En Español



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Grana y Montero in stock crisis, says Odebrecht partnership a 'mistake'



LIMA
Petroleumworld.com 01 13 2017

Peruvian builder Grana y Montero's shares dropped by more than 12 percent on Thursday after it called its partnership with corruption-plagued Brazilian builder Odebrecht a "mistake" and said it was considering taking legal action.

Corporate General Manager Mario Alvarado said in an interview with local Peruvian magazine Caretas that Grana knew nothing about any kickback schemes and had no idea that Odebrecht had a special department dedicated to secretly distributing bribes.

"It's clear we made a mistake in this partnership," Alvarado was quoted saying in the magazine's edition published Thursday. "We're studying our legal options in order to make a decision."

Grana confirmed the accuracy of the quotes.

The company's shares closed 14.6 percent lower on Lima's bourse on Thursday and 12.15 percent weaker in New York.

Grana's shares have dropped about 42 percent on both stock exchanges since December 21, 2016 when Odebrecht acknowledged in a U.S. plea deal that it distributed $29 million in bribes to win public work contracts in Peru from about 2005 to 2014, part of hundreds of millions in corrupt payments across the region.

Grana has been one of Odebrecht's most important Peruvian partners this century, working with it on half a dozen public work contracts worth more than $10 billion, according to a report by the comptroller's office on Wednesday.

Grana owns a 20 percent stake in a natural gas pipeline project that Odebrecht won in 2014 after its sole competitor was disqualified the day of the auction. Grana was not a part of the original consortium and bought its stake from Odebrecht in 2015.

The government has said it would cancel the pipeline contract if financing that hinges on Odebrecht exiting the project does not come through this month. Odebrecht has been trying to sell its 55 percent stake for more than six months and has been in talks with Brookfield Asset Management Inc .

Odebrecht has said it would cooperate with local prosecutors to reach a plea deal that would include civil reparations for crimes committed.



Story reporting by Ursula Scollo and Mitra Taj; Editing by Diane Craft from Reuters.

We invite all our readers to share with us
their views and comments about this article
.


Write to editor@petroleumworld.com


By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

 

 

 

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:P.Ohep F. /Producer - Publisher:P.Ohep F./
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2016, Petroleumworld   / Elio Ohep Fitzgerald- All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.