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Description:  Encana Corp. has launched an internal investigation after the State of Michigan said it is examining allegations that the company worked with rival Chesapeake Energy Corp. to avoid competing in state land auctions for shale gas.

Source: GlobeandMail.com

Date: June 26, 2012

Link: http://www.theglobeandmail.com/globe-investor/encana-probes-collusion-accusation/article4368056/

Questions for Discussions:

  • What are the financial implications for both firms if collusion is found to be true?
  • How should companies manage this sort of risk?
  • Do you believe there is a case to be made?
  • How would you advise investors?

 

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