BP CEO to meet investors, ADNOC in Abu Dhabi visit

Wed Jul 7, 2010 2:15am EDT

* BP CEO arrives in UAE capital Abu Dhabi

* Visit not to ask for equity contributions - spokesman

* Sources have said BP approached SWFs to secure investment

DUBAI, July 7 (Reuters) - BP (BP.L) Chief Executive Tony Hayward has arrived in Abu Dhabi for a scheduled visit with a trading partner and to meet potential investors, a UAE official said on Wednesday.

The official, speaking on condition of anonymity, said Hayward planned to discuss BP's concessions with Abu Dhabi National Oil Company (ADNOC)

The oil major, grappling with a devastating oil spill in the Gulf of Mexico, is looking for investors to help fend off any potential takeover attempts, a UAE source said on Tuesday.

"This is not part of him traveling the world with a begging bowl asking for equity contributions," a BP spokesman told the UAE's National newspaper. "We are not preparing an equity offering but we're keen that people appreciate the value in BP."

"If investing institutions want to talk to him, I'm sure he'd agree to meet them."

BP had started marketing programs to convince funds that its share price is low enough to encourage them to buy on the market, a banker said on Tuesday.

A senior UAE source told Reuters that the British oil company has approached sovereign wealth funds with the view of securing a strategic investor. [ID:nLDE6650IA]

BP executives have held talks with a number of sovereign wealth funds (SWFs) including Abu Dhabi, Kuwait, Qatar and Singapore, the source told Reuters under condition of anonymity.

Regional sovereign wealth funds, such as the Qatar Investment Authority (QIA) and Abu Dhabi Investment Authority (ADIA), have supported Western companies in times of financial crisis by purchasing stakes in western banks and effectively halting declines in their share prices.

BP has said it can cover the costs of the spill without having to sell new shares, which helped the stock to rally in recent days. The cost of cleaning the massive spill has topped $3 billion and continues to climb.

(Reporting by Shaheen Pasha and Amena Bakr; Editing by Amran Abocar)

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Comments (2)
Bobthornton wrote:
Wow! Cool! Isn’t this exactly the mode Bin Laden used back in the 80s to take over Citibank and American Express?

First degrade the value by some disaster, and then whallop all the shares!

What else is up for a sale I wonder?

The Pentagon maybe?

Jul 07, 2010 4:11am EDT  --  Report as abuse
heidiregan wrote:
The arrogance and incompetence of BP continues. I recently covered the entire issue and many other issues I haven’t even noticed yet in this artwork about BP’s clean up.
http://www.heidiregan.com/blog/?p=101

Jul 07, 2010 4:26am EDT  --  Report as abuse
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