BP shares hit 14-year low amid funding concerns

source:bbc.co.uk
Shares in BP have fallen further amid speculation that the company may have to seek extra funds to pay for its oil spill costs.

Shares were down by 7% at one stage, hitting a 14-year low.

In a note to investors trading house Nomura said pressure was growing on the company to "assure sufficient funding" to stop the spill.

Earlier BP said that its costs linked to the Gulf of Mexico oil disaster had risen to $2.35bn (£1.57bn).

The total costs, including compensation claims, are expected to be much higher.

"We consider that equity linked financing - perhaps backed by sovereign wealth - could prove the attractive short-term solution," said Nomura,

It added that BP's perceived need for more money was damaging the company in the eyes of investors.