The US has unveiled charges against former Rolls-Royce Holdings (LON:RR) executives for their alleged role in a bribery scheme, The Telegraph has reported. The news comes after earlier this year, the British engine maker agreed to pay £671 million to UK, US and Brazil authorities to settle bribery allegations, apologising ‘unreservedly’ for cases of corruption spanning nearly quarter of a century.
Rolls-Royce’s share price has been subdued in London this morning, having fallen 0.51 percent to 971.00p as of 09:30 GMT, underperforming the benchmark FTSE 100 index which has climbed into positive territory and currently stands 0.13 percent higher at 7,523.21 points. The group’s shares have added more than 35 percent to their value over the past year, and are up by some 45 percent in the year-to-date.
Kazakhstan bribery charges
The Telegraph reported this morning that the US Department of Justice had unsealed charges against five individuals for their alleged role in a scheme to pay bribes to foreign government officials to benefit Rolls-Royce and help secure a contract to provide services for a major gas pipeline from Central Asia to China.
The move comes after Rolls-Royce admitted in this year’s settlement to paying officials at state-run energy companies in Kazakhstan, Thailand, Brazil, Azerbaijan, Angola and Iraq more than $35 million in order to win contracts.
The newspaper quoted a spokesman for the British engine maker as saying in a statement that the company “has committed to full ongoing co-operation with the Department of Justice and cannot comment on action against individuals”.
Analysts on Rolls-Royce
The 18 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 758.00p on the shares, with a high estimate of 1,208.00p and a low estimate of 560.00p. As of November 4, the consensus forecast amongst 22 polled investment analysts covering the blue-chip engine maker advises investors to hold their position in the company.