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Pin to quick picksVodafone Share News (VOD)

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Share Price: 75.24
Bid: 75.18
Ask: 75.22
Change: -1.92 (-2.49%)
Spread: 0.04 (0.053%)
Open: 76.72
High: 76.94
Low: 74.92
Prev. Close: 77.16
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Ericsson could look beyond telecoms sector for new CEO-source

Wed, 19th Oct 2016 12:56

By Olof Swahnberg

STOCKHOLM, Oct 19 (Reuters) - Struggling mobile networksgiant Ericsson could try to hire a chief executivewith no track record in the telecoms industry after lookingbeyond the obvious candidates, a source familiar with the mattersaid.

Swedish business daily Dagens Industri suggested thatdefence firm Saab's chief Hakan Buskhe could be inthe running for the job in a column titled "Will Saab's bosssave Ericsson?".

The source would not confirm that Buskhe, who has been inthe top job at Saab since 2010, was being considered but did saythat the search had extended beyond those frequently named inmedia speculation, most of whom have telecoms experience.

"I understand there is a person on the short list but thatit is not so easy to get the person concerned," said the source,who declined to be named or give any further details.

Ericsson, Saab and Buskhe all declined to comment.

Ericsson has been without a permanent CEO since ousting HansVestberg in July. The sense of crisis around the companydeepened last week when the world's biggest maker of mobilenetwork equipment reported a 94 percent plunge in quarterlyoperating profit and tumbling sales.

The names often cited as contenders in recent weeks includecompany insider Hakan Eriksson, an executive based in Australia,former Ericsson CFO and current Stora Enso boss Karl-HenrikSundstrom as well as Johan Wibergh, the CTO of Vodafone whospent nearly two decades at Ericsson.

Asked whether experience at Ericsson was a requirement forthe board in choosing a new leader, the source said: "In my viewit should be a person with great industrial experience andknowledge, whether within telecoms or another sector is not soimportant."

CREDENTIALS

Buskhe, 52, has a track record in high-tech businesses andclose ties with Marcus Wallenberg, vice chairman of Investor which is a major shareholder in both Saab andEricsson.

Buskhe has been credited with turning Saab around bybroadening its international exposure at a time when EuropeanUnion defence budgets were falling and securing groundbreakingdeals for its fighter jets in emerging markets like Brazil.

Investor said on Wednesday that the priority for Ericssonwas to find the right CEO.

"I know the board is working very hard with the question,"Investor CEO Johan Forssell told Reuters, adding that EricssonChairman Leif Johansson has already laid out his criteria forthe role.

"It requires a strong leader, a person who understandstechnology and a person with good strategic abilities."

Swedish media have reported that some candidates have turneddown approaches due to the terms or worries over the future of acompany which is slashing thousands of jobs and faces fiercecompetition from Huawei and Nokia.

One Swedish fund manager who owns Ericsson shares said hewas surprised to see Buskhe's name mentioned but that he had therelevant research and engineering profile.

"It may not be possible to get a Ronaldo or a Messi toEricsson right now, so we may have to settle for someone furtherdown the list," said the fund manager, who asked to remainanonymous.

"From the main owner's perspective, Buskhe is a good name --they have worked with him for many years." ($1 = 8.8100 Swedish crowns) (Writing by Mia Shanley, additional reporting by Johan Sennero,Helena Soderpalm and Eric Auchard; editing by Keith Weir)

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