September 5, 2019 / 3:29 PM / 2 months ago

Ericsson's CEO tells staff report of his imminent exit is incorrect

FILE PHOTO: Ericsson President and Chief Executive Officer Borje Ekholm delivers a keynote speech at the Mobile World Congress in Barcelona, Spain, February 27, 2018. REUTERS/Sergio Perez

STOCKHOLM (Reuters) - Swedish telecom equipment maker Ericsson’s CEO Borje Ekholm told employees in an internal note this week that a recent media report of his imminent replacement was incorrect, a company spokesman said.

Business daily Dagens Industri said last week, citing anonymous sources, that Ekholm was set to leave after less than three years on the job and would be replaced by defense material group Saab CEO Hakan Buskhe.

Ericsson’s shares fell over 3% on Aug. 28, the day the report was published.

“Borje Ekholm has in his internal weekly letter to Ericsson’s employees denied that he is leaving Ericsson,” an Ericsson spokesman told Reuters in an e-mail on Thursday.

Ekholm - a veteran Ericsson board member and former head of investment firm Investor AB - became CEO in January 2017 after the company ousted its previous top executive, Hans Vestberg, due to weakening profitability and pressure from major shareholders.

Reporting by Helena Soderpalm, editing by Anna Ringstrom and Elaine Hardcastle

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