VG - Vonage pares losses on report that Ericsson told DOJ about Iraq probe in 2019

Vonage (NASDAQ:VG) pared losses on a report that Ericsson (NASDAQ:ERIC) informed the U.S. Dept of Justice about an internal probe into payments in Iraq when it signed a Deferred Prosecution Agreement with the agency to settle separate corruption probes in 2019. One of Ericsson's largest investors, Cevian Capital, told Reuters that the telecom company's actions were "unacceptable," though the investor acknowledged that the DOJ was informed of the Iraq investigation in 2019. Cevian co-founder Christer Gardell told Reuters the the drop in Ericsson's share yesterday was a "strong overreaction." Share of Vonage, which agreed in November to $6.2B sale to Ericsson, fell 3.3% yesterday after reports came out that the telecom company may have paid bribes to ISIS. Investors were concerned that that a national security or CFIUS review of the $21/share deal could be delayed due to the report on ISIS, according to some M&A traders. Ericsson shares fell 5.2% today after plunging 12% yesterday. Vonage

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Vonage pares losses on report that Ericsson told DOJ about Iraq probe in 2019