Milan listing for Marconi offshoot

BELEAGUERED Marconi today unveiled plans to raise cash by floating part of its wireless equipment operation on the Italian stock exchange. The group said it wanted to split off its Strategic Communications business, which increased sales by about 17% to about £300m last year and employs 4,000 across Europe.

News of the planned Milan share listing comes as the former FTSE 100 star revealed that full-year losses increased to £5.66bn compared with a £61m loss last year. Sales were down by a third to £4.6bn. Core operating losses of £463m were slightly better than forecast because of savings from a cost-cutting programme.

The company, which is in talks with its bankers and creditors to try to reschedule its £2.9bn of net debt, also officially warned existing shareholders for the first time that they faced a possible wipe-out from a debt-for-equity swap being hammered out between the firm, its banks and bondholders.

'Debt restructuring discussions could lead to a dilution of value for existing shareholders,' the company said.