Shareholders in British oil company BP have balked at reports it would seek urgent investment from a wealthy Middle East or Asian country, as clean-up costs for its US oil spill topped $3 billion.
Over the weekend, while US Independence Day holidaymakers shunned Gulf of Mexico beaches tarred by the leaking well, media reports said BP was looking for a strategic investor among the sovereign wealth funds of the Middle East and Asia.
An investor would help ward off a takeover and raise funds for the liabilities racking up behind the worst oil spill in US history, the reports said.
BP shares rose 4.4% in London to 336.95 pence this afternoon after the reports, but some shareholders balked at the idea of a strategic investor.
'We don't think a strategic partner is at all necessary,' said one top-10 BP shareholder who did not want to be named. 'We think this is just people trying to panic the company and stampede into doing something to earn huge fees from selling new shares in BP. Shareholders will be saying "No, thank you" to this and we have communicated this to the company.'
Britain's Sunday Times said BP's advisers were trying to drum up interest among rival oil groups and sovereign wealth funds to take a stake of between 5% and 10% in the company at a cost of up to £6 billion. BP declined to comment.
BP shares have lost more than half their market value since the worst US oil spill in history struck on April 20 - the result of an explosion on a drilling rig that caused a well to rupture and spew millions of gallons of crude into the sea.
Attempts to stop the flow have been unsuccessful, with BP now pinning hopes on a relief well that should be complete in August.
Some oil is being captured through a pipe, while some is being burned off. BP said it collected or burned 25,195 barrels on Saturday but estimates of the total amount flowing go as high as 100,000 barrels a day.
BP said on today it had so far spent $3.12 billion on the response effort, including $147m paid out in claims to those affected by the disaster. Plans are being developed for additional containment capacity, it said.
