ABB seeks to amend convertible due 2007

New York, April 21 - ABB Ltd. said it is calling a bondholder meeting to amend the terms of its $968 million convertible bond due 2007 issued by ABB International Finance Ltd.

The Zurich power and automation technology company is proposing to modify the security so that it converts into dollar-denominated American Depositary Shares instead of Swiss franc-denominated ordinary shares. Each ADS represents one ordinary share of ABB.

"The modifications will greatly simplify the accounting treatment of this bond and remove related volatility from our financial statements," said Peter Voser, ABB's chief financial officer, in a news release. "Removing the volatility factor provides for increased transparency."

"The changes should leave bondholders in substantially the same position as they are in today."

The bondholder meeting is scheduled for May 13 in London.

Barclays Capital, Citigroup Global Markets Ltd. and Credit Suisse First Boston (Europe) Ltd. are advising ABB.

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