One of the possibilities we've mentioned since oil prices started their swoon mid-last year is takeovers.
As panic among investors sets in over the concern of where the oil price bottom will be, investors often forget that low prices make assets more attractive, increasing the chance for mergers and acquisitions.
Well, now rumors of such grow.
Shares of BP plc (NYSE: BP) spiked higher Thursday, on a report from the Wall Street Journal that ExxonMobil Corporation (NYSE:XOM) may be considering taking advantage of low oil prices and preparing to bid for companies struggling with the downturn. In addition to BP, Chevron Corporation (NYSE: CVX) was mentioned as a possible target.
And there will be more such stories. Low prices make certain assets attractive.
www.reuters.com/article/2015/02/16/us-japan-economy-gdp-
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