Court battle awaits Josef Ackermann

In public, the man is a cool customer. But in the coming months, Josef Ackermann, chairman of Deutsche Bank, will need all his reserves of military calm. The former Swiss Army colonel is shaping up for a tough and mind-sapping court battle.

It will be a fascinating spectacle. Germany's top banker, Mr Ackermann, its leading trade unionist, Klaus Zwickel, and one of its leading businessmen, Klaus Esser, face possible humiliation or disgrace.

They are charged with embezzlement relating to the €120m (£80m) paid to Mannesmann managers and directors following its €188bn takeover by Vodafone in 2000.

For Mr Ackermann, there will be no weakness. "You understand perfectly well my position," he told a questioner who asked whether he would stay on at Deutsche even though he has been charged.

He said: "All leading German politicians have advised me not to be influenced by the charges."

Mr Ackermann did not benefit from the payments. As a member of Mannesmann's supervisory board, he simply agreed to them being made – and only after consulting lawyers.

Moreover, he is convinced that the payments were morally as well as legally justified. He said: "The amounts were not too high. I see the whole matter calmly."

Mr Esser, former Mannesmann chairman, received the largest payment, some €30m.

For Mr Ackermann, who has worked as an investment banker in London and New York, this payment is totally in keeping with Anglo-Saxon practice. Directors losing their jobs after a takeover often enjoy such "golden parachutes". Moreover, as he pointed out, dozens of Deutsche employees earn €20m annually.

The prosecutor in Düsseldorf sees it differently, saying the payments could be an illicit reward for backing the Vodafone bid – although that bid brought Mannesmann investors €77bn in added value.

The fracas could be seen as a clash between Anglo-American business practice and the German legal system. That is roughly Mr Ackermann's line. Many deal makers in the City will concur and sympathise.

But outside the charmed world of mega-bonuses, people do see these things differently – in Germany, in Britain and, following Enron, increasingly in the US.

The German prosecutor can count on strong public support. The press is looking forward to fun.

This is unfortunate for Mr Ackermann. He has made a promising start to reshaping Deutsche, cutting costs and selling unwanted assets and businesses. The state of the world's markets and the German economy have not helped, but Mr Ackermann is making progress.

At best, the court case will be a distraction for someone who spends much of his working life on planes. At worst, German lawyers suspect, Mr Ackermann might get a suspended sentence and be forced to quit.