Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Citi: Court Ruling Lifts Cloud Over Chicago Bridge & Iron Shares

Courtesy of Benzinga.

Citi: Court Ruling Lifts Cloud Over Chicago Bridge & Iron Shares

A Delaware Supreme Court ruling in favor of Chicago Bridge & Iron Company N.V. (NYSE: CBI) in the company’s multibillion-dollar dispute with Westinghouse “is a significant stabilizing event for CB&I shares,” according to Citi.

Westinghouse bought CB&I’s nuclear business in 2015. Cost overruns and delays at two nuclear power plants under construction in Georgia and South Carolina led to Westinghouse’s March 29 bankruptcy filing — and a $6 billion write-down at the company’s Japanese parent Toshiba (Toshiba Corp (USA) (OTC: TOSYY) (TYO: 6502).

Westinghouse sued CB&I for $2 billion, claiming the company’s accounting of the nuclear projects was faulty.

Westinghouse’s partners in nuclear power plant construction are SCANA Corporation (NYSE: SCG) and Southern Co (NYSE: SO).

Tuesday’s ruling, which overturned the decision of a lower court, blocks Westinghouse from bringing CB&I’s historical accounting to an auditor, according to the New York Times.

CB&I stock soared after the court decision and was trading up more than 8 percent as of midday Wednesday.

“While the dispute is still ongoing, it appears that the potential liability for CB&I could be limited to a small fraction of the prior $2 billion WEC was seeking,” Citi analyst Andrew Kaplowitz said in a note. The firm has a Hold on CB&I. 


The ruling increases the likelihood of a negotiated settlement, Kaplowitz said.

“Regardless of the outcome, we think today’s events move CBI closer to resolving a big question mark that has faced investors for some time.”

tipranks.png

The Delaware Supreme Court decision “vindicates” CBI’s position that the Westinghouse claim was meritless, Chicago Bridge & Iron President and CEO Philip K. Asher said in a statement.

“CB&I looks forward to quickly resolving any remaining disputes between the parties, which we believe should be immaterial in light of the court’s ruling.”

Related Links:

Chicago Bridge & Iron: Trust-Worthy Rally?

Surprise Positive News Continues To Lift Chicago Bridge & Iron Shares

Latest Ratings for CBI

Date Firm Action From To
Mar 2017 Argus Research Downgrades Buy Hold
Dec 2016 Argus Research Initiates Coverage On Buy
Sep 2016 Credit Suisse Maintains Outperform

View More Analyst Ratings for CBI


View the Latest Analyst Ratings

Posted-In: Andrew Kaplowitz chicago bridge & iron CitiAnalyst Color News Reiteration Legal Analyst Ratings Best of Benzinga


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!