Tranzactioneaza Ericsson B (SE.ERICB) - 77.4 SEK (%) Tranzactioneaza
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  Ericsson (SE.ERICB) said on Tuesday the closing of its $6.2 billion Vonage acquisition was delayed to the end of July, from the first half of the year, due to a pending investigation by a U.S. national security panel. The Swedish telecom equipment maker agreed to buy cloud communications firm Vonage in all-cash deal in November, as part of its efforts to broaden its 5G portfolio.
ericssons 62 bln vonage takeover delayed over us review 06 282022
A fine would come on top of a $1 billion fine paid to the DOJ in 2019 to settle bribery cases in several countries. At the time, Ericsson also agreed to supervision by the regulators for three years. Shares in Ericsson tumbled 7% in early Thursday trade, bringing the stock's losses since news of the scandal broke to around 30%.
Ericsson reported an 11% drop in adjusted operating earnings for the first quarter to 4.7 billion Swedish crowns ($500 million).But revenue rose 11% to 55.1 billion crowns on higher demand for 5G telecom equipment, beating estimates of 53.36 billion crowns.
Ericsson Chief Executive Borje Ekholm faces his toughest challenge yet as shareholders vote on Tuesday on his handling of a probe into possible corruption in Iraq, a scandal which has upset investors and hammered the share price. Shareholders are angry the company did not give more information about an internal probe from 2019 into potential payments to Islamic State militants until February.