Troubled Midlands telecoms group Marconi will not be broken up - despite its failure to win any work on BT's 21 st- century network programme.
BT's decision could cost up to 3,000 jobs, and 450 are already expected to go at Marconi's facilities in Coventry.
However, chief executive Mike Parton yesterday played down speculation that Marconi's recent restructuring moves are a clear signal that the embattled group has effectively hung out the 'For Sale' sign.
"The way we've organised the company has not been done to break up the company, that is not part of our plan," Mr Parton said following the release of full-year results.
Marconi, one of BT's main equipment suppliers, shocked the market three weeks ago when it was left off BT's list of preferred equipment for the £10 billion upgrade of its telecoms network.
Mr Parton's response to BT's snub was to slash 800 jobs and to split the group into four more clearly defined units.
Both of these moves fuelled speculation that Marconi would either be broken up, or sold to a trade buyer.
However, Mr Parton declined to say whether he sees Marconi's future as a stand-alone entity or as part of a bigger telecoms equipment group.
Many analysts said the lesson of the BT debacle, where Marconi was undercut by Sweden's Ericsson, was that size was the key to survival in an increasingly cutthroat telecoms equipment market.
"I can't run through the strategic options and discuss them," Mr Parton said. He then went on to defend himself against criticism that he and fellow directors have profited greatly from a generous share-option scheme at the same time as Marconi was losing a key piece of business with its biggest and most important customer.
Since last August the chief executive has cashed share options valued at £6.5 million.
Marconi said it did not anticipate further job losses beyond the 800 already indicated.
The firm, which laid off thousands of employees and shed assets as it emerged out of the previous downturn, said it expected about £50 million of annualised cost savings from its latest job cuts, as well as other initiatives such as outsourcing manufacturing to lower-cost countries.
Marconi expects the restructuring to cost around £55 million, of which about £45 million is expected to be incurred in the current financial year. Group operating loss after share options, goodwill amortisation and exceptional items for the fourth quarter narrowed to £15 million from a loss of £21 million in the previous quarter. Shares closed up 41/2p at 274p.