Bloomberg News

Saipem Said to Hold Extraordinary Board Meeting as Shares Slide

December 05, 2012

Saipem SpA (SPM), Europe’s largest oil contractor by market value, is holding an extraordinary board meeting today, people with knowledge of the matter said. Shares slid on a newspaper report that Chief Executive Officer Pietro Franco Tali may be set to resign.

The shares slipped as much as 4.3 percent to 32.68 euros, before being suspended for excessive volatility at 1:52 p.m. in Milan. That trimmed the company’s market value to 14.4 billion euros ($18.8 billion). The shares were subsequently suspended by the Milan exchange pending a statement.

The contractor controlled by Eni SpA, Europe’s fourth- largest oil company, will hold a board meeting today, said two people with knowledge of the matter, who declined to be named prior to an official announcement. A spokesman for the company didn’t have an immediate comment.

CEO Tali may resign at the meeting today after pressure from Eni (ENI) CEO Paolo Scaroni, Il Sole 24 Ore reported on its website, without saying where it got the information. A Saipem contract in Algeria is being scrutinized there as part of a broader inquiry into executives at oil company Sonatrach, the Wall Street Journal reported Feb. 10, citing people familiar with the situation.

To contact the reporter on this story: Marco Bertacche in Milan at mbertacche@bloomberg.net

To contact the editors responsible for this story: Jerrold Colten at jcolten@bloomberg.net; Will Kennedy at wkennedy3@bloomberg.net


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