HC Deb 07 May 1975 vol 891 cc468-9W
Mr. Mather

asked the Secretary of State for Energy if, in connection with the support arrangements for the Burmah Oil Company, he will detail the Government's conditions for the deal and state if it was open to Burmah shareholders or for foreign banking interests to buy BP shares.

Mr. John Smith

The Government have agreed to indemnify the Bank of England against any losses the bank may incur as a result of the support which the bank has undertaken to provide to the company. Initially, Burmah's unpledged holdings in BP were to be charged to the bank as security but subsequently the company approached the bank for substantial further assistance and in the time available the urgent requirements of the company could be met only by the sale of the BP holding to the Bank of England.

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