Activist Cevian Demands Ericsson Overhaul Corporate Governance

Cevian AB, Europe’s largest activist investor, has pressed troubled telecom firm Ericsson AB to adjust the rules on its share classes as part of a plea for major corporate governance reform.

Cevian, which holds about 5% of Ericsson’s Class B shares, asked the firm to change its articles of association to give its Class A shareholders the power to convert their shares into Class B shares, according to a statement. Class A shareholders carry ten times the voting power per share as Class B, according to Ericsson’s 2020 annual report.

The company’s shares have lost about a third of their ...