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BP (BP) reportedly intends to buy back up to £3.7B ($5.9B) in shares despite last week...

BP (BP) reportedly intends to buy back up to £3.7B ($5.9B) in shares despite last week agreeing to pay $4.5B to settle civil and criminal claims over the 2010 Gulf oil spill and possibly being liable for billions more. Still, BP, whose shares are worth about a third of their pre-spill value, is due to receive $12.3B from the sale of its stake in TNK-BP.
Comments (6)
  • sweet. So far the CEO has been doing a great job IMO. I am holding shares I hope he can continue to reorganize and recover from the spill
    18 Nov 2012, 10:40 AM Reply Like
  • Well, that should provide some support to BP's stock price then.
    18 Nov 2012, 02:02 PM Reply Like
  • Doesn't buying back shares cheat the shareholders so the insiders can collect on their options?
    19 Nov 2012, 12:27 AM Reply Like
  • Authorization of less than 10% won't do too much to support share price imo.

     

    That said, BP is at 1/3 OFF it's pre-spill price, not 1/3 OF (where they were arguably already discounted to CVX/XOM).

     

    The spill liabilities are not the issue here. The issue is how much value damage has BP done by selling their assets "on the cheap."

     

    I haven't seen a detailed analysis of BP's asset sales and the long-term implications yet. Assuming these sales had little effect on the long-term (cash deployed to other areas to balance out, etc), I'd say BP is a good buy. That's a HUGE assumption though.
    19 Nov 2012, 02:38 AM Reply Like
  • I remain bullish on BP because they are selling many assets in America and concentrating on the rest of the world.
    19 Nov 2012, 02:39 AM Reply Like
  • It will lend temporary support to the share price but ONLY, until the civil suits start to pour in, you can smell the short already, much like the one 12 hours before the platform exploded, or?

     

    The move is basically due to takeover fears, as was the talk in the Square Mile on Thursday morning.
    19 Nov 2012, 04:19 AM Reply Like
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