The rumor BP (BP) will cut its dividend, which built overnight with a WSJ article and then was enhanced this morning by a Times of London piece, gained further support this afternoon as BBC business editor Robert Peston said BP’s board of directors are to meet Monday to formally decide on suspension of the dividend. Any announcement wouldn’t happen until after a Wednesday meeting with President Obama, Peston believes.
“In practice, Monday’s discussion at newly instituted weekly meetings of the board will be about when to suspend the payments, how long to suspend the payments, and what to do with the billions of dollars that would be saved and not paid to shareholders,” Peston is quoted as saying.
It’s unclear how exactly Peston came to this conclusion. There are no sources cited, even anonymously, for this tip.
BP shares, meantime, have held onto gains, rising 86 cents, or 2.6%, to $33.63.
source:Barrons' Blog
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