Wednesday, July 7, 2010

BP (NYSE:BP) Shares Surge as Company Confirms No New Issuance

Everyone knows BP (NYSE:BP) is in need of capital to take care of liabilities in the Gulf, and also to fend up potential hostile bids to take over the company.

To that end they have given parameters to their search for funds, and one of those is they won't be issuing any new stock as the means of acheiving that end.

That resulted in the share price of the stock rising, as issuing new stock would have caused the existing shares to be diluted, pushing down their value even more.

There seems to be a new rumor put forth every few minutes in media reports, with an endless number of "unnamed" sources given their idea on raising more funds.

One that seems to be real is the pursuit of sovereign wealth funds in the Middle East and some Asian countries. Libya has been the most vocal proponent of investing in BP.

1 comment:

Anonymous said...

If recomending a friend to buy shares would you recommend BP shares?