BP plc (ADR) (BP) Stock Pops on Exxon Mobil Corporation (XOM) Takeover Rumors

BP plc (ADR) (NYSE:BP) stock was up on Friday on rumors that Exxon Mobil Corporation (NYSE:XOM) is planning a takeover.

BP plc (ADR) (BP) Stock Pops on Exxon Mobil Corporation (XOM) Takeover RumorsAccording to the rumor, Exxon Mobil Corporation is starting to seek out major shareholders of BP plc (ADR) as it looks to attempt a takeover. The rumor claims that BP shareholders are unhappy with the stock for not being closer to prices prior to the Deepwater Horizon incident in 2010.

British newspaper the Evening Standard is the source of the BP plc (ADR) takeover rumor. It claims that BP is worried that it might not be able to fight off an offer higher than 600p, which would value the deal at around £120 billion. It also reportedly has concerns about shareholders that tire of its not reaching a higher value on its own pushing it toward a deal.

Evening Standard doesn’t give a source for the rumor of Exxon Mobil Corporation planning a takeover of BP plc (ADR). It also notes that the two companies have refused to comment on the matter. The newspaper also claims that Royal Dutch Shell plc (ADR) (NYSE:RDS.A,RDS.B) and Chevron Corporation (NYSE:CVX) may also try to takeover BP.

It’s possible that the Brexit may partially behind Exxon Mobil Corporation’s interest in a takeover of BP plc (ADR). The value of the pound has dropped 18% over the last three months when compared to the U.S. Dollar, which may make BP a good investment for an American company. However, the deal may face opposition from government regulators.

BP stock was up 2% as of Friday morning, but is down 8% year-to-date.

Article printed from InvestorPlace Media, https://investorplace.com/2017/03/bp-plc-adr-xom/.

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