Brazil probes Bombardier for alleged price-fixing

Bombardier says it is co-operating with authorities inBrazil who are looking into alleged price-fixing inpublictransportation contracts, but denies any wrongdoing by itsemployees.

"We strongly believe that Bombardier Transportation in Braziland our employees have always acted in compliance with the laws and our code of ethics," the company said in a statementThursday.

It said the company "observes the highest ethical standards"regardless of country where it operates and will continue to fullyco-operate with Brazil's investigation.

Brazil said it has opened legal proceedings against Bombardierand several other major railway manufacturers for
allegedly fixing prices on the construction and upkeep of publictransportation systems in five cities.

The South American country's antitrust agency said in a statementThursdaythat it will investigate the bidding process for contractson the subway and train systems inSaoPaulo, Brasilia,BeloHorizonte, PortoAlegreand RiodeJaneiro.

The statement says 18 companies were part of a cartel involved in15 projects valued at US$4 billion.

According to the government's official gazette, the companiesincluded Bombardier's Berlin-based transportation division,Germany's Siemens,CAFof Spain,Mitsuiof Japan andAlstomofFrance.

Bombardier added it is aware of the administrative proceedingsand will respond and provide a defence.

The allegations first surfaced last summer when Brazilianpoliticians threatened to launch lawsuits to recoup public fundspaid for public transit construction, equipment and maintenanceafter rising fares and poor service sparked nationwide protests.