Invesco Perpetual head of investments Neil Woodford says it is 'reckless' to believe BP's $20bn compensation package will mark the end of the oil giant's worries.
Woodford, manager of the group's £9.4bn High Income and £7bn Income funds, is one of the few managers in the equity income sector to not be hit my BP's Gulf of Mexico decline, after offloading the stock last year.
The manager says he sold BP on the view the company was paying out too much in dividends and not investing enough in exploration and production, the Independent reports.
BP last week suspended all dividends for 2010 and agreed a $20bn compensation fund for victims of the Gulf spill.
Despite the company's share price slide from the middle of April, Woodford will not going to be buying back into the oil giant.
"It would be reckless to assume $20bn is all BP has to worry about," Woodford says.
"BP's growth aspirations will have to be significantly reined back, and it may well be a much smaller business in future."
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