Bloomberg News

Ferrostaal Fined $183 Million by Court at Ex-Managers’ Trial

December 20, 2011

Dec. 20 (Bloomberg) -- Ferrostaal AG was fined 140 million euros ($183 million) today by a Munich court in a bribery case related to the conduct of two former employees.

The fine is the result of an agreement between the company, prosecutors and the judges, court spokeswoman Margarete Noetzel said in an e-mailed statement. The sanction was issued as part of a verdict in the trial of two former company managers accused of paying bribes in Greece and Portugal.

Ferrostaal said at the beginning of the trial on Dec. 15 that it was willing to pay the fine, which was the result of “intensive negotiations.” The company said in a statement today that it would bear the consequences and pay the fine.

The two former company managers, identified only as Johann- Friedrich Ha., 73, and Hans-Dieter Mue., 73, were convicted of bribery and received suspended prison terms of two years. Ha. was also fined 36,000 euros and must pay 30,000 euros to charities to have the term suspended. Mue. was fined 18,000 euros and must pay 22,000 to charities, according to the statement.

Prosecutors had been probing Essen, Germany-based Ferrostaal, which manages the development of industrial and petrochemical plants, since 2009 to determine whether it bribed officials for contracts.

--Editors: Anthony Aarons

To contact the reporter on this story: Karin Matussek in Berlin at kmatussek@bloomberg.net;

To contact the editor responsible for this story: Anthony Aarons at aaarons@Bloomberg.net.


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