BP plc (ADR) (NYSE:BP)’s plan to sell a stake in Pan American Energy (PAE) to Bridas Corp, half-owned by China’s CNOOC (0883.HK), for $7 billion was still taking place; despite a report Argentinean opposition could scupper it.
The report of Bloomberg about the deal to collapse likely, due to opposition from Argentinean politicians, was not confirmed. Though the company declined to repeat earlier guidance that the deal would be concluded in 2011, David Nicholas, Director of group media, said that deals of such degree take time to settle. The Company is working with the other shareholders in PAE to make safe competition approvals and complete the deal. David Nicholas stated, “”We remain optimistic that these approvals will be granted in due course.” The Argentinean politicians too have chosen a safe hand to the local media by neither being vocal in support nor oppose the deal.
With an objective of raising funds for BP to pay for the Gulf of Mexico oil spill, the calculated sale of 60 percent interest in PAE was made. Bridas already owns a 40 percent stake in the group, which BP has described as Argentina’s second-largest producer of oil and gas.
Shares of BP fell 2.54% to $36.07.
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