Managers back BP after $16bn Rosneft deal

Fund managers have applauded the deal struck between beleaguered oil giant BP and Russian group Rosneft, with some topping up their positions last week.

After a torrid 2010, BP has begun the new year with a $16bn share swap with Kremlin-backed Rosneft in a landmark deal to explore the Arctic for oil. Markets responded well to the deal, with BP's share price rising to 514p in the middle of last week before investors' caution around the ongoing litigation battle with the US government brought it to settle at 501p at the end of the week. BP is the largest position on the Aegon UK Equity fund, amounting to 5.8% of the vehicle. Head of UK equities, Stephen Adams, who increased exposure last week, says: "This is the kind of deal we want ...