Exxon gained approval to mount £100bn bid for BP

BP’s rival oil giant Exxon has reportedly gained White House approval to table a £100 billion bid for the tormented British oil company.

Reports emerged that the Obama administration has assured Exxon that it would not obstruct any potential takeover bid for BP, which is undertaking a high-stakes gamble to fix the Gulf of Mexico oil spill problem.

Sources also suggested that the US-based oil group Exxon had showed a serious interest in the potential takeover. It may be noted here that

Exxon itself was responsible for the world's biggest oil spill until the disaster in the Gulf of Mexico occurred.

On the other hand, BP has been trying hard to encourage Middle east investors to purchase more shares in a bid to foil any takerover bid from the side of rivals such as Exxon.

BP removed a containment cap on shattered the well to put a better one in its place. As much as 2.5 million gallons of oil is estimated to gush into the sea until the new cap is put to seal the well again.

Shares in BP lost 40 per cent of their value since its Deepwater Horizon rig exploded, triggering the oil sill.