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Tuesday, 11 September, 2001, 06:52 GMT 07:52 UK
Marconi's share slide halted
Marconi 's share price has plummeted
Shares in the UK telecoms equipment maker Marconi rose 14% on Monday amidst renewed hopes that the company may survive.

The hopes were raised after several banks agreed to extend their credit lines to the beleaguered firm.

Ahead of Monday's 4p rise in its share price, market speculators had forced the price down to 29.5p, betting on its collapse.

Several analysts recommended investors to buy at this price on Monday, though some remain sceptical.

Marconi's share price has stooped from 12.50 a year ago, valuing the company at 35bn, to 33.5p on Monday in one of the most spectacular corporate failures in UK history.

FTSE relegation

Debts of almost 4.5bn continue to burden the company and some analysts have doubts about its ability to repay them.

The FTSE 100 company, which carried out a disastrous switch to telecoms from defence, is expected to be relegated on Tuesday from the index of leading UK shares.

Marconi has announced 10,000 job cuts this year.

The company's recently departed chief executive, Lord Simpson, was paid 1m.

See also:

05 Sep 01 | Business
Marconi shares collapse
05 Sep 01 | Business
Tough task ahead for Marconi duo
08 Jul 01 | Business
Marconi braced for takeover bids
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