Vodafone said today it had investigated payments made to Mannesmann directors after its takeover by the British group and said they were in line with German law.
German prosecutors said yesterday they were investigating Vodafone chief executive Mr Chris Gent over payments made to Mannesmann managers after Vodafone’s acquisition of its German rival last year.
The investigation, launched last March, is also looking into the role of former Mannesmann supervisory board members including Mr Klaus Zwickel, chairman of the powerful IG Metall union, and Deutsche Bank board member Mr Josef Ackermann.
As members of the supervisory board they approved payments for Mannesmann management board members totalling some 120 million marks (euro 61 million) after the euro 180 billion takeover was agreed by Mannesmann in February 2000.
Prosecutors are investigating whether Mannesmann chief executive Mr Klaus Esser was persuaded to accept Vodafone's hostile takeover offer by a euro 31 million severance payment cleared after management agreed to the bid.
It is also examining a separate package of pension-related payments to former Mannesmann management board members also amounting to euro 31 million.