for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

Capital Group becomes second-biggest investor in ABB

FILE PHOTO: The logo of Swiss power technology and automation group ABB is seen at the Swiss Economic Forum (SEF) conference in Interlaken, Switzerland May 24, 2019. REUTERS/Arnd Wiegmann

ZURICH (Reuters) - U.S.-based investment manager Capital Group has increased its stake in ABB to 5.05%, a regulatory filing showed on Friday, becoming the second-biggest shareholder in the Swiss engineering company.

Capital, which had to disclose its position after going above 5% of the stock, previously held a 3.03% voting stake.

Its holdings now overtake Cevian Capital, the activist investor group, which holds 4.89% of ABB, according to Refinitiv data. The biggest investor in ABB remains Sweden’s Investor AB, founded by the Wallenberg family, with 12.24%.

Capital, which has more than $2 trillion in assets under management, did not respond to requests for comment. The company describes itself as a long-term strategic investor.

ABB’s share price has risen by 38% in the past 12 months since former Sandvik boss Bjorn Rosengren took over as CEO, outperforming the Swiss blue-chip SMI index, which has gained 9.9%.

ABB declined to comment.

Reporting by John Revill; Editing by Michael Shields

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up