Sources inform ''Globes'' that Siemens AG (NYSE: SI; XETRA: SIE) has acquired the 25% stake in Siemens Israel Ltd. held by Israeli investors, including former Siemens Israel general manager Oren Ahronson, and now fully owns the company. The takeover follows the bribery scandal at Siemens Israel earlier this year.
In March, Ahronson petitioned the Labor Court for an injunction against his ouster. He is currently seeking a settlement with Siemens AG over the terms of his resignation.
The terms of the acquisition are not known, but industry sources believe that Siemens paid €10 million for the stake of Israel Ziegler Electrical Engineering (1976) Ltd. in Siemens Israel. Ahronson is a shareholder in Ziegler Electrical Engineering.
Siemens Israel was suspected of paying bribes to Judge emeritus Dan Cohen in order to promote the sale of Siemens turbines to Israel Electric Corporation (IEC) (TASE: ELEC.B22), who was chairman of the IEC tenders committee at the time. As a result, Siemens AG demanded Ahronson's removal on the grounds that he was personally involved in the scandal.
Ahronson claimed that Siemens AG was trying to make him the scapegoat, and that the attempt to oust him was an attempt to remove the Israeli shareholders from Siemens Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008