Details Emerge on Caterpillar-Siwei China Imbroglio

January 23, 2014

A new report from Reuters maintains accounting problems were "rampant" at Chinese mining industry manufacturer Siwei before Caterpillar purchased the company in 2012, but that Cat may have ignored problems so it could finish the $667 million deal.

In a later settlement that reduced Cat's obligations by $135 million, Caterpillar claimed it had uncovered "deliberate, multiyear coordinated accounting misconduct" at Siwei after the deal was completed.

Now, the dismissed Siwei chairman, Wang Fu, has added his voice to the news service's review of public documents and sit-downs with bankers, board members, and financial advisors. He paints a complicated picture of "he said-they said."

Source: Reuters