Ternium S.A. (TX) Chairman Allegedly Knew About Bribes to Government Officials
According to the complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between May 1, 2014 and November 27, 2018, on May 7, 2009, Ternium S.A. (TX) sold its 59.7% stake in Venezuelan steel company Sidor to Corporacion Venezolana de Guayana for almost $2 billion. Ternium subsequently represented to investors that the company does not condone the offering or receiving of bribes or any other form of improper payments. However, Ternium’s Chairman and Argentine billionaire, Paolo Rocca, knew that one of his company’s executives paid cash to government officials from 2009 to 2012 to expedite compensation payments for the sale of Ternium’s Sidor unit. On November 27, 2018, Bloomberg reported that Rocca was indicted for his role in a graft scheme, set a $103 million bond, and forbade Rocca from leaving the country. On this news, Ternium’s stock fell nearly 5% to close at $28.02 per share on November 27, 2018.
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