Selling to GE
On the other hand, GE has a tremendous amount of experience buying companies and knows how to dig deep. In GE's $900 million purchase of InVision Technologies
Last Friday, InVision announced that there may be an investigation from the Justice Department and the Securities and Exchange Commission regarding alleged illicit payments on foreign sales.
Such violations would fall under the Foreign Corrupt Practices Act. Interestingly enough, this law has become a sticking point in a variety of deals. Basically, as companies expand globally, they run into the tricky moral issues of dealing with disparate cultures.
Recently, for example, Lockheed Martin
Regarding the GE deal, management indicated that it wants to conclude the transaction. This is no surprise, though, as GE must make good-faith efforts to move the deal along.
However, if the investigation lingers, GE could very well do what Lockheed did; that is, it could first reduce the price of the acquisition. And, if matters are not resolved by Oct. 31, then GE could walk. No doubt, GE is in a superior position.
Want to read more about Lockheed and Titan's tangle? Try the following articles from Rich Smith:
- Titan Tumbles
- Titan to Lockheed: Buy Me, Please!
- Lockheed's Titanic Markdown
- Titan's Hidden Assets
- Titanic Troubles for Lockheed?
Fool contributor Tom Taulli is the author of The EDGAR Online Guide to Decoding Financial Statements. He does not own shares in any of the stocks mentioned.