Mayo buys shares before exit
John Mayo, chief executive-designate at Marconi, was forced to resign on Friday - but not before he bought an extra 200,000 shares in the embattled telecoms group.
Mayo, who is a former finance director at the company, bought the shares to shore up investor confidence following a dip in the company’s share price by more than 50%.
Marconi’s new FD Steve Hare also indicated his support by buying 25,000 shares at 113.25p each.
The fresh round of buying took Mayo’s holding in Marconi to around 360,000 shares valued (5pm Friday) at £374,000 following a further fall to 104p.
According to Marconi on Wednesday operating profits would be halved in the years to March 2002.
Mayo was expected to take on the post of chief executive succeeding Lord George Simpson. But despite Mayo’s departure, large investors are expected to press for a change at the top following a disastrous week for the company. The company issued a profits warning on Wednesday and announced that 4,000 jobs would go worldwide.
Links
Marconi directors buy up stock