In relation to my earlier post on the Multiplex dispute with Cleveland Bridge - Multiplex wins. It was seeking ₤45 million from CB but will now seek a ‘negotiated settlement’ whatever that means. But 80% of all of Multiplex’s costs were awarded against CB. And CB’s claims against Multiplex have been rejected – these sought an extra ₤32 million which limits Multiplex’s overall losses on the project.
According to yesterday’s AFR (subscription required) Multiplex is now likely to pursue damages from Wembley Stadium Group of up to ₤150 million.
Multiplex’s share price rose yesterday – it’s the first good news it has had in quite a while. The future for Multiplex UK looks quite a bit brighter than it did. Multiplex’s share price yesterday was $3-46 off a low of $2-66. It has risen 16 cents since the announcement. A good recovery punt?
We have an honours student writing a thesis on this topic in my Department. It really deserves a PhD dissertation. A fascinating business case study. Any takers?