Stock in troubled British telecom equipment group Marconi collapsed another 17 per cent today, as brokers advised clients to dump the stock and unions fulminated over a mooted pay-off for ousted directors.
Marconi shares, which little more than a year ago fetched £12.50 pence, were on offer at 43.75p, down 17.4 per cent, a day after the company issued another profit warning and announced the shock departure of its chief executive and chairman.
City brokers responded to the latest profit warning, which followed an earlier alert in July, by giving the stock the thumbs down. One suggested Marconi shares could be worth as little as 30p.
Union officials meanwhile were furious that top directors were reportedly due for handsome pay-offs, while another 2,000 Marconi employees were facing the axe.
Press reports suggested that outgoing chief executive Mr George Simpson could get a £1-million sterling golden handshake while chairman Mr Roger Hurn could get £300,000, despite the dismal performance by the company this year.
"If any of our members performed so badly, they would be rewarded with the sack," said a spokesman for the Manufacturing Science and Finance union.
"There appears to be one rule for executives and another for everyone else." He added.
A Marconi spokesman strongly denied the reported figures, calling them "irresponsible" as pay-off discussions "have not begun yet."
The group has already laid off 8,000 staff, and said yesterday that another 2,000 would have to go - in addition to Hurn and Simpson.
AFP