Marconi to update on debt reduction

Plans for debt reduction are expected to dominate Marconi's third-quarter trading statement on Tuesday.

Disposals have helped prune the group's debts, which stood at €5.6bn in November last year.

Pending completion of recent disposals , Marconi has already exceeded its full year £€812m disposal proceeds target.

Analysts believe the group is capable of meeting its March 2002 debt target of between €4.3bn and €5.1bn.

Marconi is expected to report declining sales from its core business, since the seasonality of demand means that the third quarter is typically weaker than the second.

Andrew Fisher, of Gerrard stockbrokers, said: "Looking ahead, while some sort of guidance for the final quarter would be most welcome, we do not expect much detail given the precedent set in previous trading statements by the new management of refraining from making any forward looking comments on trading."

Investors will also be keen to hear about the progress being made with the web phone rollout, which is due to commence in three months time.