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Spill sell-off could see takeover of BP

Yousefian
Yousefian: ‘Expect BP to be taken over sooner rather than later’

OPM Fund Management chief executive Tony Yousefian says investors should steer clear of BP due the ongoing litigation following the Gulf of Mexico oil spill debacle.

Yousefian says BP is likely to see so many parts of the business sold off that eventually it will reach a size that will make it attractive for a takeover.

He says: “Although at the moment, it looks like they are starting to get to grips with the spillage, having started to put some money aside for the clear-up, it is the ongoing litigation that will be the major problem for BP and until that is resolved it is unlikely to be a deemed as a worthwhile investment.”

Yousefian says we have already seen noises in the US that the petrol stations may go back and trade under the old Amoco name, which is what they were before BP bought them in 1998.

He says: “That is more of a short-term solution. The more businesses they get rid of the more leaner it becomes and the more likely it is to be taken over. We expect that to be sooner rather than later once they have sold enough assets and set money aside for litigation.”

Fidelity fund guru Anthony Bolton recently claimed investing in BP was a “once in a lifetime opportunity”.

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