SEE WHO MIGHT BAIL OUT BP…..
http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7871523/BP-oil-spill-oil-giant-explores-Middle-East-investment-to-fend-off-rivals.html
BP reportedly turns to Mideast investors to help it stay afloat
BP is discussing a strategic investment from Middle Eastern financial institutions in order to remain an independent company, according to media reports. The company reportedly approached institutions in Kuwait, Qatar and Abu Dhabi, United Arab Emirates. A 50% drop in BP’s share price has made the company vulnerable to competitors interested in taking over the whole company or its desirable holdings. Telegraph (London) (04 Jul.) , Reuters (04 Jul.) , The National (Abu Dhabi, United Arab Emirates) (03 Jul.)
http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7871523/BP-oil-spill-oil-giant-explores-Middle-East-investment-to-fend-off-rivals.html
Institutions in Abu Dhabi and Qatar are understood to have been sounded out about the prospect of taking a strategic shareholding to support the ailing share price and deter potential bidders. The Kuwait Investment Office (KIO), now down to a 1.75pc holding after being rebuffed in an earlier attempt to take over BP, is also being targeted.
The tactic worked successfully for Barclays at the height of the banking crisis. International Petroleum Investment Company (IPIC), a state-owned Abu Dhabi business and the Qatar Investment Authority stepped in to buy shares and provide much of the backing needed to avoid Barclays following the Royal Bank of Scotland and Lloyds Banking Group in seeking a government handout.
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Sheikh Mansour bin Zayed al-Nahyan, head of IPIC and owner of Manchester City FC, was a key figure in Barclays’ £7bn capital raising exercise almost two years ago when Middle Eastern investors, including the Qatari royal family, stumped up £5.3bn of the total. A year ago IPIC sold its 11pc Barclays stake and walked away with a profit of £1.45bn.
Senior figures in Middle East financial circles said proposals linked to the strategic investment have been presented to BP. One told The National newspaper in Abu Dhabi: “BP knows there is potential support from the Middle East.”
IPIC has major stakes in 14 international oil and gas businesses and a foothold in BP would provide powerful leverage for the group. Some analysts feel BP’s $10bn asset sale might prove a more attractive proposition but there would be more than a touch of irony if the KIO ended up raising its stake. More than 13 years ago the KIO, after saving a BP share sale from disaster, was prevented from using its 21.7pc stake to mount a takeover bid.
The 50pc slump in its share price since the Gulf tragedy has made BP increasingly vulnerable to a takeover although there is little enthusiasm among potential bidders, led by Exxon Mobil and Shell, to move in until the Gulf crisis eases.
Analysts feel that any new BP investor would want reassurances about the post-Gulf outlook for the group and an end to the uncertainty about boardroom changes. Continued speculation about the departure of chief executive Tony Hayward and chairman Carl-Henric Svanberg has damaged morale and divided investors anxiously waiting for the second quarter earnings figures on July 27 when BP will attempt to provide more detailed estimates about the potential cost of the Gulf episode.
Boardroom unrest and dismay among former senior BP executives about how the calamity has been handled have added to the tension inside the group as it attempts to halt the flow of oil and damage to the Gulf economy and environment. The first of two relief wells is reaching a critical position to break into the damaged well to inject mud to halt the flow of oil and gas, but it will be several weeks before the sensitive manoeuvres are completed.
BP managing director Bob Dudley – one of the front runners to succeed Mr Hayward and the executive in charge of the Gulf operation – has revealed that the company is discussing contingency plans with the Obama administration if the relief wells fail. He said the two sides are exploring at least two other options to divert the flow.
On the surface the world’s biggest skimming vessel, called A Whale, has started tests to see if it can accelerate the clean-up. The vessel is said to be capable of skimming 21m gallons of oil a day, at least 250 times the amount that modified fishing vessels are collecting.
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