Cevian Capital buys 5.6 percent stake in Ericsson

The exterior of an Ericsson building is seen in Stockholm April 30, 2009.  REUTERS/Bob Strong/File Photo

Activist investor Cevian Capital has bought a 5.6 percent stake in struggling mobile telecom equipment maker Ericsson, a regulatory filing showed Tuesday.

Ericsson shares have fallen close to 40 percent in the past two years as the firm has been hit by a drop in spending by telecoms firms, weak emerging markets and mounting competition from China’s Huawei and Finland’s Nokia.

Cevian, founded by Swedes Christer Gardell and Lars Forberg, bought 167,761,137 Ericsson shares, according to the filing from the U.S. Securities and Exchange Commission.

[Source:- Reuters]