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BP Rebounds on Agreement to Phase Oil Spill Payments

BP Plc rebounded in London trading and the cost of insuring the company against default tumbled after an agreement to phase in payments to a $20 billion fund to compensate victims of the worst oil spill in U.S. history.

BP scrapped dividends and pledged asset sales yesterday to meet President Barack Obama’s demand to set up the fund in response to the Gulf of Mexico oil spill. Its shares have slumped 45 percent since the Deepwater Horizon rig exploded on April 20, wiping about 55 billion pounds ($81 billion) off the London-based company’s value.