NEW YORK (TheStreet) -- BP (BP) shares are up 0.26% to $41.94 in afternoon trading on Thursday as it nears a bid for oil company Penn Virginia Company (PVA), according to U.K. new service Proactive Investors.
BP offered to acquire the company for $8 per share, according to the report, which rejected the offer because it believes that that purchase price undervalues the company.
Penn Virginia is looking for at least $10 per share.
Penn Virginia shares have decreased by more than 75% over the past 12 months as falling oil prices forced the stock down to its opening trading price of $4.50 today, well below last June's price of $17.
The company has responded to the report by saying that it has no comment on market rumors.
Penn Virginia shares spiked 9.88% to $4.90 in trading today following the report.
Fellow oil giants Exxon Mobil (XOM) and Chevron (CVX) are both declining as fell in trading today.
TheStreet Ratings team rates BP PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BP PLC (BP) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."