MARCONI COMPANY.

Hawera Star, Volume XLVII, 17 May 1928, Page 8

MARCONI COMPANY.

PROPOSAL TO WRITE UP SHARES. IRISH ASSOCIATION DEMAND. (UNITED PRESS ASSOCIATION—BY ELECTRIC TELEGRAPH—COPYRIGHT.) (UNITED SERVICE.) LONDON, May 14. A new sensation has arisen in connection with the Marconi Company, the board considering the w.riting up of 8,250,038 shares, which were reduced to ten shillings after the extensive litigation last year, to their original value of £l, as the result of representations by the Irish Shareholders’ Association, which controls onethird of the Marconi ordinary shares. The association approved of the reduction of capital, but has since learned with amazement the extent of beam wireless profits, which are regarded as startling and sufficient to enable the restoration of the shares to their former value. The association points out that the beam was not working fully when the reduction was approved and it refused to accept proposed arrangements regarding shares of the cablewireless holding company which, it is understood, entitles Marcom ordinary shareholders to one share, whereas the debentures and preferences receive two. Th association sent a deputation to the Marconi board and presented' a virtual ultimatum. They intimated that if their demand was not conceded they would vote against the merger. The Irish shareholders state that the association is solidly united and does not mind whether it enters the merger or not. It is believed that Marconi officials, during the merger negotiations, valued the ordinary shares'at about £5 owing to the beam profits, which had by no means reached the limit. The shareholders are in a strong . position If they do not get their way they will upset the company’s plans.