Italy 's securities regulator has imposed a two-day ban on short selling of Saipem SpA (SPM.MI) shares after Europe 's biggest oil services company issued a profit warning for the second time this year.

At 1035 GMT, Saipem shares plunged 25% to EUR14.92, even as Italy 's benchmark FTSE Mib Index gained 0.5%. Consob, the Italian market regulator, said the ban on short selling would last through Tuesday.

Late Friday, Saipem surprised investors with its second profit warning this year, citing worsening operations in Algeria , where the company is the focus of a corruption investigation. Saipem, which is 43%-owned by Eni SpA (E), denies any wrongdoing.

The Milan-based company also said it was having trouble with subcontracts for a project in Canada and one in Mexico .

Saipem said it now expects a 2013 net loss of between 300 million euros ($400 million) and EUR350 million on earnings before interest and tax, or EBIT, of between EUR650 million and EUR750 million.

The company had forecast a 2013 net profit of about EUR450 million and EBIT of EUR750 million.

In January, Saipem shares lost more than a third after the first profit warning, which followed months of optimistic assurances from top management.
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