Ericsson to restructure shares

21 Nov 2003

Equipment manufacturer Ericsson is in talks to change its share structure in a bid to resolve its controversial voting structure. The company plans to abandon its system of giving its A shares 1,000 times the voting right of its B shares, and replace it with a new structure where A shares would carry just ten times the voting of B shares. Ericsson hopes the move will loosen the grip of its two controlling shareholders – the Wallenberg family and Svenska Handelsbanken – and will prevent them from undertaking a hostile takeover.