Shares of InVision Technologies (INVN) plunged Monday after the company said an internal investigation regarding payments by distributors could jeopardize its planned acquisition by General Electric (GE) - Get Report.
Newark, Calif.-based InVision, a maker of explosives detection products, announced after the bell on Friday that it was investigating possible offers of improper payments by distributors in connection with foreign sales activities.
The company said that it had already met with the U.S. Department of Justice and the
Securities and Exchange Commission
to discuss the matter. The SEC and the Department of Justice have indicated that they may have cause to investigate the company for possible violations of the Foreign Corrupt Practices Act, InVision said.
InVision said the federal probe may not be concluded by Oct. 31, the date at which GE can terminate the merger agreement if a transaction hasn't yet been completed.
Shares of InVision were recently down $6.69, or 13.47%, to $42.97.
contributor James Altucher noted Monday that because the bulk of InVision's prior profits have come from sales of its bomb-detection equipment to U.S. airports, the company has looked to expand its sales to foreign governments. "This investigation could be a major deterrent, particularly with increased competition (and perhaps superior technology) from rival
, not to mention