
Oil spill: BP still faces the possibility of huge fines from the US government
Royal Dutch Shell weighed an opportunistic takeover bid for crisis-torn BP during the Gulf of Mexico oil spill, according to sources close to the Anglo-Dutch giant.
The Shell board pulled back from making a rescue offer for its longstanding rival on fears that the uncapped legal liabilities could blow a huge hole in BP’s future prospects. But it is understood Shell remains interested in a merger with BP.
At their lowest point in early June, BP shares were trading at just 296p, valuing the group at £55.6billion.
That was less than half the peak value of £123.6billion before the disaster. The group currently has a market capitalisation of £89billion.
BP was able to cap the private-claims from businesses around the Gulf of Mexico region at $20billion after negotiations with the White House.
But it still faces the possibility of huge fines from the US government.
The possibility of a merger between Shell and BP has been discussed before. read more
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