ZURICH – Cevian Capital, ABB's second-biggest shareholder, on Tuesday criticized the Swiss engineering group's decision to keep its Power Grids division.
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"ABB is a collection of top-quality businesses whose performance has been hindered for many years by the company's conglomerate structure. The potential is 35 Swiss francs per share in today's terms," Cevian said in a statement. "The board has decided to keep the conglomerate structure. We think this is an unfortunate decision. The board and management team will be held accountable for realizing 35 francs."
Activist investor Cevian Capital, which holds a 6.2 percent stake in ABB, had wanted Power Grids to be spun off into a separate company.
(Reporting by John Revill; Writing by Joshua Franklin)