2 Min Read
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)
By Andy Critchlow
LONDON, July 11 (Reuters Breakingviews) - John Wood Group shares fell more than 6 percent after the company it is taking over, Amec Foster Wheeler, said it was under investigation for possible bribery. The probe was a known risk, but the bad timing, combined with a low oil price, makes the 2.2 bln pound deal look rash.
On Twitter twitter.com/baldersdale
- Amec Foster Wheeler shares fell over 6 percent on July 12 after the company said it is under investigation by the UK’s Serious Fraud Office for bribery and corruption.
- John Wood Group, which agreed to combine with Amec in March, fell over 6 percent.
- The investigation is “not expected to have an impact on the completion of the merger”, Amec said in a statement on July 11, adding that it could not estimate reliably the likely impact of the investigation on its business.
- Amec shares were trading at 419 pence per share as of 0950 BST. John Wood was trading at 580 pence per share.
- For previous columns by the author, Reuters customers can click on
- SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS bit.ly/BVsubscribe
Editing by Neal Unmack and Liam Proud