Ericsson claims Employees Summoned in Greek Probe of defence deal

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Swedish telecom equipment maker Ericsson AB said on Sunday that seven of its current and former employees have been served with summons by Greek authorities over allegations of possible corruption.

The company said it transferred all the records, agreements and documentation to the buyer, and that it will cooperate with authorities.

Ericsson, which disclosed the probe two years ago, said the current and former employees were recently served with summons in preliminary investigation proceedings by a Greek prosecutor over allegations of possible corruption.

The Greek probe marks the second time in a week Ericsson has publicly addressed corruption allegations. Last week, shareholder Nordea Asset Management criticised Ericsson for a lack of disclosure, saying the company failed to properly inform the market about a U.S. anti-corruption probe.

The incidents have put pressure on Chief Executive Officer Hans Vestberg, who was already battling competitors and is under fire from one of his largest shareholders.

The company didn’t say whether the U.S. and Greek investigations are related. Ericsson said its current and former employees haven’t been provided with the full relevant documentation from the investigation, and haven’t been questioned by the Greek prosecutor as yet.

Saab purchased Ericsson Microwave Systems and several other defense assets for 3.8 billion Swedish kronor ($460 million) in a deal announced in June 2006 and completed later that year.

GCT Team

This article was researched and written by a GCT team member.

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