Three people are in custody in connection with the murder of two Spanish businessmen in Panama, diplomatic sources here told Efe Friday.

Jose Antonio Perdomo, 57, and Miguel Undier, 47, a dual Spanish-German citizen, were found dead Thursday at the younger man's country home east of the Caribbean coastal city of Colon.

Panamanian authorities informed Spanish Ambassador Jesus Silva Fernandez that three suspects have been arrested, the sources told Efe.

The men were apparently killed several days ago, according to media accounts, and only discovered by chance as workers passed by the property on Thursday.

Perdomo and Undier hailed from Spain's Canary Island, but the latter had been traveling back and forth to Panama for 15 years and had effectively made the home near Colon his primary residence, Spanish diplomats said.

Authorities suspect the men were killed by poachers who strayed onto the property, but the investigation continues, according to the sources. EFE