VIENNA May 7 Prosecutors in the Austrian city
of Linz said on Wednesday they had dropped a criminal
investigation into whether staff at lender BAWAG PSK
duped the municipal government into a 2007 swap deal, after
finding no evidence of wrongdoing.
BAWAG has long defended its handling of the deal, which the
Linz government is trying to unwind in a separate civil legal
"Investigations that were conducted showed no evidence that
people linked to BAWAG deliberately misled the city of Linz or
contributed to any potential breach of trust," the prosecutors
said in a statement.
BAWAG, which is owned by Cerberus Capital Management
, hailed the decision. "The attempt by Linz's lawyers to
criminalise BAWAG PSK staff has failed," it said in a statement.
($1 = 0.7177 Euros)
(Reporting by Michael Shields; Editing by Andrew Heavens)