News concerning (NASDAQ:MONI)....
Investors shrug off Marconi <MONI.L> takeover talk
LONDON, July 9 (Reuters) - Takeover talk failed on Monday to
revive the share price of British telecoms equipment maker
Marconi <MONI.L>, which has lost nearly 60 percent of its value
since issuing a profit warning last week.
The stock, which fetched 245p on the eve of Wednesday's
warning, was quoted at around 108p before opening trade on the
London stock market -- only a few pence higher than its Friday
close of 104-1/2p despite a weekend of takeover speculation.
Chief Executive George Simpson told Sunday newspapers that
the plunge in Marconi's stock made the company vulnerable to a
takeover. Marconi also announced that deputy chief executive
John Mayo, Simpson's designated successor, had quit.
But some telecoms analysts have played down the immediate
prospect of a takeover of Marconi, given that potential suitors
were also grappling with a dramatic slowdown in the telecoms
industry and with hostile investor sentiment.
Cisco Systems Inc <CSCO.O>, the world's largest maker of
Internet networking gear, and French equipment maker Alcatel
<CGEP.PA> have been cited as possible bidders for Marconi, but
analysts are divided over whether either could mount a takeover.
((London newsroom 44 20 7542 7717, fax 44 20 7583 3769,
mark.bendeich@reuters.com))
REUTERS
Also
B: Marconi Deputy Chief Resigns
Jul 09, 2001 (ComputerWire via COMTEX) -- Struggling network equipment maker
Marconi Plc announced on Friday that its deputy chief executive John Mayo has
resigned.
The London, UK-based company made the announcement after its share price halved
on Thursday following a drastically revised earnings forecast on Wednesday. The
company, which blamed a slowdown in capital expenditure by European telcos,
predicted that its profits for the year would halve and its sales would be
reduced by 15%.
ComputerWire wrote last week about the possibility of investors demanding a
change of management. Mayo, and Marconi CEO George Simpson were once feted as
wonderboys for transforming Marconi into a glamour stock, but have since been
regarded in a totally different light.
George Simpson will remain as chief executive at the company. In a statement on
Friday he said: "In the changed circumstances we are committed to the task of
restoring confidence in a company that we believe has a strong future. The speed
and severity of the downturn in the markets clearly requires firm action and the
solutions will not emerge overnight."
Marconi also noted on Friday that that it has invited its shareholders to vote
on possible changes to its share options plans. These would have included
offering option holders the choice of exchanging their existing options for
newer options at a lower price, to reincentivise option holders in the wake of
the slide in the company's share price. However, the company has decided to pull
this resolution from its upcoming AGM, because it is concerned about investors'
reaction to the plan and because given the current state of the firm's shares,
it is not clear how much of an incentive the scheme would actually be.
Yesterday the firm's shares closed at 104.5 pence ($1.47). At the start of last
week, Marconi's shares were 262.25 pence ($3.70), and its 52 week high was 1276
pence ($18.01)
Network Briefing Daily: Issue , July 9, 2001
:=) Gary Swancey
