Halliburton’s KBR IPO delayed
TEXT OF STORY
SCOTT JAGOW: The oil field services company Halliburton was supposed to spin off a company called KBR today, but Halliburton has delayed that until tomorrow. The company wants to alleviate British concerns about KBR going public. And there are other questions here, like will investors even want a piece of such a troubled company? More now from Alisa Roth.
ALISA ROTH: KBR is the biggest American contractor in Iraq. It’s been accused of overcharging the military for jobs like delivering fuel and running mess halls, which may be why parent company Halliburton is ready to part ways.
Poe Fratt is an analyst with AG Edwards.
POE FRATT: KBR up to this point has been the more volatile part of Halliburton.
KBR is hoping to raise more than $400 million with the offering. The idea is for Halliburton to sell off just under 20 percent of the company now and be completely separate by next spring.
Some wonder whether a Democrat-controlled Congress will scare investors away from KBR.
Analyst Barry Ritholtz says it really depends.
BARRY RITHOLTZ: Is it going to be more of the same, with a lot of traditionally military provided functions being outsourced? And how competitive will that bidding process be?
But KBR is also a big player in the oil business. And that could keep it relevant, regardless of what happens in Iraq. Or in Congress.
In New York, I’m Alisa Roth for Marketplace.
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