BP Oil Spill Crisis Causes Another Slump in Share Value
Yesterday it was suggested that BP’s dividend payment will be reduced or cancelled due to the ongoing costs of the oil spill disaster. At the same time there were new reports on Sky News about the terrible impact the oil spill is having on people along the the Gulf coast in the USA.
Today the share fell dramatically as more traders decided to sell out now, fearing that the worse is far from over for BP. Share price is now down to 1997 figures, a slump of 12% in total. Prices did recover a little after the major plunge this morning.
BP’s share price in the USA is down more, falling 16% on Wednesday in the New York Stock Exchange.
BP has now spent about $1.43 (a clean 1 billion pounds) trying to stem the flow of oil.
BP bonds are suffering too as people are no longer feeling that BP can provide a safe long term corporate bond.
The new talk is that BP could become a target for a hostile takeover bid, maybe by the Chinese oil company PetroChina which is looking to expand into international markets.