InVision Inquiry Could Threaten G.E. Deal
nytimes.com
By BLOOMBERG NEWS
Published: July 31, 2004
InVision Technologies Inc., which is being acquired by General Electric, could face two federal investigations after an internal inquiry showed possible improper payments by distributors tied to sales outside the United States, the company said yesterday.
Either company can call off the $900 million purchase if it is not completed by Oct. 31, InVision said in a statement.
The Justice Department and Securities and Exchange Commission may investigate the matter, and their work could extend beyond the deadline, InVision said.
G.E. said in a statement that it was hopeful the matter would be resolved and "continues to want to conclude the acquisition." In March, G.E. agreed to buy InVision, which is based in Newark, Calif., and is the largest maker of explosives detectors used in airports.
InVision said that it had told the Justice Department and S.E.C. about the internal investigation, conducted "in consultation" with G.E. The investigation revealed possible "violations of the Foreign Corrupt Practices Act," InVision said. A spokesman for G.E., Jeff DeMarrais, and Stan Neve, a spokesman for InVision, declined to comment beyond the companies' statements. |
