Oil price slump could trigger a wave of takeovers and mergers of desperation
The author of The Sunday Times article, Danny Fortson, goes on to point out that the oil price slump could lead to a wave of big takeovers, failures and “mergers of desperation,” with BP a potential takeover target…
By John Donovan
Coverage of the problems facing BP are spread over a number of pages of The Sunday Times Business section today.
BP is responding to the fall in oil prices by slashing middle management and freezing projects that were based on an assumption that oil prices would remain at around $100 a barrel. Shell is likely to do the same.
The most prominent article, by Danny Fortson, describes BP’s involvement with the Putin regime as playing Russian roulette. He goes on to point out that the oil price slump could lead to a wave of big takeovers, failures and “mergers of desperation,” with BP a potential takeover target (also as a consequence of the Gulf spill).
Extracts
So few were surprised last week when BP was, again, highlighted as a potential takeover target for rivals such as Royal Dutch Shell and ExxonMobil.
BP’s dramatic downsizing had also made it a favourite of the takeover rumour mill…
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