Marconi set for break-up after BT snub

MARCONI chiefs may consider breaking up the group instead of pushing for a sale to a single buyer, Financial Mail has established.

The company announced last week that 800 jobs would go, including the entire research and development department, in the wake of the news that BT had decided not use any Marconi equipment in its £10bn upgrade.

Marconi will reveal how much the job cuts will cost the company when it reports annual profits of about £25m on May 17.

Chief executive Mike Parton has also said the company would be reorganised into four divisions covering its different products.

One City source said: 'Mike has cut out the BT business from the heart of the company and this will make it easier for a buyer to assess the company. It would also make a break-up possible.'