Thales, a key supplier to the Armed Forces and Europe’s largest defense technology firm, has denied unspecified allegations following the announcement of a bribery and corruption investigation by the UK’s Serious Fraud Office (SFO) and France’s PNF financial prosecutor.
The investigation relates to a contract in Asia and involves four Thales entities in France and the UK, though no further details have been disclosed.
“Thales denies the allegations brought to its knowledge,” the company stated, adding that it is fully cooperating with authorities.
Shares in Thales, partially owned by the French state, fell by as much as 7% following the news.
A French judicial source informed Reuters that the case centers on an arms contract in Asia, with potential charges including bribery of a foreign public official, influence trafficking, handling stolen goods, and money laundering.
Analysts at Jefferies noted: “At this point, the related contract under investigation remains unknown, making any potential assessment of the risk challenging.”
Thales, known for its military and civilian products, provides a diverse range of technologies, from sub-hunting sonars and satellites to biometric identity systems for banks and airline entertainment systems.
