As a result of the ruling from the Supreme Administrative Court, all conditions are now fulfilled for the proposal on reduction of the difference in voting rights to be presented at an Extraordinary General Meeting in Ericsson. Such an Extraordinary General Meeting is intended to take place in the beginning of the autumn 2004.
The proposal on reduction of the difference in the voting rights 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 shares of series A and B is changed from 1000:1 to 10:1 and that the shareholders of series A will receive a conversion right for each A-share, which during a specific period may be transferred or exercised for conversion of one share of series B to a share of series A. Several major Swedish institutional investors in Ericsson intend to offer to purchase the conversion rights for a price of SEK 1.10 per conversion right.
The ruling from the Supreme Administrative Court also provides guidelines on the taxation of transactions in conversion rights and other related tax issues. A summary of certain Swedish tax issues following the ruling from the Supreme Administrative Court is included in the information document that will be distributed to the shareholders before the Extraordinary General Meeting in Ericsson.
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