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27/09/2001
Marconi shares hit all-time low as company rated “worthless”
Shares in beleaguered telecoms equipment manufacturer Marconi, have fallen to an all-time low after City analysts rated the company’s value as ‘worthless’.
Investors in the company have seen Marconi’s share price tumble to 18p, from a sometime high of £12.50, and investment bank Dresdner Kleinwort Wasserstein has now said that the company is ‘unlikely to survive’ unless rescued by a strategic backer.
Concerns in the company’s prospects are based on Marconi’s current burden of debt, which is said to have reached £4.4 billion. In addition, the current downward trend in the telecoms market is unlikely to see the company successfully meet even the interest payments on such an amount, let alone mount a successful revival of economic fortunes.
Some progress was made in minimising the debt load when Marconi sold a 1.5 % stake in French media firm Lagardere for £43.2 million, and the company’s newly appointed chief executive, Mike Parton, has revealed details of a ‘strategic plan’ which will involve further assert sales, in addition to factory closures and job cuts. Marconi has also recently signed a deal to boost bandwidth for US telecoms consortium Iris.
However, a spokesperson for Dresdner Kleinwort Wasserstein commented that Marconi was unlikely to see profitable market conditions until 2003, and added: “The central question for investors of Marconi ought to centre around the salvage value under new ownership rather than if the company can return to positive cash flow on its own.” (CL)
Investors in the company have seen Marconi’s share price tumble to 18p, from a sometime high of £12.50, and investment bank Dresdner Kleinwort Wasserstein has now said that the company is ‘unlikely to survive’ unless rescued by a strategic backer.
Concerns in the company’s prospects are based on Marconi’s current burden of debt, which is said to have reached £4.4 billion. In addition, the current downward trend in the telecoms market is unlikely to see the company successfully meet even the interest payments on such an amount, let alone mount a successful revival of economic fortunes.
Some progress was made in minimising the debt load when Marconi sold a 1.5 % stake in French media firm Lagardere for £43.2 million, and the company’s newly appointed chief executive, Mike Parton, has revealed details of a ‘strategic plan’ which will involve further assert sales, in addition to factory closures and job cuts. Marconi has also recently signed a deal to boost bandwidth for US telecoms consortium Iris.
However, a spokesperson for Dresdner Kleinwort Wasserstein commented that Marconi was unlikely to see profitable market conditions until 2003, and added: “The central question for investors of Marconi ought to centre around the salvage value under new ownership rather than if the company can return to positive cash flow on its own.” (CL)
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06 September 2001
Shares in mired Marconi tumble
Shares in crisis-hit telecoms equipment maker Marconi, have slumped 28 per cent to close at just 38 pence, wiping £400m off the firm's share value in one day. The FTSE 100 company has now lost 95 per cent of its value since the end of last year.
Shares in mired Marconi tumble
Shares in crisis-hit telecoms equipment maker Marconi, have slumped 28 per cent to close at just 38 pence, wiping £400m off the firm's share value in one day. The FTSE 100 company has now lost 95 per cent of its value since the end of last year.
11 September 2001
New hope for Marconi as shares rise
Shares in UK telecoms equipment maker Marconi have risen by 14 per cent amidst renewed hopes that the company may survive its current debt of £4.5 billion. The hopes were raised on Monday after several banks agreed to extend their credit lines to the firm.
New hope for Marconi as shares rise
Shares in UK telecoms equipment maker Marconi have risen by 14 per cent amidst renewed hopes that the company may survive its current debt of £4.5 billion. The hopes were raised on Monday after several banks agreed to extend their credit lines to the firm.
14 September 2001
Union leaders hold talks with Marconi
Union leaders are to hold talks with Marconi over the company’s plan to cut 2,000 jobs from its UK workforce. Some union officials have warned strike action could be called over the way the telecoms firm announced the cuts last week. The news follows the company’s relegation from the FTSE 100 index of leading listed UK firms.
Union leaders hold talks with Marconi
Union leaders are to hold talks with Marconi over the company’s plan to cut 2,000 jobs from its UK workforce. Some union officials have warned strike action could be called over the way the telecoms firm announced the cuts last week. The news follows the company’s relegation from the FTSE 100 index of leading listed UK firms.
15 January 2002
Marconi could lay off 1,000 UK workers
Beleaguered telecoms manufacturer Marconi is to initiate a restructuring review that could see the company cut 1,000 jobs throughout its UK operations.
Marconi could lay off 1,000 UK workers
Beleaguered telecoms manufacturer Marconi is to initiate a restructuring review that could see the company cut 1,000 jobs throughout its UK operations.
05 September 2001
Marconi shareholders furious at pay-off for departing CEO
Shareholders at Marconi have expressed fury at a possible £1 million pay-off to the departing chief executive of the troubled UK telecoms equipment manufacturer. Marconi shocked the markets on Tuesday by announcing a further 2,000 job cuts on top of the 8,000 already announced earlier this year.
Marconi shareholders furious at pay-off for departing CEO
Shareholders at Marconi have expressed fury at a possible £1 million pay-off to the departing chief executive of the troubled UK telecoms equipment manufacturer. Marconi shocked the markets on Tuesday by announcing a further 2,000 job cuts on top of the 8,000 already announced earlier this year.
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