MorningSong
12th July 2010, 18:57
Exxon BP? Chevron BP? Not so fast
NEW YORK (CNNMoney.com) -- You know it's a trader's market when one of the hottest stocks belongs to possibly the most hated company on the planet. Yup, BP continues to rally sharply from a 14-year low set last month.
With the U.S.-listed shares of the London-based oil giant popping 8% in Monday afternoon trading to nearly $37 a share, BP (BP) is now up more than 37% from its nadir. It is trading at its highest level since June 8.
It seems that investors are excited about the fact that BP is set to install a new cap on the leaking Deepwater Horizon well. That is raising optimism that the spill may soon be contained at long last.
But there's also chatter about BP possibly selling assets to raise cash. According to several reports, BP may be talking to Apache (APA, Fortune 500) about a sale of a stake in oil fields in Prudhoe Bay, Alaska. That could raise $10 billion.
Selling assets would make sense. But there's also a report in the Sunday Times of London suggesting that Exxon Mobil (XOM, Fortune 500) and another large U.S. oil firm, potentially Chevron (CVX, Fortune 500), may be looking to prepare a hostile bid for BP.
comtinue at link: http://money.cnn.com/2010/07/12/markets/thebuzz/index.htm?section=money_latest
NEW YORK (CNNMoney.com) -- You know it's a trader's market when one of the hottest stocks belongs to possibly the most hated company on the planet. Yup, BP continues to rally sharply from a 14-year low set last month.
With the U.S.-listed shares of the London-based oil giant popping 8% in Monday afternoon trading to nearly $37 a share, BP (BP) is now up more than 37% from its nadir. It is trading at its highest level since June 8.
It seems that investors are excited about the fact that BP is set to install a new cap on the leaking Deepwater Horizon well. That is raising optimism that the spill may soon be contained at long last.
But there's also chatter about BP possibly selling assets to raise cash. According to several reports, BP may be talking to Apache (APA, Fortune 500) about a sale of a stake in oil fields in Prudhoe Bay, Alaska. That could raise $10 billion.
Selling assets would make sense. But there's also a report in the Sunday Times of London suggesting that Exxon Mobil (XOM, Fortune 500) and another large U.S. oil firm, potentially Chevron (CVX, Fortune 500), may be looking to prepare a hostile bid for BP.
comtinue at link: http://money.cnn.com/2010/07/12/markets/thebuzz/index.htm?section=money_latest