BP Chief Executive Tony Hayward, who arrived in the capital on Tuesday, met with key partners and major shareholders on Wednesday, confirmed Sheila Williams, a spokesperson for the British Petroleum, while speaking to Khaleej Times from London.
However, she declined to give itinerary of the chief executive.
Dow Jones newswire quoting sources said that Abu Dhabi may buy up to 10 per cent stake in the British firm that’s struggling to cap an oil spill disaster in the Gulf of Mexico.
But, a businessman in Abu Dhabi said the BP chief executive has brought a proposal offering up to 15 per cent of stakes to institutional investors.
Sheila Williams declined to comment on specific meetings but said Hayward “is visiting key business partners as well as staff.”
She termed the visit as a “routine” one, without sharing details.
Quoting UAE official sources, Reuters said Tony Hayward met with representatives of the Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, and presented “options”.
An ADIA spokesman did not return calls for comments.
Reports over the weekend suggested that BP was luring sovereign wealth funds in the gulf including Abu Dhabi to buy new shares, enabling BP to raise about $ 9 billion in capital.
According to Saudi business daily Al Eqtisadiah, a Saudi business team including energy industry investors is seeking to acquire between 10-15 per cent of BP’s shares and will hold talks with the company.
Libya’s top oil official Shokri Ghanem said on Monday that BP was a bargain and recommended that the nation’s sovereign wealth fund invest in the oil giant. However, Qatar and Kuwait didn’t show any interest in the company, whose share prices have plummeted almost half its value, since the Deepwater Horizon rig explosion on April 20 that triggered the spill.
BP shares, already on the rise in recent days, rose a further nine per cent in New York trade and reached their highest since June 21 in London on Wednesday, standing 4.5 per cent higher at 361.25 pence at 1207 GMT, pushed ahead by investment speculation.
BP tried to douse speculation on Tuesday that it was looking for an investor to buy a large piece of the company, saying it wouldn’t issue new stock to raise money to cover the costs of the Gulf of Mexico oil spill.
However, a spokesperson for the British Petroleum said it will encourage its existing shareholders to increase their shareholding in the company. She declined to reveal the names of the existing shareholders.
BP executives have held talks with a number of sovereign wealth funds including Abu Dhabi, Kuwait, Qatar and Singapore, Reuters reported quoting a source who wished to remain anonymous.
