The Board of Directors of Telefonaktiebolaget LM Ericsson has decided to propose the Annual General Meeting 2002 to auth
2/15/2002 6:16 AM EST
The Board of Directors of Telefonaktiebolaget LM Ericsson has decided to
propose the Annual General Meeting 2002 to authorize Telefonaktiebolaget
LM Ericsson to transfer own stock of Class B
The Annual General Meeting in 2001 resolved to approve transfer of own
stock in relation to the introduction of a Global Stock Incentive
Program. The Resolution comprised i.a. authorization for the Company to
transfer a maximum of 31,000,000 shares of Class B to cover certain
costs, mainly social security charges that may occur in relation to the
Program. According to the resolution by the Annual General Meeting, any
transfer should take place prior to the Annual General Meeting in 2002.
No such transfer has been made.
Therefore, the Board of Directors today decided to propose the Annual
General Meeting in 2002 to resolve to authorize Telefonaktiebolaget LM
Ericsson to transfer, prior to the Annual General Meeting 2003, a
maximum of 31,000,000 shares of Class B, out of the total number of the
Company's holding of 156,804,000 shares of Class B, for the purpose of
covering certain costs, mainly social security charges that may occur in
relation to the Company's Global Incentive Program. Any such transfer of
shares shall be effected at the Stockholm Exchange at a price at each
time within the registered price interval for the share.
Based on the market value quotation and the Company's financial
statement by December 31, 2001, a transfer of 31,000,000 shares would
add SEK 1,767 to the liquidity and reinforce the equity ratio by 0,5 per
cent. The proposal for transfer of shares would not affect the Company's
result, as the consideration would be transferred to the share capital.
On December 31, 2001, 31,000,000 shares corresponded to 0,38 per cent of
the outstanding shares. Dilution of profit per share calculated
according to the so-called "Treasury Stock" method is dependent on the
development of the exchange rate fluctuation and would become 0,04 per
cent at an increase of the market value quotation by 10 per cent and
0,39 per cent at an increase by 100 per cent, respectively. The
31,000,000 shares have been considered when calculating the diluted
profit per share in the financial statements 2001.
Notice to the Annual General Meeting 2002 will be published in the
Swedish press February 18 and on the Internet www.ericsson.com, at which
site also the complete proposals for resolution by the Annual General
Meeting will be available March 13.
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 www.ericsson.com/press.
FOR FURTHER INFORMATION, PLEASE CONTACT
Pia Gideon, Vice President External Relations
Corporate Communications (Sweden)
Phone: +46 8 719 2864; E-mail:
Åse Lindskog, Director Media Relations
Corporate Communications (Sweden)
Phone: +46 8 719 9725; E-mail: