Ferrari End Mclaren Feud But Keep Heat on Stepney

Ferrari today announced that it has agreed to call off its legal action against McLaren in return for a donation to ­charity. The Anglo-German team said it has also agreed to settle Ferrari's legal costs. But, contrary to some reports, the Italian team's decision does not spell the end of the formula one "spy scandal". Not only is Ferrari pressing ahead with a civil suit against its former engineer Nigel ­Stepney, but criminal inquiries are continuing in Italy in which Stepney, the McLaren team principal, Ron Dennis, and several of his executives remain formally under suspicion.

A statement from Ferrari headquarters at Maranello near Modena said the team had "accepted McLaren's renewed apologies" for events during the 2007 season. It added that "in the interests of formula one and taking into account the closure of the sporting proceedings undertaken by the FIA and the World [Motor Sport] Council in respect of McLaren", it had "agreed to put an end to all legal proceedings still open between the two parties".

Ferrari is also understood to have dropped its action against McLaren's former chief designer, Mike Coughlan, and his wife Trudy, who were found to have a 780-page dossier on Ferrari and its formula one plan at their home. The statement added that it had received a ­"concluding payment" from McLaren that it would donate to charity.

Little has been heard recently from the criminal inquiry in which Dennis and four of his top managers are under investigation. Under Italian law, the prosecutor must stipulate the offenses he suspects have been committed, even before laying charges. In this instance, the suspected crimes are industrial espionage, unlawful possession, copyright violation and sporting fraud.

The settlement, rumored to be worth a total of $1.5m (£754,000), comes just over 12 months after Coughlan, was found to be in possession of the dossier which was allegedly supplied to him by Stepney. Suspicions had initially been aroused when Ferrari said a white powder had been found around the petrol caps of their cars before last year's Monaco grand prix that matched powder subsequently found in Stepney's trousers. Stepney has denied all ­wrongdoing. Coughlan was suspended by McLaren when the original allegations were made last summer and subsequently dismissed by the company earlier this year. The saga resulted in McLaren losing their points in the 2007 constructors' world championship and receiving a £50m fine from the FIA.

"In the light of the formal closure in December 2007 of the FIA and FIA world motor sport council proceedings, and of McLaren's public apology to Ferrari which we have reiterated, Ferrari and McLaren have agreed to bring the various disputes between them in this matter to a final ­conclusion," read an official statement from McLaren. It continued: "McLaren has also agreed to the reimbursement of Ferrari's [legal] costs and expenses related to these matters and a concluding payment."

Ferrari's willingness to reach a conclusion on this controversial issue is seen as a reflection of the conciliatory approach adopted by Stefano Domenicali, the new team principal who took over from the hardline Jean Todt at the start of 2008. Although convinced that Ferrari had been badly wronged by their rivals, his desire to bring closure to the issue reflected a desire that the team's efforts should remain uncomplicated by emotional baggage left by previous disputes.