Retrial of Deutsche Bank chief set for October

The retrial of Josef Ackermann, Deutsche Bank's chief executive, and five co-defendants in the long-running Mannesmann bonus …

The retrial of Josef Ackermann, Deutsche Bank's chief executive, and five co-defendants in the long-running Mannesmann bonus case, will start in October, in a process that could drag on until mid-2007.

The retrial, which follows the acquittal of all six defendants in 2004, raises again the question of Mr Ackermann's future at the bank. He has said he would resign if found guilty.

The first trial was the biggest ever criminal prosecution involving a German company.

Deutsche Bank's supervisory board is backing its chief executive, and senior managers are optimistic about the retrial.

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"The political landscape in Germany has changed," one said, referring to the change in government. "Ackermann would step down if there was a risk to the franchise through a long retrial, but that is unlikely."

The case was brought after a public outcry over nearly €60 million of executive bonuses granted to directors of Mannesmann after it was acquired by Vodafone six years ago for nearly €180 billion.

The bulk of the money went to former chief executive Klaus Esser. But prosecutors brought a case not only against Mr Esser, on charges he conspired to receive the money, but also against five other directors, including Mr Ackermann, a former Mannesmann non-executive, for their role in approving the payments.

The prosecution, whose hand was strengthened by the decision of the federal appeals court to order a full retrial, has denied speculation that the case could yet be settled out of court.

This would involve the defendants paying fines, but they would not have to admit their guilt. Any settlement could only take place once the retrial starts on October 26th.

- (Financial Times service)