BP shot down speculation yesterday that it was looking for a white knight investor to take a large stake in the company by saying it won’t issue new equity to raise money to cover the costs of the Gulf of Mexico oil spill.
BP would welcome it if any existing shareholders or new investors want to expand their holding by buying already listed shares, but no new shares will be listed, said a company spokeswoman.
A number of press reports during the weekend said BP was courting sovereign wealth funds in the Middle East, which could buy new shares to raise an extra 6 billion UK pounds ($9 billion) in capital.
Speculation flared that Moammar Khadafy-run Libya might join the hunt, with the nation’s top oil official saying BP is a bargain and would be a good investment for its sovereign wealth fund.
BP’s shares have lost almost half their value since the Deepwater Horizon explosion that triggered the spill April 20. In New York trading yesterday, BP gained $2.56, or 8.7 percent, to $31.91.