Maintaining Optimism in the Face of Reality. Occasional observations on the state of the world, society, business and politics. Usually anchored by facts, always augmented by opinion.
The New York Times reported on Friday about Halliburton's plans to divest it's KBR division, the unit who got the no-bid Iraqi contract. The quick synoposis is:
When Halliburton was awarded contracts worth more than $12 billion for work in Iraq, critics said that the company was using its political connections to reap big profits. But now, in a sign that those contracts are not providing the boon executives had expected from a subsidiary weighed down by other problems, Halliburton said Thursday that it was considering a sale of the business.Looking at the Heinz financial highlights shows they have about $1.2 billion in cash. They could probably pick up KBR using some additional leverage. Could be interesting.
The unit, KBR, which provides military and oil field services, has been plagued by losses, by investigations into its activities in Nigeria and Iran and by sizable asbestos claims. Making matters worse, KBR's work in Iraq has not been as profitable as other activities and has contributed to a public relations nightmare for its parent. All of this has happened while KBR is seeking to emerge from bankruptcy protection.
e-mail post | Link Cosmos | [Permalink] | | Saturday, September 25, 2004