U.K. Regulator Bans Saipem Short-Selling After Share Plunge
The U.K.’s Financial Services Authority banned short-selling of Saipem SpA (SPM) shares after a record drop prompted Italian authorities to investigate a stock sale in Europe’s largest oil-services provider.
The FSA said today the decision to ban short-selling of Saipem in the U.K. followed significant price movement and consultation with another competent authority.
Saipem plunged 34 percent yesterday when the Milan-based company cut a forecast for 2013 profit. The day before, Bank of America Corp. had managed the sale of almost 10 million shares, or 2.3 percent of the company’s stock, for an institutional investor that’s yet to be identified.
Italian stock-market regulator Consob said yesterday it was monitoring trading in Saipem shares after the placement and price plunge.
Saipem rose as much as 4.5 percent to 20.91 euros in Milan trading and traded at 20.70 euros at 10:56 a.m. local time.
To contact the reporter on this story: Nidaa Bakhsh in London at firstname.lastname@example.org