BP in rush to sell off assets
A RAFT of Chinese and Middle Eastern bidders are looking at taking up a stake in BP as the oil major attempts to find investors ahead of a possible hostile takeover by a rival oil company.
It is understood that a number of sovereign wealth funds, including the Kuwait Investment Office and oil companies have expressed interest in acquiring a small stake in BP, believed to be between five and 10 per cent, at a cost of up to £6bn.
Sources close to the matter said that acquiring BP’s assets is on the agenda of a number of Chinese entities as they meet with BP advisers this week, while the move is thought to be a security measure taken by the oil giant against a potential takeover attempt.
Rivals such as Exxon Mobile have been named as possible buyers.
Worries that the oil group could be left vulnerable to a takeover comes as BP has already seen its market cap fall by more than 50 per cent to £60bn, while analysts predict that the oil spill costs are likely to rise to $60bn.
A spokesperson from BP would not comment on the possibility of the sale.
But the board is under pressure to do a deal soon as it is thought that once BP drills the relief well and stops the leak a buyout attempt could be made.
BP is weeks away from drilling the well, putting the group’s efforts ahead of schedule.
Shareholders also expect an overhaul of top management once the Macondo well is plugged, with both chief executive Tony Hayward and chairman Carl-Henric Svanberg likely to exit from their respective posts.
Spill boss Bob Dudley has been touted as a top candidate.