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Ultra Electronics shares sink as SFO opens criminal investigation into "suspected corruption” in Algeria

Last updated: 09:00 19 Apr 2018 BST, First published: 07:45 19 Apr 2018 BST

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Ultra said that it continued to co-operate with the SFO and will provide a further update as and when appropriate

Ultra Electronics PLC (LON:ULE) took another blow on Thursday, with its shares dropping as it revealed that the UK's Serious Fraud Office has opened a criminal investigation into "suspected corruption in the conduct of business" by the defence contractor in Algeria.

In a statement, the FTSE 250-listed firm said the SFO investigation concerned the business conduct of Ultra, its subsidiaries, employees and associated persons, and came after the group referred itself to the British fraud authorities.

READ: Ultra Electronics shares plunge as it posts lower 2017 profit and ditches Sparton merger

It added; “Given the stage of these matters, it is not possible to estimate reliably what effect the outcome of this matter may have on the group."

Ultra said that it continued to co-operate with the SFO and will provide a further update as and when appropriate.

Last month, Ultra shares dropped sharply after reporting a drop in 2017 profits and confirming it was pulling out of plans to merge with Sparton Corp after the US Department of Justice raised competition concerns.

The group announced in July that it would buy Sparton, which makes anti-submarine warfare devices used by the US Navy, for US$234mln. But its plans to create a major supplier in underwater warfare have been terminated after the US DoJ raised anti-trust concerns and delayed its final decision on the deal.

Around 9am, Ultra shares were 7% lower at 1,289p.

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