* Siemens says damages relate to corruption investigation
* Says 3 ex-board members prepared to settle in Nov
* Says each would pay Siemens damages of 500,000 euros
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FRANKFURT, Aug 28 (Reuters) - German industrial conglomerate Siemens is on the verge of reaching a settlement with three former board members on its claim for damages in connection with a corruption investigation. The company said on Friday that it and the three former managers aimed to settle the matter to mutual satisfaction.
Siemens had agreed in December to pay more than $1.3 billion to settle corruption probes in the United States and Germany, ending two years of controversy that rocked the German engineering conglomerate.
The U.S. authorities said Siemens made almost $1.8 billion in improper payments to government officials and third parties from March 2001 through 2007 in elaborate schemes involving employees at all levels.
The company had said it wanted to claim damages from 11 former top managers including former Chairman Heinrich von Pierer and ex-Chief Executive Klaus Kleinfeld for failing to stop illegal practices and bribery at the company.
Von Pierer and Kleinfeld resigned from their posts in 2007. They were not accused of crimes and both denied any wrongdoing.
Siemens said on Friday its former managers Klaus Wucherer, Rudi Lamprecht and Edward G. Krubasic were prepared to reach a settlement with Siemens in November under which each of them would pay the company 500,000 euros ($718,000).
The three have also informed Siemens that legal proceedings by Munich public prosecutors for breaches of their supervisory duties in the corruption affair have been closed.
Siemens said it was also holding talks with the other former members of the managing board and expected further agreements to follow in the near future. (Reporting by Marilyn Gerlach; Editing by David Holmes) ($1=.6964 EURO)