While the Dusseldorf state prosecutors office refused to name the people concerned, one of those charged is the former Mannesmann CEO Klaus Esser who received a 20m pound ($32m) pay-off. Esser was indignant over the charge. There is not the slightest suspicion of any kind of illegal behavior on my part, he told Reuters.
The long takeover battle for Mannesmann was an emotional issue in Germany, with general hostility to one of the cornerstones of the country’s economy being acquired by an upstart overseas mobile phone operator.
Esser originally oppposed the bid from Newbury, UK-based Vodafone, before eventually bowing to the takeover. After the deal was closed Esser and other Mannesmann officials were awarded shares and packages of money, which prosecutors claim influenced their decision to sell the company to their rival. Esser insists he only accepted the takeover when its success became inevitable.
In other countries, such payments would barely have raised eyebrows as top executives have little incentive to stay on after a takeover and Vodafone needed Esser’s expertise in particular to mastermind the sale of Mannesmann’s core engineering interests.
Originally, German public prosecutors said that Vodafone GEO Chris Gent was included in their investigations, but there is no indication that he is among those charged.
Source: Computerwire