BP shares are up nearly 7% in London amid reports the company is preparing for a takeover defence against potential competitors such as Exxon, Chevron, or even PetroChina says the Telegraph. It’s also making progress on its relief wells in the gulf.U.S. oil majors Exxon (XOM) and Chevron (CVX) reportedly already asked for clearance from the U.S. government, and have been approved.
Thus BP is set to disclose a $40 billion defence plan with its July 27 results. Options include increasing asset disposals or increasing the amount of debt in the company’s capital structure. One wonders if blatant forms of takeover defence, ie. poison pills, will be used as well.
Regardless of the details behind this M&A dance, for traders this M&A interest could mean we’ve already seen the bottom for BP shares. It’s not just one company sniffing this sold-down stock, it seems multiple energy giant see value in the company at current prices. Even if part of their interest is to scoop up hastily-sold assets from the troubled company as well.
Don’t forget Middle Eastern companies are interested in BP too.
Business Insider Emails & Alerts
Site highlights each day to your inbox.