Monday, January 21, 2008

Siemens May Be Fined as Much as EU4 Billion by U.S., WiWo Says

By Oliver Suess and Philipp Grontzki

Jan. 21 (Bloomberg) -- Siemens AG, Europe's biggest engineering company, may be fined as much as 4 billion euros ($5.8 billion) after a probe by the U.S. Securities and Exchange Commission, WirtschaftsWoche reported, citing unidentified members of the company's supervisory board.

A fine of that size would be possible if the SEC and the Department of Justice set it at three times the amount of uncovered bribery payments, the magazine said. Siemens had expected a fine of no more than about 1 billion euros, WiWo said.

Since November 2006, the Munich-based company has been the focus of various probes into allegations that employees used slush funds to bribe clients for orders.

Siemens spokesman Constantin Birnstiel declined to comment when contacted by Bloomberg by telephone.

To contact the reporter on this story: Oliver Suess in Munich at osuess@bloomberg.net

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