ABB ABB Ltd

By John Revill

ZURICH--ABB Ltd's (ABBN.VX) decision to review the future of its power-grids business as part of a broad shake-up of the Swiss energy and automated equipment supplier might yet see the unit remain within the group.

Chief Executive Ulrich Spiesshofer said on Wednesday that all options, including a sale, are on the table.

But it was "far too early to speculate" on the outcome of the review, Mr. Spiesshofer told The Wall Street Journal in a telephone interview. ABB is holding an investor day in London.

The Zurich-based group is setting up the new division, which will provide products and services to power-generating companies, as it lowered its sales targets for the next five years. The power grids business, which has revenues of around $12.6 billion, is officially under "strategic portfolio review."

"We have brought together what belongs together," said Mr. Spiesshofer, referring to the reorganization which places all its electrical grid products together. "We will look at the long term future of the business, the business model and the ownership structure."

The business review should be completed in the next 12 months. "We are not under time pressure, this is something that is totally self-initiated," he said.

ABB's strategic rethink comes amid pressure from some investors for the group to do more to improve profitability and growth. Cevian Capital, an activist investment fund, has recently built up a stake of more than 5% in ABB.

Mr. Spiesshofer said Cevian has so far been in "listening mode."

ABB would also consider acquisitions in the future, after taking a pause over the last 12 months, Mr. Spiesshofer said. The company could buy large companies similar in scale to the $3.9 billion purchase of low-voltage products maker Thomas & Betts or industrial motors business Baldor which ABB bought for $4.2 billion, both acquired in the past five years.

ABB, the world's largest maker of electrical power grids, would also press ahead with selling off fringe businesses. Mr. Spiesshofer gave no figure for how much he wanted aimed to raise from this activity.

Write to John Revill at john.revill@wsj.com

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(END) Dow Jones Newswires

September 09, 2015 04:33 ET (08:33 GMT)

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