BP looks to wealth funds in takeover defence move

Oil group BP could be looking to sell up to £6bn of shares to strategic investors as part of a defence strategy to ward off hostile takeover bids while it faces pressure from the oil spill in the Gulf of Mexico.

The company is believed to be sounding out sovereign wealth funds to take a stake of between five per cent and 10 per cent.

Speculation over an imminent management shake-up continues to swirl, as it is thought both chief executive Tony Hayward and chairman Carl-Henric Svanberg are preparing to head for the exit as soon as the leak is secured.

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BP has now lost more than 50 per cent of its stock market value since the Deepwater Horizon oil rig exploded and sank on April 20, killing 11 workers and causing the worst oil spill in United States history.

Its share price plunge has put the group at potential risk of an unwanted takeover approach from rivals such as Exxon Mobil.

BP has spent $2.65bn (1.7bn), fighting the spill as setting aside a $20bn (13.2bn) compensation fund.

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