Shares in aerospace engineer Rolls-Royce Holding PLC (LON:RR.) surged after it announced it would pay £671mln to settle bribery claims.
The shares were up 6% in early deals, as the company reached a Deferred Prosecution Agreement (DPA) with the UK Serious Fraud Office (SFO) and the US Department of Justice. It also sealed a deal with Brazil's Ministério Público Federal.
These agreements relate to bribery and corruption involving intermediaries in a number of overseas markets, concerns about which the company passed to the SFO from 2012 onwards, Rolls-Royce said.
The payments are voluntary, and will result in the company escaping prosecution provided it fulfils certain requirements, including the payment of a financial penalty.
The payments are to be phased, with the power systems developer set to pay £293mln in the first year.
Along with the announcement about the settlement, Rolls-Royce slipped in a brief trading update in which it said early indications are that the group had a good finish to the year, with both profit and, in particular, cash expected to be ahead of expectations.