Shelling out too much
Mr van Beurden – who ill-advisedly said the deal only really sings once the oil price recovers to $90 a barrel – would be unwise to count on it. He’s on the hook for a £750m break fee if he pulls out, a pay-out he’d be hard pressed to survive.
By Jeremy Warner: Sunday Telegraph 30 Aug 2015
It would be wrong to say City investors are on the point of insurrection over Royal Dutch Shell’s blockbuster takeover bid for BG Group. Most big investors in Shell will also be major shareholders in BG, so if the stock and cash offer goes through, what they lose on the Shell roundabout they will gain on the BG swings.
None the less, it is ever more obvious Shell’s Ben van Beurden is overpaying for BG, as reflected in the fact that BG shares languish at a whopping great discount to the see-through value of Shell’s offer – 981p per share against 1134p.
The TRUTH will set you FREE.
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