U.K. confirms probe of ‘suspected bribery' at Bombardier; company reports US$192M Q3 profit
Bombardier Inc. fell after the U.K’s Serious Fraud Office confirmed that it was investigating the company over “suspected bribery and corruption.”
The probe involves the company’s dealings with Garuda Indonesia, the SFO said in a statement Thursday. The airline ordered Bombardier CRJ regional jets, with the first delivery in 2012.
“As this is a live investigation, the SFO can provide no further comment,” the SFO said.
Indonesia’s anti-corruption agency last year detained Garuda’s former head as part of a probe into procurement of aircraft and engines.
The SFO inquiry adds a new complication for Chief Executive Officer Eric Martel’s attempt to remake Bombardier as a builder of private jets after the company sold its CRJ business to Mitsubishi Heavy Industries Ltd., unloaded a commercial-jet program to Airbus SE and agreed to merge its rail unit with Alstom SA.
Bombardier dropped 1.7 per cent to 29 Canadian cents at 11:44 a.m. in Toronto, erasing gains earlier in the session.
Before trading opened, the Montreal-based company reported a wider-than-expected loss for the third quarter and said it had begun an internal review by outside counsel into its transactions with Garuda.
U.K. confirms probe of ‘suspected bribery' at Bombardier; company reports US$192M Q3 profit - BNN Bloomberg
Bombardier Inc. fell after the U.K’s Serious Fraud Office confirmed that it was investigating the company over “suspected bribery and corruption.”
www.bnnbloomberg.ca