BP shares rocket on takeover rumours

BP shares soared 7% to a six-month high on the FTSE 100 yesterday as compensation payouts for its spill in the Gulf of Mexico looked set to be lower than expected.

Meanwhile rumours Royal Dutch Shell considered a takeover bid for the embattled oil major pushed shares higher, the FT reports. In the first day's trading of the new year, BP shares hit an intra-day high of 498.05p, a 7% rise, but fell back to close the day up 5.5% at 491.37p. The shares have recovered 60% of their losses since the end of June when BP's $20bn compensation fund for victims of the spill was established. Kenneth Feinberg, the lawyer in charge of the fund, told Bloomberg TV $20bn was more than enough to cover the costs, and he expected many claims to be unsuccessful. ...