Pru chairman quits over Marconi

LONDON, England -- The chairman of Prudential, the UK's second-biggest insurer, has resigned to take responsibility for his role in the financial downfall of telecom equipment maker Marconi.

Roger Hurn, who has been Prudential's chairman for two years, said he was stepping down because of decisions made by Marconi while he was also chairman of that company.

"I am concerned that the company should not be adversely affected in any way by my recent involvement with Marconi,'' Hurn said in a statement on Wednesday.

"Because of Prudential's role as a significant investor in major British companies and hence its influence on corporate governance, it is in Prudential's best interests for me to resign from the chairmanship and the board.''

Last July, Marconi shocked the markets by issuing a profit warning and began axing thousands of jobs as the company was hit by a global economic slowdown and a slumping telecom sector.

Hurn resigned as Marconi's chairman in September. Marconi's chief executive George Simpson and deputy chief John Mayo also stepped down last year.

In additon to his role with Prudential, Hurn is also deputy chairman of UK drugs maker GlaxoSmithKline, a position the company said he would continue to hold.

Marconi's (MONI) stock price has plummetted more than 90 percent. Its shares were down 0.8 percent to 6.5 pence in afternoon trading on Wednesday in London. Prudential's (PRU) shares were up 0.3 pecent to 746p.

Although Prudential's share price has not been affected by Hurt's chairmanship, many analysts say his resignation could be greeted with relief by investors.

"He was associated with something that went belly up and his reputation had been dented,'' Gordon Aitken, an insurance analyst at CSFB, told Reuters.

Prudential said it expected to announce the appointment of a new chairman soon.