BP Exploring Sale of Arco Fields to Win Merger OK
BP Amoco is talking to potential buyers of Atlantic Richfield Co.’s Alaskan oil fields in hopes of removing the main obstacle to its proposed $29.7-billion buyout of Arco, people familiar with the situation said Friday.
The talks are exploratory and hinge on price and contractual arrangements after a sale, the people said. BP Amoco has discussed selling the assets in talks with the Federal Trade Commission but hasn’t committed to do so, they said.
FTC lawyers will interview prospective buyers to determine if they can afford to buy Arco’s Alaskan fields and effectively compete against the combined company, said another person familiar with the talks. At the same time, FTC staff will prepare for a court battle with BP Amoco, the person said.
Under most settlements, the FTC reserves the right to approve a buyer as a condition of clearing an acquisition. Potential buyers include Anadarko Petroleum Corp., Phillips Petroleum Co., Chevron Corp. and Williams Cos.
Alaska Gov. Tony Knowles met with each of those companies last year to gauge their interest in buying fields that the state is requiring BP Amoco and Arco to sell. Chevron, Phillips and Anadarko all said they are interested, though they had no comment on any talks. Williams could not be reached.
A BP Amoco spokesman declined to comment because of pending litigation with the FTC regarding the acquisition.
The report on talks gave Arco’s shares a boost. Arco closed up $3.69, or 5.7%, at $68 on the New York Stock Exchange. BP Amoco’s American depositary receipts rose 75 cents to close at $44.38, also on the Big Board.
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