Ericsson ‘broke stock exchange rules’

An initial investigation by the Stockholm stock exchange has found that Ericsson broke its listing agreement with the exchange by inappropriately making public price-sensitive information.

The case stems from an analysts’ conference held in New York on November 21st in which Ericsson CEO Carl-Henric Svanberg surprised investors with unexpected news about the company’s weak fourth quarter sales performance.

Ericsson’s stock fell 11 percent on the news.

According to the stock exchange, the news constituted price sensitive information and should therefore have been disclosed according to procedures outlined in the exchange’s listing agreement with Ericsson.

As a result of Ericsson’s failure to disclose the information appropriately, the Stockholm exchange has referred the case to its Disciplinary Committee for further evaluation.

Ericsson’s spokesperson Åse Lindskog says that the company is satisfied with the way the case is being handled.

“We believe that we and the exchange have different interpretations of the issue and we look forward to having the case heard,” she said.

If the Disciplinary Committee agrees with the initial finding that Ericsson broke its listing agreement with the exchange, it can choose from three different sanctions: a warning, a fine or delisting from the exchange. The fines that may be imposed range from the equivalent of one to fifteen years worth of annual fees.


Ericsson suspends all Russia operations indefinitely

Swedish network equipment maker Ericsson said Monday that it was suspending all of its Russian operations over the war in Ukraine for the foreseeable future.

Ericsson suspends all Russia operations indefinitely

The telecom giant already announced in late February that it would stop all deliveries to Russia following Moscow’s February 24 invasion of Ukraine.

“In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely,” Ericsson said in a statement.

The company added that it was “engaging with customers and partners regarding the indefinite suspension of the affected business.”

“The priority is to focus on the safety and well-being of Ericsson employees in Russia and they will be placed on paid leave,” it said.

READ ALSO: How has Sweden responded to Putin’s war in Ukraine so far?

Hundreds of Western firms ranging from Ikea to Coca-Cola, Goldman Sachs and McDonald’s have stopped operations in the country since the invasion, with French banking group Societe Generale announcing Monday it was selling its stake in Russia’s Rosbank.

Ericsson has around 600 employees in Russia, and is a “major supplier to the largest operator MTS and the fourth largest operator Tele2,” a company spokeswoman told AFP, adding that together with Ukraine, Russia accounts for less than two percent of revenue.

As a result, the equipment maker said it would record a provision for 900 million Swedish kronor ($95 million, 87 million euros) for the first quarter of 2022 for “impairment of assets and other exceptional costs,” though no staff redundancy costs were included.
Ericsson is due to publish its first quarter earnings on April 14.