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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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15 October 2001
Marconi reassures investors about debt burden
Marconi has sought to reassure investors that the company is on course to decrease its £4.3 billion debt burden. Commenting on the latest trading figures Chief Executive of Marconi Mike Parton said: "Whilst trading conditions continue to be tough, Group operating profit and cash flow in the second quarter were in line with our previous guidance.
Marconi reassures investors about debt burden
Marconi has sought to reassure investors that the company is on course to decrease its £4.3 billion debt burden. Commenting on the latest trading figures Chief Executive of Marconi Mike Parton said: "Whilst trading conditions continue to be tough, Group operating profit and cash flow in the second quarter were in line with our previous guidance.
06 May 2005
800 jobs to go at Marconi
Telecoms equipment manufacturer Marconi has announced that 800 jobs are to go in the UK. 450 jobs are expected to go at the firm’s site in Coventry and another 350 are expected to be lost in Liverpool. Marconi currently employs around 4,300 in the UK. The announcement comes after the company’s failure to secure a new contract with BT.
800 jobs to go at Marconi
Telecoms equipment manufacturer Marconi has announced that 800 jobs are to go in the UK. 450 jobs are expected to go at the firm’s site in Coventry and another 350 are expected to be lost in Liverpool. Marconi currently employs around 4,300 in the UK. The announcement comes after the company’s failure to secure a new contract with BT.
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.
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.
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