Shares in infrastructure and asset manager Ventia Services Group Limited continued to slide following news it is facing price fixing allegations from Australia’s competitor regulator.
However shares in Downer EDI Limited, which is subject to the same allegations from the Australian Competition and Consumer Commission (ACCC), bounced back in Australian Securities Exchange trading on Friday.
The ACCC announced on Thursday it had launched cartel proceedings in the Federal Court against subsidiaries of Ventia (ASX: VNT) and Downer EDI (ASX: DOW) and four senior executives.
At 11.40am (AEDT) Ventia shares were trading at A$3.21, down 11.5 cents (3.5%) after trading between $3.08 and $3.25 and capitalising the company at $2.84 billion, having fallen 23% on Thursday.
Downer EDI shares,, which lost 6% yesterday, were quoted at $5.405, up 3.5 cents (0.7%) after trading between $5.26 and $5.43, and valuing the company at $3.6 billion.
The ACCC said the legal action against Downer EDI subsidiary Spotless Facility Services Pty Ltd and Ventia subsidiary Ventia Australia Pty Ltd related to estate maintenance and operation services for the Department of Defence.
ACCC Chair Gina Cass-Gottlieb said the two companies provided services which were critical to the operation of Australian Defence facilities under longstanding, publicly funded Defence procurement contracts.
“We allege this conduct caused direct harm to the Commonwealth and ultimately Australian taxpayers,” Cass-Gottlieb said in a statement.
She said one program of work related to an Australian government-funded program to stimulate work for small to medium enterprises during the COVID-19 pandemic when many individuals and businesses were experiencing financial hardship.
Downer EDI said it categorically denied the ACCC allegations and would vigorously defend any proceedings.
“Downer is of the view that neither Spotless nor the two Spotless employees referred to by the ACCC engaged in unlawful conduct,” it said in an ASX announcement.
Ventia said it was reviewing the detail of the allegations and at this stage did not intend to comment further on the proceedings or the ACCC’s statement.
“Ventia is committed to ethical business practices and seeks to uphold the highest standards of governance and risk management in all our operations,” it said in an Australian Securities Exchange statement.