s some attractive assets and the stock is going nowhere fast. So as to the board of directors of BP that is a non-issue. XOM could buy them, divest some of the assets and make huge profits in the process. XOM needs some oil reserves and some Midwest refineries to run Canadian/bakken Crude. Oh, who conveniently dispose of their California and Texas refinery? Who has a couple of Midwest refineries? Who has some attractive pipeline assets in North America? I could go on. Never, say never. Exxon took over Mobil in the October/November timeframe, BP took over Amoco in the October/November timeframe. BP will be bought by someone, just a matter of time! As I have stated before Dudley was schooled well by Larry Fuller! Me think the purchase price will be around $10 bucks above it's current price! It's coming. The litigation is winding down on Macado.
Oil major BP attracted takeover speculation today, providing a diversion for traders as the wider market slid lower with little real conviction.
Shares in the FTSE 100 company rose as much as 1.8pc on dealing room talk that Exxon Mobil was poised to make a bid for the FTSE 100 company.
Such gossip is not new. In 2010, following the Gulf of Mexico disaster, there were frequent rumours that BP was vulnerable to a takeover, with Exxon named as a potential predator.
Having been here a number of times before, many dealers were not convinced by yesterday’s revived chatter, although that did not stop BP from finishing up 1.95, or 0.4pc, at 442.05p in a weak market.
Following its 1pc jump a day earlier, the FTSE 100 shed 28.96 points, or 0.4pc, to 6,596.43, slipping lower after James Bullard, the head of the St Louis Federal Reserve, said the US stimulus measures could be scaled back next month. At first, the fall was not decisive, with the decline only accelerating towards the end of the London session as US markets lost ground
The other thing that occurred during the week that I thought was very, very odd was the cancelation of the Mad Dog expansion. That is about a 10 bil cost with a real nice payout over five years. Very odd things going on so maybe some of this lends credence to the takeover talk.
From the valuation perspective, I think that it makes sense for ExxonMobile to look at it. Otherwise, they are not doing their job to increase their company profits and growth. Now is different from 2 years ago. There are more clarity in terms of BP liability. Undoubted, BP is selling at a discount to all oil majors. The amount of synergy generated by 2 global giants is hugh! Strategically , it is the right move and the right timing as world economy is recovering and BP law suit is there to depress the price by 40%. It they wait too long to bite, interest of financing will increase, tapering of BP lawsuite will increase BP price. Can't you see BP just cancel their big capex to welcome the suitor .