Ackermann facing new legal wranglings

20 October 2006

The chief executive of Deutsche Bank Josef Ackermann is facing new allegations this week that he breached his fiduciary duty in promoting Clemens Borsig to the position of chairman of Deutsche Bank, replacing Rolf Breuer.

Media baron Leo Kirch claims that Mr Ackermann failed to act in the interests of shareholders in appointing the former financial director.

Mr Kirch was formerly in charge of the Kirch media group – the collapse of which he has blamed on Deutsche Bank.

The possibility of further litigation for Mr Ackermann comes at an inconvenient time for the chief executive, as he is due to stand trial in a few days in the retrial of the Mannesmann case, in which he is accused of unjustifiably awarding around $53 million in bonuses following the takeover of Mannesmann by Vodafone.

Reuters has reported insiders claiming that Mr Ackermann is now seeking an out of court settlement on that particular case, with the concern that a guilty verdict could force him to quit his job.

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