The Hungarian telecommunications company announced late last month that its board approved an agreement in principle with respect to the conclusion of a negotiated settlement with the SEC regarding the SEC’s investigation into whether the company’s Montenegrin unit violated the FCPA in connection with the signing of consulting contracts in 2005.

In March 2005, Magyar Telekom acquired a 73 percent stake in the Montenegrin unit (then known as Telekom Montenegro). Magyar Telekom started an internal investigation into the contracts a year later.

The proposed settlement, which does not include admission or denial of the alleged corruption, is subject to final approval by the company’s board, the SEC and the U.S. District Court.