Printer Friendly

Ericsson Makes Cash Offer for Subsidiary.

LM Ericsson Telefon AB is making a cash offer to buy back the remaining shares of its Italian subsidiary it does not already own. Under terms of the deal, Ericsson is offering via its newly formed Italian company NewCo SpA, 32 euros ($37.98) for each share in Ericsson SpA it does not already own.

Ericsson currently holds 71.19% of the shares in Ericsson SpA, and the offer for the remaining 28.81% stake is valued at 237.3m euros ($281.65).

Ericsson SpA is the sole remaining listed subsidiary within the Ericsson Group, and the acquisition is intended to simplify the Ericsson Group structure. It follows similar offers for minority stakes in Ericsson's Brazilian and Mexican operations in 1998 and 1995 respectively.

Ericsson SpA is listed on the Milan Stock Exchange, and employs roughly 2,200 staff. It provides telecommunications equipment for mobile and fixed-line telephony in the Italian market. Last year, it reported a consolidated EBIT of 52m euros ($61.7m) on sales of 1.07bn euros ($1.27bn).

The Stockholm, Sweden-based company intends to delist its subsidiary shares from the Milan stock exchange and instead concentrate trading in Ericsson shares in Stockholm, London, and in the United States.

The move to simplify the structure of the Ericsson Group, and to reduce the number of listed subsidiaries, follows the reforming of its controversial voting structure to allow foreign shareholders a greater say in the company, in February.

The deal is expected to be approved by the end of June.
COPYRIGHT 2004 Datamonitor
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Computergram International
Article Type:Brief Article
Geographic Code:4EUSW
Date:Apr 27, 2004
Words:252
Previous Article:Gemplus Reports First-Quarter Recovery.
Next Article:BT Faces Prospect of Breakup.
Topics:


Related Articles
SWEDBANK FIRST BANK IN ERICSSON/SYBASE ALLIANCE.
IANYWHERE SOLUTIONS STIMULATE MOBILE JAVA DEVELOPMENT.
Nokia and Psion Buy Motorola Out of Symbian.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters