Marconi shares in 30% dive

Marconi has seen its market value further slashed as fears grow that the group could buckle under its debts.

More than 135 million shares changed hands as investors pushed the former GEC conglomerate down to just 17p - a fall of 30%.

The slide means Marconi has a market value of less than £480m, a fraction of the £4.4bn debt the company owes.

At the peak of the tech boom last year, the group enjoyed a market value of £30bn - 60 times higher than today.

Analysts say shareholders are continuing to react to a research note earlier this week from Dresdner Kleinwort Wasserstein.

The City broker says Marconi's shares are worth between zero to 10p - meaning the group is effectively worthless.

It added: "Marconi is unlikely to survive unless a rescue package is provided by a strategic backer or a hostile buyer in the imminent future."

There are also fears that the uncertainty caused by the terror attacks in the US may make it harder for Marconi to sell off non-core assets.

The group wants to cut its debt to between £2.7bn to £3.2bn by March next year through a disposal programme.