Ericsson fails to finalise new shareholder structure

4 Mar 2003

Swedish equipment manufacturer Ericsson has failed to reach an agreement regarding possible changes to its shareholder structure. Under the current system, class A shares carry a thousand times the voting rights of class B shares, but the company is seeking to lower the ratio from 1000:1 to 10:1. Such a reduction would still leave the firms two main A shareholders – Investor and Industrivärden – with a blocking minority. The working group has yet to finalise a proposal to be presented at Ericsson’s AGM on 8 April but discussions are ongoing.