Updates May 29 story with company response in paragraph 6

May 29 (Reuters) - BP's BP.L recently ousted chairman Albert Manifold clashed with fellow director Simon Henry earlier this year over the handling of sensitive talks related to a potential deal, the Wall Street Journal reported on Friday, citing people familiar with the matter.

BP ousted Manifold on Tuesday and expressed serious concerns about his governance standards, oversight and conduct. Manifold said he was removed without warning and disputed the characterisation of his conduct.

The Journal reported that Manifold privately accused Henry of overstepping his authority and excluding other directors from communications, while Henry denied any mishandling of talks, arguing that Manifold was mischaracterising conversations.

Henry, who joined BP in September, was among those who left under Manifold as his board shrank.

There were also tensions last year between Manifold and then-CEO Murray Auchincloss, the Journal said.

BP declined to comment, while Manifold, Henry and Auchincloss could not be reached for comment.