By Liam Moloney
Saipem SpA (SPM.MI) on Wednesday said an internal investigation
found no evidence of illegal payments to Algerian officials,
although it discovered violations of internal procedures.
Saipem, Italy's biggest oil-services company by market value,
has shed about half of its market capitalization since the start of
the year after it emerged that it was being probed by Milan
prosecutors over possible corruption for some of its contracts in
Algeria, as well as issuing two profit warnings. It denies
wrongdoing.
On Wednesday, the company's market value was 6.61 billion euros
($8.59 billion).
In a statement, Saipem said the internal investigation was
conducted by external consultants in relation to some brokerage
contracts and subcontracts in Algeria. No evidence of payments to
Algerian public officials was found.
The Milan-based company said its board of directors decided to
take legal action against certain unnamed former employees and
suppliers to protect the interests of Saipem.
The company said it will hand over to Milan prosecutors the
results of the internal investigation.
The Italian company also said that, at the request of the U.S.
Department of Justice, it entered a "tolling agreement," which
extends by six months the limitation period applicable to any
possible violations of U.S. federal laws. The agreement doesn't
constitute admission of unlawful acts by Saipem, it added. Saipem
said it will offer total collaboration to any eventual
investigation by U.S. authorities.
Saipem's biggest shareholder is Eni SpA (ENI.MI, E), with a 43%
stake.
Write to Liam Moloney at liam.moloney@dowjones.com
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