PracticeConsultingMarconi confirms FSA investigation

Marconi confirms FSA investigation

Beleaguered telecoms equipment manufacturer Marconi has confirmed it is under investigation by the Financial Services Authority.

In a statement in a US regulatory filing of its accounts and reports (20 F) the company reported last week it was being investigated by the FSA on the events surrounding its profit warnings in July and October.

Marconi said: ‘The UK Listing Authority (UKLA) has initiated inquiries concerning the events leading up to the suspension of trading in Marconi plc’s shares on the London Stock Exchange on July 4, 2001 and Marconi plc’s trading updates of July 4, 2001 and September 4, 2001.’

‘The UKLA has requested documents and has begun to interview our employees. If the UKLA determines that we have breached its listing rules, it may issue a public censure.’

According to the Financial Times, the admission from Marconi that the FSA is interviewing employees indicates that the inquest has been stepped up from a preliminary investigation to a formal inquiry.

Yesterday, Marconi’s shares closed at 13.25p. The shares were worth over 700p at the beginning of the year.

A Marconi spokesman said that the company is ‘cooperating fully’ with the FSA inquiry but refused to comment further.

The FSA was unavailable for comment.

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