Marconi shareholders may be left owning less than one per cent of the fallen telecoms giant once it restructures its debts.
According to the Financial Times, the terms of a rescue deal are likely to see the banks and bondholders gaining complete control of the telecoms equipment maker.
Marconi warned in June that the survival package being thrashed out would lead to a "very substantial dilution in value for existing equity holders".
The Financial Times reported that the deal represents a further blow for investors hit by the plunge in Marconi's stock price.
After topping £12.40p in September 2000, the shares plummeted to a low of 3.2p last month.
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