Bombardier falls as UK confirms probe of ‘suspected bribery’

Bombardier Inc. fell after the U.K’s Serious Fraud Office confirmed that it was investigating the company over “suspected bribery and corruption.”

The probe involves the company’s dealings with airline Garuda Indonesia, the SFO said in a statement Thursday. The Indonesian airline ordered Bombardier CRJ regional jets, with the first delivery in 2012.

“As this is a live investigation, the SFO can provide no further comment,” the SFO said.

The inquiry adds a new complication for Chief Executive Officer Eric Martel’s attempt to remake Bombardier as a builder of private jets after the company sold its CRJ business to Mitsubishi Heavy Industries Ltd., unloaded a commercial-jet program to Airbus SE and agreed to merge its rail unit with Alstom SA. Indonesia’s anti-corruption agency last year detained Garuda’s former head as part of a probe into procurement of aircraft and engines.

Bombardier fell 3.4% to 29 Canadian cents at 10:29 a.m. in Toronto.

Before the session, the Montreal-based company reported a wider-than-expected loss for the third quarter and said it had begun an internal review by outside counsel into its transactions with Garuda.

“The corporation has met with the SFO to discuss the status of the corporation’s internal review and its potential assistance with the SFO investigation on a voluntary basis,” Bombardier said.

A Swedish court three years ago acquitted a company employee of bribery in connection with an Azerbaijan rail contract.