Ericsson’s provision for US probe hints of smaller fine, shares jump

Ericsson said it would book a 2.3 billion Swedish crown ($220 million) provision for an expected fine from US authorities for the breach of a settlement reached in 2019.

Ericsson’s share price surged 7.7% in afternoon trading, as analysts had expected a larger fine similar to the $1 billion it paid in 2019 as part of a bribery settlement.

“This is an incredibly positive outcome given that the market expectations has been that they would get a fine of $1-2bn,” JP Morgan analysts said in a note.