Takeover talk surrounding BP has intensified, with insiders now suggesting that ExxonMobil may be a more likely bidder than UK rival Shell.
The speculation comes amid a string of challenges facing the British oil giant, including a sluggish share price, executive instability, and pressure from activist investor Elliott Advisers.
“Such has been the cataclysmic value destruction at BP in recent years that its market capitalisation – at a mere £56bn – is now less than half that of Shell,” noted Sky News City Editor Mark Kleinman.
He added that BP’s current state makes it “little more than a sitting duck.”While Shell has been quietly running the numbers on a possible bid, sources suggest that Exxon’s complementary upstream portfolio and desire to acquire BP’s energy trading division may make its approach more strategically compelling.
“Exxon would also love to get its hands on BP’s leading energy trading division,” Kleinman wrote.The UK government’s stance on a US giant potentially acquiring one of Britain’s most iconic companies remains uncertain, though Kleinman hinted it “just might get put to the test.”In Other City Shakeups:Big Technologies in Hot WaterElectronic tagging company Big Technologies, also known as Buddi, is facing turmoil after founder Sara Murray was ousted amid undisclosed relationships with key shareholders. She denies the allegations.
Interim CEO Daren Morris stepped down after just over a month, replaced by Ian Johnson. “Once valued at about £1bn, the AIM-listed stock now languishes at less than a quarter of its peak valuation,” wrote Kleinman.
Playtech Faces Shareholder Fury Over €100m Bonus PlanGambling tech firm Playtech is in hot water again as it prepares for a shareholder backlash at its AGM later this month.
A proposed €100m bonus pool for CEO Mor Weizer and senior execs has been labelled “the most egregious case of shareholder value expropriation in the history of UK public markets.”
ISS, a key proxy adviser, is urging a vote against both the payout and the re-election of four board members.Kleinman sums it up sharply: “Should [Playtech] survive another year, avoiding another pay row might end up being new chairman John Gleasure’s biggest achievement.”
