Buy KK if it does fall.In any market there is money to be made if you seek out the opportunities.

@mBiaLoss please google this when you have time... "bp $100billion 15 years"
After you read tell me if the stock still looks cheap

The more scary news get out right now, the cheaper the stock becomes...that is why I would buy if I had the money...Seriously...BP is an example of too big to fail....Alot of pensioners in Britain have BP stock...so the British Government will never allow BP to fail...otherwise what will they do with all the pensioners....Look even if they pay $100b, it is over 15yrs....The Macondo well we now know has oil...lots of it it seems (estimates of about 3b barrels)...They have drilled 2 more relief wells, to kill the well and also to use it for future production....If we assume, they extract 80,000 barrels of oil per day, at the current price of $75 per barrel, then in 15yrs they will make $23b from that one well...The well will pay for itself and all the fines...But remember they will share the fines with the other two companies....
BP will survive...that is for sure...their stock right now is cheap....very cheap....because of the bad news...YES SO IF I HAD MONEY....I WILL BUY...by this next year the stock will double and I sell

@mBiaLoss

Your thoughts and reasoning are spots on.
But at USD37.00 at the moment I think you may be able to get it cheaper circa USD30.00 that will happen if the oil price slips to circa USD70.00, but it can go either way. Two weeks ago BP was as low as USD28.
Spending USD 100B over fifteen yes is a small fry from the expected receinue BP will make in 15 years.
There is no way BP will not reach USD 62.38 in US market but it ,may be longer than 6 or 7 months. I suggest a minimum of 1 year.

Your illustration of Citibank is absolutely right.

Just like GOK did not allow Uchumi (a supermarket) to go under the oil giant BP cannot be allowed to die because of pensioners funds.

I guess you seen recently the British Government come out exerting pressure on the US gov to go easy on BP...It is political hot potato...for the British gov to sit by and watch BP go under...From some estimations other than the British Gov, BP is the second biggest supporter of pensioners in the UK....BP going under is a political risk no one wants to take in the UK

BP's much-criticized CEO Tony Hayward will be replaced by American Robert Dudley on Oct. 1, the company said Tuesday as it reported a record quarterly loss and set aside $32.2 billion to cover costs of the devastating Gulf of Mexico oil spill.

Corporate politics at it's best. Kick out the Briton, put in the American and all is calm. Well done BP!

Exxon would not want to merge with BP. BP could split its UK and US business and run them as 2 separate companies.

I totally agree with you and that was a smart move by BP! Declare a large loss right and write claim tax credits from UK and USA govts ($7b this quarter). That means as long as BP makes losses, both Govts get no tax. If you saw the news, there are no complains from the same policians who want BP to spend all that and dont want it to claim the Tax Credits.
By the way BP is never ever going to spend $30b dollars...When the Exon Valdex grounded in Alaska in 1989, the case went to Court and was only settled finally last by the US supreme court that ruled that Exonn did not have to all the money the Govt wanted. That is 20+ yrs after the spill. Exonn never merged and never collapsed.As a matter of fact it grew to be the largest publicly traded company in the world.
Come back to BP, when all the political noise and dust has settled down the case will go to course and the following points to come to light:
1. As per current USA law, there a Cap in BPs liability (a few billion dollars but am not sure of the exact number, $2b I think)
2. The moner doesnt have to be paid right away: It took exonn 20yrs, so even if BP want to spend 32b, that is over 15-20yrs...It can afford that.
3. BP only owned a 65% stake on that well..There an american company with 25% stake that nobody talks about and a Japanese company with a 10% stake. Those companies are Jointly responsible for the clean up cost.
4. Transocean owned the rig, and will be responsible for the people who died during the explosion. And if found to have been criminally negligent in safely operating the rig (read switching off critical monitors) they will be responsible for something.
5. Harlibuton did the cementing work on the well before explosion and if they did a shortie job, they will be fined and held liable for some costs..
6. The company that made the faultie Blow Out Preventer BOP) is currently wishing the political dust continues, because if it settles, the question will be: Why did the BOP not work?

As you can see, there plenty of parties to share the cost with BP....

I still mantain if I had money..BP is a perfect opportunity for me to make a killing...Look from June 28th to now the stock of the company has increased by $10, a 35% return if I had bought then...