MARCONI SENSATION.

New Zealand Herald, Volume LXV, Issue 19947, 16 May 1928, Page 11

MARCONI SENSATION.

IRISH SHAREHOLDERS. WRITING UP THE SHARES. DEMAND BEING CONSIDERED. PROFITS FROM BEAM SERVICE. (Received May 15, 8.25 p.m.) United Service. LONDON, May 14. The Star says there is a new sensation in connection with the Marconi Company. The board is considering writing up the 3,250,058 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. The Irish association has. refused to accept a proposed arrangement regarding the shares in the Cables-Wireless 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 no# conceded it will vote against the merger. 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 belijved 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.

CABLES AND WIRELESS. NO REPORT BY CONFERENCE. DELIBERATIONS NOT FINISHED. Australian Press Association—United Service (Received May 15, 5.5 p.m.) LONDON, May 14. The Prime Minister, Mr. Baldwin, stated in the House of Commons to-day in answer to a question that he could not inform members when the report of the Cable-Wireless Conference would be available. He said ho understood its deliberations would not conclude for some time. When the report was issued he would make a statement.

Mr. Philip Snowden, Labour member for Colne Valley, Yorkshire, asked if an assurance could be given that nothing definite would be done until the report had been received.

Mr. Baldwin said he required notice of that question. Mr. Snowden asked if there would be an opportunity for a debate. Mr. Baldwin said there would as soon as the report had been received.