Siemens bribery probe could sink Nokia merger

Well the Sunday morning news papers are out in Europe and this is one sad sad story I’ll tell you that much. For a little bit of back ground information, from the article:

In the probe at Siemens, prosecutors are investigating the alleged existence of overseas slush funds containing about 200 million euros, which managers allegedly used to pay bribes to obtain big contracts.

According to the daily Sueddeutsche Zeitung, six current and ex-Siemens employees have confessed to German authorities to having managed slush funds in Switzerland, Austria and Liechtenstein.

And even more back ground information in a previous blog post of mine

The articles comes to the conclusion that:

The alleged bribery scandal surrounding the German conglomerate Siemens may scupper a planned tie-up with Finnish telecommunications equipment maker Nokia, according to a German newspaper report.

Nokia could at the last minute withdraw from the joint venture, Nokia Siemens Networks, which is designed to merge their telecoms equipment and network activities starting on January 1, due to a special clause in the merger contract, the Frankfurter Allgemeine Sonntagszeitung reported.

I highly doubt this will happen. Highly, highly, I’d put my money it, doubt this is going to happen.

Check out the article here from Yahoo Finance

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