BP faces ExxonMobil takeover bid speculation

[IScreamSundays]

Source: guardian

BP was at the centre of fresh takeover speculation after weekend reports suggested the Obama administration has told ExxonMobil – the world's largest oil firm – that it would not stand in the way of a takeover bid for the stricken British rival.

Before the Gulf of Mexico oil spill BP was Britain's biggest company with a stock market value of £121bn. Since then more than £50bn has been wiped off its share value and a number of potential bidders are rumoured to be circling to take advantage of its weakened state.

Oil industry sources were quoted as saying that ExxonMobil had been given a green light by the US government to "take a look" at BP. A merger would create a group with a stock market value of $400bn (£265bn). Both firms refused to comment on the speculation.

BP's chief executive, Tony Hayward, is well aware of the threat of a hostile bid and last week held a series of meetings with potential "friendly" investors including the Kuwait Investment Office. A big strategic investor would make it harder for the likes of ExxonMobil or China's National Offshore Oil Company (CNOOC) to win control in a hostile takeover bid.

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Read more: http://www.guardian.co.uk/business/2010/jul/11/bp-faces-exxonmobil-takeover-bid-speculation

[Sebastian Doyle]

1. Well, there's good and bad news here.

Good news is, it would reduce the number of oil companies I'm boycotting to one.

Bad news is it would reduce the already too small number of oil companies in general, which would only increase their power and price fixing scams.

This merger probably shouldn't be allowed. But I doubt a corporate friendly administration will stop it :evilfrown:

[truedelphi]

3. That's my take too.

And whoever ends up in charge of BP will Enron-ize those sectors of it that are responsible for payouts.

Supreme court is already in the pockets of all the big industries. And Kagan is as Corporate friendly as the rest of them.

We activists thought that maybe remedies could be found in newly appointed Obama appointees' court system.

But it is all Just One Big Money Party.

[xxqqqzme]

10. Yep, After all Exxon has the

experience in beating those big pay-outs.

On the bright side, it will allow hayward to get HIS life back to normal sooner.

[wordpix]

14. what can any admin opposed to the multinational giants do, even if an admin tries?

the corporations own America so O can't do much

[XemaSab]

18. Word up

n/t

[roguevalley]

20. exxon can show bp how to get away with murder.

[metapunditedgy]

2. Will a deal get cut to absolve Exxon of liability, or to cap the liability?

I've got my hands around my ankles waiting to see how this is going to turn out...

[Radical Activist]

4. I hope the "oil industry sources" are lying.

Could we expect Exxon to avoid liability just like they did for the Valdez?

[bushmeister0]

5. Oh gosh, Obama is such a socialist!

WTF is he thinking? Why not just let all them merge and we can just give up on the idea of nation states and become one world working for Engulf and Devour.

[Dover]

6. Ummmm....can anyone say ANTI-TRUST laws?

How could this possibly be legal by any measure?

[dipsydoodle]

9. That subject was mentioned back in May/June

in this very connection i.e Exxon.

[SalmonFritters]

12. Because even if they merged they wouldn't be as big as their competitors, the State Oil Companies

Of Saudi Arabia, China etc

[Tejas]

7. Wonder if this correlates with the spike

in Exxon television advertising? Their commercials have been hammering home how Exxon is striving for "clean" products. How long before Exxon starts using unicorns in their commercials?

[dipsydoodle]

8. That may help explain

why BP have been talking to the UAE and Kuwait SWF's : to redistribute share holdings. They didn't hide that fact.

BP, since 2000 has bought back some of its own shares. It currently, end of 2009 , owns 4.29 billion shares.

[bobburgster]

11. Geez,, does every thread have to turn into an anti-Obama ad?

The negative hopscotching thought processes, based on "Oil industry sources", that lead to Obama somehow being complicit with ExxonMobil in denying money to victims of the Gulf disaster is a bit of a stretch.

[Jennicut]

13. I agree. My feeling is, BP might go under anyway with the cost of the this spill.

However, the question then becomes who would be responsible for the payments on victims to the Gulf and cleanup costs that will be ongoing for years.
I can't decide if it would be a bad thing or good thing for another company to take them over.

[wordpix]

15. perhaps O believes XOM can pay the bills, come what may, whereas a defunct BP can't or won't

[Jennicut]

23. That is what I think.

[applegrove]

16. I wonder how the oil companies will wind down as peak oil hits and their profits start to fall, if

profit falls that is. Could it be that oil companies make more money during peak oil because the price goes up?

[XemaSab]

17. Good, then I'll only have ONE great satan to boycott.

n/t

[Hydra]

19. ...I hate calling things like this

Doomsayer: 78ish
Naysayers: 2

Exxon will buy them up for cheap, and will not be liable for damages.

[cbdo2007]

21. Well that would be some good news for BP shareholders. Maybe now is finally the time to buy in

for those of you out there looking to make a dime off this disaster.

I'm not one of those by the way but people have been speculating on when the optimal time to buy in to BP would be.

[sofa king]

22. Yesss... put all of the used diapers in the same bag.