Deutsche boss charged over takeover

CRIMINAL charges were filed today relating to the Vodafone-Mannesmann takeover battle that changed the face of Germany Inc.

Swiss-born Josef Ackermann, 55, chief executive of Deutsche Bank, was indicted at the State court in Dusseldorf. He faces charges of breach of trust in the tussle that saw a corporate crown jewel of Germany fall to a foreign competitor in a hostile takeover.

The former Swiss Army colonel's plight has infuriated Deutsche. One insider said: 'This is one of the few German enterprises making money - 80% of it from outside Germany with an Anglo-Saxon orientation - and this is how it is treated. The mood is one of betrayal.'

Ackermann unsuccessfully asked the court in July to drop charges against him relating to £70m in pay-offs made to executives of German telecoms company Mannesmann. The payments were agreed by a Mannesmann committee on which Ackermann sat when the company was fighting the hostile bid from Vodafone.

Ackermann has been charged with breach of trust relating to the payments. Four others have also been charged, including Klaus Esser, former head of Mannesmann, and Klaus Zwickel, head of the German trade union IG Metall.

German prosecutors argue the payments to Mannesmann executives were linked to their decision to give up their opposition to the Vodafone bid.

His counsel insist that the payments made were 'appropriate' because they had made an 'exceptional contribution to an increase in the value of Mannesmann unique in the history of the company'.