MARCONI SHARES

Hokitika Guardian, 17 May 1928, Page 1

MARCONI SHARES

IRISH HOLDERS’ ULTIMATUM,

(United Press Association.—By Electric Telegraph.—Copyright.)

LONDON, May 1 1

The ‘ Star” states licit a new sensation has arisen In -connexion with Marconi’s company, the Board considering writing ii]) 3,250,038 ordinary shares, reduced to ten shillings, after extensive litigation last year, to tho original value of £l, as a result of representation hv the Irish Shareholders’ Association, controlling one-third of Martsoni’s ordinary shares. The Association approved tho reduction of capital, hut has since learned with amazement the extent of beam profits, which are regarded as startling, and sufficient to enable a restoration to the former value.

The Association, pointing out that, beam was not working fully when the reduction was approved, refused to accept a proposed arrangement regarding the shares of the cables and wireless holding company, which it is understood entitles Marconi ordinaries to one share, whereas debentuie- preferences receive two.

The Association -sent a deputation ;.() Ma I*oll i’s Board and presented a ,-irlnnl ultimatum. They intimated .hat if the demand is not- conceded, hey will vote against a merger.

An Irish shareholder states that the Association is solidly united. Its members do not mind whether thej enter tlie merger or not.

It is believed that Marconi officials, luring the merger negotiations, vailed ordinaries at about £5 owing to ioani profits, which had by no means ■one bed their limit. This places the Vssoeintion in a strong position, and f they do not get their way they will ipse the company’s plains.