London Stock Exchange Deputy Chairman in Italian Bribery Probe -Telegraph

LONDON--London Stock Exchange Group PLC (LSE.LN) has been dragged into a bribery scandal in Italy after it emerged that its deputy chairman, Paolo Scaroni, was under investigation by prosecutors, the Telegraph in London reported Saturday.

Mr. Scaroni, who is also chief executive of energy group Eni SpA (ENI.MI, E), is being investigated by Milan prosecutors looking into the alleged payment of bribes to win contracts in North Africa.

Investigators are reported to be examining 7 billion pounds ($11 billion) of contracts won by oil services group Saipem SpA (SPM.MI), which is 43% owned by Eni.

In a statement, Eni said, "Eni acknowledges that the prosecutor has decided to extend the investigation to include Eni and its chief executive officer," adding that "Eni and its CEO declare themselves totally unrelated to the object of investigation."

Eni confirmed that officials had searched Mr. Scaroni's house as well as the company's office, the Telegraph added.

The prosecutors are accusing Eni of paying bribes worth GBP170 million from 2007 until 2009 to a Hong Kong-based company to secure contracts with Algeria's state-owned energy group, Sonatrach.

Newspaper website: http://www.telegraph.co.uk

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