SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of: December 2003
Commission File Number: 001-16429
ABB Ltd
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(Exact name of registrant as specified in charter)
N/A
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(Translation of registrant's name into English)
Switzerland
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(Jurisdiction of organization)
P.O. Box 8131, Affolternstrasse 44, CH-8050, Zurich, Switzerland
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(Address of principal executive offices)
Registrant's telephone number, international: + 011-41-1-317-7111
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Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-________
This Form 6-K consists of the following:
1. Press release of ABB Ltd, dated December 9, 2003, announcing the
divestiture of its reinsurance business.
THE MATERIAL SET FORTH HEREIN IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT
INTENDED, AND SHOULD NOT BE CONSTRUED, AS AN OFFER TO SELL, OR AS A SOLICITATION
OF AN OFFER TO PURCHASE, ANY SECURITIES. THE SECURITIES DESCRIBED HEREIN HAVE
NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED, OR THE LAWS OF ANY STATE, AND MAY NOT BE OFFERED OR SOLD WITHIN THE
UNITED STATES, EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE
STATE LAWS. THE COMPANY DOES NOT INTEND TO MAKE A PUBLIC OFFERING OF SECURITIES
IN THE UNITED STATES.
Press Release
For your business and technology editors
ABB sells reinsurance business for US$ 425 million
Continues to sharpen focus on core power and automation businesses
Zurich, Switzerland, December 9, 2003 - ABB, the leading power and automation
technology group, said today it has agreed to sell its reinsurance business
(Sirius) to White Mountains, the Bermuda-based insurance holding company, for a
cash price of 3,220 million Swedish Kronor (about US$ 425 million at December 1
exchange rate).
"The divestment is part of our strategy to focus on our core business of power
and automation technologies, and to sell non-core assets when we can create
maximum value for the company," said Peter Voser, ABB's chief financial officer.
"With its size and geographic scope, we think White Mountains is the right
partner to further develop our very successful reinsurance business."
ABB said the divestment represents a complete exit from the reinsurance
business. The transaction is expected to be completed in the second quarter of
2004, and is subject to customary regulatory approvals. ABB's reinsurance
business was part of ABB's former Financial Services division, most of which has
been divested over the past year.
The Sirius business employs around 200 people at the Sweden-based Sirius
International, Sirius America and Scandinavian Re. At the end of September 2003,
the business reported revenues of US$ 572 million and earnings before interest
and taxes (EBIT) of US$ 99 million.
ABB will report a book loss on the sale of approximately US$ 150 million. The
loss comprises a discount on the net asset value of the business (about US$ 45
million) goodwill write-offs (approximately US$ 75 million), and transaction
costs (about US$ 25 million). The total loss will be booked in discontinued
operations, and the operational results of the reinsurance business will be
restated from Non-core activities to discontinued operations for the fourth
quarter and 2003 full-year results.
ABB (www.abb.com) is a leader in power and automation technologies that enable
utility and industry customers to improve performance while lowering
environmental impact. The ABB Group of companies operates in around 100
countries and employs about 120,000 people.
For more information please contact:
Media Relations: Investor Relations:
ABB Corporate Communications, Zurich Switzerland: Tel. +41 43 317 3804
Thomas Schmidt, Wolfram Eberhardt Sweden: Tel. +46 21 325 719
Tel: +41 43 317 6568 USA: Tel. +1 203 750 7743
Fax: +41 43 317 7958 investor.relations@ch.abb.com
media.relations@ch.abb.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ABB LTD
Date: December 9, 2003 By: /s/ HANS ENHORNING
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Name: Hans Enhorning
Title: Group Vice President,
Assistant General Counsel
By: /s/ FRANCOIS CHAMPAGNE
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Name: Francois Champagne
Title: Group Vice President,
Senior Counsel