The new group
Evidence of Europe_s old money embracing the dot.com boom arrived afresh Monday when Investor, the holding company controlled by Sweden_s Wallenberg family, linked with the industrial group ABB to launch an e-commerce venture capital group with backing of one billion euros (about $1 billion). The new group, named b-business partners, will invest in and develop business-to-business e-commerce companies across Europe. The aim is to facilitate traditional ``old economy'' companies making the transition to the technology-driven ``new economy.'' Additional partners include AstraZeneca, the drug and chemicals group, steel maker Atlas Copco, Electrolux and others. Up to 40 additional companies, Investor executives said, have expressed interest in backing the venture. The Wallenbergs, who have long been Sweden_s most wealthy family, control through their foundation 40 per cent of Investor voting stock and 20 per cent of its capital stock. Investor is capitalized at nearly $20 billion. Among the Wallenberg_s key holdings is Ericsson, Sweden_s largest company, in which it has a 22 per cent voting stake. Wallenberg is vice chairman of the telecom equipment manufacturer. Investor and ABB will each put up some $300 million of b-business partners_ initial capital. Sources at Investor said the new company_s first investments are close to being announced B-business partners aims to develop the new leaders in Europe_s fast growing B2B e-commerce market, which is forecast to grow to more than $180 billion by 2002. It is intended that the venture capital company will be floated within three years.