There has been many rumors surrounding whether potential investors would purchase BP (NYSE:BP). It seems to be more of a fairytale hope then anything else according to analysts.
There are several variables that must be looked at. For one, are BP's assets worth the hassle? With the thousands upon thousands of legal claims as well as the public relations issue, for any oil company to take on BP would be an extreme risk.
Paul Malchanov, an analyst for Raymond James in Houston, TX., said, " It's very debatable that any company would be comfortable wading into this legal nightmare, which would last many years. The biggest problem is getting your hands around the liabilities."
While the CEO of Petroleum and Resources Corporation, Doug Ober, said he's even heard traders talk about Conoco Phillips purchasing BP. " The likelihood of BP getting taken over is next to nil. Why would a U.S. company want to buy BP given the black eye that it has," said Ober.
Malchonov said he does not recommend BP for investors. Other companies like Chevron and Hess are trading at cheaper valuations. There is still to much risk and uncertainties with BP.
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Wow, is this written by a twelve year old? "There has been...", that's a great start. Is Deborah a front for someone shorting, or does Deborah actually believe that this "article" is contributing something worthy of conversation?
ReplyDeleteI really don't think buying up BP would damage the reputation of another company. BP has a lot of assets and access to a lot of oil. I personally believe, that at the right price, BP could easily get taken over.
ReplyDeleteI might have taken notice to this article, only they can't spell whether!
ReplyDeleteYou really need someone to copy edit your articles.
ReplyDeleteHmm, whilst the overall conclusion (no takeover) is probably valid, it's a very interesting route to get there, in this case 'interesting' being a synonym of 'incompetent', and 'partially literate'.
ReplyDelete