Shareholders in the Swedish telecommunications equipment maker Ericsson today granted approval for a SKr30 billion (€3.2 billion) rights issue, aimed at helping it through the industry downturn.
The company said the issue would take place before the end of September.
Chairman Mr Michael Treschow confirmed to shareholders that the money will be used to strengthen the company's balance sheet and will not be spent on acquisitions.
The issue will consist of B-series shares which will carry one thousandth of the voting rights of A-series shares. No indication has been given by the company on the price they are going to set.
Chief executive Mr Kurt Hellstroem said he expects mobile operators to increase their spending on 3G once Hutchison Whampoa rolls out its network.