Shares in private equity-backed government consultant Booz Allen dropped after its employee Edward Snowden leaked details of two surveillance programmes run by the national Security Agency (NSA).
The company, which is majority owned by buyout firm Carlyle, dropped 2.56 per cent to $17.54 per share on the New York Stock Exchange yesterday amid concerns that Snowden’s actions will affect its ability to secure government contract, which are the main source of its revenues.
Washington-based Carlyle bought a majority stake in Booz Allen’s government consulting business for $910m in 2008 and currently holds two thirds of the company, which was floated in 2010. The firm has so far made $2bn in realised and unrealised profits on the deal and its investment is currently worth $3bn, according to Forbes.
Booz Allen posted profits of $219m on revenues of $5.76bn for the fiscal year to end March.
Last month Snowden revealed that the National Security Agency runs phone and internet surveillance programmes, analysing data for possible links to terrorist groups abroad. He revealed himself as the source of the leaks after leaving the US for Hong Kong.
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