Shell Takes a Liking to BP, But Is Not Ready To Move With a Bid
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Royal Dutch Shell mulled an opportunistic takeover of BP (NYSE: BP) during the height of the Gulf oil spill, but decided not to pursue a deal due to fears of uncapped legal liabilities, the Daily Mail reported. Royal Dutch remains interested in a merger with BP, however.
The two discussed a merger in the past, as former CEO Lord Browne's memoirs revealed. However, a deal was ruled out in 2004 as BP at that time was larger than Shell.
During the recent oil spill crisis, Shell executives stood ready to pounce with a counter offer if one of the American oil giants, Exxon-Mobil (NYSE: XOM) or Chevron (NYSE: CVX) bid first. Exxon-Mobil reportedly hired advisors to look at a possible bid.
Shell's board remains interested in BP, but again would not be a "first mover." If BP were put in play and hold an auction, Shell would likely be there ready to pay a potentially handsome premium, the report suggested.
The two discussed a merger in the past, as former CEO Lord Browne's memoirs revealed. However, a deal was ruled out in 2004 as BP at that time was larger than Shell.
During the recent oil spill crisis, Shell executives stood ready to pounce with a counter offer if one of the American oil giants, Exxon-Mobil (NYSE: XOM) or Chevron (NYSE: CVX) bid first. Exxon-Mobil reportedly hired advisors to look at a possible bid.
Shell's board remains interested in BP, but again would not be a "first mover." If BP were put in play and hold an auction, Shell would likely be there ready to pay a potentially handsome premium, the report suggested.
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