Phoenix from the ashes

19 May 2003

The UK group’s new £730m enterprise value is small but not cheap. Marconi’s big discount to rival telecoms equipment makers is warranted. And pensions deficits worsen the picture.

This content is for Subscribers only

Context News

Marconi shares were relisted on the London Stock Exchange on Monday after the UK telecoms equipment manufacturer swapped most of its debts for new equity.

The shares were trading at 58 pence in afternoon dealings, affording the group an equity market capitalisation of £580m.

Marconi took on big borrowings to acquire rivals for cash during the telecoms bubble. These debts became untenable after the bubble burst and revenues shrank.

The group has retained £756m of public debt and a small amount of bilateral loans. It had £783m of gross cash at March 31.

Email a friend

Please complete the form below.

Required fields *