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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: Jim Oravetz who wrote (3540)	7/28/1999 5:51:00 AM
From: Mika Kukkanen	Respond to of 5390

Okay I admit it, I read Yahoo! Now I have to stand up in front of everyone and say, "my name's Mika and I post on Yahoo! I have had this problem for...." However, Explorer's rebuttal...errors in points 2 and 3, but can't be bothered to explain here or there as it was many, many posts ago. Mika

To: Jim Oravetz who wrote (3540)	7/28/1999 7:33:00 AM
From: Jim Oravetz	Respond to of 5390

STOCKHOLM -(Dow Jones)- Now that it has a medium-term management arrangement in place, Swedish telecommunications group Telefon AB LM Ericsson may wait a few years before appointing a long-term chief executive. Company watchers expect Ericsson's (ERICY) new president, Kurt Hellstroem, to take over the chief executive post next year from Lars Ramqvist, but this will last for only two or three years. In a break with tradition, Ericsson may look overseas for a longer-term CEO, who would probably be based in London. Last Friday, Ericsson Chairman Lars Ramqvist - who returned as CEO after the ousting of Sven-Christer Nilsson on July 7 - said Hellstroem may take over the CEO position if the company's profits start improving. Ramqvist said he expects to remain CEO - a position he held from 1990 to March 1998 - for at least six months. "While Hellstroem has said he's going to stay for a long time, I'm not so sure," said one Ericsson watcher in Stockholm. "He's 55 years of age and I think Ericsson will possibly be looking for another CEO in two or three years time." Paul Hansson of Myrberg Brokerage in Stockholm said he sees Hellstroem's appointment as president as a medium-term arrangement lasting perhaps three years. He said Ericsson could look overseas for a candidate that may take both president and CEO positions or, alternatively, just the CEO role with Hellstroem remaining as president. "Ericsson has stated it is looking for a longer-term solution. I imagine they are actively looking for another candidate to be the long-term solution," said one analyst with a major European bank. He said non-Swedes are likely to be considered for the role. So far the rumor mill has tipped Jan-Aake Kark, currently president and CEO of Swedish state telecoms group Telia AB, as a possible long-term candidate. Telia, though, has denied this. Kark was mentioned because he was previously head of Ericsson Microwave Systems and will move to deputy CEO once Telia's merger with Norway's Telenor ASA goes through. The top job at Telia/Telenor will be taken by Telenor's CEO, Tormod Hermansen. Executive search professionals reckon a company of Ericsson's stature would be able to attract high-flying candidates from outside Sweden. "As we've seen recently at Hewlett Packard, it's not uncommon for companies to go outside for chief executives," said a London-based headhunter specializing in the telecoms sector. "Ericsson would attract good people as it has a great brand name and there are some candidates out there that could fill that role," he added. Analysts said the candidate will definitely need experience in the telecom industry but not necessarily exposure to new data-communications technologies. "Ericsson will be looking for an international-type manager with an international network of contacts," said one analyst. Any eventual successor will, like Hellstroem, probably be based at Ericsson's new executive office at St. James's Square in London, which opens in September. Hellstroem will reside in London but continue to have an office in the Swedish capital, an Ericsson spokeswoman said. An international candidate based in London may be able to bypass Sweden's high taxes, headhunters said. Ericsson's most pressing employment issue is the replacement of Chief Financial Officer Carl Wilhelm Ros, who left earlier this month. The appointment is a key issue for Hellstroem, said the spokeswoman. smartmoney.com