General Cable wrapping up bribery probe

General Cable Corp. says it's winding down a multi-million dollar internal investigation of foreign transactions that might have breached a U.S. anti-bribery law.

The company says it has disclosed its review to both the U.S. Department of Justice and the U.S. Securities and Exchange Commission and is cooperating with both agencies. The company said it could not predict how long it would take regulators to conclude their work or what fines or penalties it could face. On Wednesday, the Highland Heights-based wire and cable producer announced it plans to sell off its Asian and African operations as part of an accelerated restructuring plan.

Part of its African and Asian operations have proven to be a distraction: the company disclosed Wednesday it has spent millions conducting the internal review of a subsidiary's conduct in Angola. Specifically, the company is looking at commission payments involving employees of utility companies and how the subsidiary accounted for such transactions. The company is also reviewing payment practices in India and Thailand.

The Foreign Corrupt Practices Act of 1977 law prohibits the payment of bribes to foreign officials to assist in obtaining or retaining business.

"Our outside legal counsel has reviewed over 450,000 documents and interviewed approximately 20 individuals representing most of the interviews they currently intend to complete," said Brian Robinson, the company's chief financial officer told analysts on a conference call. "If there are no significant new developments, then we anticipate that our internal investigation will be concluded or substantially concluded during the first quarter of 2015." He told analysts the probe had cost less than $10 million.

The company said on Wednesday it was developing a divestiture strategy for the Asian and African operations that generate $1 billion worth of annual revenue – roughly 17 percent of total sales. The Fortune 500 company has nine plants in Asia and five in Africa.

General Cable also said Gregory Kenny, the company's president and CEO, would be stepping down after a search committee finds his replacement. Kenny, who has been at the helm since 2001, is expected to become board chairman upon the appointment of a new CEO.

The moves came as General Cable announced a $124 million loss or $2.55 per share for the third quarter. Revenues were $1.47 billion. Shares in the company, which closed Friday at $14.17, have fallen more than 50 percent in the last year.

Finally, General Cable said it was also looking for a new independent "operations experienced" director to join its board.

Standard & Poor's placed General Cable on negative credit watch earlier this month after the company withdrew a $250 million bond offering in September. Currently, the company has a rating of BB minus or below investment grade. S&P's negative listing means it could "afford or lower the ratings" following a review

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