BP is resisting issuing new shares in the company to raise capital, looking rather to bank credit lines and selling of assets as the major strategy to provide more liquidity as needed.
This probably comes from the inevitable dilution of share which would drive down the value of the stock. BP has to be very much aware of the dissatisfaction in the company by shareholders who were counting on the dividend the company normally pays out, which was discontinued at this time.
So to dilute the shares after losing half its value and ending the dividend for now, wouldn't be the best of strategies for oil giant, probably the reason they aren't going that route.
BP has also lined up a number of banks to provide them will immediate loans, with each bank committing about $1 billion. That brings the total available to about $9 billion, although other banks are reportedly going to offer a similar amount as well.
Much of this is not only to pay for claims and liabilities related to the Gulf, but at the same time set up a defensive strategy to combat potential takeover attempts by unwelcome suitors.
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