Gulf oil spill: BP to go ahead with $10bn shareholder payout

[seafan]

Source: Guardian (UK)

Tony Hayward, BP's embattled chief executive, will risk incurring further wrath in the US over the Gulf oil spill tomorrow by defying calls from politicians to halt more than $10bn (£6.8bn) worth of payouts due to shareholders this year.
He will hope to appease City investors by promising in a conference call with analysts to stick with BP's dividend policy amid mounting concern about a plunging share price.

BP declined to comment on its strategy tonight but it is understood that Hayward will say he is confident the company can pay for liabilities resulting from the Deepwater Horizon rig explosion – now estimated by analysts at $20bn to $60bn – as well as rewarding investors.
The move follows demands from senators Charles Schumer and Ron Wyden in a letter to Hayward all dividends be halted until the cost of the clean-up is known.

Analysts warned that committing to the dividend risked further political opprobrium in the US, with Alex Stewart from Evolution Securities fearing it could force Hayward to make a U-turn next month. BP reports its results on 27 July, when it will announce the size of its next quarterly payout, but it is expected to spend more than $10bn in total dividends this year.

"The problem they have is that the oil is likely to be still flowing by the time they announce results," said Stewart. "It's not going to look good paying about $3bn in dividends to shareholders if at the same time local fishermen are having their livelihoods destroyed in the Gulf."

Read more: http://www.guardian.co.uk/environment/2010/jun/03/gulf-oil-spill-bp-dividend

---

BP's assets should be immediately seized before huge sums of money are paid out to executives and shareholders, conveniently leaving the American public with the bills.


What we need most of all now is courageous leadership.

[LakeSamish706]

1. The Obama Administration wont do it... not going to happen. n/t

[Ruby the Liberal]

14. What legal authority does he have over a transnational corporation?

I am thinking DOJ would have to do something, but then again, I am not well versed in the law.

[roguevalley]

22. he could have put liens on their assets in the us and there's the

world court. letting them off without taking them over, which he can do as Truman did during the war is a big mistake. Arrest them that are here in this country and put their sorry asses in jail. make the damned laws later if need be. Yes, I am at that point!

[Nihil]

25. Ha ha ha - nice one!

"and there's the world court."

:rofl:

Condition of entry: Being prepared to be on the RECEIVING side of justice
rather than just the vigilante/bully/only-when-we-want-help side.

[w4rma]

2. Here we go again. Obama gets walked all over by the big boys. (nt)

[Angry Dragon]

3. No.......it is his choice

He can either stand up to the big boys and say enough is enough
or not....his choice

[Doctor_J]

9. that's exactly what w4rma said

:shrug:

[Iowa]

11. You beat me to it.

[roguevalley]

23. what slays me is that he's a lawyer and he doesn't use the law to

enforce our rights, you know, the 'little people' who get stuck with the damned bills and shitty end of the stick. there are laws, he won't use them. might make someone mad I guess.

[dipsydoodle]

4. Whilst it might be a bit tactless given current circumstances

the only way in which it could actually be prevented would be for the US government to buy control of BP plc. JP Morgan Chase own 27% so the shares wouldn't be that difficult to round up - would cost a small fortune though.

That's an unlikely event anyway apart from which they'd probably be outbid by China.

[wordpix]

16. US should BUY BP? US should take it over and seize its US assets

otherwise, BP will pay out the BigBoy shareholders & then declare bankruptcy, leaving US holding the bag of bills for the whole Gulf Coast maybe up the south Atlantic.

[Overseas]

5. K&R-- more evidence of what BP cares most about. //nt

[wordpix]

17. no joke---this enrages me even more than I was before

[Newsjock]

6. 100% tax on dividends paid to shareholders of oil companies that have spilled >1k gallons

That ought to deal with it quite nicely.

[cutlassmama]

8. +1000

[wordpix]

19. add me in, too

[Wizard777]

7. Looks like the CEO's gonna get a whole lot more than his life back.

[Scuba]

10. Quick, privatize our profits....

...so we can socialize our losses.

[rzemanfl]

12. Transfer in fraud of creditors. The lawyers will have a field day

with this.

[meow mix]

13. arrest tony

and the others responsible, would be my reaction.

[Rosa Luxemburg]

15. Yikes!

[GeorgeGist]

18. When terrible people flew jetliners into the World Trade Center ...

President Bush had the courage to freeze their assets.

In contrast, President Obama demonstrates "Change you can believe in".

[wordpix]

20. don't freeze BP's assets---seize them before the criminals take off with the loot

EXACTLY what Wall St. did before Bush left office with the bailouts.

[Doctor_J]

21. actually bush flew obl's brother to safety, and his lawyer Jim Baker defended

the hijackers from lawsuits. so take your smirk-loving ass somewhere else.

Edit: And he attacked IRAQ, not Saudi Arabia where the hijackers and Bush's business partners lived.

[Nihil]

24. Thank you for that!

Saves me having to slap Mr.Rove around the head with the facts.

[depakid]

26. Apparently, the administration's admonishment on this didn't carry much weight