Marconi has confirmed it is holding talks with rivals over the possible sale of the telecoms equipment maker.

Shares in the UK firm raced ahead this morning up 44.75p (17 per cent) at 311.75p.

"These options include, amongst a range of alternatives, discussions with third parties about potential business combinations.

"The discussions are at a preliminary stage and there can be no assurance that an offer will ultimately take place."

The statement was issued in response to a report in The Sunday Times which said Marconi had begun talks with Chinese telecoms equipment maker Huawei Technologies in a deal valuing the company at more than £600m.

Last week Marconi announced increased losses as it looks to cover restructuring costs after failing to secure a slice of a major £10bn contract to supply gear for BT's next-generation 21st Century Network (21CN) project.

Huawei, incidentally, was one of eight foreign firms selected as suppliers by BT. ®

Rlated stories

Marconi revs flat
MPs accuse BT of 'exploiting low wages in China'
DTI reaches out to struggling Marconi
Marconi culls 800 jobs
Unions hold powwow with Marconi over job fears
Marconi mulls bleak future following BT bombshell
Job fears haunt Marconi
Marconi savaged after failure to win BT 21CN deal