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7. BP Seen Takeover Target After Settlement as Value Trails
Mon Nov 19, 2012, 09:04 AM
Nov 2012
http://www.bloomberg.com/news/2012-11-19/bp-seen-takeover-target-as-valuation-sinks-on-settlement-energy.html

The onetime Mississippian and current chief executive officer has sold more than $50 billion of assets to pay the costs of the worst U.S. oil spill in history in 2010. Rescued from the brink of collapse, Europe’s second-largest oil company is now seen as vulnerable to a takeover.

BP is the cheapest of the world’s five biggest non-state oil companies by market value relative to reserves, earnings and output. As a result it may become a target, according to people familiar with the strategic thinking of the London-based company and its potential acquirers.

Dudley’s boldest move as the first American in charge of the 103-year-old British company was last month’s exit from a turbulent Russian venture in exchange for a 20 percent stake in state oil company OAO Rosneft (ROSN) and $12.3 billion in cash.

The deal solved one of BP’s two biggest challenges. The other, litigation in the U.S. over fines from the spill, came closer to a resolution last week with a $4.5 billion criminal settlement. The civil claims may vanish in a settlement before the trial set to start Feb. 25.
Latest Discussions»Issue Forums»Environment & Energy»Give BP the Death Penalty»Reply #7