By ROBERT BARR (AP)
source:google.com
LONDON — Shares in BP rose in London Thursday, as the company's agreement to set up a $20 billion fund and cancel dividend payments to cover damage from the Gulf of Mexico oil spill reduced uncertainty over its liabilities.
The shares were up 9.4 percent at 368.7 pence ($5.42) after the first hour of trading on the London Stock Exchange.
They had also rallied in U.S. trading Wednesday, gaining 45 cents to close at $31.85, after BP executives' meeting with President Barack Obama produced an agreement that analysts said provided much-needed clarity for investors.
"BP's package agreed with President Obama should cool the political heat and provide some degree of comfort to equity and bond markets, shareholders and businesses/residents in (the Gulf of Mexico) affected by the Deepwater Horizon accident," analysts at Evolution Securities said in a research note Thursday.
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