AEA warns over shares 'wipe-out' - Title1
A climate change consultancy that advised the White House has warned shareholders would be left with "little or no value" as it considers its future after failing to find a solution to its balance sheet woes.
Oxfordshire-based AEA Technology - previously part of the old Atomic Energy Authority - said it was looking at all options for the firm, but warned investors could be left with nothing even if it seals a rescue takeover.
AEA has seen its stock market value all but wiped out after taking a gamble on US expansion that failed to pay off...
AEA paid £33.1 million for PPC in 2008 to gain a slice of climate change consultancy work for the US government at a time when environmental policy was top of the agenda. Two years later, AEA bought another US consultancy called ERG in Massachusetts, forking out 83 million US dollars (£53.2 million) in a mammoth reverse takeover for the group.
The PPC takeover was initially hailed as a success, with the US arm securing major contracts advising the Obama government on how to implement pledges on climate change.
But the US business has suffered as PPC's trading was impacted by the late placement of some business and certain orders not being won.
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