MARCONI STARTLER

Sun (Auckland), Volume II, Issue 355, 16 May 1928, Page 11

MARCONI STARTLER

WRITING UP SHARES IRISH STOCKHOLDERS MOVE AMAZED AT BEAM PROFITS (United P.A.—By Telegraph — Copyright) (United Service) LONDON, Tuesday. The “Star” says there is a new sensation in connection with the Marconi Company. The board is considering writing up the 3,250,038 ordinary shares which were reduced to 10s after the extensive litigation of last year to their original value of £l. This is a result of representations made by the Irish Shareholders’ Association, which controls one-third of Marconi's ordinary shares. The association approved the reduction in the capital, but has since learned with amazement the extent of the profits from the beam wireless service, which it regards as startling, and as sufficient to enable the restoration of the shares to their former value. The association points out that the beam service was not working fully when the reduction was approved. ARRANGEMENT REFUSED The Irish association has refused to accept a proposed arrangement regarding the shares in the Cables-Wire-less Holding Company, which it is understood entitles the holders of Marconi ordinary shares to one share, whereas the debenture and preference shareholders are to receive two. The association sent a deputation to the Marconi board and presented a virtual ultimatum. It intimated that if its demands are not conceded it will vote against the merger. “SOLIDLY UNITED” One Irish shareholder states that the association is solidly united and does not mind whether the Marconi Company enters the merger or not.^ It is believed that the Marconi officials during the merger negotiations valued their ordinary shares at about £5 owing to the profits from the beam service, which have by no means reached their limit, and this will place the shareholders in a strong position. If they do not get their way it will upset the company's plans.