STOCKHOLM, Sept 13 Swiss power and automation
group ABB should spin off and list its Power Grids
unit, the head of activist fund Cevian, ABB's second largest
shareholder, said on Tuesday.
Earlier this year, Germany's Manager Magazin reported that
Cevian had hired consultants to study a potential break-up of
ABB officials have said they oppose such a move.
"To spin off and list Power Grids is the only rational and
logical business decision," Cevian founder and managing partner
Christer Gardell told the Svenska Dagbladet newspaper.
"Big companies that consist of separate operations like ABB
are bureaucratic, slow and ineffective."
Gardell said he wanted shares in Power Grids to be divided
up among current owners.
He said an improvement in Power Grids' results recently was
not a reason to reject a spin-off.
"Furthermore, we don't see any vital synergies in the
current structure which cannot be dealt with by a cooperation
agreement between Power Grids and the other units," he said.
Cevian owns around 5.2 percent of ABB's share capital and
voting rights. ABB's largest shareholder is Sweden's Investor
with a roughly 10 percent stake.
(Reporting by Simon Johnson; editing by Jason Neely)