All options open after Marconi blow

Telecoms equipment group Marconi said today it was considering “all strategic options” in the wake of its failure to land a major contract from BT.

The statement will heighten speculation that the group could put itself up for sale following the BT blow that wiped £500m (€737.3m) from its value last week.

Marconi added that it expected to announce the outcome of a headcount review “shortly” but did not provide further details.

Union leaders fear as many as 2,000 jobs could be lost as a result of BT’s decision to award eight of Marconi’s rivals work to equip a £10bn (€14.7bn) overhaul of its network.

Marconi, which has 30% of existing business with BT, said today: “The company clearly recognises the need to refocus its business in the light of BT’s decision and recent trends in the global telecoms equipment market.

“The board will continue therefore to pursue all strategic options with the objective of maximising shareholder value.”