Ericsson’s $3 Billion Charge Will Pressure CEO, Cevian Says
- Swedish mobile network maker cites slowdown at Vonage
- CEO is under scrutiny to justify $5.5 billion acquisition
The Ericsson headquarters in Stockholm, Sweden.
Photographer: Erik Flyg/BloombergThis article is for subscribers only.
Ericsson’s nearly $3 billion writedown related to its biggest acquisition will ratchet up the pressure on the key architect of the deal, Chief Executive Officer Borje Ekholm.
That’s the view of major shareholder and board member Cevian Capital AB, whose managing partner Christer Gardell told Bloomberg News that the under-fire CEO will again need to justify why the Swedish maker of mobile networks spent almost 60 billion Swedish kronor ($5.5 billion) buying Vonage Holdings Corp. in 2022.