this is from Reuters by way of Yahoo Finance UK & Ireland, 4/30:
But shares in British telecoms equipment maker Marconi (London: MONI.L - news) leapt as much as 28 percent higher on speculation a deal to restructure its debts with its bankers was on the cards, dealers said.
Analysts said forecast-beating results from fibre optic maker Bookham Technology (London: BHM.L - news) had also helped. Marconi closed 14.6 percent stronger at 9.8p and Bookham 6.2 percent firmer.
and this from FT,4/30:
Marconi execs have no plans to resign
Company denies reports of board ultimatum By Friedel Rother FT Investor, Nerma Jelacic FT.com, 16:43 BST Apr 29, 2002
LONDON (FT Investor) - Troubled UK telecom equipment maker Marconi on Monday denied reports that senior executives had been told to either produce a clear rescue plan or creditors would take over.
An article in the Observer claimed that Derek Bonham, Marconi's [MONI, News, Chart, Research] chairman, Mike Parton, the chief executive, and Steve Hare, the finance director, could be axed by a banking syndicate to which the company owes more than £2.5bn. Bondholders are owed £1.8bn.
However, Marconi [MONI, News, Chart, Research] told FT Investor that negotiations with its banks were continuing in a "broadly constructive" manner.
"There has never been any discussions between Marconi and its banks or bondholders about changes to the existing management team, except around the proposed addition of an executive - with experience of complex financial restructuring - to strengthen the existing team," Marconi added.
It also said nobody on its management team had any plans to resign.
Marconi shares ended up 14.8 per cent at 8.6p in London, following a trading statement last week. They have plummeted in the past two years, following a series of profit warnings and a downturn in the telecoms sector. See more on latest Marconi trading statement
The Observer said the banks' ultimatum was provoked by the lack of drive from Marconi's directors to come up with clear and concise proposals to ease the group's debt burden. The newspaper also claimed that confidence in Mr Bonham's team had hit rock bottom.
The paper quoted sources as saying that unless the management team came up with a rescue plan there would be changes at the top of Marconi. Communication between the two sides has become strained and, at times, impossible, it claimed.
It has already been reported that the banks are keen to appoint a debt restructuring specialist to the board.
The Observer mentioned Martin Taylor, former chief executive of Barclays, and David James, who is preparing a rescue package for Railtrack, as possible contenders. See more on Marconi story here
Mr James said that neither Marconi nor its banks had approached him, but that he would listen to any ideas that were put before him. |
