Shares of Cobalt International Energy Inc., the offshore oil explorer backed by Goldman Sachs Group Inc., rose the most in two months after Morgan Stanley said it doesn’t believe the explorer will lose stakes in Angolan properties.
Cobalt climbed 4.9 percent to $27.63 at 11:49 a.m. Tuesday in New York. The stock earlier increased as much as 8.4 percent, the biggest intraday percentage gain since Feb. 16. Cobalt fell 7.2 percent Monday.
Two Angolan officials confirmed concealed stakes in Nazaki Oil & Gas SA, a partner in Houston-based Cobalt’s offshore Angolan operations, which may raise questions about compliance with U.S. anti-bribery law, the Financial Times reported this week.
“The market is overreacting to worries of alleged” Cobalt violations, analysts including Evan Calio said in a Morgan Stanley morning equity summary. Cobalt has “no risk of losing” its interests in pre-salt Angola blocks under U.S. law, according to the note.
Cobalt said in a statement Monday that it is confident it hasn’t broken any U.S. or Angolan laws. The company started an investigation into its Angolan business relationships in 2007 and will maintain “rigorous due diligence” in its worldwide operations, according to the statement.
Goldman Sachs held 16.05 percent of Cobalt as of Feb. 29, according to data compiled by Bloomberg.
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