Published: January 18 2007 02:00 | Last updated: January 18 2007 02:00
*Tender offer for 10 per cent of its share capital
Pro
Would be a high-profile event and answer investors’ concerns about undergearing
Con
The buy-back programme so far has appeared ineffectual: would this do any better?
*Special dividend
Pro
May be a better way to return cash to shareholders and would appeal to income investors
Con
Would create tax problems. The special dividend might have to be cut or dropped if oil prices fall further
*Mega merger
Pro
Another high-profile move that could change investors’ perceptions. Opportunities for large cost savings
Con
BP’s record does not create confidence that integration of a merger would be successful. A deal with a another ‘super major’ such as Royal Dutch Shell would run into serious competition problems
*Break-up
Pro
BP’s current value is less than the sum of its parts. Separate upstream and downstream businesses would be valued more highly by the market
Con
Purely upstream company could have more volatile earnings. Opportunities for synergy between upstream and downstream would be lost
Copyright The Financial Times Limited 2007
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