Encana stock drops on report of land-price collusion with rival in Michigan
Posted June 25, 2012 1:22 pm.
This article is more than 5 years old.
Shares in Encana Corp. fell about five per cent after it was accused in a news report of colluding with a U.S. rival to keep down land prices in Michigan.
The stock was at $19.35 on the Toronto Stock Exchange around midday, a drop of $1.02.
The Reuters article quotes what it characterizes as emails between employees of Calgary-based Encana and Oklahoma-based Chesapeake Energy.
The report alleges the companies talked about ways to avoid bidding against one another for land in Michigan’s Collingwood shale region, both at a land auction two years ago and in at least nine prospective deals with private landowners.
Chesapeake spokesman Jim Gipson says Encana and Chesapeake discussed forming an “area of mutual interest” joint venture in Michigan, but no deal was reached.
In an email to The Canadian Press, he also says the two companies did not make any joint bids.
