Marconi seeks £381m in Italy sell-off

MARCONI, the stricken telecoms equipment company, is to sell its Strategic Communications business for e610m (£381m).

The disposal, part of Marconi's debt-cutting drive, comprises about 85% in terms of evenue and employees of Marconi Mobile, which has around 4,000 employees. About 75% of them are based in Italy and the remainder in Germany, Turkey and Britain.

The buyer is Finmeccanica, an Italian aerospace and defence company listed on the Milan stock exchange. The Italian government holds around 32%.

Marconi Strategic Communications makes and sells technology primarily to police and military organisations worldwide, including Britain's Ministry of Defence. Sales rose 15% to e502m in the year to 31 March, generating an operating profit of e60m.