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Noble’s reassurance falls flat, as shares continue to tumble

SINGAPORE — Embattled commodity trader Noble Group said yesterday that discussions with various “potential strategic parties” are ongoing, despite a Reuters report a day earlier stating that China’s state-owned Sinochem is no longer pursuing an investment in the firm.

SINGAPORE — Embattled commodity trader Noble Group said yesterday that discussions with various “potential strategic parties” are ongoing, despite a Reuters report a day earlier stating that China’s state-owned Sinochem is no longer pursuing an investment in the firm.

Following the Reuters report, which claimed Sinochem was cautious over Singapore-listed Noble’s finances and business outlook, Noble on Tuesday requested a trading halt after its stock fell 32 per cent.

Referring to queries on trading activity from the Singapore Exchange (SGX), Noble said in a filing yesterday: “The Company has previously announced it is in talks with various potential strategic parties, and has informed the market that no assurance can be given that any discussion will result in a transaction. Such discussions are ongoing.”

The company added that it was “not aware of any reason that would confirm” the Reuters report.

The filing, which was made before the markets opened yesterday, failed to stop the rout in Noble’s shares, with the share price falling by as much as 27 per cent before closing about 8.3 per cent down at S$0.385 per share.

Rating agency Standard & Poor earlier this week slashed Noble’s corporate credit ratings by three notches deeper into junk territory and warned that it might not be able to pay its debt.

Quoting three unidentified sources who were familiar with the matter, the Reuters report said that when Sinochem held talks with Noble earlier this year to buy a stake, its thinking was that a deal could help the oil, gas and petrochemicals producer to become a globally active energy trader.

But it has displayed caution about linking up with Noble after the trader posted a shock quarterly loss this month, and warned that it would not be profitable for the next two years.

Noble has been wracked in the past two years by a steep downturn in commodities markets, management overhauls and allegations of improper accounting, which the company has steadfastly rejected. AGENCIES

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