NEW YORK (TheStreet) -- BP (BP) shares are climbing, up 2.4% to $40.79 in trading on Tuesday, following reports that the oil company was considering a takeover bid from rival Royal Dutch Shell (RDS.A) , according to Reuters.
There are not any specific numbers available as both companies have declined to comment on the report.
The Reuters report does quote an analysts at IG who believes that the likelihood of a merger in the current climate with oil prices falling to multiyear lows is far fetched. "It seems difficult to believe that Shell would make such a big acquisition at this difficult time for the oil market," analyst Chris Beauchamp told the news service.
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TheStreet Ratings team rates BP PLC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BP PLC (BP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."