Ravaged Swiss telecommunications equipment company Ascom Holding AG, Berne, yesterday set in train a string of moves it hopes will put it on the road to recovery with break-even this year, and profits next – but it is still not finished with cleansing the Augean stables of its boardroom, because two more board members, Hans Ulrich Baumberger and Theodor Faessler announced their resignation with effect from the next annual meeting. Board chairman Heinz Frey has also announced his resignation with effect from the annual meeting, which is set for May 26. Ascom’s previous chief executive Leonardo Vannotti resigned in December 1993 and the finance director Klaus Ruetschi left the company in early February. On the operational front, the company has decided to restructure itself into three core divisions, Telecommunications, Enterprise Networks, and Service Automation. The company previously operated as four divisions. Ascom is also wielding the axe among its administrative staff, cutting the headquarters operation to about 50 people from around 250 currently. The most promising development is that Ascom has signed a memorandum of understanding with L M Ericsson Telefon AB, Stockholm to establish a jointly-owned company in fixed and mobile public telecommunications. The new venture will be headquartered in Switzerland and is expected to have about 900 employees; annual sales of over $275m are forecast. The new company is planned to come into being at the beginning of 1995. The exact ownership structure will be decided in the continuing negotiations, but it is intended that Ericsson will be the majority owner, Ascom said. It will embrace existing agreements between Ascom and Ericsson – Ascom and Ericsson formed a joint company in transmission equipment in 1992, following a licensing agreement in 1984, Reuter reports. Despite the fact that neither Sweden nor Switzerland is yet a member of the European Community, the agreement has to be approved by European Union monopoly authorities, Ascom noted.
