BP shares hit 14 year low
Shares in BP fell to a 14 year low yesterday amid concerns the company may well have to go cap in hand to shareholders for additional funding. There is also speculation that if BP was forced into the money markets to raise funds then the company would likely pay a premium over and above the average interest rates at the moment. So when will this nightmare end?
When you consider the damage to not only the environment but also the reputation and the share price of BP there is little doubt that this oil disaster is one of the worst in living history. BP has already agreed to a US$20 billion bailout fund as well as covering additional costs for the cleanup and compensation in the future. One of the main problems is the fact that the issue is not yet over and each day brings more costs and more damage to the company's reputation.
While there has been some criticism of the US government, and it's reluctance to become directly involved in the capping of the broken well, we do need all parties to pull together to bring this situation to an end. But which party is willing to give ground first?
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