Feeds

Marconi boardroom genocide on cards

Institutional investors want blood

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

A boardroom purge is coming to Marconi as institutional investors make their anger known, claims The Guardian.

Apparently the company's chairman Sir Roger Hurn told its big investors in a private meeting that it had sped up its search for a new chief executive and a new chairman. Sir Roger should have retired last month, leaving the chairman post free for current chief exec Lord Simpson and the chief exec post free for John Mayo, former deputy chief exec.

However following the disastrously handled profit warning at the start of last month - which saw Marconi's share price halve in value overnight - John Mayo has been kicked out, Sir Roger has stayed on and shareholders have been promised that Lord Simpson will leave as soon as practicable.

The company's big investors have kept relatively quiet over their fury, allowing the recent agm to go off without major mishap. However, with Marconi threatening to be kicked out of the FTSE 100 next month, the fall from grace of one of Britain's flagship companies has made the board's positions untenable.

Sir Roger said that ideally he wanted to name a new chairman first so that the appointee can select a replacement for Lord Simpson, however it said it was going to work the other way around. Lord Simpson has presided over a share price fall from £12.50 last September to its lowest in living memory today - just 66.75p. It has fallen seven per cent since this morning.

Marconi's share price for the last year is given below (taken from Etrade.co.uk). ®

Marconi's share price over the last year

Related Stories

Moody's Blues knacker Marconi shares
Marconi agm kicks off; Simpson holds firm
Oracle aided Marconi collapse
Oracle didn't help Cisco see the precipice
Marconi drops even further; everyone suffers
Massive fall-out from Marconi share collapse

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.