Shell Share Discussion Threads

[imperial3] 10/1/2016 15:52

Next few decades,that is a very long time in anybody's book.Van Beurden could have gone by then,to leave somebody else to pick up the baton.

[sogoesit] 10/1/2016 15:31

Lol, fireplace! No, but you never know how others might interpret it!
Sure, "... higher... over the next few decades" is what he said.
Clearly, this is a long term strategic deal in his, and the BOD's, mind.
The thing with the long term is that it is almost impossible to analyse and is always compared with the present.
Is it a "bet the company" deal? Probably not.
But, historically, only 30% of M&As work so there is a lot of risk.
My only concern is the dividend and, if that keeps paying out, then I'm happy value destruction (which the UK taxpayer will pay for) or no value destruction!

It's not (always) about the oil price either. Maybe Shell see a different amount of oil, or gas, than BG or the analysts see? If they do, they won't be broadcasting that kind of perception for everyone to know!

[imperial3] 10/1/2016 15:24

Well said,young man!!!!!!!!!!!!!!!!!!

[montyhedge] 10/1/2016 15:18

I want the headlines, Shareholders vote NO.Shorting Hedgies lose billions, they bought BG and shorted Shell.Shell can comeback in12 months and offer 500p, BG holders would still take it.

[fireplace22] 10/1/2016 11:43

'Oil prices: Royal Dutch Shell oil boss Ben van Beurden thinks prices will double ahead of crucial BG Group deal shareholder vote'

I'd be happy with $66 bbl before the 27th too. Don't think that is what he meant though.

[waldron] 10/1/2016 11:31

CITYAM


Oil prices: Royal Dutch Shell oil boss Ben van Beurden thinks prices will double ahead of crucial BG Group deal shareholder vote

10 January 2016 11:16am

by Lynsey Barber
Oil And Gas Industry Forms Backbone Of Brunei Economy

A vote on the Shell-BG Group deal will take place amid an oil price rout (Source: Getty)

The boss of Royal Dutch Shell Ben van Beurden has said he is confident that oil prices will return to higher levels just days after they plummeted to an almost 12-year low as the giant gathers support for its billion pound takeover of BG Group.

“The oil prices we are seeing today are not sustainable and are going to settle at higher levels, and higher, in my mind, over the next few decades than the low $60s that we require to make this deal a good deal,” van Beurden told the Sunday Times.

Shareholders are due to vote on the deal on 27 January, but continued low oil prices have raised concerns that the deal may not work. Van Beurden said in November oil needed to return to $60 per barrel for it to make sense. Brent Crude fell to fresh lows of almost half that last week.

[waldron] 10/1/2016 11:19

iam betting any dip to usd20 will be very short lived

if and when it comes hopefully it will be an excellent buying opportunity

will keep some POWDER DRY

[waldron] 10/1/2016 11:15

BBC

Standard Life says it will vote against Shell BG tie-up

8 January 2016
From the section Business

Image copyright Getty Images

Standard Life Investment - a major investor in Royal Dutch Shell - has said it will oppose the oil company's proposed takeover of BG Group.

It said a weak outlook for oil prices plus risks for BG in Brazil could make the deal "value destructive for Shell shareholders."

Few investors or analysts have openly challenged the deal's strategic benefits for the firm.

Shell said it remained confident of winning the vote.

A Shell spokesman said: "We continue to believe we have the broad base of shareholder support we need for the deal to complete."

Shell has also won the support of Institutional Shareholder Services (ISS), an influential advisory firm, which recommended that Shell shareholders support the deal.
Deal opposition

The firm announced its intention to buy BG - an oil and gas exploration company - in April 2015 for £47bn.

But Standard Life said on Friday that the risk of further oil price falls and tax and operational risks connected to BG's Brazilian assets make the deal undesirable.

"We have concluded that the proposed terms of the acquisition of BG are value destructive for Shell shareholders," said David Cumming, head of equities at Standard Life Investments.

Standard Life is the 11th largest holder of Shell's B shares, with a 1.7% stake.

Shell B shares make up the share component in the cash-and-share deal that is expected to be completed on 15 February.

Standard Life is also the 16th biggest shareholder in BG, according to data from Bloomberg.

ISS, which advises around 5% of Shell's medium and small shareholders, said it supported the deal "given the compelling strategic rationale, and the significant positive economics to be realised within a relatively short time frame."

Shell will become the world's top liquefied natural gas trader after the deal.

In December Shell said it would cut 2,800 jobs as a result of restructuring the companies into one unit.

[imperial3] 10/1/2016 10:39

Not if investors think oil is going to sink to $20 a barrel.

[montyhedge] 10/1/2016 08:09

Deal must be 50/50 to go through.Standard Life has changed its mind and voting NO. 1.7% stake.Will the other big boys vote NO as well.This is not a done deal yet.

[careful] 09/1/2016 18:36

Shell's turnover last year was $421bn.
put it another way, $421,000m.
yet you refer to £106m as 'collosal amount of money'?
peanuts.

[atlantic57] 09/1/2016 17:42

Imperial it is money for old rope
but if you are in the establishment you are eligible for the gravy train .

[imperial3] 09/1/2016 17:05

Shell is being charged for this deal £106 million by its advisers.

HOW DO THEY JUSTIFY THIS COLOSSAL AMOUNT OF MONEY???!!!!!!

[atlantic57] 09/1/2016 15:53

I am not an expert but surely tullow cannot be considered in the same league as shell

[svenice7] 09/1/2016 14:50

Tullow is more like 0.001% chance of surviving, so much debt.

[imperial3] 09/1/2016 12:13

What about the oil shale producers in the USA? Can they still be in existence at these record low prices,if prolongued for many years?

[deanroberthunt] 09/1/2016 12:02

Do you guys see Tullow as the best of the minnows surviving without a massive cash call ? and thus providing a good return on Oil back to $60....just worried about the debt there.

[essentialinvestor] 09/1/2016 11:51

dean, the integrated majors cannot really be compared to the pure
oil exploration companies, the later are in a generally much weaker position,
although you do have corporate action possibilities.

Of the majors XOM is the sector's strongest, followed by Shell on my take.
Others might see it differently.

[montyhedge] 09/1/2016 11:49

ENQ 10% chance, Premier taken over just above current share price.

[deanroberthunt] 09/1/2016 11:40

Guys,

As an Oil CEO on Bloomberg said "this rout will be a battle of the last man standing, it's that severe"...

So, who do we think will be left standing, as a plc, %WISE....my view, but I would appreciate others sensible viepoint:

BP 100%
RDSB 100%
TLW 90%
OPHR 100%
SIA 100%
PMO 50%
GENL 90%
ENQ 50%
IAE 60%

[montyhedge] 09/1/2016 11:38

I'm convinced Shell rises 30% and BG falls 50% if vote is NO.I would have said certain deal goes through back in May.Now a big fund as changed its mind.Standard Life saying NO.Will the other big boys follow suit.The odds must be 50% 50% now.They can come back in 12 months and offer a much lower price.

[montyhedge] 09/1/2016 11:31

Lets hope bid off.Standard Life liked it in May, voting against now.They hold a 1.7% stake. Hedgies would lose millions if vote was NO.They bought BG and shorted Shell.

[essentialinvestor] 09/1/2016 11:07

Dave, scaling in very gradually is the way to go here, if you really
want to hold some Shell.

We may be in the 13.60's Monday.