Wednesday, July 7, 2010

BP (NYSE:BP) Shares Soar on Rejection of Issuing New Stock

Shareholders were holding their breath concerning whether or not BP (NYSE:BP) was going go the route of issuing new stock to raise more capital.

BP shot that idea down quick, as jittery shareholders may have bolted the company if they had added diluting the shares they owned on top of eliminating their dividend as well.

Other than selling assets in the company and lining up a number of banks for loans worth about $9 billion in case they need to get quick funding, the other key strategy is to go after sovereign wealth funds, which CEO Tony Hayward has been traveling around the globe trying to do.

BP is of course looking at all types of investment in the stock, as they're trying to get ahead of the game in case someone attempts to acquire them in their weakened state.

The oil giant closed Tuesday's trading session at $31.91 a share, gaining $2.56, or 8.72 percent. Their market cap is just under $100 billion after the surge.

1 comment:

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