Getting hotter…

January 26, 2004

On Friday, the same day that Halliburton (HAL) said it had fired two employees for taking kickbacks and repaid the government $6.3 million , the oil services giant warned in its 8-K that it was likely to be subject to increased scrutiny from “political adversaries of the Vice President and the current Bush Administration” as the 2004 elections approach. “This focus and these allegations will continue and possibly intensify” the company warns in its laundry list of risk factors as part of a $500 million private placement. The company goes on to say that it could be asked to “reimburse material payments…or accept lesser compensation than provided in our contracts” and also warns that treble damages may be sought. Though these types of warnings are often somewhat routine CYA exercises, it’s the first time that Halliburton has gone into this much detail about its government contracts in its SEC filings.

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