Lockheed Deal in Jeopardy as Titan Bribery Probes Continue

Titan Corp. said in a regulatory filing Wednesday that Lockheed Martin Corp. may not complete its purchase of the San Diego company if criminal probes into alleged bribes of foreign officials by Titan consultants aren’t resolved by April 12.

That is the date Titan shareholders are scheduled to vote on the proposed sale.

“Titan cannot provide any assurance that Lockheed Martin will, in fact, complete the merger,” the company said in its filing with the Securities and Exchange Commission.

“Lockheed Martin has not given any assurances as to whether it will be satisfied” that the outcome of the reviews “do not constitute a material adverse change in Titan” that would justify terminating the $1.8-billion deal, the firm added.

Lockheed and Titan met last Thursday with officials from the Department of Justice and the SEC to discuss preliminary findings of investigators, according to the filing.

Investigators have focused on Titan units in Saudi Arabia, Asia and the African nation of Benin, the companies said.

If it is determined that unlawful payments were made, Titan or its employees could face penalties, criminal sanctions and limitations on Titan’s ability to export products.

The units being reviewed include Titan’s Datron World Communications division, which operates mainly in Asia; Titan Wireless in Benin; and the Titan Secure Systems division in Saudi Arabia, the filing said.

Lockheed spokesman Jeff Adams declined to comment.

Bethesda, Md.-based Lockheed’s shares fell 3 cents to $45.64. Titan rose 31 cents to $20.19. Both trade on the New York Stock Exchange. The filing was released after markets closed.