BP Shares Up More Than 9% As Market Digests M&A Prospects

30th Jun 2010 11:18

By James Herron Of DOW JONES NEWSWIRES LONDON (Dow Jones)--BP PLC (BP) shares rose more than 9% Wednesday morning as the market reappraised the embattled company's value as a takeover target once the crisis in the Gulf of Mexico subsides, equities traders said Wednesday. "The JPMorgan note yesterday highlights the value case--not just for Exxon but by extension, for investors buying the shares down here," said one trader who did not wish to be named. JPMorgan analyst Fred Lucas said Tuesday that BP could be worth 473 pence a share to a potential buyer, such as U.S. oil giant Exxon Mobil Corp. (XOM)--a hefty premium to BP's current share price. At 1016 GMT BP was trading at 331 pence, up 28 pence, or 9.2% from Tuesday's close. Reports casting doubt on the ability of Anadarko Petroleum Corp. (APC), to avoid paying its quarter share of the total oil spill liability are also a positive catalyst for BP shares, the trader said. The Financial Times reported Wednesday that Anadarko received regular updates from BP about the drilling operation aboard the Deepwater Horizon and approved many aspects of BP's design for the leaking Macondo well. Anadarko Chairman and Chief Executive Jim Hackett said earlier this month that, "BP's behavior and actions likely represent gross negligence or willful misconduct," which if proven could mean its partners in the well are not liable for their share of the soaring oil spill costs. -By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317; [email protected] (Andrea Tryphonides and Michele Maatouk contributed to this article.) (END) Dow Jones Newswires June 30, 2010 06:18 ET (10:18 GMT)