Marconi, the once-mighty telecoms equipment maker, believes it is on course to hit the target it has set for reducing its mammoth debt ahead of schedule.

The company today announced it was selling its 50% stake in General Domestic Appliances, which makes Hotpoint washing machine, to Italy's Merloni for �121m as part of its mission to offload non-core assets.

Another �23m is coming in from GDA dividends.

Earlier this month, Marconi managed to sell its petrol pump business for �225m.

Together, the deals mean debt will come down from its current �3.5bn to the top end of a �2.7-3.2bn range three months ahead of schedule, the company said.

Mismatch

The rash of sell-offs follows one of the most spectacular meltdowns in UK corporate history.

Marconi changed its name from GEC as part of a refocusing from defence electronics to telecoms equipment

It spent billions on high-profile US acquisitions - just in time for the slowdown in the telecoms industry to crumple the value of its new assets and knock the market sideways.

Combined with mismanagement, the result was a share price which slid from a high of �12.50 to a low of 13 pence, and a six month loss including writeoffs of �5.1bn.

It has since sacked much of its board including its chief executive and chairman, shed 6,000 staff and closed sites in a bid to regain profitability.

This morning, Marconi stock gained 0.8p to 36.4p, valuing the company at just under �1bn.