International Power joins US Sarbox exodus
International Power cites compliance costs as reason for leaving
Three FTSE 100 heavyweights have pulled out of US listings in a seven-day
period, as the trickle of exits threatens to become an exodus.
Last week, International
Power said it was followinG ICI and United Utilities in a withdrawal.
International Power’s statement said only that it was pursuing the move ‘with
the aim of reducing compliance costs’.
The US is trying to water down the Sarbox rules, but the exits suggest it may
be too little, too late.
ICI said that costs incurred using external suppliers and auditors to provide
ongoing support to Sarbanes-Oxley compliance outweighed the usefulness of being
listed in the US. ICI is now expecting to generate cost savings of £4m a year
after jettisoning the onerous demands.
In a statement, ICI CFO Alan Brown said: ‘It no longer makes sense to submit
to the reporting obligations under the Exchange Act. This decision is consistent
with our strategy of improving our long-term cost effectiveness as it reduces
complexity without detracting from the integrity of our governance and control
processes.’
All three companies will continue to comply with the Combined Code on
Corporate Governance and the UKLA listing rules.
For more go to www.sec.gov