BP says no plans for share issue

LONDON: BP Plc says it has no plans to issue new shares to help pay for the Gulf of Mexico oil spill, giving its shares a further boost amid rumors of interest from sovereign wealth funds. (Watch)

BP spokesman Mark Salt said Tuesday that BP ``is always happy to welcome new shareholders or existing shareholders who wish to increase their shareholdings, but there's no current plans to issue new equity to anyone.''

The company's statement is good news for investors whose own holdings would be diluted by a larger stock base.

Recent reports have suggested that a number of Middle East sovereign wealth funds are considering purchasing a stake in BP, helping calm fears of a full takeover.

Shares are 2.25 per cent higher at 340.8 pence ($5.17) on the London Stock Exchange.