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ABB says to keep Power Grids division, announces share buyback
October 4, 2016 / 5:00 AM / in a year

ABB says to keep Power Grids division, announces share buyback

ZURICH, Oct 4 (Reuters) - ABB said on Tuesday it was hanging on to its Power Grids business, rejecting calls from shareholders who have campaigned for the $11.6 billion unit to be separated from the Swiss engineering group.

Zurich-based ABB made the long-awaited announcement at its investor day, where it also announced a $3 billion share buyback programme from 2017-2019 and raised the margin target range for the Power Grids business.

Cevian Capital, ABB’s second biggest shareholder, had wanted Power Grids to be spun off into a separate company, saying ABB in its current form is too complex to run effectively. (Reporting by John Revill and Zurich Newsroom)

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