BP shares on fire following Exxon report
While a bid for BP cannot be ruled out, reports about Exxon’s interest have been around for years
London — BP’s shares surged the most for 2017 after a London newspaper reported on rumours that Exxon Mobil had sounded out major shareholders over a potential takeover. While a bid for BP cannot be ruled out, reports about Exxon’s interest have been around for years and analysts, from acquarie Capital to Canaccord Genuity, said a deal was unlikely. "The report about Exxon and BP seems to be just a rumour because there doesn’t appear to be an obvious strategic fit," said Anish Kapadia, a senior research analyst at Tudor, Pickering, Holt & Company International. "It would create a company potentially too big and complex to be manageable." Exxon and BP spokesmen declined to comment. Oil’s current downturn has resulted in just one big deal — Royal Dutch Shell’s $54bn acquisition of BG Group in 2016. Others have preferred to make smaller acquisitions as they preserve cash and protect their balance sheets.
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