Leighton Holdings' losses stemming from alleged corrupt activities in its offshore operations could amount to more than $500 million. Deutsche Bank analysts said the ''reputational damage'' stemming from the bribery scandal last week may ''limit the amount of future work awarded to Leighton'' or lead to cancelled contracts, potentially resulting in a 20% (~$46 million) hit to Leighton's offshore revenues. Deutsche warned that Leighton may also have to write off a $400 million debt it is still owed from an oil pipeline project in Iraq at the centre of some of the bribery allegations. Almost $1 billion has been wiped from the construction major's market value in the two days following the release of the bribery report. With a potential fine, lost revenue and debt impairment, Deutsche estimates Leighton could be forced to write down as much as $562 million, not including any class action-related losses. (VIEW LINK)
Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.
No areas of expertise