BP Stock Rises as Company Says It Won't Issue New Shares
BP shares have lost some 50% of their value following the April 20 explosion of its Deepwater Horizon rig, which killed 11 of its employees and caused a massive oil spill in the Gulf of Mexico. But recently, BP shares have managed to find support from several analysts, including one at Royal Bank of Scotland who upgrade a recommendation to buy from hold on Tuesday.
Last week, investors also looked at takeover scenarios from a rival. And over the weekend came talk the company has approached several sovereign wealth funds, offering them a stake to help ward off hostile bids. This was further confirmed by a senior United Arab Emirates source on Tuesday.
BP shares were up 3.7% in London after hitting their highest level in two weeks. On the New York Stock Exchange, BP's stock price jumped 5.7% in premarket trading.
Meanwhile, BP confirmed on Monday that the oil has reached Texas as tar balls washed up on the coast near Galveston were from the spill. The oil keeps gushing as the disaster continues to harm fragile coastal ecosystems, fishing communities and the Gulf tourism industry.