Thursday, February 21, 2008

Ericsson's Board Proposes 1:5 Reverse Stock Split

Ericsson's Board of Directors is a 1:5 reverse stock split, implying that five A shares and five B shares respectively will be consolidated into one A share and one B share respectively. The issue is to be considered at the shareholders annual meeting in April.

Ericsson noted that as a result of the rights issue in 2002, the number of shares in the company increased from approximately 8 billion shares to more than 16 billion shares. Further, the ratio between the B share and an American Depositary Share (ADS), traded on NASDAQ, was changed from 1:1 to 10:1. In connection with the reverse split, the ratio will be changed back to 1:1.