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Report: Ericsson shareholders want new CEO; shares +2.5%

Jul. 20, 2016 10:31 AM ETTelefonaktiebolaget LM Ericsson (publ) (ERIC) StockERICBy: Jason Aycock, SA News Editor
  • Ericsson (NASDAQ:ERIC) is up 2.5% in U.S. trading, rebounding from a post-earnings slip of 6.1% yesterday, amid reports that the company's key shareholders want new leadership at the top.
  • Investor, the holding company of the Wallenberg dynasty, and Industrivarden -- together the two main shareholders -- agree that CEO Hans Vestberg needs to go, according to Dagens Industri, but the trick is finding someone who's willing and able to step in.
  • That means such a change might not happen until the end of the calendar year, when cost-cutting measures have already been launched, DI says.
  • Anders Runevad (CEO of Vestas Wind) is a candidate, the daily says, and it has heard from a source that there's no internal candidate for the job.

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