IBM Corp is negotiating with Argentina’s state-owned Banco Nacion SA to annul a $249m contract at the center of a scandal (CI No 2,887), and to agree on compensation to be paid by the computer giant, Clarin reported. Banco Nacion wants $85m compensation from IBM for ending the contract, the paper said, citing unidentified sources in the Argentine government and IBM. It said IBM insists it should pay no more than $20m as a penalty for wrapping up the deal which ended in a major scandal over allegations the company’s Argentine branch won the contract tender in 1993 after paying a bribe. Banco Nacion will call a new tender within 12 months to computerize its branches; IBM would only confirm it was in talks.
