Marconi may be sold to Chinese partners

MARCONI is planning a review that could lead to its sale in the wake of last week's failure by the telecoms equipment maker to win new business from BT.

The company, whose stock market value fell by 40% last week, is poised to appoint advisers to conduct the review.

If a 'for sale' sign is hoisted, Marconi's Chinese partners, Huawei and ZTE, are early favourites as buyers.

The move follows the news that BT will not buy any equipment for its £10bn 21st Century network project from the company-Marconi said it was unable to meet the price the telecoms giant demanded.

The blow is not life-threatening to Marconi - it still has three years to run of a £90m-ayear contract with BT and £300m in the bank - but without BT's backing, Marconi's long-term strategy is in ruins. BT's decision wiped £500m off Marconi's value.

One City source said: 'There will be no fire sale but, clearly, consolidation is on the cards.'