Wednesday, July 7, 2010

BP (NYSE:BP) Can't Sell Assets Until Government Notified

The U.S. Government has told BP (NYSE:BP) they are to be notified before any asset sales, merger agreements, or significant cash transfers. The letter was received by BP at the end of June from the U.S. Department of Justice. Such a request is considered highly unusual and BP has yet to respond.

It's being said the reasoning for this move by the Justice Department is due to the extremely high cleanup costs, compensation claims, and grants given to Gulf states. Plus, the escrow account that will hold $20 million as agreed on between the President and BP officials.

BP has said they were looking seriously at selling some of their assets as well as attracting new oil investors to help cover the costs. There has been a whirlwind of speculation surrounding the possible takeover bidders and potential investors in BP including, Exxon Mobil, Royal Dutch Shell, China's PetroChina, Kuwaiti Investment Authority, and the government of Qatar.

There is a total of 95,000 claims submitted, half of which have already been paid. BP has already made payments of $147 million to the residents affected by the spill. As of June 1st, The U.S. Department of Justice launched a full civil and criminal investigation into the massive oil spill.

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