Marconi is looking to improve "shareholder value"

The firm was reacting to reports saying it is in takeover talks with Huawei Technologies, a group it already has a business partnership with.

However, Marconi did not reveal the name of the other party and said talks may not result in any takeover offer.

Shares in Marconi, which had halved in April after losing out on a BT contract, closed up 15% to 307 pence.

Optical networks

"Marconi is continuing to pursue all strategic options with the objective of maximising shareholder value," the firm said in a statement.

The discussions are at a preliminary stage and there can be no assurance that an offer will ultimately take place Marconi statement Check Marconi's share price

Earlier, a Marconi spokesman had declined to comment on reports which suggested the firm could be bought up in a £600m deal.

Marconi supplies optical networks, broadband access technologies, data networks and related professional and support services.

In terms of the potential for business tie-ups, Marconi said: "The discussions are at a preliminary stage and there can be no assurance that an offer will ultimately take place."

Last week it revealed that losses had widened to £36m ($64m) from £11m a year ago in the first three months of the financial year.

The Coventry-based group added that revenues in the three months to June had fallen by £4m to £285m as sales fell and margins tightened.

Shake-up

It was the latest set of bad news for the firm which missed out on a key BT contract in April.

The group warned it would lose out on £50m when BT decided not to select it as one of eight companies to work on a £10bn upgrade of its network.

Since then the firm has been carrying out a strategic review of its options amid concerns it is too small to compete with industry heavyweights such as Ericsson and Siemens.