to Withdraw Financial Support
-------------------------------------------------------------
The Board of Directors of Metaleurop S.A. (Metaleurop) decided in its Board
meeting on January 16, 2003 not to grant additional funding (loans) to its
subsidiary Metaleurop Nord (Noyelles Godault). The decision was taken in
order to ensure the financial stability of the Metaleurop Group.

Cumulative losses at Metaleurop Nord amounting to an estimated EUR97 million
in 2001 and 2002 precipitated a restructuring effort began in July 2002.
Historically low zinc and lead prices greatly contributed to these operating
losses. Zinc prices averaged US$886 in 2001 and fell to US$779 in 2002. Lead
prices were US$476 in 2001 and fell to US$453 in 2002.

After the conversion to secondary zinc feed in the Imperial Smelting
Furnace, the restructuring plan underway at Metaleurop Nord includes a
personnel reduction of 265 people, and significantly lower operating costs.
However, it has become apparent, as confirmed by outside consultants, that
it would take an additional 1 year and 50 million Euros to fund the
restructuring plan.

The Board of Metaleurop S.A. had to accept that the necessary resources were
not available at Metaleurop S.A. for the completion of the restructuring at
Metaleurop Nord and it concluded that it was unable to grant this funding to
Metaleurop Nord. According to CEO Russ Robinson, "the decision was a very
difficult one, but Metaleurop S.A. does not have the financial resources to
grant additional funding to Metaleurop Nord". The Metaleurop Nord turnover
amounts to approximately 50 percent of the consolidated Metaleurop Group
2001 pro forma turnover (without Nordenham zinc).

Due to the changing profile of Metaleurop S.A., it has liquidated its
forward foreign currency euro-dollar hedges. The profits of these
liquidations will be largely realized in 2003. Metaleurop S.A. expects its
total Bank debt to be reduced to under EUR35 million by June of 2003 from a
high of over 125 million Euros during 2002. Over half of its Bank debt is in
the form of long-term loans. A return to profitability in 2003 can be
achieved based on the most recent decisions by the Board of Directors of
Metaleurop S.A.

Metaleurop S.A. also announced that two members of its Board of Directors
Helmut Stodieck and Jean-Marie Thomine-Desmazures resigned effective
December 31st, 2002. At the Board meeting on January 16th, 2003, Alain
Ostier was elected to the Metaleurop S.A. Board of Directors. Alain Ostier
has substantial hands-on experience in the metals industry and therefore
will be a valuable addition to Metaleurop S.A. Board.

CONTACT:  METALEUROP
          Maxime ARNAUD
          Phone: +33 1 42 99 47 73
          Mobile: + 33 6 74 93 21 83
          Fax: + 33 1 40 75 09 63
          E-mail: maxime.arnaud@metaleurop.fr


METALEUROP NORD: Parent's Decision Likely to Cause Downfall
-----------------------------------------------------------
The decision of parent company Metaleurop SA to stop funding its wholly
owned subsidiary, Metaleurop Nord, will likely lead to the unit's
insolvency, says Le Figaro.

The possible insolvency of the company, which employs 830 staff at its lead
and zinc factory at Noyelles-Godault, is seen to likely create additional
economic pressure in Pas-de-Calais, which already has an unemployment rate
of 25% and is home to 2,000 jobs currently under threat.

It is also foreseen to create numerous environmental problems.
Decontamination of the company's industrial site would cost EUR120 million
to EUR150 million, says the report.

Local residents have already filed legal proceedings against the company
after unusually high levels of lead were found in their children's blood.

The government, whose law dictates that the most recent occupier of an
industrial site has the responsibility of cleaning the area, said it would
make sure the company complies with the rule.

CONTACT:  METALEUROP Nord SAS
          1, rue Malfidano BP 1
          F - 62950 Noyelles-Godault
          Phone: 33/ (0)3 21 08 52 00


VIVENDI UNIVERSAL: Reviews Davis' Offer for US Media Assets
-----------------------------------------------------------
Vivendi Universal is considering the US$20 billion offer of billionaire
Marvin Davis for the French company's U.S. media assets, says a spokesman
for the oilman.  The assets include, Universal Studios, Universal Music
Group and the USA and Sci-Fi Channel cable networks.

Executives at Vivendi met with Davis' adviser, Brian Mulligan, in France
last week.  Davis himself will meet with Vivendi executives in Paris before
the end of the month, said people familiar with the matter.

Debt-laden Vivendi has been selling businesses to trim down debt to EUR6.4
billion by 2004.  The company has total debt repayments of EUR4.5 billion in
2003.

Vivendi Universal run into EUR19 billion of debt after a failed attempt of
ex-Chief Executive Jean-Marie Messier to create a European company capable
of competing with AOL Time Warner Inc. and Walt Disney Co.

The company's share price has fallen 88 percent since hitting a record of
EUR150 in March 2000. In 2002, the shares lost 75 percent of their value.
They've gained 14 percent so far this year.

Bloomberg says the company may get competing offers, especially for the
cable networks, from Viacom Inc. or Liberty Media Corp.

Viacom Chairman Sumner Redstone is interested in the Sci-Fi Channel and
possibly the USA Network, a person familiar with the matter said.  The
company declined to comment on a possible bid.

Liberty Chief Executive Robert Bennett also said earlier that his company
might seek a controlling stake in the Vivendi assets.  Representatives from
his company declined to issue comments.

General Electric Co.'s NBC television unit may also consider making an offer
if the terms are agreeable, NBC Chief Executive Robert Wright said in July.

Independent media analyst and chief executive of Vogel Capital Management
Inc. said, "Eventually, they will do this because Vivendi still needs the
cash."

Analysts earlier said the company needed to divest more assets in order to
earn an investment grade credit rating.

The board of Vivendi is scheduled to meet later this month to review any
developments in a possible sale of assets, says a person familiar with the
situation.

CONTACT:  VIVENDI UNIVERSAL
          Headquarters
          42 Avenue de Friedland
          75380 Paris Cedex 08
          France
          Phone: +33 1 71 71 10 00
          Fax: +33 1 71 71 11 79
          Contact:
          Investor Relations
          E-mail: investor-relations@groupvu.com

           Daniel Scolan, Executive VP
           Investor Relations
           Phone: +33.1.71.71.12.33
           E-mail: daniel.scolan@groupvu.com
           Laurence DANIEL
           IR Director, Europe
           Phone: +33.1.71.71.12.33
           E-mail: laurence.daniel@groupvu.com
           Edouard LASSALLE
           Associate Director, Europe
           E-mail: edouard.lassalle@groupvu.com

           Vivendi Universal
           New York office
           375 Park Avenue
           New York, NY
           10152-0192
           USA
           Phone: +1 212 572 7000



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


ALLIANZ AG: A.M. Best Lowers Two Allianz Suisse Companies
---------------------------------------------------------
A.M. Best Co. has lowered the financial strength ratings of Allianz Suisse
Versicherungs-Gesellschaft and Allianz Suisse
Lebensversicherungs-Gesellschaft -- both referred to as Allianz Suisse -- to
A+ (Superior) from A++ (Superior). At the same time A.M. Best has removed
from both companies the under review status with negative implications. The
outlook is negative.

These rating actions reflect A.M. Best's view that Allianz Suisse is no
longer core to its ultimate parent company Allianz AG. Additional rating
factors include Allianz Suisse's strong overall business position in the
Swiss market, its reduced consolidated capitalisation and weak but improving
operating performance.

Strategically Important -- A.M. Best no longer views Allianz Suisse as core
to its ultimate parent company, Allianz AG, following a decline in
consolidated capitalization and deterioration in Allianz Suisse's overall
operating performance. However, A.M. Best believes that it is strategically
important as Allianz Suisse's strong business position in the Swiss
insurance market enhances Allianz's geographic presence.

Strong Business Position -- With total premiums of CHF 3.6 billion (USD 2.1
billion) in 2001, Allianz Suisse ranks number three in the Swiss non-life
market with a share of 8.5% -- including the subsidiaries Alba Versicherung
and CAP Rechtschutz -- and number six in the life market with a share of
5.2%. A.M. Best expects stable premium income in 2002 as a result of strong
competition in the Swiss non-life market and Allianz Suisse's decision to
concentrate on more profitable individual life business.

Reduced Capitalisation -- Allianz Suisse's consolidated risk-adjusted
capitalisation based on A.M. Best's capital model has been reduced in 2002,
following significant write-downs in Allianz Suisse's investment portfolio
and the utilization of cash reserves. A.M. Best expects an improved
risk-adjusted capitalization in 2003 through retained earnings, but it is
unlikely to be restored to a previous superior level.

Weak, but Improving Operating Performance -- A.M. Best expects an overall
loss in 2002 as result of significantly lower investment income and pressure
on life earnings from the 4% minimum guarantee for group life contracts. The
decision by the Swiss government to reduce this guarantee to 3.25% will
alleviate this pressure.

Allianz Suisse has adopted a more conservative investment strategy by
reducing its equity exposure and increasing its bond portfolio. A.M. Best
believes that Allianz Suisse may find it difficult to significantly improve
overall earnings within the current low interest rate environment.

Negative Outlook -- The negative outlook reflects A.M. Best's concerns that
Allianz Suisse's consolidated risk-adjusted capitalization could further
deteriorate if weak equity markets and pressure on life persist in 2003.

A.M. Best Co., established in 1899, is the world's oldest and most
authoritative insurance rating and information source. For more information,
visit A.M. Best's Web site at www.ambest.com.

CONTACT:  For A.M. Best Co.
          Public Relations
          Jim Peavy
          Phone: 908/439-2200, ext. 5644
          E-mail: james.peavy@ambest.com
          or
          Rachelle Striegel
          Phone: 908/439-2200, ext. 5378
          E-mail: rachelle.striegel@ambest.com
          or
          Analysts
          Michael Zboron
          Phone: +(44) 20 7626 6264
          E-mail: Michael.zboron@ambest.com
          or
          Annie Tay
          Phone: +(44) 20 7626 6264
          E-mail: annie.tay@ambest.com


EM.TV & MERCHANDISING: Trial Against Former Owners to Continue
--------------------------------------------------------------
The probe as to whether German media group EM.TV & Merchandising issued
incorrect profit forecasts in August 2000 is set to recommence.

Wolfgang Ballwieser, professor for business studies at Munich University,
will now continue to investigate former board members Thomas and Florian
Haffa in relation to the issue.

Mr. Ballwieser replaced the previous expert who was found out having contact
with the Haffa brothers before his hearing.

Munich-based EM.TV filed for creditor protection after running into
accounting blunders and overspending on acquisitions.

It is offering its US animation unit, The Jim Henso Co., for sale to pay off
loans.  The kids media company expects to raise at least EUR64 million from
the sale of just below half of the subsidiary.

According to U.S. investment bank Allen & Co., which was hired by the media
company to divest the unit, the asset has attracted bidders including the
Walt Disney Co. and Haim Saban, who reportedly offered US$130 million.

CONTACT:  EM.TV & MERCHANDISING
          Betastrasse 11
          D-85774 Unterf"hring, Germany
          Phone: +49-89-995-00-0
          Fax: +49-89-995-00-11
          Homepage: http://www.em-ag.de
          Contacts:
          Bernd Thiemann, Chairman, Supervisory Board
          Werner Klatten, Chief Executive Officer
          Andreas Pres, General Manager of Finance


INFINEON TECHNOLOGIES: First Quarter EBIT Loss Down to EUR31 MM
---------------------------------------------------------------
(i) First quarter revenues were Euro 1.52 billion - up 10 percent
sequentially and up 47 percent year-on-year

(ii) Revenue increase was mainly driven by increased demand for memory
products and chips used in mobile communications

(iii) Another record sales quarter of the automotive & industrial segment

(iv) First quarter EBIT was a loss of Euro 31 million, a strong improvement
from a loss of Euro 292 million sequentially and from a loss of Euro 564
million year-on-year

(v) Memory Products group achieved profitability through improved sales,
significant cost reductions and productivity increases

(vi) Best industry cost position in the DRAM market
Continued solid cash position

Infineon Technologies AG (FSE/NYSE: IFX), one of the world's leading
semiconductor manufacturers, on Monday announced results for its first
quarter in fiscal year 2003, ended December 31, 2002. The company had
revenues of Euro 1.52 billion, an increase of 10 percent sequentially and 47
percent year-on-year. The revenue increase was mainly driven by higher
demand for memory products and semiconductors used in mobile phones and the
continued strong performance of the automotive & industrial segment. The
revenue increase also reflects the first time consolidation of a full
quarter of revenues of Ericsson Microelectronics, which Infineon acquired in
September 2002.

Dr. Ulrich Schumacher, President and CEO of Infineon Technologies AG
commented: "Our focus on technology and cost leadership resulted in further
market share gains. We improved our revenue performance sequentially and
year-on-year and achieved profitability in our memory products group by
improved pricing, product mix and by significantly reducing the fully loaded
costs of our memory chips."

Quarterly EBIT (earnings before interest and taxes) was a loss of Euro 31
million, a strong improvement from a loss of Euro 292 million in the
previous quarter, which included exceptional effects of 119 million Euro,
and from a loss of Euro 564 million in the first quarter of the last fiscal
year. The improved earnings performance was mainly due to further cost
reductions in the memory product segment and a shift in sales towards higher
margins products.

Net loss amounted to Euro 40 million compared to a net loss of Euro 506
million in the previous quarter, which included a non-cash charge of Euro
275 million to establish a deferred tax valuation allowance. The first
quarter tax expense continues to reflect a valuation allowance for tax
losses incurred in certain tax jurisdictions according to US GAAP. Basic and
diluted loss per share for the first quarter of fiscal year 2003 was Euro
0.06, improving from a loss per share of Euro 0.72 in the previous quarter
and Euro 0.48 year-on-year.

Expenditures for Research and Development in the first quarter totaled Euro
265 million, or 17 percent of sales, down from Euro 292 million
sequentially. The reduction is principally due to in-process research and
development charges in the previous quarter of Euro 37 million. "With our
continued investment in R&D and advanced manufacturing processes we have
significantly improved our productivity and reduced production costs,
particularly for memory products," said Dr. Schumacher.

SG&A expenses totaled Euro 172 million or 11 percent of total revenues,
compared to Euro 163 million or 12 percent of total revenues in the previous
quarter.

Infineon's gross cash position, representing cash and cash equivalents,
marketable securities, and restricted cash, amounted to Euro 1.6 billion,
down sequentially from Euro 2 billion. The decrease in gross cash was mainly
due to investments for 300mm volume production and for the introduction of
the next shrink to 0.11 micron technology, the build-up of inventories,
principally in memory products, and a volume related increase in accounts
receivable.

Revenues outside Europe constituted 54 percent of total revenues, up from 53
percent in the previous quarter, reflecting Infineon's increased market
penetration in Asia and Japan. As of December 31, 2002, Infineon had
approximately 30,900 employees worldwide, including about 5,400 engaged in
research and development.

Business Group Performance

Effective November 1, 2002, Infineon merged its Wireless Solutions and
Security and Chip Card ICs groups into a single group called Secure Mobile
Solutions. Infineon believes that combining the operations of the two groups
will enable it to better address the continuing convergence of the markets
for security and mobile applications, for example in future generations of
mobile phones. The merger also reflects the company's increased focus on
providing integrated solutions under its recently announced "Agenda 5-to-1"
corporate strategy. The integration of these two business groups is
reflected in the following discussions and in the attached financial results
tables, which have been reclassified for all earlier periods to reflect the
new reporting structure.

The Automotive & Industrial group's first quarter revenues reached another
all-time high of Euro 334 million, an increase of 4 percent sequentially and
of 22 percent year-on-year. The increase resulted principally from stronger
volume sales in power management & supply products as well as automotive
power applications. EBIT improved sequentially to Euro 44 million compared
to Euro 38 million in the previous quarter and to Euro 20 million
year-on-year. The EBIT improvement was mainly due to continued cost
reductions and productivity increases and was achieved in the face of
significant pricing pressure in the automotive electronics market.

Infineon further penetrated the market for next generation engine management
with improved sales of its 32bit TriCore microcontroller technology and also
gained further market share for power management & supply applications,
particularly in Asia. A successful restructuring of the sensors business has
already improved that segment's sales, especially sales of magnetic and
pressure sensors.

Wireline Communications revenues improved slightly to Euro 106 million in
the fourth quarter, up 1 percent from the previous quarter, and up 28
percent year-on-year. The sequential revenue increase was due principally to
improved sales of Ethernet over VDSL access technology in the Asian markets.
EBIT improved to a loss of Euro 42 million from a loss of Euro 45 million in
the previous quarter, and improved significantly from a loss of Euro 85
million year-on-year. The year-on-year improvement was principally driven by
significantly improved sales volumes and cost savings.

Infineon further strengthened its position in the Asian markets as the
leading vendor of next generation high-speed VDSL broadband access
technology despite a continuing difficult market environment. Further
reductions by global carriers in infrastructure investments negatively
affected the market for wireline communication products, in particular
hampering a recovery in demand for fiber optics and optical networking
products. Infineon is the first vendor to introduce 10G XPAK transceivers
for the fiber optics market, and expects the first sales of these products
in the third quarter of this fiscal year.

Secure Mobile Solutions' first quarter revenues were Euro 412 million, up 11
percent from the previous quarter and up 44 percent compared to the first
quarter of last year. The revenues increase was mainly driven by the
stronger Christmas business for mobile phones. It also included the full
quarter revenues from Ericsson Microelectronics, acquired in September 2002.
EBIT amounted to a loss of Euro 28 million, compared to a loss of Euro 22
million in the previous quarter but improved from a loss of Euro 60 million
year-on-year. The quarterly loss was mainly due to lower sales volumes and
strong pricing pressure for chip card ICs, as well as integration costs and
operating losses totaling Euro 34 million for the acquired Ericsson
Microelectronics business. EBIT also included acquisition-related charges of
Euro 5 million, compared to Euro 39 million in the prior quarter.

Infineon strengthened its position in the market for next generation mobile
solutions with the introduction of a complete EDGE platform integrating the
multimedia-capable baseband IC S-GOLD, the RF-chip SMARTi DC+ and a power
management chip. The company announced a comprehensive alliance with Agere
Systems for the development of fast wireless network solutions solutions
(WLAN, IEEE 802.11a/b/g) including the cross licensing of intellectual
property and a mutual supply agreement.

Infineon also received the Sesames Award, which honors the best
technological innovation at the Cartes 2002 exhibition for one of its own
microcontrollers for contactless chip card applications and another one that
was jointly developed with Sony. The company strengthened its position as a
supplier for the "Trusted Platform Module Alliance" with the design-in at an
additional leading OEM.

The Memory Products group's first quarter revenues were Euro 542 million, a
strong increase of 24 percent sequentially and of 89 percent over revenues
for the first quarter of the last fiscal year, mainly driven by improved
demand. Sales also benefited from the access to recently established
capacity co-operations, such as Winbond. EBIT improved significantly both
sequentially and on a year-on-year basis to Euro 29 million, up from a loss
of Euro 204 million in the previous quarter and up from a loss of Euro 375
million in the first quarter of the last fiscal year. The strong earnings
improvement and return to profitability was primarily due to increased sales
volumes, significantly improved manufacturing costs, and a better product
mix.

Infineon further strengthened its world leadership for 300mm production by
achieving the cost cross-over with regard to 200mm production (i.e., volume
production on 300mm wafers became more cost efficient than on 200mm wafers)
in its 300mm facility in Dresden. Volume production on 300mm has now reached
more than 5,000 wafer starts per week and the company is well advanced in
its conversion to 0.14-micron technology. Infineon has expanded its
manufacturing partnership-network by entering into an agreement with
Semiconductor Manufacturing International Corporation (SMIC) in China. Under
the terms of the agreement, Infineon will provide its 0.14-micron DRAM
trench technology to SMIC and SMIC will manufacture DRAM products
exclusively for Infineon using this technology. Following the ramp-up of the
SMIC facility, the cooperation will enable Infineon to increase its overall
capacity by around 20,000 wafer starts per month by 2005. Infineon has also
qualified its 512Mbit DDR components in 0.14-micron at all leading
customers.

Infineon has decided to withdraw from the ProMOS joint venture in Hsinchu,
Taiwan, due to repeated material breaches of contract by Mosel Vitelic. As
of January 1, 2003, Infineon has discontinued its purchase of products from
ProMOS. This withdrawal is not expected to affect Infineon's leading DRAM
market position due to its other existing cooperations with Taiwanese
partners and cost and productivity improvements.

In the Other operating segment, first quarter revenues were Euro 119
million, down 13 percent sequentially and up 27 percent year-on-year. EBIT
improved to Euro 6 million compared to a loss of Euro 5 million in the
previous quarter and a positive EBIT of Euro 15 million in the first quarter
of fiscal year 2002.

In Corporate and Reconciliation, EBIT improved to a loss of Euro 40 million,
from a loss of Euro 54 million in the prior quarter and from Euro 79 million
a year ago, principally due to reduced idle capacity costs resulting from
improved utilization.

Outlook for the first half of calendar year 2003

"Although we see first signs of a positive market trend it is still too
early to speak of a sustained overall market improvement. We look with
cautious optimism into the future and expect a further stable development of
demand in most segments. But we also expect an ongoing difficult market
environment with continued pricing pressure in our wireline communications
and secure mobile solutions segments in the first half of calendar year
2003," commented Dr. Schumacher.

For its secure mobile solutions segment, Infineon expects increased demand
for GSM/GPRS mobile handsets in 2003. The company currently forecasts an
increase to 440 million units sold in calendar year 2003. However, during
the second quarter the company expects a slight decrease in sales volumes
due to seasonally reduced demand after Christmas. For the security and chip
card ICs market Infineon expects a seasonal weakness in demand and continued
strong pricing pressure for security controllers used in mobile
communications (SIM card ICs). However, for the second half of calendar year
2003 Infineon still expects an overall market improvement.

Further reductions of approximately 10 percent in capital expenditures for
global wireline telecom infrastructure are expected for 2003 following a
deterioration of approximately 37 percent in 2002, according to industry
analysts. Restricted enterprise and carrier spending for network equipment
is expected to continue to affect Infineon's fiber optics and optical
networking businesses. However, as the DSL rollout gains momentum, the
company expects to benefit from stronger demand for broadband access (ADSL,
VDSL), especially in Asia and Japan.

Despite strong pricing pressure in the automotive electronics and automotive
semiconductor markets, Infineon anticipates that further productivity
increases combined with leading product performance in its automotive
semiconductor business will enable the company to continuously gain market
share. Infineon expects the strongest growth to be in power semiconductors
and in power management and supply products.

Infineon anticipates that the second quarter of fiscal year 2003 will only
see a slight increase of demand for memory products, following robust sales
during the first quarter, which included the Christmas season. The
development of prices will depend on the market's psychology and
end-consumer behavior. A sustained improvement in prices during calendar
year 2003 would require stronger demand from the corporate replacement cycle
and increased infrastructure investments.

"We are among the first who returned to profitability in the memory market.
Our continued investment in technology for 300mm production is beginning to
pay off. We are confident that our successful shrink roadmap combined with
the expansion of our strategic manufacturing cooperations will enable us to
gain further market share and establish Infineon as a top three player in
the global DRAM market in the foreseeable future," said Dr. Schumacher.

To see Infineon's Financial Results:
http://bankrupt.com/misc/Infineon.htm

CONTACT:  INFINEON TECHNOLOGIES AG
          P.O. Box 80 09 49
          D-81609 Muenchen
          Germany
          Contact:
          Corporate Investor Relations
          Matthias Poth
          Phone: ++49 89 234-26655, Fax: -26155
          E-mail: investor.relations@infineon.com


INFINEON TECHNOLOGIES: To Grant Independence to Divisions
---------------------------------------------------------
Infineon Technologies Chief Executive Ulrich Schumacher said his company
will go ahead with its plan to decentralize its industry-based divisions.

"Each division should act more independently, perhaps also in order to
approach the market under a different shape at a later stage," Mr.
Schumacher said.

The move would result to the creation of boards of directors at each of the
divisions - memory, automotive and industrial, fixed-line communications,
mobile communications, and chip card products.  He told FT Deutscland this
could later demand that management relocate away from the group's Munich
headquarters, consequently making spin-offs unavoidable.

Mr. Schumacher, however, did not specify assets likely to be unloaded.  But
he is understood to have drawn plans for the partial flotation of Infineon's
D-Ram, or memory chip, business just before the market crashed in 2000, the
report says.

The German semiconductor manufacturer has struggled amidst the worst slump
in memory sales in the market.  As counter measures, the company initiated
deep cost cuts, efficient manufacturing processes and slightly higher chip
prices.

But cost savings also left it behind in terms of information technology
structure, resulting to poor forecasts about the evolution of the chip
market.

Mr. Schumacher who said it was still too early to consider upgrading
Infineon's system, also confirmed the company would postpone its production
of "flash" memories.


INFINEON TECHNOLOGIES: Gains Market Share Despite Difficulties
--------------------------------------------------------------
Infineon Technologies gained market share in all of its business groups in
the year 2002 despite a continuing difficult market environment. According
to leading market research companies Infineon improved its ranking among the
world's largest semiconductor companies, moving up from 8th place in 2001 to
6th.

"We have initiated our Agenda 5-to-1 program in response to a changed
market. We aim to pursue this strategy systematically over the coming five
years as it forms the basis for the long-term success of Infineon,"
explained Dr. Ulrich Schumacher, President and CEO of Infineon Technologies
AG, at the company's third annual general meeting. "To achieve our ambitious
objectives we need to win further market share in our target markets and
expand our solutions business, which will significantly enhance our
profitability."

Infineon is systematically implementing its "Agenda 5-to-1" strategy and
intends to secure a place among the top four leading semiconductor
manufacturers worldwide in the next five years. In each of its business
groups, the company plans to be among the top three. Infineon aims for a top
two position in profitability, and number one in the semiconductor solutions
business.

The semiconductor industry is undergoing radical change. The cycles so
typical of the industry, for example, are shorter today than ever before. In
this capital-intensive industry, know-how exchange and partnerships are
becoming increasingly important as a way of sharing investments and risks.
In this environment Infineon is driving forward its "Agenda 5-to-1" growth
strategy in order to emerge as one of the winners from the current market
crisis.

Results for the last fiscal year

Sales in the last fiscal year were down 8 percent compared with the previous
fiscal year, falling back to Euro 5.21 billion. The EBIT (Earnings Before
Interest and Taxes) posted in fiscal 2002 was a loss of Euro 1.14 billion,
compared with a loss of Euro 1.02 billion in the previous year. The net loss
amounted to Euro 1.02 billion, compared to a net loss of Euro 591 million in
the previous fiscal year. The loss per share (basic and diluted) was Euro
1.47 in fiscal 2002 compared with a loss per share of Euro 0.92 in fiscal
2001. "The revenue decrease resulted from the overall weak demand in the
semiconductor market with substantial pricing pressure in all business
groups, especially for memory products," said Dr. Schumacher. "Despite the
unexpectedly long continuation of adverse market conditions, we improved
revenues in all logic segments sequentially quarter by quarter during fiscal
year 2002."

The Automotive and Industrial Group achieved its best quarterly and annual
sales revenues ever. The 16 percent sales increase in memory products
year-on-year was a result of higher production volumes following
productivity and capacity increases as well as higher bit growth. These
positive developments were offset by a revenue decrease in the
communications and chipcard IC segments, mainly due to dramatically reduced
capital spending by the global telecommunications carriers, weak demand and
strong overall pricing pressure.

First quarter results

Infineon achieved revenues of Euro 1.52 billion in the first quarter of the
current fiscal, an increase of 10 percent compared to the previous quarter.
Quarterly EBIT (Earnings Before Interest and Taxes) was a loss of Euro 31
million and net loss amounted to Euro 40 million. Basic and diluted loss per
share for the first quarter of fiscal year 2003 was Euro 0.06. The revenue
increase was mainly driven by higher demand for memory products and
semiconductors used in mobile phones and the continued strong performance of
the automotive & industrial segment, according to Dr. Schumacher. The
improved earnings performance was mainly due to further cost reductions in
the memory product segment and a shift in sales towards higher margins
products.

Outlook for the first half of calendar year 2003

"Although we see first signs of a positive market trend it is still too
early to speak of a sustained overall market improvement. We look with
cautious optimism into the future and expect a further stable development of
demand in most segments. But we also expect an ongoing difficult market
environment with continued pricing pressure in our wireline communications
and secure mobile solutions segments in the first half of calendar year
2003," commented Dr. Schumacher.

For its secure mobile solutions segment, Infineon expects increased demand
for GSM/GPRS mobile handsets in 2003. The company currently forecasts an
increase to 440 million units sold in calendar year 2003. However, during
the second quarter the company expects a slight decrease in sales volumes
due to seasonally reduced demand after Christmas. For the security and chip
card ICs market Infineon expects a seasonal weakness in demand and continued
strong pricing pressure for security controllers used in mobile
communications (SIM card ICs). However, for the second half of calendar year
2003 Infineon still expects an overall market improvement.

Further reductions of approximately 10 percent in capital expenditures for
global wireline telecom infrastructure are expected for 2003, according to
industry analysts. As the DSL rollout gains momentum, the company expects to
benefit from stronger demand for broadband access solutions (ADSL, VDSL),
especially in Asia and Japan.

Despite strong pricing pressure in the automotive electronics and automotive
semiconductor markets, Infineon anticipates that further productivity
increases combined with leading product performance in its automotive
semiconductor business will enable the company to continuously gain market
share.

Infineon anticipates that the second quarter of fiscal year 2003 will only
see a slight increase of demand for memory products, following robust sales
during the first quarter, which included the Christmas season. The
development of prices will depend on the market's psychology and
end-consumer behavior. A sustained improvement in prices during calendar
year 2003 would require stronger demand from the corporate replacement cycle
and increased infrastructure investments.

Partnerships expanded

Infineon's growth strategy is based on organic growth as well as strategic
partnerships and acquisitions. In 2002, main cooperations for the memory
business group were the agreements with the Taiwan based Winbond Electronics
and Nanya Technologies as well as with the Chinese semiconductor
manufacturer SMIC. Therewith, Infineon is resolutely strengthening its
position in Asia and increasing its share in the worldwide market for memory
chips.

Moreover, Infineon has acquired the core business of Ericsson
Microelectronics as the basis to become a major supplier of products to the
infrastructure market for mobile telecommunications. Infineon has also
entered into a new joint venture, called StarCore, LLC, with Motorola and
Agere to develop and license the next generation of digital signal processor
technology. Together with AMD and DuPont Photomasks, Infineon has founded a
joint venture AMTC, for the development and manufacturing of complex mask
technologies for next generation chip designs.

World leader in 300mm production

Last December, just one year after the start of volume memory chip
production on 300mm-diameter wafers, Infineon reached the "cost cross-over"
milestone at its Dresden fabrication plant in Germany. This means that the
company produces memory chips more cheaply on 300mm wafers than on 200mm
wafers. The Dresden facility will ramp to its full production capacity by
summer 2003 and Infineon will then reap the full benefits of an
up-to-30-percent increase in productivity. "As pioneers of 300mm technology
we have succeeded in setting a new global standard for high-volume
semiconductor manufacturing and are unquestionably the trendsetter in this
domain," said Dr. Schumacher. "By converting our DRAM production to 300mm
technology we believe we have a one- to two-year lead over the competition
and we will use this to expand our position in the semiconductor industry."

Impact and Impact²

Infineon responded quickly to the changed market conditions in fiscal 2001
by launching its cost-cutting program 'Impact', which in the meantime
resulted in savings of about Euro 2.8 billion. To secure the long-term
success of Infineon, the company has rolled out its Impact² program,
focusing on further optimization of business processes, the establishment of
benchmarking and greater flexibility.

"As a result of the successful implementation of our cost-cutting program
'Impact', we achieved a significant improvement in our free cash flow and
gross cash position. This gives us a solid financial foundation," commented
Dr. Schumacher. "With 'Impact²' we are targeting to become even more
efficient, more flexible and faster."

Corporate Governance

Last year, Infineon published its own Corporate Governance Code and its
declaration of compliance in accordance with article 161 of the German stock
corporation act. It signals that Infineon is fully compliant with all the
recommendations of the government commission appointed to frame the German
corporate governance code. Moreover, the Infineon code goes beyond these
recommendations by defining additional specific measures to ensure
effective, value-oriented corporate governance. What the Infineon Managing
Board and Supervisory Board understand by corporate governance is a
comprehensive concept that covers all entrepreneurial values, processes and
objectives.

As part of the recommendations for good and responsible corporate
governance, a retention of 25 percent of the individual fixed annual salary
was determined in the Directors & Officers insurance for the members of the
Managing Board, and a retention of 100 percent of the fixed annual
remuneration of the Supervisory Board. In order to monitor and develop the
provisions, the company has appointed a Corporate Governance Coordinator,
who will report directly to the Managing Board and Supervisory Board.

"We support the efforts to further improve the corporate governance of
German companies, which by any international comparison is already
exemplary," said Dr. Schumacher. "We are even going a step further with our
own Corporate Governance Code and want to make our objectives for
value-oriented management and supervision of the company even more
transparent for our shareholders, customers, employees and the general
public. We will develop this code on an ongoing basis and regularly verify
compliance with its provisions across the entire company," Schumacher
continued.

Proposals to the annual general meeting

Among other items on the agenda at the Annual General Meeting, the
shareholders will decide on the subordination of management and profit
transfer agreement between Infineon Technologies AG and EUPEC (Europäische
Gesellschaft für Leistungshalbleiter mbH), Warstein-Belecke, Germany, in
which Infineon Technologies AG holds a 100 percent interest.


MOBILCOM AG: Shareholders to Vote for Vogel as Head of Board
------------------------------------------------------------
Majority of shareholders will favor the appointment of Dieter Vogel as
supervisory board chairman of German mobile telecommunications group
Mobilcom, Frankfurter Allgemeine Zeitung says.

Shareholders of Mobilcom are scheduled to meet January 7 to approve a major
rescue plan for the troubled group, and it is believed they would push for
the ascension of Mr. Vogel, the German government's chief negotiator in the
talks, to the position.

The German government previously demanded the resignation of supervisory
board Chairman Klaus Ripken as condition for its financial support for the
troubled telecoms group.

Following Mr. Ripken's resignation, Ulf Ganger, board member of German
public sector bank Hamburgische Landesbank, was placed as successor.

Horst Dietz, former managing director of the German subsidiary of ABB, is
expected to complete Mobilcom's supervisory board in the near future, the
report says.

Major shareholders France Telecom and Helmut Thoma, the trustee for the 42%
stake held by Gerhard Schmid and his wife, are seen likely to vote in favor
of the rescue plan during the meeting.

CONTACT:  MOBILCOM AG
          HollerstarBe 126
          P.O. Box 520
          24753 Rendsburg-Buedelsdorf
          Fax: +49-43-31-69-28-26
          Phone: +49-43-31-69-11-73
          Contact:
          Dr. Thorsten Grenz, Chairman of the Board


MOBILCOM AG: Supervisory Board Appoints New Sales Director
----------------------------------------------------------
At its meeting, MobilCom AG's Supervisory Board appointed Michael Grodd as a
member of the board.  He will be responsible for the division's sales and
marketing.  For many years, Michael Grodd owns practical knowledge in sales
in different companies.  He has known the branch for five years, at last
leading as General Manager the MobilCom Communicationstechnik GmbH and the
subsidiary Cellway Kommunikationsdienste GmbH. Since June 2002 he directs as
a member of the "Executive Committee" all sales and marketing activities of
the MobilCom group.

                             ******

Shareholders of restructuring MobilCom AG will vote on France Telecom's
(FTE) EUR7 billion bailout at an extraordinary shareholders meeting set for
January 27.

The approval of shareholders is necessary for the rescue plan that was
agreed by MobilCom, France Telecom and creditors in November to go ahead,
the paper said.  MobilCom, 28.5%-owned by France Telecom, is cutting jobs,
putting development of third-generation wireless services on ice and
restructuring its main mobile services business in a bid to return to
profit.


ROESCH AG: Head Resigns Following Bankruptcy Filing
---------------------------------------------------
German medical technology company Rosch AG Medizintechnik announces that as
of January 15, Prof. Dr. Burghard Weidler has resigned from his position as
CEO of the company and has also cancelled with immediate effect his
employment contract.

The announcement follows the company's filing for bankruptcy on January 3.
Europe's market leader in the field of needle-less injection systems filed
the petition at the court of Charlottenburg in Berlin on grounds of
illiquidity.

In a statement, the company said, "The negotiations conducted with various
financial and strategic investors could not be concluded successfully, so
that the injection of the necessary cash could not be achieved."

After the filing, it hopes that necessary restructuring and financing
measures to secure the continuation of the business can be implemented in
the course of the bankruptcy proceeding.

Rosch, which is known for its patented Injex-System, is listed in the Neuer
Markt.  It posted a preliminary net loss of EUR2.08 million for the first
six months fiscal 2001, which ends in July, according to Handelsblatt's.

CONTACT:  ROSCH AG MEDIZINTECHNIK
          Buckower Damm 114, 12349 Berlin
          Phone: +49.30-667915-79
          Fax: +49.30-667915-66
          E-mail: vorstand@roesch-ag.de



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


FIAT SPA: Confirms It Has Plans of Divesting Auto Unit
------------------------------------------------------
Fiat SpA confirmed it is considering spinning off its car unit and raising
capital to develop new models as a part of the industrial group's turnaround
plan, says Bloomberg.

Chairman and Co-Chief Executive Paolo Fresco said, ``We are studying various
initiatives to recapitalize our core businesses, starting with Fiat Auto,''
adding that, ``There are plans for a potential spinoff to provide our
businesses with added resources.''

It is understood that the spin-off would spare Fiat's profitable businesses
from the losses of the auto division.  It would also prevent financier
Roberto Colaninno from taking management control of the company.

Mr. Colaninno had indicated he is interested in providing EUR2.5 billion for
the unit, but that is dependent on him taking a significant management role.
He also favors strengthening alliance with General Motors Corp. to jointly
buy parts and build engines.

Fiat Auto, which has cut 8,100 jobs and reduced production to turn around
its car business, had an operating loss of less than EUR200 million (US$213
million) in the fourth quarter.  Operating loss for last year is EUR1.3
billion, higher than its forecast of EUR1.16 billion.

Analysts have said Fiat had its first full-year loss in a decade in 2001 and
is set to report a loss of as much as 1 billion euros for last year.

Mr. Fresco confirmed the board will examine Mr. Colaninno's proposal, after
which it will decide on whether to accept.  The board may call a meeting
ahead of the scheduled convention at the end of February.

Toni Simonetti, spokeswoman for General Motors, the carmaker owning 20% of
Fiat Auto, declined to comment, says the report.

Chief Executive Officer Rick Wagoner, meanwhile, said "We have plans to
continue with the activities we have with Fiat for the long term."

CONTACT:  FIAT SPA
          250 Via Nizza
          10126 Turin, Italy
          Phone: +39-011-686-1111
          Fax: +39-011-686-3798
          Toll Free: 800-804027
          Home Page: http://www.fiatgroup.com/e-index.htm
          Contact:
          Giovanni Maggiora, Vice President - Investor Relations
          Phone: +39-011-686-3290
          Fax: +39-011-686-3796
          E-mail: Investor.relations@geva.flatgroup.com



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


KPN NV: Completes Sale of Vision Networks to Betbari
----------------------------------------------------
KPN announced that Vision Networks N.V., the company under which KPN's cable
activities were organized, completed the sale of Vision Networks Tsjechie
Holding B.V. to Betbari Holding, owner of TES Media. Early January the
approval for this transaction was obtained from the Czech Antimonopoly
Office.

On December 18, 2002 Vision Networks completed the sale of Vision Networks
Polen Holding B.V. to a consortium led by 3TS Venture Partners A.G. and
consisting of the Technologieholding Central and Eastern European Fund NV.,
Technologieholding Central and Eastern European Parallelfund B.V., Nova
Polonia Private Equity Fund LLC, Nederlandse Financierings-maatschappij voor
Ontwikkelingslanden N.V. and Innova/98 LLC.

Vision Networks Tsjechie Holding B.V. was the owner of Intercable CZ in the
Czech Republic, the Czech Republic's second cable TV operator. Vision
Networks Polen Holding B.V, owned Slaska Telewizja Kablowa Sp. z o.o., the
second cable TV operator in the Upper Silesian region in Poland. The
combined proceeds of the sale of Vision Networks Tsjechie Holding B.V. and
Polen Holding B.V. are approx. EUR 65 million.

As Vision Networks has already sold off its cable interests in the
Netherlands, the United Kingdom, France and Germany, with the completion of
the sale of Vision Networks Tsjechie Holding and Vision Networks Polen
Holding, it is no longer active in the cable market.



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


4MEDIA: Asks Court to Commence Settlement Proceedings
-----------------------------------------------------
Media company 4Media has submitted a motion to the court concerning their
debt restructuring plan and a request to commence settlement proceedings,
says Warsaw Business Journal.

According to the company's proposal, 80 percent of its debts will be
restructured, while the remaining debts will be repaid in 12 equal quarterly
installments.

The company, which was created from the conversion of an unprofitable
chemical and tanning plant, Chemiskor SA, in 2001, also hopes creditors
would forgive them on interest due on late payments.

Factoring company Forin, is currently moving to acquire the group's title,
Prawo i Gospodarka.  A representative from Forin confirmed they are now on
the final stages of the acquisition.

During its creation, the media group was designed to run radio stations and
information agencies, publishing and consulting, advertising, IT as well as
market research and public opinion polling.



=========
S P A I N
=========


AVANZIT SA: Creditor Banks to Negotiate Sale of Telson Anew
-----------------------------------------------------------
A consortium led by venture capital fund Corpfin Capital will begin
negotiations with Avanzit's 42 creditor banks next week in relation to the
sale of the company's subsidiary, Telson Servicios Audiovisuales.

After the banks rejected an earlier offer by investment fund Alpha, the
board of Avanzit sees the current operation as its last chance to have the
suspension of payments lifted, says Expansion.

The insolvent Spanish technologies group is hoping to sell the audiovisual
producer, the only remaining profitable business of the group, for EUR22
million, including the assumption of some of its EUR76 million debt.

Avanzit has been in receivership since June after a failed attempt to
transform itself into a telecommunications, media and technology company.
It has total a total debt of EUR235 million as a result of the venture.

The Madrid-based company has been laying off workers and closing divisions
to survive.  The deal with Alpha is expected to save the firm from being
liquidated.

The company's largest creditors are Santander Central Hispano SA, Caja San
Fernando and Caja Castilla La Mancha.



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


BZ BANK: Crisis at Parent Raises Doubt on Financial Status
----------------------------------------------------------
In its eighteenth year of operation BZ Bank Limited earned a net income of
CHF1.6 million (previous year: CHF77 million). This result, however,
requires interpretation, since the run of business was to an exceptionally
high degree influenced by the great crises on the financial markets.

The severe financial problems of the parent company, BZ Group Holding
Limited, in the second half of the year gave rise to doubt regarding the
financial status of the Bank.

Although both the Bank and the supervisory authority declared that the Bank
always fulfilled all legal and regulatory requirements, the Bank suffered a
dramatic outflow of clients/ assets.

While net interest income with CHF10 million reached the level of the
previous year, commission and service income which decreased significantly
in the second half of the year contributed CHF69 million (CHF117 million) to
the gross profit of CHF0.5 million (CHF84 million).

The securities trading portfolio had a negative impact on the profit and
loss account in the amount of CHF69 million (minus CHF34 million).

As a consequence of the abovementioned events, the Bank was forced to
completely write off the remaining goodwill stemming from the acquisition of
the asset management business which led to increased depreciations of CHF30
million (CHF10 million).

In addition, the Bank had to make a capital contribution of CHF26 million to
the own pension scheme.

Extraordinary income includes a reduction of tax-paid hidden reserves in the
amount of CHF 46 million and of valuation adjustments for loss risks in the
amount of CHF 12 million.

Reported equity amounts to CHF 202 million (CHF 277 million), although in
2002 a dividend of CHF 77 million was paid to BZ Group Holding Limited. The
balance sheet total was CHF 358 million (CHF 1,027 million).

Assets comprise, apart from cash in the amount of CHF 45 million,
particularly claims against banks resulting from money market investments.

At year-end, securities held in custody with the bank totaled CHF 3 billion
(CHF 29 billion).


CREDIT SUISSE: Comments On Preliminary Financial Results
--------------------------------------------------------
Credit Suisse Group has decided to take a charge of USD 450 million (CHF 702
million) for certain litigation against CSFB in addition to a charge of USD
150 million (CHF 234 million) for the previously announced agreement in
principle with US regulators. It will book a previously announced after-tax
loss of USD 250 million (CHF 390 million) on Pershing's sale in fourth
quarter 2002. The Group expects a net loss of approximately CHF 1.0 billion
for the fourth quarter and a net loss of approximately CHF 3.4 billion for
the full year 2002. Capital ratios are expected to be in line with those at
the end of the third quarter. Winterthur returns to profitability in the
fourth quarter 2002.

Credit Suisse Group today announced that it has decided to take a pre-tax
charge in the fourth quarter of 2002 of USD 450 million (CHF 702 million),
or USD 293 million (CHF 456 million) after tax, for Credit Suisse First
Boston's private litigation involving research analyst independence, certain
IPO allocation practices, Enron and other related litigation. This is in
addition to the pre-tax charge of USD 150 million (CHF 234 million), or USD
124 million (CHF 193 million) after tax, for the previously announced
agreement in principle with various US regulators involving research analyst
independence and the allocation of IPO shares to executive officers.

The Group also said that the previously announced after-tax loss of USD 250
million (CHF 390 million) connected with the sale of Credit Suisse First
Boston's Pershing unit to The Bank of New York will be booked in the fourth
quarter of 2002. Pershing will be sold for USD 2 billion (approximately CHF
2.8 billion) in cash, together with the repayment of a USD 480 million (CHF
667 million) subordinated loan and an additional contingent payment of up to
USD 50 million (CHF 70 million) based on future performance, and the sale is
expected to close in the first half of 2003.

Based on preliminary results, Credit Suisse Group expects to report a net
loss for the fourth quarter of 2002 of approximately CHF 1.0 billion and a
net loss of approximately CHF 3.4 billion for the full year of 2002.

In addition to the charges for the regulatory agreement and litigation and
the after-tax loss in connection with the sale of Pershing, the Group's
fourth quarter 2002 net loss of approximately CHF 1.0 billion will include a
restructuring charge of approximately CHF 72 million associated with the
previously announced realignment of the onshore financial services
activities in Europe; an expense of approximately USD 200 million (CHF 314
million), or USD 145 million (CHF 226 million) after tax, in connection with
the previously announced USD 500 million (CHF 780 million) cost reduction
program at Credit Suisse First Boston; and a cumulative positive effect from
prior years of approximately CHF 520 million for the Group from the
previously announced change in accounting policy to allow for capitalization
of deferred tax assets with respect to net operating losses.

Credit Suisse Group said that capital ratios at year-end are expected to be
in line with those at the end of the third quarter of 2002.

Co-Chief Executive Officer John J. Mack said: "While we expect challenging
market conditions to continue throughout 2003, we are working to restore the
Group to profitability. We remain focused on building our core businesses,
which continue to hold key market leadership positions. At the same time, we
are pursuing a range of aggressive measures across the Group to continue
adapting our cost structure to this tough business environment, having
already eliminated USD 3 billion (approximately CHF 4.7 billion) in costs at
Credit Suisse First Boston since fall 2001. Further, the recent settlement
in principle with the US regulators allows us to put this matter behind us."

Co-Chief Executive Officer Oswald J. Grübel stated: "I am pleased that all
of Credit Suisse Financial Services' businesses were profitable in the
fourth quarter, especially Winterthur. Our entire management team across the
Group is working to accelerate significant improvements in bottom-line
performance."

Credit Suisse Financial Services
Business unit Credit Suisse Financial Services expects to report a net
profit of approximately CHF 650 million for the fourth quarter of 2002 and a
net loss of approximately CHF 220 million for the full year of 2002. The
Private Banking segment is expected to post slightly higher fourth quarter
results compared to the previous quarter. The Corporate and Retail Banking
segment is expected to report lower fourth quarter results, compared with
the third quarter, due to lower commission income and higher project costs.
Both the Life & Pensions segment and the non-life Insurance segment are
expected to return to profitability in the fourth quarter of 2002, posting
better than expected investment results.

Credit Suisse First Boston
Business unit Credit Suisse First Boston expects to report a net loss of
approximately USD 790 million (CHF 1.2 billion) for the fourth quarter of
2002 and a net loss of approximately USD 1.2 billion (CHF 1.8 billion) for
the full year of 2002. The fourth quarter net loss reflects the charges for
the regulatory agreement and litigation, the after-tax loss in connection
with the sale of Pershing, and the charge in connection with the cost
reduction program, as discussed above, all totalling approximately USD 810
million (CHF 1.3 billion) after tax. Excluding these items as well as
excluding the amortization of acquired intangible assets and goodwill
totalling approximately USD 172 million (CHF 254 million) after tax, and
excluding the cumulative positive effect from prior years of the accounting
change for income taxes of approximately USD 163 million (CHF 254 million),
Credit Suisse First Boston would expect to have a small net operating profit
for the fourth quarter and for the full year 2002. Fourth quarter revenues
and expenses are expected to be below third quarter levels. Credit
provisions for impaired loans also declined in the fourth quarter, compared
to the third quarter of 2002.

The legal reserve charge relating to private litigation represents
management's current estimate after consultation with counsel of the
probable aggregate costs associated with such matters. Credit Suisse First
Boston believes that it has substantial defenses in these private litigation
matters, which are at an early stage. Given that it is difficult to predict
the outcome of these matters, where claimants seek large or indeterminate
damages or where the cases present novel theories or involve a large number
of parties, Credit Suisse First Boston cannot state with confidence what the
timing or eventual outcome will actually be. The legal reserve may be
subject to revision in the future.

Detailed fourth quarter and full year 2002 results will be announced on
February 25, 2003.

Credit Suisse Group
Credit Suisse Group is a leading global financial services company
headquartered in Zurich. The business unit Credit Suisse Financial Services
provides private clients and small and medium-sized companies with private
banking and financial advisory services, banking products, and pension and
insurance solutions from Winterthur. The business unit Credit Suisse First
Boston, an investment bank, serves global institutional, corporate,
government and individual clients in its role as a financial intermediary.
Credit Suisse Group's registered shares (CSGN) are listed in Switzerland and
Frankfurt, and in the form of American Depositary Shares (CSR) in New York.
The Group employs around 80,000 staff worldwide. As of September 30, 2002,
it reported assets under management of CHF 1,221.8 billion.

CONTACT:  CREDIT SUISSE GROUP
          Investor Relations Telephone
          Phone: +41 1 333 4570



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


BAE SYSTEMS: Denies Speculations of Merger Talks with Boeing
------------------------------------------------------------
Defense company BAE Systems denied it had started renewing talks with US
rival Boeing about a possible alliance that could result to a GBP20 billion
merger.

The British company, though, admitted it intends to find a North American
merger partner that would secure its long-term future, says The Scotsman.

"We see a future in which there will be only two or three major players in
the aerospace and defense industries," a BAE spokesman said. "Each will have
an American component and we fully intend to be one of them.

"But we have no intention of commenting on talks which may or may not be
taking place," he added.

It is believed that the two parties had entered into discussions five months
ago.  But talks were put on hold after BAE issued a profit warning in
December.

BAE, which is seeking to bag a contract for two new UK aircraft carriers,
also rejected reports that the Ministry of Defense had recommended the
awarding of the contracts for building Nimrod aircraft and Astute submarines
to French rival Thales.

It is known that the government had refused to shoulder potential losses of
up to GBP1 billion on previous deals over Nimrod and the submarines with
BAE.

The government's comment that BAE is no longer a British company seemed to
indicate it would help the company secure the contract.

A previous report of The Scotsman said, while BAE's belief that its
"Britishness" is an edge in the battle, Paris-based Thales is supported by
the assertion of equal treatment under European Union rules.


CABLE & WIRELESS: Sells US e-Messaging Solution to Xpedite
----------------------------------------------------------
Cable & Wireless announced Monday that it has entered into a definitive
agreement to sell certain assets of its U.S. e-Messaging Solution business
to Xpedite Systems, Inc. for U.S. USd11 million in cash (a USD6 million
immediate payment, with the balance of USD5 million payable over four
years). In addition, Xpedite will pay Cable & Wireless up to approximately
$1 million for transition support and services over the next 12 months.

This disposal is a further step in the restructuring of Cable & Wireless'
U.S. business, which is focusing on enterprise customers and the provision
of Internet protocol and hosting services. It is in line with Cable &
Wireless' statements of May and November 2002 regarding the restructuring of
its business in the U.S.

CONTACT:  Investor Relations
          Samantha Ashworth
          Phone: +44(0) 207 315 4460
          Caroline Stewart
          Phone: +44(0) 207 315 6225
          Virginia Porter (US)
          Phone: +1 646 735 4211


MYTRAVEL GROUP: Cresta Attracts 20 Potential Acquirers
------------------------------------------------------
Mytravel's short-break business, Cresta, has attracted about 20 bidders,
says a spokesman from the troubled holiday group, according to AFX.

MyTravel, formerly Airtours, is selling non-core businesses after issuing
profit warnings due to the slump in holiday bookings and a series of
financing gap.  The company has hired Deutsche Bank to advise it on the sale
of the GBP40-million (US$65 million) business.

The group did not identify potential bidders.  The spokesman also refused to
reveal the estimated proceeds the company aims to raise.

According to sources privy to the matter, the group has communicated with
these interested buyers which will soon begin a due diligence audit of the
business.

Lastminute.com and private-equity firm H-G Capital Ltd. were earlier
reported to be interested in the bidding.  The group, however, refused to
issue comments on Lastminute.com's plan.  No one at Lastminute.com was also
available for comment, says the report.

The group is not following a strict timetable, one source said, adding that
it is to push the disposal process "as long as it takes until (MyTravel)
gets the right price."

CONTACT:  MYTRAVEL GROUP PLC
          Parkway One, Parkway Business Centre, 300 Princess Rd.
          Manchester M14 7QU, United Kingdom
          Phone: +44-1-61 23-20-066
          Fax: +44-1-61 23-26-524
          Home Page: http://www.airtours.com

          DEUTSCHE BANK AG
          Investor Relations
          31 West 52nd Street
          29th Floor
          New York, NY 10019-6160
          USA

          Phone: +1-212-469-8000 (Switchboard)
          Phone: +1-212-469-7125 (Investor Relations)
          Fax: +1-212-469-7322
          E-mail: db.ir@db.com


TXU EUROPE: Powergen Plans to Integrate Retail Business
-------------------------------------------------------
Following EC approval in December for the acquisition of TXU's retail
business, Powergen is announcing details of its integration plans.

Having completed a review of its retail business activities and locations,
Powergen has decided to consolidate its business on sites in the East
Midlands, where Powergen already has a major presence, and in Ipswich, at a
location yet to be agreed.

This will enable Powergen's retail business to eliminate duplication and to
ensure that high levels of business efficiency and customer service are
maintained.

There are currently 936 employees based in Ipswich, with numbers expected to
reduce to 250 over the coming year.

This decision also means the phased closure of three TXU retail operations
at Rayleigh, Bolton and London, affecting 275 employees.

Powergen will be consulting with employees and, where appropriate, employees
will be encouraged to apply for positions within Powergen's new retail
structure. In all cases, support and career counseling will be provided. It
is hoped that all redundancies will be achieved on a voluntary basis.

Nick Horler, managing director of Powergen retail, commented: "Powergen has
moved quickly to provide employees with clarity as soon as possible. I know
this has not been an easy time for everyone and we will, of course, offer
them as much support as we can to help employees find suitable positions.

"Powergen is now one of the UK's leading energy companies but we will remain
conscious of our commitment to the regions which have helped us achieve
this."






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 Laedevee Gonzales, Editors.

Copyright 2003.  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
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Information contained herein is obtained from sources believed to be
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