---

            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, June 4, 2003, Vol. 4, No. 108


                              Headlines

* A U S T R I A *

KOMMUNALKREDIT AUSTRIA: Financial Strength Rating Up to B-
PLAUT AG: Chief Executive Bouten Leaves Plaut Consulting Group

* E S T O N I A *

AS KLEMENTI: Increases Net Loss to EEK9.1 MM in First Quarter
AS KLEMENTI: Reveals Decisions Made by Shareholders at EGM
AS KLEMENTI: Plans to Implement Downsizing During Restructuring

* F I N L A N D *

FINNAIR OYJ: Kuopio And Jyvaskyla Ground Operations to Partners

* F R A N C E *

VIVENDI UNIVERSAL: Up to 100 Markets Involved in Lagardere Deal
VIVENDI UNIVERSAL: Enters Agreement to Sell U.S. Retail Chain

* G E R M A N Y *

HVB GROUP: ING Says It Is Not Interested in Buying Norisbank
IKB DEUTSCHE: Ratings Placed Under Review for Possible Upgrade
LAMBDA PHYSIK: Withdraws Sales and Earnings Forecast for FY 2003
MANNHEIMER AG: Gerling Still Undecided Whether to Support Rescue
MANNHEIMER AG: Widens Loss to EUR63.5 Million in First Quarter
MUNICH RE: Fitch Says Ratings Remains on Negative Outlook

* H U N G A R Y *

EST.TAXI: To Shut Business After Less than Two Years of Operation

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

BAAN N.V.: Invensys Sells Baan to Two U.S. Equity Firms
JOMED N.V.: Sells Coronary and Peripheral Interventional Ops
LAURUS N.V.: Five Super De Boer Supermarkets to Be Sold to Rival
SNS BANK: Outlook on Ratings Changed to Positive From Stable

* N O R W A Y *

TOU BRYGGERI: Ringnes Expected to Close Brewery in Stavanger

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

BANQUE CANTONALE: Receives Reprimand From SWX Swiss Exchange
SWISSAIR: Judge Okays Transport Company's Debt Restructuring

* U N I T E D   K I N G D O M *

AMULET GROUP: Accident Group Under Investigation Over Fraud
AUSTIN REED: Grandson of Founder Withdrew Intention to Bid
BRITISH AIRWAYS: Sings Agreement to Unload DBA to Intro
BULLOUGH PLC: Directors Recommend Montpellier's Increased Offer
CABLE & WIRELESS: Divests Bulk of C&W Italia to Consortium
CORDIANT COMMUNICATIONS: Two Top Executives to Benefit on Sale
EDINBURGH FUND: Announces Sale of Private Client Subsidiary
EMI GROUP: Advises Public Regarding Change of Office Address
INVENSYS PLC: Sells Dutch Subsidiary Baan for US$135 Million
NETTEC PLC: Completion of the Sale of Nettec Solutions Limited
PIZZAEXPRESS PLC: Slow Shareholder Response Threatens Takeover
STOLT-NIELSEN S.A.: Anticipates Reporting a Loss in 2003
* Cadwalader Names Anthony Davis Special Counsel in London


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


KOMMUNALKREDIT AUSTRIA: Financial Strength Rating Up to B-
----------------------------------------------------------
Kommunalkredit Austria AG's success in cross-selling a wider
range of products led Moody's Investors Service to upgrade to B-
from C+ the financial strength rating of Austria's specialized
public-sector lender.  The positive development particularly
refers to cross-selling of capital market instruments to local
authorities.

The rating action also reflects Kommunalkredit Austria's growing
franchise in Austria, the rating agency said.

Moody's considers in the action its expectation that the
institution is able to continue growing its business and
diversifying its earnings without taking undue risks.
Kommunalkredit Austria's risk profile is extremely low, the
rating agency added.

Although relatively small, Kommunalkredit Austria has established
a strong position in its domestic market and is developing
successfully in niches in the European market.

Kommunalkredit Austria's Aa3 debt and deposit ratings, meanwhile,
are maintained with a stable outlook.

Kommunalkredit Austria AG, headquartered in Vienna, Austria, had
assets of EUR 7.4 billion at the end of December 2002. It is
owned by Investkredit Bank AG (50.1%) and Dexia (49.9).


PLAUT AG: Chief Executive Bouten Leaves Plaut Consulting Group
--------------------------------------------------------------
Plaut AG (Securities Code Number 918 703) and its Supervisory
Board announced ad-hoc that Toon Bouten, CEO and Chairman of the
Executive Board, will leave the company by mutual agreement,
effective immediately. It was agreed to maintain silence about
the reasons of his departure. Toon Bouten will remain available
to the Plaut group in a consultative capacity. Until the
appointment of a successor, the Supervisory Board has delegated
its Deputy Chairman, Mr Eberhard Lind, to take over this
function. At present, his Supervisory Board mandate is therefore
resting.

About Plaut AG
Customers in over 16 countries benefit from Plaut's comprehensive
portfolio in management consulting with business process focus
and IT & hosting solutions, based on Plaut's industry knowledge
in manufacturing and CPG/retail and services. On the basis of the
Plaut Methodology in controlling and decades of success in
systems integration, in particular in SAP, Plaut has provided
tangible economic value since 1946. Plaut AG, Salzburg, has been
listed in the General Standard segment of Frankfurt stock
exchange since January 2, 2003 (PUT; SCN 918 703, ISIN
AT0000954359). The company, trading on Frankfurt's "Neuer Markt"
from 1999 to 2002, generated revenues of approximately EUR 216
million with 1,366 employees by the end of 2002.

Please find further information about the Plaut group at
http://www.plaut.com

                     *****

Plaut AG recorded consolidated earnings of -EUR33.9 million in
2002, down from -EUR25.3 million of last year due to
extraordinary restructuring costs worth EUR7.1 million,
extraordinary one-time charges of EUR 10.4 million, as well as
reserves and provisions for discontinued operations of EUR 3.2
million.

CONTACT:  PLAUT AKTIENGESELLSCHAFT
          Sven Kielgas
          Chief Marketing & Investor Relations Officer
          Moserstrasse 33a
          A-5020 Salzburg
          Phone: +43 (662) 4092-0
          Fax: +43 (662) 4092-59
          E-mail: Sven.Kielgas@Plaut.at


=============
E S T O N I A
=============


AS KLEMENTI: Increases Net Loss to EEK9.1 MM in First Quarter
-------------------------------------------------------------
Financial Results, Q1 2003

The unaudited consolidated group net sales of AS Klementi in the
first quarter of 2003 were EEK 31.8m (EUR 2.0m) and net loss
amounted to EEK 9.1m (EUR 0.6m).

In the same period of the previous year, the net sales were EEK
32.4m (EUR 2.1m) and net loss EEK 4.6m (EUR 0.3m).
As of 31 March 2003, the group employed 564 people.

During the year, the number of the employees decreased by
11.5%, i.e. by 73 persons.

¯ SALES ANALYSIS
Net sales of the first quarter of 2003 met the expectations.
The sales breakdown according to the activities in the first
quarter was as follows:

NET SALES           2003    2002   2003   2002      y-o-y
                                                   growth
                    EEKm    EEKm   EURm   EURm      03/02
Apparel sales       25.9    21.1    1.7    1.4      22.5%
Subcontracting       5.9    11.3    0.3    0.7     -47.3%
and other sale
TOTAL               31.8    32.4    2.0    2.1      -1.8%

Compared to the same period of the previous year, the structure
of the sales underwent significant changes. The share of apparel
sales increased to 81.3% (65.2% in 2002). The greatest increase,
by 2.2 times, i.e. EEK 5.6m (EUR 0.4m) occurred in the wholesale
of apparel in the Nordic countries.

The retail share in the apparel sales was 50% in the first
quarter of 2003.

Compared to the same period of the previous year, the sales per
square meter increased by 4%.

This year, the company plans to acquire 100% of the retail
company SIA Vision.

SIA Vision rents two sales premises in Riga and has a long
history of selling Klementi products. Currently, AS Klementi has
no participating interest in the company and the sales of these
stores are not therefore reflected in the retail sale results.

The decrease in the share of subcontracting was caused by the
company's increased need to put an additional load on
manufacturing by producing new collections under its own
trademarks. Thus, the decrease in the work in progress and
finished goods reserves of the company remained less significant
in the first quarter of 2003 than in the previous year, and
revenue increased by 11.5%.

The subcontracting and other sales in the first quarter of 2002
included revenue from P.T.A. Group OY in amount EEK 6.0 m.

PROFIT ANALYSIS
Net loss in the first quarter of 2003 amounted to EEK 9.1m (EUR
0.6m). The net result involved one-off expenditures in the amount
of EEK 2.5m (EUR 0.16m).

Loss from ordinary business activities was caused by a lower
profitability in retail.  In January and February retail sales
dominated the collections from the previous periods with a lower
mark-ups. During the first quarter of 2003, two inefficient shops
were closed down and work was continued on the development of the
new retail concept. In May this year, two new stores in
accordance to the new concept were opened in Tallinn (Kristiine
Centre) and Riga (Origo Centre).

The one-off factors affecting the activities included the
following.

Since the beginning of this year, the principle employed for the
calculation of the cost price (warehouse price) of the company's
own production has become more conservative.

The cost price of products no longer includes production
development costs.  The negative impact of the changes in the
calculation principle on the results of the first quarter of 2003
amounted to EEK 1.0m (EUR 0.07m).

The increase in the share of the products manufactured this year
will reduce the impact of the changes in the calculation
principle on the financial results.

The optimization of the demand for workforce, commenced past
year, was continued in the first quarter of 2003. The redundancy
costs amounted to EEK 0.4m (EUR 0.03m) in the period.

Additional loss of EEK 1.1m was accounted from last year's
wholesale in Latvia and Lithuania.

BALANCE SHEET ANALYSIS AND RATIOS

The consolidated balance sheet total of AS Klementi was EEK
115.0m (EUR 7.4m) as of 31.03.2003.

In the assets of the balance sheet, the stocks decreased by
EEK 4.8m (EUR 0.3m).

The inventory turnover was 4.8 in the first quarter of 2003,
marking an improvement by 1.5 points over the year (3.3 in 2002).

The key financial ratios of AS Klementi group were:

                                         1Q 2003    1Q 2002

year-over-year sales growth             -1.8%         25.3%

apparel sales share in total sales      81.3%         65.2%

inventory turnover (adjusted to year)    4.8           3.3
[net sales/average inventory]

liquidity ratio                          0.35          0.43
[(current assets - inventories)/current liabilities]

current ratio                            0.79          1.08
[current assets/current liabilities]

EBIT margin                            -24.8%        -10.6%

[operating profit/net turnover]

net margin                             -28.7%        -14.1%
[net profit/net turnover]


BALANCE SHEET, consolidated, unaudited


                   31.03.03   31.12.02    31.03.03   31.12.02
                   EEK '000   EEK '000    EUR '000   EUR '000
Cash and bank          1,696     4,485       108        287
Customer              14,934    12,537       955        801
receivables
Other receivables        477       868        30         55
and accrued income
Prepaid expenses       2,477     2,896       158        185
Inventories           24,211    29,002     1,548      1,854

CURRENT ASSETS        43,795    49,788     2,799      3,182

Long-term              2,587     2,578       165        165
financial assets
Tangible assets       62,762    64,649     4,011      4,132
Intangible assets      5,880     5,771       376        368
FIXED ASSETS          71,229    72,998     4,552      4,665
ASSETS               115,024   122,786     7,351      7,847
Debt obligations      38,668    34,792     2,471      2,223
Customer                  53       952         3         61
prepayments
Accounts payable       9,120    10,867       583        694
Taxes payable          4,263     3,875       272        247
Accrued expenses       3,628     3,905       232        250
Other unearned             0        12         0          1
income
Short-term                 9        12         1          1
provisions
CURRENT               55,741    54,415     3,562      3,477
LIABILITIES
Long-term debt        27,494    27,467     1,757      1,755
Other long-term        4,928     4,928       315        315
payables
Provisions for            68        68         4          4
liabilities and
charges
LONG-TERM             32,490    32,463      2,076     2,074
LIABILITIES
TOTAL LIABILITIES     88,231    86,878     5,638      5,551
Share capital         13,219    13,219       845        845
Share premium         30,863    30,863     1,973      1,973
Revaluation           15,578    15,578       996        996
reserve
Other reserves         1,046     1,046        67         67
Retained earnings    -24,798     7,083    -1,585        453
Profit for the        -9,115   -31,881      -583     -2,038
financial year
OWNERS' EQUITY        26,793    35,908     1,713      2,296
LIABILITIES AND      115,024   122,786     7,351      7,847
OWNERS' EQUITY

INCOME STATEMENT, consolidated, unaudited

                   Q1 2003    Q1 2002    Q1 2003    Q1 2002
                  EEK '000   EEK '000   EUR '000   EUR '000
Net sales           31,811      32,388     2,033     2,070
Other revenue          326         429        21        27
Change in           -2,761      -6,464      -176      -413
inventories
TOTAL REVENUE       29,376      26,353     1,878     1,684
Goods, raw          12,870       5,877       823       376
material,
materials
Misc. operating      6,924       6,444       443       412
expenses
Personnel           14,718      14,892       940       952
expenses
Depreciation         1,835       1,641       117       105
Other expenses         904         931        58        59
TOTAL EXPENSES      37,251      29,785     2,381     1,904
OPERATING PROFIT   - 7,875      -3,432      -503      -220

Interest            -1,253      -1,219       -80       -78
expenses
Foreign exchange       -39           8        -3         1
loss
Other financial         52          66         3         4
income and
expenses
NET FINANCIAL       -1,240      -1,145       -80       -73
ITEMS
NET PROFIT          -9,115      -4,577      -583      -293
Basic earnings       -6.89       -1.30     -0.44     -0.08
per share
(EEK)
Diluted earnings     -6.63       -1.22     -0.42     -0.08
per share (EEK)

CONTACT:  AS KLEMENTI
          Toomas Leis, Chief Executive Officer
          Phone: +372 6 710 700


AS KLEMENTI: Reveals Decisions Made by Shareholders at EGM
----------------------------------------------------------
The Public Limited Company Klementi, registered on
23.12.1996 in Tallinn City Court registration department under
the registry code 10175491, at the address Akadeemia tee 33,
Tallinn, the extraordinary general meeting of shareholders was
held in Tallinn, Akadeemia tee 33, started at 16.00 and finished
at 16.12.

The meeting was chaired by Andres Ratsepp and the minutes were
taken by Toomas Leis.

The chairman of the Meeting made it public that 6 shareholders
were present, whose shares gave a total of 1,139,534 votes, which
form 82.61% of votes determined by shares and thus the Meeting
had a quorum.

Decision of the Meeting:
-- It was decided to increase the share capital of the public
limited company through ancillary monetary contribution by EEK
5,750,000 (five million seven hundred and fifty thousand), by
issuing 575,000 (five hundred and seventy five thousand) new A-
shares with a nominal value of EEK 10 (ten) per share.

-- The issue price of the shares is EEK 27.50 (twenty seven
kroons and fifty cents) per share, thus the issue premium is EEK
17.50 (seventeen kroons and fifty cents) per share.

-- The share capital is EEK 18,968,750 (eighteen million nine
hundred and sixty eight thousand seven hundred and fifty).

-- The shares to be issued yield the right to dividends starting
with the financial year of the increase of the share capital.

-  The subscription period of the new shares starts at 9.00a.m.
on 02.06.2003 and lasts until 5.00p.m. on 10.06.2003.

-  It was decided to preclude the pre-emptive subscription right
of the new shares with the objective of ensuring the involvement
of new shareholders and improving the liquidity of shares on the
secondary market.

-  It was decided that first the applications of small investors
will be satisfied, i.e. the applications of investors who
subscribed 1,000 (thousand) to 10,000 (ten thousand) shares and
next the applications of all other investors who had subscribed
shares will be satisfied.

-- The subscription of shares is conducted through the account
operator banks of the Central Depository for Securities in
accordance with the rules and regulation of the Estonian Central
Depository for Securities. The subscribed shares have to be paid
for at the subscription and the payment has to be made in
monetary contribution to a special account opened by the Estonian
Central Depository for Securities.

-- Should it transpire that the shares have been subscribed over
the planned increase of share capital, the supervisory board of
the public limited company will decide on the distribution of
shares between the subscribers.

-- The public limited company enters into an agreement with AS
Alta Capital to guarantee the issue subscription, according to
which the issue underwriter undertakes to subscribe and buy the
shares that remained unsubscribed during the subscription period
at the issue price (i.e. EEK 27.50 per share).

CONTACT:  AS KLEMENTI
          Thomas Leis, Chief Executive Officer
          Phone: +372 6 710 700


AS KLEMENTI: Plans to Implement Downsizing During Restructuring
---------------------------------------------------------------
AS Klementi continues to restructure to increase the efficiency
of the company and achieve compliance with the competition
conditions on the market.

When the company was taken over by the new majority shareholder
Alta Capital, the number of the employees in the group amounted
to 632. During the past nine months, that figure has dropped by
9%. By the end of the third quarter of 2003, the number of the
people employed by the group is expected to be 506, which will be
by 20% less than a year ago.

The downsizing affects all the profit centers and is aimed, above
all, at reducing the overhead costs of the company.

During the year, the management of the company hopes to save EEK
9-11m.

During the restructuring, Klementi has managed to decrease the
share of simple subcontracting and at the same time to
significantly increase the turnover of its own trademarks.

Since the 2003 autumn season, women's clothes have been sold
under the trademarks of Klementi on the following markets:
Estonia, Sweden, Finland, Latvia, Russia and Lithuania.

In May 2003, the company opened successfully two shops operating
under the trademark of Klementi and employing the new concept in
Tallinn and Riga. The shops are restructured gradually and the
process is planned to be completed by the end of 2004.

"During the restructuring, we have fixed the strategic aims of
Klementi, that is, to focus on the two main trademarks PTA and
Klementi and to expand our markets in the Nordic countries and
Russia.

At the same time, it is important to balance the structure of
expenditure and the revenue base of the company fast and
vigorously," said the manager of AS Klementi Toomas Leis.

AS Klementi develops the following trademarks of women's clothes:
PTA, Klementi, MasterCoat, Piretta and Mallimari. The
consolidated net turnover of AS Klementi was EEK 133.3m in 2002.
AS Klementi has its own shop chain currently comprising 15 shops
in the Baltic countries; in addition, over 200 shops in
Scandinavia sell women's clothes under the trademarks of AS
Klementi.

CONTACT:  KLEMENTI
          Toomas Leis, Chief Executive Officer
          Phone: +372 6 710 700


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


FINNAIR OYJ: Kuopio And Jyvaskyla Ground Operations to Partners
---------------------------------------------------------------
Finnair Group extending partnership co-operation at airports in
Kuopio and Jyvaskyla. Finnair Plc and Finnair Cargo have agreed
on a transfer of business for Jyvaskyla ground services and cargo
operations with Keski-Suomen Lentokuormaus Oy. Keski-Suomen
Lentokuormaus Oy is already a partner for loading operations in
Jyvaskyla.

Customer service functions in Kuopio ground services will go to
RTG Ready to Go Oy. Loading and cargo operations in Kuopio will
be taken over by Scanperri Oy. RTG Ready to Go Oy and Scanperri
Oy are already Finnair's partners in Joensuu. RTG Ready to Go
also has operations in Kajaani and Ivalo airports. The transfers
of business for Kupio and Jyvaskyla will take place June 6, 2003.

The extension of partnership co-operation at domestic airports
was already discussed in codetermination negotiations for the
entire Group and Finnair Cargo Oy which both ended on May 19.
Finnair organized briefings for staff in accordance with the Act
on Co-operation within Undertakings on June 2. The arrangement
affects two clerical employees and approximately 31 staff
members. Before the transfer of business, Finnair will offer
employees pension schemes in accordance with the model agreed on
in Finnair Group's codetermination negotiations, which ended May
19. Persons that come under this scheme will remain in Finnair's
employment and will not transfer to the new employer. The rest of
the personnel will transfer to the new company with their current
terms of employment.

The arrangement follows the Group's strategy, which is to focus
on core business. The aim is also to improve efficiency in
passenger, ground and cargo handling as a part of the Group's
current savings plan. The Group is looking into possibly
extending partnership agreements to other domestic airports in
the future. Service concepts will remain unchanged. There are no
plans for changes in service for either passengers or Finnair
Cargo customers.

CONTACT:  FINNAIR OYJ
          Head Office, Helsinki-Vantaa Airport
          Tietotie 11 A, 01053 FINNAIR
          Phone: +358 (0)9 818 81


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


VIVENDI UNIVERSAL: Up to 100 Markets Involved in Lagardere Deal
---------------------------------------------------------------
Brussels regulators discovered up to 100 markets where the sell-
off of Vivendi Universal's book business to Lagardere could be
considered anti-competitive.

Vivendi and Lagardere are involved in a transaction that would
give the latter some 60% of the market for book distribution in
France for EUR1.3 billion

According to insiders, the Brussels authorities arrived at the
figures of up to 100 markets by dividing them along product,
distribution and national lines.

It is understood the Commission has identified between 10 and 20
products, ranging from encyclopedias to paperbacks, where the
deal would give Lagardere's Hachette a large market share,
according to the Financial Times.

The large number of geographical and product markets implies that
the companies will have to present a complex package of
concessions to avoid a Brussels veto, according to the report.
Negotiations on this aspect are expected to begin on Thursday.

Brussels insiders believed Lagardere could use disposing the
market dictionaries, as this is one of the areas where Vivendi
has a large share.

The presence of Lagardere in countries where Vivendi Universal
also has outlets--France, Belgium, Luxembourg, and Spain--will
also be investigated, the report says.

Brussels earlier rejected the request of the French authorities
to have the examination in France due to the fact that Vivendi
Universal's brands are also read outside France.

But the market for schoolbooks, which is strictly regulated by
the government, was a prime candidate for a referral to France,
according to people close to the case.


VIVENDI UNIVERSAL: Enters Agreement to Sell U.S. Retail Chain
-------------------------------------------------------------
Vivendi Universal agreed to sell its retail chain, Spencer Gifts,
based in New Jersey, to a group of investors led by Gordon
Brothers Group LLC for an undisclosed amount.

The investors who purchased the U.S. retail chain include
Palladin Capital Group Inc. and New England Development, Gordon
Brothers said in a statement.  The operator of 700 stores had
more than US$400 million in sales last year, according to the
statement.

The sell-off is part of the world's second-biggest media
company's plan to dispose assets to focus on telecommunications
and cut debt below EUR11 billion this year from EUR12.3 billion
at the end of 2002.

Lionel Parisot, a CIC Securities analyst who rates Vivendi shares
``hold," affirmed the move.  He estimated the transaction to
raise tens of millions of euros based on Spencer's revenue
figure.

Vivendi inherited Spencer Gifts through its acquisition of
Seagram Co., then owner of Universal Studios and Universal Music
Group, in 2000. Spencer Gifts is part of Vivendi Universal
Entertainment, the U.S.-based film, television and recreation
unit of the French company.

Vivendi is also trying to sell the company's entertainment assets
under Chief Executive Jean-Rene Fourtou's program to sell EUR16
billion ($18.7 billion) worth of assets by the end of 2004.


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


HVB GROUP: ING Says It Is Not Interested in Buying Norisbank
------------------------------------------------------------
Dutch bancassurer ING ruled out the idea of bidding for
Norisbank, the consumer credit business of German bank
HypoVereinsbank, according to Reuters.

ING Chief Financial Officer Cees Maas told reporters in Berlin
where he was attending the annual International Monetary
Conference: "We're not in a buying mode in Germany."

HVB, which has incurred losses due to more than EUR2 billion bad
loan charges, is selling its profitable consumer credit arm to
help the company pick itself up.  The sale is expected to
generate EUR500 million (US$588 million).

The group is reported to have received offers from 10 overseas
and domestic rivals, which includes U.K. banks HSBC and Royal
Bank of Scotland.

Germany's Postbank, is also interested in the unit, and is the
only bank which had publicly declared an intention to bid.

Up to five bidders have been given access to its books, the
report says.

"It could take another few weeks before due diligence is
completed and HVB begins negotiations with one or more bidders,"
said one source.


IKB DEUTSCHE: Ratings Placed Under Review for Possible Upgrade
--------------------------------------------------------------
The ongoing solid financial performance of IKB Deutsche
Industriebank AG in a very challenging operating environment
could possibly raise its ratings, according to Moody's Investors
Service.

The rating agency said it placed on review for possible upgrade
the bank's A1 senior unsecured and A2 subordinated debt and
deposit ratings and the C+ financial strength rating.

The A3 rating for its preferred stock, which is issued through
Capital Raising GmbH, has also been placed on review for possible
upgrade.

Moody's said: "while IKB's wholesale banking activities are a key
determinant for a potentially higher risk profile, its very good
risk management coupled with a strong niche position with
improving and increasingly diversified profitability have
somewhat immunised IKB against the difficult German operating
environment."

The rating agency's review will focus on the extent to which IKB
can maintain its comparatively good asset quality, and on whether
IKB can continue to increase revenue diversification without
increasing its risk profile.

IKB is based in Duesseldorf, Germany, and as of December 31,
2002, had total assets of EUR 35.3bn and 1,425 employees.


LAMBDA PHYSIK: Withdraws Sales and Earnings Forecast for FY 2003
----------------------------------------------------------------
Lambda Physik AG withdraws the sales and earnings forecast for
Fiscal Year 2003 (Oct. 1, 2002 to Sept. 30, 2003). A new outlook
cannot be given at the current time. So far Lambda Physik had
expected sales of EUR 100 million and positive earnings.

The reason for the changed business outlook is besides the
continued difficult market environment worldwide especially the
economic weakness of the Asian market, which is negatively
impacting the industrial business. The impact of SARS has
contributed to this trend. In the lithography segment, the
continued weakness of the semiconductor industry has led to
postponed orders and delayed shipments of the latest technology
generation.

CONTACT:  LAMBDA PHYSIK AG
          Claudia Thome
          Hans-Bockler-Str. 12
          37079 Gottingen
          Germany
          Phone: +49 (0)551 6938-113
          Fax: +49 (0)551 6938-104
          E-mail: cthome@lambdaphysik.com
          Home Page: http://www.lambdaphysik.com


MANNHEIMER AG: Gerling Still Undecided Whether to Support Rescue
----------------------------------------------------------------
Gerling spokesman Christoph Groffy said the group is still
indecisive whether it would support or participate in the capital
increase program of Mannheimer.

Gerling owns less than 5% interest of the insurer.

German insurer Mannheimer warned in its first-quarter report its
"capital situation still requires need for action, otherwise the
survival of the group is threatened."

Mannheimer warned in its 2002 annual report that its life unit
would post a EUR250M net loss in 2003 and would have undisclosed
losses of EUR34 million if the German DAX ended 2003 around 2892
points, where it ended last year, and if the same German write-
down rules on capital investment don't change from last December.
Mannheimer also said its life unit would only break even if the
DAX rose to 5000.

It recently failed to pass the quarterly stress test demanded by
the German financial services authority, BAFin.

German reinsurer Munich Re, which owns 10% of the firm, on the
other hand, said it would support capital measures within its
quota if a sustainable long-term concept is in place.

Other insurers haven't yet said whether they would support a
capital hike measure, according to Dow Jones.

Insurers that also own less than 5% of Mannheimer include Swiss
Re Germany, GE Frankona Re, Nuernberger, Wuestenrot &
Wuerttembergische and Universa.


MANNHEIMER AG: Widens Loss to EUR63.5 Million in First Quarter
--------------------------------------------------------------
German insurer Mannheimer posted a EUR63.5 million net loss in
the first quarter after writedowns on equity investment of
EUR69.1 million at its life unit resulted to an investment loss
of EUR34.7 million.

The company posted a wider negative result for the quarter in
comparison to the EUR50 million net loss recorded for the full
year in 2002.

Loss from normal business operations was up to EUR64.2 million
from EUR44 million in the entire year of 2002; while that from
its life and health unit was down to EUR55.4 million in the first
three months of 2003 from EUR57.5 million in full-year 2000.

The life unit responsible for more than 81% of Mannheimer's
capital investment failed to pass the quarterly stress test
demanded by the German financial services authority, BAFin.  Its
trouble stems from late, high investment in the stock market,
which now requires large write-downs.

Mannheimer has postponed the annual general meeting to August
from June to have time to find a way to boost its equity capital.

On a positive note, the company's gross premium income rose by
2.9% to EUR255.5 million, from EUR248.3 million in the first
quarter of 2002.

CONTACT:  MANNHEIMER AG HOLDING
          Peter Swienczek, Public & Investor Relations
          Augustaanlage 66
          68165 Mannheim
          Phone: 0621.457-4151
          Fax: 0621.457-4363
          E-mail: pir@mannheimer.de


MUNICH RE: Fitch Says Ratings Remains on Negative Outlook
---------------------------------------------------------
Fitch Ratings, the international rating agency, said Munich
Reinsurance Company remained on Negative Outlook following
today's announcement of a EUR238 million loss for Q103. The
agency said that during the remainder of 2003, if earnings showed
little or no sign of improvement to a level commensurate with the
company's 'AA+' IFS rating, the rating would likely to be
lowered.

Fitch continues to closely monitor the group's capital position
following its significant decline during 2002, and also the
group's ability to report strong earnings during a period of
favorable market conditions. During 2003, the group's capital
position has been strengthened following the successful placement
of two subordinated debt issues totaling EUR3.4 billion. Although
the group's shareholders' equity decreased to EUR12.5bn from
EUR13.9bn during Q103, mainly as a result of declining capital
markets, Fitch understands that, following a recovery in
investment markets, shareholders' equity had grown by the end of
May 2003 to a level in excess of that reported for year-end 2002.
In addition, total capital would increase by a further EUR3.4bn
if the subordinated debt issues are taken into account.

Fitch continues to view the group's capital position as strong.
However, the agency is concerned that the group's future earnings
and capital position could be constrained by further investment
write-downs and by its strategic shareholdings and links to the
German economy, particularly in the banking sector.

Like many of its peers, Munich Re's non-life combined ratio
improved in Q103 to below 100%. The overall combined ratio of
96.8% compared favorably with 101.7% in Q102. Historically, the
group's combined ratio reported in Q1 has shown a deteriorating
trend during Q2 to Q4, however, Fitch expects the combined ratio
for the full 2003 calendar year to stay below 100%, assuming
normal loss incidence.

Ratings:

MUNICH REINSURANCE COMPANY: IFS and Long-term issuer ratings
'AA+'/Outlook Negative; 1% EUR1.15bn Exchangeable Bonds 2000/2005
'AA+'/Outlook Negative;

MUNICH RE FINANCE B.V., 6.75%, EUR3bn, subordinated bond
2003/2023 'AA-'('AA minus')/Outlook Negative; 7.625%, GBP300m,
subordinated bond 2003/2028 'AA-'('AA minus')/Outlook Negative;

ERGO INTERNATIONAL AG: 2.25% EUR345m Exchangeable Bond 2001/2006
'AA'/Outlook Negative; 0.75% EUR345m Exchangeable Bond 2001/2006
'AA'/Outlook Negative

CONTACTS:  Chris Waterman, London
           Phone: +44 (0)20 7417 6328
           Greg Carter, London
           Phone: +44 (0) 20 7417 6327
           Andrew Murray, London
           Phone: +44 (0)20 7417 4303.


=============
H U N G A R Y
=============


EST.TAXI: To Shut Business After Less than Two Years of Operation
-----------------------------------------------------------------
Cab company Est.Taxi decided to stop operation due to losses and
difficulties in the market less than two years after its owners,
media group Est Media Kft and holding company Wallis Rt,
established the operator in the fall of 2001.

"When establishing Est.Taxi, the owners' aim was to create a taxi
company that offered premium services," said Laszlo Bartucz,
managing director of Est.Taxi. "However, the past years proved
that on the current taxi market, running such an enterprise is
not viable."

Est.Taxi ventured to offer to the market a premium service of
using a fleet of 130 Citroen Xsara Picasso cars equipped with
air-conditioning, GPS, mobile phone chargers and laptop
connections.  But the special services "cost more than the
planned amount in the long term," according to the company.

Press reports said Est.Taxi has been generating monthly losses of
up to HUF 20 million (EUR81,300).

Executives at rival taxi companies, however, blamed other reasons
such as the lack of careful planning of the sustainability of its
project, and the smallness of their fleet.

Bartucz, though, insisted that major discounts were not a prime
reason behind the shutdown.

Est.Taxi's management is currently considering options, including
selling the company to a professional investor.

"We expect a final decision to be made in the next few weeks,"
the company said in a statement.


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


BAAN N.V.: Invensys Sells Baan to Two U.S. Equity Firms
-------------------------------------------------------
Group intends to combine Baan with SSA Global Technologies

Baan, the leading provider of industry-defining enterprise
application solutions for industrial enterprises and part of
Invensys plc, announced recently that Invensys plc has agreed to
sell the company to an investment group consisting of Cerberus
Capital Management, L.P. and General Atlantic Partners, LLC, two
of the world's leading private investment firms. Backed by nearly
USD billion in investment capital, the investment group plans to
employ a growth oriented, long-term strategy to the Baan
business.

Over the next several months the group, which also owns SSA
Global Technologies, intends to combine Baan with SSA GT. SSA GT
is a leading provider of enterprise solutions for process
manufacturing, discrete manufacturing, consumer, services and
public companies worldwide. With nearly $ 600m in combined
revenues, of which Dollar 160m represents license fees for the
combined products, and in excess of 16,500 customers the new
company will have the world's largest installed base in
manufacturing. Key to the growth strategy will be the total iBaan
suite and the complete set of product offerings of the combined
organization. Baan will operate globally as the Baan division of
the combined entity with dedicated sales, marketing, development,
consulting, and support.

Over the past three years Baan has made significant investment in
its solution offerings including its next generation Enterprise
Backbone code-named 'Gemini' and its innovative integration
platform, OpenWorldX. Gemini will be launched this fall at Baan
World User Conferences in the United States and Europe, with a
launch in Asia Pacific planned for the first-half of 2004.
Additionally, Baan gained 52 new name customers last quarter
while also achieving record levels of customer satisfaction, a
fact confirmed by research organization Dataquest-IDC.

"The strength of Baan's solutions, loyal customer base, and
dedicated employees has provided a foundation for an accelerated
investment decision by Cerberus and General Atlantic," said
Laurens van der Tang, President of Baan. "We have established a
customer-driven company that is well positioned for growth as we
begin the second 25 years of Baan."

"Adding Baan to our investment portfolio is an opportunity for
General Atlantic to provide strategic value", said William E.
Ford, Partner, General Atlantic Partners. "Having had previous
experience with Baan we are excited about the combination of Baan
and SSA and the new company's potential to assume a market
leadership position."

Baan also announces that the following individuals will join the
Baan advisory board; Peter Korteweg - former CEO of Rebeco Group
NV and former chief civil servant of the Netherlands Finance
Ministry and advisor to Cerberus Capital Management, and Loek van
den Boog - Chairman of Meta4, former Sr. Vice President EMEA for
Oracle and special advisor to General Atlantic Partners.

"Baan has invested a lot in developing the next generation ERP
systems with a current architecture and richer functionality.
This will provide a viable migration path to many of SSA GT's
other customers as they look to upgrade their ERP systems over
the next 2-3 years", said John Bermudez of AMR Research.

Mike Webb, Sr. VP of Information Technology at Flextronics had
this to say about the announcement, "The financial backing
brought by Cerberus and General Atlantic, the improved scale of a
combined Baan and SSA, as well as Baan's industry defining
Enterprise Application Solutions should continue to serve
Flextronics and Baan's other customers extremely well."

About Baan:
For more than 25 years, industrial enterprises with complex make,
move, and service requirements have relied on Baan to help them
improve their business performance. Baan is focused on delivering
industry-defining enterprise application solutions and services
to discrete manufacturers in the industrial machinery and
equipment, electronics, automotive, and aerospace and defense
sectors. With its unrivalled domain expertise in targeted
vertical industries, Baan makes it possible for customers to
achieve lowest total cost of ownership and fastest time-to-value
from their enterprise solutions. Baan has 6,500 customers
worldwide and installations at more than 21,000 customer sites
and is part of the Development Division of Invensys plc.  For
more information, please visit http://www.baan.com

About General Atlantic Partners, LLC

General Atlantic Partners, LLC, is the world's leading private
equity investment firm focused exclusively on investing in
information technology, process outsourcing and communications
businesses globally. The firm was founded in 1980 and has over
billion in capital under management. General Atlantic has
invested in over 120 IT companies and has current holdings in
over 60 companies, of which almost one-third are based outside
the United States and which include Critical Path, Digital China,
Eclipsys, Exult, iSoft Group, IXOS Software AG, Liberata, Patni
Computer Systems, ProxyMed, SESA, SRA International, Upromise,
Xchanging and Zagat. The firm is distinguished within the
investment community by its deep experience and expertise in
information technology, its global perspective and worldwide
presence, its long-term approach to investments, and its
commitment to provide sustained strategic assistance for its
portfolio companies. General Atlantic has about 80+ professionals
among its 150 employees worldwide with offices in Greenwich, New
York, Palo Alto, Reston, London, D�sseldorf, Singapore, Tokyo,
Mumbai, Hong Kong, and Sao Paulo. See http://www.gapartners.com
for additional information.

About Cerberus Capital Management, L.P.

Cerberus Capital Management, L.P. is a private investment firm
with committed capital of U.S. billion.

About Invensys plc

Invensys is a global leader in production technology. The group
helps customers improve productivity, performance and
profitability using innovative services and technologies and a
deep understanding of their industries and applications.

Invensys operates in more than 60 countries, with its
headquarters in London. For more information, visit
http://www.invensys.com


JOMED N.V.: Sells Coronary and Peripheral Interventional Ops
------------------------------------------------------------
JOMED announced on May 27, 2003 that it has signed an asset sale
agreement for the coronary and peripheral interventional business
of JOMED with a subsidiary of Abbott Laboratories. The purchase
agreement covers all products, intellectual property, equipment,
facilities and employees associated with the acquired business
owned by JOMED subsidiaries. Intravascular ultrasound technology
(IVUS), functional measurement (FM), cardiac surgery or joint
venture companies of JOMED are not a part of this transaction.

The transaction valued above EUR 80 million of which EUR 60
million will be paid in cash; it also includes the assumption of
certain liabilities, in excess of EUR 20 million. Additional
financial terms of the agreement are not disclosed. The
transaction is expected to be completed in the second quarter of
2003. The completion of the transaction is subject to certain
conditions, including governmental approvals.

JOMED's international infrastructure, which includes an
experienced and dedicated sales force, will market Abbott
Vascular Devices' current and future products. JOMED has strong
relationships with clinicians and institutions in more than 20
countries that will further enable Abbott to provide patients and
customers outside the United States with innovative vascular
products.

The trustees in the bankruptcy of JOMED N.V., Rutger J.
Schimmelpenninck and Matthieu Ph. Van Sint Truiden, will continue
their efforts to sell all of remaining JOMED assets.

About Abbott Vascular Devices
Abbott Vascular Devices, Abbott's cardiovascular device
franchise, headquartered in Redwood City, California, is a
medical technology pioneer that combines its entrepreneurial
spirit with Abbott's pharmaceutical heritage to deliver
specialized treatment options that dramatically improve the care
of people with cardiovascular disease. Abbott Vascular Devices
brings the best of these backgrounds together to develop unique
vessel closure, coronary stent, and peripheral and embolic
protection technologies that meet the specialized needs of
cardiovascular disease treatment. For more information, please
visit http://www.abbott.com/

CONTACT:  JOMED N.V.
          Jorgen Peterson, Acting Chief Executive Officer
          Phone: +46 42 490 6014

          Lars-Johan Cederbrant, Acting Chief Financial Officer
          Phone: +46 42 490 6048

          Christiaan Zijderveld
          Assistant to the bankruptcy trustees
          Phone: + 31 20 577 2366


LAURUS N.V.: Five Super De Boer Supermarkets to Be Sold to Rival
----------------------------------------------------------------
Netherland's second-largest supermarket operator Laurus N.V.,
which posted a net loss of EUR128 million for 2002, plans to sell
five supermarkets to Dutch rival Deen Supermarkten for an
undisclosed sum.

Just-food.com news agency, citing a report by the Dutch News
Digest, said the sale of the supermarkets that currently operate
under Laurus' Super De Boer brand will be completed at the end of
September.

The supermarkets are located in Alkmaar, Hoorn, Hoogkarspel,
Wognum and Schagen.

Laurus previously revealed that consumer sales from its Dutch
core activities dropped 6.4% to EUR1.425 billion for the first
quarter of 2003 compared with figures for 2002.  The company said
the overall Dutch food retail market is difficult compared with
2002.

It recently decided to abandon its Konmar brand, effectively
leaving rival Ahold's Albert Heijn stores alone in the premium
sector.

Laurus is the Netherlands' second-largest supermarket operator,
behind Dutch retail giant Royal Ahold, and operates more than
2,400 supermarkets at home and abroad under the names Edah,
Konmar, and Super De Boer.

CONTACT:  LAURUS N.V.
          Parallelweg 64, P.O. Box 175
          5201 AD Hertogenbosch, The Netherlands
          Phone: +31-73-622-3622
          Fax: +31-73622-3636
          Homepage: http://www.laurus.nl/bis/page-1-2.html


SNS BANK: Outlook on Ratings Changed to Positive From Stable
------------------------------------------------------------
The more focused business strategy of SNS Reaal Group, which owns
SNS Bank, prompted Moody's Investors Service changed to positive
from stable the outlook for the A2 and C+ ratings of the Dutch
retail mortgage lender.

The rating agency says the greater efficiency and improved
underlying financial performance improved risk profile and
steadied profitability.

The outlook on SNS Reaal Group's A3 rating, meanwhile, was
maintained due to the reduced profitability of the group
following losses, in 2002, at Hooge Huys, the group's insurance
subsidiary.

Moody's says that "Although Hooge Huys' solvability ratios have
remained robust, the losses in 2002, and the possibility that
conditions in insurance markets will remain challenging, may
constrain the financial flexibility of the Group."

SNS Bank is based in Utrecht and had assets of EUR35 billion at
the end of 2002. SNS Reaal Group is also based in Utrecht and had
consolidated assets of EUR46 billion at the end of 2002.


===========
N O R W A Y
===========


TOU BRYGGERI: Ringnes Expected to Close Brewery in Stavanger
------------------------------------------------------------
Brewing giant Ringnes will stop operations at Tou Bryggeri in
Stavanger, according to Norwegian news agency Aftenposten.

Aftenposten said reports from wire service NTB indicated that
management at Ringnes will propose at the company's next board
meeting that Tou Bryggeri be shut down.

Facilities at EC Dahl brewery in Trondheim and at Arendals
Bryggeri in Arendal would, however, continue.

Tou was opened in 1855, with annual production of 200,000 hl.  It
currently has 180 employees, 100 of which may lose their jobs if
the plan pushes through.

Ringnes, which itself is owned by industrial concern Orkla, would
not comment on the report.

The representative of employees of Orkla, Stein Stugu, however,
said workers would fight to keep Tou brewery open.

CONTACT:  Ringnes Tou Bryggeri
          (Group Carlsberg AS, Denmark)
          Postboks 68
          N-4033 Stavanger
          Phone:  +47 51 57 77 77
          Fax: +47 51 57 77 99


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


BANQUE CANTONALE: Receives Reprimand From SWX Swiss Exchange
------------------------------------------------------------
The SWX Swiss Exchange has issued a reprimand, together with
related publication, against Banque Cantonale Vaudoise, Lausanne,
for negligent violation of the provisions of the Listing Rules
governing ad hoc publicity. Following an information leak at BCV,
"Le Matin Dimanche" published the key points of BCV's
contemplated restructuring plan. After having learned that the
confidentiality of this information had been breached, BCV failed
to disclose that fact immediately to the public, thereby
violating the provisions on ad hoc publicity.

On 29 August 2002, the Banking Committee (a governing body of
BCV) approved the restructuring plan presented by the general
management. On 11 September 2002, the board of directors examined
the plan. The board of directors decided to further examine the
plan at the next board meeting to be held on 18 September 2002.
It also instructed general management to expand on the
contemplated strategy for BCV's restructuring.

On Saturday 14 September 2002, BCV learned that "Le Matin
Dimanche" intended to publish on the following day a summary of
BCV's restructuring plan. On Sunday 15 September 2002, "Le Matin
Dimanche" ran an article containing confidential information
about the restructuring of the BCV, in particular, with regard to
BCV's general management. Text and images detailed which general
managers were to lose their jobs.

Pursuant to Art. 72 of the Listing Rules of the SWX Swiss
Exchange (LR), the issuer must inform the market of any price-
sensitive facts which have arisen in its sphere of activity and
are not of public knowledge. Price-sensitive facts means new
facts which, because of their considerable effect on the issuer's
assets and liabilities or financial position or on the general
course of business, are likely to result in substantial movements
in the price of the securities. A comprehensive restructuring of
the issuer, as well as significant changes in the composition of
its board of directors or at the general management level, all
constitute potentially price-sensitive facts.

Pursuant to Art. 72 para. 2 LR, the issuer must provide
information without delay as soon as it has knowledge of the main
points of the price-sensitive facts in question. However and in
accordance with Art. 72 para. 3 LR, it may postpone the
disclosure of such information if, 1) the new facts are based on
a plan or decision of the issuer, and 2) its dissemination is
liable to prejudice the legitimate interests of the issuer. Art.
72 para. 4 LR stipulates that, if disclosure of the price-
sensitive information is postponed, "the issuer must guarantee
the complete confidentiality of such facts". Thus if
confidentiality is breached in this regard, the issuer bears the
responsibility to inform the public immediately, clearly and
comprehensively while ensuring equal treatment of all market
participants.

In the case at hand, the main points of the price-sensitive facts
were known to BCV at latest on 11 September 2002 when the
restructuring plan was presented to its board of directors. These
price-sensitive facts pertain to the restructuring plan, the
dissemination of which was liable to prejudice the legitimate
interests of BCV. Thus BCV was entitled to postpone announcement
under the condition that confidentiality remain ensured, which
was not the case.

If the confidentiality surrounding price-sensitive information is
breached, the issuer must immediately inform the public of the
relevant price-sensitive facts. Following publication of the
confidential information in the 15 September 2002 issue of "Le
Matin Dimanche", BCV should have informed the public immediately
instead of refusing to make any comment whatsoever on the
information that had appeared in the media.

The Commission of the SWX Admission Board has ruled that Art. 72
LR is infringed if an issuer who has postponed disclosure of
price-sensitive information fails to inform the public
immediately upon learning that the confidentiality of such
information is no longer ensured.


SWISSAIR: Judge Okays Transport Company's Debt Restructuring
------------------------------------------------------------
In his ruling dated 22 May 2003, the competent debt restructuring
judge in Bulach verbally approved the Swissair Swiss Air
Transport Company Ltd. debt restructuring agreement involving the
surrender of assets and handed down his decision in a
disposition.

The judge further appointed Dr. Niklaus B. Muller of Zurich,
attorney-at-law, as deputy to the Liquidator in the event of any
conflicts of interest with SAirGroup, SAirLines or Flightlease
AG. The parties and the two creditors who had raised objections
prior to the negotiations will receive a written account of the
reasons for the decision from the judge in the next few days.

Any appeal against the decision must be made within ten days of
receipt of these written reasons.

CONTACT:  Administrators' Home Page: www.sachwalter-swissair.ch
          Filippo Th. Beck
          Wenger Plattner
          Phone: +41 (0)1 914 27 70
          Fax: +41 (0)1 914 27 88


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


AMULET GROUP: Accident Group Under Investigation Over Fraud
-----------------------------------------------------------
The Accident Group, whose parent company The Amulet Group is
currently under administration, is at the center of a fraudulent
claims investigation.

News from the British Broadcasting Corporation said bus company
Arriva hired private detectives to scrutinize more than 400
claims submitted by the Manchester-based injury claims firm,
which has ceased trading since last week.

"We have engaged a private investigative agency to check the
validity of claims being made by representatives of The Accident
Group," a spokesman for Arriva said.

He added: "We can confirm that during a sixth-month period, over
400 claims were submitted by representatives of The Accident
Group. Subsequently a number were withdrawn, a number of people
were uncontactable and in a number of cases fraud was suspected."

The Accident Group helped customers receive compensation for
injuries suffered in accidents by putting them in touch with
solicitors.  Its system works such that customers take out an
insurance policy to avoid paying the court costs if they lose the
case, but if they win, the money will be claimed back from the
losing parties' insurers.

Amulet blamed its collapse on "continual battles with the
insurance industry and the sudden failure of a banking partner".
But PricewaterHouseCoopers, the appointed administrator,
attributed the failure to "lower than expected claims success
rate."


AUSTIN REED: Grandson of Founder Withdrew Intention to Bid
----------------------------------------------------------
Nigel Robertson, the grandson of the founder of Austin Reed,
decided to drop his plans of acquiring the fashion retail chain
after being told by the Takeover Panel to clarify his intentions.

The latest development fired anew criticism from shareholders
about the way the board is handling the company sale, according
to The Telegraph.

Fund manager Bill Brown of Isis Fund Management said: "The
company has a history of turning down approaches without letting
shareholders consider them. I find it a little bit sad that the
interested parties have not been given access to information in
order to consider offers."

Shareholders were anxious even more to find a buyer for the
retailer after Austin Reed admitted that sales in the 16 weeks
from the end of January had plunged 9%.

CONTACT:  AUSTIN REED GROUP
          Roger Jennings, Group Chief Executive
          Phone: 020 7534 7703
          Geoff Gibson, Group Finance Director
          Home Page: http://www.austinreedgroup.co.uk


BRITISH AIRWAYS: Sings Agreement to Unload DBA to Intro
-------------------------------------------------------
British Airways has signed an agreement today, Monday 2 June,
2003, to sell its wholly owned German subsidiary dba (formerly
Deutsche BA) to Intro Verwaltungsgesellschaft mbH, the Nuremburg-
based aviation consultancy and investment company.

Intro will buy the entire share capital of dba for EUR1. As part
of the transaction, British Airways will invest up to GBP25
million (EUR35 million) in dba and will also underwrite the
German carrier's fleet of 16 aircraft for one year, at a cost of
GBP2 million (EUR3 million) per month.

In exchange, British Airways will receive 25 per cent of any dba
profits, or 25 per cent of any profit on disposal of dba, up to
June 2006.

Roger Maynard, chairman of dba and British Airways' director of
investments and joint ventures, said: "Dba does not fit with our
core full service network strategy and the new owners will be
able to give the business the commercial focus it needs. The
people in dba have done a great job in carving an important niche
in the German domestic market with an operational performance
second to none. I wish them well.

"This deal is a sensible one in the current climate. It ends our
exposure to German losses yet gives us the benefit of a share in
any profits that the company makes in the next three years.

"There are no changes to dba's flights, as a result of the change
in ownership, and for customers and staff it is very much
business as usual."

The sale transaction will be completed by July 1 2003.

Intro was advised by Barons Financial Services of Geneva and
London.

                     *****

-- Hans Rudolf W"hrl , chief executive officer of Intro
Verwaltungsgesellschaft mbH, has considerable experience in the
aviation industry. He was the founder of NFD, forerunner of
Eurowings, and also was a member of the dba board between 1994
and 2001.

-- Dba currently serves seven German domestic cities and four
international routes. Berlin to Cologne, Dusseldorf and
Stuttgart; Munich to Berlin, Cologne, Dusseldorf and Hamburg;
Berlin to Nice; Hamburg to Nice; Stuttgart to Nice and Munich to
Malaga.

-- Dba has 800 employees, mostly based in Munich, and operates 16
Boeing 737 aircraft.

CONTACT:  BRITISH AIRWAYS
          Phone: 0208 738 5100

          INTRO VERWALTUNGSGESELLSCHAFT MBH
          Eric Kohn
          Phone: 0207 823 2662 or 07785 301500


BULLOUGH PLC: Directors Recommend Montpellier's Increased Offer
---------------------------------------------------------------
Further to the announcement by Montpellier Group plc on 6 May
2003 and the subsequent posting of their Offer Document on 14 May
2003, the Independent Directors of Bullough plc would like to
make the following statement:

'Although discussions regarding the disposal of an operating
division of Bullough have continued, the Independent Directors
have been unable to reach a position where this disposal is
certain to complete.

As a consequence, the Independent Directors have removed their
right to withdraw their recommendation and of the Increased Offer
and hence are now unconditionally recommending that Shareholders
accept the Increased Offer'.

CONTACT:  Howard Marshall
          Bullough plc
          Phone: 01372 379088

          Richard Welton
          Arbuthnot
          Phone: 0121 710 4501


CABLE & WIRELESS: Divests Bulk of C&W Italia to Consortium
----------------------------------------------------------
Telecom group Cable & Wireless in what seemed to be a start of
its exit from Europe sold the bulk of C&W Italia to a consortium
made up of C&W Italia managers and a third unknown party,
according to industry sources.

A company employee confirmed the news saying, "It [C&W Italia]
has been sold to local management and a third party. I don't know
who the backer is. C&W will be keeping the multi-national
clients, but other customers in Rome will go to this new
company."

"C&W is doing several management buyouts in Spain, France and I
think Germany. We should get some more details on Wednesday," an
industry source said.

A spokeswoman also said: "We are not commenting on reports of a
sale. We said in early April when we sold Belgium, the
Netherlands, Sweden, Russia and Switzerland that this would mark
the first in a series of transactions."

Cable & Wireless announced in April it plans to focus on multi-
national and service providers in Europe and exit from domestic
businesses.

It is expected to announce the sell-off of its Global operations
in the U.S. and Japan when it reports full year results this
week.

"If it is true, it is consistent with what C&W has said about
exiting Europe. The big issues are still about what they do in
the U.S. and in the U.K.," said Goldman Sachs analyst Matthew
Bloxham.


CORDIANT COMMUNICATIONS: Two Top Executives to Benefit on Sale
--------------------------------------------------------------
The due diligence conducted at Cordiant Communications in
relation to its planned sale discovered that two top executives
of the company stand to receive bonuses of up to a year's salary
depending on the proceeds of disposals or a takeover of the
advertising group.

In addition, David Hearn, chief executive, and Andy Boland,
finance director, are also due to receive 18 months' salary if
they lose their jobs within two years of a change of control at
Cordiant. Mr. Hearn's salary is currently $900,000 (GBP550,000),
while Mr. Boland is on GBP250,000.

The bonuses, which include a payment for a successful debt-for-
equity swap, are provided in new clauses that have been added to
their contracts in an undetermined time.

Cordiant Communications did not return calls, according to the
Financial Times.

The issue on the bonus triggers became alive after Cordiant lost
a big client, Allied Domecq, in Apri.

The report noted that The Takeover Code requires service contract
alterations during a "bid situation," which in Cordiant's case
became applicable when it announced preliminary approaches on
April 29.  The alterations should be approved by shareholders if
the "new or amended contract or terms constitute an abnormal
increase in the emoluments or a significant improvement in the
terms of service," the code provides.

The Takeover Panel must be consulted in advance if new terms
resulted from a genuine promotion, but it is also noted that
Cordiant has not announced any change in responsibility for the
two men.

Cordiant is currently being sustained by a GBP250 million
borrowed money.  It has until July 15 to find other alternative
source of funding.

Cordiant barely met the stock exchange deadline for reporting its
2002 results and has not yet published its annual report.


EDINBURGH FUND: Announces Sale of Private Client Subsidiary
-----------------------------------------------------------
Edinburgh Fund Managers Group plc is pleased to announce that it
has agreed terms for the sale of its private client subsidiary,
Edinburgh Fund Managers (Private Clients) Limited, to Tilney
Holdings Limited. An initial cash consideration of GBP5 million
is payable by Tilney upon completion of the sale in respect of
the goodwill and net assets of the company, with the
consideration to be adjusted depending upon the value of the net
assets acquired by Tilney. The sale proceeds will be applied by
Edinburgh Fund Managers Group plc to reduce bank borrowings.

Completion of the sale is conditional upon the Financial Services
Authority approving the transaction.

Edinburgh Fund Managers (Private Clients) Limited provides
portfolio management services for a wide range of clients,
including private clients and charities, and made profits of
GBP173,000 (before tax) during the financial year ended 31
January 2003. The company had net assets of GBP680,000 and funds
under management of GBP242 million as at 31 January 2003.

Rod MacRae, joint managing director of Edinburgh Fund Managers
comments:

"The disposal forms part of our strategy to rebuild value for
shareholders through our ongoing assessment of our key business
priorities. This is an excellent deal for Edinburgh Fund
Managers, which will strengthen our balance sheet and allows us
to focus on our core areas of strength and excellence, including
our expanding IFA franchise, our Investment Trust business and
our high margin venture capital business."

David Campbell, Executive Chairman of Tilney Group comments:

"Edinburgh's Private Client Division is an ideal strategic fit
with Tilney Investment Management and, together with our existing
Edinburgh operation, complements perfectly our sizeable private
client business in Glasgow. The deal illustrates our strategy of
selective acquisition of high quality private client managers,
confirming Tilney as a leading player in private client asset
management in Scotland with in excess of GBP1bn of funds under
management. We look forward to working with our new colleagues,
and believe the combined expertise of both firms represents a
tremendous springboard for future growth in Scotland."

CONTACT:  POLHILL COMMUNICATIONS
          Penny Clarke
          Phone: 020 7655 0540


EMI GROUP: Advises Public Regarding Change of Office Address
------------------------------------------------------------
We advise that the registered office address of EMI Group plc
changed to 27 Wrights Lane, London W8 5SW with effect on and from
2nd June 2003.

                     *****

Moody's Investors Service downgraded the ratings for EMI Group on
expectation of continued softness in the world recorded music
markets.  Moody's believes that the continuation of the weakness
through 2003 and beyond is likely to put renewed pressure on
EMI's profits and debt protection measurements.

The ratings downgraded are for EMI Group's Eurobonds due 2008 and
Capitol Records Inc.'s senior notes due 2009 (guaranteed by EMI
Group plc).  The rating, which was previously at Baa2, was
lowered to Ba1.

The outlook is stable to reflect "the relative resilience of
EMI's market-leading music publishing business, the company's
improved cost structure and management's ongoing commitment to
debt reduction through asset sales."

The rating agency is concerned about the ability of the company,
and the whole music industry, to curve the problem of music
piracy.  It is also skeptical that the company will be able to
build its own Internet distribution services.

Moody's as well doubts the group's capability to support an
investment grade rating for the next two years due to these cash
flow limiting factors.  It predicts a further revenue decline in
2003/2004.

EMI's sales from music publishing had dropped from GBP416.4
million ($670.4 million) to GBP401.2 million in the year to
March, causing profits to fall by 4%.


INVENSYS PLC: Sells Dutch Subsidiary Baan for US$135 Million
-----------------------------------------------------------
Invensys plc announces that it has agreed to sell its Baan*
subsidiary to an investment group consisting of Cerberus Capital
Management, L.P. and General Atlantic Partners, LLC, for a cash
consideration of US$135m. The sale proceeds will be used by
Invensys to pay down debt.

Baan is a leading global supplier of industry-defining enterprise
application solutions and services to discrete manufacturers in
the industrial machinery and equipment, electronics, automotive,
and aerospace and defense industries. For the twelve months ended
31 March, 2003, the business generated revenues of US$265m and an
operating loss of US$32m. Net assets, including capitalised
goodwill, are approximately US$120m.

The sale of Baan is consistent with Invensys' previously stated
objectives to divest non-core assets as part of its overall plan
to improve capital strength and increase strategic focus. The
transaction is subject to customary regulatory approvals and is
expected to complete by the end of June 2003.

Rick Haythornthwaite, CEO of Invensys, said:

'With the sale of Baan, we have made a rapid and positive start
to our disposal program. At the same time, we have also been
mindful of our responsibilities to Baan customers, employees and
partners and I am confident that they will be well served under
the new stewardship.'


*   Excludes Baan Process, formerly Marcam


About Invensys plc

Invensys is a global leader in production technology.  The group
helps customers improve productivity, performance and
profitability using innovative services and technologies and a
deep understanding of their industries and applications.

Invensys Production Management works closely with customers to
increase performance of production assets, maximise return on
investment in production and data management technologies and
remove cost and cash from the supply chain. The division includes
APV, Avantis, Eurotherm, Foxboro, IMServ, SimSci-Esscor,
Triconex, M&I and Wonderware. These businesses address process
and batch industries -- including oil and gas, chemicals, power
and utilities, food and beverage, pharmaceuticals and personal
health care products, metals and mining -- plus the discrete and
hybrid manufacturing sectors.

Invensys Rail Systems is a global leader in the design,
manufacture, supply, installation, commissioning and maintenance
of safety-related rail signalling and control systems as well as
a complete range of rail signalling and communications products.
The business includes Westinghouse Rail Systems Limited (WRSL),
Dimetronic Signals, Safetran Systems, Burco Services,
Westinghouse Signals Australia and Foxboro Transportation.  WRSL
was recently awarded a contract valued at more than o850m (US$1.3
billion) for the renewal of signalling on the London Underground.

Invensys also currently serves other market sectors through its
Development Division.  The businesses in this division are:
Appliance Controls, APV Baker, Baan, Climate Controls, Hansen
Transmissions, Lambda, Metering Systems, Powerware and Teccor.
Invensys is actively seeking to develop these businesses through
equity partners or new owners.

Invensys operates in more than 60 countries, with its
headquarters in London.  For more information, visit
http://www.invensys.com

CONTACT:  INVENSYS PLC
          Duncan Bonfield
          Phone: +44 (0) 20 7821 3529/07753 581 314

          Brunswick
          Ben Brewerton
          Phone: +44 (0) 20 7404 5959


NETTEC PLC: Completion of the Sale of Nettec Solutions Limited
-------------------------------------------------------------
Nettec announces that the sale of Nettec Solutions to The Aspect
Group was completed on 30 May 2003.  The Disposal was approved by
Nettec's shareholders at an EGM on 20th May 2003.  Nettec
Solutions was the only trading subsidiary of Nettec.

Resignation of Director

Due to the completion of the sale of Nettec Solutions, Thomas
Nikolopulos, Managing Director of Nettec, has resigned as a
director with immediate effect.

The board of Nettec would like to thank Thomas for his
significant efforts and contribution to Nettec  over the last two
years.

Update of Share Buy-Back

The Disposal leaves Nettec as a cash shell and the Board are
currently considering the options available to it which may
include an acquisition or the return of cash to shareholders.
Until a decision is made by the Board on the most appropriate
option, Nettec will not commence the share buy back which was
authorized by shareholders at the EGM on 14 April 2003.

CONTACT:  NETTEC PLC
          Phone: +44 (0)20 8406 6394
          Nick Butler, Chairman
          Peter Kemkers, Finance Director

          Citigate Dewe Rogerson
          Phone: +44 (0)20 7638 9571
          Patrick Toyne Sewell


PIZZAEXPRESS PLC: Slow Shareholder Response Threatens Takeover
--------------------------------------------------------------
The disappointing response from shareholders on the recommended
GBP278-million takeover of troubled PizzaExpress by the
GondolaExpress consortium has doused hopes of an immediate
acquisition.

According to The Times, GondolaExpress's 387p-a-share offer is
far from a foregone conclusion after a slower than expected
return of acceptances from shareholders.

The report said although investors representing about two thirds
of the shares have accepted the offer, with just two weeks to go
the figure is well below the 90% level required by bankers in a
typical private equity-backed deal to declare the bid
unconditional.

Analysts expect Bank of Scotland to relax the stipulation needed
to declare the bid unconditional.  They anticipate that the 90%
mark would be lowered to 75%.  However, some investors, including
Fidelity Investments, are perceived likely to insist on what has
been set.

Mark Wallace, from Analyst Investment Management, a near 3 per
cent shareholder, spoke on behalf of other shareholder saying
"the offer significantly undervalues PizzaExpress," and considers
the process "difficult to gauge."

GondolaExpress made the offer backed by Capricorn Ventures
International and TDR Capital.  The debt funding is being
provided by Bank of Scotland, part of the HBOS group.

The consortium said: "This offer needs acceptances in respect of
90 per cent of the shares to go unconditional and shareholders
should be aware of the potential consequences of the offer
lapsing."

PizzaExpress, which admitted having tough trading following a
slump in tourism and downturn in the economy, posted a year of
dwindling sales and falling share value.

It put the business up for sale after receiving an approach from
Mr. Osmond in November.

CONTACT:  PIZZAEXPRESS PLC
          1 Union Business Park
          Florence Way
          Uxbridge
          UB8 2LS
          Contacts:
          Nigel Colne, Chairman
          David Page, Chief Executive
          Paul Campbell, Group Finance Director
          Phone: 01895 618618
          Sue Pemberton, Citigate Dewe Rogerson
          Phone: 020 7638 9571


STOLT-NIELSEN S.A.: Anticipates Reporting a Loss in 2003
--------------------------------------------------------
Stolt-Nielsen S.A. (Nasdaq:SNSA) (Oslo:SNI) announced that in
light of today's [Monday's] announcement of a significant loss by
its publicly traded subsidiary, Stolt Offshore S.A. (Nasdaq:SOSA)
(Oslo Stock Exchange:STO), SNSA now anticipates to report a loss
in 2003.

SOSA on Monday announced that following a review of information,
which became available in recent project reporting and a
subsequent major project review by CEO Tom Ehret, it has
identified substantially poorer than anticipated performance and
cost overruns on three major EPIC contracts and several smaller
projects. In addition, it is anticipated that activity levels
will be slightly lower than previously anticipated. In light of
this revised forecast, SOSA is working closely with its main
banks in seeking to amend its two primary bank credit facilities
to reflect SOSA's current financial position, including a waiver
of certain financial covenant tests until November 30, 2003.
Without a waiver of certain financial covenants, SOSA would be
out of compliance with its bank credit agreements, which, in
turn, could result in SNSA being out of compliance with its
financing arrangements. In order to help SOSA get such waivers
from its banks, SNSA has offered to provide a $50 million capital
infusion in the form of a subordinated loan to SOSA and extend
the existing $50 million liquidity line it currently provides to
November 30, 2004.

Niels G. Stolt-Nielsen, Chief Executive Officer, said, "We now
have a strong team in SOSA led by its new CEO, Tom Ehret. Given
time, I am now more confident than ever that Tom and his team
will turn SOSA around and make it profitable. Even with the
losses reported in SOSA, I expect SNSA will continue to be in
compliance of its covenants. Our banks are appreciative of the
organizational changes that have been made at SOSA and the
continued strong support SNSA gives SOSA. I thank them for their
support.

"SNTG continues to deliver solid results and is expected to
report full-year 2003 results that are similar to last year. SSF
has seen significant strength in the North American market, but
the European market continues to suffer. We expect improvement in
SSF full-year results compared to last year," Mr. Stolt-Nielsen
concluded.

About Stolt-Nielsen S.A.

Stolt-Nielsen S.A. is one of the world's leading providers of
transportation services for bulk liquid chemicals, edible oils,
acids, and other specialty liquids. The Company, through its
parcel tanker, tank container, terminal, rail and barge services,
provides integrated transportation for its customers. The Company
also owns 63 percent of Stolt Offshore S.A. (Nasdaq:SOSA) (Oslo
Stock Exchange:STO), which is a leading offshore contractor to
the oil and gas industry.

Stolt Offshore specializes in providing technologically
sophisticated offshore and subsea engineering, flowline and
pipeline lay, construction, inspection, and maintenance services.
Stolt Sea Farm, wholly owned by the Company, produces and markets
high-quality Atlantic salmon, salmon trout, turbot, halibut,
sturgeon, caviar, bluefin tuna, and tilapia.

CONTACT:  STOLT-NIELSEN
          Richard M. Lemanski USA
          Phone: 1 203 625 3604
          E-mail: rlemanski@stolt.com
          Valerie Lyon UK
          Phone: 44 20 7611 8904
          E-mail: vlyon@stolt.com




* Cadwalader Names Anthony Davis Special Counsel in London
----------------------------------------------------------
Cadwalader, Wickersham & Taft LLP, one of the world's
leading international law firms, has named Anthony Davis as
Special Counsel to the firm, resident in the London office. Mr.
Davis joins the firm's Tax Department from the Inland Revenue.

Mr. Davis will advise on taxation issues on a broad range of
securitization, restructuring and insolvency matters both in the
U.K. and Europe.

"Anthony's experience complements and strengthens our fast-
growing London office and enhances the level of service offered
to clients," said Robert O. Link, Jr., Cadwalader's Chairman. "We
look forward to his contributions to the Tax, International
Capital Markets and Financial Restructuring Departments."

At the Inland Revenue, Mr. Davis was a Senior Policy Adviser
appointed to bring an external perspective to UK Tax Policy. This
was the first appointment of its kind by HM Government and
included close involvement in policy and legislation affecting
many areas of business taxation such as proposed reforms of
corporation tax, taxation of collective investment schemes, stamp
duties and the Enterprise Act. Prior to Inland Revenue, his
career included periods as a partner successively in the
International Tax Group at Ernst & Young and in the international
law firm Lovells.

Among other distinctions, he is the author of the leading work on
the taxation of insolvent companies in the UK and a Fellow of the
Chartered Institute of Taxation.

Mr. Davis received a BA Hons in English from the University of
Oxford in 1977 and an MA from London University in 1982. He
graduated from the College of Law, Lancaster Gate in 1978 and
qualified as a Solicitor in England and Wales in 1981 and as
chartered tax adviser in 1984.

Cadwalader, Wickersham & Taft LLP, established in 1792, is one of
the world's leading international law firms, with offices in New
York, Charlotte, Washington and London. Cadwalader serves a
diverse client base, including many of the world's top financial
institutions, undertaking business in more than 50 countries in
six continents. The firm offers legal expertise in
securitization, structured finance, mergers and acquisitions,
corporate finance, real estate, environmental, insolvency,
litigation, health care, banking, project finance, insurance and
reinsurance, tax, and private client matters. More information
about Cadwalader can be found at http://www.cadwalader.com


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

     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 photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


                  * * * End of Transmission * * *