The proposal was made public on February 19, 2004, and has been prepared by a Work Group consisting of shareholder representatives led by the Chairman of Ericsson, Michael Treschow. The proposal principally states that the difference in voting rights between the A- and the B-share is changed from 1000:1 to 10:1 and that the A-shareholders will receive a conversion right, for each A-share, which may be transferred or exercised for conversion of one B-share to one A-share.
The statement of the Swedish Securities Council means that one of the conditions for completion of the proposal is now fulfilled. The next step is that the proposal will be submitted for resolutions on the general meetings of Investor and Industrivärden. Assuming that the proposal is approved on the general meetings and that a final advance tax ruling on the tax issues is received, stating that the reduction of the differences in voting rights to 10:1 and the conversion from B- to A-shares do not trigger tax liability, the proposal will be submitted for resolution at an extraordinary general meeting in Ericsson. If the proposal is approved at the general meeting in Ericsson, a number of major Swedish holders of B-shares intend to make an offer to purchase conversion rights for SEK 1.10 per conversion right.
Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
Read more at: http://www.ericsson.com/press