UPDATE: DOJ Official: Not Preparing To Block BP Dividends

10th Jun 2010 19:11

(Updates with detail, background.) By Brent Kendall Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--A Justice Department official said Thursday that the agency isn't preparing to seek an injunction that would block BP PLC (BP, BP.LN) from paying dividends to shareholders. The official, speaking on the condition anonymity, said the department has not ruled out the option of seeking an injunction at some future time, but has no plans to do so now. U.S. Associate Attorney General Thomas J. Perrelli was asked about a possible injunction at a U.S. House hearing on Wednesday, and he said the department was "concerned" about the issue and wanted to make sure BP had the money to cover the costs of all oil-spill related matters. Perrelli went on to add, "We are looking very closely at this and we are planning to take action." It was not clear at the time whether Perrelli was referring specifically to the injunction. The Justice official told Dow Jones Newswires Thursday that Perrelli did not intend to send a signal that the department was preparing to seek an injunction that would stop BP from paying dividends. U.S. Attorney General Eric Holder was asked at a Thursday morning press conference about Perrelli's remarks but he did not comment on the injunction issue. Holder said the department would take whatever steps are necessary to ensure that BP is held responsible for oil-spill-related costs. The Justice Department's comments come as an increasing number of members of Congress are putting pressure on BP to suspend its dividend payments. The company is scheduled to pay out its first-quarter dividend on June 21. -By Brent Kendall, Dow Jones Newswires; 202-862-9222; [email protected] (Mark H. Anderson contributed to this report.) (END) Dow Jones Newswires June 10, 2010 14:11 ET (18:11 GMT)