Sector movers: Aero/defence stocks fall on news of Rolls-Royce bribery probe

6th Dec 2012 15:03

Global power systems giant Rolls-Royce was under the weather on Thursday, providing a drag in the aerospace and defence sector.The company announced this morning that it could face prosecution from the Serious Fraud Office (SFO) in relation to cases of bribery and corruption in Indonesia and China involving so-called "intermediaries".The firm said: "The consequence of these disclosures will be decided by the regulatory authorities. It is too early to predict the outcomes, but these could include the prosecution of individuals and of the company. We will cooperate fully."The allegations relate to events in the "distant past", a source close the investigation told Reuters.Shares were down 3.34% at 883p in afternoon trade.Meggitt, the aerospace, defence and energy engineering group, was also out of favour today in London.The industry was also digesting some M&A activity from overseas today, after German car-maker Daimler announced that it is has sold a 7.5% stake in European aerospace titan EADS for €1.66bn.The move is said to be an attempt to reduce government say over business decisions.Top performing sectors so far todayMobile Telecommunications 3,777.66 +1.41%Chemicals 8,920.51 +1.14%Industrial Metals & Mining 2,526.46 +1.14%Construction & Materials 3,250.44 +1.00%General Retailers 1,980.35 +0.95%Bottom performing sectors so far todayAerospace and Defence 3,955.57 -0.94%Tobacco 37,295.90 -0.60%Insurance (non-life) 1,627.05 -0.56%Software & Computer Services 919.84 -0.42%Food Producers & Processors 6,378.59 -0.41%BC