BP shares rise on Gulf settlement news

LONDON - Shares in BP PLC (BP) are trading near two-year highs in the wake of the oil company's announcement that it had reached a settlement with victims of the massive Gulf of Mexico oil spill.

BP shares were up 1.6 percent at 504.4 pence in midday trading in London Monday. BP shares are at their highest level since since May 2010.

BP said Friday it expects to pay out at least $7.8 billion as part of the settlement. It expects the money to come from the $20 billion compensation fund that it has set up.

BP expects Gulf spill deal to cost $7.8B

Jonathan Jackson, head of equities at Killik & Co. in London, says the news isn't the end of BP's problems but that "it does provide increased visibility over its potential liability and significant progress toward resolving the issues."

The all new
CBS News App for Android® for iPad® for iPhone®
Fully redesigned. Featuring CBSN, 24/7 live news. Get the App