Erik Åkerlund

"Soon it also became apparent that external factors were not the major problem in Ruben and Erik Åkerlund’s company. Instead, it was the finances within AB Lito & Kartong that became the major stumbling block. Erik Åkerlund had been in such a hurry to buy the company that he had not taken the time to check the books. Instead, he had settled for Gustav Olsson’s guarantee that the business was profitable. When Ruben analyzed the accounts for 1929 at the beginning of 1930, he was horrified. The losses were so great that it would likely take several years to turn the situation around – if at all possible."

"Åkerlund backed down when faced with a done deal. However, the issue was not resolved with this. Åkerlund definitely wanted to get rid of his bond commitments totaling 700,000 kronor. And Ruben wanted to get rid of Erik Åkerlund’s option to avoid future problems. Therefore, a series of negotiations began that were only resolved in 1937 when the bank director Richard Julin, who was responsible for Åkerlund & Rausing’s credits at Enskilda Banken, stepped in as a mediator. The settlement consisted of the bank approving Åkerlund & Rausing’s loans of 700,000 kronor to remain, against publishing mortgages in the company. At the same time, the bank took over loans from Åkerlund to the company totaling 500,000 kronor on the condition that Ruben, Holger Crafoord, and Börje Svenby provided guarantees for the money. In addition, Ruben had a personal debt to Erik Åkerlund of 400,000 kronor for his share of the shares. This debt was also resolved through loans in the bank. Shares in the company were given as security. Against a commission of 50,000 kronor, Enskilda Banken had saved Ruben’s business."

"In just a few weeks, the sensational deal was completed – it was the largest corporate acquisition in Sweden to date. For Bonniers, it was a fine capture; a large part of the purchase sum could later be withdrawn from Åhlén & Åkerlunds’ own cash register, and Åkerlund’s business-savvy sister Anna Ehlin, who had actually been taking care of the daily management of the company, chose to stay within the company. Erik Åkerlund’s fears for the publishing house also proved to be mistaken. “Yes, later on, Bonniers earned back the purchase sum several times over each year,” Ruben commented on the deal later."

"But Erik Åkerlund deceived himself. He had been more interested in the negotiation game than in calculating the real value of the company. What he, in his belief that the publishing house was about to lose market share, thought was a good price – twelve million kronor – was in fact a greatly underestimated price. But Erik Åkerlund did not realize that."

"Ruben’s employment contract with Erik Åkerlund was very advantageous. But not only that: in addition to salary and other benefits, Ruben also managed to secure the astonishing agreement that he would get to buy half of Erik Åkerlund’s shares in Lito & Kartong, but without having to pay a single krona in cash. Åkerlund loaned Ruben the 400,000 kronor he needed to take over half of the stock at a five percent interest rate – such a loan was no problem for a person with Ruben’s annual salary. Erik Åkerlund really wanted young Rausing as a partner."

"soon turned out that Erik Åkerlund had deceived everyone: he did not actually own the Stockholms-Tidningen, but only acted as a front for Ivar Kreuger’s brother, Torsten. He had tried to build a monopoly position in the Stockholm press. But it had partially occurred in secrecy. Since he already owned Aftonbladet and Stockholms Dagblad, he used Åkerlund as a front in Stockholms-Tidningen. In this way, he could conceal who the real owner was. But now Torsten Kreuger, probably undeservedly, was drawn into the storm winds after his brother’s breathtaking business deals, and soon he was prosecuted for some dealings on the periphery of the financial scandal."

"Ruben thus decided to give the two young men the option to buy into the company. They would be allowed to do so as soon as he had gotten rid of the troublesome Erik Åkerlund. Now was the time. Holger was appointed deputy CEO and deputy chairman of the board and got to buy 20 percent and Börje Svenby ten percent of the shares in the company. Six years later, when Svenby switched to PLM in Malmö, Holger and Ruben divided his shares. Eventually, Holger owned 25 percent in Åkerlund & Rausing."

"He began looking for something else to do. Part of his thoughts revolved around starting his own business, but he was unsure about which industry to choose. In the late summer of 1929, he heard a rumor that the publisher Erik Åkerlund wanted to sell his business, the weekly magazine publishing house Åhlén & Åkerlund. During his stay in the USA, Ruben had interned for a week at the magazine Saturday Evening Post. Since he, despite the setbacks at SLT, had not lost his self-confidence in any way, he now considered that the internship and time at SLT had given him the skills he needed to run a magazine publishing house. He decided to contact Åkerlund."

"to ensure against a potential bankruptcy in Åkerlund & Rausing dragging all assets with it, the companions chose to use Åhlén & Åkerlund Offset Printing in Stockholm as the parent company. This profitable little company that printed playing cards, advertisements, and covers for weekly magazines had Erik Åkerlund temporarily managed to exempt during the sale of the rest of the publishing house. In the negotiations, he had managed to get Bonniers to accept that they would take over the small company only after twelve years."

"Ruben now began to realize his visions. This was facilitated by the fact that Erik Åkerlund did not take an active part in the daily management of the company. It was not just Lito & Kartong that he had bought after the sale of the publishing house, but also the Stockholms-Tidningen. There he had then started working as the CEO, a role he embraced with vigor and enthusiasm."

"A week later, Ruben was visited by the always heavily cigar-smelling star lawyer Emil Henriques. Initially, Henriques introduced himself as Erik Åkerlund’s representative. Then he placed a check for 100,000 kronor in front of Ruben. It was to be considered as a transition sum if Ruben left SLT, Henriques explained to the astonished Ruben. Then, he produced a contract. In it, Ruben was named as the CEO of AB Lito & Kartong with the staggering annual salary of 60,000 kronor. In addition to this, he would also receive a 15 percent commission on the net profit."

"Stockholm-Tidningen had previously been the largest in the country, but when Åkerlund became head, it had been surpassed by Dagens Nyheter. Erik Åkerlund engaged Ruben so that together they could set up a sales campaign. The purpose was to regain the position as Sweden’s number one daily newspaper. It turned into a campaign that the Swedes had never seen before. The newspaper lowered the single issue price from fifteen to ten cents and organized a competition where readers could win a car every week by guessing the next week’s circulation numbers. The results were reported weekly on a light sign at Kungsträdgården. The campaign was a hit and the circulation increased by 40 percent in a quarter."

"For 450,000 kronor, Ruben purchased Erik Åkerlund’s half in the company. He only needed to put down 50,000 in cash. The rest would be paid over a ten-year period. The 50,000 kronor became the only cash investment that Ruben would ever make in his businesses."