Reuters has reported that bp’s debt is actually a lot larger than published through some neat accounting and it’s that that is dissuading would be suitors. Ok, get that. So, with our efforts to reduce our debt e.g., castrol divestment, are we not just hastening the inevitable? A tough spot…cos we need to reduce debt for its own sake but all we are doing is making us more appealing for a take over presumably? (assuming there is no massive company valuation turnaround in the interim - hard to see). Damned if do, damned if we don’t. Shame. The fat lady warming up her vocals….
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Remember that BP has a stake plus money accumulated worth around 25-30 billion in Russia, which it has written down, but it still belongs to BP.
The high debt could be deliberate to prevent a takeover in the first place. Bp knows how to manage debt in lot worse circumstances!