The US Department of Justice has opened an investigation of Britain's BAE Systems over the defence firm's compliance with anti-corruption laws.
Britain's Serious Fraud Office dropped an inquiry into the firm's dealings with Saudi Arabia in December last year after Prime Minister Tony Blair said it would harm national security and relations with the Gulf kingdom.
"BAE Systems has been notified by the US Department of Justice that it has commenced a formal investigation relating to the company's compliance with anti-corruption laws including the company's business concerning the Kingdom of Saudi Arabia," the company said in a brief statement today.
BAE, Europe's biggest military contractor, has denied making wrongful payments in its dealings with Saudi Arabia, which include Britain's biggest arms export deal, that dates back to the 1980s and was worth an estimated £43 billion pounds.
Under pressure from the media and some politicians, BAE said earlier this month that it had asked a former top English law official, Lord Woolf, to lead a review of its business ethics, although this will not include its past dealings with Saudi Arabia.
BAE shares closed at 442.25 pence yesterday, valuing the business at about £15.5 billion (€23.02 billion).