Cisco chief rules out rescue bid for Marconi

NEWS Cisco has ruled out a move to bail out UK telecoms equipment manufacturer Marconi claiming its technology is 'out of date'. Financial analysts had hoped the US giant would bail out its rival but Cisco UK director Phil Smith said he wasn't interested, claiming the troubled UK company had slipped behind the times by building products based on the SDH protocol as opposed to IP standards. He added that demand for Marconi's products will disappear as time goes on. Marconi has had a turbulent couple of months after reporting declining sales since December.
It finally issued a profits warning on 4 July. The company declined to warn on profits earlier in the year, despite reports that in May many of its workers were allowed to sunbathe during working hours due to lack of work. The July warning cost CEO Jon Mayo his job and sparked concerns that he would use the Marconi AGM to speak out against the board. Chairman Sir Roger Hurn is now under pressure to go from fellow board members who want newly appointed CEO George Simpson to replace him.