UK energy major bp’s shares climbed yesterday on fresh speculation that rival Shell will make a takeover bid.
Shell has reportedly called in its advisers to look at a potential bid, but it is waiting for bp’s valuation and oil prices to fall further before deciding whether to proceed.
bp’s share price lags behind its peers following an ill-fated move towards renewable energy.
While the two UK energy heavyweights were virtually equal a little while ago, bp is now worth around £56 bill, compared with Shell’s £148 bill valuation.
CEO Murray Auchincloss recently unveiled a ‘fundamental reset’ of bp’s strategy, following shareholder unrest.
Auchincloss scrapped targets to cut oil production, watered down renewable investment plans and said the company would spend more on fossil fuel extraction.
However, profits for the first quarter of this year fell by 49% from £2.01 bill to £1.03 bill.
bp shares closed up 1.4%, or 4.85p, at 355.15p, while Shell lost 2.1%, or 52.5p, to 2,434p, yesterday.
Both are major players in the LNG market.
