Published on 11th January 2015
Sell shares of Amec, Danny Fortson advised in the Sunday Times. A year ago the oil services company paid £2bn in cash and shares for Swiss-listed rival Foster Wheeler. Its other option was to hand cash back to shareholders. Since then the oil price has halved, shale producers have cut spending and Russia is in dire financial straits. The Foster Wheeler deal was meant to increase business from both shale operators and Russia. Foster Wheeler is failing to meet forecasts, oil services has been hit hard by falling crude prices and there is no relief in sight, the Inside the City columnist concluded.