Eurobites: Ericsson shareholders sue over alleged Iraq cover-up

A 37-strong group of Ericsson shareholders is suing the company for an expected $175-$300 million in damages for losses linked to what the shareholders say was Ericsson's decision to "decision to withhold information about an internal investigation into its business practices in Iraq." An internal investigation in 2022 found that payments were channeled to unknown parties in Iraq, with Ericsson staff using "alternate transport routes" to evade local officials at a time when Islamic State, a terrorist organization, controlled some of Iraq's roads. According to the plaintiff shareholders, the admission of the internal report's existence came more than two years after it had been completed – a direct contravention, in their eyes, of Market Abuse Regulations stipulating that an issuer of shares must inform the public as soon as possible of inside information that directly concerns that issuer. (See Ericsson Iraq scandal is major embarrassment for CEO.)

Japanese chip company Renesas has announced its plan to acquire French rival Sequans in a transaction that values Sequans at approximately $249 million. The deal is expected to close by the first quarter of calendar year 2024. Back in February, the Sequans board said it had formed a special committee to "explore strategic options" in the face of turbulence in the IoT market, which is a key area for Sequans.

Patrick Drahi, the co-founder of Altice, is expected to publicly face questions into alleged corruption at Altice's Portuguese operation for the first time today. As Bloomberg reports (paywall applies), Drahi will join a quarterly results call for investors of Altice International, the unit that includes Altice Portugal. Last month, Armando Pereira, the other co-founder of Altice, was placed under house arrest as part of the police investigation into the affair. (See Altice USA halts some spending, taps new procurement chief amid probe in Europe.)

Saudi operator Zain KSA achieved its highest half-year profit ever during the first half of 2023, hitting 687 million Saudi riyals ($183 million), a 221% increase year-over-year. Zain says that the increase was driven by, amongst other things, the expansion of its 5G services and the growth of its fintech business, Tamam. Half-year revenue reached SAR4.8 billion ($1.28 billion), a 10% increase on the year-ago period.

A group of UK lawmakers has warned that connected devices such as smart speakers and baby monitors are being routinely used in domestic "coercive control" situations, the BBC reports. During its investigation, the Culture, Media and Sport Committee said it heard evidence that the vast majority of domestic abuse cases now feature a digital element, including the use of so-called spyware.

UK mobile operator Three has completed the construction of 100 sites as part of the government-led Shared Rural Network (SRN) program that is aiming to increase all operators' 4G coverage to 90% of the UK landmass by 2026. (See Eurobites: UK mobile operators and government sign rural coverage deal.)