VG - Ericsson slumps as CEO says telecom company may have paid bribes to ISIS

Telecom giant Ericsson (NASDAQ:ERIC) saw its shares fall as much as 14%, Wednesday, following a report that Swedish company may have paid bribes to the Islamic State terrorist group. Ericsson Chief Executive Borje Elkholm told the Danish newspaper Dagens Industri that transportation routes in Iraq "have been purchased through areas that have been controlled by terrorist organizations, including ISIS." Elkholm said that the Ericsson (ERIC) doesn't know who received the final payments, but that those date back to 2018. According to Bloomberg, Elkholm said that Ericsson as spent a large amount of money and time "trying to understand this as best we can. Financing terrorism is completely unacceptable and something we do not allow at all." Along with Ericsson (ERIC), Vonage Holdings (NASDAQ:VG) also fell by more than 4%. Last fall, Ericsson (ERIC) said it would acquire Vonage (VG) for $6.2 billion in stock.

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Ericsson slumps as CEO says telecom company may have paid bribes to ISIS