ROME--Saipem SpA (SPM.MI) is the subject of a corruption
investigation, and its chief executive has stepped down, the board
of the Italian company said Wednesday.
Pietro Franco Tali offered to resign as CEO, even though he is
not a subject of the judicial probe, saying it would allow the
company a better opportunity to defend itself, the board said.
Umberto Vergine, a board member at the Italian oil-field services
provider since 2010, will take over as chief executive, Saipem
said.
The company has also suspended Pietro Varone, chief operating
officer of its engineering and construction business unit, Saipem
said, indicating the executive has been individually notified by
magistrates that he is a possible suspect in the corruption
probe.
Italian judicial procedures require that subjects of probes to
be informed they are suspects. Such notification does not
constitute a formal charge or even allegation.
Saipem's shares were suspended from trading around midday
Wednesday.
Write to Christopher Emsden at chris.emsden@dowjones.com
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