Swisscom withdraws from the New York Stock Exchange
Swisscom intends to delist its shares from the New York Stock Exchange (NYSE) this year and deregister the company from the U.S. Securities and Exchange Commission (SEC). The company justifies the move with the low trading volume in the USA, the relatively high administrative costs and the recent simplification of deregistration by the SEC.
Swisscom intends to delist its shares from the New York Stock Exchange (NYSE) this year and deregister the company from the U.S. Securities and Exchange Commission (SEC). The company justifies the move with the low trading volume in the USA, the relatively high administrative costs and the recent simplification of deregistration by the SEC.
As the Swiss telecom giant announced in a communiqué on Friday, it will still be possible to approach certain US investors in private placements despite its withdrawal from the NYSE. The deregistration from the SEC exempts Swisscom from reporting under the US Securities Exchange Act and exempts it from the provisions of the Sarbanes-Oxely Act (SOX), as Netzwoche writes. SOX was passed and enacted in 2002 as a result of the Enron scandal. However, Swisscom wants to maintain the current standard of corporate governance and transparency towards shareholders, which is guaranteed by the stock exchange regulations that apply to the Swiss telco anyway.
As the Swiss telecom giant announced in a communiqué on Friday, it will still be possible to approach certain US investors in private placements despite its withdrawal from the NYSE. The deregistration from the SEC exempts Swisscom from reporting under the US Securities Exchange Act and exempts it from the provisions of the Sarbanes-Oxely Act (SOX), as Netzwoche writes. SOX was passed and enacted in 2002 as a result of the Enron scandal. However, Swisscom wants to maintain the current standard of corporate governance and transparency towards shareholders, which is guaranteed by the stock exchange regulations that apply to the Swiss telco anyway.
