MARKET TALK: BP Rolls Over In White House Talks -Analyst

16th Jun 2010 20:34

(Dow Jones) BP (BP) Chairman Carl-Henric Svanberg makes "pretty grovelling statements" and seems "to have rolled over" in White House negotiations as the oil major looks to contain political fallout from its Gulf of Mexico oil spill, says NCB Stockbrokers analyst Peter Hutton. "The concession on cutting full dividend + cutting capex + increasing divestments is inconsistent with the slower than expected build in the compensation fund--and suggests that underlying costs will be even more material than expected." Says that the statement provides some clarity but also indicates that BP has lost the negotiations with the White House on just about all fronts. Shares close in London -1.5% at 337p. ([email protected]) (END) Dow Jones Newswires June 16, 2010 15:34 ET (19:34 GMT)