Relegation looms for troubled Marconi

NEWS Beleaguered telecoms equipment manufacturer Marconi is close to being relegated from the FTSE100. Marconi has been through a troubled few months, but a 12 per cent fall in its share price yesterday may yet carry further humiliation for the company. Yesterday's closing value of 71.5p represented a 21-year low for Marconi and was 74 per cent down on the price at the beginning of July when it announced the profit warning which proved a catalyst to many of its recent upheavals. Board room coups and shareholder dissatisfaction came to a head around the time of the company's AGM and job losses raised angry public reaction from axed staff - all the unrest has done little to convince investors of Marconi's credentials. The latest share slump was sparked by fears that the 4 July profit warning was a taste of things to come, and investors are concerned that there may be another one around the corner. Goldman Sachs added to the concerns by downgrading its expectations for the coming year to 1.9p - down from earlier predictions of 5p. Marconi, originally as GEC, was one of the first companies to join the FTSE in 1984 and relegation now from its top 100 would be the starkest indication of how far it has fallen.