2ndUPDATE:BP CEO Happy To See Abu Dhabi Buy 10% Stake - Source

7th Jul 2010 11:28

(Recasts lede, adds share price.) By Nour Malas Of ZAWYA DOW JONES DUBAI (Zawya Dow Jones)--BP PLC's (BP.LN) chief executive Tony Hayward met this week with Abu Dhabi's powerful Crown Prince Mohammed bin Zayed Al Nahyan and would be happy to see the oil-rich sheikdom buy a stake of up to 10% in the U.K. oil giant that's struggling to cap an oil spill disaster in the Gulf of Mexico, a person with knowledge of the meeting told Zawya Dow Jones. Hayward flew into Abu Dhabi on Tuesday for meetings with officials including the Crown Prince and also spoke to the company's employees in the emirate in a town hall gathering, according to a person familiar with his itinerary. "He'd be happy for Abu Dhabi to take a 10% equity stake," the person who asked not to be identified said. Sheila Williams, a spokeswoman for BP in London, declined to comment on specific meetings but said Hayward "is visiting key business partners as well as staff." A spokesman for the crown prince was unreachable for comment. A spokesman for the federal government in Abu Dhabi said he has no knowledge of the meetings. BP shares last traded Wednesday 4% higher at 359.25 pence in a broadly negative London market. BP tried to douse speculation Tuesday that it was looking for an investor to buy a large piece of the company, saying it wouldn't issue new stock to raise money to cover the costs of the Gulf of Mexico oil spill. Reports over the weekend suggested that BP was courting sovereign wealth funds in the Middle East including Abu Dhabi to buy new shares, enabling BP to raise about $9 billion in capital. Libya's top oil official, Shokri Ghanem, said Monday that BP was a bargain and recommended that the nation's sovereign wealth fund invest in the oil giant. The Times reported Wednesday that BP has agreed to inform the U.S. government of major transactions that might affect the future shape of the company following the Gulf oil spill, bowing to demands to notify the Department of Justice at least 30 days ahead of major financial moves. The U.K. oil giant's stock has lost almost half its value since the Deepwater Horizon rig explosion April 20 that triggered the spill. BP said it captured about 24,980 barrels of crude from the underwater gusher on Monday, indicating that oil-recovery efforts have stabilized after high seas hindered its efforts late last week. The company potentially faces tens of billions of dollars of liabilities related to the spill. BP has so far spent $3.12 billion on cleanup, containment and compensation, and has promised to pay a further $20 billion into an independently administered fund to cover future liabilities over the next 3 1/2 years. -By Nour Malas, Dow Jones Newswires, +97150 2890223; [email protected] Copyright (c) 2010 Dow Jones & Co. (MORE TO FOLLOW) Dow Jones Newswires July 07, 2010 06:28 ET (10:28 GMT)