Halliburton, Seeking to Boost Value, May Shed KBR - Bloomberg

[WillyT]

<snip>

Sept. 23 (Bloomberg) -- Halliburton Co. said it may sell its KBR unit, which is being investigated for possible overcharges on a U.S. Army contract in Iraq and alleged bribery at a Nigerian venture, to boost its share price.

The unit would be sold or spun off to shareholders if Halliburton's stock remains undervalued relative to those of rivals in the oilfield-services business, Chief Executive David J. Lesar told analysts and investors at a meeting in Houston. He said KBR could be shed through a sale of shares to the public.

Lesar, 51, said the sale could take place once Halliburton gets final approval of a $4.2 billion asbestos settlement for KBR and another unit that was in bankruptcy reorganization. KBR has lower profit margins than Halliburton's oilfield business.

``With the problems they've had with KBR, it's not surprising'' Halliburton would seek to sell the business, said Barry Borak, director of energy research at Foresight Research Solutions LLC in New York. KBR ``is more of a construction unit, and people are not willing to pay as much as for a pure oil- services play.'' Borak doesn't own or rate Halliburton shares.

<snip>

Link: http://quote.bloomberg.com/apps/news?pid=10000103&sid=aPuiYB55.8jw&refer=news_index

Trying to wash the stink off will not work, Halli!!!

:wtf:

[rocktivity]

1. If they're planning to shed KBR

it's to avoid the legal costs when President Kerry indicts them.

:headbang:
rocknation

[WillyT]

2. You Got THAT Right !!!

:hi::bounce::hi:

[AIJ Alom]

3. Will they also cut off ties to Dick Cheney ?

[annabanana]

4. I thought all they had to do was

re-incorporate under a different name. Isn't that how it works?

[JimHarper3]

5. It is amazing that big corporations have so much...

inside information. I seen it many times before in my life. This little snippet is the red flag that says this corporation has received news that W. will loose the election. They are preparing themselves to cut ties quickly, because they know that when the post-election inquiries start about BushCo's corporate ties, their stock will plummet.

By shedding this part of the company, they are trying to insulate themselves from the fallout and keep their stock prices/profits high. Self preservation by a "entity".

I see this as good news that the Right is truely scared, but bad news in that it will make the tangle of lies, under-the-table dealings, and kickbacks all that much harder to unravel. Hallburton (and all of Cheney's stock options) will be saved, and KBR will be the sacrificial "lamb".

I am sure that all of KBR's employees will be overjoyed to lose their jobs and enter the ranks of the unemployed in the middle of the worst employment picture since H. Hoover. Thanks, Hallburton! Thanks Mr. Bush!

[newyawker99]

6. Hi JimHarper3!!

Welcome to DU!! :toast:

[jpgray]

7. Now see, that asbestos settlement won't exist with tort reform

Screw those mesothelioma folks--frivolous lawsuits, all.

:crazy: