1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Greenbackd
Greenbackd
Articles (5983) 

If Icahn buys BP…

June 14, 2010 | About:





Whitney Tilson of T2 Partners has been making the rounds in the media talking up his position in BP Plc (LSE:BP). Here’s Tilson on Fast Money late last week:



Market Folly has a great summary of Tilson’s rationale here. In short, it’s a case of being greedy while others are fearful. Tilson compares BP to the Texaco v Pennzoil litigation in the 80s. Tilson makes the point that shareholders in Texaco “weren’t harmed” when Texaco filed for bankruptcy protection following Joe Jamail’s $12 billion judgement against the company. Here’s Icahn describing the negotiations to settle the litigation:



Icahn made out like a bandit on his holding in Texaco. One wrinkle to this comparison is that BP is a British stock, and so it’s not subject to the same bankruptcy regime as Texaco. The Texaco matter also wasn’t as politically sensitive as the BP spill.

The Wall Street Journal has an interesting analysis discussing various scenarios for BP (subscription required).

Greenbackd

http://www.greenbackd.com

About the author:

Greenbackd
Greenbackd is a former corporate advisory and securities lawyer working in value-oriented activist funds management.

Rating: 2.5/5 (6 votes)

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


av_ranjhaMoat
chrispageROC 10yr new FCF filter
MTNestActive filters 052516
morsy.hananBuffet Soros
Doug TaylorNet cash dividend
DBrizanProspects 6May2016
DBrizanProspects 5May2016
pakito866Combination
DBrizanholdings & prospects 25May2016
matt.baker52 week low

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK