InVision, GE deal hits a roadblock
NEWARK, Calif. - General ElectricÃ¢â‚¬â„¢s plans to buy explosive detection company InVision Technologies could be in jeopardy of closing soon with the announcement that regulators may launch a probe into improper payments at InVision.
In late July, InVision Technologies revealed that an internal investigation uncovered improper payments by company distributors in foreign sales. According to a company issued press release, the payments could be in violation of the Foreign Corrupt Practices Act.
InVision Technologies manufactures baggage screening products used by airports in the United States and overseas.
GE had hoped to close on the $900- million transaction in July, four months after it first announced the deal. However, a possible Securities and Exchange Commission investigation may not be completed until the end of October, further delaying the deal.
In June, the two companies appeared to have solved one stumbling block, when they announced plans to settle a pending lawsuit filed against the deal. The lawsuit claimed that InVision Technologies officials could have negotiated a higher price for the company, in light of a contract win with the Transportation Security Administration.