Activist investment firm Cervian Capital has purchased a more than 5% stake in struggling Swedish telecom equipment manufacturer Ericsson  (ERIC) - Get Report with Cervian managing partner Christer Gardell saying that, "We see a significant potential in the company."

"It's about hard work ahead. We support the main thrust of the plan that Borje has presented for the company, meaning an increased focus on the core business," Gardell said. 

Ericsson reported a first quarter operating loss of $1.41 billion in the first quarter amid mounting competition from international parties. 

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