Fallen telecom group Marconi and its controversial former finance director John Mayo are on course for another confrontation over money.

Mr Mayo, who has already come under fire from shareholders for claiming £1 million in severance pay, has launched a £1.6 million court action over the value of his pension fund.

Marconi confirmed it had received a High Court writ relating to Mr Mayo's claim but said it had still to decide on its response.

The former finance director left the company after a profits warning in July 2001 but haunted Marconi as recently as last month's annual meeting.

Under questioning from shareholders, chairman Derek Bonham expressed regret Mr Mayo had received his full severance entitlement despite being part of the team which oversaw the company's ill-fated move into telecoms equipment.

Debt-laden Marconi was eventually reduced to a point where shareholders are about to be left owning just 0.5 per cent of the firm after bosses were forced into a debt-for-equity swap with banks and bondholders.

The court action stems from a request made in September to transfer funds in Mr Mayo's executive pension plan to a separate scheme.

The scheme requires £2.28 million but is short by £964,000, based on Mr Mayo's calculations.

In addition, Mr Mayo says the transfer of his pension fund would create a tax charge of £640,000, taking the total court claim to £1.6 million.

Marconi has until November 20 to respond to Mr Mayo's claim.

The restructuring of Marconi has still to be formally approved but should result in a new company, Marconi Corporation, being created in January.

While investors will see their stakes virtually wiped out they will be offered warrants to buy shares in the new company.