Deals
ABB Defies Cevian in Keeping Power Grids as Battle Lines Drawn
- Biggest shareholder Investor AB backs management’s plans
- Cevian calls decision to keep division “unfortunate”
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With a pledge to hold on to its business making power grid equipment, ABB Ltd. has won a round in a protracted battle with Swedish activist shareholder Cevian Capital AB, which wants the Swiss engineering company broken up.
ABB said Tuesday that keeping the power grids division will “unlock maximum shareholder value” compared with options like a sale or initial public offering. While it sweetened the announcement with $3 billion buyback of stock, the news did little to excite investors, with the shares rising as much as 1.6 percent in Zurich.