Marconi, the struggling UK telecoms firm, has become the latest company in the Italian market to turn an initial public offering into a trade sale, while Meta Modena, a municipal utility, is pressing ahead with its flotation.

Marconi had been planning to float Strategic Communications, its Italian defence communications business, on the Borsa Italiana by the end of September. The UK company said on Thursday that "it is in discussions with Finmeccanica [the Italian defence company]. These discussions are at an advanced stage."