BP Shares Jump on Reports That Shell Considered Merger Bid

Shares of BP (BP) jumped to the highest level in six months on media reports that Royal Dutch Shell (RDS.A) considered bidding for the British company during the Gulf Oil disaster.

BP shares climbed 5% to 488.85 pence at 10:00 GMT, Reuters reported.

British newspaper The Daily Mail reported that Shell considered a bid, but was discouraged by the uncertainty over the size of the compensation claims that BP would face.

Shell has not ruled out making a bid for BP, The Daily Mail said.

One dealer told Reuters that the media reports had alerted the markets that BP shares are cheap for the industry

"BP remains cheap and vulnerable at these levels but I do not think a bid is likely," the dealer said.

BP shares may also be benefiting from comments by Ken Feinberg, the official coordinating the compensation process for victims of the Gulf oil spill.

Feinberg said in a recent interview that BP will likely have to pay out no more than about half of the $20 billion it has set aside to cover compensation claims.

BP's shares have jumped 65% from a low of 296 pence. The company's' market value is now around $140 billion.

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pemphantom

BP has become the victim of political assasination by both the Obama admin and the liberal media. Firstly is is amazing just how quickly BP was able to clean-up the worst oil spill in history, considering we are still suffering from the affects of Exxon Valdez in Alaska. Ombama has personally demonized BP who are one of the biggest employers in the oil industry and he has done everything possible to BK the company with his excessive demands for compensation, fines and threats of criminal activities. Obama is the worst President in American history and should not be allowed to continue in office one day more than is absolutely necessary, which was yesterday!

January 04 2011 at 5:35 PM Report abuse rate up rate down Reply
erink91321

The closer we get to Summer when Gulf water Tempratures rise over 100 degrees, We Will see the Real results of this Oil Disaster. 80 Percent of the Oil is Still at the Bottom of the Gulf and Weighted down by Chemical dispersants and this Oil Will rise up to the surface with any modest Temp change on the Gulf floor. Once on the Surface, the Gasses emitted from this Toxic stew Will be Unbreathable and Will blow with the Wind toward the Gulf States. There Will be Many Health issues as a Direct result. States like FL., AL. and LA. will be especialy Hard hit with Toxins in the Air ,on the Beachs and in the Drinking Water. Yes, this is going to be one interesting Summer

January 04 2011 at 10:12 AM Report abuse -1 rate up rate down Reply
3 replies to erink91321's comment
baywoodfarm1995

I would imagine that Shell was also well aware of this pending $10 billion class action lawsuit against BP, launched in the spring of 2010, that had nothing to do with the blowout:

http://viableopposition.blogspot.com/2010/08/more-problems-for-bp-at-texas-city-part.html

January 04 2011 at 8:32 AM Report abuse rate up rate down Reply