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Last Updated: Sunday, 7 August 2005, 15:22 GMT 16:22 UK
Marconi 'discussing 600m buyout'
Marconi
Marconi has been struggling against its larger rivals
UK telecoms equipment firm Marconi is in talks with a Chinese rival about a possible takeover, reports suggest.

Marconi is believed to be in talks with Huawei Technologies, a group it already has a business partnership with.

A Marconi spokesman declined to comment on the reports which suggested the firm could be bought up in a 600m deal.

The news comes days after Marconi said losses had widened to 36m ($64m) from 11m a year ago in the first three months of the financial year.

The Coventry-based group added that revenues in the three months to June had fallen by 4m to 285m as sales fell and margins tightened.

Shake-up

It was the latest set of bad news for the firm which missed out on a key BT contract in May.

The group warned it would lose out on 50m when BT decided not to select it as one of eight companies to work on a 10bn upgrade of its network.

Since then the firm has been carrying out a strategic review of its options amid concerns it is too small to compete with industry heavyweights such as Ericsson and Siemens.

The review has seen it cut costs which have included axing 800 jobs and closing the group's Edge Lane plant in Liverpool where the company began life in 1903.


SEE ALSO:
Marconi losses widen as sales dip
03 Aug 05 |  Business
Marconi unions leave empty-handed
23 Jun 05 |  Merseyside
Marconi warns of 50m BT impact
17 May 05 |  Business
800 Marconi staff cut in shake-up
06 May 05 |  Business
Job losses now likely at Marconi
03 May 05 |  Business
Marconi plunges on BT deal news
28 Apr 05 |  Business
Marconi plans new 70m city base
06 Apr 05 |  West Midlands


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