BP plc (ADR) (NYSE: BP)
BP is having an incredibly strong start to the day in the pre-market hours today, and for good reason. There's a rumor surfacing that's causing excitement among the company's investors. Today, we'll discuss what we're seeing from BP in the pre-market, the rumor, and what we'll be watching for with regard to the stock ahead.
What We're Seeing From BP
As mentioned above, BP is having a pretty strong day in the pre-market hours today. Fueled by rumors of a potential takeover, the stock is trading in the green. Currently (8:19), BP is trading at $34.31 per share after a gain of 2.42% thus far today.
Why The Stock Is Up
As is usually the case, Trade Ideas, an incredible took for active traders, was the first to alert us of the gains on BP. As soon as they alerted us, the CNA Finance team started to dig to see why the stock was making a run for the top. In this case, the story pretty much jumped out at us. While there was no fundamental news released by the company that would lead to such gains, we did find an interesting rumor starting to surface.
According to a rumor on Standard.co.uk, BP is likely to be taken over soon. In fact, the publication suggests that ExxonMobil (XOM) has reached out to the major shareholders of the company to see what their interest is like with regard to a potential takeover. According to the report, insiders at BP are concerned that an offer of GBP120 billion would be enough for a hostile takeover. Nonetheless, the excitement around this rumor seems to be the reason for pre-market gains.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on the situation between BP and XOM. In particular we're interested in seeing if a takeover does indeed happen. If that proves to be the case, as always, BP investors would likely see a strong return on their investment. Nonetheless, we'll be watching the news closely and bringing it to you as it breaks!
Update (9:25): BP has refused to comment on the rumor that XOM is working to take the company over. Comment refusals instead of putting rumors down are a sign that there may be validity to the rumor. We'll continue to keep a close eye on the story and update you as it breaks!
Update (10:01) - A half hour into the trading session and BP remains relatively flat. With nothing more than a refusal to comment from BP, investors aren't quite sure what to expect. Currently the stock is trading at $34.27 per share after a gain of $0.77 per share or 2.30% thus far today.
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