BP shareholders gave their overwhelming support to the company’smerger with Amoco last week. About 700 shareholders voted toapprove the merger at a general meeting at the Royal Festival Hallin London. Shareholders representing another 3.2 billion sharesvoted by proxy with 92% approving the merger. Chairman PeterSutherland called the vote a “massive endorsement” of the deal. Theall-stock transaction will result in a 60-40 equity split with BPshareholders having the majority.

It is the largest ever industrial merger, which will create anew company with a market capitalization of $110 billion. BPofficials estimate the deal will save the two companies $2billion/year by 2001 through organizational and operationalefficiencies. BP’s earnings in 1997 were $4.6 billion and Amoco’stotaled $2.7 billion. Combined revenues were $108 billion andcapital employed was $53 billion.

BP CEO Sir John Browne said, “Since we announced our plans inAugust, we and Amoco have made excellent progress towards securingthe approvals needed to bring our two companies together. Today’svote by BP’s shareholders is a major step in that process and keepsus firmly on track to meet our target of closing the deal by theend of the year.” Amoco’s shareholders are due to vote on theproposed merger in Chicago on Dec. 10.

The Reuters news service reported European CompetitionCommissioner Karel Van Miert said on Wednesday that the EuropeanCommission was likely to clear the proposed merger. However, thedeal could face its highest regulatory hurdle in the U.S. becauseof retail gasoline market share in the Northeast.

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