The crisis engulfing BP plumbed new depths last night as President Obama bullied the company into depositing £13.5billion into a fund to settle compensation claims for the calamitous Gulf of Mexico oil spill.
After a face-to-face showdown with the President at the White House, BP chairman Carl-Henric Svanberg revealed the payment meant the oil giant would be forced to suspend dividends to its shareholders until at least next year.
The news sent BP shares plunging to a 14-year low of £3.37, and is a major blow for Britain's pension funds, which rely on BP's dividend income to provide £1 in every £6 they receive each year
Since the fatal explosion in April, the value of the company - formerly Britain's biggest - has halved to £63billion.
BP's backdown came as David Cameron finally broke his controversial silence over Mr Obama's attacks on the company. The Prime Minister revealed he told President Obama not to 'go after' BP 'for the sake of it'.
Yesterday's dramatic capitulation came as U.S. officials and lawmakers escalated the ugly rhetoric over the disaster. |