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Thu 28 Apr 2011 05:26 PM

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Abu Dhabi's IPIC pushes for Ferrostaal settlement

Abu Dhabi's fund aims to settle a dispute quickly with truck maker MAN SE over the German company's unit

Abu Dhabi's IPIC pushes for Ferrostaal settlement
EUROPEAN INVESTMENT Abu Dhabis IPIC fund said it is pushing to settle a dispute quickly with German truck maker MAN SE over unit Ferrostaal (Bloomberg Images)

Abu Dhabi's IPIC fund said it is pushing to settle a dispute quickly with German truck maker MAN SE over unit Ferrostaal.

"IPIC submitted to MAN a fair proposal for all parties and continues to seek an amicable settlement as soon as possible," a spokesman for IPIC said on Thursday.

MAN has been trying to offload Ferrostaal and sold 70 percent of the company to IPIC in 2009.

But when it tried to sell the remaining 30 percent to IPIC via a put option in early 2010, the sovereign wealth fund refused a deal due to a bribery investigation and later sought to annul the original purchase agreement.

German prosecutors this month brought bribery charges against two former managers of Ferrostaal in connection with submarine sales to Greece and Portugal.

IPIC rejected an offer by MAN for an out of court cash settlement.

"A solution will not be reached at any price," the spokesman said. "One should not forget that above all IPIC is confronted with the consequences of a compliance scandal that refers back to the time when IPIC was not at all involved."

MAN declined to comment.

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