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To: maceng2 who wrote (62)	10/8/2002 8:28:29 PM
From: maceng2	Read Replies (1) \| Respond to of 1417

Marconi chairman apologises to shareholders ananova.com The interim boss of Marconi has apologised to shareholders as he pushed through a deal that has left them with just 0.5% of the company. Derek Bonham has also told them there's no point in suing the management, who left the company with substantial payoffs after saddling it with huge debts. Nor can they sue the financial advisors behind the raft of acquisitions it made over the past years - estimated to be worth £5.5 billion - that led to its near failure. Mr Bonham said in his speech to the annual general meeting that he was "deeply disappointed for not being able to rescue (the company's) share price for you." He expressed "sincere regret" for the substantial losses that shareholders suffered over the past months. But he stressed that debt-equity swap was the "best available option" left for the company and not pursuing it will leave the board with no other alternative but to place the business into administration. "We looked at a host of options. We tried not to leave any stones unturned," he said, adding the agreement was the "only viable alternative." The restructuring will begin in January, enabling Marconi's shares to resume trading by the end of that month. Mr Bonham warned shareholders against suing both the current and past board directors, including former chief executive Lord Simpson and finance chief John Mayo, saying such an effort will just end up in vain. Simpson and Mayo, who left last year, were being blamed by shareholders for pushing the telecoms equipment maker to the brink of collapse. Having consulted lawyers in the UK and the US, Mr Bonham said he was told that "impropriety or negligence" on the part of the board and management will be difficult to prove. Neither could the group chase the financial advisers behind the raft of acquisitions it made over the past years - estimated to be worth £5.5 billion - that led to its near failure. As part of the debt restructuring deal, it will be left with about £635 million in cash and £300 million in debt, down from £4 billion previously.