Goldman Sachs (NYSE: GS) can certainly empathize with British Petroleum, which is going through a disastrous PR crisis in the wake of the Gulf Coast spill. So I guess it is not surprising that the embattled oil company has retained Goldman Sachs--along with the Blackstone Group and Credit Suisse--as a financial advisor. The big question is why.

Some have speculated that the big advisors were hired to ward off a takeover attempt. The company has disputed that, and FOX Business has reported that the company simply wants advice on how to pay off its liabilities over the next five years. Still, the idea of a takeover of the venerable firm is not far-fetched. The New York Times reports that Shell and mighty Exxon are "licking their chops."

Certainly, the persistent crisis could spawn more liabilities such that bankruptcy is the only option. An acquirer may be willing to roll the dice now, an offer BP would have to consider. For now, the probability of a bankruptcy is seen as a low. The chance of a takeover is even lower. But you never know. The fact that it is even talking about this may be some sort of indicator. 

For more:
- here's the FOX Business article
- here's the Times article
- here's a Guardian article on the chances of survival

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