The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Ericsson looks to hibernate

Telecoms

       
Ericsson: management is breathing
more easily after shareholders backed
its rights issue

Management at Ericsson is breathing a big sigh of relief after existing shareholders stumped up to support its long-delayed SKr30 billion ($3 billion) rights issue last month. Uncertainty about its business prospects, 3G write-offs and doubts about its capacity to raise new equity capital had damaged its credit ratings and its share price in preceding months. For now the company's survival is assured, but where can it go from here?


The Swedish mobile network infrastructure supplier initially announced that it would complete a rights issue in April this year. In addition to a lengthy timetable required for rights issues by Swedish law, approval also had to be gained by the SEC as Ericsson has 15% of its share register trading in the US.


Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree