ABB has met 300 investors ytd; receiving interest in assets – CEO
ABB’s (VTX:ABBN) management team has met about 300 investors in the year-to-date, according to CEO Ulrich Spiesshofer. A trio of active shareholders have increased pressure over the year for the company to spin off its Power Grids division.
Addressing a press conference at an ABB capital markets day in Zurich Tuesday (4 October), Spiesshofer said it was important to listen to all shareholders on the company’s strategy. While some might not agree on specifics, all agreed on the potential ABB has as a company, he claimed.
Cevian Capital has led a campaign for ABB to spin-off its Power Grids division, backed publicly in recent weeks by Artisan Partners and Nordea. ABB on Tuesday announced it would keep the division. The move was criticised by Cevian but supported by another major shareholder, Investor AB.
"Investor AB supports us. There are a lot of investors who clearly support our decision," ABB CFO Eric Elzvik told this news service on the sidelines of the capital markets day.
CEO Spiesshofer said he had met with Cevian partner Christer Gardell on 5 September 2016 and again Tuesday morning. ABB seeks active dialogue with investors, including Cevian, he said, adding, “it would be wrong to just close our eyes".
ABB’s management was working closely with the board and experts regarding Power Grids, Spiesshofer said. It had spoken to financial advisors regarding the unit’s value, but ultimately decided it was best to keep it, he said.
Meanwhile, ABB has received “very lively interest” for various assets it owns, Spiesshofer said at the event. He declined to disclose further details, but mentioned the interest did not mean assets would be sold off. ABB last week announced a EUR 836m sale of its high-voltage cable business, part of the Power Grids division.
ABB shares were trading up 1.5% at CHF 22.31 mid-morning, giving a market capitalisation of CHF 49.51bn.