BP market losses hit $100 billion on spill cost fears

Total share losses for the embattled oil major since the ecological disaster began on April 20 stand at around $100 billion, more than halving its pre-spill market value, and analysts at Nomura said it needed to assure the market of its liquidity.

"A heavy inversion of both credit yield and equity volatility suggests the market is concerned about a near-term credit event around BP," they said in a note.

"With debt expensive and asset sales taking time, we consider that equity-linked financing -- perhaps backed by Sovereign Wealth -- could prove the attractive short-term solution," they added.

A spokesman for BP -- whose chief executive, Tony Hayward, is currently on a UK investor roadshow -- said it had "considerable firepower" to meet the costs and denied market talk that the company was seeking bankruptcy protection.

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- Posted: 2010-06-25 08:58:18

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