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Street hearing what it wants to hear from BP CL joining us now.
Well a lot of he -- portfolio manager at trillium asset management his firm get this sold off ten million dollars of its BP shares in May.
This guy has good insight we also have Bob Dylan -- man of incredible insight that -- Schneider group.
One of the best PR firms in the country for more in today's -- -- how they turn the image of the company around.
But let's -- -- our -- Charlie Gasparino -- breaking news on BP's possible quid pro quo in the works for Wall Street what is.
It's it's passing David with -- -- we as we first reported there they have they have three investment advisors Goldman Sachs Credit Suisse.
Blackstone Group investment advisors on potential future deals maybe if the -- stuff -- -- -- the -- cash or stock or bond issue but Fox Business Network has learned that there they are now in negotiations with four more banks.
That is UBS.
Morgan Stanley HSBC and a bank and Asian bank of standard chartered.
Again to possibly raise money in the future sells itself advise it on financing they -- trick here though sources tell at the end.
BP is go to those firms saying if you wanna be a -- you wanna make some money off of us -- -- -- this tragedy.
You have to be ready and willing to lend us money so they're asking for bank lines of credit they are tying tying investment banking assignments.
Advisory work on investment banking.
With the potential that you have to be -- you have to stand ready.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Be part of -- our you know if we do future stock deal if we sell stuff if you wanna -- just make money as an investment banker advisor.
On future deals you have to be ready to were -- raise money for us you through bank lines of credit -- -- this is a pretty.
Sticky situation I understand the Morgan Stanley is balking because of that quid pro quo they may ultimately joined joined detected the group.
But this is it but it yelling at me -- a big US securities laws prevent kind.
A bank cannot go to you and say.
Hires is an advisor -- your money there is no law that prevents you the corporation to tell me if you wanna be my advisor -- islanders on -- a lot of back channels throughout.
They are -- but I'm just telling you the did the right -- -- it is legal for what DP is doing here.
It go here's the problem Morgan Stanley allow these players.
They're worried about lending the money being on the hook -- on the money this is still an extremely fluid situation.
The listen if you think twenty billion dollars is gonna cover this you probably way low Credit Suisse which is one of the devices are ready.
-- put out a report earlier in the month before by way before they were hired as an advisor.
So did the liability back then was going to be forty billion I think a lot of people think it's going to be -- -- from often time Oppenheimer told -- is probably going to be sixty billion all right but this is this is it and that's that's pretty high and you know you never know what's gonna happen after that.
I will say this these this is a fluid situation since so we would you do what we're talking about -- -- FBN has learned.
For additional banks are buying -- -- and are speaking.
With with BP to be advisors and it's it's been held up on this sort of quid pro quo they give us will get big you -- -- you give -- money.
Well a lot of what is it what does that hold up tell you about BP's future.
Well I think that you know the news they came out yesterday you have to like.
-- an incremental positive obviously normally a dividend cut and having to put twenty billion Masco would be.
A negative piece and is that you talk about some.
The numbers that were being thrown out last week.
Maybe the Obama administration forcing BP -- come up behavior hundred billion dollars immediately affecting effectively risking the whole company's what we have now with a twenty billion.
There's a spies BP some time I'm over the next year they're gonna have to kind of -- -- -- billion.
They showed a credible funding plan in order to come up with that by cutting their dividend cutting capital expenditures just a little bad.
An office online at ten billion in assets.
And I think also they gave investors at least some visibility for a light at the end of the tunnel possibly the dividend coming back in 2011.
That's what BP's -- See we'll see -- does that may not have enough cash for that to happen but well let's let's just put up on the on the screen if we can.
A one -- star chart for for BP because you sold.
Come back in May around the week of may third for about 51 dollars a shares courts it's now 31 dollars.
Yes you sold what about 200000 shares.
Yeah that's correct so so.
What did you know that this thing was spiraling down or had you had any plans even before the accident to sell some BP shares.
Yeah Iowa you know the firm naturally and we take a closer look at -- environmental social and governance factors and they're gonna.
Variety of issues that BP really over the past several years that have been a concern for I like what and this was really just.
Well what -- you what you have with the inclusion of Tony Hayward coming and was.
Kind of a shift in focus certainly.
On the climb inside Iran I don't really keep -- right now but but even before the accident you had questions about Tony Hayward that's what you're saying.
Yeah and united say that enough to -- -- -- that early in the air that was the red flag was you know there was a 2005.
You know explosion and used -- in Houston the Texas City and also there was the Alaska slope oil leak in 2000 sex.
There's reports out early in the air saying that even after three or four years to deal with these problems operationally BP so -- out of compliance.
And that haven't been able to really fix the problems so.
On the operational side it was clear that BP wasn't responding and then the fact that two weeks after the the Deepwater Horizon accident.
He clearly didn't have a good emergency response plan in place quickly figured oh well it's an international red flags.
Being raised Willits Charlie Gasparino on do you think it is feasible for BP to do fairly large bond deal right now the -- years -- -- have to.
I mean look at the credit spreads look at where look at with a credit I guess this credit default swaps that are trading down -- trading up a frightening events that's insurance on certain to default what do you think about potential bond -- Well you know -- so.
Prize I would say right now you know what BP S signal yesterday it was an asset sales on the -- -- -- market.
As a stronger mark would be easier for them to raise.
Cash and I think you know the bond market is gonna take some comfort in the fact that again point eight billion while that's expected in the next -- also that the dividend cut is being made.
So I would say that because probably not looking to the bond market for their first first place -- -- quarter.
Other options before these hearings begin I wanna make sure we get the Bob Dylan Schneider we're talking about the whole.
Image of BP of course the images couldn't be worse than it is nicely particularly after it was not like Tony Hayward Bobbitt did you have the chairman come out and talk about there's -- people we what what do they do now.
David BP is back on the field and this seems like they're making mistake after mistake -- completely.
No one of the things they should do was understand the American culture.
But the most important thing the BP could do right now and it would turn the whole situation room actually -- them weeks ago.
If they should issue a long term plan point by point.
Instead -- responding to approach and the legislators.
And then -- work when they should come up every twelve hours.
With the progress from -- could only -- them.
They should trillion Hayward in terms of -- the right -- the American public.
They should certainly remind -- -- Iraq Bob isn't it over for Hayward honestly I don't think so I think -- -- the -- word for at least for the short term.
Somebody Earthlink will dropping them from a very hard for.
I don't know who it'll be very -- B Tony Blair.
We've we've somebody from the Obama administration.
Little retirement solve little problems I got an -- air and Georgia -- and if somebody have to come -- above every word above BP about the whole thing.
He or she have to say I'm gonna bring the resources we have -- -- this program and so all the emotional for the American people.
Commercial for BP for the shareholders for the people who live on the Gulf Coast and here's -- we're gonna do it by the way you.
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