Baker Hughes Faces Federal Investigation

Baker Hughes Inc., the world’s No.3 oilfield-services company, is facing a second investigation by federal authorities of its business practices just months after settling a case with similar charges.

The Department of Justice and Securities and Exchange Commission are investigating the company’s operations in Nigeria, the company said. A former Baker Hughes employee filed suit against the company last week, claiming he was fired because he wouldn’t participate in a plan to bribe a Royal Dutch/Shell Group unit and win Baker Hughes a contract in Nigeria. Baker Hughes said it is conducting its own investigation of the employee’s claims.

Houston-based Baker Hughes settled federal charges in September that managers illegally authorized $100,000 in payments to government officials or company agents in India, Indonesia and Brazil. The company paid no fine and agreed to be subject to tougher sanctions.

Gary Flaharty, a Baker Hughes spokesman, declined to comment further. John Heine, an SEC spokesman, and Justice Department spokeswoman Dana Perino declined to comment.

Baker Hughes shares fell $1.03 to $37.22 on the NYSE.