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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Tuesday, July 22, 2003, Vol. 4, No. 143


                            Headlines


F I N L A N D

ROCLA OYJ: Expects Full Year Results to Mirror Negative 1st-Half


F R A N C E

ASSURANCES GENERALES: Inks Preliminary Pact with Credit Foncier
BUFFALO GRILL: In Talks With Several Potential Bidders
RHODIA SA: Workers Stage Strike Over Pension Scheme Closure
VIVENDI UNIVERSAL: Sells Studio Expand to Media-Participations


G E R M A N Y

BAYER AG: Chair Sees 3-year 'Dry Spell' in Pharmaceutical Unit
BERTELSMANN AG: Urges Court to Junk Copyright Infringement Cases
INFINEON TECHNOLOGIES: Saves EUR43 Mln in New Accenture Deal
KIRCHMEDIA GMBH: Saban Reviving Takeover Bid, Sources Say
WESTLB AG: U.K. Managers Eye Buyout of Local Equities Business
WESTLB AG: 'Dynamik-Bond' Fully Subscribed


I R E L A N D

ELAN CORPORATION: 'CCC' Ratings Remain on CreditWatch Negative


I T A L Y

ALITALIA SPA: E.U. Denies Air France Tie-up Faces Rough Sailing
LAZIO SPA: Signs up Two Atalanta Players for EUR7.1 Million


L U X E M B O U R G

MILLICOM INTERNATIONAL: Unveils Terms of Mandatory Bond Offering


N E T H E R L A N D S

KONINKLIJKE AHOLD: Cencosud Lowers Offer for Santa Isabel


N O R W A Y

AKER KVAERNER: Court Rules in Favor of Equatorial Tonopah


S W E D E N

LM ERICSSON: Restructuring on Track, Says Chief


S W I T Z E R L A N D

SWISS LIFE: U.K. Unit's Rating Unaffected by Individual Biz Exit


U N I T E D   K I N G D O M

BRITISH AIRWAYS: Submits Special Resolutions to Regulator
BRITISH AIRWAYS: Flights Back to Normal as Strike Ends
BRITISH AIRWAYS: Meets with Unions to Prevent More Walkout
CALEDONIA INVESTMENTS: Chair Disputes Basis for Liquidation Call
CORUS GROUP: Banks Back GBP1 Billion Refinancing Package

HP BULMER: Scottish & Newcastle Closes Offer with 92.3% Control
INVENSYS PLC: May Announce Sale of Energy Business at AGM
MARCONI CORPORATION: Reveals Additional Severance Payments
MARCONI CORPORATION: Lists Two Million More Ordinary Shares
MOTHERCARE PLC: Sales Increase 1.9% Despite Closure of 13 Stores

MYTRAVEL GROUP: Nears Refinancing Deal with Bondholders
SCHRODER EMERGING: Board Proposes Scheme of Reconstruction
SCHRODER EMERGING: Company Profile
TELEWEST COMMUNICATIONS: Under Siege by Largest Bondholder
WILLINGTON PLC: Ships Subsidiary to Corrie McColl

* Large Companies with Insolvent Balance Sheets


                            *********


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F I N L A N D
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ROCLA OYJ: Expects Full Year Results to Mirror Negative 1st-Half
----------------------------------------------------------------
The consolidated net sales of the Rocla Group in January-June
2003 reached EUR38.7 million (EUR45.1 million).  Demand for warehouse trucks
remained unsatisfactory and has led to increased price competition.  The
order book of Automated
Guided Vehicles improved significantly from a weak first part of the year.
Consolidated operating profit for the first half of the year was -EUR1.6
million (EUR1.5 million).  Although the second half of the year is expected
to turn in a profit as a result of streamlining and cost savings programs,
the net result for the full year is not expected to reach the positive
plateau.

ORGANIZATION

The organization was adapted to fit the corporate strategy even better as of
the beginning of the second quarter.  The Business Area Industrial Trucks
was divided into two business units: Rocla Customer Solutions and Warehouse
trucks.  The first unit comprises business operations in Finland,
Scandinavia, the Baltic region, Russia and Poland, the second consists of
other markets and contract manufacturing.  In Automated Guided Vehicles, it
was decided that the project and manufacturing operations of Rocla Robotruck
AB will be transferred to the parent company Rocla Robotruck Oy; the key
business processes will be streamlined and overlapping work will be eliminat
ed.  Corporate business development and marketing responsibilities were
redefined.

NET SALES AND OPERATING RESULT

Demand for industrial trucks in Europe contracted again during the second
quarter after the weak recovery in the first months of 2003.  Also Rocla's
deliveries remained short of those a year ago.  In the second quarter of
2003 net sales fell below the ones of a year ago.  Consolidated net sales in
January-June 2003 were EUR38.7 million.  In the corresponding period a year
ago net sales were EUR45.1 million.   Exports and international operations
accounted for 71% of net sales (73%).  Industrial trucks accounted for 81%
of consolidated net sales (78%) and Automated Guided Vehicles for 19% (22%).

The low capacity utilization level showed clearly in results.  The
consolidated operating result was -EUR1.6 million (EUR1.5 million).  The
result of the Danish subsidiary Rocla A/S continued to be negative.

In the first half of 2003 net sales and operating results developed as
follows:

EUR million         Net sales            Operating profit
                   2003   2002 Change%    2003   2002 Change%
Industrial trucks 31.5    35.3   - 11    -0.4    1.9 - 123
AGVs               7.2     9.8   - 27    -1.2   -0.4 - 168
Total             38.7    45.1   - 14    -1.6   +1.5 - 207

BUSINESS AREAS

Industrial trucks

Demand for industrial trucks in Europe contracted in the second quarter of
2003.  The successful launch of Rocla's new power pallet truck product
family generated growth of order bookings towards the end of the first
quarter as the distribution network made preparations to respond to end user
demand.  The good growth of Rocla Rent truck rental operations continued.

Rationalization efforts in the Danish subsidiary

Rocla A/S continued but their impact on results will mainly show in 2004.
Operations are adapted to the current market level.  Development of the new
truck models for the American market in the Mitsubishi Caterpillar Forklift
cooperation continued as planned and manufacturing at the Jarvenpaa factory
started in June 2003.  Significant delivery volumes are expected to follow
in 2004.

Net sales by the Industrial truck business area in the first half of 2003
were EUR31.5 million (EUR35.3 million).  Operating profit was -EUR0.4
million (EUR1.9 million).  The figures reflect a lower level of deliveries
as compared with last year.  The operating result of the Finnish industrial
truck operations turned a profit but the operating loss in the Danish
subsidiary (EUR1.0 million) pushed the six month overall result of the
business area into the red.

Automated Guided Vehicles

The low level of industrial investment demand affected the sales of
Automated Guided Vehicles in the beginning of the year.  Despite active
tendering activity, customers were even slower than expected in their
decision-making.  As of April the situation improved and the order book of
Rocla Robotruck rose to almost satisfactory levels as the quarter
progressed.  Rocla scored successes in heavy metal industry applications in
Europe and new orders were received from leading German steel industries
such as Thyssen and Arcelor.

Cooperation with the TetraPak Group continued as planned and the fifth
system delivery out of the framework agreement of seven systems is now up
for delivery.

Net sales by Rocla Robotruck in the first half of the year were EUR7.2
million (EUR9.8 million).  The operating result was -EUR1.2 million (EUR0.4
million).  The operating loss decreased mainly due to lower volume of
operations and one-time expenses of around EUR0.4 million in Rocla Robotruck
AB in Sweden caused by the rationalization activities and transfer of
project operations.

BALANCE SHEET

At the end of June 2003 the consolidated balance sheet total was EUR47.8
million (EUR55.2 million).  At year-end 2002 the balance sheet total of the
Rocla Group was EUR47.5 million.

PROFITABILITY

The Rocla Group earnings before taxes came to -EUR2.0 million (EUR1.1
million). Return on investment, ROI, was -9.1% p.a. (8.3%) for the first
half of the year.  Return on equity, ROE, was -30.1% p.a. (8.2%).

Earnings per share in the first six months were -EUR0.52 as compared with
EUR0.22 for the same period last year.

PRODUCT DEVELOPMENT

Development work on new Rocla products continued to be active.  Although
significant cost savings and rationalization programs have been implemented
in the units of the group the operating conditions of product development
have been carefully maintained.  Product renewal and technical development
of products are key success criteria of warehouse truck operations.  The new
power pallet products family introduced on the market at the beginning of
the year was well received among customers and generated new demand.  The
truck models being developed in cooperation with Mitsubishi Caterpillar
Forklift for the American market received clearance from the American
product testing organization United Laboratories in June.

INVESTMENT AND FINANCING

The Group's gross investments in fixed assets were EUR1.1 million.  The main
investment objects were in trucks for the expanding rental business and
upgrading of rented facilities at the Jarvenpaa facility.

At the end of the first half of the year the interest-bearing net debt of
the Rocla Group was EUR19.5 million (EUR22.1 million), net gearing was 152%
(127%) and the equity to assets ratio 28.3% (33.2%).

PERSONNEL

The activities undertaken to streamline operations during the first half of
the year affected personnel in all units of the
Group.  In Denmark and Sweden, codetermination procedures were initiated in
the first quarter regarding the adaptation of personnel following
improvement of operations.  In May, codetermination procedures started in
the Finnish units of the Group.  The number of redundancies estimated at
that time was around 40 people.  Negotiations have been carried out during
the summer and the decisions made include redundancies as well as the
termination of temporary jobs and pension arrangements.  Negotiations
regarding temporary layoffs possibly needed in addition to this continue
after the summer vacation period and they affect an estimated a maximum of
150 people for a maximum period of 90 days during the remainder of 2003.

In the first half of 2003 the Group personnel averaged 468 (478).  At the
end of June the number of employees was 464 (511), of whom 106 (133) worked
outside Finland.

SHARES

In the first half of 2003 76,438 Rocla Oyj shares were traded at the
Helsinki Exchanges.  This corresponds to 2% of the average total number of
shares.  The highest quotation was EUR7.00 and the lowest EUR5.50.  The
average quotation was EUR6.20 and the closing quotation at the end of the
period was EUR6.89.

Rocla Oyj holds a total of 184,500 of its own shares.  The number has not
changed during the reporting period.  The asset value of these shares in the
balance sheet is EUR1.1 million corresponding to EUR5.95 per share.

OWNERSHIP

On February 10th 2003 Rocla Oyj reported that the company had received
information that the companies administered by Erkki
Etola, Etra-Invest Oy and Tiiviste-Group Oy, had increased their holdings of
Rocla Oyj shares and votes to over 15% in a share transaction that took
place on February 5, 2003.  Etra-Invest Oy held 15.27% and Tiiviste-Group Oy
0.12% of Rocla Oyj's shares and votes after this transaction.  The total
holding became thus 15.39%.

There were no other material changes in the Rocla Oyj ownership during the
first half of the year.

ORDER BOOK

At the end of the first half of 2003 the Rocla Group order book stood at
EUR15.3 million (EUR14.9 million).  The Industrial trucks order book was
EUR7.5 million (EUR6.0 million) and the Automated Guided Vehicles order book
EUR7.8 million (EUR8.9 million).

OUTLOOK

There are no signs of improvement on the industrial truck market.  Rocla has
streamlined its operations in this market by developing sales and
distribution channels, increasing operational flexibility and by
implementing wide-ranging cost savings projects.  The streamlining efforts
undertaken in Rocla A/S in Denmark and Rocla Robotruck AB in Sweden improve
the earnings potential of both business areas but mainly as of 2004.  In
Industrial trucks growth is searched through new products and by expanding
rental operations.  The deliveries scheduled for the second half of the year
in Automated Guided Vehicles improve the earnings potential of this business
area.

The year 2003 is turning into a transition year for the Rocla Group as far
as growth ambitions are concerned.  The result for the second half of the
year is expected to turn profitable as a result of the streamlining and cost
savings efforts undertaken. Deviating from previous announcements, income
for the full year is not expected to reach positive figures.  The interim
report for January-September will be published on October 21, 2003.

Jarvenpaa July 17, 2003

ROCLA OYJ
Board of Directors

Kari Blomberg
Managing Director

To See Financial Statement:
http://bankrupt.com/misc/Rocla.htm

CONTACT:  ROCLA OYJ
          Kari Blomberg, Managing Director
          Phone: +358 9 271 47303
          Hilkka Webb, CFO
          Phone: +358 9 271 47316


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F R A N C E
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ASSURANCES GENERALES: Inks Preliminary Pact with Credit Foncier
---------------------------------------------------------------
Assurances Generales de France and Credit Foncier signed a Memorandum of
Understanding on July 18, 2003 in relation to the potential sale of
Assurances Generales de France's 72.15% stake in Entenial, a property and
estate financing bank.

This agreement features a period of exclusive negotiations.  It also sets
the terms of the potential sale and indicates that Credit Foncier will
conduct a due diligence.

Reference value: EUR565 million

Subject to the above, the reference value for 100% of Entenial would be
EUR565 million (this amount includes an estimate of Entenial's consolidated
net income for first half 2003), i.e. EUR47.8 per share, to be increased by
Entenial's consolidated net income of the third quarter 2003, group share.

The price will be set following the usual due diligence procedure.
Nevertheless, in case of a price downward adjustment greater than EUR35
million, both parties would be allowed to end the negotiations.

Exclusivity period until October 30

The exclusivity period during which the parties will negotiate the terms of
the sale and purchase agreement will end on October 30, 2003.

This project is being discussed with the employees' representatives of each
company.  Besides the usual conditions, the Memorandum of Understanding also
indicates that the closing of the potential transaction will be subject to
the approval of the respective Boards of each company and to the
authorization of the relevant supervisory, market and competition
authorities.

Following its acquisition of Assurances Generales's stake in Entenial,
Credit Foncier will launch a public market transaction on all Entenial's
shares.

About Entenial

Entenial was created in May 2000 out of the merger of Comptoir des
Entrepreneurs and the La Henin bank.  Entenial is active in property and
other asset financing and in structured financing for corporate clients.  It
generated operating income of EUR53.1 million in 2002 and has about 1,400
staff.


BUFFALO GRILL: In Talks With Several Potential Bidders
------------------------------------------------------
Buffalo Grill, the French restaurant chain hit by bad publicity from an
investigation over claims it imported banned British beef, has attracted
potential bidders seven months after it was cleared by French authorities.

Citing a Le Parisien article, the Financial Times said Buffalo Grill is in
talks with several groups.  Negotiations, however, reportedly stumbled over
differences between the EUR190 million- valuation put on the business by its
management and the EUR150 million believed to have been offered.  Buffalo
Grill denied the information, but it admitted receiving approaches from
several interested retail companies and financial investors.

It is reported that the investigation launched in December 2002 scared off
customers; the number of diners fell by 40% after French prosecutors
detained four senior managers of the restaurant chain under suspicion of
importing U.K. beef after the French government imposed a ban in 1996.  This
triggered a financial crisis at the group, with shares falling 90% to just
above EUR1 in December.

The company rebuffed the allegations and filed a libel suit against the
former employees who made the claims, which it says have "seriously
undermined the reputation of the business".  A French appeals court upheld
an inquiry into four Buffalo Grill executives on procedural grounds, who
were later cleared by authorities as there was no evidence to support
allegations that Buffalo Grill violated an embargo on British beef imposed
in 1996 to prevent the spread of mad cow disease.

Shares in the company jumped more than 20% to EUR8.77 in early trading
Friday, following the report that negotiations were underway on the sale of
the group.  However, the company's market capitalization remained at only
EUR88 million.

Last year Buffalo Grill's net profit increased 44% to EUR11.3 million, on
revenues of EUR287.4 million, while its debt fell from 3.2 to 2.7 times
equity, the Financial Times said.


RHODIA SA: Workers Stage Strike Over Pension Scheme Closure
-----------------------------------------------------------
The first day of strike at Rhodia started Friday with 600 workers at the
plant in Oldbury in the West Midlands and Widnes in Merseyside walking out.
Amicus and GMB members are striking over the French-owned chemical company's
decision to close the final salary pension scheme to new members.  Workers
are angry that the decision to end the current pension arrangements has
followed years of under funding by the company.

Derek Simpson, General Secretary of Amicus, said: "The decision to strike
has not been taken lightly by our members.  The three to one backing for
strike action demonstrates the strength of commitment by workers to defend
their own and future colleagues right to a living wage in retirement."

Kevin Curran, GMB General Secretary, said: "GMB members know that closing
the scheme to new entrants puts the long term viability of the scheme at
risk.  Their security in retirement is being put in jeopardy by the
decisions being made by the company now.  Rhodia have refused to have a
proper debate on our members' pensions and have left us with no option but
to strike.  We hope that the united voice of our members will be heard by
Rhodia and the pension issue can finally be addressed."

The industrial action follows failed union negotiations with Rhodia.  More
strike action at the two sites have been scheduled for August and September.
This is the first time British industrial workers have walked out to defend
pensions after strike threats previously forced BAE Systems and Rolls Royce
to back down over proposed benefits reductions.

The decision by Rhodia to cut their final salary scheme comes after the
company enjoyed a partial pensions holiday, dropping their contributions
from 18% to 14% over the last three years.


VIVENDI UNIVERSAL: Sells Studio Expand to Media-Participations
--------------------------------------------------------------
Vivendi Universal will sell part of Studio Expand, the TV-production arm of
pay-TV unit, Canal Plus, to Franco-Belgian publishing house
Media-Participations for around EUR20 million, a source said, according to
Dow Jones.

Under the transaction, the comic book publisher and TV producer of
Media-Participations in Dargaud will acquire Studio Expand's animated film
division.  The unit accounts for about 10% of the company's EUR140 million
revenues in 2002.

Both Vivendi and Media-Participations refused to comment on the price of the
transaction, according to the report, but the French company had previously
asked for EUR150 million for the whole of Studio Expand.  Canal Plus bought
Studio Expand from "a little under EUR300 million" in 2001, a former Canal
Plus executive told Dow Jones.

U.K.'s private-equity firm Bridgepoint, which has since been interested in
the whole of Studio Expand, could acquire the remaining part as it remains
committed to buying the rest of the business, a person familiar with the
situation said, according to the report.  Investment bank Credit Agricole
Indosuez is handling the sale of Studio Expand.


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


BAYER AG: Chair Sees 3-year 'Dry Spell' in Pharmaceutical Unit
--------------------------------------------------------------
Bayer AG is currently bracing itself for a crisis in its pharmaceutical
division, AFX News reported, citing an interview by Welt am Sonntag with
Bayer chairman Werner Wenning.

The report quoted Mr. Wenning saying: "We must certainly overcome a dry
spell in the coming three years.  That is why we are also looking for a
strategic solution for the pharmaceutical area."  He said in November Bayer
is prepared to give up a majority stake in a future partnership for its
pharmaceuticals division.

In August 2001, Bayer's pharmaceutical division, which fell from being the
sixth to eighteenth largest in the world, was forced to withdraw its
cholesterol-lowering drug, Lipobay, after deaths connected to the drug were
reported.  Bayer has been settling Baycol-related suits ever since.


BERTELSMANN AG: Urges Court to Junk Copyright Infringement Cases
----------------------------------------------------------------
Bertelsmann AG and its U.S. subsidiaries Bertelsmann, Inc. and BeMusic, Inc.
asked the New York federal court last week to dismiss the three copyright
infringement actions relating to funding provided to Napster in 2000 and
2001 to help transform it into a licensed file-sharing service, charging
that the lawsuits reflect groundless and cynical efforts by music publishers
and major record labels to seek recovery from Bertelsmann's "deep pockets"
for Napster's alleged wrongdoings.

In its filing, Bertelsmann cites settled law and recent court opinions to
counter allegations by UMG Recordings, Inc., EMI-owned record labels and
others that its entities were "vicarious" and "contributory" infringers,
emphasizing that U.S. copyright law does not permit recovery from a
third-party lender for damages the plaintiffs failed to recover from
Napster.

"Discredited" Theory Already Rejected by Judge Patel in Napster Case

Bertelsmann points out that no court has ever held that merely providing
funding to an accused infringer exposes the funder to copyright infringement
liability, and that entertaining such a "groundless and discredited" theory
would upset capital markets by potentially expanding the reach of the
copyright laws to actors far removed from the actual infringers.

Specifically, Bertelsmann notes that Chief Judge Marilyn H. Patel of the
Northern District of California had already squarely rejected the theory on
which plaintiffs rely here -- that Bertelsmann became indirectly liable for
infringements by Napster's users by providing a financial "lifeline" that
prolonged the file-sharing service's existence.  In dismissing similar
infringement claims against venture capital firm, Hummer Winblad, an
investor and controlling shareholder in Napster, Judge Patel held that such
an attenuated, "tertiary" theory of indirect copyright infringement was
"objective[ly] unreasonable" and unsupported by existing copyright law.
Bertelsmann argues that the plaintiffs cannot escape the same result through
forum-shopping.

Plaintiffs Cannot Meet Elements of Vicarious or Contributory Liability

Bertelsmann stated that its motion for dismissal was supported by the fact
that plaintiffs have not attempted and could not in good faith attempt to
provide evidence to prove the necessary elements of "vicarious" or
"contributory" infringement:

(a) That Bertelsmann had the right and ability not only to
    control Napster's activities but also to supervise or
    control the allegedly infringing activities of Napster's
    users;

(b) That Bertelsmann derived a direct financial benefit from
    those allegedly infringing activities; or

(c) That Bertelsmann substantially and knowingly participated in
    the alleged directly-infringing conduct of Napster's users.

The Bertelsmann motion also makes note of the fact that Napster's legal
status was still in question at the time of the loan.  The Court of Appeals
for the Ninth Circuit had stayed a preliminary injunction against the
file-sharing service on the grounds that there existed "substantial
questions of first impression" as to the "merits" of the infringement claims
asserted by copyright owners.

Bertelsmann notes as well that it could not have profited -- and in fact did
not profit -- directly or indirectly from any copyright infringement that
the pre-existing Napster service might have been adjudicated to have
committed, because the loan note was convertible into a controlling equity
stake only if and when Napster achieved formal "acceptance" by the music
industry at large of a new, subscription-based business model.  Bertelsmann
in fact lost all the loan funding it provided when Napster went into
bankruptcy in 2002.

Bertelsmann's Actions Were Aimed at Benefiting The Entire Music Industry

Bertelsmann points out that far from deliberately prolonging the alleged
massive infringement of copyrighted works, the $60 million it loaned to
Napster prior to its July 2001 shutdown was specifically earmarked for the
creation of a fully licensed file-sharing service in which all the major
record labels and music publishers were invited to participate.

In fact, plaintiffs' failure to state viable claims against Bertelsmann is
especially ironic since the undisputed purpose of its loan, to convert
Napster to a fully-licensed subscription service, was recognized by record
industry representatives as a productive step in the right direction, and
one plaintiff is actually pursuing a similar vision with the Napster brand.
UMG Recordings recently sold the "Pressplay" service to Roxio and acquired
equity in a Napster-branded subscription service designed to achieve the
same result that Bertelsmann sought to achieve almost three years ago.


INFINEON TECHNOLOGIES: Saves EUR43 Mln in New Accenture Deal
------------------------------------------------------------
Infineon Technologies AG (FSE/NYSE: IFX), the world's sixth largest
semiconductor corporation, will outsource its SAP support to Accenture.  As
part of Infineon's restructuring program the new agreement with Accenture is
expected to result in approximately EUR43 million in savings over the next
seven years.

Under the agreement, Accenture will take over the HelpDesk/Operational
Support and Regular Maintenance divisions, SAP Basis Support divisions, as
well as parts of the Infineon workforce.  From now on, Accenture will be
responsible for managing all SAP-supported Infineon branches throughout the
world -- two in America, four in Asia and nine in Europe.

Karl Pomschar, Senior Vice President and CIO of Infineon Technologies:
"Infineon is currently reviewing and optimizing all in-house services.  This
also includes Information Technology.  We have decided on Accenture as our
outsourcing partner for the SAP sector.  We are resolutely putting our
company strategy Agenda 5-to-1 into practice and expect to almost halve our
expenditure for SAP-support as a result of the new agreement."

"This agreement comes as a result of a long and successful track record with
Infineon.  Our knowledge of SAP solutions combined with our in-depth
understanding of Infineon's business needs should help us deliver the kind
of aggressive savings and benefits Infineon expects to achieve," said
Hans-Peter Remark, partner in Accenture's Communications & High Tech group.

The contract is effective immediately.  Project transition to Accenture is
expected to take six months after which Infineon will have completely handed
over all management of its SAP systems to Accenture.

The wide spectrum of services with which Accenture will provide Infineon
over a period of seven years ranges from 2nd and 3rd Level Help Desk Support
to basis operation, right through to regular maintenance of the SAP system.

About Accenture

Accenture is a global management consulting and technology services company.
Committed to delivering innovation, Accenture collaborates with its clients
to help them realize their visions and create tangible value.  With deep
industry expertise, broad global resources and proven experience in
consulting and outsourcing, Accenture can mobilize the right people, skills,
alliances and technologies.  With more than 80,000 people in 47 countries,
the company generated net revenues of US$11.6 billion for the fiscal year
ended August 31, 2002.  Its home page is http://www.accenture.com

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system
solutions for the automotive and industrial sectors, for applications in the
wired communications markets, secure mobile solutions as well as memory
products.  With a global presence, Infineon operates in the U.S. from San
Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo.
In fiscal year 2002 (ending September), the company achieved sales of
EUR5.21 billion with about 30,400 employees worldwide.  Infineon is listed
on the DAX index of the Frankfurt Stock Exchange and on the New York Stock
Exchange (ticker symbol: IFX). Further information is available at
http://www.infineon.com

CONTACT:  ACCENTURE
          Campus Kronberg 1
          61476 Kronberg im Taunus
          Home Page: http://www.accenture.de

          Sonja Fink
          Phone: (06173) 94 66 273
          Fax: (06173) 94 46 273
          E-mail: sonja.fink@accenture.com


KIRCHMEDIA GMBH: Saban Reviving Takeover Bid, Sources Say
---------------------------------------------------------
Executives at Saban Capital Group, the holding company of U.S. billionaire
Haim Saban, are wooing KirchMedia creditors with a new offer after a
previous GBP2 billion- bid fell apart six weeks ago.

A Financial Times report citing people close to the negotiations said
discussions are, however, still at an early stage, and there is no guarantee
an agreement will be reached.  Mr. Saban canceled his previous bid that
would have given him control of Germany's largest broadcaster,
ProsiebenSat.1, in June after failing to agree with creditors.  The
negotiations leading to the acquisition was further upset by the sharp rise
of the euro against the U.S. dollar, which could increase his bill from
initial calculations.

The new plan is understood to value the unit at the "mid to low" end of a
EUR6 and EUR7 a share offer, lower than the previous EUR7.5 per share.  Mr.
Saban's group will likely oppose a plan to eliminate the voting and
non-voting shares of ProSieben, which would eliminate KirchMedia's control
of the business, according to the report.  The group is further expected to
move for the waiving of the requirement that it make an offer for
ProSieben's publicly traded shares.

The consortium that is willing to back the deal includes private equity
groups Providence Equity Partners, Hellman & Friedman, Thomas H Lee,
Quadrangle, and Bain Capital, according to the report.  Only TF1 was
understood to be missing from the team of backers composing the earlier bid.
Saban Capital Group declined to comment, while KirchMedia and ProSieben
could not be reached, the report said.


WESTLB AG: U.K. Managers Eye Buyout of Local Equities Business
--------------------------------------------------------------
The management of WestLB Panmure is reportedly assembling a management
buyout offer for the equities business in the U.K. in preparation for the
possible sale of the unit by troubled German parent, WestLB, the Telegraph
said recently.

WestLB is currently undertaking a strategic review and has already cut its
U.K. equities business unit from the bank's European and German equities
operation, now known as WestLB Equities, at the organizational level.  The
bank initiated the strategic review, which is set to be presented to
WestLB's supervisory board in September, after the bank reported a loss of
EUR1.67 billion (GBP1.2 billion).

WestLB Panmure directors are bracing for potential severance of the unit by
working on a timeframe of 12 to 18 months to buy it, excluding the
controversial principal finance business, which accounted for a significant
part of the German bank's loss.  Robin Saunders, which runs the unit, is
preparing to rescue the operation separately.

London-based WestLB Panmure is still active in advising on deals and is
understood to be in black at the operating level following cost cutting
despite its problems.


WESTLB AG: 'Dynamik-Bond' Fully Subscribed
------------------------------------------
Due to heavy demand for the WestLB Dynamik-Bond, the Bank has terminated the
subscription period, which originally ran until July 18, 2003, ahead of
schedule.  The issue date is July 23, 2003 and the value date is July 28,
2003.  The product has been placed with savings banks throughout Germany as
well as with portfolio managers and other credit institutions, including
well-known major banks.

With the Dynamik-Bond the subscriber invests in a capital-guaranteed bond in
which the annual interest payment is linked to the absolute performance of
15 shares (BASF AG, BNP Paribas SA, Carrefour SA, Coca-Cola Company, Endesa
SA, E.ON AG, Group Danone, L'Oreal SA, Nikon Corporation, NTT DoCoMO Inc.,
Telecom Italia S.p.A., Total SA, Toyota Motor Corporation, Unilever N.V.,
Walt Disney Company).  The participation rate is 50% and the minimum
interest rate 2%.  If the lowest absolute percentage performance of one of
the shares is above 2% on the observation dates, this performance multiplied
by the participation rate is paid out for the current interest period.  The
annual interest payment date is July 28.

The certificates will be listed on the Dusseldorf, Frankfurt and Stuttgart
Stock Exchanges.


=============
I R E L A N D
=============


ELAN CORPORATION: 'CCC' Ratings Remain on CreditWatch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services said the ratings on Elan Corporation PLC,
including its 'CCC' corporate credit rating, remain on CreditWatch with
negative implications.  The ratings were originally lowered and placed on
CreditWatch on June 26, 2003, following the Dublin, Ireland-based specialty
pharmaceutical company's announcement that it had filed with the
Securities and Exchange Commission for an extension on its Form 20-F 2002
Annual Report by July 15, 2003.  The company is currently in technical
default of its debt covenants for the subordinated debt of Elan
Pharmaceutical Investments (EPIL) II and EPIL III.

The company has until July 30, 2003 to cure the default, and until September
14, 2003, to cure the default on its senior unsecured Athena Neuroscience
debt.  The company has $572 million outstanding of EPIL II and III debt and
$650 million outstanding in senior unsecured Athena debt.

Should Elan fail to cure the default and/or obtain waivers, then the debt
maturities will be accelerated and Elan will not be able to meet its debt
obligations.  Standard & Poor's will continue to monitor developments that
may lead to a rating of 'D' by autumn.


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


ALITALIA SPA: E.U. Denies Air France Tie-up Faces Rough Sailing
---------------------------------------------------------------
European Union Competition Spokeswoman Amelia Torres played down reports
that a possible alliance between Air France and Alitalia would be struck
down by Competition Commissioner Mario Monti.

"[Mr. Monti] is in favor of alliances" because the sector "needs to
consolidate," Ms. Torres said according to Dow Jones.  She further suggested
that the partnership could gain favor from European antitrust authorities if
the carriers allow competition on certain routes between France and Italy.

The Alitalia-Air France alliance would have a quasi-monopoly in the routes
connecting Paris with Milan and Rome, and Milan with Lyon.  To give other
companies chance to service those routes, Mr. Monti is demanding the two
give up airport slots to allow this.  Such concessions have worked in the
past, according to the report.

Alitalia has suffered financial problems and has reported a net loss of $200
million in 2000. It has been seeking a new partner since KLM Royal Dutch
Airlines pulled out of an alliance last year.  It has also been hit hard by
travelers' reluctance to fly because of fear of terrorism and of the SARS
virus.  Two months ago, Alitalia CEO Francesco Mengozzi said the airline
must merge and slash costs to survive.

CONTACT:  ALITALIA - LINEE AEREE ITALIANE S.P.A.
          Viale A. Marchetti 111
          00148 Rome, Italy
          Phone: +39-06-6562-2151
          Fax: +39-06-6562-4733
          Toll Free: 800-223-5730
          Homepage: http://www.alitalia.it
          Contacts: Fausto Cereti, Chairman
                    Francesco Mengozzi, Managing Director
                    Giovanni Lionetti, Director Finance


LAZIO SPA: Signs up Two Atalanta Players for EUR7.1 Million
-----------------------------------------------------------
Cirio Finanziaria SpA's affiliate Societa Sportiva Lazio SpA has announced
that it will acquire two football players from Atalanta Bergamasca Calcio
SpA for EUR7.1 million, AFX News reported.

The soccer club will buy football players Luciano Zauri for EUR5.6 million,
and Ousmane Dabo for EUR1.5 million.  It will also sell Duccio Innocenti to
Bergamo-based Atalanta for EUR1.1 million.  According to the report, Mr.
Zauri has signed a four-year contract for a total of about EUR3 million,
while Mr. Dabo has signed a three-year contract for a total of EUR2.3
million.

Cirio Finanziaria, the Italian agro-food firm that defaulted on EUR1.1
billion of bonds in November, owns 51% of troubled Lazio SpA.  It lost
EUR145 million in 2002 and had EUR1.4 billion in long- and short-term debt.
It is trying to dispose some of its assets, including Lazio SpA, in order to
re-launch itself.

Lazio's own finances have been plagued by declining cash flow and rising
costs that have resulted in a EUR55.1 million loss in the first three months
of 2003.

CONTACT:  SOCIETA SPORTIVA LAZIO SPA
          Via Augusto Valenziani 10
          00187 Rome, Italy
          Phone: +39-06-42-07-01
          Fax: +39-06-42-07-04-35
          Homepage: http://www.sslazio.it

          CIRIO
          Phone: ++39 06 4145700
          Fax: ++39 06 4145729
          Home Page: http://www.cirio.it


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


MILLICOM INTERNATIONAL: Unveils Terms of Mandatory Bond Offering
----------------------------------------------------------------
Millicom International Cellular S.A. (Nasdaq: MICC), the global
telecommunications investor, announces that it has made an offering of
approximately SEK2,556 million (US$310 million) of secured notes mandatorily
exchangeable into Series B shares of Tele2 AB.  The Notes will be issued by
Millicom International Cellular's subsidiary, Millicom Telecommunications
SA, and guaranteed by Millicom International Cellular.

The Notes, which will mature in August 2006, carry a coupon of 5% and the
exchange premium has been set at 30% with a reference price of SEK285.

Marc Beuls, President and CEO of Millicom International Cellular S.A.
commented: "[Friday's] offering of this mandatory exchangeable bond
monetizes Millicom International Cellular's entire holding in Tele2 but
provides a 30% potential upside.  The proceeds will be used to retire high
cost debt, thereby reducing Millicom International Cellular's funding cost
and increasing its free cash flow going forward."

Millicom International Cellular S.A. is a global telecommunications investor
with cellular operations in Asia, Latin America and Africa.  It currently
has a total of 16 cellular operations and licenses in 15 countries.  The
Group's cellular operations have a combined population under license
(excluding Tele2) of approximately 382 million people.  In addition,
Millicom International Cellular provides high-speed wireless data services
in five countries.  Millicom International Cellular also has a 6.0% interest
in Tele2 AB, the leading alternative pan-European telecommunications company
offering fixed and mobile telephony, data network and Internet services to
17.7 million customers in 22 countries.  The Company's shares are traded on
the Luxembourg Bourse and the Nasdaq Stock Market under the symbol MICC.


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


KONINKLIJKE AHOLD: Cencosud Lowers Offer for Santa Isabel
---------------------------------------------------------
The price that Chilean retailer Cencosud is willing to pay Royal Ahold for
the Dutch company's 97% stake in Santa Isabel supermarket chain has dropped
by a third of initial estimates, according to Reuters.

"The approximate total (for the deal) will be around US$100 million,"
Cencosud Chief Executive Laurence Golborne told reporters without explaining
the price drop.  During the early stage of the negotiations Santa Isabel was
worth US$150 million.

The report said the transaction, which was reached February, failed to close
as expected in April after the discovery of accounting errors in the
retailer's U.S. units.  The US$900 million profits overstatement discovered
triggered a legal probe on Latin American assets.  Auditors did not approve
Santa Isabel's 2002 accounts, hence the delay.

In recent developments, Mr. Golborne said the spin-off would be closed as
soon as Santa Isabel is de-listed from the Santiago Stock Exchange, which is
just a matter of days.

Ahold, which is divesting Latin American assets to cut debt, will receive
between US$40 million and US$50 million in cash out of the total sale price.
The rest of the sale proceeds will be used to pay outstanding debt,
according to an official involved in the transaction who requested that his
name be withheld.


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


AKER KVAERNER: Court Rules in Favor of Equatorial Tonopah
---------------------------------------------------------
In the lawsuit of Equatorial Tonopah, Inc. et al vs. Kvaerner U.S. Inc. et
al, the jury returned a verdict on July 16, 2003, in favor of Equatorial in
the amount of US$136,900,000 (excluding interest fees and costs).

This lawsuit involves a study prepared by Kvaerner U.S. Inc. in 1997.  The
study addressed the feasibility of Equatorial's development of a copper mine
near Tonopah, Nevada.

Aker Kvaerner is, of course, disappointed in the first instance finding in
this case, and maintains that Kvaerner U.S. Inc. acted in a professional and
proper manner in the performance of its work for Equatorial.  Appropriate
post-trial motions will be made, and if those are unsuccessful, it is
anticipated that an appeal will be filed.

The project is insured under Aker Kvaerner's liability insurance program.
In the event the verdict is upheld Aker Kvaerner currently estimate that
approximately half of the amount will be covered by insurance.

In addition to this lawsuit, there remains an unresolved arbitration
proceeding, which was filed by Kvaerner U.S. Inc. against Equatorial to
collect amounts due by Kvaerner U.S. Inc. for engineering and construction
on the Equatorial copper mine.  The arbitration proceeding has been held in
abeyance pending resolution of the litigation and will now proceed.

Aker Kvaerner is a leading global provider of engineering and construction
services, technology products and integrated solutions.  Group activities
span a number of industries, including Oil and Gas upstream and downstream,
Process, Pharmaceuticals, Metals, Power, Chemical Pulping, Environmental and
Shipbuilding.  Aker Kvaerner is a multi-local group of businesses with
nearly USD6 billion of annual revenues and around 33 000 employees in more
than 30 countries.

                     *****

Aker Kvaerner two months ago posted a loss before tax of NOK38 million, down
from previous quarters but in line with earlier outlook statements.

CONTACT:  AKER KVAERNER
          Group Communications.
          Phone: +47 67 51 31 06
          E-mail: tore.langballe@akerkvaerner.com

          Investor relations
          Tore Langballe, Vice President


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


LM ERICSSON: Restructuring on Track, Says Chief
-----------------------------------------------
Second quarter summary

(a) Net sales SEK27.6 billion -- book-to-bill above 1 for second
    consecutive quarter;
(b) Net income (SEK2.7) billion -- adjusted income after fin
    (SEK0.2) billion;
(c) Earnings per share (SEK0.17);
(d) Operating expense run rate SEK42 billion -- down SEK 5
    billion sequentially;
(e) Cash flow before financing SEK5.1 billion -- significantly
    strengthened financial position.

                        Second quarter    First quarter
                       2003 2002 Change     2003 Change
SEK billion
Orders booked, net     28.3 35.3 -20%        27.1 5%
Net sales              27.6 38.5 -28%        25.9 7%
Adjusted gross margin (%)
                       35.1% 32.5% -         34.1% -
Adjusted operating income
                       -0.2 -2.5   -         -3.4  -
Adjusted income after
financial items        -0.2 -3.1   -         -3.5  -
Net income             -2.7 -2.7   -         -4.3  -
Earnings per share    -0.17 -0.25  -         -0.27 -
Cash flow before financing activities
                       5.1  -2.0   -          0.7  -
Opex run rate, annualized
                        42   57  -26%          47  -11%
Number of employees 57,644 76,221 -24%     60,940  -5%


Book-to-bill was above one for the second consecutive quarter with order
bookings increasing by 5% sequentially to SEK28.3 (35.3) billion.  Net sales
in the second quarter grew 7% sequentially to SEK27.6 (38.5) billion.
Foreign currency exchange rate differences have had a negative effect of 9%
year-over-year.

Adjusted gross margin improved sequentially by one percentage point to 35.1%
(32.5%) as a result of ongoing restructuring.  Operating expense reductions
are well on track, reaching an annualized run-rate of SEK42 (57) billion.
Adjusted income after financial items was (SEK0.2) (-3.1) billion compared
to (SEK3.5) billion in the first quarter.  Foreign currency exchange rate
differences have had a negative effect of SEK0.5 billion year-over-year.

Cash flow before financing was SEK5.1 (-2.0) billion with major
contributions from reductions in working capital and customer financing.
The financial position continues to strengthen with a net of financial
assets and liabilities of SEK11 billion.  Payment readiness remains high at
SEK68.8 (33.5) billion

CEO COMMENTS

"We remain determined to return to profit during 2003.  Over eight quarters
we have more than halved our operating expenses and are approaching our
earlier announced cost targets.  I am impressed with how our employees are
carrying out this dramatic downsizing in the middle of the ongoing launches
of new technology.  We are encouraged by a third quarter of positive cash
flow and a strengthened financial position," says Carl-Henric Svanberg,
President and CEO of Ericsson.

"But we are not satisfied.  We see clear potential for further gross margin
improvements and by establishing operational excellence we will secure the
profitability and cost advantages attainable by the market leader.

Our customers are increasing their focus on end-user benefits and on
financial performance.  Through development of operational excellence we
will secure faster deliveries and quicker response to changing needs.

In the longer-term perspective I remain confident in the market
opportunities.  The number of subscribers continues to grow, they also talk
more and are increasing their use of data services including broadband.
Frequent users of data services spend more minutes on voice as well, making
such services important to attract and retain the high volume users.  This,
along with the introduction of more mobile data optimized handsets and new
applications, will drive the need for capacity expansion.

Our 2G GSM business is sound with the second consecutive quarter of
increased order intake, and, as we approach one million WCDMA subscribers,
3G is now starting to become a commercial reality for the operators.  We
have supplied equipment for seven of the nine commercially launched 3G
networks.  In addition, we have supplied the world's first commercial EDGE
network, launched by Cingular Wireless.  We are clearly in the forefront of
both 2G and 3G mobile systems.

The market for professional services continues to develop in our favor.  We
have the industry's strongest service portfolio built on our large installed
base, unique know-how, local presence and proven ability to integrate and
manage networks with equipment from multiple vendors," concludes Carl-Henric
Svanberg, President and CEO of Ericsson.

MARKET VIEW

The number of mobile subscribers continues to grow on pace to exceed 1.5
billion subscribers within three years.  We expect between 165 and 180
million net additions this year with approximately 44 million during the
second quarter.  In addition, traffic is expected to further grow as
operators promote mobile internet and mobile multimedia services.

We expect the market to remain weak in the near term.  Operators continue to
reduce debt maintaining a cautious view on capital expenditure.  We are,
however, encouraged by the quick improvement of their overall debt
situation.

OUTLOOK

We maintain our view that the global mobile systems market, measured in USD,
could decline by more than 10% this year compared with 2002.  We also
maintain our view that the addressable market for professional services
should continue to show good growth.

We expect to maintain our shares of the mobile systems and professional
services markets this year.  Due to foreign exchange effects, our reported
sales in SEK will decline more than the overall market, which is estimated
in USD.

Sales for the third quarter are expected to be flat or slightly down on a
sequential basis.

OPERATIONAL REALIGNMENT

Restructuring activities lowered the annualized operating expense run rate
to SEK42 (57) billion, a sequential reduction of SEK5 billion.  The
restructuring also contributed to an improvement of the adjusted gross
margin to 35.1% (32.5%) from 34.1% in the first quarter, already within our
targets for 2003.

Total restructuring charges were SEK3.8 billion during the quarter.  SEK2.0
billion relates to previously announced reductions, which are now finalized.
SEK1.5 billion relates to the actions announced in the first quarter.
Estimated total restructuring costs for 2003 remain at SEK16.3 billion.

Cash outlays in the quarter were SEK2.4 billion Total estimated cash outlays
for 2003 is estimated to SEK15 billion and SEK5 billion for 2004.

During the quarter a contract to outsource the information technology
infrastructure to HP was signed as well as a Memorandum of Understanding
with IBM to outsource the development, implementation and maintenance of
IT-applications.  Approximately 2,000 employees will be transferred as a
result of these agreements during the coming year.

During the quarter, headcount was reduced by 3,300, bringing the workforce
to 57,600 (76,200) by the end of June.  Total number of employees will be
reduced to approximately 52,000 by year-end and will reach 47,000 during
2004.

CONSOLIDATED ACCOUNTS

FINANCIAL REVIEW

Income

In the second quarter, both orders and sales increased compared to the first
quarter with a book-to-bill ratio above 1.0 for the second consecutive
quarter.

Orders booked grew 5% sequentially to SEK28.3 (35.3) billion.  A 15%
increase in Mobile Networks orders was partially offset by lower orders in
other areas.  Orders declined year-over-year by 20%, approximately half of
which was attributable to foreign currency exchange rates, mainly a weaker
USD.

Orders in Asia Pacific increased strongly from the first quarter due to
large orders in China, Japan and Australia.  Good order development in
Eastern Europe, Middle East and Africa more than compensated for weaker
order intake in Western Europe.  In the Americas, the North American market
was flat sequentially in spite of the weakening USD while Latin America
showed a decline.

Sales grew 7% sequentially to SEK27.6 (38.5) billion but declined 28%
year-over-year.  Approximately one third of the year-over-year decline is
related to the weakening USD.  Sales in Asia Pacific were flat, with
increases in China and Australia offset by lower sales in Japan. Sales in
all other regions increased sequentially.

Gross margin adjusted for restructuring improved for the second consecutive
quarter to 35.1% (32.5%), a sequential increase of one percentage point from
34.1%.  The continued cost reductions and improved capacity utilization
offset the effects of price pressure, product mix and the weaker USD.

Adjusted operating expenses were reduced SEK1.3 billion sequentially to
SEK10.1 (14.5) billion.  The annualized run-rate was SEK42 (57), down from
SEK47 billion in the first quarter.  Operating expenses include a net
favorable impact from customer financing of SEK0.3 billion, mainly related
to released risk provisions from the sold France Telecom perpetual
convertible bonds.

Adjusted operating income was (SEK0.2) (-2.5) billion compared to (SEK3.4)
billion the previous quarter.  Adjusted income after financial items was
(SEK0.2) (-3.1) billion compared to (SEK3.5) billion in the first quarter.
Net effects of changes in foreign currency exchange rates on operating
income compared to rates one year ago were (SEK0.5) billion.  Excluding
effects from currency hedging contracts this net effect would have been
(SEK1.1) billion.

A positive adjusted income in Systems of (SEK0.6) billion was offset by a
negative result in Other Operations of (SEK0.3) billion, (SEK0.2) billion
from Sony Ericsson Mobile Communications (SMEC), and (SEK0.2) billion of
unallocated costs.

Net income was (SEK2.7) (-2.7) billion for the quarter and earnings per
share was (SEK0.17) (-0.25).

Balance sheet and financing

Working capital was reduced by SEK4.2 billion to SEK65.3 (69.6) billion in
the quarter.  The reduction is mainly attributable to trade receivables and
inventory.  Days sales outstanding (DSO) for trade receivables were 101
(108), a decrease by eight days sequentially.  Inventory turnover was more
than 5.3 (4.2) turns.

Customer financing risk exposure was reduced by approximately 40% to SEK11.8
(27.8) billion in the quarter.  This includes sales of the France Telecom
bonds and other credits, closed in the quarter but due for payment of SEK 5
billion in the third quarter. The total on-balance sheet receivables were
reduced by SEK5.5 billion.  Unutilized credit commitments were reduced to
SEK11 (25.3) billion.

In the quarter a total of SEK10 billion were repaid for the convertible bond
loan to employees (SEK4.5 billion) and other borrowings.  Through the
positive cash flow before financing activities of SEK5.1 billion net debt
improved to (SEK11) (22) billion.  The equity ratio was 36.0% (28.6%)
compared to 34.9% at the end of the previous quarter.

Cash flow

Cash flow before financing activities was positive for the third consecutive
quarter and amounted to (SEK 5.1 (-2.0) billion.  This was primarily a
result of reductions in working capital in trade receivables, inventory and
customer financing, which more than compensated for the (SEK2.7) billion net
loss for the period.

Cash flow from investing activities was SEK0.6 billion.  Customer financing
contributed SEK 3.0 billion.  Cash flow related to restructuring activities
was approximately (SEK2.4) billion.

Payment readiness remained high at SEK68.8 (33.5) billion.  For the
remainder of the year, repayments of approximately SEK2.3 billion of
long-term maturities are planned.

SEGMENT RESULTS

SYSTEMS
                      Second quarter    First quarter
SEK billion               2003 2002 Change    2003 Change
Orders booked
Mobile Networks      20.0 22.9 -13%      17.5 15%
Fixed Networks        1.7 3.0  -42%       2.0 -13%
Professional Services 4.6 5.3  -14%       5.5 -17%
Net sales
Mobile Networks      18.9 27.0 -30%      17.6 7%
Fixed Networks        2.2 3.0  -27%       1.9 15%
Professional Services 4.1 4.8 -15%        4.4 -7%
Adjusted operating income
                      0.6 -0.7 -         -2.1 -
Adjusted operating margin (%)
                       2% -2%  -          -9% -


Systems orders increased 5% sequentially to SEK26.3 (31.2) billion,
including a 3% negative impact of a lower USD. Mobile Networks increased by
15%, driven by orders for GSM and WCDMA.  Recurring service business
develops according to plan.  However, the inflow of additional Professional
Services contracts was lower compared to the first quarter.  Overall demand
for Fixed Networks remains relatively weak.

Systems sales increased 5% sequentially to SEK25.2 (34.8) billion, even with
a lower USD.  The GSM/WCDMA track increased by 10% sequentially, down 13%
year-over-year. Sales of WCDMA equipment and associated network rollout
services represented 13% of Mobile Network sales.  Total Systems sales were
affected by the phase-out of older standards.

Sales of Professional Services were SEK 4.1 (4.8) billion in the quarter,
including negative effects of foreign currency exchange rates.  Year-to-date
growth amount to 4% excluding foreign currency exchange effects.

Adjusted operating income was SEK0.6 (-0.7) billion.

OTHER OPERATIONS

                           Second quarter     First quarter
SEK billion                   2003 2002 Change     2003 Change
Orders booked             2.3 4.8  -52%        2.6 -11%
Orders booked less divestitures
                          2.3 3.2  -28%        2.6 -11%
Net sales                 2.5 4.6  -44%        2.4 7%
Net sales less divestitures
                          2.5 3.0  -16%        2.4 7%
Adjusted operating income-0.3 -1.0 -          -0.5 -
Adjusted operating income
less divestitures        -0.3 -0.5 -          -0.5 -
Adjusted operating margin (%)
                         -13% -21% -          -21% -
Adjusted operating margin
less divestitures (%)    -13% -17% -          -21% -


Other Operations has been restructured, including divestitures, which is
reflected in the year-over-year figures with an approximate volume reduction
of 50%.  Sequentially orders declined 11% and sales increased by 7%.

Adjusted operating income in the quarter improved year-over-year as well as
sequentially.

PHONES

The operating results of Sony Ericsson Mobile Communications (SEMC) improved
significantly in the quarter and Ericsson's share in earnings before
restructuring charges of SEK0.3 billion was (SEK0.2) (-0.4) billion,
compared to (SEK0.5) billion in the first quarter.  This improvement was due
to increased volumes and higher average selling prices.  Year-over-year, GSM
unit shipments increased 84% and shipments to the Japanese market increased
45% reflecting the successful introduction of new models.

Sony Ericsson Mobile Communications has decided to increase its focus on GSM
and Japanese standards and to exit the American CDMA handset standard.  In
addition, a research and development unit in Germany will be closed down.
The company expects restructuring charges of EUR70 million of which EUR58
million in the second quarter. The restructuring activities are projected to
generate yearly run-rate savings of approximately EUR120 million when
completed, with some benefit in the second half of 2003.  Sony Ericsson
Mobile Communications expects to be profitable in the second half of 2003.

RELATED PARTY TRANSACTIONS

Sony Ericsson Mobile Communications

SEK million           Second quarter 2003   Second quarter 2002
Sales to SEMC             934             1,315
Royalty from SEMC         154               168
Purchases from SEMC        488             1,156

Receivables from SEMC      155               292
Liabilities to SEMC        616               323

Parent Company information

The Parent Company business consists mainly of corporate management and
holding company functions.  It also includes activities performed on a
commission basis by Ericsson Treasury Services AB and Ericsson Credit AB
regarding internal banking and customer credit management.  The Parent
Company has branch and representative offices in 16 (16) countries.

Net sales for the six months period amounted to SEK0.9 (0.8) billion and
income after financial items was SEK2.8 (1.1) billion

Major changes in the company's financial position for the six months period
were:

        Increased current and long-term commercial and financial
        receivables from subsidiaries of SEK22.6 billion
        Decreased current other receivables of SEK 2.8 billion
        Decreased cash and short-term cash investments of SEK
        2.1 billion

The investments were primarily financed through increased internal
borrowings of SEK24.6 billion.  During the second quarter repayments of
current maturities of long-term loans amounted to SEK 8.7 billion.  At the
end of the quarter, cash and short-term cash investments amounted to SEK57.2
(59.3) billion.  Customer financing credits, including France Telecom
perpetual convertible bonds, were sold in the quarter with payments of SEK5
billion to be received in the third quarter.

As per July 1, 2003 test plant lease agreements between the Parent Company
and subsidiaries have been transferred to the subsidiary Ericsson Test
Environments AB.

In the second quarter, as decided at the Annual General Meeting, a stock
issue and a subsequent stock repurchase was carried out related to the 2003
employee Stock Purchase Plan. 158 million of Ericsson Class C shares were
issued and later repurchased as treasury stock.  These shares have been
converted to Ericsson Class B shares.  The stock issue increased the capital
stock in restricted stockholders equity by SEK158 million and the repurchase
reduced non-restricted equity by SEK158 million.

In accordance with the conditions of the 2001 Stock Purchase Plan for
Ericsson employees, 918,200 shares from treasury stock were distributed
during the second quarter to employees who left Ericsson.  An additional
94,300 shares were sold during the second quarter in order to cover social
security costs related to the Stock Purchase Plan.  The holding of treasury
stock at June 30, 2003, was 309,552,865 Class B shares.

Carl-Henric Svanberg
President and CEO
Date for next report: October 30, 2003

Auditors' Report

We have reviewed the report for the six-month period ended June 30, 2003,
for Telefonaktiebolaget LM Ericsson (publ.).  We conducted our review in
accordance with the recommendation issued by FAR.  A review is limited
primarily to enquiries of company personnel and analytical procedures
applied to financial data and thus provide less assurance than an audit.  We
have not performed an audit and, accordingly, we do not express an audit
opinion.

Based on our review, nothing has come to our attention that causes us to
believe that the second quarter report does not comply with the requirements
for interim reports in the Annual Accounts Act.

Stockholm, July 18, 2003

Carl-Eric Bohlin Bo Hjalmarsson Thomas Thiel
Authorized Public Accountant Authorized Public Accountant Authorized Public
Accountant
PricewaterhouseCoopers AB PricewaterhouseCoopers AB

CONTACT:  LM ERICSSON
          Henry Stenson, Senior Vice President, Communications
          Phone: +46 8 719 4044
          E-mail: henry.stenson@ericsson.com

          Investors
          Gary Pinkham, Vice President, Investor Relations
          Phone: +46 8 719 0000
          E-mail: investor.relations@ericsson.com

          Lotta Lundin, Investor Relations
          Phone: +46 8 719 0000
          E-mail: lotta.lundin@ericsson.com

          Glenn Sapadin, Investor Relations
          Phone: +1 212 843 8435
          E-mail: investor.relations@ericsson.com

          Lars Jacobsson, Vice President
          Financial Reporting and Analysis
          Phone: +46 8 719 9489, +46 70 519 9489
          E-mail: lars.e.jacobsson@ericsson.com


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


SWISS LIFE: U.K. Unit's Rating Unaffected by Individual Biz Exit
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and outlook on
Swiss Life (U.K.) PLC (BBB/Developing/--), a wholly owned subsidiary of
Swiss Life/Schweizerische Lebensversicherungs- und Rentenanstalt AG (Swiss
Life;
A-/Negative/--), are unaffected by Thursday's announcement that Swiss Life
(U.K.) is to close to new individual business.  The decision follows Swiss
Life's inability to sell Swiss Life (U.K.).  Swiss Life (U.K.) will continue
to write group business (including international pooling business) until at
least mid-August, at which time a decision will be made over the future of
the business.

The ratings on Swiss Life (U.K.) reflect the company's good capitalization
and satisfactory earnings, although the closure to new individual business
places additional pressure on the ratings as a result of an increased need
to manage expenses in run-off.  However, closure should also result in the
release of new business strain inherent in an ongoing business.


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


BRITISH AIRWAYS: Submits Special Resolutions to Regulator
---------------------------------------------------------
In accordance with Rule 9.31(b), these documents have been delivered to the
Document Viewing Facility at The U.K. Listing Authority: special resolution
to amend the Articles of Association, and special resolution regarding
allotment of shares and waiver of pre-emption rights.

                     *****

Standard & Poor's, which rated British Airways PLC long-term corporate
credit and senior unsecured debt ratings 'BB+' and 'BB-,' respectively said
that the end of the airline's fleet renewal program will allow management to
dedicate most company cash flows to debt repayment, although it will take
several years before the company can significantly reduce its net
debt-to-capital ratio.


BRITISH AIRWAYS: Flights Back to Normal as Strike Ends
------------------------------------------------------
British Airways' flights from London Heathrow returned to normal on Sunday
July 20.  The airline expects to operate a full schedule of flights Monday.
Customers, who were booked to travel on flights this evening and tomorrow,
were advised to come to the airport according to schedule.

Passengers who were booked on services which have been cancelled during the
past two days were asked not to travel to the airport to re-book their
flights, but to call the airline's reservation line on 0870 850 9850 or the
special customer helpline number on 0800 727 800.

So far, British Airways has operated 113 flights from Heathrow on Sunday and
the airline expected to operate a further 133 flights out of Heathrow Sunday
evening.  A total of 18 European outbound services were cancelled on Sunday
as a knock-on effect to yesterday's disruption.

Mike Street, director of customer service and operations, said: "We are
extremely sorry for the inconvenience caused to everyone booked on our
flights during the past two days.  We are doing everything we can to get as
many customers as possible to their destinations today. Once again, we
apologize sincerely for the disruption caused to our customers' travel
plans."


BRITISH AIRWAYS: Meets with Unions to Prevent More Walkout
----------------------------------------------------------
Amicus, the union that represents 20,000 civil aviation staff, was scheduled
to meet with joint unions and management at British Airways HQ yesterday,
July 21, to discuss the carrier's plan to change working practices that
caused the weekends wildcat strikes.

The union fears that swipe card proposals may still be on the table but
hopes that a negotiated solution can be reached to prevent more disruption
to holiday makers.  Kevin Egan, Amicus Regional Officer, said: "Heathrow was
like a refugee camp on Saturday.  Our number one priority must be to prevent
any further disruption to people's holiday plans.  The company, the
employees and the unions must do everything in their power to find a
solution to this weekends situation."

On Friday, Amicus, who represents 20,000 civil aviation staff, formally
asked British Airways to withdraw proposals to change working conditions for
check in staff, which has resulted in the unofficial walk out at Heathrow
Terminals 1, Terminal 3 and Terminal 4.  The union assures the staff will
return to work if British Airways agrees not to implement new swipe card
proposals today.


CALEDONIA INVESTMENTS: Chair Disputes Basis for Liquidation Call
----------------------------------------------------------------
At the company's annual general meeting Peter Buckley, Chairman, made these
comments:

"I would just like to highlight the key features of Caledonia's past
financial year.  I shall start with performance.  Ultimately the company
must be judged on this and it is good relative and absolute performance that
creates best value for our shareholders.  Market conditions over the past
three years have been as bad as, if not worse than, any in living memory --
but I am pleased to say that Caledonia's record in this context has been
outstanding.  Over the short, medium and long term which are defined as one,
five and ten years, Caledonia's total shareholder return to June 30, being
the date of our last reported net asset value per share, has outperformed
that of the FTSE All Share Index by 19, 33 and 79%.  Furthermore Caledonia
has produced positive returns over all three of those periods.  In contrast
the FTSE All Share return has been negative over one and five years and only
positive over ten years.

"To put it another way, GBP100 invested a year ago in Caledonia shares, with
the dividend reinvested, would have grown to be worth nearly GBP110 by the
end of June.  The same GBP100 invested in the average FTSE share would have
reduced in value to around GBP90.  Over five years, the GBP100 in Caledonia
would have grown to over GBP115, whereas in the average FTSE share, the
GBP100 would have shrunk to be worth little more than GBP82.  And over ten
years with Caledonia, the GBP100 invested becomes nearly GBP270, which
compares very favorably with GBP191 for the average FTSE share.

"We have also been a top quartile performer amongst our peer group, the
Association of Investment Trust Global Growth sector, over 3 months, 6
months, 1 year, 3 years, 5 years and 10 years and for 5 of the 6 periods, a
top decile performer.

Long-term record of dividend increases

"The annual dividend payable to shareholders has been increased for each of
the past 36 years at an annual compound rate of over 9%.  We can't fully
track the comparable statistics but only a sprinkling of companies can match
that record.

"In saying this I am acutely conscious of the perils of hubris and I would
never suggest that we can be certain to maintain this outperformance forever
but we have managed it for some time now and we shall always strive to do
our best.

"One feature that underpins our progressive dividend policy is the
substantial quantum of our distributable reserves.  We have taken particular
care on conversion to investment trust status to preserve these reserves
for, as you know, investment trusts are prohibited from distributing gains
arising from the realization of investments.  On conversion, our
distributable reserves amounted to some GBP460 million, or nearly 25 times
our present annual dividend distribution, and these should give us the
flexibility to maintain our policy of progressive annual dividends.

Strengthening of the board

"I would also like to make mention of the continued strengthening of our
board of directors by the recent appointment of David Thompson as an
independent non-executive director.  David joins Charles Allen-Jones and
Mark Davies, who were also appointed in the last 18 months or so, all
bringing with them highly relevant skills and backgrounds of very
considerable achievement.  This is also the first year when Joe
Burnett-Stuart is not with us, having retired at the end of last December,
after twelve years of very valuable service.  I would like to thank him
firstly for staying on beyond his originally agreed retirement date of this
time last year -- which he kindly did to provide continuity following the
untimely death of Adrian Evans -- but more importantly for the outstanding
contribution which he brought to our discussions over his many years of
service.

"It is also just over twelve months since Tim Ingram joined us as chief
executive and he has already made a considerable and a very positive
contribution to our affairs.

Achievement of investment trust status

"In particular he has led our successful transition to investment trust
status, which was overwhelmingly endorsed by shareholders at an EGM on
February 12, this year.  This was an entirely logical move for Caledonia to
make and we were able to take advantage of a low point in the market, which
minimized the cost to shareholders.  As part of the process Tim reviewed our
strategy and concluded that, although our approach should be refined, we
would not alter our methods of operation or style.  Indeed it was important
to us that these would not be affected by our transition to Investment Trust
status -- save only to relieve us of the burden of paying capital gains tax,
which should in turn lead to better overall returns for shareholders if we
can maintain our performance.  This, in the jargon therefore, all amounts to
a Win - Win situation and was resoundingly endorsed as such at the EGM.

Share price discount to net asset value per share

"Part of our strategy is to broaden Caledonia's appeal as an interesting
investment vehicle for retail investors and we have already made progress in
this respect.  We have begun a program of presentations to retail fund
managers and stockbrokers and are working on introducing an ISA wrapper
alongside our existing share savings plan.  Over time, these initiatives
should help to provide a wider shareholder base and to narrow the discount
of the share price to underlying net asset value per share.  On this front
we are pleased to report that a steady and meaningful reduction in the
discount has already taken place.  On September 30, last year - the last
record date before we announced our conversion to IT status - the discount
stood at 33.5%.  At our recent financial year end on March 31, the discount
had reduced to 29.8% and at the 30th June, when we last published our net
asset value, the discount had fallen further to 22.4%.

The recent proposals

"This brings me to the unfortunate leaks in the press about the proposal
from Deutsche Bank on behalf of dissident Cayzer family shareholders to
liquidate Caledonia Investments.  As you now know, we did receive a formal
approach, which we took most seriously but, after taking advice from
Rothschild and Cazenove, the board unanimously considered that the proposals
were not in the best interest of all shareholders.  In view of the leaks, we
formally announced this opinion on July 7 and since then nothing has
happened to cause us to change our mind.  I would only comment that it seems
faintly absurd to seek to demolish
a successful business that has done so well for its shareholders.  I am,
however, pleased to tell shareholders that the board of Caledonia has been
informed by The Cayzer Trust Company that it is actively seeking a
resolution of the dispute which has arisen amongst its own shareholders.

To sum up

(a) Caledonia has delivered excellent performance over the
    short, medium and long term against its benchmark.

(b) Caledonia will have increased its annual dividends for an
    unbroken period of 36 years.

(c) Caledonia has recently strengthened its board by the
    appointment of three new independent non-executive directors
    and a new chief executive.

(d) Caledonia has successfully converted to investment trust
    status.

(e) Caledonia's share price discount to its underlying net asset
    value per share has reduced markedly.

"Finally the board remains fully committed to its clearly documented
business strategy, which was overwhelmingly endorsed by shareholders at the
EGM in February, and will seek to continue to implement this for the benefit
of all shareholders."

Peter Buckley
Chairman

July 18, 2003

CONTACT:  COLLEGE HILL
          Phone: 020 7457 2020
          Alex Sandberg
           Tony Friend


CORUS GROUP: Banks Back GBP1 Billion Refinancing Package
--------------------------------------------------------
Struggling steel company Corus Group PLC has won backing from its lead banks
for a GBP1 billion financing package, a three-year debt facility to replace
the existing EUR1.4 billion banking facility, which is due to expire on
January 30, 2004.

According to The Scotsman, Corus has secured the final backing of its lead
banks, ABN AMRO, Credit Suisse First Boston and HSBC, for the new
refinancing package.

A Corus spokesman was cited saying, the British-Dutch company is "making
good progress" in talking to all 17 banks and that negotiations are expected
to be completed by midsummer.

The financially strapped group announced last month that heads of terms had
been agreed with its coordinating banks.  It also said that Corus Nederland
B.V.'s Management Board is informing its Central Works Council that the
terms of the new committed medium term facility will include the provision
of security over, inter alia, the shares of Corus Nederland B.V. and the
intermediate holding companies above it.

Corus has been hit by fierce competition amid an economic downturn and has
axed thousands of jobs to help cut costs.

Standard & Poor's Ratings Services last month lowered its long-term
corporate credit, senior unsecured debt, and bank loan ratings on the
U.K.-based steel consortium and related entities to 'B' from 'BB-',
following a review.

Credit analyst Olivier Beroud said: "Standard & Poor's expects European
steel prices to fall in the second half of 2003 and it is likely, therefore,
that Corus will only be able to generate funds from operations or free
operational cash flows in line with what is expected of a 'B' rating
category at best."


HP BULMER: Scottish & Newcastle Closes Offer with 92.3% Control
---------------------------------------------------------------
On April 28, 2003, Scottish & Newcastle announced the terms of recommended
offers for the issued and to be issued ordinary and preference share capital
of Bulmers.  The Offers were made by UBS Investment Bank* on behalf of
Scottish & Newcastle by means of an offer document published on May 15,
2003.  On July 1, 2003, Scottish & Newcastle announced that all conditions
to the Offers had been satisfied or waived and that the Offers had been
declared unconditional in all respects.

Scottish & Newcastle announces Friday that, as at 3.00 p.m. London time on
July 17, 2003:

(a) Valid acceptances of the Ordinary Offer had been received by
    Scottish & Newcastle in respect of a total of 46,822,689
    Bulmers' ordinary shares, representing approximately 88.1%
    of the issued ordinary share capital of Bulmers.
    Irrevocable undertakings were received from the Bulmers
    directors and certain other Bulmers ordinary shareholders
    (as set out in the Offer Document) in respect of aggregate
    holdings amounting to 13,534,832 Bulmers Ordinary Shares,
    representing in aggregate approximately 25.5% of the issued
    ordinary share capital of Bulmers.

    Valid acceptances with respect to 13,341,684 Bulmers
    Ordinary Shares representing 25.1% of the issued ordinary
    share capital of Bulmers have been received pursuant to the
    irrevocable undertakings and are included in the acceptances
    figure above.  As announced on April 29, 2003, on April 28,
    2003 Scottish & Newcastle acquired 2,205,238 Bulmers
    Ordinary Shares representing approximately 4.2% of the
    issued ordinary share capital of Bulmers.

    Accordingly, Scottish & Newcastle now owns, or has received
    valid acceptances of, or holds irrevocable undertakings to
    accept the Ordinary Offer in respect of, a total of
    49,027,927 Bulmers Ordinary Shares, representing 92.3% of
    the issued ordinary share capital of Bulmers.

(b) Valid acceptances of the offer for Bulmers' 9.5% first
    preference shares ('First Preference Shares') had been
    received in respect of a total of 990,140 First Preference
    Shares, representing approximately 72.5% of the issued First
    Preference Share capital of Bulmers.  Scottish & Newcastle
    has also acquired 350,125 First Preference Shares,
    representing approximately 25.6% of the issued First
    Preference Share capital of Bulmers.  Accordingly, Scottish
    & Newcastle now owns or has received valid acceptances in
    respect of a total of 1,340,265 First Preference Shares,
    representing 98.1% of the issued First Preference Share
    capital of Bulmers.

(c) Valid acceptances of the offer for Bulmers' 8.75% second
    preference shares ('Second Preference Shares') had been
    received in respect of a total of 17,939,013  Second
    Preference Shares, representing approximately 86.5% of the
    issued Second Preference Shares.  Scottish & Newcastle has
    also acquired 2,051,537 Second Preference Shares,
    representing approximately 9.9% of the issued Second
    Preference Share capital of Bulmers.  Accordingly, Scottish
    & Newcastle now owns or has received valid acceptances in
    respect of a total of 19,990,550 Second Preference Shares,
    representing 96.4% of the issued Second Preference Share
    capital of Bulmers.

Save as disclosed above, neither Scottish & Newcastle nor any person acting,
or deemed to be acting, in concert with Scottish & Newcastle held Bulmers'
shares (or rights over Bulmers' shares) immediately before the commencement
of the offer period or, during the offer period, has acquired or agreed to
acquire
Bulmers' shares (or rights over Bulmers' shares) and no acceptances of the
Offers have been received from any persons acting, or deemed to be acting,
in concert with Scottish & Newcastle.

Scottish & Newcastle also announces that the Offers are now closed.  Any
acceptances received after 3.00 p.m. London time on July 17m 2003 will be
invalid and will not be accepted by Scottish & Newcastle.  Scottish &
Newcastle will implement in due course the necessary procedures to acquire
compulsorily, pursuant to Sections 428 to 430 of the Companies Act 1985,
those Bulmers Ordinary Shares, First Preference Shares and Second Preference
Shares for which valid acceptances have not been received.

(*UBS Investment Bank (previously referred to as UBS Warburg) means UBS
Limited)

CONTACT:  SCOTTISH & NEWCASTLE
          Jeremy Blood
          Bridget Walker (Investors)
          Linda Bain (Media - City)
          Phone: +44 (0) 131 528 2000

          BULMERS
          Richard Pennycook
          Phone: +44 (0) 7974 447 900

          UBS INVESTMENT BANK
          (Financial adviser and Broker to Scottish & Newcastle)

          Heino Teschmacher
          John Muncey
          Tim Waddell
          Phone: +44 (0) 20 7567 8000

          LAZARD (Financial adviser to Bulmers)
          Sarah Hedger
          Phone: +44 (0) 20 7187 2000

          CAZENOVE
          (Financial adviser and sole Broker to Bulmers)
          Michael Wentworth-Stanley
          Phone: +44 (0) 20 7588 2828


INVENSYS PLC: May Announce Sale of Energy Business at AGM
---------------------------------------------------------
Invensys could announce the sale of its US-based water metering division at
Wednesday's annual meeting instead of the whole energy division as expected,
according to The Guardian.  The unit could be worth GBP600 million,
according to analysts.
Earlier, shares in the U.K. engineer rose 16% gaining for the fourth day in
five on speculation that Morgan Stanley, which is advising Invensys on its
disposal program, has received a 1.6 billion-pound offer for its energy
unit.

Company spokesman Duncan Bonfied refused to comment on the matter saying
Invensys does not comment on speculations.

Invensys, which has GBP2.3 billion of debt and pension liabilities, is
selling more than half of its businesses to reduce borrowings and contain
the drops in orders for products.  It already has sold its U.S.-based
semiconductor business to Littelfuse Inc. for $44 million.


MARCONI CORPORATION: Reveals Additional Severance Payments
----------------------------------------------------------
The recently published annual report of Marconi Corporation revealed that
the telecoms company has incurred additional costs in severing ties with its
former directors, according to independent.co.uk.

The report said Steve Hare received GBP728,000 in severance pay in addition
to his salary of GBP312,000 plus a GBP394,000 bonus for eight month's work.
Former deputy chief executive John Mayo, who claimed from the firm GBP1.6
million in pension and tax contributions, received GBP898,000 of the amount.
The money is in addition to the GBP2.3 million he already received for the
three months he worked for the group in 2001, including a GBP600,000
termination payment.

Mr. Hare and Mr. Mayo were among those held responsible for bringing the
company towards a controversial profits warning in June 2001.  The Financial
Services Authority mentioned the two, together with former colleagues Sir
Roger Hurn and Lord Simpson on its investigation.

Marconi refused to comment on the payouts for its former directors,
according to the report.


MARCONI CORPORATION: Lists Two Million More Ordinary Shares
-----------------------------------------------------------
Application has been made to The U.K. Listing Authority and the London Stock
Exchange for a block listing of 2,000,000 ordinary shares of 5p each in
relation to the exercise of warrants, to trade on the London Stock Exchange
and to be admitted to the Official List upon issuance.

The shares will rank pari passu with the existing issued shares of the
company.

Copies of this announcement are available from the office of Cazenove &
Corporation Ltd. for the period of two business days from the date hereof.

                     *****

On its recent trading update Marconi said market conditions remain very
tough, and as such the group "continues to take a cautious view of the
near-term business environment.  It further said it "does not expect to see
a significant recovery in sales in the second quarter ending 30 September
2003."


MOTHERCARE PLC: Sales Increase 1.9% Despite Closure of 13 Stores
----------------------------------------------------------------
At the Mothercare Annual General Meeting, Ian Peacock, Chairman, issued this
update on trading:

"The improvement in trading reported with our preliminary results in May has
continued.  U.K. like-for-like store sales for the first 15 weeks of the
current financial year to July 11, 2003 are up 3.4% on the same period last
year.

In the last year we closed 13 stores and opened 5 stores, leading to a net
sales decline due to space change in the period of 1.5%.  Notwithstanding
this impact, overall U.K. store sales increased by 1.9%.

Warehousing and Distribution is now working effectively and the resulting
availability improvement has benefited both sales and margins.

Gross margin is showing an improvement on last year of some +5 percentage
points, largely due to a greater emphasis on full price trading and improved
buying margins.  However, this increase is before the full impact of our
Summer Sale markdowns, which are likely to reduce the improvement to
approximately +4 percentage points, subject to the level of promotional
activity undertaken.

The International and Direct businesses continue to perform to expectations.

These improvements in both sales and margins are encouraging signs that the
business is on the right track.  However, it is early in the financial year
and we are measuring against a poor and volatile performance in the previous
year."

CONTACT:  MOTHERCARE PLC
          Ben Gordon, Chief Executive
          Phone: 01923 206 001
          Steven Glew, Financial Director
          Phone: 01923 206 140

          BRUNSWICK GROUP LIMITED
          Philippa Power/Chi Lo
          Phone: 020 7404 5959


MYTRAVEL GROUP: Nears Refinancing Deal with Bondholders
-------------------------------------------------------
MyTravel Group, the tour operator that suffered after a string of accounting
scandals and profit warnings, is reportedly close to giving bondholders 20%
stake in the company under the terms of its rescue deal.

AFX News, citing a report from the Sunday Telegraph, said the struggling
package holiday firm is nearing an agreement on a deal to refinance STG215
million of bonds, the terms of which include the bonds retaining their face
value but with a new higher rate of interest.

MyTravel recently reported a first-half loss of GBP619 million, including
GBP248 million write-off on assets such as planes and ships.  It plans to
cut 2,000 jobs in a bid to stave off a collapse.


SCHRODER EMERGING: Board Proposes Scheme of Reconstruction
----------------------------------------------------------
The Board of Directors of Schroder Emerging Countries Fund plc announces
that at an extraordinary general meeting of the company's shareholders held
Wednesday, the resolution proposing that the company undertake the scheme of
reconstruction described in the circular sent to shareholders dated June 20,
2003 was duly approved.  The extraordinary general meeting of the company's
warrantholders due to be held Wednesday last week was moved tomorrow, July
23, 2003 at 12 noon.  Implementation of the scheme of reconstruction is
contingent upon approval from the company's warrantholders.

Results of elections

Valid elections or deemed elections under the scheme of reconstruction were
received as:

(a) Holders of 58,314,856 Ordinary Shares in the Company elected
    to receive a cash distribution in the proposed liquidation
    of the company

(b) Holders of 35,926,944 Ordinary Shares in the Company elected
    or were deemed to have elected to receive units in the
    rollover vehicle, namely the Schroder Global Emerging
    Markets Fund unit trust (Schroder GEM)

The Company's issued share capital will be reclassified by reference to
elections made or deemed to be made by shareholders, with those shares
elected for units in Schroder GEM being reclassified as Ordinary Shares with
'A' rights and those shares elected (or deemed to be elected) for cash being
reclassified as Ordinary Shares with 'B' rights.

Entitlements

Shareholders' entitlements pursuant to the scheme will be announced by the
company in due course.  Assuming that the scheme is approved, it is expected
that units in Schroder GEM will be allotted to the relevant shareholders on
Friday July 25 and that cheques in respect of cash distributions will be
posted to the relevant shareholders during the week commencing July 28.

Reclassified Shares

In accordance with the terms of the scheme of reconstruction, application
has been made to the London Stock Exchange and the UK Listing Authority for
the reclassified shares to be admitted to the Official List on July 17,
2003.  Listing of and dealings in the reclassified shares is expected to be
suspended at 7.30
a.m. on July 18, 2003.

Second Extraordinary General Meeting

The second extraordinary general meeting of the Company's shareholders will
be held at 9.00 a.m. on Friday July 25, 2003.  At this meeting a special
resolution will be proposed for the winding-up of the Company and the appoin
tment of liquidators, and an extraordinary resolution will also be proposed
to confer appropriate powers on the liquidators.

Dresdner Kleinwort Wasserstein Securities Limited, which is regulated by the
Financial Services Authority, is acting for the Company and for no-one else
in connection with the contents of this announcement and will not be
responsible to anyone other than Schroder Emerging Countries Fund plc for
providing the protections afforded to customers of Dresdner Kleinwort
Wasserstein Securities Limited, or for affording advice in relation to the
contents of this announcement or any matters referred to herein.

CONTACT:  SCHRODER EMERGING COUNTRIES FUND PLC
          The Hon. Rupert Carington, Chairman
          Phone: 020 7658 3206

          SCHRODER INVESTMENT MANAGEMENT LIMITED
          Robin Stoakley
          Phone: 020 7658 3567

          DRESDNER KLEINWORT WASSERSTEIN
          Andrew Zychowski
          Phone: 020 7475 6681


SCHRODER EMERGING: Company Profile
----------------------------------
NAME: Schroder Emerging Countries Fund PLC
      31 Gresham Street
      London
      EC2V 7QA
      United Kingdom

PHONE: (020) 7658 6000

FAX: (020) 7658 6965

WEBSITE: http://www.schroders.com/

TYPE OF BUSINESS: Schroder Emerging Countries Fund plc is an investment
trust listed on the London Stock Exchange and the New Zealand Stock
Exchange.  It is an independent investment trust managed by Schroder
Investment Management North America Limited and administered by
Schroder Investment Management Limited.  Both SIMNA and SIM are fund
management subsidiaries of Schroders plc.

NON-EXECUTIVE DIRECTORS:
     The Hon. Rupert F J Carington
     Sir John A Birch KCVO CMG
     Professor Victor G Bulmer-Thomas OBE
     C John Govett LVO
     John Troiano

MAJOR SHAREHOLDERS:
     94.24m 10p Ords - Advance Developing Markets Tr (10.46%)
     Lazard Asset Management (5.52%)
     Bank of New York (Noms) Ltd. (3.50%)
     Credit Lyonnais Securities (3.44%)
     Bear Stearns Int. Trading Ltd. (3.43%)
     Other Dirs (0.26%)

BANKERS: JP MORGAN CHASE BANK (Ireland)
         125 London WAll
         EC2Y 5AJ

REGISTRARS: LLYODS TSB REGISTRARS SCOTLAND
            P.O. Box 28448
            Finance House
            Orchard Brae
            Edinburg EH4 1WQ

            Computershare Registry Services Limited
            Leverl 3, 277 Broadway
            Newmarket
            Aucland
            New Zealand

INVESTMENT MANAGER: SCHRODER INVESTMENT MANAGEMENT
                    North American Limited
                    31 Gresham Street
                    London EC2V 7QA

AUDITORS: DELOITTE & TOUCHE
          Stonecutter Court
          1 Stonecutter Street
          London EC4A 4TR

LAW FIRMS: SLAUGHTER AND MAY
           One Bunhill Row
           London EC1Y 8YY

To See Financial Results: http://bankrupt.com/misc/Schroder_Emerging.htm


TELEWEST COMMUNICATIONS: Under Siege by Largest Bondholder
----------------------------------------------------------
The largest bondholder of cable company Telewest, Bill Huff, has attempted
to seek the winding-up of the company, according to the Times.

In a Securities and Exchange filing, Telewest said Mr. Huff has sued the
firm in New York for alleged fraudulent stock exchange statements in the
context of a bond tender offer issued by the company's major shareholder,
Liberty Media.  He has also revealed joining a High Court winding-up
petition brought last year by Credit Agricole and the Royal Bank of Scotland
in respect of a GBP10 million foreign exchange debt, by virtue of his
claimed holdings of a fifth of the company's bonds.  Mr. Huff signed up on
the petition almost at the same time as the New York petition.  The timing
roused speculations the two actions are part of a concerted move.

The proceedings of the New York petition were issued in the first half of
June.  It was understood to be part of the negotiating strategy of Mr. Huff'
s hedge fund WR Huff Asset Management.  The fund is seeking to win board
representation, as part of a revised restructuring agreement that is
currently being negotiated.

Telewest declined to comment, but observers believe the moves could just be
Mr. Huff's strategy to maximize his growing leverage over the company,
according to the report.  It is the general feeling that both the New York
claim, and the London winding-up petition would never prosper.


WILLINGTON PLC: Ships Subsidiary to Corrie McColl
-------------------------------------------------
Willington plc announces that it has agreed to transfer the goodwill
(including rights to use the R.E.B. Willcox name under license) and current
employees of its subsidiary R.E.B. Willcox Limited to Corrie McColl and Son
Limited with effect from the close of business on July 15, 2003 for a
nominal consideration.

The remaining assets and liabilities of Willcox will be retained in the
Willington group and will be liquidated over a period of months by
performance of outstanding contracts, which liquidation is expected to
reflect positively in the company's financial results.

The effect of the disposal will be to realize cash through such liquidation,
which cash (net of any associated taxes and expenses) will be utilized to
reduce group borrowings and to enable resources made available as a
consequence of the transfer to be redeployed efficiently elsewhere within
the group.

CONTACT:  WILLINGTON PLC
          Vincent Troy
          Phone: 020 7419 0100


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                                Shareholders  Total    Working
                                   Equity     Assets   Capital
                        Ticker     (US$MM)    (US$MM)   (US$MM)
                        ------   -----------  ------   --------
AUSTRIA
-------
Libro AG                            (111)         174     (182)

BELGIUM
-------
Mobistar SA               MOSG       (30)       1,039      (61)
Real Software             REAL       (35)         244       (1)

CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
   Danek Praha Holding               (89)         192    (2,186)

DENMARK
-------
Elite Shipping                       (28)         101        19

FRANCE
------
Banque Nationale
   de Paris Guyane                   (41)         352       N.A
BSN Glasspack                       (102)       1,151       179
Bull SA                   BULP       (39)       1,512       (17)
Centrest Societe
   de Developpement
   Regional                         (132)         252       N.A.
Compagnie
   des Machines Bull                  (6)         231        (3)
Compagnie Francaise de
   l'Afrique Occidentale             (66)         256        21
Cofidur SA                            (5)         102        19
Dollfus-Mieg & Co.        DOLP         0          187        28
European Computer System            (110)         682       377
Financiere St. Fiacre                 (1)         111        33
France Telecom            FTE       (180)     111,959   (31,035)
Grande Paroisse SA                  (845)         383       107
Immobiliere Hoteliere     HOIN       (66)         185       (54)
Pneumatiques Kleber SA               (34)         480       139
Sa des Usines Chausson               (23)         249        35
SDR Picardie                        (135)         413       N.A.
Soderag                               (3)         404       N.A.
Sofal SA                            (305)       6,619       N.A.
Spie-Batignolles                     (16)       5,281        75
St Fiacre (FIN)                       (1)         111       (33)
Trouvay Cauvin            TRCN         0          134        10
Usines Chauson                       (23)         249        35

GERMANY
-------
Dortmunder
   Actien-Brauerei        DABG       (13)         118       (29)
Edel Music AG             EDLG       (66)         353      (159)
Eurobike AG               EUBG       (32)         158       (31)
F.A. Guenther & Sohn AG   GUSG        (8)         111       N.A.
Kaufring AG               KAUG       (19)         151       (51)
Nordsee AG                            (8)         195       (31)
Schaltbau AG              SLTG       (16)         163        20
Vereinigter
   Baubeschlag-Handel
   Holding AG             VBHG       (24)         306       (63)

ITALY
-----
Binda SpA                 BND        (11)         129       (20)
CIRIO FINANZIARI          CBDI      (422)       1,583      (396) Credito
Fondiario
   e Industriale SpA      CRF       (200)       4,218       N.A.

NETHERLANDS
-----------
Baan Company N.V.         BAAN        (8)         610        46

NORWAY
------
Northern Oil ASA          NOI         (9)         204      (272)
Pan Fish ASA              PAN       (117)         806       259
Petroleum-Geo Services    PGO        (32)       2,963     5,250

POLAND
------
Animex SA                             (1)         108       (86)
Exbud Skanska SA          EXBUF       (9)         315      (330)

SPAIN
-----
Altos Hornos de Vizcaya SA          (116)       1,283      (278)
Santana Motor SA                     (46)         223        41
Tableros de Fibras SA     TFI        (43)      (2,107)      116

SWITZERLAND
-----------
Kaba Holding AG           KABZN      (64)         515       252

UNITED KINGDOM
--------------
Abbot Mead Vickers                    (2)         168       (16)
Alldays Plc               ALD       (120)         252      (202)
Amey Plc                  AMY        (49)         932       (47)
Bonded Coach
   Holiday Group Plc                  (6)         188       (44)
Blenheim Group                      (153)         198       (34)
Booker Plc                BKRUY      (60)       1,298        (8)
Bradstock Group           BDK         (2)         269         5
Brent Walker Group                (1,774)         867    (1,157)
BRITISH ENERGY            BGY     (5,342)        3436       229
British Nuclear Fuels Plc         (2,627)      36,359     1,948
British Sky Broadcasting  BSY       (459)       3,364       (40)
Compass Group             CPG       (668)       2,972      (298)
Costain Group             COST       (34)         329       (12)
Dawson Holdings           DWSN       (32)         135       (25)
Easynet Group Plc         ESY        (12)         332        53
Electrical and Music      EMI
   Industries Group                 (885)       3,053      (435)
Euromoney Institutional   ERM       (119)         173        20
Gallaher Group            GLH       (543)       5,527        68
Gartland Whalley                     (11)         145        (8)
Global Green Tech Group             (156)         408       (18)
Heath Lambert
   Fenchurch Group PLC               (10)       4,109       (10)
HMV Group PLC             HMV       (606)         664      (133)
Imperial Tobacco Group    ITY       (117)      10,083      (190)
Intertek Testing Services ITRK      (134)         425       (67)
IPC Media Ltd.                      (685)         254        16
Lambert Fenchurch Group               (1)       1,827        (3)
Lattice Group                     (1,290)      12,410    (1,228)
Misys PLC                 MSY        (86)         961        (7)
Orange PLC                ORNGF     (594)       2,902         7
Regus PLC                 RGU        (46)         367       (60)
Rentokil Initial Plc      RTO     (1,130)       2,809       (37)
Saatchi & Saatchi         SSI       (119)         705       (41)  Seton
Healthcare                     (11)         157        (0)
Yell Group PLC                      (196)       3,964       289


Each Tuesday edition of the TCR-Europe contains a list of companies with
insolvent balance sheets based on the latest publicly available balance
sheet available to our editors at the time of publication.  At first glance,
this list may look like the definitive compilation of stocks that are ideal
to sell short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which equity
securities trade in public market are determined by more than a balance
sheet solvency test.


                            *********


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.  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.


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