Marconi, the UK telecoms equipment manufacturer, will benefit from lower debt interest payments following its proposed financial restructuring after settling potential claims from three banks linked to its employee share option (ESOP) scheme.

The company has reached an agreement in principle with Barclays Bank, Salomon Brothers International and UBS, under which it will pay £35m (€54m) to settle contracts it made with the banks in 2000 to hedge the cost of buying shares under its staff scheme.