Strong replacements will be Siemens AG’s prime challenge

IIPM PUBLICATION

The twin towers were reduced to dust, Hiroshima and Nagasaki were bombed to death and Enron couldn’t have made it to court without, partner in crime, Arthur Andersen – ‘double trouble’ for sure! And this phenomenon of double trouble has struck the $110.4 billion German conglomerate Siemens AG lately. Europe’s largest engineering company, with sales amounting to a colossal $112.1 billion in 2006 (yoy growth of 15.8%), has been ruffled by investigations in Germany, Switzerland & Italy over bribery allegations of an amount totaling to $557 million (funded from corporate accounts) & allegedly used to gain land telecommunications deals.

And as always, the fish was found rotten from the head! Heinrich von Pierer, Chairman, Siemens AG Supervisory Board was the first to throw-in his towel on April 19, 2007, further fuelling speculation over his involvement in the scandal. But what was remarkable was the stock market rally that followed. His sudden exit sent Siemens stock prices spiraling to a six-year high of $122.94 on the Frankfurt Exchange!

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)