ZURICH Oct 4 ABB said on Tuesday it
was hanging on to its Power Grids business, rejecting calls from
shareholders who have campaigned for the $11.6 billion unit to
be separated from the Swiss engineering group.
Zurich-based ABB made the long-awaited announcement at its
investor day, where it also announced a $3 billion share buyback
programme from 2017-2019 and raised the margin target range for
the Power Grids business.
Cevian Capital, ABB's second biggest shareholder, had wanted
Power Grids to be spun off into a separate company, saying ABB
in its current form is too complex to run effectively.
(Reporting by John Revill and Zurich Newsroom)