Senior executives at MAN and Abu Dhabi investment company IPIC are making noises that they are prepared to return to the negotiation table to settle the long-running saga over ownership of Ferrostaal.
IPIC bought 70% of Ferrostaal from MAN in 2009, with a view of purchasing the company outright. Soon after, IPIC stalled its acquisition of the plant company from MAN after German authorities announced they were investigating allegations that senior Ferrostaal executives had been part of a global contract and money scandal.
Potentially Ferrostaal could be liable for nine figure compensations in tax payments and penalties writing off a substantial amount of the $650 million that IPIC has already shelved out.
In April MAN, under pressure from major shareholder VW who wanted the issue resolved to clear a merger with its other truck asset Scania, suggested that it would be prepared to knock down the price of Ferrostaal to facilitate the sale. However IPIC refused the offer, maintaining that it wanted to roll-back the deal. Subsequently MAN withdrew the offer leaving the ownership of Ferrostaal to be settled by arbitration.
Now both companies finally seemed to be preparing to re-open talks.
Last week MAN CEO Georg Pachta-Reythofen was quoted in a German newspaper as saying that the agreement could be reached “as soon as possible”.
“We will hold constructive talks. The faster the better. Nobody can live with the (current) situation,” said Pachta-Reythofen. We are not afraid of the responsibility for the past – certainly we will not assume the risks of the future.”
In another interview IPIC’s vice chairman Khadem al-Qubaisi, echoed Pachta-Reythofen’s optimism.
“We see the statements as a clear confirmation that MAN is now ready to find a solution together with us,” he said.
