BP strikes pay dirt with Wall Street, boosting oil reserves
Article Abstract:
British Petroleum PLC (BP) has acquired Amoco Corp. in a stock deal valued at about $48 billion that is seen to create a new trend in the oil industry. BP imitated the means used by the banking and telecommunications companies, such as that used by WorldCom Inc. to acquire MCI Communications Inc., by using stocks to acquire other companies. Stock prices become good currency for major purchases especially when the market boosts its value. BP stock price has risen by 90% in the past five years. The trend could trigger changes in the oil industry as rising number of oil firms depend on cost cutting measures to widen their profit margin while oil prices continue to decline and petroleum production is up only at an average of about 5%.
Comment:
Acquires US-based Amoco Corp in a stock deal valued at about $48 billion that is seen to create a new trend in the oil ind
Publication Name: Wall Street Journal. Europe
Subject: Business, international
ISSN: 0921-9986
Year: 1998
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Amoco deal has analysts seeing bargain in BP
Article Abstract:
British Petroleum's (BP's) planned purchase of US-based Amoco has the firm's shares look like a bargain to analysts. Industry experts seemed convinced that BP can bring its cost-cutting measures to bear on Amoco, which would add to the economies that would be earned in any case by putting an end to duplication in the operations of both BP and Amoco. Analysts Jeremy Hudson and Gordon Gray have already established a detailed analysis on the transaction and have come up with a target price of 10 pounds sterling ($16.33).
Comment:
Its planned purchase of US-based Amoco has the firm's shares look like a bargain to analysts
Publication Name: Wall Street Journal. Europe
Subject: Business, international
ISSN: 0921-9986
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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