Ericsson’s Marconi takeover approved

23 Dec 2005

The shareholders of UK equipment vendor Marconi have approved the sale of a large chunk of its business to Ericsson of Sweden. Ericsson agreed to purchase the bulk of Marconi’s assets in October, in a deal worth GBP1.2 billion (USD2.16 billion), including GBP700 million in pensions liabilities. Under the deal, Ericsson will acquire Marconi’s optical networks operations, the bulk of its network access business, its data networks operations and international services operations. The remaining parts of the business will continue to operate under the new company name Telent. Marconi will pay out GBP2.75 a share once the deal is complete. Every seven existing Marconi shares will be consolidated into two new Telent shares to keep the share price stable following the dividend payment. The deal is due to be completed in January 2006.

United Kingdom