Could the Gulf of Mexico disaster bring down BP?
As the oil disaster in the Gulf of Mexico continues, with very little in the way of good news on the horizon, there are serious concerns about the future of BP especially after US authorities announced a criminal investigation into the accident. We have seen tens of billions of dollars wiped off the value of BP on stock markets around the world and there are some real doomsday scenario figures floating around regarding the potential cost of the disaster.
There has also been talk of a potential bid for BP from competing oil companies but whether anybody would want to get involved in a situation which could see fines in the tens of billions levied against the company remains to be seen. The latest estimates suggest that the broken pipe will not be fixed until August at the earliest which means we will see hundreds of thousands of barrels of oil pumping into the Gulf of Mexico for many days to come.
A number of experts are surprised that the US authorities have yet to become involved in the rescue operation although there were earlier suggestions that legally BP will need to address this issue itself. This seems rather bizarre when you consider the potential damage to the environment from the pollution pumping across hundreds of miles of shoreline.
Share this..
Related stories
Is Barclays Bank on the verge of a substantial disposal?
Rumours are sweeping the market that the ongoing sale of Barclays Bank's iShares business is on the verge of being completed with a £3 billion price tag being suggested by market insiders. It is well known that the group has been in talks with CVC Capital Partners about the sale of the business with Barclays Bank likely to retain a 20% share for the future. As we covered on one of our earlier pos...
Read MoreIs there a counter bid on the way for HBOS?
It has been revealed that plans for a counter bid for HBOS are well underway with leading Scots financier Jim Spowart apparently the man chosen to head the consortium bid if it ever gets off the ground. The Scottish government has become involved and Scottish secretary Jim Murphy is believed to be in talks about a possible second bid for the bank.
While the government has been very...
Can Woolworths be saved?
As the demise of UK retail stalwart Woolworths continues to dominate the financial press headlines, there are suggestions that the rescue bids are already in the offing and could materialise at any time. There is even a suggestion that one of the stars of "The Dragon's Den" may well be ready to step forward with an offer for the group.
If a potential buyer was able to negotiate a pr...
The reason I am so rich is because......
If there is one statement and one philosophy which sums up the UK investment market it is the strategy of Lord Rothschild who famously commented that "The reason why I am so rich he is because I always sold too early". So what exactly does this mean and does it work in practice?
The philosophy behind Lord Rothschild's investment strategy is the fact that each and every sector, each...
BSkyB agrees to sell part of ITV stake
After a very expensive two-year legal battle BSkyB has finally agreed to sell around 10% of the company's near 18% stake in ITV. The situation can be traced back to the Competition Commission ruling back in 2008 which concluded that BSkyB could have undue influence over ITV it was able to maintain its 17.9% stake. The overall state stake is now running at a loss of £330 million and has been nothi...
Read More