Thales shares tank on Anglo-French bribery investigation
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PARIS, Nov 22 (Reuters) -Thales TCFP.PA shares fell sharply on Friday after Britain's Serious Fraud Office said it and French authorities were investigating suspected bribery and corruption at the company.
Shares in the group, in which the French state holds a 26.6% stake, were around 5% lower in early trade, on track for their biggest one-day slump in four months.
A Thales spokesperson on Thursday said the company was cooperating with the authorities in an investigation related to four of its entities in France and Britain, and that it always complied with national and international laws.
A French judicial source told Reuters that the investigation related to an arms contract in Asia, centring on possible charges of bribery of a foreign public official, influence trafficking, handling stolen goods, and money laundering.
"At this point, the related contract under investigation remains unknown, making any potential assessment of the risk challenging," Jefferies analysts said in a note.
The company produces a vast amount of onboard electronic equipment, radiology and telecommunications systems for civil and military use, and provides cybersecurity services.
It has 16 sites in Britain, with more than 7,000 staff. In September it said its local CEO had expressed his wish to leave the group with a replacement taking office this month, without giving further details.
Military procurement has been hit by numerous high-stakes investigations in recent years.
European planemaker Airbus reached a trio of deferred prosecution agreements in January 2020 and agreed to pay record fines totalling 3.6 billion euros ($3.74 billion) following investigations in Britain, France and the U.S.
Thales is effectively controlled by the French state in a shareholder pact with Dassault Aviation AM.PA, the maker of France's Rafale fighter jets, which together hold a majority. Dassault shares were down 2.7% as of 0826 GMT.
The French economy ministry did not immediately reply to a Reuters request for comment.
($1 = 0.9619 euros)
Reporting by Tim Hepher, Piotr Lipinski and Tassilo Hummel; Editing by Jan Harvey
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