Bayer pleads guilty to rubber chemicals price-fixing charges
SAN FRANCISCO-Bayer A.G. has pleaded guilty to price-fixing charges related to the sale of rubber chemicals during 1995-2001 and agreed to pay a fine in the U.S. of $66 million.
The agreement with the U.S. Department of Justice, which is subject to court approval, is expected to resolve all criminal charges against Bayer in the U.S. for activities related to its rubber chemicals business, Bayer said.
Charges against the company in Canada and Europe are pending, as are several civil lawsuits by customers seeking compensation. Bayer said it would take a provision against second-quarter earnings to account for the fines.
The company said it cooperated with the Justice Department throughout the investigation and "will not tolerate violations" in the future.
Myers Industries says it may have violated laws
AKRON-Myers Industries Inc. has notified the U.S. Department of Justice and Securities and Exchange Commission its tire products distribution business may have violated U.S. and foreign laws in the way it conducted business internationally.
Myers said the business practices being scrutinized "involved a limited number of customers, related to the invoicing of certain international sales, and to sales made to customers in certain international jurisdictions." These business practices were terminated immediately upon their discovery by the company's own investigation, Myers said.
The company said it believes the practices in question had no effect on previously filed financial statements, and that the final findings from the investigation will not lead to any restatement of reported financial results.
Investor group to buy Dana automotive aftermarket business
TOLEDO, Ohio-Dana Corp. plans to sell its automotive aftermarket business to New York-based private equity firm Cypress Group for about $1.1 billion in cash.
Proceeds from the sale will be reinvested in the company's core businesses, contributed to its pension plans and used for debt reduction, according to Michael Burns, Dana chairman and CEO.
The sale, expected to close in the third quarter, includes 52 facilities and 13,000 employees. Combined annual sales for the aftermarket operations totaled nearly $2 billion in 2003.
The transaction doesn't include Dana's distribution and marketing operations for its engine products, such as piston rings, gaskets and engine bearings, which Dana will retain as part of its Automotive Systems Group.