British Petroleum Co PLC may have toraise its planned 70 dlrs a share tender offer for the publicly
traded shares of Standard Oil Co &lt;SRD>, analysts said.
    "There's a lot of speculation here that someway or other
they would be forced to come up with another bid," said Rosario
Ilaqua of L.F. Rothschild.
    And despite BP managing director David Simon's denial today
that BP would raise the offer, the analysts said that remained
a distinct possibility.
    Analysts said they base their thinking on Royal Dutch/Shell
Group's &lt;RD> &lt;SC> bid to buy the outstanding stake of Shell Oil
Co in 1984 and 1985. Royal Dutch/Shell eventually raised its
initial 55 dlrs a share offer to 60 dlrs a share, after
lawsuits by minority shareholders.
    "I think they're going to have to go a little higher
eventually, just as Royal Dutch/Shell had to go a little higher
for the Shell Oil minority shares," Bruce Lazier of Prescott
Ball and Turben said. He estimated a price of 75 dlrs a share.
    Royal Dutch/Shell offered 55 dlrs a share for the 30.5 pct
of Shell Oil it did not already own in January of 1984. After
objections from minority shareholders about the price, Royal
Dutch/Shell raised its bid and began a 58 dlrs a share tender
offer in April 1984.
    But shareholders sued and a court blocked completion of the
offer. After months of wrangling over the worth of Shell Oil,
Royal Dutch/Shell agreed to another two dlrs increase.
    It ended up paying 5.67 billion dlrs for the outstanding
Shell Oil stake, a significant premium to its original bid of
about 5.2 billion dlrs.
    The analysts made their comments before Simon's remarks at
a BP press conference in New York this afternoon.
    Sanford Margoshes of Shearson Lehman Brothers Inc told
clients this morning that a sweetened offer was possible. The
analyst said the bid could be raised by two dlrs a share.
    Analysts do not expect regulatory hurdles because of the
Royal Dutch/Shell group precedent. But there may be shareholder
lawsuits for the same reason, they said.
    Goldman Sachs and Co, BP's investment advisor, advised the
Shell Oil board in 1984 and 1985.
 Reuter
