BP Amoco & ARCO

BP Amoco and ARCO boards approve merger. The transaction is an all stock deal valued at 26.8 billion based on BP Amoco’s Friday closing price of $100 per American Depositing Share. BP Amoco’s new reserves and production base will make the company the largest non-state oil producer. In a joint statement, Browne and ARCO Chairman Mike Bowlin said: “Against the background of uncertain oil prices and the increased competitive pressure across the sector, it is clear that the uniquely complementary operations of our companies can compete more effectively together than apart to deliver our respective shareholders a superior return on their investment.”