/raid1/www/Hosts/bankrupt/TCREUR_Public/030730.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, July 30, 2003, Vol. 4, No. 149


                            Headlines


F I N L A N D

M-REAL CORPORATION: Records 78% Dive in Q2 Operating Profit


F R A N C E

ALSTOM SA: Board Wants Areva's EUR1 Billion Offer Pursued
VIVENDI UNIVERSAL: Vodafone Ends Share Buy-out Standstill


G E R M A N Y

BERTELSMANN AG: Local Court Blocks 'Delivery of Lawsuit' to U.S.
HELIOS KLINIKEN: S&P Assigns 'BB+' Rating; Outlook Stable
PLAUT AG: Sells Assets to IDS Scheer to Bolster Finances
PLAUT AG: Misses Revenue Expectations, Targets for First-half
WESTLB AG: Ex-CEO Still Holds Supervisory Posts in Affiliates


H U N G A R Y

POSTABANK RT: Cuts Significant Pre-tax Losses in First-half
RABA RT: Inks HUF4.2 Billion Supply Contract with Hungarian Govt


I T A L Y

FIAT SPA: To Reopen Sicilian Plant to Meet Demand for Punto Cars
TELECOM ITALIA: Boasts of Improvement in all Operating Figures


N E T H E R L A N D S

KONINKLIJKE AHOLD: Names Philips Director Chairman of Audit Team


P O L A N D

BANK PEKAO: To Arrange Pekao Leasing's PLN341 Mln Bond Issue
DAM STEEL: Creditors Transfer Firm's Operations to Borsod Steel
HOOP SA: Net Profit Up Despite Slightly Down Operating Profit
POLSKIE HUTY: First-half Results Highlight Huge Improvement
UPC POLSKA: Secures Nod on Request to Retain FTI Consulting


S P A I N

TERRA LYCOS: Reports 66% Year-on-year Improvement in EBITDA


S W I T Z E R L A N D

ABB LTD.: Antitrust Regulator Approves Yit Transaction
ABB LTD.: To Outsource Information Systems Operations to IBM
SWISS INTERNATIONAL: Lufthansa Takeover Shaping Up, Says Report
SWISS RE: S&P Cuts Ratings of Core Subsidiaries; Outlook Stable


U N I T E D   K I N G D O M

BRITISH BIOTECH: Posts Formal Documentation of Proposed Merger
BRITISH ENERGY: E.U. Commission Issues View on State Aid Request
CHUBB PLC: Announces Changes in Management, Interim Results
CORDIANT COMMUNICATIONS: Syrian Investor Faces Jail Time
HOLMES PLACE: Posts Circular in Relation to Health Club's Offer

INTRUM JUSTITIA: Accounting Errors Discovered in British Outfit
INVERESK PLC: Interim Results Confirm Return to Profitability
IREVOLUTION GROUP: To Delist from Footsie August 27
JASMIN PLC: Belies Rumors About Cashflow Crisis
PEARSON GROUP: Revenue Slide Results in First-half Loss

REEBOK SPORTS: Economic Downturn Forces Firm into Administration
SOMERFIELD PLC: Sets Annual General Meeting September 3
TELEWEST COMMUNICATIONS: Confirms Speculations on Restructuring


                            *********


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


M-REAL CORPORATION: Records 78% Dive in Q2 Operating Profit
-----------------------------------------------------------
In the second quarter, the M-real Group's operating profit fell to EUR14.8
million from EUR67.4 million in the previous quarter.  The central reasons
for the weakening in profitability were the fall in demand for packaging
board and paper in step with the general economic situation, the fall in the
selling price of paper, the seasonal drop in the volume of paper delivered
and the annual maintenance shutdowns at the mills in Finland.

Key figures in the second quarter:

(a) Earnings per share: EUR0.01 negative (previous quarter:
    EUR0.12)

(b) Result before extraordinary items: a loss of EUR9.7 million
    (profit of 38.6)

(c) Operating profit: EUR14.8 million (67.4)

(d) Cash flow from operations: EUR31.2 million (153.6)

(e) Return on capital employed: 1.4% (5.0)

(f) Turnover: EUR1,507.8 million (1,594.9)

(g) Equity ratio at the end of the period: 32.9% (32.6)

(h) 85% capacity utilization rate at the paper mills (90), 78%
    at the board mills (94)

The selling price of folding boxboard rose somewhat in Europe compared with
the previous quarter.  The depreciation of the U.S. dollar and the British
pound nevertheless depressed the average euro-denominated selling price of
both paperboard and paper.

President and CEO Jouko M. Jaakkola commented on the quarter and the market
situation: "M-real's second-quarter profitability was very weak owing to the
low price of paper and the slack demand for paper and paperboard.  In
addition, the annual maintenance costs at the mills in Finland burdened
quarter's result.

"The development programs aiming at achieving annual cost savings of EUR295
million and increases in income are moving ahead according to plans and will
be seen to completion by the end of this year.

"Demand for paper in Europe is not likely to pick up, except for the
seasonal upswing in the autumn.  Production curtailments are continuing.
The price of paperboard will probably remain stable, whereas paper prices
may come under slight pressure."

M-REAL CORPORATION

INTERIM REPORT 1 JANUARY - 30 JUNE 2003

APRIL-JUNE EARNINGS COMPARED WITH THE PREVIOUS QUARTER

In the second quarter, the M-real Group's operating profit fell to EUR14.8
million from EUR67.4 million in the previous quarter.  Operating profit
accounted for 1.0% of turnover (Jan.-Mar.
2003:4.2).  The profitability of all the business areas weakened.  Metsa
Tissue's earnings also fell.

The weakening in the profitability of the Consumer packaging business area
was due mainly to the fall in demand for its main products in the face of an
uncertain economic situation and the SARS epidemic, and it was further
impacted by the annual maintenance costs at the mills in Finland in June.
The continued depreciation of the U.S. dollar and the British pound
depressed further the average euro-denominated selling price.  Paperboard
deliveries amounted to 265,000 tons (283,000).  Production at the mills was
curtailed by 59,000 tons (19,000) in line with demand.  The capacity
utilization rate was 78% (94).

Demand for paper was down on the previous quarter. The weakening in the
profitability of paper was attributable primarily to the fall in the
delivery volume and selling price.  The delivery volume fell due to both
seasonal factors and weaker demand in the wake of an uncertain economic
situation.  The depreciation of the U.S. dollar and the British pound
depressed the average euro-denominated selling price.  The delivery volume
of coated fine paper declined by 5%, with uncoated fine paper down 7% and
magazine paper down 4%.  The total volume of paper deliveries was 927,000
tons (975,000).  Owing to the imbalance in supply and demand, production
curtailments had to be continued. Production curtailments amounted to
126,000 tons (94,000).  The capacity utilization rate of the paper mills was
85% (90).

The effect of the change in foreign exchange rates, including hedging
income, on operating profit was EUR6.2 million positive (0.8 positive).  By
the end of June, the dollar had weakened by nearly 4.9% and the pound
sterling by 0.5% compared with the end of March. The average exchange rate
of the US dollar against the euro in April-June was 5.8% lower and against
the pound 4.7 lower than in the previous quarter.

Turnover was EUR1,507.8 million (1,594.9).

Net financial expenses were EUR24.5 million (28.8).  Financial expenses
include a gain on foreign exchange of EUR5.3 million (6.2) as well as
non-recurring income of EUR8.2 million that was realized on an interest rate
swap.  Net interest and other financial expenses amounted to EUR29.8 million
(35.0).

Other operating income amounted to EUR23.2 million (12.1).  The sum does not
include major non-recurring items.

The result before extraordinary items was a loss of EUR9.7 million (profit
of 38.6 million).

The second-quarter result was a net loss of EUR2 million (net profit of 21.0
million in Apr.-June 2002).  Tax proceeds, including the change in the
deferred tax liability and the tax refunds for the companies in Germany and
additional assessments (net proceeds of EUR9.2 million) were EUR8.3 million
(tax expenses of 17.3 million in Apr.-June 2002).

Earnings per share were EUR0.01 negative (0.12 positive).

The return on capital employed was 1.4% (5.0). The return on equity was 0.2%
negative (3.5).

EARNINGS IN JANUARY-JUNE COMPARED WITH THE SAME PERIOD OF 2002

Operating profit in January-June was EUR82.2 million (Jan.-June 2002: 176.5
million).  The profitability of all business areas weakened except for the
Map Merchant Group business.  The main factors that weakened profitability
were the lower selling prices of paper as well as the 23% drop in the
exchange rate of the U.S. dollar and the 10% average fall in the British
pound.  The cheaper dollar hit the profitability of the Consumer packaging
business area particularly hard.  Operating profit was also reduced by the
disposal of the shareholding in Albbruck in June 2002.

Turnover was EUR3,102.7 million (3,372.8).  Turnover was lowered by the same
factors as impacted operating profit.  In comparable terms, the fall in
turnover was 7%.

Consolidated profit before extraordinary items was EUR28.9 million (82.7).

PERSONNEL

The number of personnel at the end of June was 21,230 employees
(21,659 employees at 30 June 2002), of which 6,848 employees worked in
Finland (7,003).  The net increase in personnel as a consequence of
acquisitions and divestments was 415 employees.

The Group's personnel include 47% of Metsa-Botnia's employees.  The payroll
at the end of 2002 was 20,323 employees.

CAPITAL EXPENDITURES ON FIXED ASSETS

M-real's total capital expenditures in January-June amounted to EUR89
million.  In addition, about EUR154 million has been paid as the purchase
price of shares in acquired companies.

ACQUISITIONS, DIVESTMENTS AND RESTRUCTURING

In January M-real purchased from SCA the shares, which the company owned in
Metsa Tissue Corporation (19.27% of the shares outstanding).  In addition,
in January M-real purchased shares from other Metsa Tissue owners, raising
M-real's holding in Metsa Tissue to over 90%.  By way of the mandatory
redemption process in accordance with the Securities Market Act and the
Companies Act, M-real's holding rose to 100% in June, and Metsa Tissue was
delisted from the Main List of Helsinki Exchanges on June 19.  The total
price of the Metsa Tissue shares and stock options purchased during
January-June was about EUR128 million.

In March, M-real purchased 24.7% of the shares in Oy Hango Stevedoring Ab,
raising M-real's holding in the company to 100%.

During the report period Metsa Tissue purchased additional shares in its
subsidiary Zaklady Papiernicze Krapkowicach SA, bringing Metsa Tissue's
holding in ZPK to 100%.

The acquisition of the Czech office paper merchant Narpex, which Map
Merchants agreed in December, entered into force in the Czech Republic in
January.  Also in January, Map Merchants acquired the shares held by
minority shareholders in its Danish subsidiary Schramm-Papirgros A/S (30.7%
of the shares).  On March 14, Metsa-Botnia announced that it was purchasing
60% of the shares in the Uruguayan company Compania Forestal Oriental S.A
(FOSA) from Shell International Renewables B.V.

On June 4, M-real announced it had made a bid to the Portuguese State for a
25% stake in the Portuguese pulp and paper company
Portucel Group.  As part of its offer, M-real was to transfer its Home &
Office business area to Portucel.  This was to include the Home & Office
business area's four paper mills and one pulp mill: Wifsta in Sweden, Alizay
(paper and pulp) and Pont Sainte Maxence in France and the New Thames mill
in Great Britain.  The production of uncoated fine paper at the Husum paper
mill was to be sold to Portucel on a long-term agreement.

On June 11 M-real announced that it had signed an agreement on a strategic
partnership with IBM Global Services concerning the delivery of business
applications and basic information technology services to M-real's units
worldwide.  The agreement provides for the transfer of M-real's own
information technology services business and Logisware Oy's entire
operations to IBM's organization, and it will come into force on September
1, 2003.  The agreement is subject to approval by the competition
authorities.

FINANCING

Interest-bearing net liabilities amounted to EUR3,193 million at the end of
June (Dec. 2002: 3,019 million).

The equity ratio was 32.9% (June 2002: 33.3, Dec. 2002: 34.2) and the
gearing ratio was 134% (June 2002: 124, Dec. 2002:
119).  The equity ratio and gearing ratio were weakened during the period by
the purchase of the Metsa Tissue shares as well as by the dividend payout on
March 27.

Liquidity is good.  Liquidity at the end of June was EUR1,317 million, of
which EUR1,180 million consisted of binding long-term credit commitments and
EUR137 million represented liquid funds and investments.  In addition, to
meet its short-term financing needs the Group had at its disposal
non-binding domestic and foreign commercial paper programs and credit
facilities amounting to about EUR700 million.

At the end of June an average of 4.9 months of net foreign currency exposure
was hedged.  The degree of hedging during the report period has varied
between 3.8 and 5.2 months.  At the end of the report period, about 96% of
the shareholders' equity not in euros was hedged.  At the end of June, the
Group's liabilities were tied to fixed-interest rates for a period of 16
months.  During January-June, the fixed-rate period has varied from 12 to 16
months.

In May Standard & Poor's confirmed that its credit rating for M-real's
long-term loans was BBB- and the credit rating for M-real's short- term
loans was A3, with a negative outlook.  Previously, the credit rating
institution had judged the outlook to be neutral.  Moody´s credit rating for
M-real's long-term loans is Baa3 and for short-term loans it is P3, with a
negative outlook.

SHARES

The highest price of M-real's Series B share on Helsinki Exchanges during
the January-June period was EUR8.75 and the lowest price was EUR6.25.  The
average share price was EUR 6.98. In 2002 the average price was EUR8.28.
The price of the Series B share was EUR6.86 at the end of the report period,
June 30, 2003.

Turnover of the Series B share was EUR329 million, or 33% of the shares
outstanding.  The market capitalization of the Series A and B shares at June
30, 2003 totaled EUR1,221 million.

At June 30, 2003 Metsaliitto Osuuskunta owned 38.5% of M-real
Corporation's shares and 64.2% of the voting rights conferred by these
shares. International investors owned 34.4% of the shares.

The Board of Directors does not have valid authorizations to carry out a
share issue or issues of convertible bonds or bonds with warrants.

NEW ORGANIZATION

In June M-real streamlined its organization with the aim of boosting
competitiveness and the efficiency of customer service.  The Group now
comprises the Marketing & Sales and Operations organizations as well as the
corporate functions supporting them.

The business areas and sales units belong to the Marketing & Sales
organization.  The business areas are Cartons, Graphics, Offices and
Specialities.  In addition, the Map paper merchanting business and Metsa
Tissue belong to the Group.

M-real's financial reporting will continue in accordance with the old
organizational structure up to the end of the current financial year.

NEAR-TERM OUTLOOK

The recession in Europe appears to be continuing.  Demand for paperboard and
paper is not estimated to revive this year.  In the United States, there are
some isolated signs of a pickup in the economy and paper consumption, but
the main economic indicators do not point clearly to the course which future
developments will take.

In September-November, a seasonal rise in the demand for paper is expected.
A cyclical upswing, however, is not anticipated and price pressure will
continue.

Espoo, 28 July 2003

BOARD OF DIRECTORS

BUSINESS AREAS AND MARKET TRENDS

Consumer packaging

                      II     I    IV    III    II  2002   I-II
                      03    03    02     02    02           03
                                                         change
Turnover            211.  229.  227.   231.  232.  921.    -8.0%
                      6     9     0      7     4     1
Operating profit      2.0  18.6   7.0   25.3  17.3  83.4
Operating profit, %   0.9   8.1   3.1   10.9   7.4   9.1
Return on capital     1.3   7.8   3.7   11.1   7.8   9.1
employed, %
Mill deliveries,    265   283   283    284   287  1129    -6.4%
1,000 t
Board mills' capacity78    94    92     94    89    91
utilization rate, %

The Consumer packaging business area's operating profit in the second
quarter was EUR2.0 million (Jan.-Mar. 2003: 18.6).  The weakening in the
profitability was due mainly to the fall in demand for the business area's
main products owing to the uncertain economic situation and the SARS
epidemic as well as to the annual maintenance costs in Finland in June.  The
continued weakening in the U.S. dollar and British pound eroded the average
selling price of the main product groups compared with the previous quarter.
The capacity utilization rate was 78% (94).

Deliveries by west European folding boxboard producers were down 3% on the
previous quarter. M-real's total delivery volume declined by 9%.  The
selling price in western Europe rose slightly.  The depreciation of the US
dollar and the British pound nonetheless depressed the average
euro-denominated selling price.

The delivery volume of linerboard was down 4% on the previous quarter.  The
selling price was unchanged. The depreciation of the U.S. dollar
nevertheless depressed the average euro-denominated selling price.

The weak demand for fluting continued.  The delivery volume declined by 10%.

Deliveries of wallpaper base declined slightly in step with the
worldwide drop in demand for wallpaper base.  Selling prices also fell.

Commercial printing
                     II     I    IV    III    II    2002    I-II
                     03    03    02     02    02              03
                                                          change
Turnover           372.  403.  368.   403.  412.       1   -7.6%
                     8     6     1      6     5   638.4
Operating profit     5.1  18.3  16.6   22.9  28.3   106.7
Operating profit, %  1.4   4.5   4.5    5.7   6.9     6.5
Return on capital    1.4   5.3   4.4    5.6   7.0     7.1
employed, %
Mill deliveries,   439   460   425    419   441   1 757   -4.6%
1,000 t
Capacity utilization83    86    79     74    82      81
rate, %

The Commercial printing business area's operating profit was EUR5.1 million
(18.3).  The weakening in operating profit was attributable mainly to the
fall in the delivery volume. The delivery volume fell on both a seasonal
basis and due to the weakening in demand caused by the uncertain economic
situation in western Europe, especially in Germany.  No major change took
place in prices in the main markets in Europe.  The depreciation of the
United States dollar and British pound nevertheless caused a drop in the
industry's average selling price compared with the previous quarter.

Deliveries by west European producers of coated fine paper fell by 8%
compared with the previous quarter.  The delivery volume of the Commercial
printing business area's products fell by 5%.  The average running time of
the paper machines was 2 days shorter than in the previous quarter and the
capacity utilization rate was 83% (86).  The order book was 10 days at the
end of June.

Zanders was transferred to the Commercial printing business area as from the
beginning of 2003.  The figures for 2002 have been adjusted accordingly.

Home & Office

                      II     I    IV    III    II  2002     I-II
                      03    03    02     02    02             03
                                                          change
Turnover            181.  191.  200.   183.  183.  782.    -5.1%
                      8     6     8      4     7     7
Operating profit   13.9  21.8  19.6   28.3  26.1  102.
                                                           8
Operating profit, % 7.6  11.4   9.8   15.4  14.2  13.1
Return on capital   5.7   9.4  10.0   11.0  10.6  11.0
employed, %
Mill deliveries,    229   246   211    218   223   902    -6.9%
1,000 t
Capacity utilization 89    93    79     88    91    89
rate, %

The Home & Office business area generated operating profit of EUR13.9
million (21.8).  The weakening in profitability was attributable mainly to
the fall in the delivery volume, the lower selling price, the product mix
and increased deliveries to markets outside Europe.

The delivery volume fell on both a seasonal basis and due to the weakening
in demand caused by the uncertain economic situation in western Europe.

Deliveries by west European producers of uncoated fine paper declined by 13%
compared with the previous quarter.  The Home & Office business area's
delivery volume declined by 7%.  The average running time of the paper
machines was 3 days shorter than in the previous quarter and the capacity
utilization rate was 89% (93).  The order book at the end of June was little
over two weeks.

Publishing

                     II     I    IV    III    II  2002     I-II
                     03    03    02     02    02             03
                                                          change
Turnover            187.  204.  204.   191.  193.  790.    -8.4%
                            1     2     0      0     5     1
Operating profit    -6.7  10.3   8.8   16.5   0.9  43.1
Operating profit, % -3.6   5.0   4.3    8.6   0.5   5.5
Return on capital   -2.1   3.5   2.7    5.8   0.6   3.6
employed, %
Mill deliveries,    258   269   255    234   235   977    -4.1%
1,000 t
Capacity utilization 84    93    87     87    77    84
rate, %

The Publishing business area reported an operating loss of EUR 6.7 million
(an operating profit of EUR10.3 million).  Profitability was weakened by a
lower delivery volume, the continued fall in the selling price as well as
the annual maintenance costs at the Publishing business area's mills in
Finland.  In addition, the depreciation of the U.S. dollar and the British
pound caused a decrease in the average selling price in euros.

Deliveries by west European producers of coated magazine paper (LWC) rose by
3% compared with the previous quarter.  The Publishing business area's
delivery volume fell by 4%.  The average running time of the paper machines
was 7 days shorter than in the previous quarter and the capacity utilization
rate was 84% (93).  The order book at the end of June was slightly less than
three weeks.

Map Merchant Group

                     II     I    IV    III    II    2002    I-II
                     03    03    02     02    02              03
                                                          change
Turnover           345.  367.  375.   371.  387.      1   -6.2%
                     0     9     0      7     1     542.8
Operating profit     3.4   5.4  -9.3   -5.9  -0.9   -14.9
Operating profit, %  1.0   1.5  -2.5   -1.6  -0.2    -1.0
Return on capital    4.0   5.8  -9.0   -4.0  -0.8    -3.0
employed, %
Delivery volumes,  308   317   311    307   314   1 270   -2.8%
1,000 t

The Map Merchant Group reported operating profit of EUR 3.4 million (5.8).
The weakening in profitability was due to the fall in both the selling price
and the delivery volume.  The market situation remained difficult.

OTHER BUSINESSES

Metsa Tissue Corporation

                     II      I    IV   III    II   2002    I-II
                      03     03    02    02    02             03
                                                              change
Turnover            169.   164.  170.  162.  155.   647.   -2.6%
                      0      7     7     2     7      8
Operating profit     8.3   11.7   5.9  17.2   8.4   43.1
Operating profit, %  4.9    7.1   3.5  10.6   5.4    6.7
Return on capital   10.2   14.5   7.6  21.0  10.5   13.2
employed, %

Metsa Tissue's operating profit in the second quarter was EUR8.3 million
(11.7).  Profitability was weakened by the rise in raw material costs and a
slower selling period than is usual for the season.  Operating profit was
boosted by the slight rise in the delivery volume.

Operating profit in January-June was EUR20.0 million (Jan.-June 2002: 20.0
million).  Profitability was lifted by the rise in the delivery volume
together with an improved product range.  Profitability was weakened by the
extra costs of starting up new production lines.  Average selling prices
were slightly below the previous year's level.

In January-June, Metsa Tissue Corporation's share price registered a high of
EUR12.37 and a low of EUR9.51.  The company was delisted from the Main List
of Helsinki Exchanges on June 19.  The last quoted price of the share was
EUR12.30.  Share turnover was EUR127.7 million, representing 34.7% of the
total number of shares outstanding.  The company's market capitalization at
June 19, 2002 was EUR369 million.  At the end of the financial year M-real
owned 100% of Metsa Tissue's shares.

To See Financial Statements:
http://bankrupt.com/misc/M_Real.htm
CONTACT:  M-REAL CORPORATION
          Corporate communications
          Jouko M. Jaakkola, President and CEO
          Phone: +358 10 469 4118
                 +358 50 2261

          Veli-Matti Mynttinen, Executive Vice President
          Phone: +358 10 469 4655, GSM +358 50 2895
          Heikki Saarinen, CFO
          Phone: +358 10 469 4686, GSM +358 50 598 7142


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


ALSTOM SA: Board Wants Areva's EUR1 Billion Offer Pursued
---------------------------------------------------------
During [Mon]day's meeting, ALSTOM's Board of Directors was updated on the
progress of the sale of ALSTOM's Transmission & Distribution Sector and in
particular the offer that has been received from Areva.

The Board agreed that the company actively pursues the negotiations with
Areva on the basis of the offer received.

Alstom CEO Patrick Kron confirmed receipt of Areva's EUR1 billion-offer for
the unit at the beginning of the month.
The company is disposing assets to offset an expected EUR1.3 billion loss in
the year to March 2003.  The company recently secured credit lines worth
EUR1 billion to stave off a crisis in the short term, but it is reliant on
the capital increase working.  Earlier this year, it sold its turbines
business to Siemens for EUR1 billion.

It is said that the disposal of the transmission and distribution unit is a
crucial part of the group's plan to reduce its debt load from EUR5 billion
to between EUR2 billion and EUR2.5 billion by March 2005.

CONTACT:  ALSTOM SA
          Investor relations:
          E. Chatelain
          Phone: +33 1 47 55 25 33
          E-mail: investor.relations@chq.alstom.com


VIVENDI UNIVERSAL: Vodafone Ends Share Buy-out Standstill
---------------------------------------------------------
Vodafone has given Vivendi Universal (Paris Bourse: EX FP; NYSE:V) a
six-month notice of its intention to end its commitment not to purchase
Vivendi Universal shares.

The standstill clause, extendable tacitly, was one of the measures included
in the agreement signed by Vivendi Universal and Vodafone on January 29,
2000 covering the development of Vizzavi, the European multi-access portal.
The clause precluded Vodafone from acquiring Vivendi Universal shares
directly or indirectly, alone or in conjunction with other parties.

This standstill clause, originally covering a period of three years and
later increased to four, offered the possibility of termination by Vodafone
with a six-month notice.  As a result of this notification, Vodafone's
standstill period will end on January 30, 2004.


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


BERTELSMANN AG: Local Court Blocks 'Delivery of Lawsuit' to U.S.
----------------------------------------------------------------
The Federal Constitutional Court, Germany's highest court, last week
prevented the delivery of US$17 billion lawsuit against Bertelsmann in
relation to its involvement with the Napster file-swapping service, the
Financial Times reported.

Bertelsmann, owner of New York-based BMG, is facing three separate lawsuits,
including one from Universal Music Group, the world's largest music company,
and another from EMI, its U.K. rival, for allegedly helping sustain the
Napster operation which promotes the illegal practice of swapping music
recordings via the Internet.

The German court in its preliminary ruling said the delivery of the suit
risked violating Bertelsmann's rights under the German constitution.  The
injunction is valid for six months while the court conducts a full hearing.

"If proceedings brought before [U.S.] courts are obviously misused to bring
a market participant into submission by way of media pressure and the threat
of a court decision, this could violate German constitutional rights," the
court said, according to the report.

Delivery of a suit is required under U.S. law for civil proceedings to go
ahead, and for the recognition, in the country, of a foreign court decision,
under German law.  But since Bertelsmann has already filed motions to
dismiss the lawsuits, suggesting it acknowledged the cases, the implications
of the constitutional court's ruling could be limited, according to the
report.

Bertelsmann declined to comment on the impact of the ruling, the report
said.


HELIOS KLINIKEN: S&P Assigns 'BB+' Rating; Outlook Stable
---------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'BB+' long-term
issuer credit rating to Germany-based hospital operator Helios Kliniken
GmbH.  The outlook is stable.

"The rating reflects Helios' aggressive acquisition growth strategy, low
free operating cash flows, and weak profitability compared with its rated
peers, offset by a heavily regulated market with high barriers to entry,"
said Standard & Poor's credit analyst Christian Esters.

The rating also reflects Helios' conservative capital structure and its
proven track record over the past decade in acquiring and restructuring
underperforming public hospitals.

"This is the first rating that Standard & Poor's has assigned to a private
acute hospital operator in Germany," said Mr. Esters.

Helios Kliniken, based in Fulda, is the second-largest operator in the
fragmented German hospital market, with established medical expertise.  The
group had turnover of EUR712 million in 2002 and comprises 22 acute care
hospitals with a total of 7,100 beds.

Helios' focus on acquiring and restructuring hospitals from public
authorities has resulted in rapid external growth over the past few years,
with annual sales growth averaging 33% since 2000.

Although health care needs are expected to increase strongly, owing to the
aging German population, the hospital market depends on available health
care funding, as growth rates are constrained by hospital demand plans by
public authorities and reimbursement agreements with public health insurance
funds.

Standard & Poor's expects that Helios will be able to cover investment needs
from funds from operations, investment subsidies -- albeit declining -- from
state authorities, and a moderate increase in debt.

"The outlook therefore also includes the possibility of a moderate weakening
of Helios' financial profile resulting from future partly debt-financed
acquisitions," Mr. Esters said.


PLAUT AG: Sells Assets to IDS Scheer to Bolster Finances
--------------------------------------------------------
The Executive and Supervisory Boards of Plaut AG (SCN 918 703) announced
that the company will sell its operations in North America (USA and Canada)
and Central Eastern Europe (Austria, Czech Republic, Poland, Hungary and
Slovakia) to IDS Scheer AG, effective August 1, 2003.  The sale will serve
to bolster Plaut's financial basis, enabling the company to reinforce its
focus on core countries and competencies and to safeguard its autonomy.

Under the terms of this transaction, structured as an asset deal, about 450
employees will pass to IDS Scheer, together with revenues of approximately
EUR75 million.  Alfred Raderer, up to now Plaut's Executive Board member
responsible for the area Central Eastern Europe, will also change to the new
owner.  The parties have agreed to maintain confidentiality about the
purchase price, which is to be paid entirely in cash.  In line with
shareholder value considerations, Plaut will use the majority of the funds
to significantly reduce its level of net debt.  In its new formation, the
Plaut group expects to reach revenues of EUR135.0 million (2002 comparable:
174.9) with a headcount of approximately 930 (2002:1,366) by the end of the
year.  2003 revenues, if adjusted on this basis for the full year, would
therefore amount to EUR95.2 million.  The EBITDA margin is anticipated to
increase to 3.5% (2002: 2.5%).  The transaction is a consistent continuation
of Plaut's strategy of pursuing solid profitability, enabling the company to
heighten the focus on its business management core competencies (from
accounting and controlling to business intelligence) and on the geographical
presence in the key European industrial nations and Latin America.

Issuer's information/explanatory remarks concerning this
ad-hoc-announcement:

Dr. Gotz Huttenlocher, Chairman of the Supervisory Board of Plaut AG,
comments the transaction as follows: "While this sale marks a turning away
from our philosophy of globalization pursued in recent years, its benefits
to Plaut are manifold.  With the heavy interest burdens being removed,
results will improve significantly.  In addition we will now be able to
concentrate on our consulting activities in the major European markets.  The
sale also facilitates our return "back to the roots", i.e. to our classic
skills in business management, which are of particular importance in the
large European markets."

Eberhard Lind, interim CEO of Plaut AG, refers to the specific situation in
the Eastern European countries: "Despite intensive efforts, Plaut has failed
to achieve a critical size in each of the Eastern European countries.  And
our liquidity situation provided no basis for the necessary investments.
Due to the intensive organizational and economic interconnection, especially
on the client side, we were only able to sell our Eastern European companies
in conjunction with the Austrian subsidiary."

In the light of such decisive changes, Plaut also plans further steps with
regard to a slimmer corporate structure.  For example, all overheads --
especially  those of the holding company -- are subject to revision, with
the objective of leveraging maximum synergy effects with the country
organizations.

About Plaut AG

Customers in over 16 countries benefit from Plaut's comprehensive portfolio
in management consulting with business process focus and IT & hosting
solutions, based on Plaut's industry knowledge in manufacturing and
CPG/retail and services.  On the basis of the Plaut Methodology in
controlling and decades of success in systems integration, in particular in
SAP, Plaut has provided tangible economic value since 1946.  Plaut AG,
Salzburg, has been listed in the General Standard segment of Frankfurt stock
exchange since January 2, 2003 (PUT;SCN 918 703, ISIN AT0000954359).  The
company, trading on Frankfurt's "Neuer
Markt" from 1999 to 2002, generated revenues of approximately EUR216 million
with 1,366 employees by the end of 2002.

About IDS Scheer

IDS Scheer (Saarbruecken) develops solutions for business process
management.  With ARIS, the company has a complete portfolio for the
development, implementation, operation and evaluation of business processes.
IDS Scheer consultants support companies in setting up a process
organization and implementing modern application concepts such as
E-business, Supply Chain Management, Customer Relationship Management and
Enterprise Application Integration.  ARIS Toolset is the world's best
selling process modeling tool and is used by 90% of DAX 30 companies.  The
company was founded in 1984 by Professor August-Wilhelm Scheer, and now
advises some 3,000 clients in more than 50 countries through its network of
branches and partners. In 2002, IDS Scheer earned revenues of over 181
million euros with approximately 1,450 employees.

IDS Scheer is listed at the Frankfurter Borse in the TecDAX and thus belongs
to the top 110 stock exchange values, also known as DAX110.  In Germany, IDS
Scheer ranks among the top 25 IT service providers.  For more information,
please visit: http://www.ids-scheer.com

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

          IDS SCHEER AG
          Veronika Bandel
          Investor Relations/Finanzpresse
          Phone: + 49 (681) 210-3203
          Fax: + 49 (681) 210-1231
         E-mail: v.bandel@ids-scheer.de

         Ingrid Britz-Averkamp
         Investor Relations
         Phone: + 49 (0) 681 / 210 - 1050
         Fax: + 49 (0) 681 / 210 _ 1231
         E-mail: i.britz@ids-scheer.de


PLAUT AG: Misses Revenue Expectations, Targets for First-half
-------------------------------------------------------------
Plaut AG (Securities Code Number 918 703) announced financial results for
the first half of fiscal 2003.  With revenues of EUR88.4 million * (2002:
113.7 million) and an EBITDA before restructuring charges (earnings
excluding interest, tax, depreciation and amortization) of EUR2.9 million
(2002: 7.0 million), the company narrowly missed revenue expectations, while
failing to meet its result targets.  The EBITDA margin improved against the
end of 2002 by rising to 3.2% (E02: 2.5%).  Due to restructuring cost, the
current operating cash flow amounted to -EUR4.4 million versus -EUR1.0
million in 2002.  The consulting company was able to over proportionally
reduce its volume of trade receivables to EUR39.8 (2002:61.2 million).  The
cash balance at the end of Q2 was EUR13.6 million (2002:16.6 million).

The Plaut group had 1,222 employees worldwide as of June 30, 2003 (2002:
1,469).

Restructuring charges amounted to EUR2.8 million and were primarily used for
personnel measures, as announced in the annual results publication for 2002.
Coinciding with the publication of its half-year results, Plaut announced
the sale of its subsidiaries in North America and Central Eastern Europe to
IDS Scheer AG.  This asset deal will bolster the company's financial basis
effectively and in the long term by reducing its heavy bank obligations to a
low level.

In the light of these changes and against the backdrop of the continuing
market stagnation, full year revenues are expected to amount to EUR135
million.  The EBITDA margin is anticipated to increase to 3.5%.

*Without taking into account the entities passing over to IDS Scheer,
revenues for the first six months amounted to EUR51.7 million.

About Plaut AG

Customers in over 16 countries benefit from Plaut's comprehensive portfolio
in management consulting with business process focus and IT & hosting
solutions, based on Plaut's industry knowledge in manufacturing and
CPG/retail and services. On the basis of the Plaut Methodology in
controlling and decades of success in systems integration, in particular in
SAP, Plaut has provided tangible economic value since 1946.  Plaut AG,
Salzburg, has been listed in the General Standard segment of Frankfurt stock
exchange since January 2, 2003 (PUT; SCN 918 703, ISIN AT0000954359).  The
company, trading on Frankfurt's "Neuer Markt" from 1999 to 2002, generated
revenues of approximately EUR216 million with 1,366 employees by the end of
2002.

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

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


WESTLB AG: Ex-CEO Still Holds Supervisory Posts in Affiliates
-------------------------------------------------------------
Jurgen Sengera, ousted chief executive of WestLB, is still representing the
German bank in two of its biggest shareholdings, The Financial Times has
learned.

Mr. Sengera still holds seats on the supervisory boards of travel group Tui,
in which WestLB holds a 31% stake, and HSH Nordbank, the fellow Landesbank
of which it has 27%, the report said.  WestLB also has no plans of replacing
him in the position, the Financial Times further said.

"A supervisory board position is a personal mandate under German law... It
is legally quite difficult to revoke that," WestLB said.

The new chief executive Johannes Ringel is as well reluctant to remove him
from the supervisory board, according to the people close to the directors.

"There is a desire on the part of Mr. Ringel not to make life any more
difficult for Mr. Sengera than it already is," the report quoted one source
saying.

Mr. Sengera was forced out of his duty last month after the German
regulator, BaFin, criticized the bank on the leniency of its risk control.
The state of affairs at WestLB took center stage after the bank recorded a
loss of EUR1.7 billion (US$1.9 billion) due to significant provisions and
writedowns, including EUR430 million on the bank's loan to BoxClever, the
U.K. television leasing company.


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


POSTABANK RT: Cuts Significant Pre-tax Losses in First-half
-----------------------------------------------------------State-owned
Postabank Rt reported narrower than expected non-consolidated pre-tax losses
of HUF176 million in the first half of the year, according to CEO Bela
Singlovits.  The bank, which made HUF1.776 million losses last year, was
expected to post around HUF876 million in non-consolidated pre-tax losses.

Postabank was also able to report increased activity in the areas of retail
loans and deposits as well as corporate loans, according to the CEO.  The
bank previously received from various governments some HUF174.5 billion in
funds needed to sustain operations.  The government rescued the bank during
a run in February 1997.


RABA RT: Inks HUF4.2 Billion Supply Contract with Hungarian Govt
----------------------------------------------------------------
Vehicle and vehicle parts manufacturer, Raba Rt, was able to secure a HUF4.2
billion contract to supply all-terrain trucks to Hungary's defense forces.
The struggling company will supply 90 vehicles to the military next year.

Raba suffers from declining export revenues; and though the contract is a
significant development after the vehicle division was reorganized around
heavy-duty vehicles, the deal may not be enough to offset the crisis the
firm is currently experiencing, analysts say, according to Budapest Business
Journal.

Raba recorded its most dismal financial performance in recent years last
year, posting losses of HUF2.5 billion on HUF39.4 billion in revenues.  The
company blamed negative external factors, such as the worldwide economic
recession and the weakening of the dollar for the under performance.


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


FIAT SPA: To Reopen Sicilian Plant to Meet Demand for Punto Cars
----------------------------------------------------------------
Popular demand for Fiat's restyled Punto small car has prompted the Italian
carmaker to prepare for the reopening of its factory in Sicily weeks ahead
of schedule, the Financial Times said.

Workers at the Termini Imerese plant, which was temporarily closed at the
end of last year, will be recalled at the end of August, according to the
report.  The move follows an earlier than expected uptake of 110,000 orders
for new Punto cars by Fiat dealers in the past two months.

But despite the buoyant demand, Fiat is still adopting a cautious outlook.
It retained its target of selling 420,000 units a year, plus 100,000 or more
of the Idea small people-carrier variant.

"We have been surprised by the response to the Punto and we have to satisfy
demand," Fiat said.

The reopened factory will employ 1,600 people, and produce 350 Puntos a day.
The figure is aimed at avoiding the complexity of trying to increase
production at its Mirafiori or Melfi plants, which are already producing
Puntos, according to the report.

Fiat is expected to announce quarterly results on Thursday.  Analysts
predict the industrial group to post an operating loss of EUR75 million
(US$86 million) for the quarter, as revenues continue to slump.  This,
nonetheless, will be an improvement from last year, which saw a EUR127
million in the same period.


TELECOM ITALIA: Boasts of Improvement in all Operating Figures
--------------------------------------------------------------
Telecom Italia posted this half-year preliminary results earlier this week.
These are the highlights:

(a) Net financial borrowings decreased from about EUR18.1
    billion at the end of December 2002 to about EUR16.5 billion
    at June 30, 2003 (approximately -EUR1.6 billion), after
    paying out dividends of about EUR1.6 billion.

(b) Within the framework of the debt-reduction plan, divestments
    have already amounted to EUR4.3 billion, out of the planned
    EUR4.5 billion divestments to be reached in 18 months as
    announced on March 12.

(c) Revenues up 6.6% compared to the first half of 2002, based
    on the same consolidation area and excluding the exchange-
    rate effect.  Slightly down (-1.1% compared to the first
    half of 2002) considering the negative effect of exchange
    rates and changes to the consolidation area

(d) Operating profitability improved:
    GOP/Revenues 46.7% (45.4% for the first half of 2002),
    Operating income/Revenues 26.6% (24.4% in the first half of
    2002);

    All operating figures improved in Q2 2003 compared with Q1
    2003;

    Wireline: Revenues (+1.7%) and margins (gross operating
    profit +2.1%, operating result +1.9%) increased compared to
    the first half 2002.

(e) Wireline plan to expand broadband internationally presented
    to the Board of Directors

(f) Acquisition of HanseNet from e.Biscom also approved

TELECOM ITALIA GROUP

(a) Revenues: EUR14,818 million, (-1.1% compared with first half
    2002) +6.6% excluding exchange rates and changes to the
    consolidation area;

(b) Gross operating profit: EUR6,925 million, (+1.7% compared
    with first half 2002) +3.7% excluding exchange rates and
    changes to the consolidation area'

(c) Operating income: EUR3,948 million, (+7.8% compared with
    first half 2002) +6.2% excluding exchange rates and changes
    to the consolidation area;

(d) Operating free cash flow: EUR4,911 million (+EUR761 million
    compared with first half 2002) equivalent to 33.1% of
    revenues;

(e) Net financial borrowings: EUR16,535 million (-EUR1,583
    million compared with December 31, 2002);

The Board of Directors of Telecom Italia chaired by Marco Tronchetti Provera
analyzed the Group's unaudited preliminary results for the half year ended
June 30, 2003.

Preliminary results of the Telecom Italia Group for the first half 2003:

The preliminary results analyzed by the Board of Directors show constantly
improved income from operations.

Revenues for the first half of 2003 amounted to EUR14,818 million, slightly
down by 1.1% compared with the same period of 2002 (EUR14,989 million
euros).  Excluding the negative effect of exchange rates and changes in
consolidation revenues registered organic growth of 6.6% (+EUR921 million).

Gross operating profit amounted to EUR6,925 million (an increase of 1.7%
(+EUR117 million), compared with the first half of 2002.  Without taking
into account the negative effect of exchange rates and changes in the
consolidation area, organic growth was 3.7% (+EUR250 million).  The ratio to
revenues was 46.7% compared to 45.4% for the same period of 2002.

Operating income amounted to EUR3,948 million, improving by EUR286 million
compared with the first half of 2002 (+7.8%, while organic growth was equal
to 6.2%), with ratio to revenues showing net improvement increasing from
24.4% for the same period of 2002 to 26.6% in the first half of 2003.

Free cash flow stood at 4,911 million euros, an increase of EUR761 million
(+18.3%) compared with the first half 2002; this item amounted to 33.1% of
revenues compared with 27.7% for 2002.

All operating figures show improved performance.

In Q2 2003, compared with Q1 2003, revenues increased 8%, gross operating
profit increased 9.7%, operating result increased 11.6% and operating free
cash flow increased 3.5%.

Net financial borrowings, down by EUR1,583 million compared to December 31,
2002, amounted to EUR16,535 million, after paying out dividends of EUR1,564
million.

In the first half of 2003, the Telecom Italia Group completed divestments of
approximately EUR4.3 billion, out of the planned EUR4.5 billion divestments
to be carried out in 18 months announced on March 12.

In particular:

(a) On February 20, 2003, an agreement was concluded to sell the
    29% stake held in Telekom Srbija to PTT Srbija for EUR195
    million;

(b) On June 11, 2003, an agreement was signed with the
    consortium of companies formed by BC Partners, CVC Capital
    Partner, Permira and Investitori Associati to acquire an
    equity stake of approximately 61.5% in the "Nuova Seat"
    (Directories). The agreed price is EUR0.598 per share,
    taking into account the "Enterprise Value" of "Nuova Seat"
    amounting to approximately EUR5.65 billion.  The value of
    the transaction to Telecom Italia thus amounts to
    approximately EUR3 billion.  Taking into account estimated
    debt of "Nuova Seat", amounting to approximately EUR0.7
    billion at the time of completion, the transaction will
    allow the Telecom Italia Group to reduce its consolidated
    net debt by approximately EUR3.74 billion;

(c) On June 20, 2003, an agreement was reached with Lastra
    Holding B.V., a company in the Five Mounts Properties Group
    (FMP), regarding the transfer of a number of real estate
    assets owned by the Telecom Italia Group.  The agreement,
    concluded on July 21, 2003 is worth approximately EUR355
    million and will allow the Telecom Italia Group to reduce
    consolidated net financial borrowings by a similar amount.

Preliminary results of the Business Units for the first half 2003

WIRELINE

The key preliminary results of Wireline, the Telecom Italia fixed-line
network Business Unit posted much improved performance for both industrial
and business operations in first half 2003, compared with the same period of
the previous year.

Revenues on the increase

Revenues, amounting to EUR8,552 million, an increase of 1.7% compared to the
first half of 2002 thus confirming the upturn in revenue trend already shown
in Q1 2003.

This increase was achieved by effective positioning on the telephony market,
its core business, where, specifically, flat-rate voice offerings exceeded
5.5 million connections achieving 20.6% penetration of Wireline's client
base and the traffic market share confirmed its stable trend for the first
half of 2003.

Significant and progressive development is reported for Broadband markets
and innovative data services.  Broadband access connections amounted to
1,375,000, registering an increase in first half 2003 of 525,000
connections, double the increase registered in the second half of 2002.
Significant growth was also shown for business customer data services, where
the development of innovative data services, recorded a +46% increase
compared to the first half 2002, more than offsetting the contraction
registered by traditional data services and leased line services where
prices are regulated and a migration towards innovative solutions is
underway.

Finally, the increase in revenues from VAS services increased +37% compared
to the first half of 2002.

Profitability improvement

Gross operating profit, amounting to EUR3,982 million, reported growth of
+2.1% compared to the first half 2002, with a ratio to revenues of 46.6%
compared with 46.4% in the first half of 2002.

Operating income amounted to EUR2,441 million, a rise of 1.9% compared with
the first half of the previous year.  The ratio of operating income to
revenues was 28.5%, in line with the figure reported for the same period of
the previous year.

During the first half of the year, Wireline confirmed its commitment to
investments deploying EUR1,069 million, a rise of +6.8% compared with the
first half of 2002.

MOBILE AND SEAT

The preliminary results for the first half of 2003 for the Mobile Services
and Internet & Media Business Units are reported in the press releases
issued on July 23 and 24, respectively, after being analyzed by the Boards
of Directors of TIM and Seat Pagine Gialle.

The half-year report of Telecom Italia for the period ended June 30, 2003
will be available to the public by September 13, 2003.  Henceforth, in
accordance with  Article 82 of Consob decision No. 11971/99,  exempt from
publication of quarterly report for the period April-June 2003.

The Board of Directors that will analyze the Half Year Report for the period
ended June 30, 2003 has been brought forward from September 4 to September
2, 2003.

Wireline: Broadband international expansion plan

The Board of Directors gave a mandate to CEO Riccardo Ruggiero to finalize
the negotiations to acquire HanseNet from e. Biscom for about EUR250
million.

The Board of Directors of Telecom Italia further acknowledged the Wireline
Business Unit's project for developing and internationally expanding its
Broadband business.

Having substantially concluded a financial restructuring and focusing on the
core business much earlier than the other main European operators, the
Telecom Italia Group deems the time right to leverage its know-how in terms
of marketing, its acquired skills in managing business channels and its
technological excellence gained in the domestic market to expand coverage of
Broadband activities to a number of selected European cities with high
development potential.

In fact, the international market today shows different potential compared
to the past, with broadband showing strong growth both from the standpoint
of access services and value-added services, in addition to competitive gaps
linked to the supply of innovative services and products and to excellent
operations and customer service.

Telecom Italia will invest EUR500-600 million in the project in the
three-year period from 2003 to 2005.  This amount is part of the Group's
investments planned for the three-year period 2003 - 2005 (EUR14 - 16
billion) as announced on February 14, 2003.

In the framework of this strategy, the Board of Directors gave a mandate to
CEO Riccardo Ruggiero to acquire from e.Biscom a 100% stake in the German
company HanseNet Telekommunikation GmbH for about EUR250 million.

The expected turnover of HanseNet, a company operating in the Broadband
business in the Hamburg area, is approximately EUR100 million for 2003.

HanseNet's operations will be part of the Wireline Business Unit, headed by
Telecom Italia CEO Riccardo Ruggiero.

With reference to the "Organization Model 231", adopted by Telecom Italia on
May 5, 2003, the Board of Directors decided that the Supervisory Committee
will be a board made up of Guido Ferrarini, an independent director member
of the Internal Control Committee, Armando Focaroli, the person in charge of
internal control, and Ferdinando Superti Furga, chairman of the Board of
Auditors.


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


KONINKLIJKE AHOLD: Names Philips Director Chairman of Audit Team
----------------------------------------------------------------
Ahold on Monday announced that Jan Hommen, Vice Chairman and Finance
Director of Royal Philips and a member of Ahold's Supervisory Board, was
recently appointed Chairman of Ahold's Audit Committee.  This appointment,
as well as the recent appointment of Anders Moberg as acting Chief Executive
Officer of Ahold, will allow Henny de Ruiter to focus his attention on his
duties as Chairman of Ahold's Supervisory Board, while continuing to serve
as a member of the Audit Committee.

As indicated in Ahold's July 1, 2003 announcement, Ahold is continuing the
process of making additional personnel changes.  Bert Verhelst has recently
resigned from his position as Senior Vice President Administration and will
take early retirement as of January 2004.  As previously announced, Joost
Sliepenbeek has been appointed to replace Bert Verhelst in the position of
Senior Vice President Controller of Ahold.

CONTACT: ROYAL AHOLD
         Corporate Communications
         Phone: +31.75.659.5720


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


BANK PEKAO: To Arrange Pekao Leasing's PLN341 Mln Bond Issue
------------------------------------------------------------
The Management Board of Bank Polska Kasa Opieki SA informs that on July 25,
2003 it signed with Pekao Leasing Sp. z o.o. seated in Warsaw, a 100%
subsidiary of the Bank, an agreement on arrangement and servicing non-public
short- and long-term bonds issue with total nominal value up to
PLN341,300,000.


DAM STEEL: Creditors Transfer Firm's Operations to Borsod Steel
---------------------------------------------------------------
Two of DAM Steel's major creditors, CIB Bank and power distributor Emasz,
have decided to transfer the company's operations, according to Janos
Kovacs, CEO of liquidator Matraholding Rt.

Budapest Business Journal said the creditors, along with waste management
company Loacker Holding, representing smaller creditors, have considered it
best to move the operation to Borsod Steel Rt to have access to financial
resources through tenders.

DAM currently has orders for 20,000-25,000 tons of finished goods, Mr.
Kovacs said.  The steel manufacturer reopened only last month, thanks to a
HUF1.8 billion loan from CIB Bank.  The firm shut down six months ago after
former parent, Cogne Acciai Speciali, found the plant too expensive to
operate.  Cogne cited the over-billing of energy supplier Emasz Rt as one of
its main reasons for shutting down the company.


HOOP SA: Net Profit Up Despite Slightly Down Operating Profit
-------------------------------------------------------------
Polish soft drink producer, Hoop, which recently revised the dates of its
planned initial public offering of five million shares, registered an
increase in its first-quarter net profit.

Online news agency Just-drinks.com said the company posted a net profit of
PLN4.1 million (US$1.1 million/EUR935,100), up from PLN3.6 million
(US$942,000/EUR821,000) in the first three months of 2002.

Turnover for the company also rose to PLN189.1 million (US$49.5
million/EUR43.1 million) from PLN83.3 million (US$48 million/EUR41.8
million) in the corresponding quarter last year.

However, operating profit fell from PLN14.9 million (US$3.9 million/EUR3.4
million) to PLN11.9 million (US$3.1 million/EUR2.7 million).

Based in Warsaw, Poland, Hoop S.A. produces fruit-flavored carbonated
beverages, cola, and mineral water.  Its original schedule for an IPO was
foiled after Jaroslaw Suplacz, an independent analyst, published a report
via the Internet valuing the company at less than PLN 5 per share, well
below other analysts' expectations of PLN 26 per share.  He also suggested
that Hoop's existing shareholders might be guilty of stripping the company
of assets, and that the company was on the verge of bankruptcy.

Hoop denied such allegations and said it would file a lawsuit against
Suplacz with the public prosecutor.

CONTACT:  HOOP
          01-102 Warszawa ul.
          Jana Olbrachta 94
          Phone: (022) 338-18-18
          Fax: (022) 338-18-28
          E-mail: warszawa@hoop.com.pl


POLSKIE HUTY: First-half Results Highlight Huge Improvement
-----------------------------------------------------------
Polish steel giant Polskie Huty Stali improved its results in the
first-half, recording a 77% decrease in net losses compared to the previous
year.

PHS president Jerzy Podsiadlo said last week the company's first half net
loss was PLN67.2 million on sales of PLN3.5 billion.  Its profit on sales
was PLN10.7 million.  The figure was a loss of PLN271.1 million a year
earlier.

"We have significantly improved our financial results throughout the second
quarter, as synergies have started to bring the first profits," Mr.
Podsiadlo said.

According to the company, the improvements were brought about by the
company's ongoing restructuring, including the shutting down of ineffective
production lines, the good situation on the global steel market and
increased exports due to the weaker Polish zloty.

The second-quarter results also fared better than last year's: revenues rose
by 18% to PLN1.9 billion from PLN1.6 billion in the first quarter; profit on
sales reached PLN50.5 million versus a first quarter net loss on sales of
PLN39.8 million; net loss was down to PLN2.8 million in the second quarter
from a PLN64.5 million in the first.

As for net profit, Mr. Podsiadlo said it would depend on the company's
ongoing restructuring, and the unwinding of its debt, which currently stands
at PLN4.9 billion.

Polskie Huty Stali, created in 2002 from top mills Huta Katowice, Huta
Sendzimir, Florian and Cedler mills, accounts for 70% of Polish steel
output.  It makes over 6 million tons of steel a year.


UPC POLSKA: Secures Nod on Request to Retain FTI Consulting
-----------------------------------------------------------
UPC Polska, Inc., sought and obtained approval from the U.S.
Bankruptcy Court for the Southern District of New York to retain
FTI Consulting, Inc., as its Financial Advisor.

The Debtor retained FTI pre-petition to assist in the structuring
and implementation of the Restructuring Agreement and, ultimately, the Plan.
In providing this advice, FTI has become well acquainted with the Debtor's
business, capital structure,
creditors and other related matters, which experience and
expertise will assist FTI in providing effective and efficient
services to the Debtor in this case. Should the Court approve the Debtor's
retention of FTI as financial advisor, FTI will continue, without
interruption, to perform similar services for the Debtor as FTI performed
prior to the Petition Date.

FTI will:

    (a) Prepare a report on the valuation of the Company as of
        December 31, 2002;

    (b) Prepare a liquidation analysis of the Company;

    (c) Attend meetings of management and counsel related to the
        reorganization effort as deemed necessary by the
        Company;

    (d) Present FTI's views in a PowerPoint presentation or
        other writing regarding the Company's contemplated
        restructuring and valuation to the Company's Board of
        Directors on a conference call and address
        telephonically the comments of the Board of Directors,
        if any.

    (e) Advise the Company with respect to the formulation of a
        potential "Recapitalization Plan." As used herein, a
        "Recapitalization Plan" means a plan compiled in
        conjunction with the Company, certain of the Company's
        bondholders and UPC Telecom B.V., which is the Company's
        largest creditor and sole shareholder, that provides for
        the restructuring, refinancing, retirement or repurchase
        in connection with a bankruptcy reorganization of the
        Company of some or all of the Company's long-term
        indebtedness for borrowed money including, without
        limitation, the Company's publicly traded debt
        instruments and the Company's indebtedness to its
        affiliates;

    (f) Advise the Company with respect to strategies by which a
        Recapitalization Plan may be implemented and assisting
        the Company in connection with such implementation;

    (g) Advise the Company on tactics and strategies for
        negotiating with its various groups of creditors in
        connection with the development of any Recapitalization
        Plan;

    (h) Advise the Company on the timing, nature, and terms of
        issue of any new securities or of other consideration or
        inducements to be offered pursuant to any
        Recapitalization Plan;

    (i) Coordinate, and assist as necessary in the preparation
        of reports and filings and the presentation of
        testimony, in bankruptcy court or any other court or as
        requested by the Office of the United States Trustee,
        including monthly operating reports, Statements of
        Assets and Liabilities and Statements of Financial
        Affairs, and make available its staff and others who
        perform services for the Debtor for purposes of
        discovery or any judicial hearing required in connection
        with any Recapitalization Plan or any Recapitalization
        Transaction;

    (j) Coordinate, and assist as necessary in the preparation
        and review of financial information for distribution to
        the creditors and/or other parties-in-interest in any
        Recapitalization Transaction, such as cash receipts and
        disbursements analyses;

    (k) Coordinate, and assist as necessary in the preparation
        of financial information and documents necessary for
        confirmation of any Recapitalization Plan and any
        Recapitalization Transaction, including information to
        be contained in the Disclosure Statement, and the
        presentation of testimony related thereto.

    (l) If requested by the Company, review and analyze the
        Company's business, operations and financial projections
        and provide a valuation of the Company after giving
        effect to any contemplated Recapitalization Plan to be
        described in a Plan of Reorganization and a Disclosure
        Statement; and

    (m) Render such other general business consulting or such
        other assistance as the Debtor or its counsel may deem
        necessary that are consistent with the role of a
        financial advisor and not duplicative of services
        provided by other professionals in this proceeding.

Kevin Lavin, Senior Managing Director of FTI Consulting, tells the Court
that his firm charges by the hour for its services at these customary rates:

     Senior Managing Director             $550 to $625
     Managing Director/Director/Manager   $395 to $550
     Associates/Sr. Associates            $195 to $365
     Administrative/Paraprofessional      $ 75 to $160

UPC Polska, Inc., headquartered in Denver, Colorado, is an
affiliate of United Pan-Europe Communications N.V.  The Debtors is a holding
company, which owns various direct and indirect
subsidiaries operating the largest cable television systems in
Poland. The Company filed for chapter 11 protection in July 7,
2003 (Bankr. S.D.N.Y. Case No. 03-14358).  Ali M.M. Mojdehi, Esq., and Ira
A. Reid, Esq., at Baker & McKenzie represent the Debtor in its restructuring
efforts.  As of March 31, 2003, the Debtor listed $704,000,000 in total
assets and $940,000,000 in total debts.


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


TERRA LYCOS: Reports 66% Year-on-year Improvement in EBITDA
-----------------------------------------------------------
Terra Lycos (MC: TRR; NASDAQ: TRLY), the global Internet Group, released its
financial results for the first half of 2003.

Revenues

In the first six months of 2003, Terra Lycos recorded revenue growth of 11%
compared to the same period in 2002, excluding the exchange rate effect and
revenues derived from the Group's agreement with Bertelsmann in the first
six months of 2002 and revenues derived from its strategic alliance with
Telefonica in the first half of this year.

The Company reported revenues of EUR321 million in constant-1H02-euros, i.e.
revenues in local currency excluding the exchange rate effect.  After the
consolidation of local currency revenues, total revenues were negatively
impacted by EUR67 million, due to the effect of the strengthening of the
euro; 65% of Terra Lycos revenues are in denominations other than the euro.

To see graph on evolution of revenues:
http://bankrupt.com/misc/Evolution_of_Revenues.pdf

The long-term strategic alliance with Telefonica replaced the agreement with
Bertelsmann, which was based on advertising and e-commerce.  This new
alliance, among other things, consolidates Terra Lycos as the Telefonica
Group's Internet portal and exclusive provider of value-added services for
at least the next six years, without putting limits to Terra Lycos as an
Internet access provider.

The end of the agreement with Bertelsmann and the start of the new alliance
with Telefonica, yielded a negative impact of EUR28 million euros, at
constant euros of the first half of 2002.  Although this alliance means less
revenues for the first three years, it guarantees profitability and
stability for Terra Lycos' business model in the medium and longer term
(minimum 6 years vs 3) assuring a minimum annual value of EUR78.5 million,
and will lead to greater geographic and product diversification.

In the first six months of the year, the access business accounted for 40%
of Terra Lycos revenues; value-added communication, portal and content
services accounted for 24%; advertising and e-commerce accounted for 24%;
and 12% of revenues came from corporate & SMEs services and other revenues.

The change in the Company's business model has resulted in a positive trend
in the diversification of Terra Lycos' revenues.  Particularly noteworthy is
the growth in revenues generated by value-added communication, portal and
content services, which accounted for 24% of total revenues this half,
versus 7% in 1H02.

The Company's positive move towards charging for content and communication
services through its "O.B.P" (Open, Basic, Premium) model has meant that,
during the first six months of the year, revenues from subscriptions to
value-added services, excluding access, accounted for 27% of total revenues.
Examples of O.B.P. include communication and portal services such as
financial information, secure e-mail, web publishing and dating, in addition
to services offered exclusively to Telefonica.

During the first half of this year, Terra started marketing mundoADSL
jointly with Telefonica de Espana.  This product is a communication,
educational and entertainment tool that integrates quality services and
content and is designed to allow users to make the most of ADSL technology
at home.  We also note the collaboration agreement signed with the Spanish
Ministry of Science and Technology, the Child Protection Department and
other organizations including the European Union to encourage initiatives to
ensure Internet safety for children and young people.

In Brazil, Terra Lycos is showing positive results in charging for content
and services.  The company has gained over 500,000 subscribers for
value-added communication, portal and content services in this country in
the past 12 months.  In addition, the company now has over one million
subscribers to access services in Brazil, including SMEs.

The company has reached new agreements and consolidated existing
relationships with some of the largest advertisers in the U.S., including
American Express, AT&T Wireless, Bank of America, Dell, Google, Hewlett
Packard, Federal Express, IBM, Kraft, Samsung, T-Mobile, Universal Pictures,
U.S. Army, Volvo and Western Union.

Operating Expenses

In the first half of 2003, Terra Lycos, through efficient management
operations backed by a steady improvement in processes, continued to
progressively reduce operating expenses even further.  The company reduced
costs by 32% compared to the same period last year.  The largest savings,
made in supplies, marketing and personnel costs, were largely obtained
through the initiatives implemented by the new Global Operations management
team.

Operating Margin - EBITDA

In the first six months of 2003, EBITDA improved by EUR45 million compared
to the same period last year, reaching -EUR28 million, in line with the
constant upward trend of EBITDA over the last twelve quarters.  The EBITDA
margin in current euros was -11%, an increase of 12 percentage points
compared to the same period last year.

Excluding the exchange rate effect, EBITDA for the first six months of the
year in constant first-half- 2002 euros increased to -EUR25 million, with an
EBITDA margin of -8%.  This is an improvement of 66% and 15 percentage
points respectively compared to the first half of 2002.

To see graph on positive evolution of EBITDA:
http://bankrupt.com/misc/Evolution_of_Ebitda.pdf

Net Income

In 1H03, Terra Lycos reported net income of -EUR98 million euros, an
improvement of 58%, or EUR136 million, compared to the same period last
year.

The rise in net income was prompted by the improvement in EBITDA, efficient
management operations during the half and the write-down of assets for
EUR1.4 billion made by Terra Lycos at the close of 2002, in a show of
transparency and use of conservative accounting practices, adapting the book
value of investments made in the past to current market conditions.

Cash

Terra Lycos has one of the strongest cash positions in its sector, which
allows the Group to finance its operations and seize business opportunities
with the aim of achieving profitable growth. Efficient cash flow management
has allowed the company to close this half with EUR1.6 billion.

Operating Results

At the end of June 2003, Terra Lycos had a total of 3.6 million customers
paying for access, communication, portal and content services, a 59%
increase in the number of paying customers compared to June of last year.
As of June 30, the company had a base of 477,000 ADSL customers, an increase
of 59% compared to June 2002 and a rise of 26% in the first six months of
the year.

Subscribers to communications and portal services grew 127% compared to the
same period in 2002, boosted by the success of the products and services
launched in different countries and the alliance with Telefonica.

About Terra Lycos

Terra Lycos is a global Internet group, with a presence in 40 countries in
19 languages.  The group, which resulted from Terra Networks, S.A's
acquisition of Lycos, Inc. in October of 2000, operates some of the most
widely visited Web sites in the U.S., Europe, Asia and Latin America, and is
the largest access provider in Spain and Latin America.

Terra Lycos' network of Web sites includes Terra in 18 countries, Lycos in
22 countries, Angelfire.com, Atrea.com, Azeler.es, Educaterra.com,
Gamesville.com, HotBot.com, Ifigenia.com, Invertia.com, Lycos Zone,
Maptel.com, Matchmaker.com, Quote.com, RagingBull.com, Rumbo.com,
Tripod.com, Uno-e.com and Wired News (Wired.com), among others.

Terra Lycos, with headquarters in Barcelona and operating centers in Madrid
and Boston, as well as elsewhere, is listed on the Madrid stock exchange
(ticker: TRR) and on the NASDAQ electronic market (ticker: TRLY).

CONTACT:  TERRA LYCOS
          Miguel Angel Garzon
          Public Relations
          Phone: +34-91-452-3921
          E-mail: miguel.garzon@corp.terralycos.com

          Kirsten Murawski
          Public Relations (U.S.)
          Phone: +1-781-370-2691
          E-mail: kirsten.murawski@corp.terralycos.com

          Miguel von Bernard
          Investor Relations
          Phone: +34-91-452-3278
          E-mail: relaciones.inversores@corp.terralycos.com


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


ABB LTD.: Antitrust Regulator Approves Yit Transaction
------------------------------------------------------
On July 4, 2003 YIT Corporation signed an agreement whereby it purchased
from ABB the company's Building Systems operations, which offer technical
building systems, property and industrial services in Finland, Sweden,
Norway, Denmark, the Baltic states and Russia.

The approval of the competition authorities was required before the deal
will enter into force.  On July 23, 2003 the Swedish Competition Authority
announced that it has approved the acquisition of the Building Systems
operations in Sweden.  The Finnish Competition Authority approved the
acquisition of the Building Systems operations in Finland on July 18, 2003.

ABB Ltd. is currently selling assets to reduce debts estimated to reach
between US$6.5 billion to US$8.2 billion at the end of the year.

CONTACT:  YIT INSTALLATION LTD.
          President Juhani Pitkakoski
          Phone: +358 20 433 3738,
          E-mail: juhani.pitkakoski@yit.fi

          YIT CORPORATION
          Vice President Veikko Myllyperkio
          Phone: +358 20 433 2297,
          E-mail: veikko.myllyperkio@yit.fi


ABB LTD.: To Outsource Information Systems Operations to IBM
------------------------------------------------------------
ABB and IBM said Monday they reached a ten-year agreement to outsource close
to 90% of ABB's information systems infrastructure operations -- including
the transfer to IBM of more than 1,200 employees.

The agreement is valued at US$1.1 billion and builds on a well-established
relationship between the two companies.  The contract is part of ABB's
strategy to focus on its core industrial businesses and will help ABB
significantly reduce costs over the period.  Combined with pilot contracts
signed in the fourth quarter of 2001 for approximately US$600 million, the
full value of the relationship will approach US$1.7 billion over ten years.

"This long-term deal allows us to significantly take down costs, while
benefiting from IBM's global expertise," said Peter Voser, ABB's chief
financial officer.  "It benefits both ABB and IBM," he said.

IBM Global Services will take responsibility for the operation and support
of information systems infrastructure in 14 countries in Europe and North
America -- representing some 90% of ABB's IS infrastructure.  The deal
includes taking over the management of servers, operating systems, corporate
networks, personal computers, and help desks.

Dominique Cerutti, general manager of IBM Global Services, Europe, Middle
East and Africa, said: "In today's tough economic climate, this agreement
represents a strong statement by ABB that it intends to expand its position
as a leader in the manufacturing industry.  This is a powerful alliance of
leading players which will not only transform ABB's IT infrastructure, but
over time it will bring to bear the full capabilities of IBM's research,
consulting, and industry knowledge to create tangible, long term, business
advantage for ABB."

In addition to the 510 ABB employees already transferred under the Sweden
and India pilots, the agreement will include the transfer of approximately
780 ABB employees to IBM.  In most cases, this transfer of responsibilities
will take place in September 2003.  A small team will stay with ABB to
oversee and coordinate activities with IBM.

ABB (http://www.abb.com)is a leader in power and automation technologies
that enable utility and industry customers to improve performance while
lowering environmental impact.  The ABB Group of companies operates in
around 100 countries and employs about 135,000 people.

IBM Global Services is the world's largest information technology services
and consulting provider, generating over US$36 billion in 2002.
Approximately 180,000 professionals serve customers in over 160 countries,
providing the entire spectrum of customers' e-business needs -- from the
business transformation and industry expertise of IBM Business Consulting
Services to hosting, infrastructure, technology design and training
services.  IBM Global Services delivers integrated, flexible and resilient
processes - across companies and through business partners -- that enable
customers to maximize the opportunities of an on-demand business
environment.


SWISS INTERNATIONAL: Lufthansa Takeover Shaping Up, Says Report
---------------------------------------------------------------
Germany's Deutsche Lufthansa AG and Swiss International Air Lines may enter
a deal that will keep Switzerland's struggling national carrier operational,
online news agency Bloomberg reported, citing Swiss newspaper SonntagsBlick.

The report indicated that Lufthansa might take control of the unprofitable
national carrier with an option to buy the company using shares.  Two weeks
ago, though, the German carrier denied having made an offer.

Swiss may also get a CHF500 million- cash injection from Deutsche Bank,
Lufthansa's financier, said an unnamed manager at Swiss, according to the
report.  A decision about the future of Swiss International will be taken
either on August 6 or August 13 after the weekly meeting of the Swiss
government, the report further noted.

Swiss International, which needed to cut costs by CHF1.6 billion, has been
open about the possibility of renouncing its independence.  The Swiss
federation is Swiss' biggest shareholder of the carrier.


SWISS RE: S&P Cuts Ratings of Core Subsidiaries; Outlook Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
counterparty credit and insurer financial strength ratings on Zurich-based
global reinsurer Swiss Reinsurance Co. and related core subsidiaries of the
Swiss Re group (Swiss Re) to 'AA' from 'AA+'.  The outlook is stable.

"The downgrade primarily reflects a re-evaluation by Standard & Poor's of
reinsurance industry risk and Swiss Re's position within that industry
following the relative underperformance in its non-life underwriting
profitability," said Standard & Poor's credit analyst Stephen Searby.

The action also reflects the slower-than-expected recovery in Swiss Re's
earnings and the impact this may have on the group's ability to fully
replenish capital during the current hard phase of the cycle.  Nevertheless,
the ratings remain underpinned by Swiss Re's very strong business position,
superior management team, and very strong financial flexibility (defined as
the ability to source capital relative to requirements).

The stable outlook is based on Standard & Poor's expectation that the group
will maintain or improve its business position in the life reinsurance
market over the longer term as it exports the roll out of a well-established
and successful business model into new territories.

It is expected that there will be further improvement in the combined ratios
of the property/casualty and financial services business groups to the
target levels of 100% and 95%, respectively, for the year ending Dec. 31,
2003.  Standard & Poor's considers this prospective performance to be
strong, but not yet consistent with a rating in the 'AA' range at the
current stage in the cycle.  However, this is partly mitigated by continued
very strong and stable profitability from the life and health business
group.  Risk-based capital adequacy is expected to strengthen over the next
few years, but reliance on soft forms of capital will remain relatively
high.

                     *****

Swiss Re, which is hoping to return to profit this year after posting a net
loss of CHF91 million in 2002, is expecting first-half write-downs to be
narrower than the impairment charges carried into the current business year.

A spokesman for the world's largest reinsurer said investment write-downs
will impact first half results but at a lower level than SFR1.4 billion.
There is no current need for a capital increase as well, and no acquisitions
are planned.


CONTACT:  STANDARD & POOR'S
          Stephen Searby, London
          Phone: (44) 20-7847-7053
          Rob Jones, London
          Phone: (44) 20-7847-7041



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


BRITISH BIOTECH: Posts Formal Documentation of Proposed Merger
-------------------------------------------------------------
British Biotech announces that the Offer Document and the related Listing
Particulars in respect of the recommended Offer by J. P. Morgan plc on
behalf of British Biotech for Vernalis, which was announced on July 3, 2003,
were posted to Vernalis Shareholders on Monday.  A circular in connection
with the Merger was also posted to British Biotech Shareholders at the same
time.  The first closing date of the Offer is August 18, 2003.

Unless expressly stated otherwise, terms defined in the Offer Document have
the same meanings in this announcement.

Forms of Acceptance should be completed, signed and returned in accordance
with the instructions set out in the Offer Document and in the Form of
Acceptance so as to be received by Capita IRG plc, the receiving agents for
the Offer, as soon as possible and, in any event, not later than 3.00 p.m.
on August 18, 2003.  Any extensions of the Offer will be publicly announced
by 8.00 a.m. (London time) on the business day following the day on which
the Offer was due to expire.

British Biotech has also published the following documents in respect of its
Annual Report and Accounts, and the AGM to be held on October 1, 2003:

(a) Annual Report and Accounts 2002/03;
(b) Notice of AGM; and
(c) Form of Proxy.

Copies of the above documentation have been submitted to the U.K. Listing
Authority and will shortly be available for inspection at the U.K. Listing
Authority's Document Viewing Facility, which is situated at 25, The North
Colonnade, Canary Wharf, London E14 5HS. Telephone no. +44 (0)20 7676 1000.

CONTACT:  BRITISH BIOTECH
          Tony Weir
          Phone: +44 (0)1865 781 166

          BRUNSWICK GROUP
          Jon Coles
          Phone: +44 (0)20 7396 5959


BRITISH ENERGY: E.U. Commission Issues View on State Aid Request
----------------------------------------------------------------
British Energy has made available the letter sent by the European Commission
to the U.K. Government relating to its State Aid application for
restructuring aid to British Energy, detailing the Commission's preliminary
views and establishing the procedure for further considering the State Aid
application.

The letter contains financial and other information about British Energy and
about the State Aid application.  This letter is expected to be published sh
ortly by the European Commission in the Official Journal of the European
Communities.

To See The European Commission's Communication:
http://bankrupt.com/misc/EC_Communication.pdf


CHUBB PLC: Announces Changes in Management, Interim Results
-----------------------------------------------------------
United Technologies Corporation announced Monday that the recommended cash
offer by its wholly owned subsidiary, Ceesail Limited, for the entire issued
share capital of Chubb plc had been declared unconditional in all respects.
As at 3.00 p.m. Monday, the Offeror had acquired or agreed to acquire, or
received valid acceptances under the Offer in respect of, in aggregate,
566,571,357 Chubb ordinary shares, representing approximately 68.34% of the
existing issued share capital of Chubb.

Chubb Board Changes

Chubb announces that, this afternoon, Olivier Robert has joined the board of
Chubb as an executive director, and William H. Trachsel and Todd J. Kallman
have joined the board of Chubb as non-executive directors.  Olivier Robert
has also been appointed President and Chief Executive of the company,
replacing Jonathan Findler as Chief Executive.  Jonathan Findler, Sir Victor
Blank, John Roques, Sir David Rowe-Ham and John Sussens have resigned from
the board.

In connection with the appointments, there are no details that are required
to be disclosed by paragraphs 16.4(a) or 6.F.2(b) to (g) of the Listing
Rules of the U.K. Listing Authority.

Delisting

Application has been made by Chubb to the U.K. Listing Authority for the
cancellation of Chubb's listing on the Official List of the U.K. Listing
Authority and to the London Stock Exchange for the cancellation of the
admission to trading of Chubb shares on the London Stock Exchange's market
for listed securities.  It is anticipated that cancellation of listing and
admission to trading will take effect from August 27, 2003, being 20
business days following the date of this announcement.

Interim Results

Following the Offer being declared unconditional in all respects, the
announcement of Chubb's interim results for the first half of 2003 has been
delayed beyond July 31, 2003.  A further announcement will be made in due
course as appropriate.

Level of Acceptances update

As at 3.00 p.m. Monday, valid acceptances of the Offer had been received in
respect of 483,500,367 Chubb Shares representing approximately 58.32% of the
existing issued share capital of Chubb.

Prior to the commencement of the Offer Period on April 16, 2003, United
Technologies Corporation held 500,000 Chubb Shares, representing
approximately 0.06% of the existing issued share capital of Chubb.  During
the Offer Period, the Offeror has acquired, or agreed to acquire, in
aggregate, 82,570,990 Chubb Shares, representing approximately 9.96% of the
existing issued share capital of Chubb.

Prior to the announcement of the Offer on June 11, 2003, the Offeror had
received irrevocable undertakings to accept (or procure the acceptance of)
the Offer from the Chubb Directors in respect of their entire beneficial
holdings of, in aggregate, 101,538 Chubb Shares, representing in aggregate
approximately 0.01% of the existing issued share capital of Chubb.  Valid
acceptances have been received in respect of all the Chubb Shares subject to
the irrevocable undertakings and are included in the total number of valid
acceptances referred to above.

Save as disclosed in this announcement or the Offer Document, neither United
Technologies Corporation nor the Offeror, nor any persons acting or deemed
to be acting in concert with United Technologies Corporation or the Offeror,
held any Chubb Shares (or rights over any Chubb Shares) prior to the Offer
Period and neither United Technologies Corporation nor the Offeror nor any
persons acting or deemed to be acting in concert with United Technologies
Corporation or the Offeror, have acquired or agreed to acquire any Chubb
Shares (or rights over any Chubb Shares) since the commencement of the Offer
Period.

CONTACT:  UBS INVESTMENT BANK
          Emma Goodrick
          Phone: +44 20 7567 8000

          Leanne Gordon-Kagan
          Phone: +44 20 7567 8000

          JPMORGAN
          Mark Breuer
          Phone: +44 20 7777 2000
          Edward Banks
          Phone: +44 20 7777 2000

          COMPUTERSHARE INVESTOR SERVICES
          Phone: +44 870 703 0147


CORDIANT COMMUNICATIONS: Syrian Investor Faces Jail Time
--------------------------------------------------------
The Department of Trade and Industry confirmed that it is launching an
investigation into the disclosures made by Syrian investor Nahed Ojjeh when
she bought shares in Cordiant Communications.

The agency is looking into possible breached of the Companies Act on the
part of Mrs. Ojjeh when she failed to disclose in a timely fashion her
purchase of a 3% stake in the advertising firm.

"We are looking into the matter," a DTI spokeswoman said, according to The
Independent News.  A violation requires a maximum penalty of two years
imprisonment.  Other options are a fine, censure, or both.

The confirmation follows the Takeover Panel's public censure of the act when
Mrs. Ojjeh failed to disclose some of her share purchases within 24 hours of
the trades being struck.  Mrs. Ojjeh built a 10.95% stake in Cordiant, and
lost about GBP400,000 since her valuation of the shares was significantly
higher than WPP's 2.5p a share offer, which Cordiant accepted last week.


HOLMES PLACE: Posts Circular in Relation to Health Club's Offer
---------------------------------------------------------------
Recommended Offer by N M Rothschild & Sons Limited on behalf of Health Club
Group plc for Holmes Place PLC

Circular Posted to Shareholders

Holmes Place PLC announces that it has on Monday posted a circular to
current Holmes Place Shareholders.

A copy of the above circular has been submitted to the U.K. Listing
Authority and will shortly be available for inspection at the UK Listing
Authority's Document Viewing Facility, which is situated at:

Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
Phone: 020 7676 1000

Documents will normally be available for inspection within six normal
business hours of this notice being given.

Holmes Place Shareholders who wish to accept the Offer, and who have not
done so, should complete their form(s) of acceptance, in accordance with the
instructions printed thereon, whether or not their Holmes Place Shares are
in CREST, and return them, as soon as possible, and in any event, so as to
be received by post or during normal business hours by hand to the receiving
agents to the Offer, Capita IRG Plc at PO Box 166, The Registry, 34
Beckenham Road, Beckenham, Kent BR3 4TH.  Additional forms of acceptance are
available from Capita IRG Plc, by telephoning 0870 162 3100 (if calling from
within the U.K.) or +44 208 639 2157 (if calling from overseas).

                     ****

In May, Holmes Place said the offer values each of the company's share at 25
pence and the entire issued and to be issued share capital of Holmes Place
at approximately GBP25.4 million.

It said that the key reasons for the unanimous recommendation of the offer
are: the company is currently in material breach of its existing banking
arrangements; it has committed capital obligations of approximately GBP73
million during the next three years which could not be funded out of  its
existing debt facilities; the company's trading deteriorated significantly
during 2002; and the Company continues to underperform against budget and
the outlook remains uncertain.

CONTACT:  Hudson Sandler
          Wendy Baker
          Phone: 020 7710 8917

          ROTHSCHILD
          Avi Goldberg
          Phone: 020 7280 5000
          Alex Midgen
          Phone: 020 7280 5000


INTRUM JUSTITIA: Accounting Errors Discovered in British Outfit
---------------------------------------------------------------
As previously announced, Intrum Justitia will publish its Interim Report for
the period January-June 2003 on August 19.

In preparing its half-year accounts, Intrum Justitia discovered accounting
inaccuracies in England.  Intrum Justitia has thus initiated and intensified
a thorough review to further substantiate the necessary adjustments to its
accounts and the reasons for the inaccuracies.  At present, the company's
best estimate is that these adjustments will equate to an item affecting
comparability amounting to SEK80 million before tax.

A new management team for the English operations, consisting of Mr. John
Easden as Country Manager and Brian Hanks as Financial Manager, is in place.
The previous Country Manager, Mr. Jim Burton, and the previous Financial
Manager, have left their positions.

Preliminarily, the Intrum Justitia Group will report revenues of
approximately SEK1,410 M (1,332) for the first half-year 2003, an increase
of 5.9%, of which 2.9% was organic.  Preliminarily, operating earnings
(adjusted EBITA) amounted to SEK202 million (214), excluding the item
affecting comparability ensuing from the accounting inaccuracies.

"I feel comfortable that the new management team in England will solve all
outstanding issues in connection with the accounting inaccuracies we
discovered", said Mr. Jan Roxendal, CEO of Intrum Justitia.  "We have a
sound operation in England - Intrum Justitia is the number one company and
our position has recently been strengthened by new business gains."

CONTACT:  INTRUM JUSTITIA
          Jan Roxendal, President & CEO
          Phone: +46 (0)8 546 10200

          Anders Antonsson, Director of Communications
          Phone: +46 (0)8 546 10206
          Mobile: +46 (0)70 336 7818
          E-mail: a.antonsson@se.intrum.com


INVERESK PLC: Interim Results Confirm Return to Profitability
-------------------------------------------------------------
Inveresk Plc released its interim results recently.  These are the
highlights:

(a) Recapitalization and refinancing exercise completed by April
    2003 providing the company with a strong financial base from
    which to develop its specialty paper businesses in St.
    Cuthberts in Somerset and Carrongrove in Stirlingshire,
    Scotland.

(b) Continuing businesses achieved profits for the 6 months to
    June 30, 2003 before interest of GBP2.021 million compared
    to losses of GBP0.016 million in the corresponding period of
    the previous year.  Retained profits for the period
    attributable to shareholders amount to GBP1.609 million
    (2002 Loss GBP10.216 million).

(c) Positive levels of cash generation from the company's
    operating mills is providing the impetus for focused capital
    expenditure and planned maintenance programs of the
    company's paper making machinery resulting in improved
    efficiency and expansion of available capacity.

(d) Development of higher value products at each mill customized
    to client specification on a worldwide basis.

(e) Planned relaunch of the 'Gemini' brand in Autumn 2003 at
    Carrongrove Mill.

(f) Pulp prices have increased during the six months under
    review but have since declined in line with expectations.

(g) Export led sales at both Carrongrove and St Cuthberts have
    benefited from currency influences in respect of both the
    Euro and U.S. dollar.

Alan Walker, Chief Executive Officer, said: "We are very pleased to be able
to confirm the company's restoration to profit.  The past difficulties are
well and truly behind us and our management teams at Carrongrove and St.
Cuthberts are now able to focus their energies on the many challenges which
lie before us in further developing our niche businesses."

To view full report and financials:
http://bankrupt.com/misc/Inveresk_PLC.htm

CONTACT:  INVERESK PLC
          Alan Walker, Chief Executive Officer
          Phone: 0207 240 1234

          Gordon Thomson, Finance Director
          Phone: 01324 827200

          Jan Bernander, Non Executive Chairman
          Phone: 00 46 708 556400


IREVOLUTION GROUP: To Delist from Footsie August 27
---------------------------------------------------
The Directors of iRevolution announce that the company will post a circular
to shareholders concerning the cancellation of the listing of the Company's
shares on the Official List of the U.K. Listing Authority and of trading in
the shares on the London Stock Exchange's market for listed securities with
effect from August 27, 2003.

Once the listing and the admission to trading of the shares have been
cancelled, there will be no market on which iRevolution shares can be
traded.

Background and Recent History

On May 13, 2003, the company announced that the Board was in discussions
concerning a potential offer for the company.  On June 6, 2003, the company
announced its interim results in which the Chairman's statement referred to
market conditions continuing to prove difficult.  In addition, the Board
stated that the talks with a potential offeror were ongoing and that the
Board was continuing to explore ways of achieving the optimal outcome for
shareholders given the current cash position of the Group.  On July 8, 2003,
the Directors announced that the offer discussions had concluded
unsuccessfully.

As explained in the Chairman's Statement, which accompanied the Interim
Results, the Group needed to achieve an increase in sales over the next few
months to become cash generative.   Regrettably over the past few weeks, the
prospect of this increase has receded and the Group continues to consume
cash.  It is against this background that the Directors also announced on
July 8, 2003 that they were in discussions concerning the potential disposal
of the company's remaining operating subsidiary, iRevolution Limited.

Those discussions have resulted in non-binding outline terms being agreed
for the sale of the subsidiary.  If completed on the proposed terms, the
proceeds of GBP225,000 would not add significantly to the cash resources of
the Group.  This is a result of the majority of the Group's current cash
resources being held within iRevolution Limited and consequently included in
the proposed disposal.

Following the proposed disposal, the company will have no source of income
and the drain of a net cost from leases still in existence from the Group's
former distribution and manufacturing activities.  As a result, there is
unlikely to be any value remaining for shareholders following the disposal.

The proposed disposal would constitute a Class 1 transaction under the
Listing Rules and, as such, would require a circular and shareholder
approval at an extraordinary general meeting.  This would result in costs
that the Directors consider would be inappropriate given the likely outcome
for shareholders following the proposed disposal.

Consequently, and in the absence of an offer for the company as a whole, the
Directors are of the opinion that the company should seek to cancel its
listing, proceed with the disposal and then conduct a winding-up of the
Company.

Cancellation of listing

Under the Listing Rules, a listed company may cancel its listing by
notifying a Regulatory Information Service and sending a circular to
shareholders giving at least 20 business days notice of the intended
cancellation.  There is no requirement for the approval of shareholders in
general meeting.

It is anticipated that the cancellation of the listing of the shares will
take effect at 8.00 a.m. on August 27, 2003, being the required 20 business
days following notice to shareholders.  In the meantime, trading in the
Company's shares will continue on a normal market basis until the
cancellation of listing.


JASMIN PLC: Belies Rumors About Cashflow Crisis
-----------------------------------------------
Nottingham-based Jasmin Plc denied current speculations that the company is
experiencing cashflow crisis, reassuring investors there is no reason for
concern regarding its financial footing.

Last month, Jasmin said a revision to the group's existing accounting
policies resulted to a loss for the period to March 31 of GBP1 million.  In
its interim results, the company reported operating loss of -GBP0.6 million
for a turnover of GBP5.8 million.  Loss before tax was GBP0.9 million.  It
also suspended dividend payment for the year.

The producer of IT-based and manufactured products for the transport,
defense and security markets reported forward order book of GBP16 million.


PEARSON GROUP: Revenue Slide Results in First-half Loss
-------------------------------------------------------
Pearson Group released this interim first-half results recently.  These are
the highlights:

         Half year  Half year  Change -   Change -   Full year
           2003        2002   as reported underlying   2002
        GBP million   GBP million                  GBP million
Sales    1,665         1,813    (8)%        (3)%       4,320


Business performance

Operating profit*
            38            76   (50)%        (71)%        493

Profit/(loss) before tax*
          (1)             26    --                       399

Adjusted earnings/ (loss) per share
           (2.3)p       0.5p    --                       30.3p

Operating free cash flow
          (375)     (304)     (23)%                      305

Statutory results

Operating profit/ (loss)
          (110)    (111)       1%                        143

Loss before tax
         (138)     (188)       27%                      (25)

Loss per share
          (20.1)p    (26.0)p      23%                  (13.9)p

Dividend per share
             9.4p       9.1p       3%                    23.4p

Net borrowings
          1,897       1,957       3%                    1,408


*Continuing operations before goodwill, non-operating items and integration
costs.

On track for the full year

(a) Pearson makes most of its sales and all of its profits in
    the second half.

(b) Revenues and operating profits were down in the first half,
    as expected, due to tough trading conditions in advertising
    and technology businesses and phasing of book publishing
    revenues into the second half.

(b) Strong momentum built for second half, based on significant
    market share gains and further cost reductions.

Strong competitive performances

(a) Pearson Education takes the number one position in new U.S.
    School adoptions; U.S. Higher Education continues to grow
    well ahead of the industry.

(b) FT Group profits up as IDC remains resilient and cost
    controls reduce impact of advertising declines at business
    newspapers.

(c) Penguin profits down in first half as expected; best-ever
    publishing schedule in the second half.

Continuing efficiency gains

(a) Ongoing cost reductions offset tough trading conditions in
    business newspapers and technology publishing.

(b) Further integration of school software and book publishing
    businesses.

(c) Working capital management continues to improve.

Marjorie Scardino, Pearson's chief executive, said: "We are confident about
the full year because we are making the most of our strong market positions
and operating on much lower costs.  Our book publishing operations are
proving resilient and performing well ahead of their competitors.  Our
business newspapers, with lower costs and improved content, will bounce back
strongly when business advertising recovers."

Financial review

Sales in the six months to June 30, 2003 were GBP1,665 million, 3% lower
than in the first half of 2002.  Sales were affected by tough trading
conditions for our business newspapers and technology-related operations, a
shift of business into the second half of the year at our education and
consumer publishing businesses and the absence of the one-off, 2002
Transportation and Security Administration (TSA) contract.  Operating profit
was GBP38 million versus GBP76 million last year, due to business phasing.
Adjusted earnings per share fell from 0.5p to a loss of 2.3p.

Operating free cash flow was GBP71 million lower at (GBP375) million.  The
two main factors were business phasing and a receivable due from the TSA.
Improved inventory management resulted in the average working capital to
sales ratio in our book publishing businesses improving to 31.9% (from 32.8%
in 2002).  Total free cash flow improved by GBP8 million to (GBP381)
million, helped by lower finance and integration charges.

On a statutory basis, our loss before tax for the half-year improved 27% to
GBP138m, helped by a lower (non cash) goodwill charge of GBP148m (GBP182m in
2002). The loss reflects the fact that Pearson makes all its profits in the
second half but amortizes goodwill evenly through the year.

Pearson's net borrowings, which are at their peak at the half-year stage,
were 3% lower than last year at GBP1,897 million. The board has declared a
3% increase in the interim dividend to 9.4p.

Outlook

At this stage the outlook for our major businesses is:

(a) At Pearson Education, we expect the U.S. School industry to
    grow at the low end of the 0-3% range and the U.S. College
    industry to grow in the 5-7% range this year.  In both
    markets, we expect to grow ahead of the industry as we build
    on the market share we gained in the first half.  Revenues
    and profits in our Professional business will be
    significantly lower than last year due to the continued
    recession in technology publishing and the absence of the
    one-off, US$400 million TSA contract.

(b) Though corporate and financial advertising remains
    depressed, the FT Group should deliver profits ahead of last
    year.  The FT Group is benefiting from continued strength at
    IDC and further cost reductions across its business
    newspapers.  Those cost measures, together with investments
    in our business newspapers, will increase the benefits of an
    eventual advertising recovery.

(c) At Penguin, we are confident of revenue growth greater than
    the overall consumer publishing industry, which we expect to
    be broadly flat this year, and further profits progress.
    Penguin has its strongest-ever publishing schedule and has
    made an excellent start to the rest of the year.

In the second half, we expect our interest charge to be similar to the
first-half level of GBP39 million based on current exchange rates.  We
expect free cash flow to benefit from reduced finance charges, working
capital efficiencies and lower integration spend.

To See Financials:
http://bankrupt.com/misc/Pearson_PLC.htm

CONTACT:  Luke Swanson/ Jeff Taylor
          Phone: + 44 (0) 20 7010 2310


REEBOK SPORTS: Economic Downturn Forces Firm into Administration
----------------------------------------------------------------
One of Europe's biggest sports club, Reebok Sports Club London, called in
administrators barely a year after it opened in November 2002, online news
agency Leisure Opportunities reported.

It quoted Sportsplex, the owner and operator of the multi-million-pound
sports club in the heart of Canary Wharf, saying that a "dramatic change in
the economic conditions between the time the club was conceived and today"
had forced the site into administration.

The 100,000 sq. ft. site is valued at GBP18 million.  It features 10,000 sq.
ft. of CV equipment and 17,000 sq. ft. of strength equipment.  It is
designed to accommodate up to 10,000 members, and to offer the most
progressive and popular services, programs and amenities.

Although already in the hands of administrators Baker Tilly, the club will
continue to operate while the company restructures its financial affairs.

Reebok managing director Tom Henner was quoted by the press, saying: "We are
in a climate that is suffering.  Of course that contributes to a lower level
of membership.  But we are here and we are still operating, and intend to be
here next week, next month and next year.  We will weather the storm."

CONTACT:  CANARY WHARF REEBOK
          Canary Wharf Group plc
          Press Office
          Rebecca Cockman or Sarah Marrington
          Phone: 020 7418 2345

          Sportsplex International
          Mark Burby
          Phone: 01534 866752


SOMERFIELD PLC: Sets Annual General Meeting September 3
-------------------------------------------------------
Somerfield plc announces that its Annual General Meeting Circular to be
posted to Shareholders this week will include a resolution seeking
Shareholders' general authorization to purchase up to 10% of its issued
Ordinary Share Capital.  The resolution will constitute ordinary business at
the Annual General Meeting.  The Annual General Meeting will be held on
Wednesday 3 September 2003.

                     *****

Somerfield Plc, the U.K. owner of Kwik Save and Somerfield food stores, is
currently target of takeover bids.  Early in the month, Gareth Jones, who
served as non-executive director at Somerfield until August, was reported to
have held negotiations with two unidentified private equity groups about a
possible bid for Somerfield.

The company previously rejected an offer from entrepreneurs John
Lovering and Robert Mackenzie.  J Sainsbury Plc, the U.K.'s second-largest
supermarket chain, who previously indicated it would like to buy certain
assets from the would-be bidders, is still seeking approval from U.K.
regulators for the possible purchase of 171 of the company's 1,280 stores,
in case potential buyout negotiations resume.

CONTACT:  SOMMERFIELD PLC
          Stephen Grant, Company Secretary
          Phone: 0117 935 6108


TELEWEST COMMUNICATIONS: Confirms Speculations on Restructuring
---------------------------------------------------------------
On June 9, 2003, Telewest Communications plc announced that it was in talks
with bondholders on the terms of its proposed financial restructuring.  In
response to recent press comment, Telewest confirms that it expects the
terms to provide that ordinary shareholders will receive 1.5% of the issued
share capital immediately following the restructuring.

CONTACT:  TELEWEST
          Jane Hardman, Director of Corporate Communications
          Phone: 020 7299 5888

          CITIGATE DEWE ROGERSON
          Anthony Carlisle
          Phone: 020 7638 9571 / 07973 611888


                            *********


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.

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