UK Government Preparing For Worst As BP Spill Fears Grow -Report

DOW JONES NEWSWIRES The U.K. government is making contingency plans for a possible collapse of BP PLC (BP) as worries grow over the Gulf of Mexico oil spill, U.K. newspaper The Times reported Tuesday, without directly citing sources. Talks led by Department for Business and Treasury officials reflect growing concern about the implications of a corporate failure of BP, the report said. It said the government is worried about the political ramifications of a BP collapse, as well as the potential effect on millions of retired people whose pensions involve BP dividends. U.K. Prime Minister David Cameron and Energy Secretary Chris Huhne are set to discuss BP's future with U.S. officials during a July 20 trip to Washington, the report said. It said the Department for Business declined to comment on the contingency plans. The report cited one insider as saying the question was raised as to whether--under extreme circumstances--the government should consider intervening to protect BP. The Times website: http://www.thetimes.co.uk (END) Dow Jones Newswires July 05, 2010 21:17 ET (01:17 GMT)