BP board discusses dividend suspension

[June 14, 2010]  LONDON (AP) -- The board of BP PLC will on Monday discuss U.S. demands to suspend dividend payments to shareholders until the British company pays for the cleanup of the Gulf of Mexico oil spill.

The London meeting comes as U.S. President Barack Obama begins a two-day visit to the Gulf Coast to view the damage from the massive slick and talk to affected residents.

BP has a number of options regarding dividend payments and analysts believe the company is unlikely to scrap it altogether. It can also defer it, pay it into shares or pay it into a ring-fenced account.

Any decision is not expected to be announced immediately, with BP executives due to meet Obama in Washington on Wednesday.

[Associated Press]

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