New York: Shell PLC is working with consultants to evaluate potential acquisitions of BP PLC, although it is waiting for further stock and oil prices to drop before deciding whether to bid.People say the oil professional has discussed the feasibility and advantages of his consultants more seriously in recent weeks, as the information is private and therefore requested not to be identified.
Any final decision may depend on whether BP stock continues to decline, the people said. Over the past 12 months, BP's stock has lost nearly a third of its value as turnover plans have been on par with investors and oil prices stumbled. Some say Shell may also wait for BP to reach out or get another suitor to take the first step, and the current work can help it prepare for the situation.
They said the deliberations were in an early stage and Shell might choose to focus on stock buybacks and bolt acquisitions rather than large businesses. People say other large energy companies are also analyzing whether to bid for BP.
Any final decision may depend on whether BP stock continues to decline, the people said. Over the past 12 months, BP's stock has lost nearly a third of its value as turnover plans have been on par with investors and oil prices stumbled. Some say Shell may also wait for BP to reach out or get another suitor to take the first step, and the current work can help it prepare for the situation.
They said the deliberations were in an early stage and Shell might choose to focus on stock buybacks and bolt acquisitions rather than large businesses. People say other large energy companies are also analyzing whether to bid for BP.
“As we have said many times before, we are very focused on capturing Shell's value by continuing to focus on performance, discipline and simplification,” a spokesperson for Shell said in an emailed statement. A representative for BP declined to comment.
