Just In...Army has Decided IT WILL Pay Halliburton
The earlier post of today that the Army will withhold 15% payment to Halliburton...well this just posted on Reuters: (hey do you think our military was influenced!!, dare say...)
WASHINGTON (Reuters) - The U.S. Army reversed a decision late Tuesday to withhold payment on 15 percent of future invoices of Halliburton Co.'s (HAL.N: Quote, Profile, Research) logistics deal in Iraq and gave the company more time to resolve a billing dispute.
The Army said earlier Tuesday it had decided that starting Wednesday it would withhold 15 percent of payments on future bills from Halliburton unit Kellogg Brown and Root for a logistics contract servicing U.S. troops in Iraq and Kuwait.
But later the Army indicated it would continue to reimburse in full Kellogg Brown and Root, the Army's biggest contractor in Iraq, for feeding and housing troops there.
"I just got a phone call putting on hold the 15 percent withhold clause implementation and I don't know why or any of the particulars," said Linda Theis, a spokeswoman for the Army Field Support Command in Rock Island, Illinois.
Halliburton, which was run by Dick Cheney from 1995-2000 before he became vice president of the United States, said it did not have any new information and the company was seeking clarity.
The company said earlier it believed any impact of a possible withholding would be mitigated since KBR would, in turn, put a 15 percent withholding of payments to subcontractors.
STOCK AFFECTED
Halliburton shares slid more than 4 percent, or $1.34, to $26.45 on the New York Stock Exchange but recovered later to $27.30, a 1.76 percent dip from the previous day. The shares have tumbled 16 percent since the beginning of August.
There have been confusing signals from both the military and the company in recent days over the billing dispute and whether the Army would take any action.
The company put out a statement on Monday that money would not be withheld but then announced on Tuesday along with the Army that it had been told payment of 15 percent of future invoices would be withheld starting Wednesday.
Halliburton had vowed to fight the decision and argued the withholding should not apply to any of its Iraq work, which according to government estimates could top $18 billion.
WASHINGTON (Reuters) - The U.S. Army reversed a decision late Tuesday to withhold payment on 15 percent of future invoices of Halliburton Co.'s (HAL.N: Quote, Profile, Research) logistics deal in Iraq and gave the company more time to resolve a billing dispute.
The Army said earlier Tuesday it had decided that starting Wednesday it would withhold 15 percent of payments on future bills from Halliburton unit Kellogg Brown and Root for a logistics contract servicing U.S. troops in Iraq and Kuwait.
But later the Army indicated it would continue to reimburse in full Kellogg Brown and Root, the Army's biggest contractor in Iraq, for feeding and housing troops there.
"I just got a phone call putting on hold the 15 percent withhold clause implementation and I don't know why or any of the particulars," said Linda Theis, a spokeswoman for the Army Field Support Command in Rock Island, Illinois.
Halliburton, which was run by Dick Cheney from 1995-2000 before he became vice president of the United States, said it did not have any new information and the company was seeking clarity.
The company said earlier it believed any impact of a possible withholding would be mitigated since KBR would, in turn, put a 15 percent withholding of payments to subcontractors.
STOCK AFFECTED
Halliburton shares slid more than 4 percent, or $1.34, to $26.45 on the New York Stock Exchange but recovered later to $27.30, a 1.76 percent dip from the previous day. The shares have tumbled 16 percent since the beginning of August.
There have been confusing signals from both the military and the company in recent days over the billing dispute and whether the Army would take any action.
The company put out a statement on Monday that money would not be withheld but then announced on Tuesday along with the Army that it had been told payment of 15 percent of future invoices would be withheld starting Wednesday.
Halliburton had vowed to fight the decision and argued the withholding should not apply to any of its Iraq work, which according to government estimates could top $18 billion.
posted by BLONDIE at 5:06 PM
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