JUN 01] MARCONI NEWS
Cisco Poised For Marconi Takeover
Sunday newspaper has reported that US IT giant, Cisco, is poised
to make a takeover bid for Marconi.
to the Sunday Business paper Cisco is considering a £12billion
($17billion) takeover of the UK telecoms equipment company to
boost its presence in Europe.
which has bases in Coventry in Stoke and Foleshill, recently
announced a major restructuring programme which involves making
3,000 people redundant worldwide.
Marconi's annual results announced last month showed an 8%
profit increase, its share price has continued to be under
pressure. On the London Stock Exchange shares closed on Friday
down 4% at 338 from a 52-week high of 1250.
the American IT stocks index NASDAQ the share price suffered a
similar percentage fall to $10.00 down from a 52-week high of
a world leader in the internet networking field, has also been
hit by the downturn in the IT and telecoms sector. It last month
announced its first quarterly loss in eleven years.
In a report to
the US Securities and Exchange Commission Cisco revealed that it
did not predict any upturn in its market for the
newspaper report Cisco's chief executive John Chambers is said
to have told advisers to delay making an approach to Marconi
until the British company has completed its restructuring
Sunday Business report is based on "unidentified industry
sources". Marconi has so far declined to comment on the
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