InVision Technologies Announces Internal Investigation; Investigation Could Impact Acquisition by General Electric
InVision Technologies (InVision), one of the leading producers of explosives detection equipment used in airport security, announced today that is conducting an internal investigation and has made a voluntary disclosure to the Department of Justice (DOJ) and the Security and Exchange Commission (SEC) regarding possible violations of the Foreign Corrupt Practices Act (FCPA). The potential FCPA violations relate to offers of improper payments by distributors in connection with InVision's foreign sales activities. InVision has been informed that DOJ and the SEC may commence a formal investigation into this matter.
InVision's announcement may have an adverse impact on its pending merger with General Electric (GE). Earlier this year, GE agreed to acquire InVision in a cash merger and the merger was to be completed by October 31, 2004. In its announcement, InVision stated that the internal investigation and any investigation by DOJ and the SEC may not be completed by October 31, 2004. Under the terms of the merger agreement, if the acquisition is not completed by October 31, 2004, either InVision or GE may be entitled to terminate the merger.
|posted by Douglas N. Jacobson| Permalink 
