Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Italy: Finmeccanica In The Dock

ByMetalMiner
Published 02/19/2013, 12:58 AM
Updated 07/09/2023, 06:31 AM

First, we are not alleging anything untoward has taken place; but in our defense, it couldn’t happen to two countries more stereotypically labeled as engaging in corrupt practices.

According to a quote in several FT articles by India's Defense Minister, Mr. A.K. Antony, India was ready to cancel a $750 million contract to buy AW101 helicopters from Italy’s Finmeccanica (FNC.MI), which it did as investigators concluded that the deal was corrupt.

Giuseppe Orsi, who’s already been replaced as chairman and chief executive atFinmeccanica , and Mr. Bruno Spagnoli, the head of the AgustaWestland helicopter unit, have both been placed under house arrest as part of a domestic investigation into allegations of bribing intermediaries in the sale of 12 luxury helicopters to ferry Indian VIPs around the country.

Some say the timing is political, with only two weeks to the Italian elections and efforts to revive Finmeccanica, which is said to be identified with Mario Monti’s technocrat government.

Finmeccanica is Italy’s second-largest industrial group after Fiat, and the allegations follow corruption allegations that surfaced at Monte dei Paschi di Siena, the country’s third-largest bank by assets, as well as state-controlled energy group Eni and its Saipem subsidiary.

In India, Shashi Tyagi, a former Indian air force chief, is under suspicion after he was named in the preliminary report of the Italian investigation. He denies that he had changed the terms of India’s helicopter tender to favor AgustaWestland.

The maximum altitude requirement for the helicopters was lowered in 2003 from 18,000 to 15,000 feet, because only one model of helicopter originally qualified that was unsuitable, Mr. Tyagi is quoted as saying.

by Stuart Burns

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.