BP has been viewed as a company prime for a takeover. With the recent collapse in its share price and on going troubles with the Gulf oil spill the company has been under the magnifying glass of investors. Monday news reports came out that Texas has had oil tar balls showing up on their shores making every state in the Gulf now a victim of the spill. Recently BP stated the spill had cost 2 billion pounds ($3.12 billion) and the total could end up in the tens of billions.
Despite the oil spill news, shares in BP rose Monday with other leaking news that Middle East investors may be looking to buy major stakes in BP. A spokeswoman for BP stated only: “We welcome new shareholders and existing shareholders increasing their holding, but there are no current plans to issue new equity.”
The Guardian reported that Kuwaiti Investment Authority has been in talks with BP about increasing its already 1.75 per cent stake in the company. The United Arab Emirates newspaper, the National, owned by the Abu Dhabi government, stated that “BP knows there is potential support from the Middle East.”
Possible buyers have been speculated to be China’s PetroChina, Kuwait Petroleum, Exxon Mobile, and even Libya’s Sovereign Wealth Fund. With the news of the possible new stakeholders the stock of BP rose on Monday and closed out with an increase and they were the top riser of the day.