Caterpillar sinks 4.8% as federal officials search headquarters
- Author: Eleanor Harrison Mar 03, 2017,
Mar 03, 2017, 0:23
Law360, Springfield (March 2, 2017, 3:14 PM EST) - Federal agents from banking, tax and trade authorities searched construction equipment giant Caterpillar Inc.'s Peoria, Illinois-based offices Thursday, the company confirmed to Law360.
Shares in Caterpillar (NYSE:CAT), the world's No.1 heavy machinery maker, were down as much as 5% Thursday around noon after it became public that officials were executing a search warrant at three of the companies' facilities in the Tri-County Area, including the corporate headquarters.
"Federal law enforcement activity was conducted today in Peoria, East Peoria and Morton", said Paul.
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"Caterpillar is cooperating", the brief statement quoted by Sun Times said.
"We now believe that this matter will not have a material adverse effect on the Company's consolidated results of operations, financial position or liquidity", Caterpillar stated.
Authorities say the IRS and other federal agencies are taking part in what Caterpillar says is the execution of a search warrant at three of its central IL facilities.
The subpoena requested documents relating to, among other things, financial information on U.S. and non-U.S. Caterpillar subsidiaries.
In 2014, the SEC subpoenaed Caterpillar seeking information about the company's accounting related to its acquisition of Bucyrus International in 2011.
Caterpillar has previously disclosed receiving a grand jury subpoena in January 2015 related to the "movement of cash among its U.S. and overseas subsidiaries", as well as purchases and resale of spare parts.
Pending legal issues highlighted in the 2016 Caterpillar annual report filed with the Securities and Exchange Commission last month included a January 2015 federal grand jury subpoena that sought financial information about the company's U.S. and non-U.S. subsidiaries.
Trump said he would try to visit the company soon. A spokesperson declined further comment.