Could BP be taken over?
The share price of BP has collapsed since the Gulf of Mexico oil disaster occurred and fallen to such a level that some analysts believe the company could actually become a takeover target. Indeed there has also been talk that the company is looking towards bankruptcy protection in the US although this has been denied by management.
While on the surface BP could easily become a takeover target we need to appreciate the situation at the moment both for BP and the oil industry as a whole. Nobody has any idea how much it will cost to clean up the Gulf of Mexico oil slick and there is also the real threat of fines from the US government as well as compensation to affected parties. When you also take into account the likelihood that oil exploration licences could be few and far between in the future and indeed many companies could be forced to suspend current offshore activities the problems begin to mount.
Against this backdrop the financial strength of companies such as Shell Transport and Trading could be impacted in the medium to longer term therefore making a potential bid for BP very risky. The share price of BP has fluctuated enormously over the last few weeks and registered its biggest recovery for some time on Friday.
Share this..
Related stories
Royal Bank of Scotland class action goes ahead
A group of Royal Bank of Scotland shareholders, by the name of the RBS Action Group, are going ahead with a class-action claim that they were "misled" during and after the Royal Bank of Scotland's £12 billion rights issue last year. The group claim that the directors of the Royal Bank of Scotland failed to make them fully aware of the financial situation regarding the group and the risks of inves...
Read MoreIs the small business sector dead?
While the headlines are currently dominated by the larger companies in the UK and the torrid time many are experiencing in the current downturn there is little mention of the small business sector. However, there are still many small businesses which are proving very successful even in these difficult times as very often they are able to cut costs to the bone quicker than their larger counterparts...
Read MoreAre you making best use of tax efficient investment vehicles?
In everyday life the government seem intent on taking as much tax as possible with many taxpayers questioning what they actually receive in return. However, there are a number of long-term tax efficient savings vehicles which many people seem to ignore at their peril and their long-term cost. But why would a government incentivise the UK public to save for their future?
In simple te...
Is it time to dip your toe in the UK property market?
On the surface, with increased mortgage lending, potential takeover activity in the corporate property sector and some analysts suggesting the worst is over for the housing market, many people are looking again at the UK property market. However, there are also many factors working against a short to medium-term recovery in the UK market such as rising unemployment, Bank of England scepticism rega...
Read MoreCadbury melts into the arms of Kraft Foods
Cadbury and Kraft Foods today issued a joint statement confirming they were "finalising the terms of a recommended offer" which is believed to be the region of £8.50 a share. The recommended offer is expected to be announced today ending 150 years of independence for the UK chocolate giant. But is this the end of the game? Despite rumours that US outfit Hershey is waiting on the sidelines with...
Read More