BP Amoco set to unveil Arco bid

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The Independent Online
BP AMOCO is today expected to unveil an agreed $28bn (pounds 17.2bn) bid for the US's eighth-largest oil company, Atlantic Richfield (Arco), after Arco's board meets to vote on its all-share offer.

Analysts say they expect the transaction to value Arco's shares at $75 or more each, about 20 per cent above the price last week before the two companies confirmed they were in takeover talks. BP Amoco's board was reported to have approved the bid on Tuesday.

The combined BP Amoco-Arco would be the largest oil producer and refiner in the US. BP Amoco is the world's third-biggest traded oil company.