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ANZ faces criminal charges over alleged cartel conduct

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ANZ faces criminal charges over alleged cartel conduct

Australia & New Zealand Banking Group Ltd. faces criminal charges over "alleged cartel conduct" in relation to a 2015 share issuance, while two of the issue's underwriters, Deutsche Bank AG and Citigroup Inc., are also expected to face the same charges.

ANZ said June 1 that Australian prosecutors intend to commence proceedings against itself for being knowingly concerned in alleged cartel conduct by the joint lead managers of its equity placement of 80.8 million shares in 2015.

The expected charges follow a criminal investigation by the Australian Competition & Consumer Commission, or ACCC. The charges involve alleged cartel arrangements in relation to the trading of ANZ's shares following the 2015 placement, according to ACCC Chairman Rod Sims.

Prosecutors also plan to bring proceedings against ANZ Group Treasurer Rick Moscati, as well as bring criminal cartel charges against Deutsche Bank and another company, along with a number of individuals, the ACCC said.

Deutsche Bank and Citigroup said in separate statements that they expect to be charged, Reuters reported June 1. Deutsche Bank said it will defend the charges, while Citigroup denied the allegations. The two banks underwrote the share issue with JPMorgan Chase & Co., which declined to comment to Reuters. All three banks denied any wrongdoing, the report said.

The Australian Securities and Investments Commission is also investigating the placement, particularly over whether the bank's announcement regarding the placement should have stated that the joint lead managers took up approximately 25.5 million shares of the 80.8 million share placement, ANZ said.

ANZ said it plans to defend the company and Moscati.