Agility still in hot water
Agility’s high-profile tiff with the US government continues. The firm is currently in talks with the US government to settle the matter out of court.
December 29, 2009 11:20 by Dana El Baltaji
“A settlement would be better for Agility, but I do not think that Agility will sacrifice huge amounts in the settlement,” Mustafa Behbahani, a director at Kuwait Gulf Consulting Co said to Reuters on Monday. “It all depends on the future deals Agility is eyeing.”
“If the future contracts are worth four or five times more than the settlement amount, this would be in favor of the firm,” he added.
Agility announced last week that DynCorp International, a US defense contractor, dropped the Kuwaiti firm’s US arm from a US Army contract. The company said it may seek legal action against DynCorp International for its decision.
Meanwhile on the stock market, Agility ended five days of losses on Sunday when it soared 8.2 percent to 660fils, its biggest leap since January 27, reported Bloomberg. Shares rose on news that Agility’s Qatari arm is in final talks with Gulf Warehousing on a merger.
On Monday, however, Agility’s closed 4.65 percent down at 620fils a share after the company announced it is in talks with the US government over its fraud charge.
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