Further, the preliminary results indicate that new B shares representing approximately 35 percent of the total rights offering have been applied for on a non-preferential basis, meaning that the rights offering is over-subscribed.

Approximately half of the above 35 percent was applied for by Investor AB and AB Industrivärden pursuant to their commitments as disclosed in the rights offering prospectus. As a result of the rights offering being fully subscribed, there will be no allocation of new B shares to the underwriters pursuant to their underwriting commitments.

Ericsson expects the rights offering to be concluded according to the following timetable:

 

                       

September 12 

Press release announcing final confirmation of the subscription level

Final trading day for interim shares (BTAs)

 

No trading neither in BTA's nor new B shares

 

September 16 

Trading in new B shares and ADSs commences

 

September 19 

Delivery of new B shares and ADSs to shareholders' accounts (subscribed for by exercising rights)

Payment for shares allocated pursuant to subscriptions without preferential rights

"The successful completion of the rights offering reflects the strong support of our shareholders and their belief in Ericsson and the telecom market," says Michael Treschow, Chairman of Ericsson. "We have always been driven by the conviction that communications is a basic human need. We believe that the telecom market is a long-term growth market and with the rights offering we now have the confidence and security of a strengthened financial position."