We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

BP Seen takeover target after settlement as value trails - Essay Example

Comments (0) Cite this document
Name Tutor BP Seen Takeover Target Following the BP’s chief executive move to sell the company’s 50% stock in TNK-BP, the global oil company has been seen as a takeover target. The purpose of the move, to sell assets, was to rescue the company following the huge losses incurred and the large amount of money the company paid for the cost of 2010 oil spill…
Download full paperFile format: .doc, available for editing
Polish This Essay92% of users find it useful
BP Seen takeover target after settlement as value trails
Read TextPreview

Extract of sample
"BP Seen takeover target after settlement as value trails"

Download file to see previous pages The company’s reserves are worth $ 7 a barrel while its rival Shell is worth $14. The company’s market value is the least compared with the other big four companies. The 50% sold accounted for about two third of the company’s oil production. The assets were in exchange of $12.3 billion cash and 12% stock in Rosneft, a Russian oil corporate. Rosneft is expected to also acquire the remaining 50% stock to assume full ownership. According to the London Business School, the selling of its assets, as well as, expensive settlements for suits related to the oils spill damages is equivalent to a takeover. The move, as well as, the oil spill tragedy, makes PB weak and its competitors including Royal Dutch Shell may bid for more stake. According the company’s Chief Executive, in an interview, the reduced company’s size may lead to a takeover attempt. The Chief Executive also unveiled the company’s expected short-term and long-term plans meant to spur growth. The plans include raising new projects’ margins and issuing back shareholders’ funds. The shareholders have also been rewarded by a 12.5 % increase in dividends paid in the 2012 third quarter. Additionally, due to the importance of the company to the United Kingdom, the government may oppose any move meant to bring a merge or acquisition. The company is one of the UK economy backbone employs a large proportion of the country’s population and earns the government huge revenues in terms of taxes. Among the company’s plans, there is a defense strategy following speculations that the company may be taken over. Many investors are interested in the company’s shares because of their low value. A takeover would be of benefit to the shareholders who would be able to recover some of their invested money. The company has liquidity problems, and the only option left of fighting for its survival in the market is through a takeover or selling of some of its assets. However, selling some of the assets is may be a dangerous move as it may result to bankruptcy of the firm thus requiring it to dissolve. Additionally, it may be difficult to raise capital through debt securities, for example, bonds because of the risk associated with the company. The rate of interest would be significantly high since the financial institution would consider the risk. It would be of benefit to the new owner because of the valuable assets and human capital that the oil company holds. Since it would be an entirely different company, no new suits would be expected and, therefore, the new owner will easily turn the nearly collapsing company into a global profitable company. If the new trader would then stop the BP’s shares trading, immediately after the purchase, the market price would go up. Finn states that “the value of the stock would go up because of decrease in demand (131)”. Additionally, if the new owner would be another oil company, the benefits would be even more. The market share and dominance would go up. This in turn, would increase the company’s profitability and market value. A merger would also be of benefit to the current shareholders. Their stock in the company has declined significantly since the oil spill disaster. In addition, they have not been getting the returns that made them invest in the company. A merger will inject ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“BP Seen takeover target after settlement as value trails Essay”, n.d.)
Retrieved from https://studentshare.org/management/1462863-bp-seen-takeover-target-after-settlement-as-value
(BP Seen Takeover Target After Settlement As Value Trails Essay)
“BP Seen Takeover Target After Settlement As Value Trails Essay”, n.d. https://studentshare.org/management/1462863-bp-seen-takeover-target-after-settlement-as-value.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Takeover regulation
Friendly takeovers simply occur when one organization tenders an offer to another organization and the board of directors accepts or declines the offer. In the corporate world, where publically traded organizations have a multitude of owners – indeed, in the United Kingdom the takeover only refers to publically traded companies -- the process becomes complicated, and the potential for the hostile takeover emerges.
15 Pages(3750 words)Essay
The research uses secondary data collection methods to develop a literature review of the oil industry, environmental impact and legal framework for the oil industry, and a case study method for evaluating BP on its vision, organizational structure, products, commitment to environment and its actual performance.
20 Pages(5000 words)Essay
Target Corp - Strategic Management - 5 forces - value chain
Through strategic management, an organization hopes to implement its policies and plans, projects and programs in order to achieve its desired goals. Strategic management, being a dynamic process provides a framework through which managerial functions try to achieve organizational success and excellence.
8 Pages(2000 words)Essay
This diastolic pressure is considered to be critical as it corresponds to the lowest pressure of the arterial system. There are several factors that influence
3 Pages(750 words)Essay
Happy Trails
This is the best decision that should be taken by the management of Happy Trails. They should make the workers understand the reasons they should order the
1 Pages(250 words)Term Paper
The company has until now focused solely on shareholder wealth maximization at the cost of other stakeholders of the company. The corporate level strategy of BP should focus on having all kinds of oil &
13 Pages(3250 words)Essay
We will analyze their initial failure based on the failure to meet internal business process objectives BP aims to operate at the frontiers of the energy industry. They wish to use world class
2 Pages(500 words)Essay
Analysis of Impeachment Trails
The three presidents under discussion: Clinton, Nixon and Andrew Johnson had their cases laden with ethical dilemma. The main one being that the three held the highest office in the land and hence their impeachment would
3 Pages(750 words)Essay
Palestinian settlement
In the 46 years that have passed since 1967, up to 27,000 homes of the Palestinians have been demolished by the Israeli authorities on the West
2 Pages(500 words)Essay
The goal of the company is to be focused oil and Gas Company that offers value over volume. The goal is pursued through clear strategies and employment of distinctive capabilities. The company operates in over 80 countries, having its head office in London,
2 Pages(500 words)Essay
Let us find you another Essay on topic BP Seen takeover target after settlement as value trails for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us