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Award of casino bid not known yet: Lian Beng

SINGAPORE construction firm Lian Beng Group, whose share price rose 8 per cent yesterday on speculation that it has won a $500 million casino project, said it has not been told of the outcome of its bid.

‘Lian Beng has submitted a tender but has not been informed of the outcome yet,’ said a company spokeswoman.

A source said the contract to build a part of an upcoming multi-billion dollar Marina Bay Sands casino in Singapore is likely to be awarded next week. A consortium comprising Lian Beng and Koh Brothers, which both called for trading halts yesterday, and privately-held Gammon, are the two shortlisted bidders for the project, the source said.

CIMB-GK Research said in a note yesterday that Lian Beng Group has the advantage of knowing the ground conditions well at Marina Bay, and said it was one of two contenders.

‘We believe LBG stands a better-than-average chance of clinching the casino/museum contract,’ said analyst Song Seng Wun at CIMB-GK, maintaining an outperform rating on the stock and raising its target price to $1.14 from $0.89.

Shares in Lian Beng climbed 7.8 per cent to $0.76 before the trading halt yesterday. The stock has more than tripled this year. Koh Brothers jumped 24.3 per cent yesterday, versus a 0.2 per cent drop in the broader Singapore index.

 

Source: Reuters (Business Times 7 Dec 07)

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