/raid1/www/Hosts/bankrupt/TCREUR_Public/031211.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

          Thursday, December 11, 2003, Vol. 4, No. 245


                            Headlines

G E R M A N Y

DAIMLERCHRYSLER AG: Banker Agrees Chrysler was Undervalued
WESTLB AG: May Report Higher Losses Due to Further Provisioning


H U N G A R Y

DAM STEEL: Unnamed Investor Submits HUF1 Billion Bid for Assets


I T A L Y

PARMALAT SPA: Decides to Liquidate Entire Epicurum Fund
PARMALAT SPA: Hires Enrico Bondi to Draw up Restructuring Plan
PARMALAT SPA: S&P Cites 'Severe Liquidity Concerns' in Downgrade

* Fitch: Italian Banks' Investment in Cirio, Parmalat Safe


L U X E M B O U R G

ARCELOR SA: Biggest Beneficiary of U.S. Tariff Abrogation


N E T H E R L A N D S

AURELIA ENERGY: Outlook Negative on Credit Protection Concerns
HAGEMEYER N.V.: Strikes Major Restructuring Deal with Creditors


N O R W A Y

AKER KVAERNER: Realigns Houston-based Subsea Engineering Unit


S W E D E N

SKANDIA INSURANCE: November Sales Jump 24% to SEK7.4 Billion
SKANDIA INSURANCE: Rising Sales Trend Holds up in November


S W I T Z E R L A N D

ABB LTD.: Sells Reinsurance Business for US$425 Million
ABB LTD.: Puts Final Touches on Capital Increase
ERB GROUP: Authorities Start Initial Probe on Collapse
ERB GROUP: CEO Admits Some Creditors will Lose More than Others
ERB GROUP: Founder's Son Denies Pocketing 'Missing' Funds


U N I T E D   K I N G D O M

BRITISH AIRWAYS: Outlines Pension Scenario in case of Insolvency
CANARY WHARF: Reichmann Backpedals; Alternative Bid Now Doubtful
DRAX HOLDINGS: International Power Won't Raise Offer
EGG PLC: Defers Announcement Regarding Rescue of French Business
HOLLINGER INC.: U.S. Regulators Search for Evidences in U.K.

INMARSAT VENTURES: Court to Hear Scheme of Arrangement Dec. 16
INVENSYS PLC: Shareholders Approve Disposal of Metering Unit
LEEDS UNITED: Al-Khalifa One of Two Possible Buyers
NMT: Stops Production of Costly Syringe Technology
OUR PRICE: Joint Administrators Sell Business, Assets
ROYAL MAIL: Staff Promise Normal Delivery Services for Christmas
VERNON STAINLESS: ASD Plc Buys GBP35 Mln Biz for Undisclosed Sum


                            *********


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


DAIMLERCHRYSLER AG: Witness Agrees Chrysler was Undervalued
-----------------------------------------------------------
Wall Street banker Conrad Meyer of Gleacher Partners said
Chrysler shareholders were shortchanged during the merger of the
company with German rival, Daimler.

Testifying in the US$1 billion- lawsuit lodged by billionaire
investor Kirk Kerkorian against Daimler, Mr. Meyer said Chrysler
should have been valued at US$43.6 billion rather than the
US$37.2 billion agreed under the terms of the 1998 deal.

The Telegraph says Mr. Kerkorian is asking compensation, alleging
he was tricked into believing the transaction was a merger when
it was actually a takeover.  He lost investments when
DaimlerChrysler did not return the benefits promised by the
combination.  DaimlerChrysler shares have lost two-thirds of
their value since the merger.  Mr. Kerkorian says he is fighting
not for the money but for morality.


WESTLB AG: May Report Higher Losses Due to Further Provisioning
---------------------------------------------------------------
Financial regulator BaFin has reportedly ordered state-owned
bank, WestLB, to increase its risk provision for 2003 by EUR499
million (US$606 million), according to the Financial Times.  This
after auditor KPMG submitted its report on the German bank's
credit risks, recommending EUR416 million in extra provisioning
for the bank's U.S.-based aircraft leasing unit Boullion
Aviation, and a further EUR83 million to cover "a mixed bag" of
credit risks.

The extra provision suggested triggered fears that WestLB's
losses may exceed its record EUR1.7 billion loss in 2002.  If
this happens, WestLB may be forced to launch a further round of
fund raising, bankers said.   Last year WestLB raised EUR1.25
billion in fresh capital after it wrote off EUR430 million in
relation to a securitization deal for BoxClever, a U.K.
television rental company.

Bankers say KPMG's report also highlighted failings in the bank's
credit approval procedures and pointed to further breaches of
banking regulations by senior WestLB executives, according to the
report.

"It is possible that the report may be handed over to state
prosecutors for further investigation," said one banker who spoke
to the Financial Times on condition of anonymity.


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


DAM STEEL: Unnamed Investor Submits HUF1 Billion Bid for Assets
---------------------------------------------------------------
DAM Steel Rt, the Hungarian steel manufacturer that went into
liquidation after failing to find a new investor, has reportedly
received a HUF1 billion bid for its assets.  Budapest Business
Journal said a Hungarian investor submitted the bid that complies
with the amount in the tender invitation for 100% of Borsodi
Stainless Steel Kft.  Borsodi operates the DAM assets.

Liquidation agency Matraholding Rt opened the single bid
submitted Monday and will evaluate it within 15 days, the report
added.  Dam Steel assets were offered for HUF5 billion, with a
requirement that the bidder also purchase 100% of Bordosi.

Cogne Acciai Speciali acquired DAM's assets in April 2001 for
HUF4.35 billion, but failed to turn a profit forcing it to call
in liquidators and give up investment.  In two years under
Italian ownership, DAM posted losses of HUF6 billion and amassed
some HUF1 billion in debts.  In January, Cogne announced that it
did not have sufficient capital to operate the factory located in
Miskolc, northeast Hungary and decided to shut it down.  It cited
the over-billing of energy supplier Emasz Rt as one of its main
reasons for the closure, which was denied by Matraholding CEO
Janos Kovacs, saying the dispute had already been ironed out
earlier.

The company's filing for bankruptcy affected 1,500 workers in
Diosgyor and 3,000 more at DAM's suppliers.


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


PARMALAT SPA: Decides to Liquidate Entire Epicurum Fund
-------------------------------------------------------
Parmalat Finanziaria states that the Epicurum Fund did not
liquidate Parmalat's investment in Epicurum on the December 4,
2003 deadline.  The fund has explained that this non-fulfillment
was as a result of difficulties arising from the liquidation
process relating to Parmalat's stake in the fund owing to
contemporary requests for liquidation received from the majority
of the fund's investors.

This has led Epicurum to decide to proceed with the total
liquidation of all the fund's activities.  The complexity of the
steps necessary to achieve this makes it impossible to respect
the deadline previously agreed with Parmalat, and Epicurum has
asked Parmalat to accept a delay in final payment.

Parmalat has noted the above and has reserved any decision in
relation to this matter.


PARMALAT SPA: Hires Enrico Bondi to Draw up Restructuring Plan
--------------------------------------------------------------
Based on the information communicated by the Chairman, Cav. Lav.
Calisto Tanzi, the Board of Directors' meeting acknowledged:

(a) The difficulties in liquidating Parmalat's investment in the
Epicurum Fund, which should have taken place on December 4, 2003,
and the resulting delay in payment requested by the Epicurum Fund
(which has in the meantime placed itself in liquidation),
according to a repayment schedule that has yet to be defined;

(b) The decision to delay repayment of EUR150 million in bonds
maturing on December 8, 2003 until the last possible deadline of
December 15, 2003, in accordance with the regulations for bonds
issued by Parmalat Finance Corporation.

In view of the situation described by the Chairman, and with the
aim of giving the market and financial institutions a sign of the
Group's willingness to find a transparent solution to what has
recently become an increasingly difficult situation, the Board
has engaged Mr. Enrico Bondi as a technical consultant, to draw
up an eventual plan for the Group's industrial and financial
restructuring.

The Chairman also announced that, as of December 8, 2003, Mr.
Luciano Del Soldato has resigned his seat on the Board of
Directors and his position as CFO.

Cav. Lav. Calisto Tanzi reiterated his family's commitment,
during this difficult time, to the Parmalat Group's shareholders,
bondholders, staff, customers and suppliers to preserve the
Company's value in the interests of all its stakeholders.


PARMALAT SPA: S&P Cites 'Severe Liquidity Concerns' in Downgrade
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
ratings on Italy-based leading global fluid-milk processor
Parmalat Finanziaria S.p.A., and its main operating subsidiary
Parmalat S.p.A., to 'B+/B' from 'BBB-/A-3', following severe
concerns about the group's liquidity.  The ratings remain on
CreditWatch with developing implications.

"The downgrade and continuing CreditWatch listing reflect
significant concerns as to Parmalat's willingness and effective
capacity to honor its financial commitments, and more broadly to
follow financial policies and behavior consistent with the
previous ratings," said Standard & Poor's credit analyst Hugues
de la Presle.

Up until last week, Parmalat disclosed authoritative information
in writing to Standard & Poor's, in addition to public
communications, demonstrating an adequate liquidity position.
Recent events -- including failure so far to pay on the due date
the principal on a bond, as well as contradictory communication
on the group's ability to monetize its US$590 million investment
in the Epicurum Fund -- seriously bring into question the size
and availability of the group's reported liquidity of EUR4.2
billion at September 30, 2003.

The ratings on Parmalat were placed on CreditWatch on November
11, 2003, due to concerns about the quality of the group's
accounts and how the group invests its liquidity.  At the end of
September 2003, the group reported gross debt of EUR6 billion.

Although the short-term liquidity of the company is now the key
driver of the ratings, Parmalat's business lends itself to higher
ratings if concerns on liquidity and financial management were
allayed.

If Parmalat were not to honor the EUR150 million bond, however,
the ratings would be lowered to 'D'.  The ongoing CreditWatch
placement also reflects Standard & Poor's ongoing concerns about
the group's accounting quality and financial disclosure.


* Fitch: Italian Banks' Investment in Cirio, Parmalat Safe
----------------------------------------------------------
Fitch Ratings, the international rating agency, said that it
considers the exposure of certain regional and large Italian
banks to Parmalat group as manageable.  Some of the banks'
exposures may be large in relation to their income and capital
but, to date, only Banca Monte dei Paschi has publicly revealed
its exposure of c.EUR125 million to the Parmalat group.  However,
the agency does not believe that the ratings of any of the banks
involved are at risk at this time.

Fitch also notes the widening of judicial investigations into the
activities of several Italian banks involved either in issuing
and placing of bonds of the Cirio group and/or as its creditors.
Cirio defaulted in November 2002.  The agency concludes that the
banks involved could suffer financial or reputational damage.
However, any such damage should be manageable.

At end-September 2002, Cirio had issued just over EUR1 billion of
bonds.  Fitch notes that the reputation of several Italian banks
has already suffered as a consequence of their involvement in
2001 in distributing some Cirio bonds to their retail customers.
However, it considers that any future adverse impact on these
banks should be manageable.  In addition, the agency notes that
during 2003 procedures for selling investment products to retail
investors have been tightened up considerably, improving their
transparency.  Fitch thus considers that -- while not yet
quantifiable -- any financial loss that might arise in the future
if the banks were to reimburse their retail customers for losses
incurred on defaulted Cirio bonds is likely to be manageable.

The agency will continue to monitor developments closely but at
present is not considering taking rating action for any of the
banks involved.


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


ARCELOR SA: Biggest Beneficiary of U.S. Tariff Abrogation
---------------------------------------------------------
The U.S. government on Thursday lifted tariffs it imposed on
steel imports, relieving Europe's largest steelmaker, Arcelor,
which was strongly hit by the levy.

Luxembourg-based Arcelor said Friday it will try to recapture
lost steel sales to the U.S. after imports fell 60% to 400,000
tons when the tariff was introduced in March 2001.  European
steel exports to the U.S. were reduced by 15%, E.U. Trade
Commissioner Pascal Lamy estimated.

But Dow Jones says even if the tariffs of up to 30% were dropped,
it will take at least a year for the company to recover its
market share, especially that the euro has gained renewed
strength against the dollar.  Analysts say, however, that the
major factor in Arcelor's recovery is not the valuation of the
dollar but a strong demand in China and continued output
discipline by European and Japanese producers.


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


AURELIA ENERGY: Outlook Negative on Credit Protection Concerns
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Netherlands-based oil services company Aurelia Energy N.V.
(which, together with its subsidiaries, is collectively referred
to as Bluewater) to negative from stable.  At the same time,
Standard & Poor's affirmed its 'BB-' corporate credit rating on
Aurelia Energy.

"The outlook revision reflects increased concerns over
Bluewater's failure to improve key credit protection measures in
the third quarter of 2003, uncertainty over the timing of
operating earnings recovery, as well as concerns over significant
recontracting risk in 2004, when guaranteed employment periods on
three key vessels expire," said Standard & Poor's credit analyst
Emmanuel Dubois-Pelerin Standard & Poor's expects these contracts
to be extended.  In addition, at least two of the company's
floating production, storage, and offloading vessels will
continue on field beyond the expiration of their minimum
guaranteed periods, owing to proven remaining oil reserves and
field lives continuing beyond 2015.

"It is likely that the ratings on Bluewater would be lowered if
credit protection measures do not improve by the end of the first
quarter 2004 to levels consistent with the current rating, or if
the Glas Dowr vessel's problems are not quickly solved," added
Mr. Dubois-Pelerin.  The rating could, however, remain in the
'BB' category if these issues are resolved, and if cash flow
generation improves sufficiently.


HAGEMEYER N.V.: Strikes Major Restructuring Deal with Creditors
---------------------------------------------------------------
Dutch electrical and safety equipment supplier Hagemeyer on
Tuesday announced an extensive rescue package agreed with a
syndicate of more than 20 banks led by ABN Amro, according to the
Financial Times.

The plan includes a EUR460 million rights issue priced at EUR1.20
a share, which has been fully underwritten; and an issue of
EUR150 million worth of subordinated convertible bonds.  Both
will be launched in January.

The terms of the convertible bond have been underwritten at a
conversion price of EUR1.50 per share and a coupon of 8%.  In
addition, Hagemeyer's 25.7 million cumulative preference shares
will be converted to ordinary shares.  Hagemeyer said it was also
able to reach an agreement with lenders on a EUR905 million new
financing facilities.

The rescue plan will also entail 1,000 additional job-cuts in
2004, mainly in the U.S. and the U.K.  This is on top of the
1,300 job-cuts this year.  The company employs 22,000 people.

Rob ter Haar will resign as chief executive after the completion
of the financial restructuring.  His decision was partly due to
the troubles at the company's U.K. business, which made a
first-half operating loss and net loss of EUR126.3 million.
Hagemeyer expects profits before tax, depreciation and
amortization to be EUR40 million to EUR45 million in 2003.  The
company has debt of EUR973 million at the end of September.


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


AKER KVAERNER: Realigns Houston-based Subsea Engineering Unit
-------------------------------------------------------------
Kvaerner Oilfield Products, the subsea specialist within the Aker
Kvaerner Group, plans to strengthen its engineering services,
project management and supply chain capabilities.
The company's business focus will result in the closure of its
225,000 square-foot manufacturing facility at 1255 North Post Oak
in the first quarter, 2004.  In addition to relocating its
Houston project execution staff, Kvaerner Oilfield Products'
local workforce will be reduced by approximately 100 during the
next three months.  These reductions will come from manufacturing
and professional support services.

Kvaerner Oilfield Products will relocate its Houston workforce to
professional office space at a west Houston location to be
determined.

Kvaerner Oilfield Products will share its new offices with other
Aker Kvaerner business units by the end of 2004.  Other Aker
Kvaerner businesses are currently located at 7909 Parkwood Circle
Drive in Houston, but the units are considering moving to new
offices when the existing lease terminates in 2004.  By sharing
facilities, Kvaerner Oilfield Products will be able to access the
resources of other Aker Kvaerner business units for the benefit
of Kvaerner Oilfield Products clients.

"There is excess capacity in the manufacturing segment of the
subsea industry globally," states Raymond Carlsen, President of
Kvaerner Oilfield Products.  "This market situation requires us
to realign our capabilities with an approach which emphasize our
integrated project execution model.  Our project execution
capability is where we intend to focus our business."

Mr. Carlsen adds the company's realignment will provide a more
flexible and responsive approach, including a full range of
services from EPC to individual product projects for its global
and local, Gulf of Mexico clients.  Kvaerner Oilfield Products
also will expand the use of its new Industrial complex in Mobile,
Alabama through deployment of its subsea wellhead, trees,
umbilical, risers, and control systems to the Gulf of Mexico.

Houston will remain the global center of excellence for
engineering wellheads and trees, Mr. Carlsen explains.
Manufacturing projects will be executed by Kvaerner Oilfield
Products' global manufacturing network with facilities in Norway,
Aberdeen, Brazil and Indonesia. Some technical specialists will
be relocated to Mobile, Alabama.

In addition to providing individuals time to transition to new
jobs, affected workers will receive career outplacement services,
severance benefits, as well as the opportunity to participate in
Kvaerner Oilfield Products' Career Connections service.  Career
Connections seeks to place its affected workers in similar jobs
with other Houston companies.

"We're confident Kvaerner Oilfield Products' strengthened
business model will make us a stronger and more robust
organization in the global subsea market," Mr. Carlsen added.

Aker Kvaerner ASA is through its subsidiaries and affiliates a
leading global provider of engineering and construction services,
technology products and integrated solutions.  The business
within Aker Kvaerner spans a number of industries, including Oil
& Gas production, Refining & Chemicals, Pharmaceuticals &
Biotechnology, Mining & Metals, Power, Pulping and Shipbuilding.
Aker Kvaerner has aggregated annual revenues of approximately
US$6 billion and employs around 29,000 employees in more than 30
countries.

Kvaerner Oilfield Products is a global company with 2,300
employees, and is part of the Subsea Business Area within Aker
Kvaerner group.  Kvaerner Oilfield Products is a leading provider
of Subsea systems for oil and gas production supporting all
aspects of Subsea field development.  Kvaerner Oilfield Products
is a fully integrated company that provides a complete range of
surface and Subsea solutions for the oil and gas industry from
concept screening and design through manufacturing, fabrication
and commissioning.  Worldwide activities led by 6 Business
Streams and supported by 5 regions.

CONTACT:  KVAERNER OILFIELD PRODUCTS
          Rick Hill, Senior Vice President, Sales & Marketing,
          Phone: +1 713 685 5700

          AKER KVAERNER ASA
          Investor Relations:
          Tore Langballe, Vice President Investor Relations
          Phone: +47 67 51 31 06


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


SKANDIA INSURANCE: November Sales Jump 24% to SEK7.4 Billion
------------------------------------------------------------
In view of the flood of information during the preceding week and
speculation in connection with this on the business trend,
Skandia is releasing information on sales for the month of
November.  Skandia does not intend to continue reporting monthly
sales figures in the future.

Sales in November

Sales increased to SEK7.4 billion (SEK6.0 billion), which is the
highest level of monthly sales during the year.  This corresponds
to an increase of 24% in Swedish kronor and 30% in local
currency.  Sales in October 2003 were SEK6.9 billion, while the
corresponding figure for September was SEK6.9 billion.  Sales
were favorable in the U.K.  Sales in Sweden were slightly lower
compared with a year ago, but have successively increased month
by month since August of this year.

Unit linked assurance

Sales of unit-linked assurance in local currency rose 26% to
SEK5.2 billion (SEK4.4 billion).  New sales of unit-linked
assurance rose 7%.

Sales through November

Sales amounted to SEK70.3 billion (69.0), rising 9% in local
currency. Of total sales, unit linked assurance accounted for
SEK50.1 billion (SEK49.5 billion), mutual fund savings products
for SEK16.3 billion (SEK15.5 billion), and direct sales of funds
for SEK2.5 billion (SEK2.2 billion).

Sales in the U.K. amounted to SEK34.0 billion (SEK36.7 billion).
In Sweden sales amounted to SEK11.1 billion (SEK11.4 billion).
Sales in other markets increased to SEK25.2 billion (SEK20.9
billion).

Definitions of sales

Sales

Sales pertain to paid-in premiums and deposits in funds from
Skandia's customers.

New sales

New sales pertain to single and regular premiums from unit-linked
contracts entered into in 2003, recalculated to full-year
figures.  According to industry practice, new sales are defined
as regular premiums recalculated to full-year figures plus 1/10
of single premiums during the period.

To view tables:
http://bankrupt.com/misc/Skandia_November_2003_Sales.htm

                              *****

Skandia senior managers were recently severely criticized for
"unsuitable and unethical" conduct in relation to several
controversial property transactions, suspect bonus payments and
accounting irregularities, in the company.  The issues prompted
Chairman Bengt Braun to immediately resign, even though the
investigation did not make charges against him.

CONTACT:  SKANDIA INSURANCE
          Corporate Communications
          S-103 50 Stockholm, Sweden
          Phone: +46-8-788 10 00
          Fax: +46-8-788 23 80
          Homepage: http://www.skandia.com


SKANDIA INSURANCE: Rising Sales Trend Holds up in November
----------------------------------------------------------
Skandia's November sales in Sweden rose 8%, to SEK901 million
(SEK 832 million).  Compared with October 2003, sales increased
by 19%.  Sales have increased successively every month since
August.

Unit linked assurance

Sales of unit-linked assurance have also increased successively
since August.  Compared with October 2003, sales were unchanged.
However, compared with November 2002, sales decreased by 7%.

New sales of unit-linked assurance increased by 4% compared with
October 2003.  Compared with November 2002, new sales decreased
by 4%.

Sales through November

Sales decreased by 2%, to SEK11,125 million (SEK11,369 million).
Of total sales, unit linked assurance accounted for SEK7,841
million (SEK8,581 million), mutual fund savings products for
SEK328 million (SEK213 million), and direct sales of funds for
SEK2,517 million (SEK2,341 million).

New sales of unit-linked assurance decreased by 10%, which is
unchanged compared with the period January-September 2003.  Sales
in the private market have decreased, while sales to corporate
clients showed an increase.  Corporate sales now account for
nearly 80% of total new sales.

Skandia Liv

Sales for Skandia Liv in November amounted to SEK1,037 million
(SEK1,035 million).   Accumulated sales for the period
January-November decreased by 6%, to SEK11,335 million (SEK12,019
million).

CONTACT:  SKANDIA INSURANCE
          Cecilia Daun Wennborg, Head of Swedish operations
          Phone: +46-8-788 1913
          Corporate Communications
          S-103 50  Stockholm, Sweden
          Phone: +46-8-788 10 00
          Fax: +46-8-788 23 80
          Homepage: http://www.skandia.com


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


ABB LTD.: Sells Reinsurance Business for US$425 Million
-------------------------------------------------------
ABB, the leading power and automation technology group, said it
agreed to sell its reinsurance business (Sirius) to White
Mountains, the Bermuda-based insurance holding company, for a
cash price of SEK3,220 million (about US$425 million at December
1 exchange rate).

"The divestment is part of our strategy to focus on our core
business of power and automation technologies, and to sell
non-core assets when we can create maximum value for the
company," said Peter Voser, ABB's chief financial officer.  "With
its size and geographic scope, we think White Mountains is the
right partner to further develop our very successful reinsurance
business."

ABB said the divestment represents a complete exit from the
reinsurance business.  The transaction is expected to be
completed in the second quarter of 2004, and is subject to
customary regulatory approvals.  ABB's reinsurance business was
part of ABB's former Financial Services division, most of which
has been divested over the past year.

The Sirius business employs around 200 people at the Sweden-based
Sirius International, Sirius America and Scandinavian Re.  At the
end of September 2003, the business reported revenues of   US$572
million and earnings before interest and taxes (EBIT) of US$99
million.

ABB will report a book loss on the sale of approximately US$150
million.  The loss comprises a discount on the net asset value of
the business (about US$45 million) goodwill write-offs
(approximately US$75 million), and transaction costs (about US$25
million).  The total loss will be booked in discontinued
operations, and the operational results of the reinsurance
business will be restated from Non-core activities to
discontinued operations for the fourth quarter and 2003 full-year
results.

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 120,000 people.


ABB LTD.: Puts Final Touches on Capital Increase
------------------------------------------------
ABB issued Tuesday 840,006,602 new shares in preparation for the
completion of the recently announced capital increase.  Trading
in the new shares of ABB Ltd. was to begin December 10, 2003.
The delivery of the new shares is expected to take place on or ab
out December 12, 2003.

The subscription period during which shareholders could exercise
rights to purchase the new shares expired Tuesday at 12 noon
Central European Time.

ABB also has taken the opportunity to arrange for the issuance at
the prevailing market price over the relevant period of
30,298,913 shares out of the authorized share capital to be
contributed to the Combustion Engineering 524(g) Asbestos PI
Trust.  The Trust will be established as part of the Pre-Packaged
Plan of Reorganization filed by ABB's U.S. subsidiary Combustion
Engineering under Chapter 11 of the U.S. Bankruptcy Code.  The
shares will be contributed to the Trust once the Plan of
Reorganization becomes effective.


ERB GROUP: Authorities Start Initial Probe on Collapse
------------------------------------------------------
Erb Group, which fell into creditor protection last week, is
being investigated for evidences of possible criminal behavior on
the part of its executives.

A Zurich district court has started a preliminary investigation
into the collapse of the Swiss conglomerate, district attorney
Christian Weber said Monday, according to Dow Jones.  Mr. Weber
was the one who started an initial probe to find out whether
allegations of Erb officials about misappropriation of company
loans are true.

No one has been so far charged of criminal offense, according to
him.  He also said that he already contacted Erb Chief Executive
Hans Ziegler, asking him to hand over company files.

Mr. Ziegler had said the coffee-to-cars empire transferred CHF1.2
billion (US$934 million or EUR773.7 million) to a German company
in an attempt to steady its financial footing.  Of the amount
CHF400 million remained unaccounted for.

The transfers, together with losses tied to foreign exchange
deals, led to the collapse of the company.

In press conference last week, Mr. Ziegler said creditors were
kept at the dark of how their loans were being used.  The group's
collapse surprise creditors because the company was privately
owned.

Erb Group owes 82 banks, including Switzerland's UBS AG and
Credit Suisse Group.

UBS is owed about 400 million francs and Credit Suisse about 200
million, people familiar with the matter said, according to The
Wall Street Journal.


ERB GROUP: CEO Admits Some Creditors will Lose More than Others
---------------------------------------------------------------
The effects of the collapse of Swiss conglomerate Erb Group to
creditors will vary considerably, Chief Executive Hans Ziegler
told NZZ am Sonntag, according to Intesatrade.

The group's borrowings amount to CHF2 billion, most of which went
to Erb's troubled holding companies.  Some CHF1.2 billion were
transferred to its German real-estate company, CBB Holding AG,
which has been struggling since 1996 due to the slump in property
prices and rents in eastern Germany, Mr. Ziegler said.
Three of the four divisions are now under creditor protection,
and the other one is in the process of applying for bankruptcy
protection.  But some CHF400 million of the transferred funds are
still unaccounted for.

However, creditors of Volcafe or Erb's kitchen equipment and wood
processing units, Piatti and EgoKiefer, could breath a little
sigh of relief.  They are likely to be repaid, Mr. Ziegler said.
Volcafe is among the assets slated for disposal.


ERB GROUP: Founder's Son Denies Pocketing 'Missing' Funds
---------------------------------------------------------
The son of Erb Group's founder, Christian Erb, said he did not
lay hands on the CHF400 million that Chief Executive Hans Ziegler
said were missing.

In an interview with Basler Zeitung the younger Erb said neither
he nor his brother pocketed the money, which was part of the
funding siphoned to the group's troubled German real-estate
company, CBB Holding AG, according to Dow Jones.  Mr. Erb also
said the loans to Swiss banks were less than CHF1 billion and
that the remaining loans was predominantly from German banks.

The Swiss conglomerate filed for creditor protection for three of
its four divisions last week, and has initiated bankruptcy
procedures for one division.  Its top executives are being
investigated for evidences of criminal behavior by the Zurich
district court.


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


BRITISH AIRWAYS: Outlines Pension Scenario in case of Insolvency
----------------------------------------------------------------
British Airways told its staff in black and white they could lose
up to 40% of their pension benefits should the company become
insolvent, according to the Financial Times.

In the latest edition of the company's staff newsletter, the
airline said it is showing employees what will happen if the
company does not support its pension scheme.  The airline had
earlier promised an extra GBP105 million a year to plug the black
hole over the next decade.

The pension deficit stood at more than EUR900 million in March.
Assuming that the Trustees of BA's New Airways Pension Scheme had
moved all its investments into bonds in the event of the
company's bankruptcy, solvency would have been 54% at the
valuation date on March 31 and would be over 60% currently.  The
company also said current workers could receive less than 60%
because under current law, those who have already retired have a
higher claim on assets.

The Financial Times quoted a spokesman for the company's union
saying members are willing to cooperate to save British Airways
from going bust.


CANARY WHARF: Reichmann Backpedals; Alternative Bid Now Doubtful
----------------------------------------------------------------
Former Canary Wharf Chairman Paul Reichmann downplayed earlier
statements he made regarding a possible offer for the company he
founded.  In a statement he said there was "no certainty" he
would make the bid he earlier said would top all offers for the
company.

A spokesman for Mr. Reichmann said at the time: "The Reichmann
Trust will tend its shares in Canary Wharf to the highest bid.
Mr. Reichmann believes when he completes his consortium, his will
be the highest offer."

But the vehicle he founded in October to form a consortium for
the bidding said it might not pursue the plan, despite
encouraging responses from potential investors and lenders.  The
offer recommended by Canary Wharf last week was Morgan Stanley's
GBP1.56 billion, which values the firm at 265p a share.


DRAX HOLDINGS: International Power Won't Raise Offer
----------------------------------------------------
International Power looks set for a rejection of its offer to
take control of Drax, which is currently under creditors hands,
according to Reuters.  The U.K. power generator recently
increased its offer bid for the A2-class debt Drax creditors will
receive under a proposed restructuring plan from 71% to 95%.  It
is urging creditors to accept a GBP130 million offer for about a
third of Drax's outstanding debt.  The offer has been rejected by
Drax.

But even this higher bid looked cheap on Tuesday with the A2 debt
bid at 103% in the market, traders said, according to the report.
The firm's fortunes have recovered as power prices have risen in
recent months.  But International Power is not expected to revise
its bid, which is due for acceptance or rejection until Monday.
Drax creditors are set to vote on the proposal before the end of
the week.

"We're keeping our options open," a spokeswoman told Reuters on
Tuesday.


EGG PLC: Defers Announcement Regarding Rescue of French Business
----------------------------------------------------------------
Our nine months results released on October 22, 2003 included
this statement:

"In France our new management team has developed a strong,
value-creating business plan based on both our experience since
launch and further research with consumers.  However having
regard to our previously announced appetite for investment,
execution of this revised plan will take longer and requires a
greater level of investment than Egg is prepared to undertake on
a stand-alone basis.  We believe it is in the best interests of
Egg's shareholders to form an alliance with a strategic partner
and accordingly, we are in negotiations which may lead to a joint
venture or other transaction.  We anticipate that these
negotiations will be concluded by the end of this year."

Negotiations are ongoing and we are considering a number of
options but we no longer expect to be able to announce the
conclusion of this process prior to the year-end.  We now expect
to make an announcement in the New Year, which will be combined
with a full trading update for the 12 months ended December 31,
2003.

                              *****

Egg plc is Europe's leading digital financial services provider,
providing banking, insurance, investments and mortgages through
its Internet site and other distribution channels.  Egg purchased
French online bank Zebank in January 2002 and launched into
France with its first product La Carte Egg in November 2002.  Egg
plc floated on June 12, 2000 raising proceeds of approximately
GBP150 million and is listed on the London Stock Exchange.
Prudential plc continues to hold 79% of the share capital.

CONTACT:  EGG PLC
          Media
          Egg Press Office
          Phone: 00 44 207 526 2600
          E-mail: prteam@egg.com

          Emma Byrne
          Phone: 00 44 207 526 2600 / 07775 657 241

          Investors:
          Kieran Coleman
          Phone: 00 44 207 526 2648 / 07711 717 358


HOLLINGER INC.: U.S. Regulators Search for Evidences in U.K.
------------------------------------------------------------
U.S. Securities and Exchange Commission has asked the U.K. for
help in its ongoing investigation into the financial transactions
of Hollinger International, owner of The Telegraph group,
according to the Financial Times.

The financial regulators are looking into the US$32.2 million
(EUR26.3 million) unauthorized payments Hollinger's top
executives awarded themselves.  They are also reviewing
inter-company loans and management payments by the Telegraph Grou
p.  The U.K. subsidiary paid more than GBP4 million (US$7
million) in management fees to Hollinger Inc., the holding
company behind Hollinger International, which is also chaired by
Lord Black.  The subsidiary has also guaranteed several
hundred-million-dollars of loans to the parent companies, a
practice Telegraph Group executives insist as normal.

Both the Department of Trade and Industry declined to comment on
the details of the U.S. investigation.  People close to the
investigations said, the inquiry is not a criminal investigation,
according to the report.


INMARSAT VENTURES: Court to Hear Scheme of Arrangement Dec. 16
--------------------------------------------------------------
Notice is hereby given that a Petition was presented on December
1, 2003 to Her Majesty's High court of Justice for the sanction
of the Court to a Scheme of Arrangement between Inmarsat Ventures
Plc and the holders of the Ordinary Shares in the Company and the
confirmation of the reduction of the share capital of the Company
by the cancellation of the Scheme Shares (as defined in the
Scheme) on terms that the credit arising in the books of the
Company as a result of the said cancellation will be applied in
paying up new Ordinary Shares in the capital of the Company of a
like nominal amount to be allotted and issued credited as fully
paid to Grapeclose Limited Scheme.

And notice is further given that the said Petition is directed to
be heard before the Applications Judge at the Royal Courts of
Justice, Strand, London WC2A 2LL on December 16, 2003.

Any creditor or shareholder of the Company wishing to oppose the
making of an Order for confirmation of the above reduction of
share capital should appear at the time of hearing in person or
by Counsel for that purpose.

A copy of the Petition will be furnished to any such person
requiring the same by the undermentioned Solicitors on payment of
the regulated charge for the same.

CONTACT:  Freshfields Bruckhaus Deringer
          65 Fleet Street
          London EC4Y 1HS
          Phone: 020 7963 4000
          (Ref: SRM/VK/BS)
          Solicitors for the above Company


INVENSYS PLC: Shareholders Approve Disposal of Metering Unit
------------------------------------------------------------
Invensys plc confirms that the resolution proposed at the
extraordinary general meeting of the Company held on December 9,
2003 regarding the proposed disposal of its Metering Systems
division was passed, and shareholders are fully supportive of the
plan.

The global leader in production technology, last month signed an
agreement to sell its Metering business to IMS Meters Holdings
Inc., a company sponsored by The Resolute Fund, L.P., a private
equity fund managed by The Jordan Company, L.P., for a gross cash
consideration of US$650 million (GBP388 million).

Invensys plc further confirms that two copies of the resolution
passed as an ordinary resolution at the EGM have been submitted
to the U.K. Listing Authority.

This resolution it said will shortly be available to the public
for inspection at the U.K. Listing Authority's Document Viewing
Facility that is situated at:

          The UK Listing Authority
          25 The North Colonnade
          Canary Wharf
          London E14 5HS
          Phone: 020 76761000
          Contact:
          Victoria Scarth, Senior Vice President, Director -
          Group Marketing and Communications 020 78213539


LEEDS UNITED: Al-Khalifa One of Two Possible Buyers
---------------------------------------------------
Sheikh Abdulrahman Al-Khalifa said he made an offer to rescue
troubled football club Leeds United alongside another prospective
buyer, tribalfoot.com reports citing The Sun.

"I would urge the Leeds directors to make a decision as quickly
as possible so it would allow us to buy new players when the
transfer window opens on January 1," he said.

His consortium includes two prominent Saudi businessmen and an
Asian-based company, according to him.  "The group put an offer
to Leeds United and we are awaiting a reply in the next few
days," he said.

The future of Yorkshire-based Leeds United turned bleak after it
failed to agree on a rescue with lenders, prompting it to shelve
plans for fresh equity injection.


NMT: Stops Production of Costly Syringe Technology
--------------------------------------------------
Syringe manufacturer NMT closed its sole production facility in
Livingston on Tuesday due to lack of new orders for its main
product, according to The Scotsman.

NMT's syringe technology used to be packed alongside the costly
HIV treatment Fuzeon after drugs giant Roche saved it from
imminent collapse in September last year.  But because of the
syringe technology's high price and complexity, the company made
no further contracts, prompting it to sever its agreement with
the Swiss firm as well as to shut down the factory, Finance
director Gerard Cassels said.  The move affected 90% of the
company's 155 employees.

The manufacturing facility is expected to generate revenues of
GBP10 million this year, but projected losses of GBP4 million
makes the company's prospects bleak.

Mr. Cassel said the company will now focus on marketing its
"second generation" syringe that would cost half the price.  If
this fails to revive business, the company would outsource
manufacturing to Europe or North America rather than re-open the
plant.


OUR PRICE: Joint Administrators Sell Business, Assets
-----------------------------------------------------
Shay Bannon and Simon Michaels, Joint Administrators of Our Price
Entertainment (UK) Ltd, offer for sale the business and assets of
this leading independent chain or music and visual entertainment
outlets.  The company presently trades as "Sanity" & "Our Price."

Key features include:

(a) 104 leasehold retail outlets in prime high street and
shopping center locations.

(b) Approximately 700 staff and a management team with
considerable experience in the market sector.

(c) Turnover for the 12 months ending October 31, 2003 of GBP81
million.

(d) Stock at cost of approximately GBP8 million.

CONTACT:  Kevin Ley
          Phone: 020 7893 2249
          Fax: 020 7893 3944
          E-mail: kevin.ley@bdo.co.uk


ROYAL MAIL: Staff Promise Normal Delivery Services for Christmas
----------------------------------------------------------------
The employees union at Royal Mail assured it is not launching
protest actions that could disrupt mail deliveries in the run-up
to Christmas, according to Ananova.

Dave Ward, deputy general secretary of the Communication Workers
Union, said Royal Mail postmen and women will not do anything to
"ruin" Christmas.  Previously they said there will be two 24-hour
strikes later this month.

In October, the employees launched unofficial walkouts that
crippled deliveries throughout the cities.  The protests are
aimed against Royal Mail's plan to boost productivity that
includes the scrapping of second mail deliveries.  Mr. Ward will
continue to negotiate with the courier regarding the staff's
demand.  Talks are now in advance stage, especially with regards
to the London Weighting dispute, he said.


VERNON STAINLESS: ASD Plc Buys GBP35 Mln Biz for Undisclosed Sum
----------------------------------------------------------------
The joint administrators of Vernon Stainless Ltd. have sold the
majority of the Blackburn-based business as a going concern to
ASD plc for an undisclosed sum.  The deal preserves the jobs of
approximately 90 employees.  The new business will trade as KMS
Vernon.

Vernon Stainless Limited, an independent stainless steel and
aluminum stockholder and processor, went into administration on
Friday December 5, 2003.  The business has an annual turnover of
circa GBP35 million.  ASD plc is a division of Klockner U.K., the
country's largest independent steel stockholder.  The firm, which
employs more than 1,000 people throughout the U.K., is based in
Leeds.

The transaction does not include the sale of the Loks Plasma
Services division of Vernon Stainless Limited.  The
administrators are currently in negotiation with a potential
buyer.

Paul Flint, Joint Administrator at KPMG Corporate Recovery said,
"We are pleased to have completed the extremely swift sale of
Vernon Stainless Ltd.  This is excellent news for all those
connected with the business and we would like to thank everyone
for their support."

"We can confirm that we are in discussions with a separate third
party with regards to the sale of Loks Plasma Services, and hope
to be able to report some progress over the next few days."

CONTACT:  KPMG
          Katy Broomhead
          Phone: 0161 838 4623
          KPMG Corporate Communications
          Mobile: 07775 708917
          E-mail: katy.broomhead@kpmg.co.uk

          Victoria Works
          Commercial St
          Oswaldtwistle
          Accrington
          Lancs
          BB5 3JW
          United Kingdom
          Phone: (01254) 386969
          Fax: (01254) 388844
          Homepage: http://www.vernongroup.co.uk


                            *********


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., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland 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.


                 * * * End of Transmission * * *