Kuwait's Agility denies winning $700m military deal

News of win had spurred four-day rally in group’s stock before trading halted
Kuwait's Agility denies winning $700m military deal
Agility denied media reports of a military contract win
By Reuters
Tue 11 Oct 2011 02:19 PM

Kuwaiti logistics firm Agility on Tuesday denied
reports that it had won a military contract worth up to $700m that had sparked
a four-day rally in the group's stock, before trading was suspended.

"The firm wants to clarify that it is normal
for it to compete on tenders and contracts within the context of its
operations, and it always announces its deals according to the disclosures
law," Agility said in a statement on the Kuwaiti bourse website.

Kuwaiti daily newspaper al-Rai said in an unsourced
report on Monday that information had been circulating that Agility won a
military contract worth between $600m and $700m.

The firm said that it did not win a contract with
such specifications, without elaborating further.

Agility's shares have been soaring on market rumours
that it won contracts with the Canadian Forces (CF). Its shares hit a
four-month high on Sunday, a day before they were suspended.

On Tuesday, trading resumed and shares traded 2.6
percent lower at 0900 GMT.

Some Kuwaiti companies won contracts from Canadian
Forces after they set up a staging terminal in the Gulf Arab state in
September, said Lieutenant-Commander John Nethercott, public affairs officer at
the Canadian Operational Support Command

"[The contracts] were let through a competitive
contracting process. They are characterized as low dollar value," he said
in an emailed statement, declining to name the companies.

Nethercott said that other contracts were being
considered.

Agility, which was the largest supplier to the US
Army in the Middle East during the war in Iraq, pleaded not guilty in August to
charges it defrauded the US government over multibillion-dollar supply
contracts.

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