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25/10/2005
Marconi and Ericsson announce £1.2bn deal
Telecommunications equipment firm Marconi has announced plans to sell the bulk of its assets and name to Swedish firm Ericsson in a deal worth £1.2 billion.
Under the new deal, Marconi will sell its telecommunications equipment and international services businesses – representing about 75% of its overall turnover - to Ericsson. The remainder of the company will continue as a services provider to telecommunications operators and will be renamed Telent.
It is believed that Marconi will retain 2,000 of its 9,000 staff to work at Telent, while around 6,670 staff will be transferred to Ericsson.
However, the Swedish company warned that around 1,000 jobs could be lost due to the takeover.
Marconi’s future had been in serious doubt since it failed to secure a major contract from BT, the company’s biggest customer.
BT did not select Marconi to work on a £10 billion upgrade of its network, forcing the firm to conduct a strategic review of the business, leading to the closure of the company’s Edge Lane plant in Liverpool.
Ericsson said that the deal would help to meet the increasing demand for mobile and fixed broadband access, around the world. The company said that the upgrade to broadband would lead to a “massive increase in data traffic”, which would require the transmission capacity in telecom networks to be “dramatically increased”.
Ericsson said that Marconi’s competitive transmission offerings, especially in optical systems, would help growth.
Carl-Henric Svanberg, President and CEO of Ericsson, said: “The acquisition of the Marconi businesses has a compelling strategic logic and is a robust financial case. As fixed and mobile services converge, our customers will substantially benefit from this powerful combination.”
(KMcA/SP)
Under the new deal, Marconi will sell its telecommunications equipment and international services businesses – representing about 75% of its overall turnover - to Ericsson. The remainder of the company will continue as a services provider to telecommunications operators and will be renamed Telent.
It is believed that Marconi will retain 2,000 of its 9,000 staff to work at Telent, while around 6,670 staff will be transferred to Ericsson.
However, the Swedish company warned that around 1,000 jobs could be lost due to the takeover.
Marconi’s future had been in serious doubt since it failed to secure a major contract from BT, the company’s biggest customer.
BT did not select Marconi to work on a £10 billion upgrade of its network, forcing the firm to conduct a strategic review of the business, leading to the closure of the company’s Edge Lane plant in Liverpool.
Ericsson said that the deal would help to meet the increasing demand for mobile and fixed broadband access, around the world. The company said that the upgrade to broadband would lead to a “massive increase in data traffic”, which would require the transmission capacity in telecom networks to be “dramatically increased”.
Ericsson said that Marconi’s competitive transmission offerings, especially in optical systems, would help growth.
Carl-Henric Svanberg, President and CEO of Ericsson, said: “The acquisition of the Marconi businesses has a compelling strategic logic and is a robust financial case. As fixed and mobile services converge, our customers will substantially benefit from this powerful combination.”
(KMcA/SP)
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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.
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Marconi remains under intense pressure
Marconi’s latest financial figures have revealed a picture of declining sales for the troubled telecommunications technology company. The firm, which has recently undergone a radical and highly complex restructuring programme, continues to face what was described as a “very tough” set of market conditions.
Marconi remains under intense pressure
Marconi’s latest financial figures have revealed a picture of declining sales for the troubled telecommunications technology company. The firm, which has recently undergone a radical and highly complex restructuring programme, continues to face what was described as a “very tough” set of market conditions.
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UK Teen Sells App For 'Dozens Of Millions'
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16 October 2007
Postal Strike Called Off
A planned strike by postal workers for tomorrow has been called off as the Communications Workers' Union considers a deal offered by Royal Mail. The union executive is considering the offer of a 6.9% pay rise, and, if accepted, it will be put to a ballot of the union's 130,000 members.
Postal Strike Called Off
A planned strike by postal workers for tomorrow has been called off as the Communications Workers' Union considers a deal offered by Royal Mail. The union executive is considering the offer of a 6.9% pay rise, and, if accepted, it will be put to a ballot of the union's 130,000 members.
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