The news last week that the US Department of Justice (DOJ) is subpoenaing Norwegian salmon producers Mowi, SalMar, Grieg and Leroy in connection to price-fixing allegations brought earlier this year, sent stock prices spinning, with most Norwegian farmers down 5 percent Friday, according to salmon analysts at Sparebank 1.
The estimated collective loss in market capital for the four farmers added up to around NOK 10 billion (€990 million/$1.1 billion) in a calculation by Sparebank that excludes around 60 percent of Leroy's loss, likely tied to its less than overwhelming third quarter reporting.
The US DOJ statutory maximum penalty is $100 million if the farmers are found guilty (€90.3 million) and the EU Commission's maximum penalty is 10 percent of total group revenue. For the four farmers, the worst case scenario would entail an estimated NOK 3.7 billion (€366.3 million/$407 million) in potential US fines and NOK 7.7 billion (€762.3 million/$847 million) in EU fees.
Slight recovery
Monday saw most of the four companies' stocks stage some kind of partial recovery, apart from SalMar, with the weekend seemingly doing little to quell its investors' fears.
SalMar's stocks plummeted 1.08 percent mid-morning, rounding to a further dip mid-afternoon, down 1.28 percent on opening price at NOK 400.80 (€39.70/$44.10), before ending the day 0.49 percent down at NOK 404 (€40/$44.40).
Mowi on the other hand, after an initial fall to NOK 218.60 (€21.60/$24), staged a gradual attempt at recovery through Monday, it's shares finishing up 2.23 percent at NOK 224.90 (€22.30/$24.70).
Leroy, too, after an early morning fall to NOK 53.82 (€5.30/$5.90), saw some ups and downs but essentially rose through the day, finishing 2.19 percent up at NOK 55 (€5.40/$6.10).
Grieg's shares followed a similar path through Monday, finishing 1.64 percent up at NOK 136 (€13.47/$14.91) on the start of the day, following a low of NOK 134 (€13.27/$14.70) just after the start of trading.
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