British PM Pledges Help in Spill; BP's Shares Rebound

British PM Pledges Help in Spill; BP's Shares Rebound

Published: Thursday, 10 Jun 2010

British Prime Minister David Cameron offered Thursday to help deal with BP's Gulf of Mexico oil spill, saying he would take it up with U.S. President Barack Obama, as the beleaguered company's shares rebounded from 14-year lows.
Cameron's comments in Kabul marked the first time he had spoken publicly about the crisis.
Cameron, who took office in May and is under pressure domestically to stand up for the British energy company, is due to talk to Obama by telephone this weekend.
Obama has been sharply critical of BP [BP 32.78 3.58 (+12.26%)].
The two leaders' conversation will have to seek a delicate balance between domestic pressures and long-standing U.S.-British ties.
The U.S. president said after meeting Republican and Democratic congressional leaders at the White House that he wanted to update U.S. pollution laws to ensure that victims of the oil spill were fully compensated.
As BP captured more oil from its ruptured deep-sea well, it pleaded for patience from Americans frustrated about the spill, the worst in U.S. history and now in its 52nd day.
The Obama administration kept up the heat, saying it would make sure BP paid all damages and cleanup costs from the spill, which has has soiled 120 miles of the U.S. Gulf coast and threatened lucrative fishing and tourist industries.
In another sign the spill is spreading, heavier concentrations of oil began washing up on Florida seashores starting late Wednesday.
Until then, debris from the spill had been limited in the state to relatively small tar balls.
BP Stock Volatile
BP was the second-most active stock on the New York Stock Exchange as shares rebounded by more than 12 percent. The U.S.-traded shares of BP jumped 12.26 percent and closed at 32.78.
It had taken a 16 percent dive to a 14-year-low Wednesday amid concerns over BP's ability to meet mounting costs.
"The stock is obviously volatile as investors try to wager on the outcome of the Gulf oil spill," said Jud Pyle, chief investment strategist at Options News Network, a division of option market maker PEAK6 Investments in Chicago.
Analysts said the company's improved performance was partly due to speculation that PetroChina [PTR 111.76 4.75 (+4.44%)], Asia's top oil and gas firm, was considering making a bid for BP.
Shares in Anadarko Petroleum [APC 39.15 4.32 (+12.4%)] and Transocean [RIG 44.27 1.69 (+3.97%)], two companies involved in the ruptured offshore well, also jumped.
In London trading, BP stocks sank to their lowest level since 1997 before bouncing off their lows and closing 6.7 percent down.
Illustrating the extent of investor concerns about BP, the cost of insuring its AA-rated debt traded for a time at levels normally associated with "junk" status.
BP said in a statement it did not know why its share price had plunged in U.S. trading Wednesday.
One of the world's largest corporate giants, BP said it had the financial flexibility to deal with liabilities related to the spill, which to date had cost it around $1.43 billion.