John Mayo, ex-finance chief of struggling British telecoms equipment maker Marconi, is suing his former employer over the value of his company pension fund.

What does he want, blood?

Marconi employee

Mr Mayo is reported to be claiming £1.6m ($2.25m) from Marconi to make up a shortfall in his pension plan that emerged last month when he asked for the funds to be transferred into a separate scheme.

The sum includes about £640,000 to cover a tax bill arising from the transfer.

The case has sparked anger at the firm, which came close to collapse after an ill-fated move into telecoms markets - led by Mr Mayo and former Marconi chief executive Lord Simpson - left it with about £3bn in debts.

Outrage

"I don't understand how (Mr Mayo) can turn round and sue the company over his pension," one Marconi employee told BBC News Online.

"What does he want, blood?"

Mr Mayo, who stepped down as Marconi's finance director after the firm issued a shock profits warning in July last year, picked up a £1m severance payment on leaving.

Marconi, which had prospered in its previous incarnation as engineering and defence giant GEC, is currently negotiating a debt restructuring deal which will see creditors take control of the company.

The deal, which will leave investors with just 0.5% of Marconi's shares, was agreed in principle in August.

Riches to rags

The telecoms debacle has in any case wiped out Marconi's market value.

The firm's shares were flat at 2.5p on Friday, down from a peak of over £12 in September 2000.

Marconi has declined to comment until it has reviewed Mr Mayo's claim.

"Until our lawyers have reached a conclusion, it's very difficult for us to say anything," a company spokesman said.