Shell considered takeover bid for BP
Royal Dutch Shell considered placing a takeover bid for the British oil company BP, after an explosion on one of its drilling platforms led to a huge oil disaster in the Gulf of Mexico according to British daily newspaper . Its claims are based on sources in the Anglo-Dutch oil company.
Shell decided against the bail out when BP was confronted with huge claims for damages after the disaster and it was uncertain how high they could go. The newspaper writes that Shell is still interested in BP, but it is unlikely that the company will be the first to put in a bid now.
The news led to a 5.4-percent jump in BP's share values in London. Shell's shares increased 0.2 percent in Amsterdam, and 1.2 percent in London.
Rumours that Shell wanted to bid for parts of BP first emerged in July. At the time, Shell shares dropped in value by 5 percent. The market value of BP was halved as a result of the oil disaster in the Gulf of Mexico.
Since then shares in BP have increased by over 60 percent. But analysts say the company is still cheap and an attractive candidate for a takeover bid. Shell has declined to respond to what it calls rumours.
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