BP Board Meets June 14 to Discuss Dividend Cut or Deferral, Spokesman Says

BP Plc’s board will meet June 14 to discuss whether to cut or defer its second-quarter dividend payment following the Gulf of Mexico oil spill.

A decision on the dividend may not be reached at the meeting, BP spokesman Robert Wine said in a telephone interview today. “All options are being considered,” he said. “No decision has been taken.”

BP shouldn’t pay dividends to its shareholders before the losses of fishermen and other victims of the spill have been compensated, House Speaker and California Democrat Nancy Pelosi said yesterday. BP Chairman Carl-Henric Svanberg is traveling to Washington for a meeting with President Barack Obama next week to discuss the company’s response to the disaster.

Oil has been leaking from the well since the BP-leased Deepwater Horizon rig exploded April 20, killing 11 workers. The well is releasing 20,000 to 40,000 barrels of oil a day, according to an estimate published yesterday by U.S. government- sponsored scientists.

BP met its biggest shareholders last week to discuss the dividend, Wine said. BP’s stock has fallen 39 percent since April 20, wiping more than 51 billion pounds ($74 billion) off the company’s market value.

To contact the reporter on this story: Jon Menon in London at jmenon1@bloomberg.net

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