MARKET TALK: BP Down On Dividend Concerns And Oil Spill Cost

14th Jun 2010 10:11

0911 GMT [Dow Jones] BP (BP.LN) shares -3.1% at 380p, on concerns about dividend payments and news that the cost of the oil spill so far amounts to USD1.6Bln, traders say. Also, talk that the U.S. government will be pushed to take legal action on BP spooks the market and "would, in effect, make the company almost bankrupt if such a move was to be initiated," adds one trader. Concerns over dividend payments add further pressure on the shares. "Although we believe its balance sheet is strong enough to pay for the clean-up costs and a dividend, we believe it will look for some form of compromise where it can ease some of the political pressure while not cutting the dividend and annoying shareholders," says Panmure Gordon. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 14, 2010 05:11 ET (09:11 GMT)