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June 3 (Reuters) - BP's (BP.L) (BP.N) oil spill in the Gulf of Mexico has become the worst in U.S. history, prompting speculation about the future of the company and its chief executive, Tony Hayward.
Here are some potential scenarios facing BP:
BP RUNS OUT OF CASH - UNLIKELY
BP BECOMES A TAKEOVER TARGET - UNLIKELY
BP's market capitalization has fallen by around $65 billion. Estimates for the total cost start at around $5.3 billion [up to $37B].
The company made a profit of $44 billion just last year and it is one of the ten largest companies on earth. It's future is perfectly safe.
BTW the extreme drop in market capitalization is either just classic panic (the "experts" do this much more then the average joes on the street) or because the spill makes it an obvious target for shorting (possibly naked short sales as well which are illegal but extremely common). The reality is BP isn't going to have to pay more then six months profits even in a worst case scenario and it has trillions in assets once you figure the oil fields it owns exclusive rights to so the company has loads of assets.
I'm sure BP will be just fine. It's the future of the Gulf of Mexico, its coastlines, its wildlife, and the region's economy that's the big worry.
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