Daesh drop in Ericsson stock

Ericsson ’s CEO Borje Ekholm said in an interview with Dagens Industri newspaper that they may have paid the Daesh terrorist organization for access to certain transportation routes in Iraq. Shares of the Stockholm-based company fell 8.5% in early trading after the announcement. It was the biggest drop since July.

The CEO said they identified unusual spending for 2018, but could not identify the final recipient of the money. Ekholm added that the financing of terrorism is unacceptable and never allowed.

In the statement made by the Ericsson yesterday, it was stated that the activities in Iraq were being investigated.

Handelsbanken analysts reported that suspicious payments may be part of the US Department of Justice's corruption investigation, which concluded in 2019, and they do not expect a new investigation to be opened. Analysts said that the shares of the company may be adversely affected.