BP's (NYSE:BP) fallen far enough in their stock prices for them to be considered attractive to other big oil oil companies and rivals like Shell (LSE:RDSA) and Exxon Mobil (NYSE:XOM) to purchase. On April 19th BP's stocks closed at $60.09, the day before the Deepwater Horizon oil rig exploded. With yesterdays stock prices closing at $28.88, that's a loss of over 50 percent of their market value.
"In theory, either Exxon Mobil or RD Shell could consider a bid for BP," said Lucas to investors. "We focus on these two names because they have similar business models and similar global asset structures. They also bear the lowest political risk to a potential combination with BP."
This idea of a takeover by Lucas was "prompted by the gap between the current market value of BP and the intrinsic value that we see in BP." Douglas Youngston, an oil industry analyst of Arbuthnot Securities told CNNMoney if BP's stock fell below $30 a share, it would then become appealing as a possible takeover target.
Youngson said, "if the share price continues to fall, other companies may see this for the bargain it will be." He said this on June 2nd when BP's stock price hit $37.66.
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