Kuwait govt sells BP stake

The government of Kuwait today cashed in on the rapid rise in the value of BP this year by selling £1.2bn (€1.78bn) of the oil giant’s shares.

Kuwait justified the disposal of 185 million shares or 0.89% of current BP stock on the need to “rebalance its international investment portfolio”.

Reports said the shares were placed with a consortium of banks at 645p, representing a 27% increase on their value at the start of this year.

Oil firms have seen their value boosted this year by oil prices that hit a new record above $70 in August and are more than a third higher than in 2004.

This will be reflected in the annual results of BP with analysts expecting the company to bank more than £11bn (€16bn) in profits this year.

Kuwait will continue to hold a stake of around 2.56% in BP, making it one of the oil giant’s biggest shareholders with an investment worth £3.54bn (€5.2bn).

It has promised not to sell any of these shares for at least another 90 days.