BP continues negotiations to avoid a government takeover
As BP shares of the FTSE Index rise 7% in the wake of negotiations concerning the company’s desperate attempts to to avoid a takeover, BP may be selling off much of its shares to US oil companies Chevron and Exxon. BP has highlighted it will introduce a $40 billion defence plan which will be released on July 27th. Currently, shares are up by 10.45p, 2.62%, to a figure of 409.40p.
The company is currently waiting to find out whether its recent attempt to contain the oil spill in the Gulf of Mexico has been a success. So far this month, the company’s shares have increased by 30 percent in light of its plans to stop the oil leak which has been an environmental diasster. It has received intense coverage by both the US and international media, with provocative remarks such as ’kick some ass’even uttered by President Obama, in response to the crisis. However, markets remain nervous as they wait for BP to provide confirmation on whether the oil spill containment plan has worked, before they can move forward on negotiations. The containment plan involves blocking various pipes and putting pressure on the oil well to prevent further spillage.
BP is currently involved in talks with the America’s largest oil field, Prudhoe Bay, concerning the possibility of selling off its 26% stake in the company to the American Apache Oil Corporation. The US government has also approved ExxonMobil’s plans to offer BP a multi-billion pound bid. There have been no confirmations concerning rumours that BP may be subject to a hostile takeover plan
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