Ariba Plans to Restate Results Amid Probe

Ariba(ARBA Quote), a maker of e-commerce software, said Wednesday that it will restate its financial results dating back to fiscal 2000, in order to reflect an accounting probe involving a payment between two of the firm's top executives.

The company's shares tumbled 28 cents, or 8%, to $3.22 on the news. In 2002, the stock lost nearly 60% of its value.

At issue is a $10 million personal payment made by Keith Krach, the company's chairman and chief executive, in March 2001 to Larry Mueller, who was president and chief operating officer at the time, one month prior to his promotion to CEO. Since no company funds were used and there was no commitment from Ariba, the company initially viewed the payment as a personal transaction. But the company's audit committee later determined that the payment should have been accounted for as an investment in the company and subsequent compensation payout. ...