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Shares in engine manufacturer gain despite heavy penalty
Thursday 19 Jan 2017 Author: William Cain

The stock market can be a confusing beast: shares in
Rolls-Royce (RR.) gained more than 7% when it said it had been fined £671m.

Investors may have been expecting a more punishing settlement for the aircraft engine manufacturer after allegations of bribery first surfaced in 2012.

Analysts at Berenberg say Rolls should be able to foot the bill comfortably given its low debt load. ‘Financing and scheduling of payments do not present a major problem, in our view,’ they say.
Rolls also said trading was strong in the final three months of 2016.

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