Ericsson (Sweden) announced that it has sold its holding of France Telecom Perpetual Convertible Bond holding of €456 million to a financial investor. In September 2002, Ericsson and France Telecom signed a memorandum of understanding to convert Ericsson's outstanding customer financing to German operator Mobilcom into a convertible loan issued by France Telecom. The conversion was then accomplished in March 2003.
Ericsson has now sold its holding of France Telecom Perpetual Bond to a financial investor. The transaction will be completed before the end of the third quarter. The sale reduces Ericsson's total customer financing exposure by the amount of the holding.
"This is in line with our careful policy on customer financing risk exposure in general and diligent handling of our exposure throughout this transaction," said Karl-Henrik Sundström, executive vice president and chief financial officer.
