Ericsson CEO Ekholm set to leave, Saab's Buskhe could replace him -paper (updated)
28/08/2019 09:47
(Adds detail, shares, background)
STOCKHOLM, Aug 28 (Reuters) - Telecom equipment maker
Ericsson's ERICb.ST CEO Borje Ekholm could be about to
announce his exit after less than three years in the job with
outgoing Saab CEO Hakan Buskhe planned as his replacement,
business daily Dagens Industri reported on Wednesday citing
anonymous sources.
Ekholm - a veteran board member and former CEO of Investor
AB INVEb.ST - became CEO in January 2017 after the Swedish
company ousted its previous top executive, Hans Vestberg, due to
weakening profitability and pressure from major shareholders.
"The idea is that Hakan Buskhe will take over as CEO of
Ericsson. Borje has taken Ericsson out of the crisis and done it
well. Now someone needs to come in and move things along," a
source told the paper.
Ekholm was picked to steer the company through one of its
deepest crises, which has included soft markets, intense
competition, heavy restructuring and thousands of job cuts.
Ericsson's shares fell 2% by 0801 GMT. They have risen 44%
since Ekholm became CEO, sharply outperforming a 25% rise in the
STOXX Europe 600 Technology index .SX8P .
Investor AB, controlled by Sweden's Wallenberg business
family, is the biggest shareholder in both Ericsson and Saab,
with 23% of the votes in the telecom gear maker and nearly 40%
in the defence firm.
Dagens Industri said Ekholm could announce his departure in
the next six months, while Saab said earlier this month that
Buskhe would step down as CEO early next year. urn:newsml:reuters.com:*:nL8N2570CQ
Both Investor AB and Ericsson declined to comment on the
report.
Under Ekholm's tenure, profit margins have improved and
Ericsson's earnings have beaten market forecasts in five out of
the past six quarters, as the company saw growing demand for
next-generation 5G equipment.
Ericsson's second and third biggest owners in terms of votes
are Industrivarden INDUa.ST and activist investor Cevian
Capital, holding 15% and 5% respectively at the end of 2018.
Cevian declined to comment while Industrivarden was not
immediately available for comment.
(Reporting by Johannes Hellstrom and Helena Soderpalm; Editing
by Niklas Pollard and Susan Fenton)
((johannes.hellstrom@thomsonreuters.com; +4687001008; Reuters
Messaging: johannes.hellstrom.reuters.com@reuters.net))