Thursday, June 10, 2010

BP bashing becoming a matter of national concern to Brits

SHOOT: If Britain loses BP, the world's 4th largest company, it puts their entire economy at stake. Why? Massive exposure to of British pension funds to BP.
clipped from

The politics of the spill crossed the Atlantic on Thursday, with London Mayor Boris Johnson expressing concern about the "anti-British rhetoric that seems to be permeating from America."

Johnson said that BP was paying a "very, very heavy price" for an accident.

"I would like to see a bit of cool heads rather than endlessly buck-passing and name-calling," Johnson told BBC Radio. "When you consider the huge exposure of British pension funds to BP it starts to become a matter of national concern if a great British company is being continually beaten up on the airwaves."

Cutting the dividend would have a big impact in Britain, where the company accounts for about an eighth of dividend payments from companies in that country's blue-chip stock index, providing crucial income for retirees. In addition, about 40 percent of BP's shareholders are based in the U.S.

The share price falls in London and New York have wiped out around half the company's market value.

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