BP Shares Surge on Acquisition Rumors by Shell, Later Denied

BP Shares Jump on Acquisition Rumors, Shell Denies

BP's stock experienced a volatile trading day following reports in The Wall Street Journal suggesting that Shell was considering acquiring the British oil giant.

Initial Surge and Subsequent Denial

The initial report caused BP's shares to jump by over 10%, reaching a session high. However, Shell swiftly denied the acquisition rumors, stating that the reports were merely "market speculation" and that no talks were taking place.

Market Reaction and Analyst Commentary

This denial led to BP's shares retracing some of their gains, ultimately closing up by about 2%. Industry analysts suggest that if an acquisition were to occur, it would likely involve BP being split and sold to multiple companies, rather than a complete takeover by Shell.

Strategic Direction and Acquisition Speculation

BP's recent struggles to define its strategic direction, particularly its shift towards renewable energy, have fueled speculation about the company becoming an acquisition target. Activist investor Elliott Management's stake in BP has further intensified this speculation.