The KBR IPO was supposed to price tonight and start trading on the New York Stock Exchange in the morning.
The British Ministry of Defence asked them to pull the IPO until KBR could prove they would be financially viable after the split from Halliburton.
At stake is KBR's 51% of the Devonport ship and submarine maintenance contract. The prospectus shows the income from the contract in 2006 so far is $649 million, with operating income of $57 million.
The problem is, they only show $38 million of net income for the whole company in the first 9 months of 2006. They need this contract. The British have the right now to cancel it.
Cramer is wrong.
The British Ministry of Defence asked them to pull the IPO until KBR could prove they would be financially viable after the split from Halliburton.
At stake is KBR's 51% of the Devonport ship and submarine maintenance contract. The prospectus shows the income from the contract in 2006 so far is $649 million, with operating income of $57 million.
The problem is, they only show $38 million of net income for the whole company in the first 9 months of 2006. They need this contract. The British have the right now to cancel it.
Cramer is wrong.
Labels: Halliburton
posted by RichardEugene at 9:46 PM
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