Monday, July 12, 2010

Exxon (NYSE:XOM) Company Takeover of BP (NYSE:BP)

There has been much speculation over investors possibly purchasing BP (NYSE:BP), apparently the U.S. Government has opened the door for Exxon Mobil (NYSE:XOM) to "take a look" and purchase BP for a complete company takeover. A merge of the two oil companies would put Exxon's total stock market value at over $400 billion. When asked about the validity of these claims, both companies refused to comment.

Tony Hayward, BP's chief executive, held several meetings last week with several potential "friendly" oil investors. The cause was the possibility of a hostile bid that Hayward said he was fully aware of. BP has stated openly that they plan on selling some of their assets to help cover some of the costs incurred by the massive oil leak.

They have already began talks with several rivals. The U.S.'s largest independent oil group, Apache Corporation, is named as one of the companies being in exclusive talks with BP to purchase $12 billion of investments. Including the biggest oil field in North America, Prudhoe Bay.

A BP spokesman said, " We've said we're going to be divesting about $10 billion over the next 12 months as a result of the spill, but we have no comment on specific deals."

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