MARKET TALK: BP's $20B Oil Spill Deal Is Pragmatic - Citi

0935 GMT [Dow Jones] BP's (BP) deal with the Obama administration Wednesday to set up a $20Bln oil liability fund is a pragmatic and conservative approach to the company's woes, says Citigroup. "With net debt around $25Bln and estimated gross cashflow in excess of $70Bln in the 2011-2012 period, we remain of the opinion that BP is well placed to meet the financial liabilities," it says. Even if ultimate spill costs hit $40Bln, BP is still worth a 590p target price and buy rating, it says. Shares +7.7% at 363p. (james.herron@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 17, 2010 05:35 ET (09:35 GMT)