CB&I Comments On A Report; Says Disagrees With Assumptions And Conclusions

(RTTNews) - Chicago Bridge & Iron Company N.V. (CBI) noted there was unusual trading volume on Tuesday in its common stock. The activity appeared to be related to the issuance of a report by a short seller recommending that stockholders sell CB&I stock.

The company said that it reviewed the report and strongly disagreed with its assumptions and conclusions.

Notably, the report warned readers to assume that the short-selling firm and/or its affiliates hold short positions in CB&I common stock and that they stand to realize significant gains in the event that CB&I's stock price declines. CB&I believed that this conflict of interest should cause the report and its conclusions to be viewed skeptically.

"CB&I's management team operates our company with the absolute highest integrity, and we take great issue with erroneous claims such as these," said Philip Asherman, CB&I's President and Chief Executive Officer.

The company's second quarter financial results are scheduled to be released in late July 2014. The company confirmed that it expects to report results within the ranges of its current guidance for the year.

CBI closed Tuesday's trading at $68.26, down $5.32. In after-hours trading, the stock further declined $0.11 or 0.16 percent and ended at $68.15.