Description: BP shares dropped as much as 9% in London on Friday, putting the drop the oil major’s market capitalization at more than $100 billion since the Gulf of Mexico oil spill began, as an analyst suggested the company needs to sell stock to assure counterparties of its financial health.
Questions for discussion:
- Summarize the financial situation for BP.
- Evaluate BP as an investment for the next 12 months?
- What could BP management do now to mitigate further erosion of its stock value?
- What could other oil companies learn from BPâ€™s experience?