BP merger bonanza for Amoco executives
Thursday 13 August 1998
In addition, executives and directors of the company own a further 2.5 million shares worth $125m based on the value of BP's offer at last night's closing price.
A total of 3,000 employees out of the group's 42,000 workforce are entitled to stock options. The company's annual report for last year shows that at the end of 1997, 41.6 million options were outstanding.
An Amoco spokesman could not say what proportion were granted to the board, led by chairman and chief executive Larry Fuller. But of the 3.4 million options granted last year, 10 per cent or 370,000 shares were granted to Amoco's top five executives.
The BP Amoco deal, the biggest industrial merger in history, continued to send shock waves through the oil sector yesterday as dealers reacted positively to the news. The value of Amoco, based on the all-paper offer from BP, rose to $49bn or $51.36 a share. The BP share price drifted down 1p to 794p as arbitrageurs moved in, dumping the stock and buying Amoco instead as a cheap way back into BP shares. BP is offering just under four shares for every Amoco share in a deal which will give it 60 per cent of the combined group.
As BP chairman Sir John Browne briefed US analysts in New York on the deal, the markets continued to react warmly to the deal. Salomon Smith Barney said the merger was strongly positive for both stocks, put a target price of pounds 10 on BP shares and $66 on Amoco stock. Alan Marshall of James Fleming in London said it was possible Amoco shareholders would hold out for a higher price from BP.
The deal will have to be vetted by both the European Commission and the US Federal Trade Commission or Justice Department but analysts foresaw few regulatory hurdles.
- 1 End of the licence fee: BBC to back radical overhaul of how it is funded
- 2 This restaurant has misunderstood the concept of 'cheese and biscuits'
- 3 Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face death penalty
- 4 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 5 PornHub turns masturbation into energy in bid to save the planet
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
End of the licence fee: BBC to back radical overhaul of how it is funded
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...