The takeover of Telent, the rump of Marconi, fell apart yesterday after the hedge fund that is the company's biggest shareholder voted it down.

The opposition of Polygon, the activist hedge fundthat holds 23.9 per cent of Telent's equity, angeredTelent's management, other shareholders and Fortress Investment Group, theUS private equity business, which had offered topay £346m for the telecommunications services company.