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From MarketWatch, some speculation on how this effects the bottom line:

It’s “negative,” said BMO Capital Markets analyst Wayne Hood in an interview, adding this could also spur executive changes. “The bigger issue is will competitors and activists use this against them to prevent Wal-Mart’s expansion into certain markets? It’ll be one tool and a reason they would use.”

Hood said a group of shareholders also may seize on the opportunity to pressure the company to return capital to investors in the form of increased dividends or share repurchases instead of pursuing overseas acquisitions or expansion. The company’s profit could also be hurt over time by legal and other expenses, the analyst said, citing as an example Avon Products Inc. AVP -1.64% , which, mired in its own Foreign Corrupt Practices Act scandal, faces about $100 million in related annual expenses, Hood said.

Avon recently named former Johnson & Johnson executive Sherilyn McCoy as its new CEO, replacing Andrea Jung, as analysts said the investigation into its alleged bribery in China and whether there are other markets involved had distracted management attention.

At Wal-Mart, management remains an ongoing challenge with Wal-Mart’s international business, Hood said, pointing to the company’s management change in China as a recent example.

International has been a key part of the Bentonville, Ark.-based company’s growth strategy. Hood estimated overseas sales could total $132.2 billion for Wal-Mart this year to become 29% of the company total, up from 24% in 2007. Brazil and China will be a key part of the expansion, he said.

The Times also said current company executives including Chief Executive Mike Duke knew of the bribe claims while former CEO Lee Scott reprimanded internal investigators as overaggressive. The report also cited a former company employee in reporting that Wal-Mart Vice Chairman Eduardo Castro-Wright, who at one time headed the Mexican unit, was responsible for the company’s increased use of bribes in that country.
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