Yellow Pages owner Hibu, which was earlier known as yell, has warned that the shares of the company could soon have no value as the management looks for ways to revive business of printing bulky telephone directories.

Hibu also said that the earnings of the company could fall below market expectations. The group, which has a debt burden of £2.2 billion, indicated that it is in talks with lenders to restructure its finances. The group said that the underlying profits will be lower than market expectations just days before it is expected to go through a crucial bank covenant test.

The remarks came after the shares of the company fell by another 35 per cent to just 0.44p. The meager market value of 0.44p per share values the company at £10.5m. The shares of the company have fallen more than 99.9 per cent from the 600p high reached in 2007.

Hibu has warned that the value of shares could fall and investors could see their holdings diluted to the level where the shares will not very little or no value. Experts believe that the lenders to the company will have a greater control in the company after debt is converted into equity in the coming months.

Hibu's chief executive Mike Pocock expressed optimism over the group's four-year strategy and pointed out that it generates more than £1bn a year in turnover. Hibu is struggling against its internet rival, Google as it increasing focuses on e-commerce offering web services for small businesses.