Sign in to comment!

Menu
Home

World

Negotiations break down for Panama Canal expansion financing, shares plunge for Spain builder

3a81a564f16fe1044a0f6a706700e46f.jpg

A cargo ships sails though the Miraflores locks on the Panama Canal in Panama City, Tuesday, Feb. 4, 2014. On Tuesday the Spanish-led consortium leading the expansion of the Canal will meet with the canal administrator and the canal authority's insurer, meanwhile a deadline is running in an attempt to resolve the dispute over who should pay for the cost overruns of the expansion project and avoiding a halt in the work. (AP Photo/Arnulfo Franco) (The Associated Press)

The Spanish-led construction consortium leading the expansion of the Panama Canal says negotiations have broken down for how to finance a $1.6 billion cost overrun and is warning that 10,000 jobs are at risk as a result.

The group known as United for the Canal says in a statement that the halt to talks puts the jobs at "imminent risk" and that the dispute could last years if a solution is not found soon.

Shares of Spanish firm Sacyr SA, which leads the consortium, plunged 6.4 percent Wednesday morning in Madrid. Shares of Italy's Impreglio SpA construction firm, which is also in the consortium, fell 2.4 percent in Milan.

The consortium and the Panama Canal Authority are blaming each other for the overruns.

See the latest updates on the hottest midterm races from Fox News

Full Elections Coverage →

Keep up with all the 2014 races in

Coverage →