BP lines up flotation

Energy giant BP has set in motion plans for one of the biggest stock market flotations of the year, a report said today.

The UK-based group is thought to have appointed US investment banks Goldman Sachs and Morgan Stanley to advise on a New York listing for part of its $8bn (€6bn) petrochemicals business.

BP could raise around $3bn (€2.3bn) from the sale of a 50%-plus stake in the olefins and derivatives business, which contributes to a number of everyday products. The Chicago-based subsidiary employs more than 7,000 people at 26 locations worldwide, including Grangemouth on the Forth.

The decision to proceed – reported in the Sunday Telegraph – comes after chief executive Lord Browne said last year he was considering either a trade sale or public offering of the business.

It is expected that proceeds from the sale will be returned to investors through BP’s share buy back programme.

The public offering is believed to be the first time that BP has floated any part of its European business.

Later this week, BP is also due to announce that Lord Browne earned £5.5m (€8m) following the company’s bumper results performance in 2004.

Profits rose to $16.2bn (€12.2bn) although the pay package is still short of the £5.7m (€8.3m) picked up by Lord Browne in 2001, the Sunday Telegraph added.