Marconi lines up Devaney as new chairman

Marconi is lining up a new chairman to take the helm once the restructuring of the crisis-hit telecoms equipment maker is complete.

John Devaney, until recently chairman of Exel, the logistics group, and an engineer by training, will take up the position by January if, as planned, Marconi reaches a final agreement with its banks and bondholders by then.

Derek Bonham, the current chairman, has indicated he wants to step down once the restructuring, which will see the banks and bondholders take 99.5 per cent of the company's equity, is in place. It is thought Marconi's board has not yet approved Mr Devaney's appointment and he would also need to be accepted by the company's creditors, who are owed £2.8bn. A spokesman for Marconi said: "We have no announcement to make."

When Mr Devaney's position is confirmed, Marconi can expect to be questioned about any relocation package. Marconi is already facing anger from shareholders, who have seen the value of their investments wiped out, over disclosures about relocation expenses provided for Charlie Foreman, its former director of sales.

Marconi bought two houses from Mr Foreman as it relocated him from London to Coventry, only to make him redundant three months later. The London home was sold at a £200,000 loss, while a mansion in Buckinghamshire, taken by Mr Foreman for the Coventry job, is on the market but Marconi will have to take a loss on the £1.6m, plus £150,000 stamp duty, that it paid to buy him out.