/raid1/www/Hosts/bankrupt/TCREUR_Public/040114.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, January 14, 2004, Vol. 5, No. 9


                            Headlines

B E L G I U M

FORD MOTOR: CEO Sets High Expectations for European Operation


C Z E C H   R E P U B L I C

PRAGUE BUSINESS: Paper Folds up Due to Huge Tax Arrears


F R A N C E

SCOR GROUP: Ratings Removed from Watch Negative; Outlook Stable


G E R M A N Y

HVB GROUP: Ships Schoellerbank to Kredietbank for EUR300 Million


H U N G A R Y

DUNAFERR RT: Govt Begins Talks with Ukrainian-Swiss Group
PARMALAT HUNGARIA: Sell-off Not Farfetched, Source Says


I T A L Y

FIAT SPA: Agnelli Sees Transition Towards Rosier Future in 2004
PARMALAT FINANZIARIA: Australian Unit Underscores Viability
PARMALAT FINANZIARIA: PwC Unearths US$10 Billion Bogus Deals
PARMALAT FINANZIARIA: Tetra Pak Probes Reimbursement Allegations
PARMALAT SPA: Winding-up Petition for Parmalat Capital Filed

PARMALAT SPA: Centrale, Latte Sole Spared from Administration
PARMALAT SPA: Bankruptcy No Impact on Asset-backed CP Conduits
TELECOM ITALIA: Offers New Benchmark Euro Bonds
VERSACE: Takeover Offers Increase, But Donatella Not Biting


N E T H E R L A N D S

IFCO SYSTEMS: Gamay Makes Public Voluntary Public Offer
KLM ROYAL: Amends Accounts Ahead of Air France Combination


R U S S I A

METROMEDIA INTERNATIONAL: Amends Report Due to Slight Oversight
METROMEDIA INTERNATIONAL: Faces Corruption Charges in Georgia
METROMEDIA INTERNATIONAL: Bent on Selling Non-core Assets
METROMEDIA INTERNATIONAL: Risks Default on Senior Discount Notes
METROMEDIA INTERNATIONAL: Senior Notes Claims Now Total US$248 M
METROMEDIA INTERNATIONAL: Scraps Preferred Stock Dividend


S W E D E N

SAS GROUP: December Passenger Traffic Down


S W I T Z E R L A N D

ADECCO SA: Possible Accounting Error Rattles Investors
ADECCO SA: On Watch Developing Due to Delay in Financial Audit
SWISS INTERNATIONAL: Harmonizes Web site, Travel Agency Fares


U N I T E D   K I N G D O M

BRITISH ENERGY: Details Share Interest of Goldman Sachs
DAMOVO U.K.: Shakeup Could Lead to Job Losses
HOLLINGER INC.: May Opt to Sell Business in One Piece
LEEDS UNITED: Possible Buyers Not Interested in Shares
ROYAL MAIL: Special Privileges Under Review
ROYAL MAIL: Moves to Improve Marketing Structure
SSG: Troubles Spread to other Business Operations


                            *********


=============
B E L G I U M
=============


FORD MOTOR: CEO Sets High Expectations for European Operation
-------------------------------------------------------------
Executives at Ford Motors said they expect a "dramatic
improvement" in the company's European operations this year,
according to The Guardian.  The carmaker now expects losses to
fall to US$100 million, from US$6.4 billion in 2001 and 2002.
The company lost US$525 million in the second quarter and a
further US$453 million in the third quarter.

Bill Ford, Chief Executive, said at an analysts presentation:
"In the last two years we have under-promised and over-
delivered."  He is now at the third year of his five-year
recovery plan.

Mr. Ford said earnings at the company had turned around US$5
billion in the past two years.  He forecast earnings per share
this year of $1.20-$1.30, or up to $3.8 billion, slightly below
market expectations.  Nick Scheele, chief operating officer,
meanwhile, said the firm will continue with the restructuring
and cost reduction this year.  In 2003, Ford Motors cut more
than 5,000 jobs in Europe.


===========================
C Z E C H   R E P U B L I C
===========================


PRAGUE BUSINESS: Paper Folds up Due to Huge Tax Arrears
-------------------------------------------------------
The Czech Republic's most respected English-language newspaper,
Prague Business Journal, ceased publishing this week after eight
years on the market.  The decision was based on Prague Business
Journal s.r.o.'s insurmountable tax debts, which largely
resulted from poor management practices in the past and a faulty
business model adopted at its founding.

The immediate cause of the closure was the freezing of Prague
Business Journal's accounts by the Financial Office for Prague 2
due to unpaid VAT from October 2001 to May 2002.  Without access
to its bank accounts, Prague Business Journal was unable to pay
employees and key suppliers in order to continue operations.
The company's sole owner, New World Publishing Inc., will file
for Prague Business Journal s.r.o.'s bankruptcy with the Czech
courts in the coming days.

Prague Business Journal accumulated the bulk of its debts
between 2000 and 2002.  A major turning point in the company's
history came in June 2002 when the publisher of Prague Business
Journal's sister publication, Budapest Business Journal, Stephen
O'Connor, became Prague Business Journal's publisher (based in
Hungary), and Jeffrey Osterroth, the Prague Business Journal
Director of Special Projects, was named associate publisher.
The new management subsequently restructured the company through
staff and cost cuts and restored day-to-day profitability.

The company's last two years were among its most successful,
bringing scores of new readers and advertisers and solidifying
Prague Business Journal's reputation as one of the few impartial
and objective sources of business and political news in the
Czech Republic.  Debts aside, preliminary results for 2003 show
a pre-tax profit of around CZK3,000,000, on revenues of nearly
CZK40,000,000.

Aside from the influential weekly Prague Business Journal
(launched in December 1995), the company published the annual
City Invest Czech and Book of Lists, the monthly real estate
supplement EeskE Reality, and several other supplements such as
Country Focus, Industry Focus and Executive Living.  It also
operated the http://www.pbj.czWeb site and organized dozens of
business mixers, conferences, and business breakfasts and
luncheons each year.  Despite its language of publication, over
70% of Prague Business Journal's readers were Czech.

The current management and staff of Prague Business Journal
regret the loss of Prague Business Journal for its readers and
advertisers and that they were unable to overcome the hurdles
that the past placed before the "new" Prague Business Journal.
Nevertheless, they believe that a market still exists for high-
quality English-language news in the Czech Republic and are
working to ensure that a similar publication quickly fills the
gap left by Prague Business Journal's closure.

CONTACT:  PRAGUE BUSINESS JOURNAL
          Subscriber and advertiser inquiries
          Phone: +420 246 086 501

          Media and other inquiries
          Jeffrey Osterroth, Associate Publisher
          Phone: +420 246 086 520
          E-mail: josterroth@pbj.cz


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


SCOR GROUP: Ratings Removed from Watch Negative; Outlook Stable
---------------------------------------------------------------
Fitch Ratings affirmed SCOR Group's Insurer Financial Strength
rating at 'BB+' and the Long-term and Short-term ratings of SCOR
at 'BB' and 'B', respectively, removing them from Rating Watch
Negative.  The rating Outlooks are now Stable.

Fitch believes that SCOR's successful equity raising, for a
total consideration of EUR751 million, will support the group's
financial profile, which had been substantially affected by
unexpected losses posted in the third quarter of 2003.

Fitch's ratings continue to reflect concerns about possible
further unfavorable financial developments in the short and
medium term as mentioned in the Credit Comment issued on 4
December.  While the capital raising could yield positive
developments and improve market perceptions as far as security
is concerned, Fitch still believes that SCOR's franchise has
been and will remain affected as a consequence of the
announcements on discontinued business related losses and
reserve strengthening.

As a consequence, Fitch considers the group to be in a
challenging position to retain and attract reinsurance business
in both life and non-life lines, and runs some risk of anti-
selection.  Fitch also believes that while management made good
efforts to bring reserves to a level of adequacy in third
quarter 2003, it should be noted that for many companies with
U.S. liability exposures, actuarial analyses conducted using
"best practices" often prove to be incorrect.  Given the long
tail and historic volatility of these exposures, Fitch believes
it would be premature to conclude that there will be no future
adverse reserve developments.  Fitch will continue to closely
monitor the situation.

SCOR is a major publicly traded diversified reinsurer.  Business
is underwritten under three major operating divisions: Property
& Casualty, Life and Business Solutions.  It holds strong
business positions in a number of European countries and to a
lesser extent in Asia and Latin America.  Insurers rated in the
'BB' category are viewed as moderately weak with an uncertain
capacity to meet policyholder and contract obligations.  Though
positive factors are present, overall risk factors are high and
the impact of any adverse business and economic factor is
expected to be significant.  The IFS rating applies to the
following operating reinsurance company members of the SCOR
Group: SCOR; SCOR Reinsurance Co. (U.S.), General Security
Indemnity Co., General Security National Insurance Co., General
Security Indemnity Co. of Arizona, SCOR Life U.S. Re Insurance
Co., Investors Insurance Corp., Republic-Vanguard Life Insurance
Co., SCOR Canada Reinsurance Co., Commercial Risk Re-Insurance
Co., Commercial Risk Reinsurance Co. Ltd., SCOR Deutschland
Ruckversicherungs AG, SCOR Italia Riassicurazioni S.p.A., SCOR
U.K. Co. Ltd., SCOR Reinsurance Asia-Pacific Pte Ltd, SCOR
Reinsurance Co.(Asia) Ltd.


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


HVB GROUP: Ships Schoellerbank to Kredietbank for EUR300 Million
----------------------------------------------------------------
HVB's Austrian unit, Schoellerbank, will be sold to Kredietbank
Luxemburg for an estimated EUR300 million, Intesatrade news
agency reported, citing the Financial Times Deutschland.

The second-largest bank in Germany, HVB posted losses the past
two years as a result of the slump in the country's economy.  It
is currently implementing a restructuring plan aimed at
improving earnings, selling some of its assets and spinning off
its commercial real estate activities.

Chief Executive Dieter Rampl recently said he intends to achieve
a "significant jump in operating profit" and improve core
capital ratio, which has remained below the German industry's
average despite recent improvements.


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


DUNAFERR RT: Govt Begins Talks with Ukrainian-Swiss Group
---------------------------------------------------------
The State Privatization and Holding Rt has chosen the Ukrainian-
Swiss Donbass-Duferco consortium to buy a majority stake in
steelworks Dunaferr Rt, Budapest Business Journal reports citing
a statement from the agency.  The agency did not specify the
amount involved in the deal.

The transaction, which involves the sale of 79.48% of Dunaferr's
shares, provides that the buyer maintain current employment
levels and improve working conditions.  It also requires the
buyer to have the financial resources to guarantee the company's
continued operations and development.

This should involve a HUF13 billion (EUR49.3 million) capital
increase, and an investment of EUR250 million in the company.
The total cost is expected to approach HUF100 billion over five
years, according to the privatization agency.  Negotiations with
the winning bidder are scheduled to begin in the first half of
January.  Some 5% of Dunaffer's shares will be offered to
employees at a preferential price.


PARMALAT HUNGARIA: Sell-off Not Farfetched, Source Says
-------------------------------------------------------
Industry insiders expect the Hungarian subsidiary of Italian
dairy giant, Parmalat, to be sold as mounting pressure at the
parent makes functioning at the local unit complicated.

Budapest Business Journal cited an executive close to the issue
saying: "The company is facing difficult times.  All payments
and decisions must be approved at headquarters."

Parmalat Hungaria's CEO is set to visit the Italian headquarters
in a few days to draw out a draft of the local strategy, the
source, who refused to be identified, said.  "The company is
already behind with due payments; it's likely it will go up for
sale," he said.

Parmalat Hungaria Rt owes milk suppliers an average of one-and-
a-half-months' payment, according to dairy producers interviewed
by newswire, MTI-Econews.  Parmalat has a 5-6% market share in a
country where dairy companies buy 1.2 billion liters of milk
yearly for domestically sold milk and dairy products.


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


FIAT SPA: Agnelli Sees Transition Towards Rosier Future in 2004
---------------------------------------------------------------
Fiat S.p.A. President Umberto Agnelli hopes to see a turnaround
for the struggling Italian industrial group this year, Agenzia
Geornalistica Italia reported Monday.

Responding to questions about the state of the Turin auto house,
Mr. Agnelli said: "I think the year of transition will be 2004,
then from there we'll have to see."

Fiat missed its targets for the third quarter, in particular its
goal to cut losses to EUR231 million.  Third-quarter loss came
at EUR285 million, down from last year's EUR339 million.
Revenues fell to EUR9.84 billion from EUR11.99 billion in the
year-earlier period, while its net loss narrowed to EUR84
million from EUR413 million.

The company plunged into the red last year due to poor sales at
key car unit, Fiat Auto.  It is hoping to return to profit in
2005 under a plan that involves asset sales and rights issues.
Although disappointed with the latest results, analysts expect
profits to pick up in the fourth quarter.


PARMALAT FINANZIARIA: Australian Unit Underscores Viability
-----------------------------------------------------------
Parmalat Australia Ltd. says it remains a sound, viable business
and operates independently from its scandal-burdened parent.
Importantly, the Australian business does not require support
from its parent for day-to-day operations.

The trading results for Parmalat Australia, formerly Pauls
Limited, indicate a strong, viable business, according to
Managing Director David Lord.  In a recent press release, Mr.
Lord explained that Parmalat Australia's operations have been
profitable and cash flow positive.  This is expected to
continue.

"All trading is conducted through this entity," he explained.

The 2002 statutory accounts of Parmalat Australia -- publicly
available from ASIC -- clearly show EBIT of A$18.2 million and
that the company generated more than A$25.0 million of cash from
operations after capital expenditure.  Recent media reports
refer to the local non-trading Australian holding company,
Parmalat Pacific Holdings Pty Ltd -- formerly Parmalat Australia
Pty Ltd -- the results of which, since 1998 reflect holding
costs associated with the original acquisition of Pauls Limited,
including the write-off of goodwill on acquisition.  A
significant proportion of these expenses are non-cash items as
evidenced in the Statement of Cash Flows in the accounts of the
holding company and, hence, have no cash impact on the total
Australian operations.

In Australia, Parmalat operations in 2003 continued to generate
solid EBIT growth and also growth in free cash generation.
Parmalat Australia's 2003 results continue to show a significant
improvement in operational performance and this will be
evidenced in the audited 2003 accounts.

"For Parmalat Australia, it's business as usual despite
developments involving its parent company in Italy.  We operate
as an independent entity and with the ongoing support of all
stakeholders, including customers, employees, farmers, banks and
suppliers, we will continue to build on our success," Mr. Lord
said.

Parmalat Australia employs over 1,500 people across Australia.
It purchases more than 600,000,000 liters of milk from farmers
and cooperatives each year.  (Parmalat Bankruptcy News, Issue
No. 2; Bankruptcy Creditors' Service, Inc., 215/945-7000)


PARMALAT FINANZIARIA: PwC Unearths US$10 Billion Bogus Deals
------------------------------------------------------------
PricewaterhouseCoopers claims Parmalat's accounts are littered
with billions of dollars of faked transactions, the Telegraph
said, citing a report from Rome's La Repubblica newspaper.

Commissioned by administrator, Enrico Bondi, to audit Parmalat's
previous accounts ending June 2003, the auditing firm has so far
uncovered about US$10 billion worth of questionable deals.
These include US$1.4 billion in loans allegedly owed by other
companies to Parmalat.

While the issuers were real, La Repubblica said Parmalat had not
bought their obligations at all, but had merely copied their
names "from the Internet."  PricewaterhouseCoopers did not
confirm nor deny the report, but left the public to Mr. Bondi's
statement.  The newspaper also mentioned a supposed US$4.9
billion inter-group operations.  Mr. Bondi said it was "too
early" to be talking of company accounts.


PARMALAT FINANZIARIA: Tetra Pak Probes Reimbursement Allegations
----------------------------------------------------------------
Tetra Pak, the Swedish company that supplies cartons for
Parmalat's milk and fruit juices, is now looking into its own
records to ascertain whether there's truth in the allegations
that it made questionable rebates to the Italian dairy group.

Tetra Pak is alleged to have reimbursed Parmalat for discounts
on contracts by sending payments back to offshore companies
owned by the Tanzi family rather than to Parmalat subsidiaries.
Fausto Tonna, the former Parmalat chief financial officer now
under arrest, had told investigators that Tetra Pak transferred
up to EUR30 million (US$38 million) a year to accounts owned by
Calisto Tanzi, Parmalat's founder and majority owner.  The deals
go as far back as 1996.

Jorgen Haglind, a spokesman for Tetra Pak, said discounting is
normal practice, but he has no knowledge if the company returned
cash in such instances.  One person involved in the probe said
investigators have not yet verified the allegations.


PARMALAT SPA: Winding-up Petition for Parmalat Capital Filed
------------------------------------------------------------
Food Holdings Limited and Dairy Holding Limited, two Cayman
Island special-purpose vehicles established by Parmalat S.p.A.,
filed a winding up petition against Parmalat Capital Finance
Limited in the Grand Court of the Cayman Islands last week.

A copy of the Winding-Up Petition filed against Food Holdings
Limited is available no charge at:
http://bankrupt.com/misc/830.pdf

In order for Food Holdings and Dairy Holding to honor their
obligations to their noteholders, Parmalat Capital must honor
its obligations under Put Agreements.

(Parmalat Bankruptcy News, Issue No. 2; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PARMALAT SPA: Centrale, Latte Sole Spared from Administration
-------------------------------------------------------------
Parma, 2 January, 2004 --       |  PARMA, 2 gennaio 2004 --
The subsidiary company Parmalat |  La controllata Parmalat
S.p.A. communicates that there  |  S.p.A. comunica che per
won't be any request for        |  Centrale del Latte di Roma
admission to the Extraordinary  |  S.p.A. e per Latte Sole
Administration procedure for    |  S.p.A. non sara richiesta
Centrale del Latte di Roma      |  l'ammissione alla procedura
S.p.A. and Latte Sole S.p.A.    |  di amministrazione
since the two companies are     |  straordinaria in quanto le
able to guarantee continuity in |  due Societa sono in grado di
the economic and financial      |  assicurare l'equilibrato
management.                     |  andamento della gestione
                                |  economica e finanziaria.

(Parmalat Bankruptcy News, Issue No. 2; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PARMALAT SPA: Bankruptcy No Impact on Asset-backed CP Conduits
--------------------------------------------------------------
In light of the bankruptcy and criminal investigation into the
alleged fraud at Parmalat S.p.A., Fitch has reviewed all of its
rated asset-backed commercial paper conduits and identified two
programs with direct exposure to the Italian dairy company.  In
each identified case the exposure has been removed under the
respective programs' liquidity facilities.

In addition, Fitch identified one instance of indirect exposure
to Parmalat through CDO holdings that were placed on Rating
Watch Negative by Fitch on December 24, 2003.  The ratings of
these conduits have not been affected as a result of these
holdings.  Fitch will closely monitor any future developments.


TELECOM ITALIA: Offers New Benchmark Euro Bonds
-----------------------------------------------
Telecom Italia S.p.A. hired Barclays Capital, BNP Paribas,
Caboto, Deutsche Bank, JP Morgan, MCC, Mediobanca and UBM as
Lead Arrangers and Bookrunners of a multi-tranche benchmark Euro
denominated issue, consisting of two fixed-rate tranches with
seven- and fifteen-year maturities and of a long three-year
floater.

The bonds, whose total amount will be determined and split among
the different tranches according to investor demand, will be
issued under Telecom Italia's EUR10 billion Euro Medium Term
Note Program which allows for the issuance of bonds in different
tranches and in different currencies on the Eurobond market by
Telecom Italia or Telecom Italia Finance guaranteed by Telecom
Italia, for a maximum of up to EUR10 billion.  The purpose of
the issue is to refinance outstanding debt approaching maturity.

The securities referred to in this press release have not been
and will not be registered under the U.S. Securities Act of 1933
and may not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements.


VERSACE: Takeover Offers Increase, But Donatella Not Biting
-----------------------------------------------------------
Donatella Versace, 20% owner of fashion house Versace, is
resisting offers from parties interested in buying the company,
according to just-style.com.

Ms. Versace, sister of the firm's late founder, Gianni, said
investor interest in the Italian company had been on the rise,
but she intends to hold on to her stake to continue the plans
outlined by his brother before his abrupt death in 1997.  These
include floating on the stock market.

"We are being courted a lot recently," just-style quoted her as
saying. "A lot of people would like to buy us, but I'm looking
for minority shareholders.  I want Versace to get bigger still
and then to go on the bourse."

Versace is 30% owned by another member of the family,
Donatella's brother, Santo.  The remaining 50% is soon to be
legally owned by Donatella's daughter, Allegra, when she turns
18 this year.


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


IFCO SYSTEMS: Gamay Makes Public Voluntary Public Offer
-------------------------------------------------------
Gamay Limited, acting in its capacity as Managing General
Partner of Island International Investment Limited Partnership,
both organized under the laws of Guernsey and having their
principal business address at 13-15 Victoria Road, St. Peter
Port, Guernsey, GY1 3ZD, Channel Islands ("Bidder"), published
the offer document which contains the terms and conditions for a
Voluntary Public Offer to acquire the IFCO Systems N.V. shares
and warrants.  The offer document is posted on:
http://www.island-offer.com


KLM ROYAL: Amends Accounts Ahead of Air France Combination
----------------------------------------------------------
Koninklijke Luchtvaart Maatschappij N.V. (KLM) filed a Form 20-
F/A with the U.S. Securities and Exchange Commission (SEC).
This Form 20-F/A amends certain items of KLM's Annual Report on
Form 20-F for the fiscal year ended March 31, 2003, which was
filed with the SEC on June 12, 2003.

In connection with KLM's proposed combination with Air France,
KLM's Annual Report on Form 20-F will be incorporated by
reference by Air France into a registration statement under the
U.S. Securities Act of 1933 on Form F-4.  The amendments were
made in that connection and to increase the comparability of
information in the Form F-4 to that contained in KLM's Annual
Report on Form 20-F.

A copy of the Form 20-F/A may be obtained from KLM's investor
relations website (http://investorrelations.klm.com)under the
heading 'SEC filings'.

CONTACT:  KLM ROYAL
          Investor Relations
          Phone: +31 20 649 30 99,


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


METROMEDIA INTERNATIONAL: Amends Report Due to Slight Oversight
---------------------------------------------------------------
Metromedia International Group, Inc. (currently traded as:
OTCPK:MTRM - Common Stock and OTCPK:MTRMP - Preferred Stock),
the owner of interests in various communications and media
businesses in Russia, Eastern Europe and the Republic of
Georgia, announced it would restate certain reports made
previously on Form 10-K and 10-Q to reflect corrections of past
accounting errors.

The Company does not, however, believe that the restatements,
individually or in the aggregate, will materially impact or
alter the Company's current financial position.  Preparation of
the restated historical reports has delayed filing of the
Company's Quarterly Report on Form 10-Q for the period ended
September 30, 2003.

The Company also announced that, in view of the delay in filing
its Current Quarterly Report, the trustee of its Series A and B
10 1/2 % Senior Discount Notes Due 2007 has issued a notice that
the Company is not in compliance with requirements of the
indenture governing these Notes and that the Company must
resolve this compliance matter no later than March 8, 2004, the
sixtieth day following the receipt of the trustee's letter in
order to avoid an event of default.  The Company expects that it
will file all required reports shortly and well within the 60-
day period required for compliance with its indenture.  A
summary of significant items to be addressed in the restated
historical reports and the Current Quarterly Report follows.

Historical Errors in Accounting for Tax Refunds and Preferred
Stock Dividend Expenses

While preparing its Current Quarterly Report, the Company
determined that the following accounting errors had been made in
its past financial statements:

(a) The Company has determined that it should have recorded a
US$2.1 million tax refund that it received on November 10, 2003
from the United States Department of Treasury, related to the
carry-back of certain AMT losses which recovered taxes paid in
prior years, in fiscal year 2002;

(b) The Company has determined that it should have recorded a
US$2.3 million tax refund from the United States Department of
Treasury, related to the carry-back of certain AMT losses which
recovered taxes paid in prior years, that the Company had
previously recorded within the "Income from discontinued
components" line item within its consolidated financial
statements for the three and twelve month periods ended December
31, 2002 in an earlier accounting period in 2002; and

(3) The Company historically accounted for unpaid dividends on
its 7 1/4% cumulative preferred stock on a simple interest
basis; however, according to the Preferred Stock Certificate of
Designation, cumulative unpaid dividends are subject to
quarterly compounding.  The Company has recalculated the
cumulative unpaid dividend amount for 2002 and 2003 based on the
date of the first unpaid dividend and has increased the
quarterly dividend expense amounts in the 2002 and 2003
quarterly periods by US$0.2 million, US$0.3 million, US$0.4
million, US$0.4 million, US$0.5 million and US$0.6 million for
the three months ended March 31, 2002, June 30, 2002, September
30, 2002, December 30, 2002, March 31, 2003 and June 30, 2003
respectively.  Under-reported dividend expense amounts prior to
2002 were immaterial.  With all quarterly compounding
corrections applied, as of September 30, 2003 the total dividend
in arrears was US$41.4 million.


METROMEDIA INTERNATIONAL: Faces Corruption Charges in Georgia
-------------------------------------------------------------
In the course of completing its Current Quarterly Report,
management reported to the Company's Board of Directors and its
independent auditor that the Company had received letters from,
and corresponded with, two Georgian individuals involved in the
initial formation, approximately eight to ten years ago, of
certain of the Company's business ventures in the Republic of
Georgia.  These individuals alleged that the Company had not
fully complied with its obligations to them under certain
contracts.  In addition, the individuals alleged that Company
personnel may have violated the Foreign Corrupt Practices Act
and possibly engaged in other improper or illegal conduct.
However, the individuals have so far refused to specify details
of the alleged violations and have provided no evidence in
support of the allegations that they have made.

The Company had entered into contracts with these Georgian
individuals.  The contract with one of these individuals
entitles him to 5% of any dividends the Company receives from
Telecom Georgia.  The contract with the other individual
entitles him, assuming certain conditions were satisfied, to up
to a 1% portion of the Company's equity interest in certain of
the Company's business ventures in the Republic of Georgia,
which the Company currently believes could only include Telecom
Georgia, Ayety TV and Paging One (a now defunct paging company).

The Company believes it has fully performed its obligations to
date under the aforementioned contracts and has so informed the
individuals.  The Company also believes that the fair value of
any continuing interest that these individuals may have in the
Georgian businesses subject to the contracts is not material.
Furthermore, nothing presented in the unsupported allegations of
improper or illegal conduct of Company personnel has prompted
the Company to amend or alter the report that it made to the
United States Justice Department and the Securities and Exchange
Commission in the first quarter of 2003 regarding possible
violations of foreign and United States laws, including the
Foreign Corrupt Practices Act.  As a matter of prudence and to
ensure the claims of these Georgian individuals are properly
considered, the Company's Board of Directors has authorized the
Company's outside counsel to conduct an independent inquiry into
both the Company's obligations under the contracts referred to
above and the allegations of possible improper or illegal
conduct of Company personnel.  The Company is not in a position
to predict the outcome of this inquiry.  However, due to the
relatively low current fair value of the businesses subject to
contracts with these Georgian individuals and in view of the
unspecific and unsupported nature of the individuals'
allegations, the Company believes that the inquiry will not
result in any material adverse effect on the Company's business,
financial condition or results of operations.

Furthermore, recent events in the Republic of Georgia arising
from widespread discontent over parliamentary elections,
including the premature resignation of President Eduard
Shevardnadze, have significantly increased the level of
political uncertainty in that country.  This condition, which is
expected to extend into the foreseeable future, increases the
level of economic and legal risks that the Company faces with
respect to its operations in Georgia.  In addition to those
risks previously reported in the Company's Form 10-K for the
period ending December 31, 2002, present conditions in Georgia
significantly increase the possibility of general economic
distress, civil unrest, terrorism and a collapse of consumer
confidence in Georgia, each of which could have a material
adverse effect on the Company's operations in that country.


METROMEDIA INTERNATIONAL: Bent on Selling Non-core Assets
---------------------------------------------------------
Restatement of Historical Results of Discontinued Businesses

On September 30, 2003, the Board of Directors formally approved
management's plan to dispose of all remaining non-core media
businesses of the Company.  In light of this, the Company
concluded that such businesses meet the criteria for
classification as discontinued business components as outlined
in SFAS No. 144, "Accounting for the Impairment or Disposal of
Long-Lived Assets", and as a result these businesses must be
presented as such within the Company's condensed consolidated
financial statements.  This has required the Company to restate
its prior period financial information, for these non-core media
businesses, to conform to the current period presentation
appearing in the Company's third quarter 2003 Form 10-Q.

Asset Sales

As previously communicated, the Company is continuing to pursue
the sale of its remaining non-core media businesses, including
most of the remaining cable television and radio broadcast
businesses.  Management anticipates that these sales will be
completed during the first quarter of 2004.  Following is a
summary of asset sales that have occurred during the fourth
quarter of 2003 that the Company has not previously disclosed:

Sun TV: On October 12, 2003, the Company sold its interest in
the Moldovan cable television company Sun TV and Sun Constructie
S.R.L., a Moldovan trading company, to Lekert Management, LTD, a
company organized under the laws of British Virgin Islands for
cash consideration of US$2.1 million.  Lekert Management, Ltd.
is an affiliated company with Neocom S.R.L., which owned 35% of
Sun TV prior to the transaction.  Such transaction resulted in
the Company recording a loss on the disposition of US$0.4
million.  The Company recorded a charge to earnings in the third
quarter of 2003 in the amount of US$0.4 million to reflect its
investment in Sun TV and Sun Constructie at the lower of cost or
fair value less cost to sell.

Sun TV's fiscal year 2002 revenues were US$2.2 million, with
cost of services of US$0.3 million and operating expenses of
US$1.3 million, which included US$0.3 million of depreciation
and amortization.  Sun TV's nine-month revenues were US$1.6
million, with cost of services of US$0.3 million and operating
expenses of US$1.7 million, which included US$0.4 million of
depreciation and amortization and a US$0.4 million asset
impairment charge in 2003.  Sun TV had approximately 53,000
direct wire and wireless subscribers as of September 30, 2003.

Teleplus: On November 21, 2003, the Company sold all of its
interest in the St. Petersburg, Russia cable television company,
Teleplus, to a Russian company, "Svyaz-Kapital", and AVT Systems
Ltd., a company organized under the laws of Cayman Islands, for
cash consideration of US$0.9 million.  The Company anticipates
recognizing a gain of US$0.7 million on the disposition, which
will be recorded in the three-month period ended December 31,
2003.

Teleplus' fiscal year 2002 revenues were US$0.4 million, with
cost of services of US$0.1 million and operating expenses of
US$0.8 million, which included US$0.3 million of depreciation
and amortization.  Teleplus' nine-month revenues were US$0.3
million, with cost of services of US$0.1 million and operating
expenses of US$0.6 million, which included US$0.3 million of
depreciation and amortization in 2003.  Teleplus had
approximately 7,000 direct wire line and wireless subscribers as
of September 30, 2003.


METROMEDIA INTERNATIONAL: Risks Default on Senior Discount Notes
----------------------------------------------------------------
Notification from Trustee for the Company's Senior Notes

The Company received notification from the trustee of its Senior
Discount Notes concerning compliance with the covenants as
outlined in the indenture governing the Senior Discount Notes.
The trustee reported that the Company had not yet filed with the
Securities and Exchange Commission and furnished to the trustee
its Current Quarterly Report, the timely public filing of which
is required under Section 4.3(a) of the Indenture.  The trustee
reported that, under the terms of the Indenture, the Company
must resolve this compliance item within 60 days of receipt of
the trustee's letter or the trustee will be required to declare
an event of default.  If an event of default were declared, the
trustee or holders of at least 25% aggregate principal value of
Senior Discount Notes outstanding could declare all Senior
Discount Notes to be due and payable immediately.

Change of Corporate Headquarters Office

During the fourth quarter of 2003, the Company relocated its
corporate headquarters offices from New York City to Charlotte,
North Carolina.  Accordingly, the Company's current corporate
office address is now as follows:

    8000 Tower Point Drive
    Charlotte, North Carolina 28277
    Main Phone #: (704) 321-7380

In making these announcements, Ernie Pyle, Executive Vice
President Finance and Chief Financial Officer of MIG, commented,
"We encountered a series of largely unexpected issues while
completing work on our Current Quarterly Report, but we believe
that none of the consequences of these adjustments materially
alters the current financial position of the Company. Our much
reduced staff levels limited the speed with which this work
could be completed; however, we believe that we have sufficient
resources to ensure the timely filing of future reports with the
SEC.  We apologize for any inconvenience the delay in filing our
Form 10-Q for the quarter ended September 30, 2003 may cause for
our investors."


METROMEDIA INTERNATIONAL: Senior Notes Claims Now Total US$248 M
----------------------------------------------------------------
During 2003, the Company engaged in discussions with
representatives of holders of a substantial portion of the
Company's Senior Discount Notes concerning a restructuring of
the Senior Discount Notes.  To date, no restructuring has been
agreed upon and further restructuring discussions with these
substantial Senior Discount Note holders have been suspended.
Opportunities to restructure the Company's balance sheet,
including to refinance the Senior Discount Notes and the
Company's Preferred Stock, which had an aggregate preference
claim of $248.4 million as of September 30, 2003, are being
pursued, but present Company plans presume the continued service
of the Senior Discount Notes debt on current terms and the
continued deferral of the payment of dividends on the Preferred
Stock.  The Company cannot provide assurances that any capital
restructuring effort will be undertaken or, if undertaken, that
it will provide for sufficient cash reserves to support long-
term sustainable operations.


METROMEDIA INTERNATIONAL: Scraps Preferred Stock Dividend
---------------------------------------------------------
Preferred Stock Dividend

To facilitate any potential future capital restructuring of the
Company, the Board of Directors of the Company elected not to
declare a dividend on its Preferred Stock for the quarterly
period ending on December 15, 2003.

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 media businesses.  The
Company's non-core media businesses are comprised of four cable
television networks, including operations in Russia, Romania,
Belarus and Lithuania.  The Company also owns interests in
nineteen 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.
          Ernie Pyle
          Phone: 704-321-7380, Ext. # 103
          Executive Vice President Finance,
          Chief Financial Officer, and Treasurer


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


SAS GROUP: December Passenger Traffic Down
------------------------------------------
Market trends and yield development

The traffic development in December was in line with previous
months with reduced passenger yields across most airlines in the
Group.  Overall passenger load factor was unchanged and
passenger traffic decreased by 0.3% during December.

In general, growth has improved slightly on European and
intercontinental routes and positive mix can be noted on Asian
routes.  Domestic and Intra-Scandinavian markets are still
characterized by weak demand and increased competition and this
is the main explanation for the unchanged overall group traffic.

Braathens traffic increased in December driven by the positive
development on international routes.  Spanair's traffic
increased in December with improved load and improved yields.

Yields in November were down 10.5% month by month and 12.3% for
the period Jan- Nov.  Yields on the European routes were down
approx 12% in November.

The overall yield development in November showed continued
pressure on yields.  Price cuts were implemented in Scandinavia
as from October 26 and this has pushed yields further as from
November by approximately 2-3% vs. 2002.  The restructuring plan
"Turnaround 2005," is proceeding according to plan in order to
secure a sustained profitability level in a lower yield
environment.  Some improvements in general demand can be noted
but due to the situation with continued yield pressure, the
outlook remains cautious.

Scandinavian Airlines

(a) Scandinavian Airlines traffic (RPK) decreased by 2.6% in
December 2003 compared with 2002.

(b) Scandinavian Airlines passenger load factor increased by 0.5
p.u. to 64.0%

In line with other industry players, demand on the long haul
routes improved during December.  Intercontinental load factors
improved by 5.7 p.u.  Positive mix was noted on Asian routes
with Business Class up 3%.

Traffic on the European routes was flat.  Snowflake has its low
season now and showed a load factor around 45%.  Intra-
Scandinavian traffic was characterized by slow demand.
Norwegian domestic market has improved compared with previous
months, while demand on Swedish domestic routes has weakened
significantly.

To view full report:
http://bankrupt.com/misc/Scandinavian_Airlines.pdf


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


ADECCO SA: Possible Accounting Error Rattles Investors
------------------------------------------------------
Adecco S.A., the world's biggest provider of temporary workers,
suggested possible accounting irregularities at its North
American unit in a short statement on Monday.

There was "material weakness in internal controls" at the North
American business and possible accounting "issues" elsewhere,
the company said.  It did not elaborate on its statement due to
legal restrictions.  Auditor Ernst & Young LLP declined to
comment.

The problems discovered on the accounts will prevent the company
from releasing its 2003 earnings before February 4 as expected.
The news made Adecco lost CHF5.4 billion in market value.  The
company, based in Glattbrugg, Switzerland, has already appointed
an independent counsel to lead an investigation.

"The situation appears more akin to concerns at Ahold rather
than Parmalat at this moment," said Suki Mann, a strategist at
Societe General S.A. in London, according to Bloomberg News.

Some analysts and investors think, however, the fall in Adecco's
share value is only temporary.  They believe a recovery is
forthcoming once the company is able to file its financial
report.  Adecco's North America accounts for about 20% of its
revenue.  The company had total sales of CHF25.1 billion in
2002.


ADECCO SA: On Watch Developing Due to Delay in Financial Audit
--------------------------------------------------------------
Standard & Poor's Ratings Services downgraded its long-term
ratings on Swiss-based Adecco S.A., the world leader in
temporary staffing, to 'BBB-' from 'BBB+'.  At the same time,
the ratings were placed on CreditWatch with developing
implications.  The action followed Adecco's announcement in
Switzerland that it expected the audit of its financial
statements for 2003 to be delayed.  Adecco had about EUR2
billion of gross debt at Sept. 30, 2003.

Adecco said reasons for the delay included identification of
material weaknesses in internal controls at its North American
subsidiary, Adecco Staffing, as well as possible accounting,
control, and compliance issues at other, unspecified
subsidiaries.  The company also said it was addressing these
matters and determining their effect on Adecco's consolidated
financial statements.

"The downgrade mainly reflects our concern that we cannot assess
the full effect of these potential accounting, control, and
compliance issues on Adecco's credit quality, based on
information publicly disclosed by the company," said Standard &
Poor's credit analyst Melvyn Cooke.  The rating also reflects
Adecco's statement that it was not in a position to indicate
when the audit of its 2003 consolidated financial statements
would be completed.

In addition, the company could be subject to a reduction in its
liquidity if it is unable to access its confirmed bank lines
following a trigger of covenants such as MAC clauses
(substantially all of Adecco's debt carries cross-default
language).

Standard & Poor's is also concerned that the material weaknesses
in controls discovered at Adecco Staffing's North American
operations may not be restricted to this particular subsidiary.
If these problems are found to be generalized within Adecco's
global network-it has operations in more than 65 countries--they
could have serious implications for management's credibility and
for the company's global business.


SWISS INTERNATIONAL: Harmonizes Web site, Travel Agency Fares
-------------------------------------------------------------
Swiss and the Swiss Federation of Travel Agencies have reached
an agreement on the difference between fares booked through the
airline's Web site and those booked through the federation's
travel agencies.  The dispute arose when Swiss introduced a new
booking system this past August to coincide with the launch of
its Swiss in Europe product.  Under the agreement, Swiss grants
the same conditions to travel agencies as it does to its website
customers.  In return, Swiss secures its status as "preferred
partner," which ensures the greatest degree of support possible
from the Swiss Federation of Travel Agencies members.  With this
agreement, Swiss has established a new basis of trust with the
country's travel agencies, its most important distribution
partners.

Following intensive negotiations, Swiss management, led by CEO
Andre Dose, and the Swiss Federation of Travel Agencies
executive board reached agreement on the issue of the difference
in fares for Swiss's European flights.  The dispute over website
and travel agency fares dated back to August 2003.  As of
February 1, 2004, Swiss will harmonize its website and travel
agency fares.  The only exception will continue to be the two
lowest booking classes, with which Swiss has successfully
countered strong competition from low-cost carriers in recent
months.  This ensures that Swiss will remain competitive in this
fiercely contested market.

In reaching this agreement, Swiss meets a demand from the Swiss
Federation of Travel Agencies.  In return, a package of measures
has been agreed that will enable the Swiss Federation of Travel
Agencies to strengthen the position of Swiss in Switzerland.
The objective of these measures is to expand Swiss's dominant
position in its home market.

With the agreement Swiss and the Swiss Federation of Travel
Agencies have established a new basis of trust upon which to
tackle the challenges of the future together.

CONTACT:  SWISS INTERNATIONAL
          Corporate Communications
          P.O. Box, CH-4002 Basel
          Phone: +41 (0) 848 773 773
          Fax: +41 61 582 35 54
          E-mail: communications@swiss.com
          Homepage: http://www.swiss.com



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


BRITISH ENERGY: Details Share Interest of Goldman Sachs
-------------------------------------------------------
This notification relates to issued common stock of the Company
and is given in fulfillment of the obligations imposed by
sections 198 to 203 if the Companies Act 1985.

[British Energy] hereby inform that as at close of business on
January 8, 2004, The Goldman Sachs Group, Inc. of 85 Broad
Street, New York, NY 10004, USA, was interested, by attribution
only, in a total of 18,857,726 shares.

Of these 18,857,726 shares:

(a) The interest in 13,208,833 shares arose from the interest
held by Goldman, Sachs & Co., acting as custodian.  These shares
are, or will be, registered in the name of Goldman Sachs
Securities (Nominees), Limited.

(b) The interest in 4,819,800 shares arose from the interest
held by GS&Co. acting as custodian of 64,264 American Depositary
Receipts.  These ADRs are, or will be, held at the Depositary
Trust Company of New York.

(c) The interest in 829,093 shares arose from a beneficial
interest held by Goldman Sachs International.  These shares are,
or will be, registered at CREST in account CREPTEMP.


DAMOVO U.K.: Shakeup Could Lead to Job Losses
---------------------------------------------
Concerns over the future of jobs in Damovo, the troubled
Glasgow-based telecom services company, grew over the weekend
after news of a shake-up of its operations broke last Tuesday.

Scotland on Sunday, citing sources close to the company,
reported that Chief Operating Officer Joe Boyle had undertaken a
strategic review of the company's U.K. operations.  It is
expected a restructuring scheme outlined from the review will
include job cuts that would put in danger a total of 180
positions at Damovo's Glasgow headquarters.

Damovo was formed in 2001 after private equity firm Apax
Partners bought the enterprise division of Swedish mobile phone
maker Ericsson for GBP263 million, but hit trouble when
corporate spending tumbled as stock markets crashed.   Its U.K.
arm made pre-tax losses of GBP59.4 million on revenues of
GBP77.9 million in the nine months to January 2002, the most
recent set of accounts to be filed at Companies House, the
report said.

Credit rating agencies, including Experian and Dun & Bradstreet,
have downgraded ratings for the U.K. arm.  Last October,
Experian put the business' chances of success at just 6% and
labeled it a "maximum risk company," while D&B recently
downgraded ratings to "poor."

CONTACT:  DAMOVO UK LIMITED
          Broadlands
          Langhurstwood Road
          Horsham
          West Sussex
          RH12 4QP
          U.K.
          Phone: +44 (0)870 243 3040
          Paul Renucci, Managing Director


HOLLINGER INC.: May Opt to Sell Business in One Piece
-----------------------------------------------------
Prospective bidders for The Telegraph Group may be disappointed
to learn in the future Hollinger International's flagship U.K.
newspaper will not be sold as a separate business.

A Hollinger executive expects Lazard Brothers, who is currently
reviewing the assets controlled by Hollinger, to advise that the
firm disposes assets in whole to avoid facing huge tax
liabilities.

"Because of the price at which we bought them, it's very
difficult to break the business up without incurring a
significant tax charge," he said, according to The Telegraph.

A successful bid for the whole of Hollinger International and
Hollinger Inc, its parent, might cost around US$2 billion
(GBP1.1 billion).  The Telegraph Group, as a separate business,
is valued at between GBP400 million and GBP500 million.

Associated Newspapers, the owner of the Daily Mail, and Richard
Desmond, who owns the Express, are understood interested in
acquiring the Telegraph.


LEEDS UNITED: Possible Buyers Not Interested in Shares
------------------------------------------------------
Equity holders in Leeds United appear unlikely to get anything
from the rescue of the Premier League football club as talks
with potential buyers progress.

Leeds United said it is continuing talks about selling its
business and assets or receiving capital injection, but none of
its possible buyers want to buy its shares.

"...none of these interested parties' proposals contemplates an
offer for the company's shares," the club said in a brief
statement.

Leeds has until Monday to come up with a rescue plan to enable
it to survive, although it may ask for an extension until later
in the season.  Should it fail to strike a rescue plan in the
end, the club could go in the record as the first Premier League
football club to go into administration.

The club has net debt of GBP78 million and negative
shareholders' equity of GBP44.3 million.

Interested in helping the club is its former deputy chairman
Allan Leighton, who is now chairman of Royal Mail.


ROYAL MAIL: Special Privileges Under Review
-------------------------------------------
Postcomm published Monday a consultation document that examines
the special privileges enjoyed by Royal Mail and considers
whether they distort competition in mail services.

Royal Mail's special privileges include exemption from VAT and
special parking privileges.  The exemptions date from the time
when Royal Mail was the sole provider of postal services.

Postcomm's document considers whether Royal Mail's special
privileges are necessary to provide a universal service, or
distort competition in postal services.

Postcomm has no powers to make changes itself to any of these
statutory privileges, but if it considers that a change is
needed it will make recommendations to the appropriate
government department or authority.  Any changes may require
appropriate legislation.

Of all the privileges Royal Mail enjoys, Postcomm considers
Royal Mail's VAT exemption to be the most contentious, a view
supported by postal operators who argue that this privilege
materially distorts competition.*

The document reads: "Postcomm's provisional view is that VAT
exemption is not necessary for the provision of a universal
postal service, distorts competition in a significant part of
the U.K. postal services market and should be reviewed as a
priority, with the aim of leveling the playing field."

                              *****

Royal Mail does not charge VAT on postal services, yet other
postal operators are required to charge VAT at 17.5%.  While
this has little effect on businesses that can reclaim VAT, many
major mailers -- such as providers of financial services and
charities -- are not able to reclaim VAT and this puts
competitors to Royal Mail at a disadvantage.

Royal Mail's special privileges, reviewed by Postcomm in this
document are:

(a) Exemption from VAT

(b) Exemption from parking restrictions

(c) Power to require ships or aircraft to carry mailbags

(d) Compulsory purchase of land needed in connection with the
    universal service provision

(e) Immunity from prosecution for carrying prohibited items in
    the mail

(f) Exemption from harbor charges

(g) Not classified as a common carrier

(h) Fast clearance of overseas mail by Customs and Excise.

The consultation document, A Review of Royal Mail's Special
Privileges is published on Postcomm's website,
http://www.postcomm.gov.uk. Printed copies will be available
shortly from Postcomm at Hercules House, 6 Hercules Road, London
SE1 7DB.  Responses are requested by 12 April 2004.

*A review of the U.K. postal market, also published by Postcomm,
says that new entrants face a number of legal and economic
barriers to entry, including Royal Mail's VAT exemption and
customs and traffic privileges.  The document, The U.K. Letters
Market 2000-2003 -- a Market Report, and a press notice, can be
found on Postcomm's website.

CONTACT:  Chris Webb
          Phone: 020 7593 2114
          Mobile: 07779 635881
          E-mail: chris.webb@psc.gov.uk

          Joseph Bonner
          Phone: 020 7593 2116
          Mobile: 07773 329902
          E-mail: joseph.bonner@psc.gov.uk

          Jonathan Rooper
          Phone: 020 7766 1210
          Mobile: 07740 099868
          E-mail: jonathan.rooper@cardewchancery.com


ROYAL MAIL: Moves to Improve Marketing Structure
------------------------------------------------
Royal Mail's Marketing Director Paul Rich is introducing a new
structure, to align his team more closely with the company's
sales force.  The move is to enable more effective and customer-
driven development of products and services as the company's
marketplaces become increasingly competitive.

The review of Royal Mail's marketing structure has led to five
new areas covering products, sectors, brand, commercial policy
plus pricing and value added solutions.  A director for each
area will report directly to Rich.

The new team will be responsible for all Royal Mail branded
products and services, including special stamps and philatelic
products, international services and logistics where marketing
was previously carried out within separate business units.

Paul Rich said: "The new roles provide a renewed focus for us
and bring all Royal Mail branded products and services under one
marketing roof.  This will give us a far more cohesive,
integrated and customer-focused approach.  This is all part of
competing effectively by making sure that we are developing and
selling products and services that precisely match our
customers' needs and offer best value in our marketplaces."

Appointments to Rich's direct report roles are likely to be made
this month with the full new structure in place by the end of
the current financial year.

The review will reduce the number of marketing roles within
Royal Mail by between 40 and 50% and is being carried out at the
same time as a voluntary redundancy exercise for managers across
the Royal Mail Group.  There are currently 360 marketing roles
in Royal Mail.  The company is aiming to manage all job
reductions through voluntary means.

CONTACT:  ROYAL MAIL
          Phone: 020 7250 2468 (24 hours)
          148 Old Street
          London
          EC1V 9HQ
          Homepage: http://www.royalmail.com


SSG: Troubles Spread to other Business Operations
-------------------------------------------------
The collapse of salmon firm SSG is feared likely to leave
Shetland Development Trust, which backed its purchase of fish
feed in May, at a loss for GBP3.5 million, according to Scotland
on Sunday.

SSG called in receivers Ernst & Young after falling victim to
the crisis in the region's fish farming industry.  Its failure
follows closely that of Hennover Salmon, a Norwegian-owned
salmon farm.

SSG's troubles is thought likely to affect around 16 locally
owned fish farms that SSG contracts to grow fish and which are
thought to be owed money.

Neil Grant, general manager of the trust, confirmed it had
offered SSG the credit guarantee arrangement but would not
comment on the amount of money owed to the trust, according to
the report.

Shetland Development Trust's committee is made up of Shetland
councilors and independent business people.  The trust invests
on a commercial basis to support businesses in the area and is
funded by income from the oil industry.


                            *********


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 2004.  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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