Bayer pays $66 million in price-fix case

German drugmaker agrees to a guilty plea and a fine for 
its part in the chemical price-fixing case.

July 14, 2004: 7:01 PM EDT

WASHINGTON (Reuters) - Germany's Bayer AG agreed to plead guilty 
and pay a $66 million fine as part of an ongoing U.S. investigation 
into price fixing of rubber chemicals, the Justice Department said 
on Wednesday.

Bayer will plead guilty to one felony count under charges that it 
conspired to suppress competition for products sold between 1995 and 
2001 and agreed to help the government in its ongoing probe, the 
department said.

"The company charged today will provide valuable assistance in our 
continued investigation in the rubber chemicals industry," James 
Griffin, deputy assistant attorney general, said in a statement.
		
The plea comes about four months after U.S. specialty chemicals 
maker Crompton Corp. (CK: Research, Estimates) agreed to plead 
guilty to price-fixing in the same market.

The U.S. market for rubber chemicals is worth about $1 billion a 
year. The additives are used to improve the elasticity, strength 
and durability of rubber products, such as tires, outdoor 
furniture, hoses, belts, and footwear, the Justice Department said.

Bayer took part in meetings and conversations in which companies 
agreed to raise and maintain prices of some rubber chemicals, and 
it exchanged information on the sale of rubber chemicals in the 
United States and elsewhere, the department said.