Alecta Postpones Earnings and Faces Probe Over $4.6 Billion Spending

Alecta, Sweden's largest pension fund, has postponed the publication of its full-year results to await the most up-to-date valuation on Heimstaden Bostad, its largest holding. The change is to base the full-year report on the most current net asset value of Heimstaden Bostad instead of the previous quarter's net asset value. The fund's CEO, Magnus Billing, was ousted earlier this year after losing $2 billion on failed bets tied to the US banking crisis. Alecta is also facing a probe by public prosecutors over $4.6 billion spent building up its 38% stake in Heimstaden Bostad, which is currently struggling with credit-rating downgrades and a steep increase in borrowing costs. Additionally, Alecta unexpectedly withdrew its nomination of Lars Rohde as new chairman due to conflict of interest.