Chicago Bridge & Iron Co. (NYSE: CBI) received a massive boost today from the Delaware Supreme Court. The stock rocketed up over 22% after the judge ruled in favor of CBI in the Westinghouse case.
The two had brokered a deal in 2015 in which Westinghouse purchased CBI’s nuclear construction business, Shaw. The deal had included no upfront payment, but instead was structured around the idea that Westinghouse would absorb all the debts associated with the plant and handle the expenses from then on. The two had been working together on building two nuclear power plants in Georgia and South Carolina, and the deal would have gotten the construction back on schedule.
What had happened afterwards was a struggle over both the legitimacy of the deal and the real cost. Westinghouse claimed that CBI had not fully disclosed the details of the deal and that the amount owed to Westinghouse was roughly $2 billion, whereas CBI had claimed the number was closer to $428 million. It further argued that Westinghouse was attempting to lower the price of the deal by disclosing information that was supposedly withheld from them at the time of the acquisition. However, CBI claims that no such information as withheld and Westinghouse is just using it as a ploy to lower the amount of money it needs to cover.