Cevian Capital trims Ericsson stake to 7.4%

FILE PHOTO: The Ericsson logo is seen at the Ericsson’s headquarters in Stockholm, Sweden June 14, 2018. Picture taken June 14, 2018. REUTERS/Olof Swahnberg

STOCKHOLM (Reuters) – Activist investor Cevian Capital has trimmed its holding in Sweden’s Ericsson to 7.4% of share capital, saying the telecom equipment maker’s share of Cevian’s portfolio had become too large.

A filing with the U.S. Securities and Exchange Commission on Friday showed Cevian had cut its stake by about 34 million B-shares and now held 246.9 million B-shares and 339,228 A-shares in Ericsson. Cevian previously held an 8.4% stake in Ericsson.

“With our divestments we have now adjusted the portfolio weight to a suitable level,” Cevian Capital managing partner Christer Gardell told Reuters, adding the firm continued to believe in Ericsson’s potenial.

“The proceeds will be invested in other companies,” Gardell said.

Reporting by Johannes Hellstrom; editing by Niklas Pollard

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source: reuters.com