/raid1/www/Hosts/bankrupt/TCREUR_Public/030806.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, August 6, 2003, Vol. 4, No. 154


                            Headlines


F R A N C E

ALSTOM SA: Shares, Depositary Receipts Temporarily Suspended
ALSTOM SA: Government Reaffirms Participation in Rescue Efforts
GENESYS CONFERENCING: Rights Offering Achieves 100% Subscription
VIVENDI UNIVERSAL: To Sell Interest in Xfera to Consortium
VIVENDI UNIVERSAL: Flotation of U.S. Assets Likely, Report Says


G E R M A N Y

ALLIANZ GROUP: To release First-half Results August 14
DRESDNER BANK: Sees 10% Cost Savings in Allianz Integration
SOFTING AG: Turnaround Success Spills Over to Second Quarter


N E T H E R L A N D S

JOMED N.V.: Chances Shareholders Will Get Back Investments Dim
KONINKLIJKE AHOLD: Expected to Report Significant Drop in Sales


N O R W A Y

PETROLEUM GEO: Disclosure Statement Hearing September 10


P O L A N D

KREDYT BANK: Plans to Increase Capital by More than PLN665 Mln
NETIA SA: Change of Company Name Approved


R U S S I A

METROMEDIA INTERNATIONAL: Sells Baltcom Cable to SIA Alina


S W I T Z E R L A N D

BZ GROUP: Emerges Debt-free After Standstill Period
HABSBURG HOLDINGS: Shares Suspended as Report Deadline Lapses
SWISS INTERNATIONAL: Govt Rules Out Rescue; Won't Block Takeover
SWISS INTERNATIONAL: SWX Initiates Formal Investigation
SWISS RE: Arranges US$100 million Catastrophe Risk Swap


U N I T E D   K I N G D O M

ABBEY NATIONAL: Announces Cut in Online Personal Loan Rates
ABERDEEN ASSET: Terminates Sale Discussions for Property Asset
BRITISH AIRWAYS: More Job-cuts Seen Due to Losses from Strike
BRITISH AIRWAYS: Back to Negotiating Table with Workers Union
BRITISH ENERGY: Govt Says Preliminary E.U. Report Not Conclusive

CORUS GROUP: 'B/B' Ratings Affirmed; Senior Unsecured Rating Cut
DRAX COMPANIES: Recovery Prospects for Lenders Coming to Light
EMI GROUP: May be Sold to Blackstone for US$4 Bln, Report Says
HAMLEYS PLC: Baugur's Revised Increased Offer Unconditional
HOLMES PLACE: Health Club Offer Declared Unconditional

JASMIN PLC: Managing, Finance Directors Resign
J SAINSBURY: Explains Founding Family's Alleged Stake Sale Plan
QUEENS MOAT: Reviews Strategies to Address Heavy Debt Load
ROYAL MAIL: Cost-cutting Plan Meets Unexpected Opposition
SIMON GROUP: Completes Disposal of Seawheel Holdings Limited
SUITE FACTORY: Management Plans Buyout, Says Administrator


                            *********


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


ALSTOM SA: Shares, Depositary Receipts Temporarily Suspended
------------------------------------------------------------
The following security has been temporarily suspended from trading on the
London Stock Exchange from 10:35 a.m. on August at the request of the
company pending clarification of the company's financial position.


ALSTOM
Ordinary Shares of EUR6 each        (0-438-775)(FR0000120198)
           fully paid
United Kingdom Depositary Receipts  (0-290-384)(GB0002903846)
           fully paid
          (Each representing 1 Ordinary Share of EUR6 each)

This suspension notice follows the earlier Suspension from Official Listing
Notice issued by the Financial Services Authority.

If you have any queries relating to the above, please contact Issuer
Implementation at the London Stock Exchange on 020 7797 3545.

                     *****

ALSTOM previously said it is in advanced negotiations to ensure its
financial requirements to strengthen its balance sheet, refinance its short
and medium term debt, ensure its liquidity needs and get adequate bonding
facilities.

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


ALSTOM SA: Government Reaffirms Participation in Rescue Efforts
---------------------------------------------------------------
The French government is keeping its word to help France's flagship
engineering group, Alstom, survive the crisis that is threatening the
existence of many European companies.

According to the Financial Times, the state could contribute to half of a
previously announced EUR600 million capital increase, a transaction that
could potentially make it owner of a 30% stake in the distressed firm.  The
reaffirmation came after Finance Minister Francis Mer received hint from
France's three largest banks that bankruptcy would threaten the French and
European financial system.

Banks BNP Paribas, Societe Generale and Credit Agricole was believed to have
asked for substantial government guarantees as a condition for the state's
participation in any debt for equity swap during a meeting with the finance
minister on Saturday.
France must bail out Alstom or face the financial, industrial, and social
consequences Alstom's collapse would bring.  Yet, it must also anticipate
rigorous examination from the European Union's competition authorities,
local daily Les Echos says.

On Monday, the company, which last month reported a sharp fall in first
quarter sales and orders, requested the suspension of trading on its shares.


GENESYS CONFERENCING: Rights Offering Achieves 100% Subscription
----------------------------------------------------------------
Genesys Conferencing (3955) (GNSY) announced that its rights offering with
preferential subscription right for cash, which opened on July 10, 2003, and
closed on July 23, 2003, was successfully completed.

The rights offering, which was launched on July 3, 2003, was subscribed up
to 100%, representing a total of EUR6,192,876.80, inclusive of the issuance
premium.  As a result of the subscriptions, Genesys will issue 2,814,944 new
ordinary shares, which will be quoted on the Nouveau marche of Euronext
Paris starting August 6, 2003.

The new shares to be issued are the result of the exercise of preferential
subscription rights by Genesys' shareholders of 2,632,472 shares.  The
additional new shares were allocated to Universal Capital Partners SA,
Part-Com SA and In'Com SA in connection with their commitment to subscribe
to the rights offering.

The rights offering was also extended to holders of Genesys ADRs, who
exercised subscription rights for 864,224 new ADRs.  It is expected that the
new ADRs will be quoted on the Nasdaq.

The completion of the rights offering was the last condition to Genesys'
financial restructuring, which has now been successfully completed.  As
announced, Genesys will use the proceeds of the rights offering to repay or
repurchase 50% of its outstanding 3% convertible bonds.

The right to exercise the stock options and the right of bondholders to
convert outstanding 3% convertible bonds, as well as the Company's right to
early repayment of the redeemable bonds, will resume on August 6, 2003.

Genesys' undertakings under the financial restructuring plan are detailed in
the French language document de reference, which is available on the Web
site of the Commission des operations de bourse, www.cob.fr, on Genesys' Web
site, http://www.genesys.com,or free upon request at Genesys' headquarters.
The information is also described in the English language annual report on
Form 20-F and the registration statement on Form F-3, relating to the new
Genesys shares to be issued in the rights offering , which were filed by
Genesys with the Securities and Exchange Commission (SEC) on May 15, 2003,
and July 2, 2003, respectively, and which are available on the Web site of
the Securities and Exchange Commission, http://www.sec.com,on Genesys' Web
site, http://www.genesys.com,or free upon request at Genesys' headquarters.
The registration statement on Form F-3 was declared effective by the SEC on
July 3, 2003.  The subscription period is now closed, and all offers to buy
Shares were made pursuant to the prospectus.  The Shares to be sold will
only be sold pursuant to the prospectus.  This press release shall not
constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the Shares in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.

CONTACT:  GENESYS CONFERENCING
          Michael E. Savage
          Phone: +33 4 99 13 27 66
          E-mail: mike.savage@genesys.com

          Investor Relations
          Marine Pouvreau
          Phone: +33 4 99 13 25 17
          E-mail: marine.pouvreau@genesys.com


          Public Relations
          Tricia Heinrich
          Phone: 415-608-6651
          E-mail: tricia.heinrich@genesys.com


VIVENDI UNIVERSAL: To Sell Interest in Xfera to Consortium
----------------------------------------------------------
Vivendi Universal (Paris Bourse: EX FP; NYSE: V) on Monday announced that
the license guarantees in the amount of EUR840 million that it was carrying
on behalf of Xfera were canceled by a ministerial decision taken on July 15,
2003 by the Spanish Telecommunications Ministry.   Vivendi Universal is now
able to sell its 26.3% interest in Xfera.

The shares will be sold for a nominal EUR1 to the other members of the Xfera
consortium, under the terms and conditions of an agreement signed on June
23, 2003.

The purchasers have established new license guarantees that replace the
original guarantees.

Xfera is a consortium that owns a UMTS license in Spain.


VIVENDI UNIVERSAL: Flotation of U.S. Assets Likely, Report Says
---------------------------------------------------------------
French company Vivendi Universal may soon be forced to float its U.S.
entertainment arm as it becomes apparent it would not be getting the price
it is asking for the properties, according to This is London.

After the pullout of Metro-Goldwyn Mayer last week, another leading
contender, John Malone's Liberty Media Group, may likely withdraw soon.
According to sources close to the bidding, Malone's concern also centers on
the price.  The group's exit would leave the company with only one formal
offer, that of an investor group led by Edgar Bronfman, who is also believed
unlikely to raise the US$14 billion Vivendi is asking.  Vivendi is also
asking for another US$1 billion to buy preferred stock owned by Barry
Diller.  The original bid offered were only between US$11 billion and US$12
billion.

To recall, Vivendi Chief Executive Jean Rene Fourtou said he may tender the
assets in a public offering if the auction is unsuccessful.


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


ALLIANZ GROUP: To release First-half Results August 14
------------------------------------------------------
On 14 August 2003 Allianz Group will release the financial results for the
first half year 2003.  The analysts' conference call at 3:00 p.m. CET will
be broadcast live in the internet.

The audio Webcast will be available to download afterwards.

Audio Conference Call

Live broadcast
Starts at 3:00 p.m. CET.

Download

Presentation

The pdf file will be available at approx. 8:00 a.m. CET.

Interim Report

The pdf file will be available at approx. 8:00 a.m. CET.

Press Release/IR Release

The pdf file will be available at approx. 8:00 a.m. CET.

                     *****
Moody's in May placed its rating for the Allianz Group under review for
possible downgrade, and maintained its negative outlook on the ratings of
the group in connection with the company's rights issue process announced in
March.

The rating agency expressed concerns over the sustainability and quality of
earnings of certain major subsidiaries in the short-term.

Moody's is particularly worried about Dresdner bank, which it said is likely
to "remain a material drag on the Group's earnings for some time, given its
reliance on the depressed German economy and its exposure to capital markets
slowdowns."


DRESDNER BANK: Sees 10% Cost Savings in Allianz Integration
-----------------------------------------------------------
The plan of Allianz, Europe's biggest insurer, to integrate Dresdner Bank
into itself will involve a further cut on the unit's cost base of at least
10%, according to the Financial Times.

The report said Dresdner believes it can take up to a further EUR800 million
out of its overheads bill in the course of reducing the expense to EUR6.5
billion this year from EUR7.2 billion last year.  This will come from the
elimination of duplicated staff functions and the centralization of
overheads both within the bank and between the bank and Allianz.  No further
branch closures are expected, although analysts believe there will possibly
be further job cuts, numbering thousands.
Dismissals are likely to hit strongly the marketing and IT functions, and to
a lesser extent the back-office.

Chief Executive Herbert Walter, who made a radical cost-cutting drive at
Deutsche Bank's retail operations, is expected to disclose details of the
restructuring on Dresdner with Allianz's half-year results in August,
according to the report.  The changes are expected to include a rebranding
drive, despite denial from Allianz.  According to senior bankers, there are
already steps taken to incorporate the Allianz group logo on Dresdner
advertising.

Allianz acquired Dresdner for EUR23 billion more than two years ago with
plans of launching the unit as retail outlet for its products.  But losses
of EUR2.0 billion at Germany's third-biggest bank led Allianz to its biggest
ever loss of EUR1.2 billion last year.


SOFTING AG: Turnaround Success Spills Over to Second Quarter
------------------------------------------------------------
In the second quarter, the Softing Group achieved sales revenues of EUR4.6
million.  This brings the Group's sales revenues for the first half-year to
EUR9.4 million (2002: EUR8.2 million), an increase of considerably more than
10%.  The operating loss in the second quarter came in at EUR0.6 million; in
the first two quarters of the current fiscal year, the operating loss
totaled EUR0.7 million (2002: EUR2.2 million).  This figure includes what
are probably the last financial charges from restructuring measures,
amounting to around EUR0.4 million, which resulted from the reduction of the
executive board and the reorganization of personnel.

The incoming orders in the Softing Group amounted to EUR4.5 million in the
second quarter of 2003 and totaled EUR9.3 million overall in the first
half-year (2002: EUR9.8 million).  Softing is therefore ahead of its own
plans, particularly as the second quarter of last year was positively
affected by the receipt of the complete large order from Bruneck in the
amount of nearly EUR1 million.

At EUR5.1 million, cash and cash equivalents were EUR0.3 million higher than
in the year before as of June 30, 2003.  This means that, despite an
economic environment, which remains difficult, the Softing Group was able to
increase its cash and cash equivalents for the third time in a row.

The complete Quarterly Report 2/2003 can be downloaded from the investor
relations section at http://www.softing.comfrom August 13, 2003.


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


JOMED N.V.: Chances Shareholders Will Get Back Investments Dim
--------------------------------------------------------------
JOMED N.V. cannot, at this time, indicate whether or not shareholders will
receive any return on investment.  It is also not likely that this
information will be available prior to the delisting as per October 1, 2003.

Following the July 21, 2003 press release on the delisting individual
shareholders of JOMED N.V. have raised questions in respect of their
shareholding in JOMED N.V.

Under Netherlands bankruptcy law, bankruptcy trustees have the primary
obligation to look after the interests of the creditors of the bankrupt
estate.  This, however, does not automatically mean that a bankruptcy
trustee does not have to consider other stakeholders' interests.

Regarding the situation at JOMED N.V., it is, at this time, not possible to
indicate whether or not shareholders will receive any return on their
investments.  It is also not likely that this information will become
available prior to the delisting of the JOMED N.V. shares as per October 1,
2003.

The bankruptcy trustees of JOMED N.V. have prepared and disclosed a first
public report as per July 1, 2003.  This report contains further information
in respect of JOMED N.V. and it may be found at www.houthoff.com/jomed

The next public report can be expected around beginning of October 2003.

CONTACT:  Christiaan Zijderveld
          Assistant to the Bankruptcy Trustees
          Phone: + 31 20 577 2366

          JOMED N.V.
          Jorgen Peterson, Acting CEO
          Phone: +46 42 490 6014

          Lars-Johan Cederbrant, Acting CFO
          Phone: +46 42 490 6048


KONINKLIJKE AHOLD: Expected to Report Significant Drop in Sales
---------------------------------------------------------------
Second quarter sales of Dutch grocery group Ahold are expected to decline by
more than 10%, according to the Financial Times.

Analysts expect the decline to hit U.S. Foodservice, the distribution arm
found to have committed accounting irregularities in February, and in
Netherlands in relation to Albert Heijn.  According to the report, Andrew
Fowler, an analyst at Merrill Lynch, expects second-quarter sales decline at
U.S. Foodservice to exceed the 1.5% fall posted in the first quarter, while
Alain du Brusle, an analyst at UBS Warburg, forecast total sales 10.5% below
the same period in 2002.

Mr. Fowler also predicted sluggish Dutch sales to undermine European
results.  The Albert Heijn supermarket chain is struggling in a tough market
in the Netherlands.  Currency effects, which analysts forecast at about
EUR13 billion, will also likely drag down sales.

Ahold, which made sales of EUR14.8 billion in the second quarter last year,
will issue a trading update on Friday.


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


PETROLEUM GEO: Disclosure Statement Hearing September 10
--------------------------------------------------------
As previously reported in the Troubled Company Reporter's August 5, 2003
issue, Petroleum Geo-Services ASA filed its Chapter 11 Plan Of
Reorganization and Disclosure Statement with the U.S. Bankruptcy Court for
the Southern District of New York.

Upon consideration of the Debtor's Motion to schedule a hearing to approve
its Disclosure Statement, Honorable Judge Burton R. Lifland schedules the
hearing on September 10, 2003 at 10:00 a.m., before him at the United States
Bankruptcy Court, Southern District of New York, One Bowling Green, New
York, New York 10004 in Room 623.

In this hearing, the Court will consider if the Debtor's Disclosure
Statement contains "adequate information" as such term is defined in Section
1125 of the Bankruptcy Code, for all creditors to arrive at a reasoned
decision whether to accept or reject the Plan.  The Court will also schedule
the Plan confirmation hearing and other relevant deadlines and procedures as
may be appropriate or contemplated by the Plan.

Written objections to the Debtor's request approving the Disclosure
Statement must be filed with this Court and received by:

      (i) Counsel to the Debtor,
          Willkie Farr & Gallagher
          787 Seventh Avenue
          New York, New York 10019
          Attn: Matthew A. Feldman, Esq., and
                Paul V. Shalhoub, Esq.;

     (ii) Petroleum Geo-Services ASA
          PGS House, Strandveien 4
          1366 Lysaker, Norway
          Attn: Stale Gjengset;

    (iii) Counsel to the ad hoc Committee
          Bingham McCutchen LLP
          One State Street, Hartford
          Connecticut 06103
          Attn: Anthony J. Smits;

     (iv) The Office of the United States Trustee
          33 Whitehall Street, 21st Floor
          New York, New York 10004
          Attn: Brian Masumoto, Esq.; and

      (v) Counsel to the Creditors' Committee, if any.

on or before 12:00 noon (prevailing New York time) on September 3, 2003.

Petroleum Geo-Services ASA, headquartered in Lysaker, Norway is a
technology-based service provider that assists oil and gas companies
throughout the world.  The Company filed for chapter 11 protection on July
29, 2003 (Bankr. S.D.N.Y. Case No. 03-14786).  Matthew Allen Feldman, Esq.,
at Willkie Farr & Gallagher represents the Debtor in its restructuring
efforts.  As of May 31, 2003, the Debtor listed total assets of
$3,686,621,000 and total debts of $2,444,341,000.


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


KREDYT BANK: Plans to Increase Capital by More than PLN665 Mln
-------------------------------------------------------------
The Board of Directors of Kredyt Bank, the Polish subsidiary of KBC Bank NV,
resolved on Friday to propose a capital increase in the amount of 665 564
256 PLN (+ 151 million EUR*) at its general meeting of shareholders on
September 2, 2003.  KBC Bank NV will subscribe to this capital increase for
at least the amount accorded by its pre-emption rights.  KBC Bank has
declared, moreover, that it is prepared to underwrite the shares that are
not taken up.

This capital increase is part of the restructuring plan that was established
as a result of losses in the past financial year, with the aim of improving
Kredyt Bank's capital ratios and protecting its strong position.


NETIA SA: Change of Company Name Approved
-----------------------------------------
Netia SA (formerly Netia Holdings SA) (NET), Poland's largest alternative
provider of fixed-line telecommunications services, announced that it
received a decision from the Warsaw District Court, dated August 4, 2003,
registering the change of Netia's name to "Netia SA."

A resolution with regard to change of Netia's name was adopted at Netia's
General Shareholders' Meeting on June 12, 2003.

                     *****

Netia Holdings announced unaudited consolidated financial results for the
first quarter 2003 with a net loss of PLN80.3 million (US$19.8 million), a
year-on-year decrease of 67% achieved due to improved operating results and
lower financial expense following the financial restructuring.

Its 2003 first half and second quarter results will be released after the
close of the Warsaw Stock Exchange on Tuesday, August 12, 2003.

CONTACT:          Netia
                  Anna Kuchnio (IR)
                  +48-22-330-2061
                  or
                  Jolanta Ciesielska (Media)
                  +48-22-330-2407
                  or
                  Taylor Rafferty, London
                  Mark Walter
                  +44(0)20-7936-0400
                  or
                  Taylor Rafferty, New York
                  Abbas Qasim
                  212-889-4350


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


METROMEDIA INTERNATIONAL: Sells Baltcom Cable to SIA Alina
----------------------------------------------------------
Metromedia International Group, Inc. (OTCBB:MTRM - Common Stock and
OTCBB:MTRMP - Preferred Stock), the owner of interests in various
communications and media businesses in Russia, Eastern Europe and Georgia,
announced on Monday that it had sold all of its interests in the Latvian
cable television company Baltcom TV to the Latvian company SIA Alina for
total consideration of US$14.5 million.

The company held a 50% equity interest in Baltcom TV through its
subsidiaries and had extended a loan to Baltcom with current outstanding
balance of US$13.2 million.  In the transaction, the company assigned the
Baltcom loan to Alina for a cash payment of the loan's full face value of
US$13.2 million and conveyed its equity interest in Baltcom to Alina for
US$1.3 million in cash, half of which was received at closing and the other
half will be released from escrow when Alina completes the registration
under Latvian law of the Baltcom ownership interest it acquired.  Alina
already owned 45% of Baltcom prior to the transaction.

Baltcom is the leading cable TV operator in Riga, Latvia, currently with
approximately 80,000 direct wireless and wire line subscribers and
delivering programming content to approximately 20,000 subscribers of other
Riga cable operators.  Baltcom's 2002 revenues were US$7.2 million, with
cost of sales of US$1.5 million and operating expenses of US$5.2 million,
which included US$1.5 million of depreciation and amortization. Baltcom's
sole long-term debt obligation was to the company.

In making this announcement, Ernie Pyle, Senior Vice President and Chief
Financial Officer of the Company, commented: "The receipt of nearly US$14
million in cash significantly strengthens the company's liquidity position.
These funds, when combined with cash already on hand, should readily support
company operations and service of the company's debt for at least the coming
twelve months.  As stated in our recent SEC filings, we believe that future
dividend flows from our core telephony businesses in Russia and Georgia will
comfortably cover our operating overheads and debt service obligations next
year and beyond."

Mark Hauf, Chairman, President and Chief Executive Officer of MIG, commented
further: "The sale of Baltcom is the latest step in our strategy of
divesting non-core businesses to provide cash to solidify our financial
position and enable further development of our core businesses.  I believe
that this transaction provides sufficient cash resources to end the
immediate liquidity concerns the Company faced during the past year.  We can
now fully turn our attentions to aggressive development of our core
telephony lines of business."

Mr. Hauf further commented: "The price we obtained for Baltcom is very
satisfactory, given the current market climate.  The sale value of the
Baltcom equity plus debt in the transaction is a very substantial multiple
of Baltcom's recent earnings and represents nearly US$200 for each Baltcom
direct cable subscriber.  Achieving this impressive valuation comes, in
part, from our commitment to maintain a measured pace in marketing our
non-core businesses, affording us the time and opportunity to negotiate
terms providing maximum value for our stakeholders."

About Metromedia International Group

Through its wholly owned subsidiaries, the company owns communications and
media businesses in Russia, Eastern Europe and Georgia.  These include
mobile and fixed line telephony businesses, wireless and wired cable
television networks and radio broadcast stations.  The company has focused
its principal attentions on continued development of its core telephony
businesses in Russia and Georgia, while undertaking a program of gradual
divestiture of its non-core cable and radio businesses.  As disclosed in the
company's February 3, 2003 press release, Communications Equity Associates
has been engaged to assist the Company in this marketing effort. CEA contact
information is provided below.  After the sale of Baltcom TV, the company
still owns interests in seven cable television networks, including
operations in Russia, Romania, Belarus, Moldova, Lithuania and Georgia.  The
company also owns interests in seventeen radio businesses operating in
Finland, Hungary, Bulgaria, Estonia, Latvia and the Czech Republic.  The
company's core telephony businesses include Peterstar, the leading
competitive local exchange carrier in St. Petersburg, Russia, and Magticom,
the leading mobile telephony operator in Georgia

CONTACT:  METROMEDIA INTERNATIONAL GROUP, INC.
          # 112 CEA Beratungs- und Beteiligungsgesellschaft mbH
          Homepage: http://www.metromedia-group.com

          Contact:
          Ernie Pyle
          212-527-3800
          Rogier Minderhout
          Phone: +49 89 290725-125
          E-mail: minderhout@cea-europe.com


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


BZ GROUP: Emerges Debt-free After Standstill Period
---------------------------------------------------
The BZ Group plans to resume business as a holding company after ending a
standstill agreement with creditor banks on a multi-billion franc debt.

According to NZZ Online, the group will continue to operate as a financial
investment firm with its 95% stake in the Intershop real estate concern.  It
plans to raise shareholder equity in the next few weeks by a capital
increase of CHF40 million.

The one-year standstill agreement on debt due for repayment saved the group
from sure collapse last year under the weight of a reported CHF3 billion
(US$2.2 billion) debt load.  This was after bear markets forced it to shed
stakes in leading companies, including ABB, Credit Suisse, Lonza and Pirelli
in order to reduce borrowings.

With the expiry of the deal, the group is no longer at the mercy of the
banks, according to Neue Zurcher Zeitung.  As such it would no longer have
to sell assets, and in contrast would have to be at the buying end.   BZ
Group unloaded its almost 30% stake in the Swiss machinery manufacturer,
Rieter, days before the expiry of the standstill agreement last month.


HABSBURG HOLDINGS: Shares Suspended as Report Deadline Lapses
-------------------------------------------------------------
On 25 July 2003, the SWX Swiss Exchange announced that Habsburg Holdings
Ltd. had failed to publish its annual report 2002 and to submit it to the
SWX.  For that reason the SWX threatened Habsburg with a suspension of
trading.

The company failed to publish the annual report and to file it with the SWX
within the extended deadline granted by the SWX.  For reasons of investor
protection and transparency in the capital market, the SWX suspended trading
in the above-mentioned security effective Monday, 4 August 2003 until
further notice.

Habsburg also failed to submit its annual report before the specified date
last year, TCR-Europe previously reported.


SWISS INTERNATIONAL: Govt Rules Out Rescue; Won't Block Takeover
----------------------------------------------------------------
Economics Minister Joseph Deiss said the Swiss Federation, Swiss
International's biggest shareholder, will not provide the CHF500 million
(US$367 million) that the ailing carried needs to survive.

AFX, citing an interview with SonntagZeitung, quoted the minister saying it
is not appropriate for the government to support selected industries.

Recalling that the government helped create Swiss International by backing
the combination of regional carrier Crossair AG with parts of insolvent
Swissair Group, he said: "the current situation is not comparable with
Swissair's grounding."

When asked about a possible takeover by Lufthansa, Europe's third largest
airline, he expressed no opposition.

"What is of primary importance to the government is to find solutions that
guarantee a good service," he said.

Reports circulating in the press last week said Lufthansa may buy a stake in
Swiss International with its own shares to take operational control.  Later,
the German airline may also gain right to purchase a majority interest.

Swiss International is currently downsizing in a bid to survive.


SWISS INTERNATIONAL: SWX Initiates Formal Investigation
-------------------------------------------------------
SWX Swiss Exchange has initiated a formal investigation against Swiss
International Air Lines Ltd. regarding a possible violation of Art. 72 of
the Listing Rules (ad hoc publicity).

The preliminary investigation conducted by the SWX has revealed that SWISS
possibly violated the principle of equal treatment of market participants in
the wake of decisions taken by the board of directors of SWISS on 24
February, 2003 by informing various business partners before the market.
The duration of these investigative proceedings has not been determined.

The SWX will provide information on the outcome of its investigation.
However, no information will be made public with regard to the ongoing
investigation.


SWISS RE: Arranges US$100 million Catastrophe Risk Swap
-------------------------------------------------------
Swiss Re and Mitsui Sumitomo Insurance Company have arranged a US$100
million catastrophe risk swap.  The catastrophe risk swap is structured in
two risk exchanges of US$50 million each: Japan typhoon for North Atlantic
hurricane and Japan typhoon for European windstorm.

Under the terms of the transaction, Swiss Re will exchange a part of its
North Atlantic hurricane and European windstorm risks for Mitsui Sumitomo's
Japanese typhoon exposure.  These represent 'peak risks' for both parties.
By swapping segments of Japanese catastrophe event exposure with North
Atlantic and Europe catastrophe risks, Mitsui Sumitomo and Swiss Re are both
able to improve the diversification of their risk portfolios.

Bruno Porro, Swiss Re's Chief Risk Officer comments; "Swiss Re is
continually monitoring and enhancing its overall risk diversification and
exposure to peak risks.  This transaction, which is the latest to which
Swiss Re has been both a party and structurer, furthers this goal.  It is
positive to see that the skills and expertise of both Swiss Re and Mitsui
Sumitomo, developed in previous transactions, have contributed to the
success of this latest catastrophe swap."

Swiss Re

Swiss Re is a leading reinsurer and the world's largest life and health
reinsurer.  The company is global, operating from 70 offices in 30
countries.  Since its foundation in 1863, Swiss Re has been in the
reinsurance business.  Swiss Re has three business groups: Property &
Casualty, Life & Health and Financial Services. Swiss Re offers a wide range
of traditional reinsurance products and related services, which are
complemented by insurance-based corporate finance solutions and
supplementary services.  Swiss Re is rated "AA" by Standard & Poor's, "Aa1"
by Moody's and "A++" by A.M. Best.

Mitsui Sumitomo

Mitsui Sumitomo Insurance is a leading non-life insurer in Japan, with
overseas network comprising 56 cities in 36 countries and regions outside of
Japan.  In the 2002 financial year, net premium volume amounted to Yen 1,304
billion (approximately US$10.9 billion) and shareholder's equity amounted to
Yen 1,042 billion (approximately US$8.7 billion).  The company has been
expanding its inward reinsurance operation through its reinsurance
subsidiaries in Bermuda and Dublin to enhance its overall risk
diversification.  Mitsui Sumitomo Insurance is rated "AA-" by Standard &
Poor's, "Aa3" by Moody's and "A+" by A.M. Best.

Contact:  SWISS RE
          Investor Relations
          Phone: + 41 43 285 4444
          Corporate Communications Hong Kong
          Phone: +852 2582 3660


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


ABBEY NATIONAL: Announces Cut in Online Personal Loan Rates
-----------------------------------------------------------
Abbey National has slashed its rates for all online personal loans across
all loan tiers, with a best buy typical APR rate of 6.6% for loans above
GBP5,000, offering outstanding value to people wanting to consolidate debts
or purchase 'big ticket' items such as a new car or the holiday of a
lifetime.  At least 50% of all customers will receive the typical rate or
lower.  The lowest available rate on loans between GBP5,000 and GBP20,000 is
6.3%.

The estimated average advance per personal loan customer has grown by 12%
since 1999, with the average customer borrowing GBP8,450 for each individual
loan in 2002.3

The new online rates are effective from July 29, 2003 and people can apply
at http://www.abbeynational.co.uk.

New online rates effective from 29 July 2003

Loan Amount        Typical APR
GBP1,000 - GBP2,950    10%
GBP3,000 - GBP4,950    8.5%
GBP5,000 - GBP20,000   6.6%

Reza Attar-Zadeh, Director of Consumer Credit, said: "Summer can be an
expensive time of year with people splashing out on new clothes, foreign
holidays and home improvements and our best buy loan rates will help them
get what they want at an affordable rate.

"With car showrooms taking delivery of new models for August, many people
will be considering upgrading their car.  People should take advantage of
our great new rates, which compare very favorably with the generally more
expensive finance options available from car showrooms.

"Slashing our rates for online personal loans will also benefit many people
who want to consolidate all their outstanding debts into one affordable
monthly payment."


ABERDEEN ASSET: Terminates Sale Discussions for Property Asset
--------------------------------------------------------------
Aberdeen announces that the discussions with The British Land Company PLC
regarding a possible sale of all or part of Aberdeen Property Investors,
Aberdeen's property investment management division, have been terminated.

Following an exhaustive process in which Aberdeen looked at a number of
options for Aberdeen Property Investors, Aberdeen now intends to retain the
business as part of its wider fund management operations.  With funds under
management of GBP6 billion, Aberdeen Property Investors is one of Europe's
leading property fund managers and has the potential to grow substantially
over the medium term.

Regarding these developments, Martin Gilbert, Aberdeen's chief executive,
commented: "We are disappointed that the discussions with British Land have
terminated but Aberdeen Property Investors is an excellent business and both
we and the Aberdeen Property Investors management team believe that more
value can be provided to Aberdeen shareholders by retaining the business
rather than selling it at a depressed valuation.  We have every confidence
that the management team will continue to provide clients with a high level
of service, thereby providing the platform for further development of the
business."

CONTACT:  GAVIN ANDERSON & COMPANY
          Neil Bennett
          Phone: 020 7554 1400


BRITISH AIRWAYS: More Job-cuts Seen Due to Losses from Strike
-------------------------------------------------------------
Further job cuts could be implemented at troubled British Airways as the
downturn in world demand continues, online news agency The Times said,
citing unnamed sources.

The report indicated that British Airways boss Rod Eddington is ready to
discuss further job losses with union leaders if he is forced into extra
cost cutting.  The airline has already cut 11,000 jobs in two years and
2,000 more will go under plans already announced.

British Airways faces a GBP40 million bill as a result of lost revenue from
the swipe card dispute at Heathrow.  There is also no sign of a return of
business passengers and with stiff competition on short haul routes, the
only way is to make further savings.

Rivals such as Virgin Atlantic and bmi British Midland have reported a
dramatic surge in bookings as passengers switch from British Airways,
fearful that they could end up stuck in the kind of chaos that paralyzed
Heathrow last month.  Thousands of travelers suffered after staff took part
in a wildcat strike over the imposition of electronic clocking-in swipe
cards.

Recent press reports said these passengers will receive flight vouchers
worth GBP80, which can be used to pay in full for a flight or put towards
more expensive tickets.  They are in addition to payments being made by the
airline for hotel, transport and food expenses incurred by disrupted
passengers.

The more than 17,000 customers whose travel was disrupted can obtain the
vouchers by logging in at ba.com/tickets or calling 0845 6008154 and check
their eligibility.

British Airways' director of marketing, Martin George, said: "We recognize
how upsetting and frustrating the strike at Heathrow must have been to
disrupted customers.  We hope that these vouchers will go someway to making
up for the problems that people encountered."


BRITISH AIRWAYS: Back to Negotiating Table with Workers Union
-------------------------------------------------------------
British Airways on Monday resumed discussions regarding the 2003 pay offer
for its engineering staff.  The talks on the issue, which were left hanging
in the middle of July, come less than a week after the July 18 and July 19
wildcat strikes on the company's plan to introduce electronic swipe cards
for check-in staff.

The workers would have staged an industrial action had not British Airways
agreed to remove the cards which could monitor workers coming in and out as
a condition of a new pay deal.

British Airways' 4,000 engineers now fear that the same conditions won for
check-in staff should be secured for the engineers.  They may also stage the
same opposition, according to the report.

British Airways, which pays staff by the job regardless of the time it
takes, wants to adopt a more flexible payment method by September 17.  But
its method of introducing the swipe cards was feared to force changes to
work patterns and reduce flexibility for the largely female and part-time
workforce.

The meeting on Monday was with the same unions that represented check-in
staff, Amicus, the GMB and Transport & General


BRITISH ENERGY: Govt Says Preliminary E.U. Report Not Conclusive
----------------------------------------------------------------
U.K.'s Department of Trade and Industry clarified that the European
Commission's report regarding the government's rescue of British Energy was
not a preliminary judgment of the illegality of the funding, according to
The Scotsman.

The clarification came as it labeled "disingenuous" a weekend report saying
that Brussels has ruled the country's GBP3.3 billion payment of the nuclear
generator's decommissioning costs as unlawful.

The report says the Commission refutes the U.K. government's claims that the
funding was not an ongoing subsidy.  The Commission's report was a list of
concerns about the state aid package to British Energy that were being
discussed, according to the Department of Trade and Industry.

It raised the question of "whether the company can be considered to be able
to compete in the market place on its own merits," and criticized the
government for failing to disclose to the regulator a new deal with British
Nuclear Fuels that could save hundreds of millions of pounds.

A spokesman for the DTI countered: "We have heard nothing from the European
Commission yet.  It is disingenuous to call it a preliminary judgment.  They
[the EC] are raising the question of whether the arrangements between
British and British Nuclear Fuels, for example, are valid.  The moratorium
on repayment of money owed by British Energy to British Nuclear Fuels is
under suspicion for possible illegal state aid.

"With the sums at involved, we took it as a matter of course they would
investigate.  But our understanding is that they are not yet saying it is
unlawful.  Ongoing discussions are taking place."

The Commission's decision on the stand-alone viability of the company is
important in granting subsidies to companies.


CORUS GROUP: 'B/B' Ratings Affirmed; Senior Unsecured Rating Cut
----------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B' long-term and
'B' short-term corporate credit ratings on U.K.-based steel consortium Corus
Group PLC, following the group's issue of a new EUR1.2 billion (US$1.4
billion) revolving syndicated bank facility due 2006.

The new facility was assigned a 'B+' long-term secured bank loan rating.  In
addition, Standard & Poor's lowered its senior unsecured debt rating on
Corus to 'CCC+' from 'B', and removed the senior unsecured debt rating from
CreditWatch, where it was placed on March 12, 2003.  The outlook is
negative.

"Corus' new EUR1.2 billion revolving multi-currency credit facility is rated
one notch above the corporate credit rating on the group because Standard &
Poor's considers that, in a post-default recovery situation, the value of
the security package attached to it will still be significant," said
Standard & Poor's credit analyst Olivier Beroud.  "This is particularly due
to the current strong performance and low leverage of the group's Dutch
subsidiary Corus Nederland B.V., which forms a key component of the security
package."

Although the group's under-performing assets in the U.K. are likely to be
more negatively impaired under a post-default recovery scenario, these U.K.
assets, together with the value of Corus Nederland, are judged sufficient
for lenders to be reasonably confident of full recovery in a default.

The rating on the senior unsecured debt has been notched down twice from the
corporate credit rating because the total amount of prior ranking
liabilities represents just more than 30% of total group assets.  The issue
of structural subordination arises both from a legal standpoint (better
secured debt such as the new bank loan is advantaged compared with unsecured
bond holders) and from a structural standpoint (financial and operational
liabilities at the Corus Nederland level are structurally advantaged
compared with debt issued at the holding company level).

"We remain concerned about the group's ability to simultaneously implement a
further restructuring program and resolve the internal dispute that led the
group to abandon the disposal of its aluminum unit," added Mr. Beroud.
"These concerns are exacerbated by our expectations that European steel
prices are likely to fall, potentially sharply, by the end of 2003."


DRAX COMPANIES: Recovery Prospects for Lenders Coming to Light
--------------------------------------------------------------
A restructuring proposal indicates initial levels of recovery for lenders to
the defaulted U.K.-based power generation companies InPower Ltd. and AES
Drax Holdings Ltd. (the Drax companies), according to a report published
today by Standard & Poor's Ratings Services.

"Final recovery value is still a matter for speculation, but initial cash
offers to buy back some of the restructured debt have only been 47%-55% of
the nominal value," said Standard & Poor's credit analyst Jan Willem
Plantagie.  "Limited cash is on offer, and so the discount offer only
applies to a very small portion of current outstanding senior debt.
Subordinated debt holders are in an even worse position."

The report assesses the prospects of recovery for both senior and
subordinated debt under the restructuring.  It also outlines the main
features of the proposal and the offers that have been made under it.

The commentary article entitled "Restructuring Proposal Indicates Recovery
Prospects for Lenders to Defaulted Drax Cos." was published on Aug. 4, 2003,
and is available to subscribers of RatingsDirect, Standard & Poor's
Web-based credit analysis system, at http://www.ratingsdirect.com.

Alternatively, call one of Standard & Poor's Ratings Desks: London (44)
20-7847-7400; Paris (33) 1-4420-6705; Frankfurt (49) 69-33-999-223; or
Stockholm (46) 8-440-5916. Members of the media may contact the Press Office
Hotline on (44) 20-7826-3605 or via media_europe@standardandpoors.com.


EMI GROUP: May be Sold to Blackstone for US$4 Bln, Report Says
--------------------------------------------------------------
Private-equity firm Blackstone Group LP is reportedly poised to acquire EMI
Group PLC, the media company whose ratings were recently downgraded by
Moody's Investors Service on expectation of "continued softness in the world
recorded music markets."

Bloomberg, citing the Sunday Times, said EMI has held talks with Blackstone
and several other buyout firms as it considers its "strategic options."  It
is thought that Blackstone could buy EMI in a transaction worth about GBP2.5
billion (US$4 billion), including the company's GBP1 billion of borrowings.

EMI shares fell 3.5 pence to 142.5p on Friday, giving the London-based
company a market value of GBP1.12 billion pounds, Bloomberg reported.

Last month, EMI chairman Eric Nicoli announced during the annual general
meeting that the management believes full year results will be in line with
expectations, offsetting any first half shortfall that is due to a slump in
Japanese revenue.

Under Alain Levy, who took over as head of EMI's record music unit one and a
half years ago, the company has cut its workforce and closed unprofitable
labels to make up for a global slump in music sales.  The move paid off as
EMI returned to profit in its fiscal year ended March 31.

CONTACT:  EMI GROUP PLC
          Amanda Conroy, Senior VP, Corporate Communications
          Phone: +44 (0)20 7795 7529
          Claudia Palmer, Head of Investor Relations
          Phone: +44 (0)20 7795 7635


HAMLEYS PLC: Baugur's Revised Increased Offer Unconditional
-----------------------------------------------------------
The board of Soldier announces that, by 3.00 p.m. on August 4, 2003, valid
acceptances had been received in respect of, in aggregate, 15,490,962
Hamleys Shares representing approximately 67.0% of the entire existing
issued ordinary share capital of Hamleys.

The acceptance condition and all other conditions of the Revised Increased
Offer have now been satisfied or waived and accordingly the board of Soldier
is pleased to announce that the Revised Increased Offer is declared
unconditional in all respects.  The Revised Increased Offer will remain open
for acceptance until further notice.  Hamleys Shareholders who have not yet
accepted the Revised Increased Offer and who wish to do so are strongly
encouraged to take the necessary action set out in the Revised Increased
Offer document.

The Loan Note Alternative will remain open only until August 18, 2003.
Hamleys Shareholders who have elected pursuant to the Loan Note Alternative
for Loan Notes may not receive settlement of their consideration within 14
days of the Revised Increased Offer becoming or being declared unconditional
in all respects as a result of the need to calculate the extent of any
scaling back at the time the Loan Note Alternative closes.  Settlement will
be effected as soon as practicable within such further period as the Panel
may allow.  In all other cases, the consideration to which Hamleys
Shareholders are entitled under the Revised Increased Offer will be
dispatched on or before 18 August 2003 in respect of acceptances complete in
all respects received no later than the close of business on August 4, 2003
and within 14 days of the date of receipt in respect of further acceptances
which are complete in all respects received after that time.

Solider intends to procure that Hamleys applies to the U.K. Listing
Authority for the removal of the Hamleys Shares from the Official List of
the U.K. Listing Authority and to the London Stock Exchange for the
cancellation of trading in Hamleys Shares.  The Listing Rules require that
notice on such proposed cancellations of not less than 20 business days be
given to Hamleys Shareholders.  This announcement constitutes such notice
and the notice period has now commenced.  It is anticipated that such
cancellation will take effect on Tuesday, September 2, 2003.

Valid acceptances set out above include:

(a) valid acceptances received from the Independent Directors pursuant to
the irrevocable undertakings, which they have given in respect of 62,250
Hamleys Shares, representing approximately 0.3% of the entire existing
issued ordinary share capital of Hamleys;

(b) valid acceptances received from Hamleys Shareholders pursuant to
irrevocable undertakings given in respect of 2,845,175 Hamleys Shares,
representing approximately 12.3% of the entire existing issued ordinary
share capital of Hamleys; and

(c) a valid acceptance from A Holding SA, a subsidiary of Baugur Group hf
and a party acting in concert with Soldier, in respect of 2,556,264 Hamleys
Shares, representing approximately 11.1% of the entire existing issued
ordinary share capital of Hamleys.

Since the commencement of the Offer Period, A Holding SA has purchased
2,556,264 Hamleys Shares and conditionally agreed to purchase 3,513,548
Hamleys Shares, representing in aggregate approximately 26.3% of the entire
existing issued ordinary share capital of Hamleys, at a price of 254 pence
per Hamleys Share.  The conditions to the agreement to purchase 3,513,548
Hamleys
Shares have now been satisfied and A Holding S.A. expects to complete the
purchase of these Hamleys Shares shortly. A Holding S.A. has assented all of
the 2,556,264 Hamleys Shares, which it has purchased to the Revised
Increased Offer, as described above.

In addition, by virtue of the Hamleys Management Share Exchange Agreement
(which was amended by a supplemental agreement dated 27 June 2003), Soldier
has conditionally contracted to acquire, in aggregate, 36,585 Hamleys Shares
from Hamleys Management, representing approximately 0.2% of Hamleys' entire
existing issued ordinary share capital, together with a further 439,741
Hamleys Shares upon exercise of certain options held under the Hamleys plc
Unapproved Executive Share Option Scheme.  This agreement is conditional
upon the Revised Increased Offer becoming or being declared unconditional in
all respects and
Soldier legally and beneficially holding more than 25% of Hamleys' entire
existing issued ordinary share capital.

Accordingly, Soldier and its concert parties have acquired or contracted to
acquire, or have received acceptances of the Revised Increased Offer in
respect of, in aggregate, 19,041,095 Hamleys Shares currently in issue,
representing approximately 82.4% of Hamleys' entire existing issued ordinary
share capital.  In addition, Soldier has conditionally contracted to acquire
439,741 Hamleys Shares upon exercise of certain options under the Hamleys
plc Unapproved Executive Share Option Scheme.

Prior to the Offer Period, Soldier held no Hamleys Shares and Hamleys
Management held an interest in 36,585 Hamleys Shares, representing
approximately 0.2% of the entire existing issued ordinary share capital of
Hamleys.  In addition, prior to the Offer Period, the Hamleys Management
held options to subscribe for, in aggregate, a maximum of 515,819 Hamleys
Shares under the Hamleys Share Schemes.

Words and expressions defined in the Original Offer Document dated June 19,
2003 and Revised Increased Offer document dated July 17, 2003 shall apply
for the purposes of this announcement.

CONTACT:  GAVIN ANDERSON & COMPANY
          Phone: 020 7554 1400
          Neil Bennett
          Halldor Larusson

          SOLDIER
          Phone: 020 7479 7313
          John Watkinson

          KPMG CORPORATE FINANCE
          Phone: 020 7311 1000
          David McCorquodale
          Michael McDonagh


HOLMES PLACE: Health Club Offer Declared Unconditional
------------------------------------------------------
The Offer made by N M Rothschild & Sons Limited on behalf of Health Club
Group plc for the issued, and to be issued, share capital of Holmes Place
PLC (the terms and conditions of which are set out in the Offer Document
posted on May 22, 2003) was declared unconditional in all respects on 9 July
2003.

On July 9, 2003, the company also announced its intention to cancel the
listing of its shares on the Official List of the U.K. Listing Authority and
to cancel the trading of such shares on the London Stock Exchange's market
for listed securities.

It is expected that the cancellation of the listing of the Holmes Place
Shares on the Official List and the trading of such shares on the London
Stock Exchange will take effect on or around August 7, 2003.

                     *****

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


JASMIN PLC: Managing, Finance Directors Resign
----------------------------------------------
Jasmin PLC announces that the Board has accepted the resignations of Chris
Eggleshaw, Managing Director, and Philip Molyneux, Finance Director, which
took effect from August 1, 2003.

Roger Plant, Chairman, said: "As mentioned in our recent financial results,
Jasmin faces challenging times.  It is with regret that we have accepted the
resignations of Chris and Philip.  The posts will be filled in due course."

In addition, Jasmin has won a contract to supply military detection
equipment to a client in the Far East worth GBP500,000.

                     *****

Nottingham-based Jasmin Plc previously denied 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.

CONTACT:  JASMIN PLC
          Roger Plant
          Phone: 0115 916 5165

          BELL POTTINGER FINANCIAL
          David Rydell / Robin Tozer
          Phone: 0207 861 3232


J SAINSBURY: Explains Founding Family's Alleged Stake Sale Plan
---------------------------------------------------------------
Sainsbury had to dispel rumors that its founding family has plans of
shedding part of its holdings after a lawyer for the family hinted on the
possible move in a letter.

This is London, citing unnamed sources, said Judith Portrait, who controls
the almost 35% stake held by the Sainsbury family in blind trusts, warned
the board she might trim down the stake 'at some point.'

She is reported to have both endorsed the strategy of chief executive Sir
Peter Davis and suggested it would make sense for Lord (David) Sainsbury of
Turville, who owns a 13% stake, not to have all his wealth in one asset.

Mr. Davis downplayed the statement saying it was just an expression of full
support to the board and management.

The rumors emerged as reports that the family is divided on their decision
over their holdings.  Some wants to sell their parts - a move that could
further pressure the shares' stock market value.

The news is another bad blow for Sainsbury, which recently lost its place as
Britain's second-biggest supermarket to Wal-Mart's Asda.


QUEENS MOAT: Reviews Strategies to Address Heavy Debt Load
----------------------------------------------------------
Queens Moat Houses has hired Cazenove and Deloitte & Touche to review
strategic options for the heavily indebted hotel operator, The Times
reported.

The strategic review is expected to focus on refinancing the company's debt
burden, which amounted to GBP639 million, as of December, according to the
report.  An outright sale may also be considered; although analysts thought
it likely that Queens' German division and possibly its Dutch arm will be
the ones to go rather than the company.

Queens Moat narrowly escaped bankruptcy in 1993 under a GBP1.4 billion-debt
burden.  Worries regarding its financial health resurfaced after a most
difficult trading since then.

In May Chief Executive Andrew Coppel assured the public the company will cut
cost to contain the impact of the difficult market.

The hotel operator also moved to ease the burdens on its covenants by
putting on the block two of its hotels, the Sloan Square and Kensington Moat
Houses.  It placed a price tag of GBP25 million on the properties.   But
lack of headroom on some covenants forced it to bring forward the current
review of its financing options.

Meanwhile, Mr. Coppel, who delivered the company from the brink of collapse
10 years ago, is reportedly preparing to relinquish his position for good to
Stuart Metcalfe, QMH's corporate development director.


ROYAL MAIL: Cost-cutting Plan Meets Unexpected Opposition
---------------------------------------------------------
Royal Mail expressed surprise at the current opposition of workers to the
planned job cuts under its cost saving plan.

The Communication Workers Union on Monday confirmed in a statement they plan
to ballot workers on a possible strike next week over a wider proposal to
reduce Royal Mail's 200,000-strong workforce with 30,000 voluntary
redundancies.

"We will not do this," said Dave Ward, the union's postal deputy general
secretary. "It would be signing the death warrant for the entire postal
service."

According to the Financial Times, Royal Mail said the statement was an
"earthshattering" u-turn, given that one third of the cuts had already been
implemented without opposition.

"I was gobsmacked to see their opposition to job cuts since we have
negotiated not one but two versions of the redundancy package, which were
agreed by the union executive," the report quoted one senior executive
saying.

The union previously rejected a 14.5% pay deal tied to shift changes and
productivity targets.

Some 17,000 jobs are also in danger under Royal Mail's plan to end the
second daily delivery shift in an effort to cut daily losses of GBP750,000.


SIMON GROUP: Completes Disposal of Seawheel Holdings Limited
------------------------------------------------------------
Following the announcements on July 11, 2003 and July 31, 2003, the Board of
Simon is pleased to announce that the disposal of Seawheel Holdings Limited
to Silbury 274 Limited was completed Monday.

                     *****

Simon Group, which reported continuing loss (pre exceptional items) of
GBP7.6 million for 2002, has conditionally agreed to sell Seawheel Holdings
to Silbury 274 Limited for a cash consideration of GBP1.

The company said in May it was reviewing the progress of the business
performance of Seawheel, which it said remained slow, and is unlikely to
return to profit for the year.

CONTACT:  Simon Group plc
          Phone: 01737 372 660
          Richard Catt, Legal Director

          Gavin Anderson & Company
          Elizabeth Morley/Ken Cronin
          Phone: 020 7554 1400


SUITE FACTORY: Management Plans Buyout, Says Administrator
----------------------------------------------------------
Suite Factory Outlets, the sofa, suites and soft furnishing company based in
Yorkshire, called in administrators after running into trading difficulties.

Yorkshire Today reported that David Wilson and Julian Pitts, partners in
Leeds-based insolvency specialist, Wilson Pitts, were appointed
administrators for Suite Factory amid fears the business could go into
liquidation unless a buyer can be found.

The administrators said the management of the firm has expressed an interest
in buying the business, known as Strombar Systems until 1995.

Mr. Wilson was quoted saying: "The furniture industry as a whole has seen
sales fall over the past year.  This, coupled with the firm's altered
trading approach, has pushed Suite Factory Outlets into administration."

"There's a consensus of opinion trade will pick up during August to the end
of January, and as the firm has a good reputation, Wilson Pitts believes the
best outcome would be to see the firm sold as a going concern," he added.

Suite Factory purchases end of range lines, and sells the goods from outlets
across the region.  It reverted to a more standard trading practice of
displaying suites and taking orders at its 7 stores, as other retailers
tightened their stock levels.

According to the administrators gave assurance that customers' deposits with
the firm have been kept separately from the business' finances, and if Suite
Factory Outlets cannot fulfill the order, the deposits are secure and will
be returned.

Suite Factory has stores in Armley, Bradford, Hull, Mexborough, Oulton,
Rotherham and Wakefield.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-published by
Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc.,
Washington, DC USA.  Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee
Gonzales, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or publication
in any form (including e-mail forwarding, electronic re-mailing and
photocopying) is strictly prohibited without prior written permission of the
publishers.

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

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


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