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If you sell your rights shares at the price offered now, it means you sell them below their value to the underwriters (banks) Normally, people who do it are those who don't have money to buy them. So instead of loosing the rights completely they get something for them. If you have money, then you're better of buying your rights, not selling. That's of course if you believe that the company is going to do better after rights issue than before it. But I guess you wouldn't buy shares in the first place if thought different)
Slift
I can see that you want very much to believe that the fine will be a trifle so I don't want to disappoint you. But what do you want me to do, lie to you? About 7 billion worth contracts have been obtained fraudulently and expect Petrofac to get away with a few million fine? Anyway, I don't want to be a party popper. I only make suggestions based on information I have and common sense. I don't work for SFO so can't give you the inside opinion. Let's wait and see
To Stockready1
Thank you. I don't know the chap you mentioned but know that every chat room is full of people promoting their own vest interest and nothing else. All they do is ramping or deramping the share, depending on their positions, but they never support it with a scrap of information. You can always recognise those people, they behave like angry mob if someone disagrees with them. But that doesn't bother me, social media is known for that) All I can say, don't listen to angry people, they're angry for a reason as their investments don't do well. Don't listen to anyone here in fact, just read the information if it's given, analyze it, and make your own independent decisionn. That's the best advice anyone can give in investing!
To sharefall
Where did you get it from that I think Petrofac is terrible company? If you want to know my opinion, It was giving bribes because that's how business is done in the oil rich countries. Abu Dhabi only banned Petrofac from bidding because it's going through hell as well right now. Its a big case, which involves many companies like total and others, many senior government officials lost their seats, and country oil body wants to distance themselves from Petrofac for a while to save their heads. Don't expect they'll lift the ban before the SFO judgement (21 June). They'll wait a couple of months after it to let the sand settle and lift the ban only after that. Unfortunately, by that time most of bids will be gone, that's the problem. But then the share price reflects it pretty well now so not trying to spread doom and gloom, just give a fair and unbiased information. You want to be informed, don't you? Can't understand people who only want to listen to rampers. But that's up to them of course)
To Simplyme
Wood group was mentioned by me here, as an example of the fines the SFO gives. The fine was related to some subsidiary, which Wood bought after the fact, so Wood wasn't even involved in bribery in any shape or form. But when you buy some business you buy all related liabilities, hence the fine. The size of bribes involved there is a little joke compared with Petrofac, Wood has never been even shorted, and it never affected it's contracts. So judging on the Woods fine, you can see that Petrofac fine will be substantially more. But then the Woods price hasen't been affected much either, noever near like Petrofac's, just a 20-25% drop that won't stay long. I've invested quite a bit in Wood on the drop, that's why I know about it, did my research properly ?? As for Petrofac, the fine is going to be huge but shares dropped huge as well, so by no means I advise to sell. But I lost quite a lot with Petrofac (who expected the second confession of Lufkun? the least himself))). was selling on the ups and buying on the drops since to reduce the loss, reduced it to comfortable level, and want to play careful now. That's all. Ive done very well with other shares of mine so not particularly bothered other way, but I want some clarity before I invest in Petrofac again. I do a lot of research before I invest in anything so don't do it by half, which means when I lose it hurts
To Pokerchips
So I take it you judge validity of the comment by the commenter s name? And who's the idiot then? ?? It's only normal btw when people have the difference of opinions. It is abnormal when the whole chat room does nothing but ramp their own shares. Doesn't say much about their intelligence level. It looks like you drive everyone with a different opinion out of here with the mob like methods. If that's all you can do you shouldn't be an investor. Join Mafia and sell drugs, you'll do much better there))
I see this board is full of rampers who bought the shares at the wrong time and desperate to keep them from falling further. You've been ramping these shares non stop here, it still hasn't stop them from going down more and more. So obviously, stock market has a different opinion. I don't give advise on buy or sell, I leave it people decide for themselves, I just share my thoughts on the size of the fine. Barclays pencilled £800 mln in December, before the second load of bribes, which doubled the previous amount, was revealed. You can shout at me, you can shout at Barclays, you can shout at hedge funds who've been shorting it mercylessly, but you can't avoid the truth. The reason this company's shares got so low is down to the size of the fine!!! What else, Iyoy think, drives them so low? If that's not obvious to you then you cant quite simply put 2 and 2 together! PS As I said, I don't I've any predictions on the share price moves, when company in trouble of this size it's impossible to predict. But Im sure they will be very volatile for the next 6 months at least, so get used to it and don't shoot the messenger)
brianbru
Hi brianbru. The burden of proof is much higher in criminal cases (which carry custodial sentences) than in civil ones (which carry fines) Lufkun took the blame so he spared others from prison sentence (what agreement he had with Petrofac, for what reward, we'll never know). But bribes were given on behalf of the company, let's not forget it, and SFO is not a fool, this kind of cases are common there. I see some posters here think that Petrofac can get away lightly or with no fine at all. The nativity of certain people here does amaze me. They've no clue about how the law works. I guess if you want to see the simpletons you should join this chat rooms')
To laidback
So you think that SFO will believe Lufkun was giving millions of bribes out of his own pocket and to benefit himself??? What are they, total imbecils? ?? You may believe it, (it's up to you. but judges are normally chosen from slightly more intelligent people than yourself)
Today
Petrofac has arranged c£1b credit facilities, and did it despite reporting prospective reduction in debt. Obviously it's preparing for a big SFO fine. I said it before and I say it again, the fine is going to be circa £1 billion. It'll be required to be paid in installments spread over 3 years (normal practice), fist installment the biggest (c40%) and 2nd and 3d smaller. Will Petrofac let us know the size of the fine next week in its FY (it should have a good idea by now) remains to be seen, they're not obliged to do it though good companies tend to keep investors informed. One way or another, the full truth will be revealed by SFO in June. But considering the preparations in credit facilities, the answer is obvious
Don't think anyone knows for sure, Petrofac isn't going to forecast the day, given the situation it's in. Will keep my eye on it every day now. Will it clarify the bidding ban and SFO fine or will it try to avoid the tricky situations altogether? What is its cash pile, I'd like to know most as it'll need it a lot. It arranged £300m credit with government scheme, that'll help
To Oiler87
Petrofac was charged with bribery 4 years ago. Case was supposed to be concluded in Feb this year but conclusion was unexpectedly postponed till June, so it's still ongoing. Petrofac sales executive confessed to c£7 billion worth c9ntracts obtained with bribes. He'll receive 3+ year sentence but that's not what bothers market. The share price will be affected by financial fine SFO will impose on Petrofac.
I totally agree that SFO doesn't intend to bring the company down, it's definitely not 8n anyone interest. At the same time, it's a huge case which seams to be getting bigger and bigger in terms of other companies involvement in bribes with the same authorities. So I would be very surprised if Petrofac gets away with just £409m fine, I'll be gobsmacked to be precise))
FY results are scheduled for mid April at the latest, so are due any day now. Will Petrofac give us a hint on the size of the fine they expect from SFO? I'm sure they have a good idea by now. Barclays pencilled about 800m, but it was before the second load of bribes has been disclosed. Wood group announced in their update that they doubled the amount put away to satisfy expected fine from SFO (also bribery case) to £200m, and their problems are nothing compared to Petrofac's. So I expect the Petrofac's fine to be well above £1b. The question is will Petrofac disclose what preparations its making to satisfy the fine payment, or will it keep the silence? Its going to a very interesting update, can't wait!