SBM Falls in Amsterdam on Sales Inquiry: Amsterdam Mover
SBM Offshore NV (SBMO), the world’s biggest supplier of floating oil and gas platforms, dropped the most more than two months in Amsterdam after the company said sales practices were being investigated that may have been improper.
SBM fell 12 percent to 13.68 euros, the biggest decline since Jan. 24, valuing the Schiedam, Netherlands-based company at 2.35 billion euros ($3.1 billion).
“Outside counsel and forensic accountants, reporting to both the Management and Supervisory Boards, have been engaged to investigate these practices thoroughly,” SBM said today in a statement. SBM appointed Sietze Hepkema to the board with immediate effect to oversee corporate governance and compliance.
“SBM creates another uncertainty on its practices today with releases that it has appointed a governance and compliance officer,” ING said in a note today. “ING believes this is a good step for SBM but at the same time creates uncertainty on how SBM has won certain contracts.”
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