REUTERS reports:
The emergence of a possible bid for BP (BP.L), opens new tab by the United Arab Emirates’ state-owned oil group has thrown a spotlight on the vulnerability of the Britain’s largest companies to takeover and the threat to London as a global capital markets hub.
New York’s larger investor base and easier access to capital compared with London are reflected in higher valuations, which have encouraged several UK-based companies to list there, including chip maker Arm.
“London is a market for sale,” Charles Hall, Head of Research at brokerage Peel Hunt told Reuters. “If you have lowly valuations it’s absolutely inevitable that lots of overseas investors and private equity will run the slide rule over your companies.”
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